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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM T-1
STATEMENT OF ELIGIBILITY AND QUALIFICATION UNDER THE TRUST INDENTURE
ACT OF 1939 OF A CORPORATION DESIGNATED TO
ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A
TRUSTEE PURSUANT TO SECTION 305(b)(2)_________
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U.S. TRUST COMPANY OF TEXAS, N.A.
(Exact name of trustee as specified in its charter)
75-2353745
(State of incorporation (I.R.S. employer
if not a national bank) identification No.)
2001 Ross Avenue, Suite 2700 75201-2936
Dallas, Texas (Zip Code)
(Address of trustee's
principal executive offices)
Compliance Officer
U.S. Trust Company of Texas, N.A.
2001 Ross Avenue, Suite 2700
Dallas, Texas 75201-2936
(214) 754-1200
(Name, address and telephone number of agent for service)
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OpTel, Inc.
(Exact name of obligor as specified in its charter)
Delaware 95-4498704
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
1111 W. Mockingbird Lane
Dallas, Texas 75247
(Address of principal executive offices) (Zip Code)
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13% Senior Notes due 2005
(Title of the indenture securities)
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GENERAL
1. General Information.
Furnish the following information as to the Trustee:
(a) Name and address of each examining or supervising authority to which it
is subject.
Federal Reserve Bank of Dallas (11th District), Dallas, Texas
(Board of Governors of the Federal Reserve System)
Federal Deposit Insurance Corporation, Dallas, Texas
The Office of the Comptroller of the Currency, Dallas, Texas
(b) Whether it is authorized to exercise corporate trust powers.
The Trustee is authorized to exercise corporate trust powers.
2. Affiliations with Obligor and Underwriters.
If the obligor or any underwriter for the obligor is an affiliate of the
Trustee, describe each such affiliation.
None.
3. Voting Securities of the Trustee.
Furnish the following information as to each class of voting securities of
the Trustee:
As of December 31, 1997
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Col A. Col B.
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Title of Class Amount Outstanding
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Capital Stock - par value $100 per share 5,000 shares
4. Trusteeships under Other Indentures.
Not Applicable
5. Interlocking Directorates and Similar Relationships with the Obligor or
Underwriters.
Not Applicable
6. Voting Securities of the Trustee Owned by the Obligor or its Officials.
Not Applicable
7. Voting Securities of the Trustee Owned by Underwriters or their Officials.
Not Applicable
8. Securities of the Obligor Owned or Held by the Trustee.
Not Applicable
9. Securities of Underwriters Owned or Held by the Trustee.
Not Applicable
10. Ownership or Holdings by the Trustee of Voting Securities of Certain
Affiliates or Security Holders of the Obligor.
Not Applicable
11. Ownership or Holdings by the Trustee of any Securities of a Person Owning 50
Percent or More of the Voting Securities of the Obligor.
Not Applicable
12. Indebtedness of the Obligor to the Trustee.
Not Applicable
13. Defaults by the Obligor.
Not Applicable
14. Affiliations with the Underwriters.
Not Applicable
15. Foreign Trustee.
Not Applicable
16. List of Exhibits.
T-1.1 - A copy of the Articles of Association of U.S. Trust Company of
Texas, N.A.; incorporated herein by reference to Exhibit T-1.1 filed
with Form T-1 Statement, Registration No. 22-21897.
16. (con't.)
T-1.2 - A copy of the certificate of authority of the Trustee to commence
business; incorporated herein by reference to Exhibit T-1.2 filed
with Form T-1 Statement, Registration No. 22-21897.
T-1.3 - A copy of the authorization of the Trustee to exercise corporate
trust powers; incorporated herein by reference to Exhibit T-1.3
filed with Form T-1 Statement, Registration No. 22-21897.
T-1.4 - A copy of the By-laws of the U.S. Trust Company of Texas, N.A., as
amended to date; incorporated herein by reference to Exhibit T-1.4
filed with Form T-1 Statement, Registration No. 22-21897.
T-1.6 - The consent of the Trustee required by Section 321(b) of the Trust
Indenture Act of 1939.
T-1.7 - A copy of the latest report of condition of the Trustee published
pursuant to law or the requirements of its supervising or examining
authority.
NOTE
As of December 31, 1996 the Trustee had 5,000 shares of Capital Stock
outstanding, all of which are owned by U.S. T.L.P.O. Corp. As of December 31,
1996 U.S. T.L.P.O. Corp. had 35 shares of Capital Stock outstanding, all of
which are owned by U.S. Trust Corporation. U.S. Trust Corporation had
outstanding 9,752,781 shares of $5 par value Common Stock as of December 31,
1996.
The term "Trustee" in Items 2, 5, 6, 7, 8, 9, 10 and 11 refers to each of U.S
Trust Company of Texas, N.A., U.S. T.L.P.O. Corp. and U.S. Trust Corporation.
Inasmuch as this Form T-1 is filed prior to the ascertainment by the Trustee of
all the facts on which to base responsive answers to Items 2, 5, 6, 7, 9, 10 and
11, the answers to said Items are based upon incomplete information. Items 2, 5,
6, 7, 9, 10 and 11 may, however, be considered correct unless amended by an
amendment to this Form T-1.
In answering any items in this Statement of Eligibility and Qualification which
relates to matters peculiarly within the knowledge of the obligors or their
directors or officers, or an underwriter for the obligors, the Trustee has
relied upon information furnished to it by the obligors and will rely on
information to be furnished by the obligors or such underwriter, and the Trustee
disclaims responsibility for the accuracy or completeness of such information.
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SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939 the Trustee, U.S
Trust Company of Texas, N.A., a national banking association organized under the
laws of the United States of America, has duly caused this statement of
eligibility and qualification to be signed on its behalf by the undersigned,
thereunto duly authorized, all in the City of Dallas, and State of Texas on the
20th day of March, 1997.
U.S. Trust Company of Texas, N.A.,
Trustee
By: /s/ John C. Stohlmann
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John C. Stohlmann
Vice President
Exhibit T-1.6
CONSENT OF TRUSTEE
Pursuant to the requirements of Section 321(b) of the Trust Indenture Act of
1939 as amended in connection with the proposed issue of OpTel, Inc. 13 % Senior
Notes due 2005, we hereby consent that reports of examination by Federal, State,
Territorial or District authorities may be furnished by such authorities to the
Securities and Exchange Commission upon request therefore.
U.S. Trust Company of Texas, N.A.,
Trustee
By: /s/ John C. Stohlmann
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John C. Stohlmann
Vice President
Board of Governors of the Federal Reserve System
OMB Number: 7100-0036
Federal Deposit Insurance Corporation
OMB Number: 3064-0052
Office of the Comptroller of the Currency
Federal Financial Institutions Examination Council OMB Number: 1557-0081
Expires March 31,1999
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Please Refer to Page i, (1)
Table of Contents, for
(LOGO) the required disclosure
of estimated burden
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CONSOLIDATED REPORTS OF CONDITION AND INCOME FOR A
BANK WITH DOMESTIC OFFICES ONLY AND TOTAL ASSETS OF (961231)
LESS THAN $100 MILLION - - FFIEC 034 ----------------
REPORT AT THE CLOSE OF BUSINESS DECEMBER (RCRI 9999)
31, 1996
This report is required by law: 12 U.S.C. Section 324 (State This report form is to be filed by banks with domestic
member banks); 12 U.S. c. Section 1817 (State nonmember offices only. Banks with branches and consolidated
banks); and 12 U.S. C. Section 161 (National banks). subsidiaries in U.S. territories and possessions, Edge or
Agreement subsidiaries, foreign branches, consolidated
foreign subsidiaries, or International Banking Facilities
must file FFIEC 031.
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NOTE: The Reports of Condition and Income must be signed by an The Reports of Condition and Income are to be prepared in
authorized officer and the Report of Condition must be accordance with Federal regulatory authority instructions.
attested to by not less than two directors (trustees) NOTE: these instructions may in some cases differ from generally
for State from nonmember banks and three directors accepted accounting principles.
for State member and National Banks.
We, the undersigned directors (trustees), attest to the
I, Alfred B. Childs, SVP & Cashier correctness of this Report of Condition (including the
------------------------------- supporting schedules) and declare that it has been examined
Name and Title of Officer Authorized to Sign Report by us and to the best of our knowledge and belief has been
prepared in conformance with the instructions issued by the
of the named bank do hereby declare that these appropriate Federal regulatory authority and is true and
Reports of Condition and Income (including the correct.
supporting schedules) have been prepared in
conformance with the instructions issued by the /s/ Stuart M. Pearman
appropriate Federal regulatory authority and are -------------------------
true to the best of my knowledge and belief. Director (Trustee)
/s/ Alfred B. Childs /s/ J. T. Moore Jr.
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Signature of Officer Authorized to Sign Report Director (Trustee)
January 15, 1997 /s/ Peter J. Denker
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Date of Signature Director (Trustee)
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FOR BANKS SUBMITTING HARD COPY REPORT FORMS:
STATE MEMBER BANKS: Return the original and one copy NATIONAL BANKS: Return the original only in the special
to the appropriate Federal Reserve District Bank. return address envelope provided. If express mail is used
in lieu of the special return address envelope, return the
original only to the FDIC, c/o Quality Data Systems, 2127
STATE NONMEMBER BANKS: Return the original only in Espey Court, Suite 204, Crofton, MD 21114.
the special return address envelope provided. If
express mail is used in lieu of the special
return address envelope, return the original only to
the FDIC, c/o Quality Data Systems, 2127 Espey
Court, Suite 204, Crofton, MD 21114.
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FDIC Certificate Number ____________ 12-31-96
(RCRI 9050) Banks should affix the address label in this space.
U. S. Trust Company of Texas, National Association
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Legal Title of Bank (TEXT 9010)
2001 Ross Avenue, Suite 2700
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City (TEXT 9130)
Dallas, TX 75201
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State Abbrev. (TEXT 9200) ZIP Code (TEXT 9220)
Board of Governors of the Federal Reserve System, Federal Deposit Insurance corporation, Office of the Comptroller of the Currency
U.S. Trust Company of Texas, N.A. Call Date: 12/31/96 State #: 6797 FFIEC 034
2100 Ross Avenue, Suite 2700 Vendor ID: D Cert #: 33217 Page RC-2
Dallas, TX 75201 Transit #: 11101765
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9
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CONSOLIDATED REPORT OF CONDITION FOR INSURED COMMERCIAL
AND STATE-CHARTERED SAVINGS BANKS FOR DECEMBER 31, 1996
All schedules are to be reported in thousands of dollars. Unless otherwise indicated, report the amount outstanding as of the last
business day of the quarter.
Schedule RC - Balance Sheet
C100
Dollar Amounts in Thousands
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ASSETS
1. Cash and balances due from depository institutions: RCON
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a. Noninterest-bearing balances and surrency and coin(1,2)___________ ______ _______ 0081 325 1.a
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b. Interest bearing balances(3)__________________________________________ ______ _______ 0071 173 1.b
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2. Securities:
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a. Held-to-maturity securities (from Schedule RC-B, column A)___________ ______ _______ 1754 0 2.a
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b. Available-for-sale securities (from Schedule RC-B, column D)________ ______ _______ 1773 101,385 2.b
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3. Federal funds sold and securities purchased under agreements to resell:
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a. Federal funds sold (4)________________________________________________ ______ _______ 0276 0 3.a
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b. Securities purchased under agreements to resell(5)____________________ ______ _______ 0277 0 3.b
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4. Loans and lease financing receivables: RCON
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a. Loans and leases, net of unearned income (from Schedule RC-C)_________ 2122 42,103 4.a
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b. LESS: Allowance for loan and lease losses_____________________________ 3123 481 4.b
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c. LESS: Allocated transfer risk reserve_________________________________ 3128 0 4.c
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d. Loans and leases, net of unearned income, allowance, and reserve RCON
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(item 4.a minus 4.b and 4.c)________________________________________ ______ _______ 2125 41,622 4.d
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5. Trading assets___________________________________________________________ ______ _______ 3545 0 5.
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6. Premises and fixed assets (including capitalized leases)_________________ ______ _______ 2145 753 6.
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7. Other real estate owned (from Schedule RC-M)_____________________________ ______ _______ 2150 0 7.
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8. Investments in unconsolidated subsidiaries and associated companies
(from Schedule RC-M)_____________________________________________________ ______ _______ 2130 0 8.
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9. Customers' liability to this bank on acceptances outstanding_____________ ______ _______ 2155 0 9.
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10. Intangible assets (from Schedule RC-M)___________________________________ ______ _______ 2143 0 10.
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11. Other assets (from Sechedule RC-F)_______________________________________ ______ _______ 2160 1,511 11.
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12. a. Total assets (sum of items 1 through 11)______________________________ ______ _______ 2170 145,769 12.a
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b. Losses deferred pursuant to U.S.C. 1823(j)____________________________ ______ _______ 0306 0 12.b
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c. Total assets and losses deferred pursuant to 12 U.S.C. 1823(j)
(sum of items 12.a and 12.b)_______________________________________ ______ _______ 0307 145,769 12.c
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(1) Includes cash items inprocess of collection and unposed debits.
(2) The amount reported in this item must be greater than or equal to the sum
of Schedule RC-M, items 3.a and 3.b.
(3) Includes time certificates of deposit not held for trading.
(4) Report 'term federal funds sold' in Schedule RC, item 4.a, 'Loans and
leases, net of unearned income,' and in Schedule RC-C, part 1.
(5) Report securities purchased under agreements to resell that involve the
receipt of immediately available funds and mature in one business day or
roll over under a continuing contract in Schedule RC, item 3.a, 'Federal
funds sold.'
U.S. Trust Company of Texas, N.A. Call Date: 12/31/96 State #: 6797 FFIEC 034
2100 Ross Avenue, Suite 2700 Vendor ID: D Cert #: 33217 Page RC-2
Dallas, TX 75201 Transit #: 11101765
10
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Schedule RC - Continued Dollar Amounts in Thousands
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LIABILITIES
13. Deposits:
a. In domestic offices (sum of totals of RCON
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columns A and C from Schedule RC-E)_________________________________ RCON 2200 118,129 13.a
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(1) Noninterest-bearing (1)________________________________________ 6631 12,669 13.a.1
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(2) Interest-bearing ______________________________________________ 6636 105,440
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b. In foreign offices, Edge and Agreement subsidiaries, and IBFs
(1) Noninterest-bearing____________________________________________
(2) Interest-bearing_______________________________________________
14. Federal funds purchased and securities sold under agreements to RCON
repurchase: ----
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a. Federal funds purchased (2)___________________________________________ ______ _______ 0278 0 14.a
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b. Securities sold under agreements to repurchase (3)____________________ ______ _______ 0279 0 14.b
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15. a. Demand notes issued to the U.S. Treasury______________________________ ______ _______ 2840 0 15.a
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b. Trading liabilities___________________________________________________ ______ _______ 3548 0 15.b
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16. Other borrowed money:
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a. With a remaining maturity of one year or less________________________ ______ _______ 2332 0 16.a
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b. With a remaining maturity of more than one year______________________ ______ _______ 2333 6,000 16.b
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17. Mortgage indebtedness and obligations under capitalized leases___________ ______ _______ 2910 0 17.
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18. Bank's liability on acceptances executed and outstanding_________________ ______ _______ 29200 0 18.
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19. Subordinated notes and debentures________________________________________ ______ _______ 3200 0 19.
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20. Other liabilities (from Schedule RC-G)___________________________________ ______ _______ 2930 1,575 20.
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21. Total liabilities (sum of items 13 through 20)___________________________ ______ _______ 2948 125,704 21.
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22. Limited-life preferred stock and related surplus_________________________ ______ _______ 3282 0 22.
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EQUITY CAPITAL
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23. Perpetual preferred stock and related surplus____________________________ ______ ______ 3838 7,000 23.
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24. Common stock_____________________________________________________________ ______ ______ 3230 500 24.
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25. Surplus (exclude all surplus related to preferred stock)_________________ ______ ______ 2829 8,384 25.
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26. a. Undivided profits and capital reserves________________________________ ______ ______ 3632 4,045 26.a
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b. Net unrealized holding gains (losses) on available-for-sale securities ______ ______ 8434 136 26.b
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27. Cumulative foreign currency translation adjustments______________________ ______ ______ 3210
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28. a. Total equity capital (sum of items 23 through 27)_____________________ ______ ______ 3210 20,065 28.a
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b. Losses deferred pursuant to 12 U.S.C. 1823(j)_________________________ ______ ______ 0306 0 28.b
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c. Total equity capital and losses deferred pursuant to 12 U.S.C. 1823(j)
(sum of items 28.a and 28.b)_________________________________________ ______ ______
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29. Total liabilities, limited-life preferred stock, equity capital, and
losses deferred pursuant to 12 U.S.C. 1823(j) (sum of items 21, 22, and
28.c)____________________________________________________________________ ______ ______ 2257 145,769 29.
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Memorandum
To be reported only with the March Report of Condition.
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1. Indicate in the box at the right the number of the statement below that best describes the RCON
most comprehensive level of auditing work performed for the bank by independent external ----- N/A M.1
auditors as of any date during 1995__________________________________________________________ 6724
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1 = Independent audit of the bank conducted in accordance 4 = Directors' examination of the bank performed by other
with generally accepted auditing standards by certified external auditors (may be required by state chartering
public accounting firm which submits a report on the bank authority)
2 = Independent audit of the bank's parent holding company 5 = Review of the bank's financial statements by external
conducted in accordance with generally accepted auditing auditors
standards by a certified public accounting firm which 6 = Compilation of the bank's financial statements by
submits a report on the consolidated holding company (but external auditors
not on the bank separately) 7 = Other audit procedures (excluding tax preparation
3 = Directors' examination of the bank conducted in accordance work)
with generally accepted auditing standards by a certified 8 = No external audit work
public accounting firm (may be required by state chartering
authority)
(1) Includes total demand deposits and noninterest-bearing time and savings
deposits.
(2) Report "term federal funds purchased" in Schedule RC, item 16, 'Other
borrowed money.'
(3) Report securities sold under agreements to repurchase that involve the
receipt of immediately available funds and mature in one business day or
roll over under a continuing contract in Schedule RC, item 14.a, 'Federal
funds purchased.'