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Office of the Conservator of QUADS Trust Company
ORDER RESIGNING AS CUSTODIAN OF CERTAIN ACCOUNTS AND
PLANS AND APPOINTING A SUCCESSOR CUSTODIAN OF
THOSE ACCOUNTS AND PLANS
WHEREAS, effective at 5:00 p.m. on January 31, 2007, the Superintendent
of the Maine Bureau of Financial Institutions appointed Deputy Superintendent
Donald W. Groves as Conservator of QUADS Trust Company ("QTC"),
a Maine non-depository trust company having its principal place of business
at 12 West Church Street, Frederick, Maryland (a/k/a the Firehouse Financial
Center); and
WHEREAS, the Conservator has an obligation to conduct the business
of QTC for the benefit of depositors, sponsors and beneficiaries of
accounts or plans for which QTC is custodian; and
WHEREAS, QTC is custodian for approximately 400 Individual Retirement
Accounts with non-traditional assets ('NTIRA's"); and
WHEREAS, the Conservator has determined that it is in the best interest
of the accountholders of NTIRA's for which QTC is custodian to transfer
their account to a custodian with greater financial and managerial resources
or to receive a distribution of their account; and
WHEREAS, the Conservator issued a letter to all NTIRA accountholders
on April 4, 2007 requesting that the accountholders seek a successor
custodian to QTC and that accountholders provide QTC with transfer instructions
by May 11, 2007 or otherwise request or receive a distribution of the
accounts; and
WHEREAS, the Conservator issued a follow-up letter on April 23, 2007
requesting that accountholders name a successor custodian and provide
transfer instructions to QTC or request or accept a distribution of
their account; and
WHEREAS, approximately 80 NTIRA accountholders did not respond to the
Conservator's letters of April 4, 2007 and April 23, 2007 to provide
instructions relative to the transfer or distribution of their account;
and
WHEREAS, Millennium Trust Company of Oak Brook, Illinois ("MTC))
has demonstrated that it has the managerial and financial resources
to accept appointment as successor custodian of NTIRA's in QTC's custody;
and
WHREAS, MTC has signed an agreement, effective June 15, 2007, with
QTC accepting appointment as successor custodian for approximately 80
of QTC's NTIRA accountholders that did not provide instructions relative
to the transfer or distribution of their account; and
WHEREAS, pursuant to 9-B M.R.S.A. § 363-A(1)(B), the Conservator
has all rights, powers, privileges and authority possessed by the officers,
governing body, corporators, members and investors of the financial
institutions; and
WHEREAS, pursuant to 9-b M.R.S.A. § 363-A(1)(B)(2), the conservator
has authority to execute, acknowledge and deliver all deeds, assignments,
releases and other instruments necessary and proper to effectuate any
sale of real or personal property or any compromise approved by the
Superintendent; and
WHEREAS, pursuant to 9-b M.R.S.A. § 363-A(1)(B)(2), the Maine
superintendent of Financial Institutions has approved the aforementioned
agreement between QTC and MTC;
THEREFORE, pursuant to the aforementioned agreement between QTC and
MTC and effective 5:00 p.m. on June 22, 2007, QUADS Trust Company simultaneously"
1. Resigns as custodian of the NTIRA's identified in the agreement
between QTC and MTC; and
2. Appoints Millennium Trust Company as its successor custodian of
the NTIRA's identified in the agreement between QTC and MTC.
By Order of the Conservator of QUADS Trust Company this ____ day of
June 2007 at Gardiner, Maine.
_____________________________
Donald W. Groves
Deputy Superintendent
Maine Bureau of Financial Institutions
Conservator of QUADS Trust Company
Appellate Rights
Pursuant to 9-B M.R.S.A. §363-A(10), any person aggrieved by
the foregoing Order may bring an action challenging it in the Superior
court of Kennebec County at Augusta, Maine within ten (10) business
days after receiving notice of the order by any of those means prescribed
by 9-B M.R.S.A. §363-A(10)(B).
