Recapitalization of NCBJ through acquisition of ordinary and preference shares

Provision of liquidity support through purchase of non-performing loans

FINSAC owns 40% of the outstanding ordinary shares of NCB plus 43.8% of NCB Group (purchased from Jamaica Mutual) for a total holding of 68% of NCB

The Preference Shares require 12.5% dividend payment in any year in which the dividends are paid on the bank's ordinary share capital

FINSAC's contribution in respect of Preference Shares will constitute Tier 1 capital and will be cumulative and redeemable

New senior debt may not be contracted without the prior consent of the preference share holder

Net profits after tax earned by NCB shall be retained in its banking reserve fund and / or retained earnings reserve such that the bank can achieve and maintain a minimum primary capital base to risk weighted assets target ratio of 12%

Twenty five percent of any annual net profits after tax, in excess of the amount required to achieve and maintain the above target capital base thresholds be used to redeem FINSAC preference shares outstanding in NCBJ after its financial year ending 30 September 2000

After NCB Groups financial year ending 30 September 2002, the present dividend rate of 12.5% per annum on the preference shares to be issued by NCBJ and National Commercial Trust and Merchant Bank will be adjusted to match the variable rate on the average 6 month preceding government treasury bill discount rates.

FINSAC Appointed Directors: Jeffrey Pyne, Desmond Blades, Noel Hylton, Kathleen Moss, Robert Gregory, Patrick Hylton