MNC secures line of credit

October 01, 1990

MNC Financial Inc. has formally locked into place a previously announced, $750 million line of credit that the Baltimore-based company is expected to use to meet short-term funding requirements.

The 18-month line of credit, part of an infusion of capital designed to help the troubled bank holding company's equity position, is being funded by a syndicate of nine banks led by Morgan Guaranty Trust Co., of New York.

MNC spokesman Daniel Finney described the new credit as a "back up" for the company's commercial paper. It replaces a $570 million line of credit that will be allowed to expire. Unlike the previous line of credit, the new one cannot be canceled, he said.

"It is a prudent, conservative, precautionary decision to secure a back-up line of credit," Finney said. He said the credit is secured by various bank assets.

MNC, the largest bank holding company in Maryland, is the parent of Maryland National Bank, which recently absorbed Equitable Bancorp, and American Security Bank in Washington.

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