Replies to post #732 on First Place Financial Corp.(fka FPFCQ)

[jaxstraw]

Sorry , was at work and on I-Phone so could not access 8-k....disregard my first answer now that I see what you are talking about.

It says 'received the Company’s common securities issued by the Trust Preferred Issuers'...

The Trust Preferred Securities are not the common shares of FPFCQ. They are a form of debt that is higher in preference than common equity and must be paid first under the Absolute Priority Rule.

Talmer is assuming the obligation to the Trust Preferred Holders.

A trust-preferred security is a security possessing characteristics of both equity and debt issues. A company creates trust-preferred securities by creating a trust issuing debt to the new entity, while the trust issues the trust preferred securities. Trust-preferred securities are generally issued by bank holding companies.

The security is a hybrid security with characteristics of both subordinated debt and preferred stock in that it is generally very long term (30 years or more), allows early redemption by the issuer, makes periodic fixed or variable interest payments, and matures at face value. In addition, trust preferred securities issued by bank holding companies will usually allow the deferral of interest payments for up to 5 years.