
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 13, 1991                   TAG: 9102130102
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: 
DATELINE: ROCKY MOUNT                                LENGTH: Short

ROCKY MOUNT LEAVES FUNDS IN COREAST

Town Council has decided to leave $2.4 million in CorEast Savings Bank despite the takeover of the thrift by federal regulators earlier this month.

Town Treasurer Nancy Lynch said Tuesday that state officials have assured the town that CorEast has set aside securities to cover all its municipal deposits. Lynch said early withdrawal of the town's five certificates of deposit could cost the town more than $100,000 in penalties and would mean the town would earn a lower rate of return because of falling interest rates.

Town Council accepted Lynch's recommendation at its regular monthly meeting on Monday. The balance of the town's $8 million budget surplus is held at other lending institutions, she said. - Staff report

by CNB