Vernon Savings collapsed last month, leaving a staggering negative net worth of $350 million.

A bailout of Vernon Savings and Loan will send a signal to other troubled Texas savings units, analysts say.

Vernon Savings, a state-chartered stock association, had nine offices in Texas and one in Oklahoma.

A 30-year sentence for fraud at a failed savings institution was given to the former chairman of Vernon Savings and Loan.

The largest infusion into a single savings institution was $1.3 billion for Vernon Savings and Loan in Texas last year.

Vernon Savings' assets increased to $1.3 billion, from $121 million, in the same period.

His conviction ends the 3.5-year investigation into Vernon Savings, one of the first by the federal bank-fraud taskforce.

He is also a part owner of a small real estate company in Austin with a former chairman of the Vernon Savings and Loan Association.

Federal officials have estimated that the failure of Vernon Savings, which was closed in November 1987, cost taxpayers $1.3 billion.

The yacht and airplane were owned or controlled by Vernon Savings and Loan of Dallas.