U.S. Century Bank, the nation's largest undercapitalized bank, is close to a deal that would give a controlling stake to local investors.

The Doral, Fla., bank has received a letter of intent from a group of investors led by James Tate of Tate Capital, a Miami real estate fund, that want to inject $50 million in cash and buy up to $90 million in bad loans, a U.S. Century spokeswoman said. The sale is under negotiation and the bank intends to sign a letter of intent next week, she said.

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