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NORTH AMERICAN MORTGAGE COMPANY DECLARES INITIAL DIVIDEND; BOARD APPROVES SHAREHOLDER RIGHTS PLAN

 NORTH AMERICAN MORTGAGE COMPANY DECLARES INITIAL DIVIDEND;
 BOARD APPROVES SHAREHOLDER RIGHTS PLAN
 SANTA ROSA, Calif., Oct. 20 /PRNewswire/ -- North American Mortgage Company (NYSE: NAC), one of the nation's largest mortgage originators, today announced that an initial quarterly dividend of $.05 per share was declared by the board of directors at its meeting yesterday. The dividend will be paid on Nov. 16, 1992 to common stockholders of record on Oct. 30, 1992.
 In a separate action, the board approved a shareholder rights plan designed to protect the shareholders of the company by preventing abusive or unfair takeover practices and by maximizing shareholder value in any takeover. The shareholder rights plan is not intended to prevent a takeover of the company that is beneficial to its shareholders. The plan was not adopted in response to any existing effort to acquire control of the company.
 The terms of the plan provide for a dividend distribution of one right for each share to holders of record of the company's common shares at the close of business on Oct. 30, 1992. The rights may become exercisable in the event a person or group accumulates 10 percent or more of the company's common shares. The rights will expire Dec. 31, 2002. Each right will entitle the holder to buy one one-hundredth of a share of a new series of Series A cumulative preferred stock of the company at a price of $70.00. In addition, upon the occurrence of a merger or other business combination, or the acquisition by a person or group of 15 percent or more of the common shares, holders of the rights, other than the "acquiring person", will be entitled to purchase either common shares of the company or common shares of the "acquiring person" at half their market value. In addition, any time after a person or group acquires 15 percent or more (but less than 50 percent) of the company's outstanding common shares, the board may, at its option, exchange part or all of the rights (other than rights held by the "acquiring person") for North American Mortgage Company common shares on a one-for-one basis.
 The company will be entitled to redeem the rights for $0.01 per right at any time until the tenth day following a public announcement of the acquisition of a 15 percent position in its common shares.
 Details of the Shareholder Rights Plan will be outlined in a letter to be mailed to shareholders following the Oct. 30, 1992 record date.
 North American Mortgage Company is primarily engaged in the mortgage banking business and, accordingly, originates, acquires, sells, and services mortgage loans which are principally first-lien mortgage loans secured by single family residences. It is a major originator in the California, Texas and mid-Atlantic markets. Headquartered in Santa Rosa, the company operates 43 origination offices located in California, Texas, Maryland, Virginia, Hawaii, Colorado, New Mexico, and Utah.
 -0- 10/20/92
 /CONTACT: Robert J. Gallagher, executive vice president of North


American Mortgage Company, 707-523-5055; or Andrew R. Baer or Tom Davies of Kekst and Company, 212-593-2655, for North American Mortgage Company/
 (NAC) CO: North American Mortgage Company ST: California IN: FIN SU: DIV


AH -- NY089 -- 2358 10/20/92 13:40 EDT
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Publication:PR Newswire
Date:Oct 20, 1992
Words:537
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