First City Bancorporation of Texas has rid...

First City Bancorporation of Texas has rid itself of another batch of bad loans, selling them to a collecting bank unit formed as part of its federally assisted $1.6-billion reorganization in April. For the second time since the restructuring, First City invoked an option and sold bad loans to a collecting bank established to liquidate more than $1.8 billion in overdue loans and foreclosed assets, spokesmen said. First City sold $65 million of classified loans this week after selling $84 million worth of loans in June to Collecting Bank NA, otherwise known as a “junk bank.” In return, First City received $61.75 million of Collecting Bank senior notes.