Western Financial Unit Seeks OK for Bond Issue

A subsidiary of Western Financial Savings Bank in Orange is seeking federal approval for a $100-million bond issue backed by automobile loans.

The proposed issuance would be the third time that Western Financial has used its huge portfolio of auto loans as collateral in issuing securities. Similar bond packages were issued last December for $192 million and in December, 1985, for $110 million.

Unlike both prior sales, however, proceeds of the proposed offering will be used to fund further auto lending. The prior sales were intended to help finance a restructuring of a loan portfolio to meet federal guidelines.