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FDIC Enforcement Decisions and Orders

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{{4-1-90 p.C-226}}
   [10,043A] In the Matter of Benny L. Rusk, Docket No. FDIC-89-72e (1-26-90).

Officer, director, and principal shareholder removed from office and prohibited from further participation in Bank's affairs and from participation in any capacity in the affairs of, or the exercise of voting rights in, any insured institution.

   [.1] Prohibition, Removal, or Suspension—Removal—As Officer and Director
   [.2] Prohibition, Removal, or Suspension—Prohibition—Participation in Bank's Affairs
   [.3] Prohibition, Removal, or Suspension—Prohibition—Participation in Affairs of Any Bank
   [.4] Prohibition, Removal, or Suspension—Prohibition—Exercise of Voting Rights

In the Matter of
BENNY L. RUSK, individually and as
president, a director, principal shareholder,
and a person participating in the conduct
of affairs of
FIRST STATE BANK
LIBERTY, TEXAS
(Insured State Nonmember Bank)
ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION

   Benny L. Rusk ("Respondent"), having received a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") on April 27, 1989, detailing violations of law, and/or unsafe or unsound practices, and/or breaches of fiduciary duties alleged to have been committed by Respondent, individually and in his capacity as a director and/or officer and/or person participating in the conduct of the affairs of First State Bank, Liberty, Texas ("Bank"), which, in the opinion of the FDIC, resulted in substantial financial loss or other damage to the Bank and/or resulted in financial gain to Respondent, and which, in the opinion of the FDIC, demonstrated a willful or continuing disregard by Respondent for the safety and soundness of the Bank and further evidenced Respondent's unfitness to participate in the conduct of the affairs of the Bank, or any other bank insured by the FDIC, and having been advised of his right to a hearing on the alleged charges pursuant to section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §1818(e), and Part 308 of the Rules of Practice and Procedures, 12 C.F.R. Part 308, and having waived those rights, entered into a STIPULATION and CONSENT TO THE ISSUANCE OF AN ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, dated July 27, 1989, whereby solely for the purpose of this proceeding and without admitting or denying any of the alleged violations of law and/or unsafe or unsound practices, and/or breaches of fiduciary du- {{1-31-93 p.C-226.1}}ties, Respondent consented to the issuance of an ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
   The FDIC considered the matter and determined that it had reason to believe that Respondent committed violations of law, and/or engaged in unsafe or unsound practices and/or breaches of fiduciary duties in his capacity as a director and/or officer and/or person participating in the conduct of the affairs of the Bank, which have resulted in substantial financial loss or other damage to the Bank, and/or resulted in financial gain to Respondent, and which demonstrated a willful or continuing disregard by Respondent for the safety and soundness of the Bank and further evidenced Respondent's unfitness to participate in the conduct of the affairs of the Bank, or any other bank insured by the FDIC. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION

   [.1] 1. Benny L. Rusk is hereby removed as a director, officer and employee of First State Bank, Liberty, Texas.

   [.2] 2. Benny L. Rusk is hereby prohibited from participation in any manner in the conduct of the business and affairs of First State Bank, Liberty, Texas without the prior written approval of the FDIC.

   [.3] 3. Benny L. Rusk is hereby prohibited from serving or acting as a director, officer, or employee of any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
   4. Benny L. Rusk is hereby prohibited from participating in any manner in the conduct of the affairs of any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).

   [.4] 5. Benny L. Rusk is hereby prohibited from voting for a director of any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).

   This ORDER shall become effective 10 days after the date of its issuance.
   The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provision of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC pursuant to an agreement of the parties.
   Pursuant to delegated authority.
   Dated at Washington, D.C. this 26th day of January, 1990.
(Next page is C-226.2.)

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