Each depositor insured to at least $250,000 per insured bank



Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders




FDIC Enforcement Decisions and Orders

ED&O Home | Search Form | Text Search | ED&O Help


{{8-31-91 p.C-761}}
   [10,166] In the Matter of Boston Trade Bank, Boston, Massachusetts, Docket FDIC-91-17b (1-16-91).

   Bank to cease and desist from operating with an excessive volume of adversely classified assets; engaging in hazardous lending practices; operating with inadequate equity capital; engaging in violations of law and regulations; operating with management whose policies and practices are detrimental to the Bank; operating with deficient loan documentation; failing to provide adequate supervision over the Bank's affairs; and operating with inadequate allowance for loan and lease losses. (This order was terminated by order of the FDIC, dated 6-12-91; see ¶15,292.)

   [.1] Management—Qualifications—Review
   [.2] Management—Management Plan—Minimum Requirements—Review
   [.3] Board of Directors—Committee to Review Compliance—Cease and Desist Order
   [.4] Board of Directors—Election—Independent Directors
   [.5] Board of Directors—Meetings—Frequency—Written Record Required
   [.6] Assets—Adversely Classified—Reduce/Eliminate
   [.7] Capital Plan—Written Plan—Minimum Requirements—Review
   [.8] Capital—Increase/Maintain—Methods
   [.9] Allowance for Loan and Lease Losses—Maintain—Report
   [.10] Loans—Risk Position—Reduce—Written Plan Required
   [.11] Loans—Extensions of Credit—Existing Borrowers—Curtail
   [.12] Loans—Overdue—Accrual of Interest
   [.13] Loan Policy—Revision Required—Review
   [.14] Profit Plan—Minimum Requirements—Review
   [.15] Funds Management—Written Policy—Minimum Requirements—Review
   [.16] Dividends—Restricted
   [.17] Shareholders—Disclosure—Cease and Desist Order
   [.18] Technical Exceptions—Correct
   [.19] Loans—Special Mention
   [.20] Violations of Law—Eliminate/Correct
   [.21] Compliance—Progress Reports—Frequency
   [.22] Affiliates—Restrictions on Transactions

In the Matter of

BOSTON TRADE BANK
BOSTON, MASSACHUSETTS
(Insured State Nonmember Bank)

ORDER TO CEASE AND DESIST

   Boston Trade Bank, Boston, Massachusetts ("Bank"), having been advised of its right to a Notice of Charges and of Hearing
{{8-31-91 p.C-762}}detailing the unsafe or unsound banking practices and violations of law and/or regulations alleged to have been committed by the Bank and of its right to a hearing on such alleged charges under section 8(b) (1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b) (1), and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT") with counsel for the Federal Deposit Insurance Corporation ("FDIC"), dated January 16, 1991, whereby solely for the purpose of settling this proceeding and without admitting or denying any allegations or implications of fact or the existence of any unsafe or unsound banking practices or violations of law and/or regulations or any other ground for issuance of an order to cease and desist under section 8(b) of the Act, 12 U.S.C. § 1818(b), the Bank consented to the issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC.
   The FDIC considered the matter and determined that it had reason to believe that the Bank had engaged in unsafe or unsound banking practices and had violated laws and/ or regulations. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER TO CEASE AND DESIST

   IT IS HEREBY ORDERED, that the Bank and its institution-affiliated parties, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), cease and desist from the following unsafe or unsound banking practices and violations of law and/or regulations:

       (a) operating with an excessive volume of adversely classified assets;
       (b) engaging in hazardous lending practices, including maintaining an excessive volume of adversely classified loans;
       (c) operating with inadequate equity capital for the kind and quality of assets held;
       (d) engaging in violations of applicable laws and regulations;
       (e) operating with management whose policies and practices are detrimental to the Bank;
       (f) operating with deficient or inadequate loan documentation, including but not limited to current financial statements, insurance coverage, title searches or legal opinions, and cash flow and/or operating information;
       (g) failing to provide adequate supervision and direction over the affairs of the Bank to prevent unsafe or unsound practices and violations of law and/or regulations; and
       (h) operating with an inadequate allowance for loan and lease losses for the volume, kind and quality of loans held.
   IT IS FURTHER ORDERED, that the Bank and its institution-affiliated parties take affirmative action as set forth below. Solely for purposes of enforcement of this Order under section 8(i) of the Act, 12 U.S.C. § 1818(i), the Bank and its institution-affiliated parties will not be deemed to be in violation of paragraphs (a) through (h) above, except to the extent that the Bank is not in compliance with the following provisions:

   [.1] 1. (a) Within ninety (90) days from the effective date of this ORDER, the Bank shall have, and thereafter continue to retain qualified management. The qualifications of management shall be assessed on its ability to:

       (i) comply with the requirements of this ORDER.
       (ii) operate the Bank in a safe and sound manner,
       (iii) comply with applicable laws and regulations, and
       (iv) restore of all aspects of the Bank to a safe and sound condition, including asset quality, capital adequacy, earnings, management effectiveness and liquidity.
   During the life of this ORDER, the Bank shall notify the Regional Director of the Boston Regional Office ("Regional Director") and the Commissioner of Banks for the Commonwealth of Massachusetts ("Commissioner") in writing of any changes in management at the level of senior executive officer, as that term is defined in section 303.14 of the FDIC's Rules and Regulations, 12 C.F.R. § 303.14. The notification must include the names and background of any replacement personnel and must be provided prior to the individual's assuming the new position. Compliance with this paragraph is not intended to supersede or alter the Bank's obligations under the provisions of section 32 of the Act, 12 U.S.C. § 1831i.

   [.2] (b) Toward this end, within sixty (60) days from the effective date of this {{3-31-91 p.C-763}} ORDER, the Board of Directors shall develop a written analysis and assessment of the Bank's management and staffing needs ("management plan"), which shall include, at a minimum:

       (i) identification of both the type and number of officer positions at the level of vice president and above needed to manage and supervise properly the affairs of the Bank;
       (ii) identification and establishment of such Bank committees as are needed to provide guidance and oversight to active management;
       (iii) evaluation of each Bank officer at the level of senior vice president and above, to determine whether these individuals possess the ability, experience and other qualifications required to perform present and anticipated duties, including adherence to the Bank's established policies and practices, and maintenance of the Bank in a safe and sound condition; and
       (iv) a plan of action to recruit and hire any additional or replacement personnel with the requisite ability, experience and other qualifications, which the Board of Directors determines are necessary to fill Bank officer or staff member positions consistent with the Board's analysis, evaluation and assessment as provided in paragraphs 1(b)(i) and 1(b) (iii) of this ORDER.
   (c) The written management plan shall be submitted to the Regional Director and the Commissioner for review and comment. No sooner than sixty (60) days, but under no circumstances later than seventy-five (75) days after such submission, the Board of Directors shall approve the written management plan, taking into consideration any comments received from the Regional Director and/or the Commissioner within such sixty (60) day period, and such approval shall be recorded in the minutes of the Board of Directors. Subsequent modifications to the written management plan may be made only after giving the Regional Director and the Commissioner written notice of the proposed modification, and after consideration of any responsive comments submitted by the Regional Director and/or the Commissioner within thirty (30) days from their receipt of the notice of proposed modification. No such modification shall become effective until approved by the Board of Directors, and such approval shall be recorded in the minutes of the Board of Directors. The Bank, its directors, officers and employees shall implement and follow the written management plan and/ or any subsequent modification thereto.

   [.3] (d) (i) The written management plan shall also include the requirement that the Board of Directors of the Bank, or a committee or committees thereof consisting of not less than a majority of Board members who are independent with respect to the Bank, provide supervision over lending, investment and operating policies of the Bank sufficient to ensure that the Bank complies with the provisions of this ORDER.

   [.4] (ii) At the next meeting of the shareholders of the Bank, and at each succeeding meeting of the shareholders at which Bank directors are to be elected, the members of the Board of Directors who are also shareholders shall nominate and support the election of candidates to the Board of Directors who are independent with respect to the Bank, in such number as is necessary to cause a majority of the Board of Directors to be and to remain independent with respect to the Bank.
   (iii) For purposes of this ORDER, an individual who is "independent with respect to the Bank" shall be any individual (1) who is not an officer of the Bank or any of its affiliated organizations and who does not own more than five (5.0) percent of the outstanding shares of the Bank or any of its affiliated organizations, (2) who is not related by blood, marriage or common financial interest to an officer of the Bank or any of its affiliated organizations or to any stockholder owning more than five (5.0) percent of the Bank's or any of its affiliated organizations outstanding shares, and (3) who is not indebted to the Bank, directly or indirectly (including the indebtedness of any entity in which the individual has a substantial financial interest), in an amount exceeding five (5.0) percent of the Bank's total equity capital and allowance for loan and lease losses.

   [.5] (e) The Bank's Board of Directors {{3-31-91 p.C-764}}shall meet at least monthly. The Board shall prepare in advance and shall follow a detailed written agenda at each meeting, which shall include consideration of actions of any committees. Nothing in the foregoing sentence shall preclude the Board from considering matters other than those contained in the agenda. Detailed written minutes of all Board meetings shall be maintained and recorded on a timely basis.

   [.6] 2. Within ten (10) days from the effective date of this ORDER, the Bank: (1) shall eliminate from its books, by charge-off or collection all assets or portions of assets classified "Loss" as of April 30, 1990; and (2) shall either (A) eliminate from its books by charge-off or collection or (B) if the asset is an extension of credit or lease, increase its allowance for loan and lease losses by an amount equal to, fifty (50.0) percent of those assets or portions of assets classified "Doubtful" as of April 30, 1990, which have not been previously collected or charged off. Reduction of these assets through use of proceeds of loans made by the Bank, other than loans to qualified third party borrowers, does not constitute "collection" or "elimination" for the purpose of this paragraph.

   [.7] 3. (a) The Bank shall develop a written Capital Plan which will be submitted to the Regional Director and the Commissioner for approval within ninety (90) days from the effective date of this ORDER. The Capital Plan should address both internal and external sources of capital augmentation, including capital infusions, retention of earnings, restrictions of asset growth, and asset sales to produce a ratio of core capital elements (Tier 1) to total assets ("core leverage capital ratio") of at least six (6.0) percent, with stated time-tables in which to attain this goal, not to exceed thirty (30) months from the effective date of this ORDER. The Capital Plan shall be deemed approved by the Regional Director and the Commissioner unless written notice to the contrary from either is received by the Bank within sixty (60) days from the Bank's submission of the Capital Plan. Following such approval, the Bank shall implement the Capital Plan. For purposes of this ORDER, the term "core capital elements (Tier 1) shall have the same meaning ascribed to it in Appendix A of Part 325 of the FDIC's Rules and Regulations, 12 C.F.R. Part 325, App. A, and the term "total assets" shall have the same meaning ascribed to it in Part 325 of the FDIC's Rules and Regulations, 12 C.F.R. Part 325.

   [.8] (b) Any increase in the core leverage capital ratio made by the Bank in order to meet the requirements of paragraph 3 of this ORDER may be accomplished by:

       (i) the sale of securities by the Bank or the Bank's parent company;
       (ii) the sale or transfer of existing shares by the Bank's shareholders to individuals who will contribute the required increase in capital to the Bank;
       (iii) the direct contribution of cash or other assets by the shareholders and/or directors of the Bank;
       (iv) the collection of all or part of assets classified: (A) "Loss" as of April 30, 1990, without loss or liability to the Bank, or (B) "Doubtful" as of April 30, 1990, without further or additional loss or liability to the Bank, provided any collection on such assets shall first be applied to that portion of the asset which was not charged off pursuant to paragraph 2 of this ORDER. Reductions to loans and leases classified "Loss" and "Doubtful" shall first be credited to the remaining balance outstanding with regard to such loans and leases and the remainder, if any, then to the Bank's reserve for loan and lease losses ("reserve") and if the Board of Directors' review of the adequacy of the reserve required by paragraph 4 of this ORDER indicates that such reserve has a balance in excess of that required for adequacy, any such excess may be transferred to equity capital through a negative provision for loan and lease losses;
       (v) the collection in cash of assets previously charged off;
       (vi) any combination of the above means; or
       (vii) any other means acceptable to the Regional Director and Commissioner.
   (c) If all or part of any increase to the Bank's capital under paragraph 3(a) of this ORDER involves an offering, other than an offering deemed not to be a public securities offering pursuant to 17 C.F.R. {{3-31-91 p.C-765}} section 230.506 or as hereafter amended, of the Bank's securities (including an offering limited only to the Bank's existing shareholders), the Bank shall prepare detailed offering materials fully describing the securities being offered, including an accurate description of the financial condition of the Bank and of this ORDER as well as the circumstances giving rise to the offering, and any other material disclosures necessary to comply with the Federal securities laws. Prior to the sale of the securities, and, in any event not less than twenty (20) days prior to the dissemination of such materials, the materials used in the sale of the securities shall be submitted to the FDIC, Registration and Disclosure Section, Washington, D. C. 20429, for review. Any changes requested to be made in the materials by the FDIC shall be made prior to their dissemination.
   (d) In complying with the provisions of paragraph 3(c) of this ORDER, the Bank shall provide to any subscriber and/or purchaser of Bank stock, written notice of any planned or existing development or other change which is materially different from the information reflected in any offering materials used in connection with the sale of Bank securities. The written notice required by this paragraph 3(d) shall be furnished within ten (10) business days from the date such material development or change was planned or occurred, whichever is earlier, to every purchaser and/or subscriber of Bank stock who received or was tendered the information contained in the Bank's original offering materials. The requirements of this paragraph 3(d) apply only to sales of stock by the Bank during the pendency of this ORDER.
   (e) If, after having achieved the core leverage capital ratio specified in paragraph 3(a), such ratio thereafter declines below six (6.0) percent, the Bank, within thirty (30) days after the date of such event, shall submit a written plan to the Regional Director and the Commissioner for increasing such ratio up to or in excess of six (6.0) percent within a time to be set by the Regional Director and the Commissioner. Thereafter, the Bank shall continue to maintain its core leverage capital ratio at or in excess of such level as calculated herein while this ORDER is in effect. Upon approval by the Regional Director and the Commissioner, the Bank shall immediately implement the written plan.
   (f) The Bank's Board of Directors shall maintain in its minutes a written record of all actions taken by the Bank to comply with the capital requirements of paragraphs 3(a) through 3(d) of this ORDER, including, at a minimum, any action to increase its capital by each of the methods specified in paragraphs 3(b)(i) through 3(b) (vii) of this ORDER.

   [.9] 4. (a) The Bank shall maintain an allowance for loan and lease losses in accordance with the prevailing requirements of the Instructions for the Reports of Condition and Income ("Instructions")
   (b) Reports of Condition and Income required to be submitted by the Bank as of each Report date, as that term is used in the Instructions, between and including March 31, 1990 and the effective date of this ORDER, shall, at a minimum, reflect an allowance for loan and lease losses that is in accordance with the Instructions. If necessary to comply with this paragraph 4(b), the Bank shall file amended Reports of Condition and Income within ten (10) days from the effective date of this ORDER.
   (c) Prior to the submission of any Report of Condition or Report of Income required to be filed by the Bank after the effective date of this ORDER, the Board of Directors of the Bank shall: (1) review the adequacy of the Bank's allowance for loan and lease losses, (2) provide for an adequate allowance, and (3) cause the Bank to accurately report the allowance in any such Report of Condition and Income. The minutes of the Board meeting at which such review is undertaken shall indicate the results of the review, including any increases in the allowance, and the basis for determining the amount of allowance provided.

   [.10] 5. (a) Within thirty (30) days from the effective date of this ORDER, the Board of Directors, with the assistance of Bank management, shall develop a written plan of action to lessen the Bank's risk position with respect to each borrower who or which had outstanding principal debt owing to the Bank in excess of $500,000 which was classified "Substandard" or {{3-31-91 p.C-766}} "Doubtful," in whole or in part, as of April 30, 1990. In developing such plan, the Bank shall, at a minimum:

       (i) review the financial position of each such borrower, including source of repayment, repayment ability, and alternative repayment sources; and
       (ii) evaluate the available collateral for each such credit, including possible actions to improve the Bank's collateral position.
   Based upon such review and evaluation, the written plan of action shall also: (A) establish target dollar levels to which the Bank shall reduce the aggregate dollar volume of such "Substandard" or "Doubtful" classifications within six (6) and twelve (12) months from the effective date of this ORDER; and (B) provide for the submission of written monthly progress reports on such classified assets to the Bank's Board of Directors for review and notation in the Board minutes. Such information shall be in the form of Exhibit A, or in any other form so long as it includes all the information contained in Exhibit A. As used in this paragraph 5, "reduce" means to (1) collect, (2) charge off, or (3) improve the quality of such assets so as to warrant removal of any adverse classification by the FDIC and the Commissioner. Payment of loans with the proceeds of the other loans made by the Bank, other than loans to qualified third party borrowers, will not constitute "reduction" or "collection" for purposes of this ORDER.
   (b) The written plan of action described by paragraph 5(a) shall be submitted to the Regional Director and the Commissioner for review and comment. No sooner than thirty (30) days, but under no circumstances later than sixty (60) days after submission, the Board of Directors shall approve the written plan of action, taking into consideration any comments received from the Regional Director and/or the Commissioner within such thirty (30) day period, and such approval shall be recorded in the minutes of the Board of Directors. Subsequent modifications to the written plan may be made only after giving the Regional Director and the Commissioner written notice of the proposed modification, and after consideration of any responsive comments submitted by the Regional Director and/or the Commissioner within thirty (30) days from their receipt of the notice of proposed modification. No such modification shall become effective until approved by the Board of Directors, and such approval shall be recorded in the minutes of the Board of Directors. The Bank, its directors, officers and employees shall follow the written plan of action and/or any subsequent modification.

   [.11] 6. The Bank shall not extend, directly or indirectly, or renew credit to, or for the benefit of, any borrower who has a loan or other extension of credit with the Bank that has been charged off or classified, in whole or in part, "Loss," "Doubtful," or "Substandard," and is uncollected, unless a majority of the Bank's Board of Directors or Directors' Loan Committee consisting of a majority of independent Directors first (1) determines that such advance is in the best interest of the Bank, (2) determines that the Bank has satisfied the requirements set out in paragraph 5 of this ORDER as to such borrower, if applicable, and (3) approves such advance. A written record of the Board of Directors' determination and approval of any advance under the terms of this paragraph 6 shall be maintained in the credit file of the affected borrower(s) as well as the minutes of the Board of Directors. Notwithstanding the foregoing provisions, this ORDER shall not require such approvals by the Board of Directors for extensions of credit made pursuant to legally binding contractual commitments entered into by the Bank prior to the effective date of this ORDER.

   [.12] 7. The Bank shall not accrue interest on any loan that is, or becomes, ninety (90) days or more delinquent as to principal or interest, unless the loan is both well secured and in the process of collection. For purposes of this paragraph, "well secured" and "in the process of collection" shall have the same meaning as those terms have in the prevailing Instructions for the Reports of Condition and Income. The Bank shall reverse on its books all previously accrued but uncollected interest on any loan that has ceased to accrue interest pursuant to this provision.

   [.13] 8. Within thirty (30) days from the effective date of this ORDER, the Bank shall revise its written loan policy. The revised written loan policy shall be submitted to the Regional Director and the Commissioner for review and comment. No sooner than thirty {{3-31-91 p.C-767}} (30) days, but under no circumstances later than sixty (60) days after such submission, the Board of Directors shall approve the written plan of action, taking into consideration any comments received from the Regional Director and/or the Commissioner within such thirty (30) day period, and such approval shall be recorded in the minutes of the Board of Directors. Subsequent modifications to the revised written loan policy may be made only after giving the Regional Director and the Commissioner written notice of the proposed modification, and after consideration of any responsive comments submitted by the Regional Director and/or the Commissioner within thirty (30) days from their receipt of the notice of proposed modification. No such modification shall become effective until approved by the Board of Directors, and such approval shall be recorded in the minutes of the Board of Directors. The Bank, its directors, officers, and employees shall follow the revised written loan policies and/or any subsequent modification thereto.

   [.14] 9. (a) Within thirty (30) days from the effective date of this ORDER, the Board of Directors, with the assistance of Bank management, shall develop a written profit plan consisting of goals and strategies for improving the earnings of the Bank, which written profit plan shall include, at a minimum:

       (i) identification of the major areas in, and means by, which the Bank will seek to improve its operating performance;
       (ii) realistic and comprehensive budgets;
       (iii) a budget review process to monitor the income and expenses of the Bank to compare actual figures with budgetary projections; and
       (iv) a description of the operating assumptions that form the basis for, and adequately support, major projected income and expense components.
   (b) The written profit plan shall be submitted to the Regional Director and the Commissioner for review and comment. No sooner than thirty (30) days, but under no circumstances later than sixty (60) days after such submission, the Board of Directors shall approve the written plan of action, taking into consideration any comments received from the Regional Director and/or the Commissioner within such thirty (30) day period, and such approval shall be recorded in the minutes of the Board of Directors. Subsequent modifications to the written profit plan may be made only after giving the Regional Director and the Commissioner written notice of the proposed modification, and after consideration of any responsive comments submitted by the Regional Director and/or the Commissioner within thirty (30) days from their receipt of the notice of proposed modification. No such modification shall become effective until approved by the Board of Directors, and such approval shall be recorded in the minutes of the Board of Directors. The Bank, its directors, officers, and employees shall follow the written profit plan and/or any subsequent modification thereto.

   [.15] 10. (a) Within thirty (30) days from the effective date of this ORDER, the Bank shall develop a written funds management policy which shall include, at a minimum:

       (i) the Bank's liquidity needs and plans for insuring that such needs are met on an ongoing basis;
       (ii) goals and strategies for managing and/or improving the Bank's interest rate risk exposure;
       (iii) monitoring of the interest rate sensitivity of present investments and deposits and projections of the types of investments and deposits to improve such liquidity position; and
       (iv) coordination of the Bank's loan, investment, operating, and budget and profit planning policies with the written funds management policy.
   (b) The written funds management policy shall be submitted to the Regional Director and the Commissioner for review and comment. No sooner than thirty (30) days, but under no circumstances later than sixty (60) days after such submission, the Board of Directors shall approve the written plan of action, taking into consideration any comments received from the Regional Director and/or the Commissioner within such thirty (30) day period, and such approval shall be recorded in the minutes of the Board of Directors. Subsequent modifications to the written funds management policy may be made only after giving the Regional Director and the {{3-31-91 p.C-768}} Commissioner written notice of the proposed modification, and after consideration of any responsive comments submitted by the Regional Director and/or the Commissioner within thirty (30) days from their receipt of the notice of proposed modification. No such modification shall become effective until approved by the Board of Directors, and such approval shall be recorded in the minutes of the Board of Directors. The Bank, its directors, officers and employees shall follow the written funds management policy and/or any subsequent modification thereto.

   [.16] 11. The Bank shall not pay or declare any cash dividends without the prior written consent of the Regional Director and the Commissioner.

   [.17] 12. Following the effective date of this ORDER, the Bank shall send to its shareholders a description of this ORDER, (1) in conjunction with the Bank's next shareholder communication, and also (2) in conjunction with its notice or proxy statement preceding the Bank's next shareholder meeting. The description shall fully describe the ORDER in all material respects. The description and any accompanying communication, statement, or notice shall be sent to the FDIC, Registration and Disclosure Section, Washington, D.C. 20429, for review at least twenty (20) days prior to dissemination to shareholders. Any changes requested to be made by the FDIC shall be made prior to dissemination of the description, communication, notice, or statement.

   [.18] 13. (a) Within sixty (60) days from the effective date of this ORDER, the Bank shall correct the remediable technical exceptions on loans noted on pages 2-d and 2-d-1 of the FDIC's Report of Examination of the Bank as of April 30, 1990.

   [.19] (b) Within (60) days from the effective date of this ORDER, the Bank shall correct the remediable cited deficiencies in the loans listed for "Special Mention" on pages 2-b through 2-b-2 of the FDIC's Report of Examination of the Bank as of April 30, 1990.

   [.20] 14. Within sixty (60) days from the effective date of this ORDER, the Bank shall eliminate and/or correct all remediable violations of law and regulations committed by the Bank as described on pages 6-a and 6-a-1 of the FDIC's Report of Examination of the Bank as of April 30, 1990.

   [.21] 15. Within thirty (30) days from the effective date of this ORDER, and, thereafter, within forty-five (45) days from the end of each calendar quarter, the Bank shall furnish written progress reports to the Regional Director and the Commissioner detailing the form and manner of any action taken to secure compliance with this ORDER and the results thereof. In addition, the Bank shall furnish such reports on request of either the Regional Director or the Commissioner. All progress reports and other written responses to this ORDER shall be reviewed by the Board of Directors of the Bank and made a part of the minutes of the Board meeting.

   [.22] 16. The Bank shall not make any payments to, or for the benefit of, any "affiliate" as that term is defined in Section 23A of the Federal Reserve Act, 12 U.S.C. § 371c(b)(1), without the prior written consent of the Regional Director and the Commissioner.
   This ORDER shall become effective ten (10) days from the date of its issuance.
   The provisions of this ORDER shall be binding upon the Bank and its institution-affiliated parties.
   This ORDER has been reviewed and concurred in by the Commissioner.
   The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
   Pursuant to delegated authority.
   Dated at Needham, Massachusetts this 16th day of January, 1991.

BOSTON TRADE BANK
BOSTON, MASSACHUSETTS

CRITICIZED ASSET REPORT
AS OF: ___
__________
BORROWER(S):
__________
ASSET BALANCE(S) AND RATING CRITICISM (SPECIAL MENTION, SUB-STANDARD, DOUBTFUL OR LOSS):
CLASSIFIED LOAN
BALANCE(S): $ _____
PRESENT LOAN
BALANCE(S): $ _____
CRITICISM _____
AMOUNT CHARGED OFF TO DATE
{{2-29-92 p.C-769}}
___ FUTURE POTENTIAL CHARGE-OFF ___
__________
PRESENT STATUS*(Include past due status, nonaccrual, significant progress of collection, deterioration, etc.):
__________
FINANCIAL AND/OR COLLATERAL SUPPORT (Include brief summary of most current financial info, appraised value of collateral and/or estimated value and date thereof, bank's lien position and amount of available equity, if any, guarantor(s) info, etc.):
__________
PROPOSED PLAN OF ACTION TO ELIMINATE ASSET CRITICISM(S) AND TIME-FRAME FOR ITS ACCOMPLISHMENT:
__________
IDENTIFIED SOURCE OF REPAYMENT AND DEFINED REPAYMENT PROGRAM (Repayment program should coincide with source of repayment):
__________
* Use this form for reporting each criticized asset as to each borrower to whom paragraph 5 of the Order to Cease and Desist applies, and retain the original in the credit file for review by the examiners. Submit your reports quarterly, in writing, until notified otherwise by the FDIC Regional Director and the Commissioner.

ED&O Home | Search Form | Text Search | ED&O Help

Last Updated 6/6/2003 legal@fdic.gov