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


{{6-30-92 p.C-925}}

   [10,208] In the Matter of The Bank for Savings, Malden, Massachusetts, Docket No. FDIC-91-93b (3-28-91).

   Bank to cease and desist from operating with an excessive volume of adversely classified assets; engaging in hazardous lending and lax collection practices; operating with inadequate capital; operating in violation of law and regulations; operating with management whose policies are detrimental to the bank; operating with inadequate loan documentation; engaging in practices which produce inadequate operating income and excessive loan losses; failing to provide adequate supervision and direction over the affairs of the bank; operating with inadequate liquidity; operations which result in excessive interest rate risk exposure; and operating without proper internal routine and controls. (This order was terminated by order of the FDIC dated 4-23-92; see ¶ 15,437.)

   [.1] Management—Qualifications—Review
   [.2] Management—Management Plan—Minimum Requirements—Review
   [.3] Board of Trustees—Election—Independent Trustees
   [.4] Board of Trustees—Meetings—Frequency—Written Record
   [.5] Assets—Adversely Classified—Reduce/Eliminate
   [.6] Capital—Tier 1 Capital—Increase/Maintain—Methods
   [.7] Allowance for Loan and Lease Losses—Adequacy—Report
   [.8] Loans—Risk Position—Reduce—Written Plan
   [.9] Assets—Adversely Classified—Appraisal Required
   [.10] Loans—Extensions of Credit—Existing Borrowers—Curtail
   [.11] Loan Policy—Review
   [.12] Profit Plan—Written Plan—Minimum Requirements—Review
   [.13] Funds Management—Written Policy—Minimum Requirements— Review
   [.14] Technical Exceptions—Correct
   [.15] Loans—Concentrations—Reduce
   [.16] Loans—Special Mention—Correct Deficiencies
   [.17] Violations of Law—Eliminate/Correct
{{6-30-92 p.C-926}}
   [.18] Surety Bonds—Officers/Employees
   [.19] Compliance—Progress Reports—Frequency

In the Matter of

THE BANK FOR SAVINGS
MALDEN, MASSACHUSETTS
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST

   The Bank of Savings, Malden, Massachusetts ("Bank"), having been advised of its right to a Notice of Charges and of Hearing 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 March 26, 1991, whereby solely for the purpose of settling this proceeding and without admitting 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 the issuance of an order under section 8(b) of the Act, and 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 and certain limited instances of lax collection practices, including maintaining an excessive volume of adversely classified loans;
       (c) operating with inadequate capital for the kind and quality of assets held;
       (d) engaging in the two violations of applicable laws and regulations cited in the FDIC's Report of Examination of the Bank as of June 18, 1990;
       (e) operating with management policies and practices which 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, real estate appraisals, and cash flow and/or operating information;
       (g) engaging in practices which produce inadequate operating income and excessive loan losses;
       (h) failing to provide adequate supervision and direction over the affairs of the Bank to prevent unsafe or unsound practices and the violations of law and/or regulations referred to in paragraph (d) above;
       (i) operating with inadequate liquidity;
       (j) operations which result in excessive interest rate risk exposure;
       (k) operating without proper internal routine and controls.
   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, the Bank and its institution-affiliated parties will not be deemed to be in violation of paragraphs (a) through (k) above, except to the extent that the Bank is not in compliance with the following provisions:

   [.1] (a) Within ninety (90) days from the effective date of this ORDER, the Bank shall have and retain qualified management. At a minimum, such management shall include a senior lending officer with proven ability in managing a loan portfolio of similar size, as well as such other individuals as the Bank deems necessary in order to upgrade its low quality loan and foreclosed real estate portfolios. Such persons shall have an appropriate level of lending, collection and loan supervision experience for the type and quality of the {{5-31-91 p.C-927}} Bank's loans, and shall be provided the necessary written authority to implement the provisions of this ORDER. 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 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 of the Commonwealth of Massachusetts ("Commissioner") in writing of any changes in management at the level of Vice President or above. 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.

   [.2] (b) Within forty-five (45) days from the effective date of this ORDER, the Board of Trustees 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 Vice President and above, and in particular the senior lending officer, to determine whether these individuals posses 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 Trustees determines are necessary to fill Bank officer or lending staff 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 forty-five (45) days, but under no circumstances more than sixty (60) days after such submission, the Board of Trustees shall approve the written management plan, taking into consideration any regulatory comments received within such forty-five (45) day period, and such approval shall be recorded in the minutes of the Board of Trustees. 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 Trustees, and such approval shall be recorded in the minutes of the Board of Trustees. The Bank, its trustees, 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 Trustees 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.

       (ii) At the next meeting of the nominating committee of the Bank, and at each succeeding meeting of that committee at which individuals are nominated for the office of trustee, the committee shall nominate individuals who {{5-31-91 p.C-928}} are independent with respect to the Bank in such number as is necessary to cause a majority of the Board of Trustees 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, (2) who is not related by blood, marriage or common financial interest to an officer of the Bank, 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.

   [.4] (e) The Bank's Board of Trustees 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. A chronological file of all written agendas shall be maintained. Notwithstanding the foregoing, the Board shall not be precluded 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.

   [.5] 5. 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 June 18, 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 June 18, 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.

   [.6] 3. (a) (i) By December 31, 1993, the Bank shall (A) have Tier 1 capital at or in excess of eight (8.0) percent of the Bank's total assets ("Tier 1 leverage capital ratio") and shall thereafter continue to maintain its Tier 1 leverage capital ratio at or in excess of such level as calculated herein while this ORDER is in effect, and (B) comply with the FDIC's Statement of Policy on Risk-Pased Capital found in Appendix A to Part 325 of the FDIC Rules and Regulations, 12 C.F.R. Part 325, App. A. Toward this end, the Bank shall develop a 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. For purposes of this ORDER, it is understood that as of February 28, 1991, the Bank's leverage capital was approximately two and eight-tenths (2.8) percent.
   (ii) For purposes of this ORDER, the term "Tier 1 capital" means the sum of common stockholders' equity, noncumulative perpetual preferred stock (including any related surplus), and minority interests in consolidated subsidiaries, minus all intangible assets other than mortgage servicing rights (to the extent that such rights are allowable as capital in Part 325 of the FDIC's Rules and Regulations, 12 C.F.R. Part 325, as existing on the date of the issuance of the ORDER and as hereinafter amended), off balance sheet items classified loss, liabilities not shown on the Bank's books, estimated losses on contingent liabilities, differences in accounts which represent shortages any other losses identified subsequent to the Examination which have either not been recognized on the Bank's books or have not been collected or otherwise settled, and investments in securities subsidiaries subject to 12 C.F.R. § 337.4.
   (iii) For purposes of this ORDER, the term "total assets" means the average of total assets required to be included in the Bank's "Reports of Condition and Income," as this report may from time to time be revised, as of the most recent report date (and after making any necessary subsidiary adjustments as described in 12 C.F.R. § 325.5(d) and (e) of the FDIC's Rules and Regulations in effect as of the date of the issuance of this ORDER), minus {{5-31-91 p.C-929}} intangible assets other than mortgage servicing rights (to the extent that such rights are allowable as capital in Part 325 of the FDIC's Rules and Regulations, 12 C.F.R. Part 325, as existing on the date of the issuance of the ORDER and as hereinafter amended) and any other assets that are deducted in determining Tier 1 capital.
   (b) In calculating the Bank's Tier 1 leverage capital ratio under paragraph 3(a), the Bank shall first comply fully with paragraph 2 of this ORDER. Thereafter, such ratio and its component parts shall be determined only after the Bank has made such additions to its Reserve so as to bring the Reserve into compliance with the prevailing requirements of the Instructions for the Reports of Condition and Income and charges off any losses identified subsequent to the FDIC's examination of the Bank as of June 18, 1990 ("Examination").
   (c) Any increase in the Tier 1 leverage capital ratio made by the Bank in order to meet the requirements of paragraph 3(a) of this ORDER may be accomplished by:

       (i) the sale of new offerings of common stock or perpetual preferred stock;
       (ii) the direct contribution of cash by the trustees of the Bank;
       (iii) the collection of all or part of assets classified "Loss" within the Examination without liability to the Bank, recognizing only the net amount collected. Reductions to loans and leases classified "Loss" shall first be credited to the Bank's Reserve and, if the Board of Trustees' review of the adequacy of the Reserve required by paragraph 2 of this ORDER indicates that such Reserve has a balance in excess of that required for adequacy, any such excess many be transferred to equity capital through a negative provision to the Reserve;
       (iv) the collection in cash of assets previously charged off;
       (v) any combination of the above means; or
       (vi) any other means acceptable to the Regional Director and the Commissioner.
   (d) If, after having achieved the Tier 1 leverage capital the ratio specified in paragraph 3(a)(i), such ratio declines below eight (8.0) percent, the Bank, within thirty (30) days after the date on which said ratio so declines, shall submit a written plan to the Regional Director and the Commissioner for increasing such ratio up to or in excess of eight (8.0) percent within sixty (60) days after the written plan is implemented. Thereafter, the Bank shall continue to maintain its Tier 1 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.
   (e) If all or part of any increase in capital made by the Bank in order to meet the requirements of this paragraph 3 involves an offering, other than an offering deemed not to be a public securities offering pursuant to 17 C.F.R. section 230.506 or as hereafter amended, of the Bank's securities (including a distribution 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.
   (f) In complying with the provisions of paragraph 3(e) 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(f) shall be furnished within ten (10) calendar days from the date such material development or change was planned or occurred, which- {{5-31-91 p.C-930}}ever 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.
   (g) The Bank's Board of Trustees 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(f) of this ORDER, including, at a minimum, any action to increase its Tier 1 capital by each of the methods specified in paragraphs 3(c)(i) through 3(c)(vi) of this ORDER.

   [.7] 4. 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 Trustees 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.

   [.8] 5. (a) Within ninety (90) days from the effective date of this ORDER, the Board of Trustees, 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 or other real estate property who or which had outstanding principal debt owing or carrying value, net of specific reserves or charge-off, to the Bank in excess of $750,000 which was classified "Substandard" or "Doubtful," in whole or in part, as of June 18, 1990. In developing such plan, the Bank shall, at a minimum:

       (i) in the case of loans, review the financial position of each such borrower, including source of repayment, repayment ability, and alternative repayment sources;
       (ii) evaluate the available collateral for each such credit, including possible actions to improve the Bank's collateral position; and
       (iii) in the case of other real estate, provide cost/benefit analyses of holding property versus current liquidation value.
   Based upon such review and evaluation, the written plan of action shall: (A) establish target dollar levels to which the Bank shall reduce the aggregate dollar volume of "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 Trustees for review and notation in the Board minutes. Exhibit A provides an example form which includes all the information to be included in the progress report. 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 more than forty-five (45) days after such submission, the Board of Trustees shall approve the written plan of action, taking into consideration any regulatory comments received within such thirty (30) day period, and such approval shall be recorded in the minutes of the Board of Trustees. 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 Trustees, and such approval shall be recorded in the minutes of the Board of Trustees. The Bank, its trustees, officers and employees shall follow the written plan of action and/or any subsequent modification.

   [.9] 6. The Bank shall cause independent outside appraisals to be performed for all larger credits and other real estate in excess of $750,000 which are adversely classified in the FDIC's Report of Examination of the Bank as of June 18, 1990, whenever exist- {{5-31-91 p.C-931}}ing outside appraisal reports for such assets are more than two years old. For those adversely classified assets in excess of $750,000 that are identified as lacking any independent outside appraisals in the FDIC's Report of Examination of the Bank as of June 18, 1990, the bank shall cause such appraisals to be performed and to be submitted to the Regional Director and Commissioner within ninety (90) days from the effective date of this ORDER.

   [.10] 7. The Bank shall not extend or renew, directly or indirectly, 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 Trustees 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 Trustees' 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 Trustees. Notwithstanding the foregoing provisions, this ORDER shall not require such approvals by the Board for extensions of credit made pursuant to legally binding contractual commitments entered into by the Bank prior to the effective date of this ORDER.

   [.11] 8. Within sixty (60) days from the effective date of this ORDER, the Board of Trustees shall review the Bank's written loan policy and shall record the results of such review in the Board of Trustees minutes. Thereafter, the Bank, its trustees, officers, and employees shall follow the written loan policy.

   [.12] 9. (a) Within ninety (90) days from the effective date of this ORDER, the Bank 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 more than forty-five (45) days after such submission, the Board of Trustees shall approve the written profit plan, taking into consideration any regulatory comments received within such thirty (30) day period, and such approval shall be recorded in the minutes of the Board of Trustees. 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 Trustees, and such approval shall be recorded in the minutes of the Board of Trustees. The Bank, its trustees, officers, and employees shall follow the written profit plan and/or any subsequent modification thereto.

   [.13] 10. (a) Within sixty (60) 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 {{5-31-91 p.C-932}}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 more than forty-five (45) days after such submission, the Board of Trustees shall approve the written funds management policy, taking into consideration any regulatory comments received within such thirty (30) day period, and such approval shall be recorded in the minutes of the Board of Trustees. Subsequent modifications to the written funds management 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 Trustees, and such approval shall be recorded in the minutes of the Board of Trustees. The Bank, its trustees, officers and employees shall follow the written funds management policy and/or any subsequent modification thereto.

   [.14] 11. (a) Within sixty (60) days from the effective date of this ORDER, the Bank shall correct the remediable technical exceptions on assets noted on pages 2-d through 2-d-2 of the FDIC's Report of Examination of the Bank as of June 18, 1990.

   [.15] (b) Within (60) days from the effective date of this ORDER, the Bank shall formulate and implement a plan to reduce, by means including but not limited to collection, charge-off or acquisition of the underlying collateral, the concentration as noted on page 2-b of the FDIC's Report of Examination of the Bank as of June 18, 1990 to less than twenty-five (25.0) percent of total equity capital and allowance for loan and lease losses calculated as of May 31, 1990.

   [.16] (c) Within (60) days from the effective date of this ORDER, the Bank shall correct the cited deficiencies in the loan listed for "Special Mention" on pages 2-c and 2-c-1 of the FDIC's Report of Examination of the Bank as of June 18, 1990.

   [.17] 12. Within sixty (60) days from the effective date of this ORDER, the Bank shall eliminate and/or correct all violations of law and regulations committed by the Bank as described on pages 6-1 and 6-1-a of the FDIC's Report of Examination of the Bank as of June 18, 1990. The Bank shall take all reasonable and necessary steps in good faith to ensure future compliance with all applicable laws and regulations.

   [.18] 13. The bank shall maintain adequate surety bond coverage on its active officers and employees.

   [.19] 14. On May 15, 1991, 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. These progress reports shall include copies of the criticized asset reports described in paragraph 5(a) for the last month of the previous quarter in the form of Exhibit A of this ORDER, and shall include a summary of such criticized assets. 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 Trustees of the bank and made a part of the minutes of the Board meeting.
   Nothing in the provisions of this ORDER shall affect or inhibit the Bank's ability to invoke or make application to any assistance program which may become available, or to take advantage of any policy statement, rule, regulation or law which becomes applicable after the effective date of this ORDER.
   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 28th day of March, 1991.

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

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