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FDIC Enforcement Decisions and Orders

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{{9-30-93 p.C-1451}}
   [10,335] In the Matter of Mokena State Bank, Mokena, Illinois, Docket No. FDIC-91-294b (9-13-91).

   Bank to cease and desist from such unsafe or unsound practices as following hazardous lending and lax collection practices; operating in violation of applicable laws or regulations; operating with excessive volumes of adversely classified assets; operating with an excessive level of delinquent loans; operating with inadequate allowance for loan and lease losses; operating so as to produce inadequate net interest margin and net income; operating with an excessive level of interest rate risk; operating with inadequate routine and controls policies; operating with management whose policies are detrimental to the Bank; and failing to provide adequate supervision over the Bank's affairs. (This order was terminated by order of the FDIC dated 7-8-93; see15,698.)

   [.1] Management—Management Plan—Minimum Requirements
   [.2] Management—Qualifications—Review
   [.3] Loans—Extensions of Credit—Individual Prohibited from Making
   [.4] Board of Directors—New Members Added
   [.5] Capital—Tier 1 Capital—Increase/Maintain—Methods
   [.6] Dividends—Restricted
   [.7] Loans—Loan Committee—Functions
   [.8] Assets—Adversely Classified—Eliminate/Reduce
   [.9] Allowance for Loan and Lease Losses—Establish/Maintain
   [.10] Loan Policy—Written Revision—Minimum Requirements
   [.11] Loans—Risk Position—Reduce—Written Plan Required
   [.12] Loans—Extensions of Credit—Existing Borrowers—Curtail
   [.13] Assets—Total Assets—Limitations on Increase
   [.14] Violations of Law—Eliminate/Correct
   [.15] Loans—Special Mention—Correct Deficiencies
   [.16] Technical Exceptions—Correct/Eliminate

{{9-30-93 p.C-1452}}
   [.17] Asset/Liability Management—Written Policy—Minimum Requirements
   [.18] Audit—Internal and External
   [.19] Profit Plan—Minimum Requirements
   [.20] Shareholders—Disclosure—Cease and Desist Order
   [.21] Compliance Reports—Frequency

In the Matter of

MOKENA STATE BANK
MOKENA, ILLINOIS
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST

   Mokena State Bank, Mokena, Illinois ("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 regulation alleged to have been committed by the Bank, and of its right to a hearing on the charges under section 8(b) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b), 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 September 13, 1991, whereby, solely for the purpose of this proceeding and without admitting or denying the charges of unsafe or unsound banking practices and violations of law and regulation, 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 has engaged in unsafe or unsound banking practices and has violated laws and regulations. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER TO CEASE AND DESIST

   IT IS HEREBY ORDERED that the Bank, its institution-affiliated parties, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns, cease and desist from the unsafe or unsound banking practices and violations of law and regulation listed below:
   A. Engaging in hazardous lending and lax collection practices;
   B. Violating the appraisal requirements of section 323 of FDIC Rules and Regulations, 12 C.F.R. § 323 and the segregation of customer securities requirements of Part 450 of the Department of Treasury Statutes and Regulations, 17 C.F.R. § 450;
   C. Operating with an excessive level of classified assets;
   D. Operating with an excessive level of delinquent loans with insufficient records to identify the repayment status of such loans;
   E. Operating with an inadequate allowance for loan and lease losses for the volume, kind, and quality of loans held;
   F. Operating in such a manner as to result in an inadequate net interest margin and net income;
   G. Operating in such a manner as to result in an excessive level of interest rate risk;
   H. Operating with insufficient internal routines and controls, and an inadequate audit program;
   I. Operating with a management whose policies and practices are detrimental to the Bank and which jeopardize the safety of its deposits; and
   J. Operating with a board of directors which has failed to provide adequate supervision over and direction to the management of the Bank.
   IT IS FURTHER ORDERED, that the Bank, its institution-affiliated parties, and its successors and assigns, take affirmative action as follows:

[.1] 1. (a) Within 60 days from the effective date of this ORDER, the Bank shall retain a bank consultant acceptable to the Regional Director of the Chicago Regional Office of the FDIC ("Regional Director") and the Commissioner of Banks and Trust Companies for the State of Illinois ("Commissioner"). The consultant shall develop a written analysis and assessment of the Bank's management and staffing needs ("Management Plan") for the purpose of providing qualified management for the Bank. The Management Plan shall include, at a minimum:

       (i) identification of both the type and
    {{11-30-91 p.C-1453}}number of officer positions needed to properly manage and supervise 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 all Bank officers and staff members 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 restoration and maintenance of the Bank in a safe and sound condition; and
       (iv) a plan to recruit and hire any additional or replacement personnel with the requisite ability, experience and other qualifications to fill those officer or staff member positions identified by this paragraph of the ORDER.
   (b) The Management Plan and any subsequent modification thereto shall be submitted to the Regional Director and Commissioner for review and comment. Within 30 days of receipt of any comment from the Regional Director or Commissioner, the Bank shall approve the Management Plan, which approval shall be recorded in the minutes of the board of directors' meeting. Thereafter, the Bank, its directors, officers and employees shall implement and follow the management Plan and any subsequent modifications thereto.

[.2] 2. (a) Within 120 days from the effective date of this ORDER, the Bank shall have and retain qualified management. At a minimum, such management shall include: (i) a chief executive officer with proven ability in managing a bank of comparable size and experience in upgrading a low quality loan portfolio; and (ii) a senior lending officer with an appropriate level of lending, collection, and loan supervision experience for the type and quality of the Bank's loan portfolio. Such persons 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.
   (b) During the life of this ORDER, the Bank shall notify the Regional Director and Commissioner in writing of any changes in any of the Bank's management. For purposes of this ORDER, "management" is defined as members of the board of directors and "senior executive officers" as that term is defined in section 32 of the Act ("section 32"), 12 U.S.C. § 1831(i) and section 303.14 of the FDIC's Rules and Regulations (section 303.14), 12 C.F.R. § 303.14. Prior to the addition of any individual to the board of directors or the employment of any individual as a senior executive officer, the Bank shall comply with the requirements of section 32 and section 303.14.

   [.3] 3. As of the effective date of this ORDER, the Bank shall remove all lending authority from James E. Cooper. For purposes of this paragraph, lending authority shall be defined to include, but not be limited to, authority to make, renew, negotiate terms and conditions, or release, substitute or accept collateral for any loan, overdraft or other extension of credit, either individually, in his capacity as President and Chief Lending Officer, or as a member of the board of directors or of any committee of the board of directors.

   [.4] 4. Within 120 days from the effective date of this ORDER, the Bank shall add to its board of directors two new members, one of whom will be the new chief executive officer and the other will be an independent director. Fur purposes of this ORDER, a person who is an independent director shall be any individual (a) who is not an employee, former employee, or officer of the Bank; (b) who does not own more than five percent of the outstanding shares of the Bank or any affiliate thereof; (c) who is not related by blood or marriage to an officer or director of the Bank or any affiliate thereof or to any shareholder owning more than five percent of the Bank's outstanding shares or any affiliate thereof, and
{{11-30-91 p.C-1454}}who does not otherwise share a common financial interest with such officer, director or shareholder; and (d) who is not indebted to the Bank directly or indirectly by blood, marriage or common financial interest, including the indebtedness of any entity in which the individual has a substantial financial interest in an amount exceeding five percent of the Bank's total Tier 1 capital and allowance for loan and lease losses. As used herein, "affiliate" has the meaning as that term is defined in section 23A of the Federal Reserve Act, 12 U.S.C. § 371c. The addition of any new Bank directors required by this paragraph may be accomplished, to the extent permissible by state statute or the Bank's bylaws, by means of appointment or by election at a regular or special meeting of the Bank's shareholders.

[.5] 5. (a) Within 30 days of each June 30 and December 31 following the effective date of this ORDER, the Bank shall determine its level of Tier 1 capital as a percentage of its total assets ("capital ratio") for the calendar quarter ending on that June 30 and December 31 date. If the capital ratio is less than 7 percent, the Bank shall, within 90 days of the date of the required determination, increase its capital ratio to not less than 7 percent calculated as of the end of that preceding semiannual period. For purposes of this ORDER, Tier 1 capital, the capital ratio, and total assets shall be calculated in accordance with Part 325 of the FDIC's Rules and Regulations ("Part 325"), 12 C.F.R. Part 325, and all appendices thereto.
   (b) Any such increase in Tier 1 capital may be accomplished by the following:

       (i) The sale of common stock and noncumulative perpetual preferred stock constituting Tier 1 capital under Part 325; or
       (ii) The elimination of all or part of the assets classified "Loss" or "Doubtful" as of April 20, 1991 without loss or liability to the Bank, provided any such collection on a partially charged-off asset shall first be applied to that portion of the asset which was not charged off pursuant to this ORDER; or
       (iii) The collection in cash of assets previously charged off; or
       (iv) The direct contribution of cash by the directors and/or the shareholders of the Bank or its holding company; or
       (v) Any other means acceptable to the Regional Director and Commissioner; or
       (vi) Any combination of the above means.
   (c) If all or part of the increase in capital required by this paragraph is to be accomplished by the sale of new securities, the board of directors of the Bank shall adopt and implement a plan for the sale of such additional securities, including the voting of any shares owned or proxies held by or controlled by them in favor of said plan. Should the implementation of the plan involve public distribution 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 the circumstances giving rise to the offering, and any other material disclosures necessary to comply with the Federal securities laws. Prior to the implementation of the plan and, in any event, not less than 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, Room G-4070, 500 17th Street, N.W., Washington, D.C. 20429, for its 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 5(c) of this ORDER, the Bank shall provide to any subscriber and/or purchaser of the Bank's securities written notice of any planned or existing development or other changes which are 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 shall be furnished within 10 calendar days of the date any material development or change was planned or occurred, whichever is earlier, and shall be furnished to every purchaser and/or subscriber of the Bank's original offering materials.
   (e) The capital ratio analysis as of June 30 and December 31 of each year described in this paragraph of the ORDER shall not negate the responsibility of the
{{11-30-91 p.C-1455}}Bank and its board of directors for maintaining throughout the year an adequate level of capital protection for the kind, quality and degree of market depreciation of assets held by the Bank.

   [.6] 6. As of the effective date of this ORDER, the Bank shall not declare or pay any cash dividend without the prior written consent of the Regional Director and Commissioner.

   [.7] 7. As of the effective date of this ORDER, the Bank's loan committee shall meet at least twice monthly. Within 120 days of the effective date of this ORDER, the Bank's loan committee shall include a majority of directors who are "independent." For purposes of this ORDER, "independent" is defined as that term is defined in paragraph 4 hereof, except that the new chief executive officer shall be considered "independent" for the purpose of this paragraph. The loan committee shall, at a minimum, perform the following functions:

       (a) Evaluate, grant, and/or approve loans in accordance with the Bank's loan policy amended to comply with this ORDER. The loan committee shall provide a thorough written explanation of any deviations from the loan policy, which statement shall address how said exceptions are in the Bank's best interest and which shall be reflected in the minutes of the corresponding committee meeting.
       (b) Review and monitor the status of repayment and collection of overdue and maturing loans, as well as all other loans that were classified "Substandard" in the FDIC's Report of Examination as of April 20, 1991, or that are included on the Bank's internal watch list.
       (c) Review and give prior written approval for all advances, renewals or extensions of credit to any borrower or the borrower's related interests when the aggregate volume of credit extended to the borrower and the borrower's related interests exceeds $50,000. For the purposes of this ORDER the term "related interest" is defined pursuant to section 215.2(k) of Regulation O of the Board of Governors of the Federal Reserve System, ("Regulation O") 12 C.F.R. § 215.2(k).
       (d) Maintain written minutes of the committee meetings which include a record of the review and status of the aforementioned loans. Such committee meeting minutes shall be made available at the Bank's next board of directors' meeting.

   [.8] 8. As of the effective date of this ORDER, the Bank shall eliminate from its books, by charge-off or collection, all assets or portions of assets classified "Loss" as of April 20, 1991, that have not been previously collected or charged off. Elimination or reduction of these assets with the proceeds of other Bank extensions of credit is not considered collection for the purpose of this paragraph.

[.9] 9. (a) Within 19 days from the effective date of this ORDER, the Bank shall replenish its allowance for loan and lease losses ("ALLL") by an expense entry in an amount equal to those loans required to be charged off by paragraph 8 of this ORDER.
   (b) Within 30 days from the effective date of this ORDER, the Bank shall make an additional provision for loan and lease losses which, after review and consideration by the board of directors, reflects the potential for further losses in the remaining loans or leases classified "Substandard" and all other loans and leases in its portfolio. At a minimum, the ALLL shall equal at least 2.5 percent of total loans.
   (c) Within 30 days from the effective date of this ORDER, Reports of Condition and Income required by the FDIC and filed by the Bank subsequent to April 20, 1991, shall be amended and refiled to the extent that they do not reflect all provisions taken for loan losses and an ALLL which are adequate considering the condition of the Bank's loan portfolio, and which, at a minimum, incorporate the adjustments required by the above paragraphs of this ORDER.
   (d) Prior to submission or publication of all Reports of Condition and Income required by the FDIC after the effective date of this ORDER, the board of directors of the Bank shall review the adequacy of the Bank's ALLL and accurately report the same. The minutes of the board meeting at which such review is undertaken shall indicate the findings of the review, the amount of increase in the reserve recommended, if any, and the basis for determination of the amount of reserve provided.

[.10] 10. (a) Within 60 days from the ef- {{11-30-91 p.C-1456}}fective date of this ORDER, and annually thereafter, the board of directors of the Bank shall review the Bank's loan policy and procedures for adequacy and, based upon this review, shall make all appropriate revisions to the policy necessary to strengthen lending procedures and abate additional loan deterioration. The revised written loan policy and any subsequent modifications shall be submitted to the Regional Director and Commissioner for review and comment.
   (b) The initial revisions to the Bank's loan policy required by this paragraph, at a minimum, shall include provisions:

       (i) addressing acceptable qualifications for real estate appraisers as set out in BL-40-87 dated December 14, 1987 (Guidelines for Real Estate Appraisal Policies and Review Procedures), and establishing review and monitoring provisions for compliance with the FDIC's regulation on appraisals, 12 C.F.R. Part 323.
       (ii) establishing review and monitoring procedures to ensure that all lending personnel are adhering to the established procedures and that the directorate is receiving timely and fully documented reports.
       (iii) requiring that all extensions of credit originated or renewed be supported by current credit information; collateral documentation, including lien searches and the perfection of security interests; have a clearly defined and stated purpose; and have a predetermined and realistic repayment source and schedule; and requiring that such documentation shall include current financial information, profit and loss statements or copies of tax returns and cash flow projections, and shall be maintained throughout the term of the loan with loan officer notations and comments.
       (iv) requiring loan committee review and monitoring of the status of repayment and collection of overdue and maturing loans, as well as those loans which were classified "Substandard" in the FDIC Report of Examination as of April 20, 1991.
       (v) requiring the establishment and maintain of a loan grading system and internal loan watch list.
       (vi) requiring a written plan to lessen the risk position in each line of credit identified as a problem credit on the Bank's internal loan watch list.
       (vii) prohibiting the capitalization of interest or loan related expenses unless the board of directors provides, in writing, a detailed explanation of why said deviation is in the best interest of the Bank.
       (viii) requiring prior written approval by the Bank's loan committee for any extension of credit, renewal or disbursement in an amount which when aggregated with all other extensions of credit to that person and related interests of that person, exceeds $50,000. For the purpose of this paragraph "related interest" is defined as that term is defined in section 215.2(k) of Regulation O, 12 C.F.R. § 215.2(k).
       (ix) requiring a nonaccrual policy in accordance with the Federal Financial Institutions Examinations Council's ("FFIEC") instructions for the consolidated Reports of Condition and Income.
       (x) requiring accurate reporting of past due loans to the loan committee on at least a monthly basis.
       (xi) establishing standards for extending unsecured credit.
       (xii) incorporating limitations on the amount that can be loaned in relation to established collateral values, including the requirement that the source of the valuations be identified and which require that such collateral valuations shall be completed prior to the disbursement of loan proceeds and shall be performed on a periodic basis over the term of the loan.
       (xiii) establishing standards for the institution of collection efforts by the loan officer or legal counsel, and procedures to ensure timely recognition of loss through charge-off, where appropriate.
       (xiv) establishing limitations on the maximum volume of loans in relation to total assets.
       (xv) establishing officer lending limits and limitations on the aggregate level of credit to any one borrower which can be granted without the prior approval of the Bank's loan committee.
       (c) Within 30 days after the receipt of
    {{11-30-91 p.C-1457}}any comments from the Regional Director or Commissioner and after the adoption of any recommended changes the board of directors shall approve and implement the written loan policy and/or any subsequent modification thereto. The approvals shall be recorded in the minutes of a board of directors' meeting.

   [.11] 11. Within 90 days from the effective date of this ORDER, the Bank shall formulate and submit to the Regional Director and Commissioner for review and comment, a written plan to reduce the Bank's risk position in each asset in excess of $50,000 which is classified "Substandard" in the FDIC's Report of Examination of April 20, 1991. Such plan shall include, but not be limited to, the following:
       (a) Dollar levels to which the Bank shall reduce each asset within 6 and 12 months from the effective date of this ORDER; and
       (b) Provisions for the submission of monthly written progress reports to the Bank's board of directors for review and notation in minutes of the meetings of the board of directors. As used in this paragraph, "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 or Commissioner.

[.12] 12. (a) As of the effective date of this ORDER, the Bank shall not extend, directly or indirectly, any additional credit to, or for the benefit of, any borrower who is already obligated in any manner to the Bank on any extensions of credit, including any portion thereof, that has been charged off the books of the Bank so long as such credit remains uncollected.
   (b) As of the effective date of this ORDER, the Bank shall not extend, directly or indirectly, any additional credit to, or for the benefit of, any borrower whose loan or other credit has been classified "Substandard" or is listed for Special Mention and is uncollected unless the Bank's board of directors has adopted, prior to such extension of credit, a detailed written statement giving the reasons why such extension of credit is in the best interest of the Bank. A copy of the statement shall be placed in the appropriate loan file and shall be included in the minutes of the applicable board of directors' meeting.

   [.13] 13. During the life of this ORDER, the Bank shall not increase its total assets by more than 3 percent during any consecutive three-month period without first providing, at least 30 days prior to its implementation, a growth plan to the Regional Director and Commissioner. Such growth plan shall include the funding source to support the projected growth, as well as the anticipated use of funds. This growth plan shall not be implemented without the prior written consent of the Regional Director and Commissioner. In no event shall the Bank increase its total assets by more than 10 percent annually. For the purpose of this paragraph, "total assets" has the meaning ascribed to that term by the FFIEC's Instructions for the Consolidated Reports of Condition and Income.

   [.14] 14. Within 60 days from the effective date of this ORDER, the Bank shall eliminate and/or correct all violations of law, and/or regulations described on pages 6-b and 6-b-1 of the FDIC Report of Examination as of April 20, 1991. In addition, the Bank shall implement procedures to ensure future compliance with all applicable laws and regulations.

   [.15] 15. Within 90 days from the effective date of this ORDER, the Bank shall correct all deficiencies in the loans listed for "Special Mention" on pages 2-b and 2-b-1 in the FDIC Report of Examination as of April 20, 1991.

   [.16] 16. Within 120 days from the effective date of this ORDER, the Bank shall correct the technical exceptions listed on pages 2-c through 2-c-3 in the FDIC Report of Examination as of April 20, 1991.

[.17] 17. (a) Within 90 days from the effective date of this ORDER the Bank shall formulate and submit to the Regional Director and Commissioner for review and comment a written plan addressing asset/ liability management and rate sensitivity objectives. Annually thereafter during the life of this ORDER, the Bank shall review this plan for adequacy and, based upon such review, shall make appropriate revisions in the plan that are necessary to strengthen funds management procedures. The revised plan shall also be submitted to the Regional Director and Commissioner for review and comment. The initial plan shall include, at a minimum, provisions:

       (i) requiring the definition of and measurement of interest rate sensitive as- {{11-30-91 p.C-1458}}sets and liabilities at various time frames including, at a minimum, six months and one year;
       (ii) setting forth tolerance ranges for interest rate risk exposure;
       (iii) requiring monthly board reports of the Bank's rate sensitivity position. Such reports shall, at a minimum identify the ratios of rate sensitive assets less rate sensitive liabilities to total assets at the six month and one year time horizons; and
       (iv) identifying strategies for obtaining and maintaining a more balanced rate sensitivity position.
   (b) Within 30 days of the receipt of all such comments from the Regional Director or Commissioner, and after consideration of all such comments (and after the adoption of any recommended changes), the Bank shall approve and implement the plan. The approval shall be recorded in the minutes of the board of directors' meeting.

   [.18] 18. Within 120 days from the effective date of this ORDER, the Bank shall implement and maintain an effective system of independent internal and external audit, and internal controls. Such system shall eliminate the audit and internal routine and control exceptions noted in the FDIC Report of Examination as of April 20, 1991. The independent external audit system shall include a program that requires an annual audit of the Bank's financial statements by a new and qualified independent public accountant acceptable to the Regional Director and Commissioner. Such annual audit shall be of sufficient scope to enable the auditor to express an opinion on the Bank's financial statements as to their presentation in accordance with generally accepted accounting principle.

[.19] 19. (a) Within 60 days from the date of the employment of a new chief executive officer, the Bank shall formulate a written profit plan and a realistic, comprehensive budget for all categories of income and expense for calendar year 1992 and each calendar year thereafter while this ORDER is in effect. The plan required by this paragraph shall contain formal goals and strategies, consistent with sound banking practices, to reduce discretionary expenses and to improve the Bank's overall earnings and shall contain a description of the operating assumption that form the basis for major projected income and expense components.
   (b) The plan and budget required by this paragraph, upon completion, shall be submitted to the Regional Director and Commissioner for review comment. Within 30 days of the receipt of all such comments from the Regional Director and Commissioner and after consideration of all such comments the Bank shall approve and implement the plan. The approval shall be recorded in the minutes of the board of directors' meeting.
   (c) Prior to the end of each calendar quarter, the Bank's board of directors shall evaluate the Bank's actual performance in relationship to the plan and budget required by this paragraph and record the results of the evaluation, and any actions taken by the Bank, in the minutes of the board of directors' meeting at which such evaluation is undertaken.
   (d) The written profit plan and budget required by this ORDER shall be prepared and submitted for review and comment 30 days prior to each calendar year for which this ORDER is in effect.

   [.20] 20. Following the effective date of this ORDER, the Bank shall send to its shareholders or otherwise furnish a description of this ORDER: (1) in conjunction with the Bank's next shareholder communication; and (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, Room G-4070, 550 17th Street, N.W., 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.

   [.21] 21. On the last day of the second month following the date of issuance of this ORDER, and every third month thereafter, the Bank shall furnish written progress reports, signed by each member of the Bank's board of directors, to the Regional Director and Commissioner detailing the form and manner of any actions taken to secure compliance with the ORDER and the results thereof. Such reports may be discontinued when the corrections required by this OR- {{4-30-94 p.C-1459}}DER have been accomplished and the Regional Director and Commissioner have, in writing, released the Bank from making further reports.
   The effective date of this ORDER shall be ten (10) days after its issuance by the FDIC.
   The provisions of this ORDER shall be binding upon the Bank, its institution-affiliated parties, and its successors and assigns.
   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.
   Dated: September 13, 1991.
   Pursuant to delegated authority.

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