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FDIC Enforcement Decisions and Orders

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{{11-30-91 p.C-1501}}
   [10,342] In the Matter of Peter P. McCormack, North Ridge Bank, Oakland Park, Florida, Docket No. FDIC-91-134e (9-26-91).

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without the prior consent of the FDIC.

   [.1] Prohibition—Participation in Conduct of Affairs
   [.2] Prohibition—Exercise of Voting Rights

In the Matter of
PETER P. MCCORMACK,
individually,
and as a former officer, director,
person participating in the
conduct of the affairs, and
institution-affiliated party of
NORTH RIDGE BANK
OAKLAND, FLORIDA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION

   Peter P. McCormack ("Respondent"),
{{11-30-91 p.C-1502}}having received a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing unsafe or unsound banking practices, violations of laws and regulations and breaches of fiduciary duty alleged to have been engaged in by the Respondent individually, and as a director, an officer, a person participating in the conduct of the affairs and an institution-affiliated party of North Ridge Bank, Oakland Park, Florida ("Bank"), which have resulted in financial loss or other damage to the Bank, and which demonstrate the Respondent's continuing disregard for the safety and soundness of the Bank; and having been further advised of his right to a hearing on the alleged charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(e), and Part 308 of the FDIC's Rules of Practice and Procedures, 12 C.F.R. Part 308; and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, dated July 30, 1991, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices, violations of laws and regulations or breaches of fiduciary duty alleged in the NOTICE, Respondent consented to the issuance of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
   The FDIC considered the matter and determined it had reason to believe that Respondent has engaged or participated in unsafe or unsound banking practices, violations of laws and regulations and breaches of fiduciary duty as a director, an officer, a person participating in the conduct of the affairs and an institution-affiliated party of the Bank, that by reason of such practices, violations and breaches the Bank has sustained financial loss or other damage, and that such practices, violations and breaches demonstrate Respondent's continuing disregard for the safety and soundness of the Bank.
   The FDIC further determined that such practices, violations and breaches demonstrate Respondent's unfitness to serve as a director, an officer, a person participating in the conduct of the affairs or an institution-affiliated party of the Bank, or any other insured depository institution, or agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A)(1989). The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER

   [.1] 1. IT IS HEREBY ORDERED, that the Respondent shall not participate in any manner in the conduct of the affairs of the Bank or any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A)(1989), without the prior written consent of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).

   [.2] 2. IT IS FURTHER ORDERED, that the Respondent shall not solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in the Bank or any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), without the prior written consent of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).
   3. IT IS FURTHER ORDERED, that the Respondent shall not violate any voting agreement with respect to any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), previously approved by the appropriate Federal financial institutions regulatory, without the prior written consent of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).
   4. IT IS FURTHER ORDERED, that the Respondent shall not vote for a director, or serve or act as an institution-affiliated party, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), of the Bank or any insured depository institution, agency, or organization, enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), without the prior written consent of the FDIC and the appropriate Federal financial institutions regulatory agency,
{{5-31-95 p.C-1503}}as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).
   This ORDER shall become effective ten days after issuance by the FDIC. The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provision of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
   Dated at Washington, D.C., this 26th day of September, 1991.
   Pursuant to delegated authority.

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