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FDIC Enforcement Decisions and Orders

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{{1-31-92 p.C-1659}}
   [10,381] In the Matter of Ronald B. Waston and Patricia A. Watson, North Platte Trust Company, North Platte, Nebraska, Docket No. FDIC-91-71e (11-14-91).

   Respondents 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
RONALD B. WATSON AND
PATRICIA A.
WATSON
, individually, and as
officers, directors and/or persons
participating in the conduct of
the affairs of
NORTH PLATTE TRUST COMPANY
NORTH PLATTE, NEBRASKA
(Insured State Nonmember Bank Voluntarily Liquidated)
ORDER OF PROHIBITION FOR
FURTHER PARTICIPATION

   On April 18, 1991, the Federal Deposit Insurance Corporation ("FDIC") issued to Ronald B. Watson and Patricia A. Watson ("Respondents"), a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") detailing the unsafe or unsound banking practices, and/ or breaches of fiduciary duty alleged to have been committed by Respondents individually and in their capacity as directors, officers and persons participating in the conduct of the affairs of North Platte Trust Company, North Platte, Nebraska ("Bank"), alleging also that by reason of the same (i) the Bank has suffered substantial financial loss or other damage; (ii) the interests of the Bank's depositors have been seriously prejudiced; and (iii) the Respondents have received financial gain and which involve personal dishonesty on the part of Respondents' willful or continuing disregard for the safety or soundness of the Bank; and further detailing Respondents' 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 the FDIC's Rules of Practice and Procedure, 56 Fed. Reg. 37,968 (1991) (to be codified as 12 C.F.R. Part 308).
   Thereafter, Respondents waived those hearing rights and entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION
{{1-31-92 p.C-1660}}FOR FURTHER PARTICIPATION ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, dated August 8, 1991, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices, Respondents 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:

       (a) The Bank is "State nonmember bank" as that term is defined in section 3(e)(2) of the Act, 12 U.S.C. § 1813(e)(2), and pursuant to section 3(q)(3) of the Act, 12 U.S.C. § 1813(q)(3), the FDIC is the "appropriate Federal banking agency" to issue an order under section 8(e) of the Act, 12 U.S.C. § 1818(e), against the Respondents;
       (b) Respondents have engaged or participated in unsafe or unsound banking practices and/or breaches of their fiduciary duty as directors, officers or persons participating in the conduct of the affairs of the Bank;
       (c) By reason of such practices and/or breaches of fiduciary duty, (i) the Bank has suffered substantial financial loss or other damage, and (ii) the interests of the Bank's depositors could have been seriously prejudiced; and
       (d) Such practices and/or breaches of fiduciary duty demonstrated Respondents' continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined that such practices and breaches of fiduciary duty demonstrate Respondents' unfitness to serve or act as an institution-affiliated party of any insured depository institution, as defined in section 3(u) of the Act, 12 U.S.C. § 1813(u). The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   [.1]1. IT IS HEREBY ORDERED that, except with prior written consent obtained in accordance with section 8(e)(7)(B) of the Act, Respondents shall not continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of, any institution or agency described in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), including:

       (a) Any insured depository institution, as defined in section 3(c) of the Act, 12 U.S.C. § 1813(c);
       (b) Any institution treated as an insured bank under section 8(b)(3) or 8(b)(4) of the Act, 12 U.S.C. §§ 1818(b)(3) and (4), including, without limitation: (i) any bank holding company other; (ii) any subsidiary of a bank holding company other than a bank; (iii) any foreign bank that maintains a branch or agency in a state; (iv) any foreign bank or foreign company controlling a foreign bank that controls a commercial lending company organized under state law; and (v) any company of which any foreign bank or company referred to in items (iii) and (iv) of this paragraph 1(b) is a subsidiary;
       (c) Any institution treated as a savings association section 8(b)(8) of the Act, 12 U.S.C. § 1818(b)(8), including, without limitation: (i) any holding company of a savings association; (ii) any subsidiary of such service corporation, whether wholly or partly owned;
       (d) Any insured credit union under the Federal Credit Union Act;
       (e) Any institution chartered under the Farm Credit Act of 1971;
       (f) Any appropriate Federal depository institution regulatory agency;
       (g) The federal housing finance Board and any Federal home loan bank; and
       (h) The Resolution Trust Corporation.
   [.2]2. IT IS FURTHER ORDERED that, except with prior written consent obtained in accordance with section 8(e)(7)(B) of the Act, Respondents shall not:
       (a) Solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in any institution described in section 8(e)(7)(A) of the Act;
       (b) Violate any voting agreement previously approved by the appropriate Federal banking agency; or
       (c) Vote for a director of any institution described in section 8(e)(7)(A) of the Act, or serve or act as an institution-affiliated party.
   This ORDER shall become effective 10 days after the date of its issuance.
{{7-31-95 p.C-1661}}The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provision of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC
   Pursuant to delegated authority.
   Dated this 14th day of November, 1991.

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