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{{4-30-93 p.C-1811}}
   [10,416] In the Matter of Robert D. Nellis, The Exchange State Bank, Douglass, Kansas, Docket No. FDIC-91-391b (12-30-91).

   Respondent to cease and desist from unsafe or unsound banking practices and to notify FDIC, and meet certain conditions, if he becomes an institution-affiliated party again.

   [.1] Institution-Affiliated Party—Prior Notice to FDIC
   [.2] Regulation O—Compliance Required

In the Matter of
ROBERT D. NELLIS,
Individually and as an
Institution-Affiliated Party of
THE EXCHANGE STATE BANK
DOUGLASS, KANSAS
(Insured State Nonmember Bank)
ORDER TO CEASE
AND DESIST

   Robert D. Nellis ("Respondent"), having been advised of his right to a NOTICE OF CHARGES AND OF HEARING detailing the unsafe or unsound banking practices and/or violations of law, rule and/or regulation alleged to have been committed by the Respondent, individually and as an institution-affiliated party, in his capacity as director, officer and person participating in the conduct of the affairs of the Exchange State Bank. Douglass, Kansas, and of his right to a hearing on such alleged charges under section 8(b) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818(b), 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 TO CEASE AND DESIST ("CONSENT AGREEMENT") with a representative of the Legal Division of the Federal Deposit Insurance Corporation ("FDIC"), dated July 1, 1991, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices and/or violations of law, and/or regulation, the Respondent 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 Respondent had engaged in unsafe or unsound banking practices and/or had violated laws, rules and/or regulations. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER TO CEASE AND DESIST

   IT IS HEREBY ORDERED, that Respondent shall take affirmative action as follows:

   [.1] 1. In the event Respondent is about to become an institution-affiliated party, as {{4-30-93 p.C-1812}}that term is defined in section 3(u) of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(u), Respondent shall submit the following in writing to the FDIC's Regional Director (Division of Supervision) of the FDIC Region in which the insured depository institution, as that term is defined in section 3(c)(2) of the Act, 12 U.S.C. § 1813(c)(2), is located ("Regional Director") at least 30 days prior to actually serving as an institution-affiliated party:

       (a) the name and location of the insured depository institution;
       (b) a detailed explanation of Respondent's position and responsibilities; and
       (c) evidence that Respondent has, or will have, complete coverage under the insured depository institution's blanket bond in the event Respondent will serve as a director, officer or employee of the insured depository institution, or in any other capacity which customarily comes within the coverage of the said blanket bond.
       2. (a) At all times that he is serving in any position described in paragraph 1(c) of this ORDER, Respondent shall have and maintain blanket bond insurance.
       (b) In the event coverage of Respondent under any insured depository institution's blanket bond is terminated while serving in any position described in paragraph 1(c) of this ORDER, Respondent shall immediately notify the Regional Director of such termination.

   [.2] 3. Respondent shall not violate applicable laws, rules, or regulations, including but not limited to insider-related laws and regulations such as Federal Reserve Regulation O, 12 C.F.R. Part 215, and sections 23A and 23B of the Federal Reserve Act, 12 U.S.C. §§ 371c and 371c-1, respectively.
   This ORDER shall become effective ten (10) days from the date of its issuance. 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 this 30th day of December, 1991.
   Pursuant to delegated authority.

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