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FDIC Enforcement Decisions and Orders

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{{8-31-94 p.C-1861}}
   [10,425] In the Matter of The Greater New York Savings Bank, Brooklyn, New York, Docket No. FDIC-92-25b (1-27-92).

   Bank to cease and desist from such unsafe or unsound practices as operating with management whose policies are detrimental to the Bank; operating with inadequate capital; failing to establish and follow adequate lending policies; operating with excessive volumes of adversely classified assets; following hazardous lending and lax collection practices; operating with an excessive level of nonperforming assets; operating without adequate reserve for loan losses; and operating so as to produce inadequate earnings. (This order was terminated by order of the FDIC dated 6-6-94; see ¶ 15,874.)

   [.1] Assets—Adversely Classified—Eliminate/Reduce
   [.2] Loan Loss Reserve—Establish/Maintain
   [.3] Loans—Extensions of Credit—Existing Borrowers—Curtail
   [.4] Problem Assets—Individual Written Plans Required
   [.5] Problem Assets—Review by Board of Directors Required
   [.6] Lending and Collection Policy—Minimum Requirements
   [.7] Strategic Plan—Preparation Required
   [.8] Capital—Increase/Maintain—Methods—Written Plan Required
   [.9] Capital Plan—Quarterly Progress Reports
   [.10] Dividends—Restricted
   [.11] Management—Qualifications—Review
   [.12] Management—Duties of CEO, Lending Officer
   [.13] Board of Directors—Committee to Evaluate Management
   [.14] Shareholders—Disclosure—Cease and Desist Order
   [.15] Board of Directors—Committee to Review Compliance with Cease and Desist Order
   [.16] Compliance Reports—Frequency

In the Matter of

THE GREATER NEW YORK
SAVINGS BANK

BROOKLYN, NEW YORK
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-92-25b

   The Greater New York Savings Bank, Brooklyn, New York ("Bank"), having been advised of its right to a Notice of Charges and of Hearing detailing the unsafe or unsound banking practices alleged to have been committed by the Bank and of its right to a hearing on such alleged 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 January 27, 1992, whereby, solely for the purpose of this proceeding and without admitting or denying the alleged charges of unsafe or unsound banking practices, 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 had engaged in unsafe or unsound banking practices. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER TO CEASE AND DESIST

   IT IS HEREBY ORDERED, that The Greater New York Savings Bank, Brooklyn, New York, its successors, assigns, directors, officers, employees, agents, and other "institution-affiliated parties", as defined in section 3(u) of the Act, 12 U.S.C. § 1813(u),
{{8-31-94 p.C-1862}}CEASE AND DESIST from the following unsafe or unsound banking practices:
   (a) Operating the Bank will management policies and practices which are detrimental to the Bank;
   (b) Operating the Bank with a level of Tier 1 capital which is inadequate in relation to the kind and quality of its assets;
   (c) Failing to establish and follow adequate lending policies;
   (d) Operating the Bank with an excessive level of adversely classified assets;
   (e) Engaging in hazardous lending and lax collection practices;
   (f) Operating the Bank with an excessive level of past-due and nonperforming assets;
   (g) Failing to provide an adequate reserve for loan and lease losses; and
   (h) Operating the Bank in such a manner as to produce unsatisfactory earnings.
   IT IS FURTHER ORDERED, that The Greater New York Savings Bank, Brooklyn, New York, its successors, assigns, directors, officers, employees, agents, and other institution-affiliated parties, take AFFIRMATIVE action as follows:

   [.1] 1. (a) Within 10 days from the effective date of this ORDER, the Bank shall eliminate from its books, by collection, charge-off, or other proper entry, all assets or portions of assets classified "Loss" and 50 percent of all assets or portions of assets classified "Doubtful" by the FDIC or the New York State Banking Department ("NYSBD") as a result of their examinations of the Bank as of April 1, 1991, and March 31, 1991, respectively, which have not been previously charged off or collected, provided, however, that prior to the effective date of this ORDER, the Bank may submit to the Regional Director and the Superintendent of Banks of the New York State Banking Department ("Superintendent") a list of those assets or portions of assets which it believes should not be charged off and a comprehensive discussion of the circumstances surrounding each such asset or portion of an asset. The Bank shall eliminate from its books all of said listed assets or portions of assets not later than 30 days from the effective date of this ORDER, unless the Regional Director and the Superintendent both issue written statements of nonobjection to the Bank's retaining any such asset or portion thereof, in which case the Bank may, subject to such conditions and limitations as the Regional Director or the Superintendent require, retain any such asset or portion of an asset on its books. In addition, and so long as this ORDER remains in effect, the Bank shall, within 30 days of the receipt of any subsequent Report of Examination of the Bank from the FDIC or the NYSBD, eliminate from its books, by collection, charge-off, or other proper entry, all assets or portions of assets classified "Loss" and 50 percent of all assets or portions of assets classified "Doubtful" in said Report of Examination. Elimination of these assets through the use of proceeds of loans or other extensions of credit made by the Bank does not constitute collection for the purposes of this paragraph 1(a).
   (b) By not later than June 30, 1992, the Bank shall reduce the remaining total of all assets classified "Doubtful" and "Substandard" by the FDIC or the NYSBD as a result of their examinations of the Bank as of April 1, 1991, and March 31, 1991, respectively, to not more than 150 percent of total equity capital and reserves and, subsequently, the Bank shall reduce the total of such assets to not more than 100 percent of total equity capital and reserves by not later than June 30, 1993.
   (c) The requirements of paragraph 1(b) shall not be construed as a standard for future operations of the Bank. In addition to accomplishing the foregoing schedule of reductions, the Bank shall eventually reduce all adversely classified assets of the Bank.
   (d) As used in paragraphs 1(b) and 1(c) of this ORDER, the word "reduce" means (1) to collect, (2) to charge off or eliminate by other proper entry, or (3) to improve the quality of adversely classified assets sufficiently to warrant removing any adverse classification, as determined by the FDIC and the NYSBD. Reduction of these assets through the use of the proceeds of loans or other extensions of credit made by the Bank, other than loans or other extensions of credit to third party borrowers which improve the quality of these assets sufficiently to warrant removing any adverse classification, as determined by the FDIC and the NYSBD, does not constitute collection for the purposes of paragraphs 1(b) and 1(c) of this ORDER.

{{3-31-91 p.C-1863}}
   [.2] 2. (a) Within 30 days from the effective date of this ORDER, the Bank's board of directors shall adopt a method of computing the balance of the Bank's reserve for loan and lease losses that gives consideration to the volume and composition of the loan portfolio not subject to criticism, as well as to the volume and composition of assets which are subject to criticism, whether by any bank regulatory agency or by the Bank as a result of its internal reviews of assets. Thereafter, the Bank's board of directors shall, during the first month of each quarter, reevaluate the reserve for loan and lease losses and make such additional provisions for loan and lease losses that are, in the judgement of the board, necessary to maintain the reserve at an adequate level relative to the volume of risk of the Bank's loan portfolio. All such additional provisions for loan and lease losses shall be made in the first month of the calendar quarter in which the deficiency in the reserve is identified, but as of the end of the preceding calendar quarter, and shall be reflected in the Report of Condition and the Report of Income filed in the calendar quarter in which the deficiency in the reserve is identified. The minutes of the board of directors of the bank shall reflect that such reevaluation has been performed, and documentary proof of the method employed in determining the level of the reserve shall be maintained for future regulatory review.
   (b) All increases in the reserve for loan and lease losses, with the exception of recoveries credited directly to the reserve, shall be accomplished by charges to operating earnings through the provision for loan and lease losses.

   [.3] 3. (a) Immediately upon the effective date of this ORDER, and notwithstanding any other provision of this ORDER, the Bank shall not extend, either directly or indirectly, any new or additional credit (which, for the purposes of this ORDER, shall include the granting of renewals or extensions, or the capitalizing of accrued interest), other than for taxes, insurance, and routine maintenance, to or for the benefit of any borrower who is obligated in any manner to the Bank on any extension of credit, or portion thereof, which has been charged off the books of the Bank in whole or in part, or to any affiliate or related interest of, or other person or entity associated with, any such borrower ("charged-off borrower"), so long as any portion of such extension of credit, whether or not that portion was charged off, remains uncollected.
   (b) Immediately upon the effective date of this ORDER, the Bank shall not extend, directly or indirectly, any new or additional credit, other than for taxes, insurance, and routine maintenance, to or for the benefit of any borrower who is obligated in any manner to the Bank on any loan or other extension of credit that has been adversely classified, in whole or in part, by the FDIC or the NYSBD as a result of their examinations of the Bank as of April 1, 1991, and March 31, 1991, respectively, or as a result of any subsequent examination of the Bank by the FDIC or the NYSBD, or to any affiliate or related interest of, or other person or entity associated with, any such borrower ("classified borrower"), so long as such loan or other extension of credit remains classified or uncollected. This paragraph 3(b) shall not prohibit the Bank from renewing all or any part of an extension of credit to a classified borrower, after collection in cash of interest due on the entire extension of credit.
   (c) The prohibitions of paragraph 3(a) and 3(b) shall not apply to any extension of credit to a charged-off or classified borrower, if:

       (i) the Bank's failure to extend further credit to a charged-off or classified borrower would be substantially detrimental to the best interests of the Bank;
       (ii) the extension of credit fully complies with the requirements of the Bank's written lending and collection policies and procedures which have been revised, adopted, and implemented pursuant to paragraph 6 of this Order;
       (iii) any extension of credit, regardless of amount, with respect to any problem asset, as defined in paragraph 4 of this ORDER, is supported by a current appraisal which at a minimum complies in all respects with the requirements of Part 323 of the FDIC's Rules and Regulations, 12 C.F.R. Part 323;
       (iv) a comparison with the written program adopted pursuant to paragraph
    {{3-31-91 p.C-1864}}4 of this ORDER shows that the Bank's formal program to eliminate the basis of criticism of said problem asset is not compromised; and,
       (v) prior to extending any credit to a charged-off borrower, or to a classified borrower whose outstanding loans or other extensions of credit exceed $250,000, a majority of the Bank's full board of directors approves the extension of credit and certifies, in writing, the specific reasons why failure to so act would be substantially detrimental to the best interests of the Bank. A copy of the board of directors's certification shall be maintained in the credit file of the charged-off or classified borrower, and shall also be submitted promptly to the Regional Director and the Superintendent.
   (d) For the purposes of this ORDER, the term "related interest" shall have the meaning ascribed to it by 12 C.F.R. § 215.2(k).

   [.4] 4. Within 60 days from the effective date of this ORDER, the Bank's board of directors shall adopt and implement a written program for each problem asset. Subsequent to the effective date of this ORDER, within 30 days after any asset of the Bank becomes a problem asset, the board of directors of the Bank shall adopt and implement a written program for each such problem asset. For the purposes of this ORDER, a "problem asset" means any asset (including any unfunded commitment) which exceeds $2,000,000 and:

       (a) has been adversely classified or listed for Special Mention by the FDIC or the NYSBD as a result of their examinations of the Bank as of April 1, 1991, and March 31, 1991, respectively, or is adversely classified or listed for Special Mention by either the FDIC or the NYSBD as a result of any subsequent examination of the Bank; or
       (b) has been accorded a sub-investment quality rating and/or has been designated a work-out or watch list asset, or some equivalent designation, as the result of an internal asset review and rating procedure performed by the Bank or by another party on behalf of the Bank; or
       (c) is past due in excess of 120 days and/or has been placed in either a nonaccrual or nonearning status by the Bank; or
       (d) has been partially charged off.
   Such program shall include, at a minimum, an assessment of the status of each problem asset, the proposed action to eliminate the cause or causes of the asset's being a problem asset, and the time frame for its accomplishment. Once adopted, a copy of each program shall be forwarded to the Regional Director and the Superintendent.

   [.5] 5. (a) The Bank's board of directors shall conduct a review of each program adopted pursuant to paragraph 4 of this ORDER at least once in each month, to determine:

       (i) the status of each problem asset;
       (ii) management's adherence to each written program;
       (iii) the status and effectiveness of each written program; and
       (iv) the need to revise each written program and/or take other actions.
   The results of such review shall be included in the minutes of the Bank's board of directors.
   (b) The board shall send quarterly progress reports to the Regional Director and the Superintendent on the status of each problem asset equal to or exceeding $5,000,000 together with the progress reports required pursuant to paragraph 17 of this ORDER, and shall include in such reports a general summary of the programs for problem assets which do not exceed $5,000,000.

   [.6] 6. Within 60 days from the effective date of this ORDER, the Bank's board of directors shall revise its written lending and collection policies and procedures to provide effective guidance and control over the lending function of the Bank and shall submit said revised policies and procedures to the Regional Director and the Superintendent. At a minimum, said policies and procedures shall include the following:
   (a) Standards for all applications for credit which shall include, at a minimum:

       (i) financial statement requirements;
       (ii) credit analysis requirements;
       (iii) loan purpose statement requirements;
       (iv) identification of repayment sources (primary and secondary);
       (v) realistic repayment plan requirements;
       (vi) collateral requirements; and
    {{3-31-91 p.C-1865}}(vii) documentation requirements.
   (b) Effective loan administration, servicing and collection procedures including, at a minimum:
       (i) establishing lending limits for specific officers and loan amounts requiring board of directors approval;
       (ii) establishing appropriate control and periodic review of collateral;
       (iii) setting forth requirements for maintaining current information, including financial data, in credit files;
       (iv) establishing appraisal and inspection standards, and guidelines for performing reappraisals and reinspections which, at a minimum, comply with the requirements of Part 323 of the FDIC's Rules and Regulations;
       (v) standardizing follow-up procedures on maturing and delinquent loans; and
       (vi) ensuring that delinquencies are accurately reported to the board of directors on a monthly basis.
   (c) A loan review system which will effectively identify, categorize, and report problem credits to the board of directors. Such reports shall, at a minimum, include the following information:
       (i) the overall quality of the loan portfolio;
       (ii) the identification, type and amount of problem loans;
       (iii) the identification and amount of delinquent loans;
       (iv) credit and collateral documentation exceptions; and
       (v) the identification and status of violations of law or regulations.
   Upon receipt of written approval or a written statement of nonobjection from the Regional Director and the Superintendent, said policies and procedures shall be forthwith adopted and implemented by the Bank's board of directors.

   [.7] 7. (a) Within 90 days from the effective date of this ORDER, the board of directors of the Bank shall submit to the Regional Director and the Superintendent a Strategic Plan ("Plan"), covering at least a three-year period. As a minimum, the Plan shall establish objectives for the Bank's earnings performance, growth, balance sheet mix, liability structure, capital adequacy, and reduction in the volume of nonperforming and underperforming assets, together with strategies for achieving those objectives. The Plan shall also identify capital, funding, managerial, and other resources needed to accomplish its objectives.
   (b) The Plan required by paragraph 7(a) of this ORDER shall also specifically provide that the Bank shall not engage in nor shall it permit any subsidiary to engage in any new construction lending (other than loans for constructing one-to-four family units which are already subject to a legally binding contract of sale on the date of the commitment), any new commercial business lending which is related to real estate development activities, and any new cooperative housing lending (other than owner-occupied cooperative unit loans), unless:

       (i) Such new lending is subject to a legally binding commitment which is outstanding on the effective date of this ORDER; or
       (ii) Such new lending is wholly consistent with the revised lending and collection policies and procedures required by paragraph 6 and with all other provisions of this ORDER; and
       (iii) The Bank's full board of directors approves such new lending and certifies, in writing, as to its compliance, as applicable, with paragraphs 7(b)(i) or 7(b)(ii) of this ORDER.
   (c) The Bank shall submit, in conjunction with the Plan submitted pursuant to paragraphs 7(a) and 7(b) of this ORDER, financial projections for a period covering at least two years. Additionally, by the thirtieth day of each subsequent quarter, the Bank shall provide to the Regional Director and the Superintendent a detailed analysis of the extent to which the Bank has achieved the submitted projections and the reasons therefor, together with appropriate supporting documentation. By January 31st of each year, while this ORDER remains in effect, the Bank shall submit updated financial projections for the ensuing two year period.
   (d) Upon receipt of written approval or a written statement of nonobjection from the Regional Director and the Superintendent, the Plan submitted pursuant to paragraphs 7(a) and 7(b) of this ORDER
{{3-31-91 p.C-1866}}shall be forthwith adopted and implemented by the Bank's board of directors.

   [.8] 8. Within 90 days from the effective date of this ORDER, the Bank shall submit a capital plan to the Regional Director and the Superintendent, which provides for:
   (a) Recapitalizing the Bank so as to increase the ratio of its Tier 1 capital to its total assets to not less than 5.0 percent by June 30, 1992, 5.5 percent by June 30, 1993, and thereafter maintain that ratio. For the purposes of this ORDER, the terms "Tier 1 capital" and "total assets" shall have the meanings ascribed to them in Part 325 of the FDIC's Rules and Regulations, respectively, in subsections 325.2(m) and (n), 12 C.F.R. §§ 325.2(m) and (n). The ratio requirements set forth in this paragraph 8(a) are dependent upon the Bank achieving compliance with the ratio requirements of paragraph 1(b) of this ORDER. Therefore, notwithstanding the requirements set forth in this paragraph 8(a), if the Bank is not in compliance with the requirements of paragraph 1(b) of this ORDER within the time frames set forth therein, the Bank shall be required to achieve a greater ratio of Tier 1 capital to total assets. Such additional capital requirements shall be determined by the FDIC and the Superintendent, giving consideration to the asset quality and condition of the Bank at such time as the Bank is not in compliance with the requirements of paragraph 1(b) of this ORDER.
   (b) Exploring all methods and opportunities for achieving the capital ratio levels set forth in paragraph 8(a), including, but not limited to: conversion of the Bank's outstanding preferred stock to securities which constitute Tier 1 capital; asset sales; downsizing of the Bank; the sale of subsidiaries; income retention; the sale of portions of the Bank's deposits; the sale of common stock or noncumulative perpetual preferred stock without regard to any diminution in the value of stock presently held by any stockholder; merger or consolidation; private investor acquisition or investment; or any combination of the above or alternative means acceptable to the FDIC and the Superintendent. Upon receipt of a written approval or written statement of nonobjection from the Regional Director and the Superintendent, the capital plan shall forthwith be adopted and implemented.
   9. (a) If all or part of the increase in Tier 1 capital required by paragraph 8(a) of this ORDER is accomplished by the sale of new securities, the board of directors of the Bank shall forthwith adopt and implement a plan for the sale of such additional securities, including voting any shares owned or proxies controlled by them in favor of the plan. Should the implementation of the plan involve a public distribution of Bank securities (including a distribution limited only to the Bank's existing shareholders), the Bank shall prepare 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 State and 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 plan and any materials used in the sale of the securities shall be submitted to the FDIC, Registration and Disclosure Section, Washington, D.C., 20429, and to the NYSBD for review. Any changes requested to be made in the offering plan or materials by the FDIC or the NYSBD shall be made prior to their dissemination. If any part of the increase in Tier 1 capital is provided by the sale of or conversion to noncumulative perpetual preferred stock, then all terms and conditions of the issue, including but not limited to those terms and conditions relative to interest rate and any convertibility factor, shall be presented to the regional Director and the NYSBD for prior approval.
   (b) In complying with the provisions of paragraph 9(a) of this ORDER, written notice shall be provided by the Bank to any subscriber and/or purchaser of Bank securities detailing any planned or existing development or other change which is materially different from the information reflected in any offering material used in connection with the sale of Bank securities. The written notice required by this paragraph shall be furnished within 10 calendar days from the date such material development or change was planned or occurred, whichever is earlier, and shall be furnished to every purchaser and/or subscriber of Bank securities who received or {{6-30-93 p.C-1867}}was tendered the information contained in the Bank's original offering materials.

   [.9] 10. By the fifteenth day of each calendar quarter, the Bank shall provide the Regional Director and the Superintendent with a progress report, in form and content acceptable to the Regional Director and the Superintendent, discussing in detail all capital-raising alternatives explored pursuant to paragraph 8(b) of this ORDER. The progress report shall include, but not be limited to, information about third parties contacted, and other relevant information which would assist the FDIC and the NYSBD in evaluating the Bank's actions and progress in achieving and maintaining the capital ratio levels set forth in paragraph 8(a) of this ORDER.

   [.10] 11. While this ORDER is in effect, the Bank shall not declare or pay either directly or indirectly any dividends, whether in cash, stock, or otherwise, on its common stock, without the prior written consent of the Regional Director and the Superintendent.

   [.11] 12. The Bank shall have and retain sufficient qualified management and qualified staff. Each member of management and of staff shall have qualifications and experience commensurate with his or her duties and responsibilities at the Bank. The qualifications and sufficiency of management and of staff shall be assessed on their ability, commensurate with their duties and responsibilities, to:
   (a) comply with the requirements of this ORDER;
   (b) operate the Bank in a safe and sound manner;
   (c) comply with applicable laws and regulations; and
   (d) restore all aspects of the Bank to a safe and sound condition, including capital adequacy, asset quality, management effectiveness, earnings and liquidity.

   [.12] 13. (a) The aforementioned management shall include a chief executive officer who shall have specific written responsibilities and authority for managing the lending, investment, liquidity, and funds management functions, the operating procedures and systems, and the internal routine and controls of the Bank, in compliance with this ORDER and in accordance with safe and sound banking practices. The board of directors shall ensure that the chief executive officer functions as the senior officer of the Bank, responsible for the daily management and overall operations of the Bank, providing active daily supervision over the affairs of the Bank and reporting directly to the board of directors of the Bank.
   (b) The aforementioned management shall include a qualified senior lending officer with lending and collection experience who shall have specific written responsibilities and authority for implementing and maintaining the Bank's lending and collection policies and procedures.

   [.13] 14. (a) To facilitate having and retaining qualified management, the Bank's board of directors shall, within 15 days from the effective date of this ORDER, appoint a committee with at least three members, composed of directors, the majority of whom are not now and have never been involved in the daily operations of the Bank ("Outside Directors"), and whose composition is acceptable to the Regional Director and the Superintendent (the "Committee"). The Committee shall, immediately upon being appointed, undertake an in-depth analysis of the Bank's managerial requirements. This analysis shall include a review of the board of directors, its committee structure, senior management, and the overall staffing resources and needs of the Bank. The analysis shall also include a review of the composition, policies, and practices of current operating management, consideration of whether current operating management should be changed, and consideration of the terms and conditions under which current operating management should be continued.
   (b) Within 90 days from the effective date of this ORDER, the Committee shall prepare and present to the board of directors of the Bank a written report of its findings and recommendations. The board of directors of the Bank shall review the Committee's report and evaluate its current management in light of such report and shall take whatever action is necessary to implement its determinations. A copy of the Committee's report, as well as the board of directors' evaluations, determinations, and implementing actions, shall be submitted to the Regional Direc- {{6-30-93 p.C-1868}}tor and the Superintendent within 120 days from the effective date of this ORDER.
   (c) As part of the in-depth analysis conducted pursuant to paragraphs 14(a) and 14(b) of this ORDER, the Committee shall review the appropriateness of salaries, fees, bonuses, and retainers paid to directors and officers of the Bank, in the context of market criteria, the Bank's ability to pay and its overall financial condition.

   [.14] 15. Following the effective date of this ORDER, the Bank shall send to, or otherwise furnish, its shareholders 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, Washington, D.C. 24029, for review at least 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.

   [.15] 16. The Committee appointed pursuant to paragraph 14(a) of this ORDER shall monitor the Bank's compliance with this ORDER. Within 60 days from the effective date of this ORDER, and at monthly intervals thereafter, the Committee shall prepare and present to the Bank's board of directors a written report of its findings, detailing the form, content, and manner of any action taken to secure compliance with this ORDER and the results thereof, and any recommendations with respect to such compliance. Such progress reports shall be included in the minutes of the Bank's board of directors.

   [.16] 17. By the fifteenth day of each calendar quarter following the effective date of this ORDER, the Bank shall furnish written progress reports to the Regional Director and the Superintendent detailing the form, content, and manner of any actions taken to secure compliance with this ORDER, and the results thereof. Such reports shall include the Committee reports prepared pursuant to paragraph 16 of this ORDER. Such reports may be discontinued when the corrections required by this ORDER have been accomplished and the Regional Director and the Superintendent have, in writing, released the Bank from making further reports.
   The effective date of this ORDER shall be 10 days from the date of its issuance.
   The provisions of this ORDER shall be binding upon The Greater New York Savings Bank, its successors, assigns, directors, officers, employees, agents, and other institution-affiliated parties.
   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.
   Date of Issuance: January 27, 1992.
   Pursuant to delegated authority.

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