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FDIC Enforcement Decisions and Orders

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{{5-31-92 p.C-2102}}
   [10,485] In the Matter of Thomas G. Hollmig, Sabinal Bank, Sabinal, Texas, Docket No. FDIC-91-414e (3-30-92).

   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
THOMAS G. HOLLMIG, individually
and as a former officer,
director, and person
participating in the conduct
of the affairs of
SABINAL BANK
SABINAL, TEXAS
(Insured State Nonmember Bank In Receivership)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   Thomas G. Hollmig ("Respondent"), individually, and as a former officer, director, person participating in the affairs and institution-affiliated party of the former Sabinal Bank, Sabinal, Texas (the "Bank"), having been advised of his right to a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the violations of law, rule and/or regulation, unsafe or unsound banking practices, and/or breaches of fiduciary duty, by reason of which the Bank has suffered substantial financial loss or other damage and/or the interests of its depositors have been prejudiced, and which demonstrate a willful and/or continuing disregard by Respondent for the safety and soundness of the Bank. Having been further advised of his right to a hearing on the alleged charges pursuant to 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, 56 Fed. Reg. 37,968 (1991) (to be codified at 12 C.F.R. Part 308), and having waived those rights, Respondent 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 October 1, 1991, whereby solely for the purpose of this proceeding and without admitting or denying any of the alleged violations of law, unsafe or unsound banking practices, and/or breaches of fiduciary duty, 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:

       (i) Respondent has engaged or participated in violations of law, rule and/or regulation, unsafe or unsound banking practices, and/or breaches of his fiduciary duty as a former officer, director, person participating in the conduct of the affairs of, and an institution-affiliated party of the Bank;
       (ii) By reason of such violations, practices and/or breaches of fiduciary duty, the Bank has suffered substantial financial loss or other damage and/or the interests of the depositors of the Bank have been prejudiced; and
       (iii) Such violations, practices and/or breaches of fiduciary duty demonstrated a willful and/or continuing disregard by the Respondent for the safety or soundness of the Bank.
   The FDIC further determined that such violations, practices and/or breaches of fiduciary duty evidence Respondent's unfitness to serve as an officer, director, employee, person participating in the conduct of the affairs, or as an institution-affiliated party of 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). The FDIC, therefore, ac- {{9-30-93 p.C-2103}} cepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   [.1] 1. IT IS HEREBY ORDERED, that Thomas G. Hollmig is prohibited, without the prior written approval 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), from serving or acting as an officer, director, employee or institution-affiliated party of, and/or from participating in any manner in the conduct of the affairs of, 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).

   [.2] 2. IT IS FURTHER ORDERED that Thomas G. Hollmig is prohibited from either voting for a director or from soliciting, procuring, transferring, or otherwise attempting to transfer or vote any proxy, consent or authorization with respect to any voting rights in 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 approval 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 Thomas G. Hollmig shall not violate any voting agreement previously approved by the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q), without the prior written approval 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. This ORDER shall become effective ten (10) days following its issuance by the FDIC pursuant to section 8(e) of the Act, 12 U.S.C. § 1818(e).
   5. 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 30th day of March, 1992.
   Pursuant to delegated authority.

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