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[¶10,486] In the Matter of Lawrence O. Hauge, State Bank of Redwood, Redwood Falls, Minnesota, Docket No. FDIC-92-70b (3-30-92).
Respondent to cease and desist from unsafe or unsound banking practices and to take corrective action. (This order was terminated by order of the FDIC dated 7-1-93; see ¶ 15,697.)
[.1] Institution-Affiliated Party—Divestiture of Bank Stock Required
In the Matter of
LAWRENCE O. HAUGE,
Individually, and as an
institution-affiliated party of
STATE BANK OF REDWOOD
REDWOOD FALLS, MINNESOTA
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
Lawrence O. Hauge, individually, and as an institution-affiliated party of State Bank of Redwood, Redwood Falls, Minnesota ("Bank"), having been advised of his right to a Notice of Charges and of Hearing detailing the violation of law and/or regulation alleged to have been committed by Respondent and of his 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 March 13, 1992, whereby solely for the purpose of this proceeding and without admitting or denying the violation of law and/or regulation, Respondent consented to the issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC.
The FDIC considered the matter and determined it had reason to believe that the Respondent had violated a law and/or reg-
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ulation. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:
ORDER TO CEASE AND DESIST
IT IS HEREBY ORDERED, that the Respondent cease and desist from violating section 7(j) of the Act, 12 U.S.C. § 1817(j).
IT IS FURTHER ORDERED, that Respondent take affirmative action as follows:
[.1] 1. Within 270 days of the effective date of this ORDER, Respondent, without loss to, or outlay by, the Bank, shall divest himself of sufficient shares of voting stock of the Bank such that Respondent, directly or indirectly or through or in concert with one or more other persons, no longer: (A) owns, controls or has the power to vote 25 percentum or more of the outstanding shares of voting stock of the Bank; or (B) otherwise controls the Bank within the meaning of section 7(j) of the Act, 12 U.S.C. § 1817(j).
EFFECTIVE DATE AND EFFECT OF ORDER
This ORDER shall become effective 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 provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
Dated this 30th day of March, 1992.
Pursuant to delegated authority.
