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FDIC Enforcement Decisions and Orders

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{{7-31-94 p.C-2468}}
   [10,581] In the Matter of The Savings Bank of Rockland County, Spring Valley, New York, Docket No. FDIC-92-210b (6-30-92).

   Bank to cease and desist from such unsafe or unsound practices as following hazardous lending and lax collection practices; operating with an excessive level of poor quality assets; operating with inadequate allowance for loan and lease losses; operating with inadequate liquidity and funds management; operating without proper internal routine and controls; engaging in practices which produce inadequate earnings; operating in violation of applicable laws or regulations; operating with management policies detrimental to the Bank; and failing to provide adequate supervision over the Bank's affairs. (This order was terminated by order of the FDIC dated 5-12-94; see ¶ 15,868.)

   [.1] Management—Qualifications—Review
   [.2] Assets—Adversely Classified—Eliminate/Reduce
   [.3] Loans—Special Mention—Correct Deficiencies
   [.4] Assets—Problem Assets—Individual Written Plans Required
   [.5] Loans—Extensions of Credit—Existing Borrowers—Curtail
   [.6] Allowance for Loan and Lease Losses—Establish/Maintain
   [.7] Lending and Collection Policy—Minimum Requirement
   [.8] Loan Portfolio—Review and Grading System
   [.9] Assets—Concentrations—Written Policy Required
   [.10] Budget and Earnings Plan—Preparation Required
   [.11] Capital—Tier 1 Capital—Increase/Maintain—Methods
   [.12] Liquidity and Funds Management—Written Policy
   [.13] Liquidity and Funds Management—Written Policy
   [.14] Violations of Law—Eliminate/Correct
   [.15] Bank Operations—Internal Routine and Controls—Written Policy Required
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   [.16] Dividends—Restricted
   [.17] Shareholders—Disclosure—Cease and Desist Order
   [.18] Board of Directors—Committee to Review Compliance with Cease and Desist Order
   [.19] Compliance Reports—Frequency

In the Matter of

THE SAVINGS BANK OF
ROCKLAND COUNTY

SPRING VALLEY, NEW YORK
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-92-210b

   The Savings Bank of Rockland County, Spring Valley, New York ("Bank"), having been advised of its right to a Notice of Charges and of Hearing detailing the unsafe or unsound banking practices and violations of law and/or regulations alleged to have been committed by the Bank and of its right to a hearing on the 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 June 30, 1992, whereby, solely for the purpose of this proceeding and without admitting or denying the alleged charges of unsafe or unsound banking practices and violations of law and/or regulations, 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 and had committed violations of law and/or regulations. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER TO CEASE AND DESIST

   IT IS HEREBY ORDERED that the Bank, 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), CEASE AND DESIST from the following unsafe or unsound banking practices and violations:
   (a) Engaging in hazardous lending and lax collection practices;
   (b) Operating the Bank with an excessive volume of poor quality assets;
   (c) Operating the Bank with an inadequate allowance for loan and lease losses;
   (d) Operating the Bank with inadequate liquidity and funds management;
   (e) Operating the Bank with inadequate routine and controls;
   (f) Operating the Bank in such a manner as to produce unsatisfactory earnings;
   (g) Engaging in violations of applicable Federal and State laws and regulations as more fully set forth on pages 6-a and 6-a-1 of the Report of Examination of the Bank by the FDIC as of July 22, 1991, and pages 10 through 10-2 of the Report of Examination of the Bank by the New York State Banking Department ("Department") as of June 30, 1991;
   (h) Operating the Bank with management policies and practices which are detrimental to the Bank and jeopardize the safety of its deposits; and
   (i) Operating the Bank with a board of directors which has failed to provide adequate supervision over and direction to the operating management of the Bank.
   IT IS FURTHER ORDERED that the Bank take AFFIRMATIVE action as follows:

[.1] 1. (a) The Bank shall have and retain qualified management. Each member of management shall have qualifications and experience commensurate with his or her duties and responsibilities at the Bank. The qualifications of management shall be assessed on its ability to:

       (i) comply with the requirements of this ORDER;
       (ii) operate the Bank in a safe and sound manner;
       (iii) comply with all applicable laws and regulations; and
       (iv) restore all aspects of the Bank to
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    a safe and sound condition, including capital adequacy, asset quality, management effectiveness, earnings and liquidity.
    (b) (i) During the life of this ORDER, the Bank shall notify the Regional Director of the New York Regional Office of the FDIC ("Regional Director") and the Superintendent of Banks for the State of New York ("Superintendent") in writing of any resignations and/or terminations of any members of its board of directors and/or any of its senior officers.
       (ii) The Bank shall comply with section 32 of the Act, 12 U.S.C. § 1831i, which includes a requirement that the Bank shall notify the Regional Director and the Superintendent in writing at least 30 days prior to any individual assuming a new position as a senior executive officer or any additions to its board of directors.
   (c) 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 who are not now, and never have 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 composition and practices of the Bank's current operating management, and consideration of whether current operating management should be changed, or the terms and conditions under which current operating management should be continued. As part of this review, the Committee shall evaluate each Bank officer to determine whether these individuals possess the ability, experience and other qualifications required to perform present and anticipated duties, including adherence to the Bank's established policies and practices, and maintenance of the Bank in a safe and sound condition.
   (d) Within 90 days from the effective date of this ORDER, the Committee referenced in paragraph 1(c) of this ORDER 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 operating 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' evaluation, determinations, and implementing actions, shall be submitted to the Regional Director and the Superintendent within 120 days from the effective date of this ORDER.

   [.2] 2. Within 10 days from the effective date of this ORDER, the Bank shall eliminate from its books, by collection or charge-off, all assets or portions of assets classified "Loss" and 50 percent of all assets or portions of assets classified "Doubtful" by the FDIC and the Department as a result of their examinations of the Bank as of July 22, 1991, and June 30, 1991, respectively, which have not been previously charged off or collected. In addition, and so long as this ORDER remains in effect, the Bank shall, within 30 days from the receipt of any subsequent Report of Examination of the Bank from the FDIC or the Superintendent, eliminate from its books, by collection or charge-off, all assets or portions of assets classified "Loss" and 50 percent of all assets or portions of assets classified "Doubtful" in said Reports of Examination. Elimination of these assets through the use of the proceeds of loans or other extensions of credit made by the Bank does not constitute collection for the purposes of this ORDER.

    3. (a) Within 360 days from the effective date of this ORDER, the Bank shall reduce the remaining total of all assets classified "Doubtful" and "Substandard" by the FDIC and the Department as a result of their examinations of the Bank as of July 22, 1991 and June 30, 1991, respectively, to not more than 100 percent of Tier 1 capital and reserves, and, within 540 days from the effective date of this ORDER, the Bank shall reduce the total of such assets to not more than 75 percent of Tier 1 capital and reserves. Solely for purposes of calculating the foregoing ratios, the book value of that certain parcel of ORE known as Bridgewater II shall be excluded. The requirements of this paragraph 3(a) of this ORDER shall not be construed as a standard for future opera- {{8-31-92 p.C-2471}}tions of the Bank. In addition to accomplishing the foregoing schedule of reductions, the Bank shall eventually reduce all adversely classified assets of the Bank, including the book value of that certain parcel of ORE known as Bridgewater II.
       (b) As used in this ORDER, the word "reduce" means (i) to collect, (ii) to charge off, or (iii) to improve the quality of adversely classified assets sufficiently to warrant removing any adverse classification, as determined by the FDIC and the Superintendent. Reduction of these assets through the use of the proceeds of loans or other extensions of credit made by the Bank does not constitute collection for the purposes of this ORDER.

   [.3] 4. Within 60 days from the effective date of this ORDER, the Bank shall take steps necessary to eliminate all deficiencies noted in all assets scheduled as "Special Mention" by the FDIC and the Department as a result of their examinations of the Bank as of July 22, 1991 and June 30, 1991, respectively, and within 60 days from the receipt of any subsequent Report of Examination from the FDIC or the Superintendent, the Bank shall take steps necessary to eliminate all deficiencies noted in all assets scheduled as "Special Mention" in each such Report.

   [.4] 5. Within 45 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 $100,000 and:

       (a) Has been adversely classified or listed for "Special Mention" by the FDIC or the Department as a result of their examinations of the Bank as of July 22, 1991 and June 30, 1991, respectively, or is adversely classified or listed for "Special Mention" by either the FDIC or the Department 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] 6. (a) Immediately upon the effective date 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) 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, so long as any portion of such extension of credit, whether or not that portion was charged off, remains uncollected. The provisions of this paragraph 6(a) shall not apply to the advance of funds by the Bank for the sole purpose of maintaining or protecting the Bank's real estate collateral for any extension of credit, up to a maximum amount of $50,000 in the aggregate for all such advances, with respect to each real estate property securing, in whole or in part, all such extensions of credit.
   (b) Immediately upon the effective date of this ORDER, the Bank shall not extend, directly or indirectly, any new or additional credit 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 and the Department as a result of their examinations of the Bank as of July 22, 1991 and June 30, 1991, respectively or as a result of any subsequent examination {{8-31-92 p.C-2472}}of the Bank by the FDIC or the Department, 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 is uncollected. This paragraph 6(b) shall not prohibit the Bank from renewing all or any part of an extension of credit to a classified borrower who is not subject to the prohibitions of paragraph 6(a) of this ORDER, after collection in cash of interest due on the entire extension of credit. The prohibitions of this paragraph 6(b) shall not apply to any extension of credit to a classified borrower who is not subject to the prohibitions of paragraph 6(a) of this ORDER, if:
       (i) the Bank's failure to extend further credit to a classified borrower would be substantially detrimental to the best interests of the Bank;
       (ii) a comparison with the written program adopted pursuant to paragraph 5 of this ORDER shows that the Bank's formal program to eliminate the basis of criticism of said criticized asset is not compromised; and
       (iii) prior to extending any credit, 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' certification shall be maintained in the credit file of the classified borrower.

[.6] 7. (a) Within 30 days from the effective date of this ORDER, the board of directors of the Bank shall adopt a method of computing the balance of the Bank's allowance 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 criticized loans, including but not limited to: (i) results of the Bank's internal loan review; (ii) loan loss experience; (iii) an estimate of potential loss exposure on each significant credit; (iv) concentrations of credit in the Bank; and (v) present and prospective economic conditions. Immediately thereafter, the board of directors of the Bank shall review the adequacy of the Bank's allowance for loan and lease losses utilizing the method adopted pursuant to this paragraph, and shall make such additional provisions for loan and lease losses that are necessary to maintain the allowance at an adequate level relative to the volume of risk in the Bank's loan portfolio. Thereafter, the Bank's board of directors shall, during the first month of each quarter, reevaluate the allowance for loan and lease losses and make such additional provisions for loan and lease losses that are necessary to maintain the allowance at an adequate level relative to the volume of risk in the Bank's loan portfolio. All such additional provisions for loan and leases losses shall be made in the first month of the calendar quarter in which the deficiency in the allowance 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 is identified with respect to the preceding calendar quarter. 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 allowance shall be maintained for future regulatory review.
   (b) All increases in the allowance for loan and lease losses, with the exception of recoveries credited directly to the allowance, shall be accomplished by charges to operating earnings through the provision for loan and lease losses.

   [.7] 8. Within 60 days from the effective date of this ORDER, the Bank shall review its written loan and collection policy and make whatever changes may be necessary to provide for the safe and sound administration of all aspects of the lending and collection function. Specific procedures shall be included for prior approval of loans to directors, officers and principal shareholders and their related interests in compliance with applicable laws and regulations. Loan documentation, repayment programs, collection and charge-off procedures and internal loan review shall also be included as a part of the review. The Bank shall adopt changes it considers necessary and appropriate and management shall reaffirm its intent to comply with the policy, as amended. Evidence of management's reaffirmation shall be reduced to writing. The policy and its implementation shall be in a form and manner acceptable to the Regional Director and the {{8-31-92 p.C-2473}}Superintendent as determined at subsequent examinations.

[.8] 9. (a) Within 30 days from the effective date of this ORDER, the board of directors of the Bank shall establish an internal loan review and grading system ("System") to periodically review the Bank's loan portfolio and identify and categorize problem credits. At a minimum, the System shall provide for:

       (i) identifying the overall quality of the loan portfolio;
       (ii) the identification and amount of each delinquent loan;
       (iii) an identification or grouping of loans that warrant the special attention of management;
       (iv) for each loan identified, a statement of the amount and an indication of the degree of risk that the loan will not be fully repaid according to its terms and the reason(s) why the particular loan merits special attention;
       (v) an identification of credit and collateral documentation exceptions;
       (vi) the identification and status of each violations of law, rule or regulation;
       (vii) an identification of loans not in conformance with the Bank's lending policy, and exceptions to the Bank's lending policy;
       (viii) an identification of insider loan transactions; and
       (ix) a mechanism for reporting periodically, but in any event no less than quarterly, to the board of directors on the status of each loan identified and the action(s) taken by operating management.
   (b) A copy of the reports submitted to the board, as well as documentation of the action taken by the Bank to collect or strengthen assets identified as problem credits, shall be kept with the minutes of the board of directors.

[.9] 10. (a) Within 60 days from the effective date of this ORDER, the Bank's board of directors shall adopt and implement a written policy which shall establish appropriate guidelines for the commitment of the Bank's funds in amounts which exceed 10 percent of the Bank's Tier 1 capital. Such policy should, at a minimum, address loans or investments or any other assets of the Bank categorized by concentrations to obligors, industries, product lines, geographic locales, or by type of collateral. Immediately subsequent to adoption by the Bank's board of directors, the policy shall be provided to the Regional Director and the Superintendent.
   (b) Within 30 days from the effective date of this ORDER, the Bank shall submit a plan to the Regional Director and the Superintendent for the reduction of each loan concentration as detailed on page 2-b of the Report of Examination of the Bank by the FDIC as of July 22, 1991, and on Supplemental Page 2 of the Report of Examination of the Bank by the Department as of June 30, 1991, to an amount which shall be less than 50 percent of the Bank's Tier 1 capital for each individual concentration. Such plan shall address the means by which such reductions shall be made and the time frames within which the reductions shall be accomplished.

[.10] 11. (a) Within 60 days from the effective date of this ORDER, and within the first 30 days of each calendar year thereafter, the board of directors of the Bank shall develop a written earnings plan consisting of goals and strategies for improving the earnings of the Bank for each calendar year. The written earnings plan shall include, at a minimum:

       (i) identification of the major areas in, and means by, which the board of directors will seek to improve the Bank's operating performance;
       (ii) realistic and comprehensive budgets;
       (iii) a budget review process to monitor the income and expenses of the Bank to compare actual figures with budgetary projections on not less than a quarterly basis; and
       (iv) a description of the operating assumptions that form the basis for, and adequately support, major projected income and expense components.
   (b) Such written earnings plan and any subsequent modification thereto shall be submitted to the Regional Director and the Superintendent for review and comment. Within 30 days after the receipt of any comment from the Regional Director and the Superintendent, the board of di- {{8-31-92 p.C-2474}}rectors shall approve the written earnings plan, which approval shall be recorded in the minutes of the meeting of the board of directors of the Bank. Thereafter, the Bank, its directors, officers, and employees shall follow the written earnings plan and/or any subsequent modification thereto.

[.11] 12. (a) Within 90 days from the effective date of this ORDER, the board of directors of the Bank shall adopt and implement a plan for maintaining the Bank's Tier 1 capital at not less than 6 percent of the Bank's Part 325 total assets. Thereafter, during the life of this ORDER, the Bank shall maintain Tier 1 capital equal to or greater than 6 percent of the Bank's Part 325 total assets.
   (b) Any increase in Tier 1 capital necessary to meet the ratio required by paragraph 12(a) of the ORDER may be accomplished by the following:

       (i) the sale of new securities in the form of common stock; or
       (ii) the direct contribution of cash by the directors or shareholders of the Bank; or
       (iii) any combination of the above or other method acceptable to the FDIC.
   (c) If all or part of the increase in Tier 1 capital required by paragraph 12(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 the voting of any shares owned or proxies held or 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 Federal and State 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. Any changes requested to be made in the plan or materials by the FDIC shall be made prior to their dissemination.
   (d) In complying with the provisions of paragraph 12 of this ORDER, the Bank shall provide to any subscriber and/or purchaser of Bank securities written notice of any planned or existing development or other changes which are materially different from the information reflected in any offering materials 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 subscriber and/or purchaser of Bank securities who received or was tendered the information contained in the Bank's original offering materials.
   (e) For the purposes of this ORDER, the terms "Tier 1 capital" and "Part 325 total assets" shall have the meanings ascribed to them in Part 325 of the FDIC's Rules and Regulations, respectively sections 325.2(m) and 325.2(n), 12 C.F.R. §§ 325.2(m) and (n).
   (f) The Bank shall not lend funds directly or indirectly, whether secured or unsecured, to any purchaser of Bank stock or to any investor by any other means for any portion of any increase in Tier 1 capital required herein.

   [.12] 13. Within 60 days from the effective date of this ORDER, the Bank shall formulate and adopt a written liquidity and funds management policy. Such policy shall include the establishment of acceptable ranges of ratios in the following areas: volatile liability dependence, total loans to total deposits and temporary investments to volatile liabilities. In addition, the liquidity policy shall incorporate a funds management program which designates acceptable levels for: volatile liabilities, including borrowings; asset mix, including temporary funds and investments, long-term investment securities and classes of obligors, and loans to deposits; and rate-sensitive assets as a percent of rate-sensitive liabilities. The written liquidity and funds management policy shall be submitted to the Regional Director and the Superintendent for review and comment.

   [.13] 14. While this ORDER is in effect, the Bank shall not accept, renew, or rollover brokered deposits other than as and to the {{2-28-94 p.C-2475}}extent permitted pursuant to section 29 of the Act, 12 U.S.C. § 1831f, as amended, and the FDIC's Rules and Regulations, including section 337.6, 12 C.F.R. § 337.6, as amended and supplemented. For the purposes of this ORDER, the term "brokered deposit" shall have the same meaning as is found in section 337.6(a) of the FDIC's Rules and Regulations, as amended.

   [.14] 15. Within 60 days from the effective date of this ORDER, the Bank shall eliminate and/or correct all violations of law and regulations, as described on pages 6-a and 6-a-1 of the Report of Examination of the Bank by the FDIC as of July 22, 1991, and on pages 10 through 10-2 of the Report of Examination of the Bank by the Department as of June 30, 1991. In addition, the Bank shall take all steps necessary to ensure future compliance with all applicable Federal and State laws and regulations.

   [.15] 16. Within 90 days from the effective date of this ORDER, the Bank's board of directors shall revise, adopt and implement written policies and procedures to provide effective guidance and control over the internal routine and controls of the Bank, in accordance with safe and sound banking practices. Among other provisions, the revised policies and procedures shall specifically provide for correction of all internal routine and controls deficiencies scheduled by the FDIC and the Department as a result of their examinations of the Bank as of July 22, 1991 and June 30, 1991, respectively. Upon adoption by the board of the revised policies and procedures, a copy of each policy and procedure shall be provided to the Regional Director and the Superintendent.

   [.16] 17. 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 any class of its stock, without the prior written consent of the Regional Director and the Superintendent.

   [.17] 18. Following the effective date of this ORDER, the Bank shall send to its shareholders or otherwise furnish a description of this ORDER, (i) in conjunction with the Bank's next shareholder communication, and also (ii) 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. 20429, 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.

   [.18] 19. Within 15 days from the effective date of this ORDER, the Bank's board of directors shall appoint a committee composed of at least three directors who are not now and have never been involved in the daily operations of the Bank, and whose composition is acceptable to the Regional Director and the Superintendent (the "Compliance Committee"), to monitor the Bank's compliance with this ORDER. Within 30 days from the effective date of this ORDER, and at monthly intervals thereafter, such Compliance 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 meetings of the Bank's board of directors.
    [.19] 20. By the 30th day after the end of the calendar quarter in which this ORDER is issued, and by the 15th day after the end of every calendar quarter thereafter, the Bank shall furnish written progress reports to the Regional Director and the Superintendent detailing the form, content, and manner of any Director and the Superintendent detailing the form, content, and manner of any actions taken to secure compliance with this ORDER, and the results thereof.
   The effective date of this ORDER shall be 10 days from the date of issuance.
   The provisions of this ORDER shall be binding upon the 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.
   Dated: June 30, 1992.
   Pursuant to delegated authority.

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