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FDIC Enforcement Decisions and Orders

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{{6-30-94 p.C-3447}}
   [10,880] In the Matter of Century Thrift and Loan Association, Los Angeles, California, Docket No. FDIC-93-156PCAS (9-24-93).

   Bank agrees to take prompt corrective action to increase its capitalization. (This order was terminated by order of the FDIC dated 4-26-94; see ¶ 15,860.)

   [.1]Capital—Increase—Sale of Shares
   [.2]Sale or Merger of Bank
   [.3]Affiliated Institutions—Transactions Restricted
   [.4]Interest—Restrictions on Rates Paid

In the Matter of

CENTURY THRIFT AND LOAN
ASSOCIATION

LOS ANGELES, CALIFORNIA
(Insured State Nonmember Bank)
SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE
FDIC-93-156PCAS

   Century Thrift and Loan Association, Los Angeles, California ("Bank"), formerly being a significantly undercapitalized depository institution as such term is defined in section 38(b)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1831o(b) (1), and section 325.103 of the FDIC's Rules and Regulations, 12 C.F.R. § 325.103, based upon the California Department of Corporations' Report of Examination of the Bank as of February 28, 1993, and currently being a critically undercapitalized depository institution as such term is defined in section 38(b)(1) of the Act, 12 U.S.C. § 1831o(b) (1), and section 325.103 of the FDIC's Rules and Regulations, 12 C.F.R. § 325.103, based upon the FDIC's Report of Examination of the Bank as of June 7, 1993, and having failed to submit a capital restoration plan acceptable to the FDIC pursuant to section 38(e)(2) of the Act, 12 U.S.C. § 1831o(e) (2), and section 325.104 of the FDIC's Rules and Regulations, 12 C.F.R. § 325.104, and having received a NOTICE OF INTENT TO ISSUE A SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE ("NOTICE") detailing the actions which will be required to be taken by the Bank and/or the proscriptions which will be imposed on the Bank pursuant to section 38 of the Act, 12 U.S.C. § 1831o, and section 308.201(a) of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.201(a), and the Bank having failed to file a response to the NOTICE pursuant to section 308.201(c) of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.201(c), the FDIC hereby issues this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE pursuant to the provisions of section 38 of the Act, 12 U.S.C. § 1831o, and section 308.201(d) of the FDIC {{6-30-94 p.C-3448}}Rules of Practice and Procedure, 12 C.F.R. § 308.201(d).

SUPERVISORY PROMPT CORRECTIVE
ACTION DIRECTIVE

   [.1] IT IS HEREBY DIRECTED, that the Bank sell enough shares or obligations of the Bank so that the Bank will be adequately capitalized after the sale, and that such instruments which are sold be voting shares.

   [.2] IT IS FURTHER DIRECTED, that the Bank accept an offer to be acquired by a depository institution holding company, or to combine with another insured depository institution, if one or more grounds exist for appointing a conservator or receiver for the Bank under section 11(c)(5) of the Act, 12 U.S.C. § 1821(c)(5).

   [.3] IT IS FURTHER DIRECTED, that the Bank restrict transactions between affiliates pursuant to section 38(f)(2)(B)(i) of the Act, 12 U.S.C. § 1831o(f)(2)(B)(i).

   [.4] IT IS FURTHER DIRECTED, that the Bank restrict the interest rate the Bank pays on deposits to the prevailing rates of deposits of comparable amounts and maturities in the region where the Bank is located.
   IT IS FURTHER DIRECTED, that this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE shall become effective immediately upon its receipt by the Bank.
   Each provision of this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE shall be binding upon the Bank, its directors, officers, employees, agents, successors, assigns, and other institution-affiliated parties of the Bank.
   Each provision of this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE shall remain effective and enforceable until the Bank has been adequately capitalized on average for four consecutive calendar quarters, except to the extent that any provision shall be modified, terminated, suspended, or set aside by the FDIC.
   Dated at Washington, D.C. this 24th day of September, 1993.
   Pursuant to delegated authority.

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