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FDIC Enforcement Decisions and Orders

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{{10-31-94 p.C-3577}}
   [10,941] In the Matter of Bank of San Pedro, San Pedro, California, Docket No. FDIC-93-161PCAS (1-31-94).

   FDIC finds bank has failed to implement its capital restoration plan and issues Supervisory Prompt Corrective Action Directive. (This order was terminated by order of the FDIC dated 8-5-94; see ¶15,898.)

   [.1] Merger or Sale of Bank—Directors to Consider
   [.2] Covered Transactions—Restricted
   [.3] Interest Rates—Limits on Rates Paid

In the Matter of

BANK OF SAN PEDRO
SAN PEDRO,CALIFORNIA
(Insured State Nonmember Bank)
SUPERVISORY
PROMPT CORRECTIVE ACTION
DIRECTIVE

FDIC-93-161PCAS

   Bank of San Pedro, San Pedro, California ("Bank"), being a significantly undercapitalized depository institution as that 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 financial data obtained at a joint FDIC and California State Banking Department Visitation conducted on October 5, 1993, and the Bank having failed in a material respect to implement its capital restoration plan that has been accepted by the FDIC, and having received a NOTICE OF INTENT TO ISSUE A SUPERVISORY {{10-31-94 p.C-3578}}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 Rules of Practice and Procedure, 12 C.F.R. § 308.201(d).

SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE

   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.

   [.1] 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 notified in writing by the FDIC, that one or more grounds exist for appointing a conservator or receiver for the Bank under section 11(c)(5) of the Federal Deposit Insurance Act, 12 U.S.C. § 1821(c)(5).

   [.2] IT IS FURTHER DIRECTED, that the Bank restrict engaging in any covered transactions between affiliates, as defined in section 23A(b) of the Federal Reserve Act, 12 U.S.C. § 371c(b).

   [.3] 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 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 (4) 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 31st day of January, 1994.
   Pursuant to delegated authority.

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