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FDIC Enforcement Decisions and Orders

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   [10,953] In the Matter of Rick R. Sanders, Bank of Bellevue, Bellevue, Nebraska; Tri-County Bank & Trust, Bellevue, Nebraska; Boone State Bank & Trust Co., Boone, Iowa; and Standard State Bank & Trust Co., Independence, Missouri; Docket No. FDIC-92-191e (3-8-94).

   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
RICK R. SANDERS, individually
and as an officer, director,
person participating in the
conduct of the affairs and/or
institution-affiliated party of
BANK OF BELLEVUE
BELLEVUE,NEBRASKA;
TRI-COUNTY BANK & TRUST
BELLEVUE,NEBRASKA;
BOONE STATE BANK & TRUST CO.
BOONE,IOWA;
and
STANDARD STATE BANK & TRUST
CO.

INDEPENDENCE,MISSOURI
(Insured State Nonmember Banks)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION

FDIC-92-191e

   Rick R. Sanders ("Respondent"), has received a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the alleged unsafe or unsound banking practices for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may issue, and has been advised of the right to a hearing on the alleged charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(e) (1982) and (1989), and the FDIC's Rules of Practice and Procedure, 12 C.F.R. Part 308. 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, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices, Respondent consented to the issuance of an ORDER by the FDIC.
   The FDIC considered the matter and determined it had reason to believe that:
   (a) Respondent has engaged or participated in unsafe or unsound banking practices as an institution-affiliated party of Bank of Bellevue, Bellevue, Nebraska; Tri-County Bank & Trust, Bellevue, Nebraska; Boone State Bank & Trust Co., Boone, Iowa; Standard State Bank & Trust Company, Independence, Missouri; Otoe County National Bank & Trust Co., Nebraska City, Nebraska; and First National Bank & Bowman, Bowman, North Dakota (sometimes collectively referred to as "Banks");
   (b) By reason of such practices the Banks have suffered or will probably suffer financial loss or other damage; and
   (c) Such practices demonstrate the Respondent's continuing disregard for the safety or soundness of the Banks.
   The FDIC further determined that by reason of such practices Respondent should be prohibited from serving as a director, officer, person participating in the conduct of the affairs or as an institution-affiliated party of the Banks, any other insured depository institution, or any other agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A).
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   The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   [.1] 1. Rick R. Sanders is hereby, 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), prohibited from:

       (a) participating in any manner in the conduct of the affairs of any financial institution or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);
       [.2] (b) soliciting, procuring, transferring, attempting to transfer, voting, or attempting to vote any proxy, consent or authorization with respect to any voting rights in any financial institution enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);
       (c) violating any voting agreement previously approved by the appropriate Federal banking agency; or
       (d) voting for a director, or serving or acting as an institution-affiliated party.
   2. Notwithstanding the provisions of paragraphs 1(a) and (d) of this ORDER, Respondent shall not be prohibited from providing legal services as an attorney on a contract basis for any financial institution enumerated in section 8(e)(7)(A)(i) through (iv) of the Act, 12 U.S.C. § 1818(e)(7)(A)(i) through (iv) ("financial institution"), provided, however, that, in the event Respondent undertakes to represent a financial institution, Respondent shall:
       (a) advise any such financial institution of the existence and contents of this ORDER prior to undertaking the representation;
       (b) notify the Regional Director of the FDIC's Kansas City Regional Office of the name and address of any such financial institution and the nature of the legal services to be provided prior to undertaking such services;
       (c) be independent with respect to any such financial institution; and
       (d) be prohibited from providing legal services for any such financial institution with respect to the institution's management policies or practices, internal operations, or supervisory or compliance matters.
   3. For purposes of this ORDER, Respondent shall be considered "independent" with respect to a financial institution if:
       (a) Respondent is not an officer or employee of any subsidiary of the financial institution, or any of its affiliated organizations;
       (b) Respondent does not own, directly or indirectly, more than five percent of the outstanding voting stock of the financial institution, any subsidiary of the financial institution, or any of its affiliated organizations;
       (c) Respondent is not related by blood, marriage or common financial interest to any individual who is an officer or director of the financial institution or who otherwise is not independent with respect to the financial institution because such individual does not satisfy the criteria described in this paragraph concerning independence. The phrase "common financial interest" means any relationship involving individuals who, directly or indirectly, (1) have an ownership interest in a common enterprise, or (2) are in a debtor/ creditor relationship. "Common financial interest" does not include common ownership of publicly traded securities registered with the Securities and Exchange Commission, unless the individuals involved have filed or are required to file a statement under 15 U.S.C. § 78p; and
       (d) Respondent is not indebted to the financial institution, directly or indirectly (including the indebtedness of any "related interest" of Respondent, as defined in 12 C.F.R. § 215.2(m), and of any member of Respondent's "immediate family," as defined in 12 C.F.R. § 215.2(g)), in an amount exceeding five percent of the financial institution's Tier 1 capital and allowance for loan and lease losses.
   4. This ORDER will become effective 10 days after its issuance. The provisions of this ORDER will 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 this 8th day of March, 1994.
   Pursuant to delegated authority.

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