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   [11,109] In The Matter of EuroBank, Boca Raton, Florida, Docket No. FDIC-94-201b (12-15-94).

   Bank to cease and desist from such unsafe or unsound practices as operating in violation of applicable consumer and civil rights laws or regulations, and with inadequate employee training for compliance with those laws and regulations. (This order was terminated by order of the FDIC dated 4-11-96. See ¶16,090.)

   [.1] Violations of Law—Eliminate/Correct
   [.2] Consumer Laws—Compliance Officer Required
   [.3] Community Reinvestment Act—Compliance Required
   [.4] Shareholders—Disclosure—Cease and Desist Order

In The Matter of

EUROBANK
BOCA RATON, FLORIDA
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-94-201b

   EuroBank, Boca Raton, Florida ("Bank"), having been advised of its right to receive a written Notice Of Charges and of Hearing ("NOTICE") detailing unsafe or unsound banking practices and violations of applicable law and regulations alleged to have been committed by the Bank and its right to a hearing regarding such alleged charges under section 8(b)(1) of the Federal Deposit In- {{6-30-96 p.C-3892}} surance Act ("Act"), 12 U.S.C. § 1818(b)(1), and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT") with a representative of the Legal Division of the Federal Deposit Insurance Corporation ("FDIC"), dated ____, 1994, whereby solely for the purpose of this proceeding and without admitting or denying any of the alleged charges of unsafe or unsound banking practices and violations of applicable law and 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 applicable law and 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 institution-affiliated parties, as such term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns cease and desist from the following unsafe or unsound banking practices and violations of law and regulations:
   A. Failing to provide adequate supervision and direction over the Bank's compliance with applicable laws and regulations by the board of directors of the Bank to prevent violations of:

       (i) the Truth in Lending Act, 15 U.S.C. §§ 1601–1667e ("TILA"), and the implementing regulations promulgated thereunder by the Board of Governors of the Federal Reserve System ("Federal Reserve") at 12 C.F.R. Part 226 ("Regulation Z"), made applicable to insure state nonmember banks by 15 U.S.C. § 1607(a)(1)(C);
       (ii) the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. §§ 2601–2617 ("RESPA"), and the implementing regulations promulgated thereunder by the Office of the Assistant Secretary for Housing— Federal Housing Commissioner, Department of Housing and Urban Development ("HUD") at 24 C.F.R. Part 3500 ("Regulation X"), made applicable to insured state nonmember banks by 24 C.F.R. § 3500.5;
       (iii) the Electronic Funds Transfer Act, 15 U.S.C. §§ 1693–1693r ("EFTA"), and the implementing regulations promulgated thereunder by the Federal Reserve at 12 C.F.R. Part 205 ("Regulation E"), made applicable to insured state nonmember banks by 15 U.S.C. § 1693o(a)(1)(C) and 12 C.F.R. § 205.13(a)(1);
       (iv) the Flood Disaster Protection Act of 1973, 42 U.S.C. §§ 4002–4128, made applicable to insured state nonmember banks by 42 U.S.C. § 4012a, and Part 339 of the FDIC's Rules and Regulations ("Regulations"), 12 C.F.R. Part 339;
       (v) the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691–1691f ("ECOA"), and the implementing regulations promulgated thereunder by the Federal Reserve at 12 C.F.R. Part 202 ("Regulation B"), made applicable to insured state nonmember banks by 15 U.S.C. § 1691c;
       (vi) the Home Mortgage Disclosure Act of 1975, 12 U.S.C. §§ 2801–2810 ("HMDA"), and the implementing regulations promulgated thereunder by the Federal Reserve at 12 C.F.R. Part 203 ("Regulation C"), made applicable to insured state nonmember banks by 12 U.S.C. § 2804;
       (vii) the Community Reinvestment Act of 1977, 12 U.S.C. §§ 2901–2907 ("CRA"), made applicable to insured state nonmember banks by 12 U.S.C. § 2905, and Part 345 of the Regulations, 12 C.F.R. Part 345;
       (viii) section 328.3 of the Regulations regarding "Advertisement of Membership," 12 C.F.R. § 328.3;
       (ix) the Fair Housing Act, 42 U.S.C. §§ 3601-3619 ("FHA"), made applicable to insured state nonmember banks by 42 U.S.C. § 3608 and Part 338 of the Regulations, 12 C.F.R. Part 338; and
       (x) sections 5311-5328 of Title 31 of the United States Code regarding Records and Reports on Monetary Instruments Transactions, 31 U.S.C. §§ 5311-5328, and the implementing regulations promulgated thereunder by the Secretary of the Treasury ("Treasury Department's Financial Recordkeeping Regulation") at 31 C.F.R. Part 103, and made applicable to insured state nonmember banks by 31 U.S.C. §§ 5312(a)(2)(A), 5313(a), and 5318(a)(1) and 31 C.F.R. § 103.46(b)(3).
       B. Engaging in violations of:
       (i) sections 226.17(a), 226.18(b), (c), (d), (e), (f)(2), (g), (h), (k)(2) and (m), and 226.19(a)(1) and (b)(2) of Regulation Z, 12 C.F.R. §§ 226.17(a), 226.18(b), (c), (d),
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       (e), (f)(2), (g), (h), (k)(2) and (m), and 226.19(a)(1) and (b)(2);
       (ii) sections 3500.7(a), (c), (d) and (e), and 3500.8(b) of Regulation X, 24 C.F.R. §§ 3500.7(a), (c), (d), (e), and 3500.8(b) and sections 6(a)(1), 6(a)(1)(B), 6(a)(2), 6(a)(3), and 6(b)(3) of RESPA, 12 U.S.C. §§ 2605(a)(1), (a)(1)(B), (a)(2), (a)(3), and (b)(3);
       (iii) section 205.9(b)(1)(iv) of Regulation E, 12 C.F.R. § 205.9(b)(1)(iv);
       (iv) sections 339.3, 339.5, and 339.6 of the Regulations, 12 C.F.R. §§ 339.3, 339.5, and 339.6;
       (v) sections 202.9(a)(1) and 202.9(a)(2) of the Regulation B, 12 C.F.R. §§ 202.9(a)(1) and 202.9(a)(2);
       (vi) section 203.4(a) of Regulation C, 12 C.F.R. § 203.4(a);
       (vii) section 345.4(d) of the Regulations, 12 C.F.R. § 345.4(d);
       (viii) section 328.3 of the Regulations, 12 C.F.R. § 328.3;
       (ix) section 338.7(a)(2)(i) of the Regulations, 12 C.F.R. § 338.7(a)(2)(i); and
       (x) section 103.27(d) of the Treasury Department's Financial Recordkeeping Regulation, 31 C.F.R. § 103.27(d).
   C. Operating the Bank without adopting and implementing a comprehensive written compliance program designed to assure and monitor the Bank's compliance with all applicable consumer and civil rights laws and regulations;
   D. Operating the Bank without a qualified compliance officer with the requisite training and experience in administering and managing the Bank's compliance program; and
   E. Failing to provide necessary training on an ongoing basis to all Bank personnel who are assigned and/or perform duties and responsibilities regarding the Bank's compliance with all applicable consumer and civil rights laws and regulations.
   IT IS FURTHER ORDERED that the Bank and its successors and assigns take affirmative action as follows:

   [.1] 1. Within 30 days from the effective date of this ORDER, the Bank shall take all necessary steps, consistent with sound banking practices, to eliminate and/or correct all violations of consumer and civil rights laws and regulations committed by the Bank, as described on pages 2 through 3-a and page 5 of the FDIC's Compliance Report of Examination of the Bank as of June 14, 1994 and cited in paragraphs A and B of this ORDER. In addition, the Bank shall adopt appropriate procedures to ensure its future compliance with all applicable consumer and civil rights laws and regulations.

    [.2] 2. (a) Within 60 days from the effective date of this ORDER, the Bank shall have and/or retain a qualified senior compliance officer, who shall have the requisite training and experience to administer and manage the Bank's compliance with all applicable consumer and civil rights laws and regulations. The senior compliance officer shall be provided the necessary written authority to implement the provisions of this ORDER, to ensure the Bank's compliance with all applicable consumer and civil rights laws and regulations, and to commit sufficient time and resources to monitor the compliance program and report findings to the board of directors every quarter covering the Bank's level of compliance, the adequacy of the compliance operating procedures and results of compliance reviews and training activities. The qualifications of the senior compliance officer shall be assessed on his/her ability to ensure the Bank's compliance with the requirements of this ORDER and with all applicable consumer and civil rights laws and regulations. As long as this ORDER remains in effect, the Bank shall notify the Regional Manager of the FDIC's Atlanta Regional Office ("Regional Manager") in writing of the identity of any individual designated as the Bank's senior compliance officer, as well as any replacement individual so designated in the future. Such notification shall be in addition to any application and prior approval requirements established by section 32 of the Act, 12 U.S.C. § 1831i, and implementing regulations, and must include the name and qualifications of any individual designated as the Bank's senior compliance officer.
       (b) To facilitate compliance with paragraph 2(a) of this ORDER, and to ensure the Bank's future compliance with all applicable consumer and civil rights laws and regulations, the Bank shall develop, within 60 days from the effective date of this ORDER, a comprehensive written compliance program ("compliance program"). The board of directors shall approve the written compliance program and/or any subsequent {{2-28-95 p.C-3894}}modification thereto, which approval shall be recorded in the minutes of the board of directors. Thereafter, the Bank and its successors and assigns shall implement and follow the written compliance program and/or any subsequent modification thereto. The written compliance program shall include, at a minimum:
         (i) identification of both the type and number of officer and staff member positions, including the position of senior compliance officer, needed to manage and supervise properly the Bank's compliance with all applicable consumer and civil rights laws and regulations;
         (ii) establishment and implementation of a quarterly review procedure for each of the consumer laws, rules and regulations to which the Bank is subject, including, but not limited to, those laws, rules and regulations cited in paragraphs A(i)-(x) of this ORDER;
         (iii) identification and establishment of such committees of the Bank's board of directors as are needed to provide guidance and oversight to the senior compliance officer and compliance staff;
         (iv) a requirement that the senior compliance officer report at least quarterly to the board of directors regarding his/ her administration of the Bank's compliance program and the Bank's compliance with all applicable consumer and civil rights laws and regulations;
         (v) an evaluation of each current Bank officer, in particular the senior compliance officer, and compliance staff members to determine whether these individuals possess the ability, experience, training and other qualifications required to perform present and anticipated compliance duties, including adherence to the Bank's compliance program;
         (vi) the establishment of a regular, ongoing training program for the senior compliance officer and all other Bank officers and staff members with present or anticipated compliance duties and responsibilities, to ensure that they have and maintain the knowledge and ability necessary to perform their compliance duties; and
         (vii) a plan of action to recruit and hire any additional or replacement personnel with the requisite experience, ability, training and other qualifications, which the board of directors determines are necessary to fill Bank officer or staff member positions consistent with the analysis, evaluation and assessment provided in paragraphs 2(b)(i) and (v) of this ORDER.

   [.3] 3. Within 90 days from the effective date of this ORDER, the Bank shall take all necessary steps to improve its record of performance in ascertaining and meeting the credit needs of its entire local community, including low- and moderate-income neighborhoods, as required by the Community Reinvestment Act, 12 U.S.C. §§ 2901–2907 ("CRA"), and Part 345 of the Regulations, 12 C.F.R. Part 345. Such steps shall include, but are not necessarily limited to, the following:
       (a) Designating or affirming the designation of the individual, or the composition of any committee of the Bank's board of directors, who will be responsible for, and commit the time and resources necessary for, effectively coordinating and monitoring the Bank's compliance with CRA and Part 345 of the Regulations, and all aspects of the Bank's CRA performance;
       (b) Approving, adopting and implementing an effective and comprehensive CRA program which meets the requirements of CRA and Part 345 of the Regulations, and follows the guidelines provided in the "Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act," FDIC Bank Letter No. BL-16-89 (April 10, 1989), a copy of which is appended hereto as Appendix A. (Ed. note: This bank letter is not reproduced here.)
       (c) Planning and providing marketing of the Bank's credit products that are designed to reach the Bank's entire delineated local community, including low- and moderateincome neighborhoods, which includes the Coral Gables, Florida community;
       (d) Developing and implementing a system for ongoing analysis of the geographic distribution of the Bank's extensions of credit, applications for credit submitted to the Bank, and the Bank's denials of applications for credit, designed to ensure that the Bank's ascertainment and marketing efforts are effective in enabling the Bank to meet the credit needs of its entire delineated local community, including low- and moderate-income neighbor- {{2-28-95 p.C-3895}}hoods, which includes the Coral Gables, Florida community;
       (e) Requiring periodic submission of written reports to the Bank's board of directors by the individual or committee designated pursuant to paragraph 3(a) regarding the Bank's compliance with CRA and Part 345 of the Regulations, and all aspects of the Bank's CRA performance, which reports shall be included in the board of directors' minutes, together with a record of the board's consideration and discussion thereof;
       (f) Requiring at least an annual review by the entire board of directors of the Bank's compliance with CRA and Part 345 of the Regulations, and all aspects of the Bank's CRA performance, which review shall be reflected in the board of directors' minutes;
       (g) Providing for the periodic review of lending services in conjunction with the Bank community's credit needs and assessing the suitability of the Bank's products to meet its community's credit needs;
       (h) Providing for the periodic review of the Bank's lending policies, procedures, and practices to determine their effect on the geographic distribution of loans extended and denied;
       (i) Providing for the ongoing review of the Bank's policies, procedures, and training to ensure that they are not discriminatory and are a part of the Bank's planning process; and
       (j) Establishing and implementing a method of application comparison to ensure that nondiscriminatory practices and procedures are being consistently applied by Bank personnel during the credit decision process.

   [.4] 4. Following the effective date of this ORDER, the Bank shall send to its shareholders, or otherwise furnish a description of, this ORDER (a) in conjunction with the Bank's next shareholder communication and also (b) in conjunction with its notice or proxy statement preceding the Bank's next shareholder meeting. The description shall fully describe this ORDER in all material respects. The description and any accompanying communication, statement or notice shall be sent to the FDIC, Registration and Disclosure Section, 550 17th Street, N.W., 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.
   5. Within 90 days from the effective date of this ORDER, and within 15 days after the end of each calendar quarter thereafter while this ORDER remains in effect, the Bank shall furnish written progress reports to the Regional Manager detailing the form and manner of any actions taken to secure compliance with this ORDER and the results thereof. Such reports shall address each numbered paragraph of this ORDER and include a detailed summary, by item, of the reports furnished to the board of directors in accordance with the ORDER. Such reports may be discontinued when the corrections required by this ORDER have been accomplished and the Regional Manager has released the Bank in writing from making further reports. All progress reports and other written responses to this ORDER shall be reviewed by the board of directors of the Bank and made a part of the minutes of the appropriate board meeting.
   6. The provisions of this ORDER shall become effective ten (10) days from the date of its issuance and shall be binding upon the Bank, its institution-affiliated parties, and its successors and assigns. 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 at Atlanta, Georgia, this 15th day of December, 1994.
   Pursuant to delegated authority.

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