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FDIC Enforcement Decisions and Orders

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{{8-31-95 p.C-4052}}
   [11,190] In the Matter of John "Bud" Harlow Jr., Midland Bank of Kansas, Mission, Kansas; College Boulevard National Bank, Overland Park, Kansas; Premier Bank, Lenexa, Kansas, Docket No. FDIC-95-31e and FDIC-95-40b (6-28-95).

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution, or engaging in any appraisal practice without the prior consent of the FDIC.
   [.1] Prohibition—Participation in Conduct of Affairs
   [.2] Prohibition—Exercise of Voting Rights
   [.3] Prohibition—Appraisal Practice
   [.4] Affiliated Appraisers—Disclosure of Cease and Desist Order
   [.5] Cease and Desist Order—Disclosure of Documents to Demonstrate Compliance

{{8-31-95 p.C-4053}}
In the Matter of
JOHN "BUD" HARLOW, JR.,
individually and as an
institution-affiliated party of
Midland Bank of Kansas
(f/k/a
The Tower State Bank)
(In Receivership)Mission,Kansas
Midland Bank
Kansas City,Missouri
(Insured State Nonmember Banks)
College Boulevard National Bank
(f/k/a Midland Bank of Overland
Park, N.A.) (In Receivership)
Overland Park,Kansas
(Insured National Member Bank)
and
Premier Bank
(f/k/a Midland
Bank of Lenexa and Country
Hill Bank)
Lenexa,Kansas
(Insured State Member Bank)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
AND FOR OTHER AFFIRMATIVE
RELIEF

FDIC-95-31e
FDIC-95-40b

   John "Bud" Harlow, Jr. ("RESPONDENT"), having been advised of his right to a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION AND NOTICE OF CHARGES FOR AN ORDER FOR OTHER AFFIRMATIVE RELIEF AND NOTICE OF HEARING ("NOTICE") detailing the violations of law and regulations and unsafe or unsound practices for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND FOR OTHER AFFIRMATIVE RELIEF ("ORDER") may issue, and of his right to a hearing on such charges under sections 8(b) and 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §§ 1818(b) and 1818(e), and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND FOR OTHER AFFIRMATIVE RELIEF ("CONSENT AGREEMENT") with the authorized representatives of the Federal Deposit Insurance Corporation ("FDIC"), the Board of Governors of the Federal Reserve System ("FRB"), and the Office of the Comptroller of the Currency ("OCC") (collectively, the "FEDERAL BANKING AGENCIES"), whereby solely for the purpose of this proceeding and without admitting or denying any violations of law or regulations or unsafe or unsound practices, RESPONDENT consented to the issuance of this ORDER by the FEDERAL BANKING AGENCIES. The FEDERAL BANKING AGENCIES, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND FOR OTHER AFFIRMATIVE RELIEF

   NOW, THEREFORE, IT IS ORDERED that:

   [.1] 1. John "Bud" Harlow, Jr., is hereby 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);1;

    [.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);1;
       (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;
without the prior written consent 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).

   [.3] 2. RESPONDENT is further prohibited from directly or indirectly engaging in any appraisal practice, preparing or participating in the preparation of any appraisal report, accepting any appraisal assignment, or performing any other appraisal services


1 Subsection (b)(8), as referenced in section 8(e)(7)(A)(ii), 12 U.S.C. § 1818(e)(7)(A)(ii), has been redesignated as subsection (b)(9).
{{8-31-95 p.C-4054}}with respect to real estate, real property, or personal property for, or on behalf of, any financial institution or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A),1; without the prior written consent 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).

   [.4] 3. If RESPONDENT is affiliated with another appraiser on the effective date of this ORDER, or begins such affiliation after such effective date, RESPONDENT shall forthwith provide a copy of this ORDER to any such affiliated appraiser and provide the Regional Director of the FDIC's Kansas City Regional Office with written evidence of compliance with this provision.

   [.5] 4. RESPONDENT shall promptly provide any documents or other evidence reasonably requested by the FDIC to demonstrate compliance with the provisions of this ORDER.
   5. For purposes of this ORDER, the following definitions apply:

       (a) "appraisal" means the act or process of estimating value; an estimate of value;
       (b) "appraisal practice" means the work performed by appraisers, including appraisal, review, and consulting;
       (c) "report" means any communication, written or oral, of an appraisal, review, or analysis;
       (d) "review" mans the act or process of critically studying an appraisal report prepared by another;
       (e) "consulting" means the act or process of providing information, analysis of real estate data, and recommendations or conclusions on diversified problems in real estate, other than estimating value;
       (f) "real estate" means an identified parcel or tract of land, including improvements, if any;
       (g) "real property" means the interests, benefits, and rights inherent in the ownership of real estate;
       (h) "personal property" means identifiable portable and tangible objects which are considered by the general public as being "personal," e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate;
       (i) "appraisal assignment" means a person's employment or retention to act (or which would be perceived by third parties or the public as acting) as a disinterested third party to render an estimate of or opinion on the nature, quality, value, or utility of specified interests in or aspects of identified real estate;
       (j) "appraisal services" means services that are not encompassed within the definition of "appraisal assignment" but which relate in any way to the performance of, or consultation concerning, investment analyses, valuation reports, highest and best use studies, specialized marketing reports or studies, or market demand and economic feasibility studies; as well as any analyses, opinions and/or conclusions given in connection with real estate brokerage, mortgage banking, real estate counseling, or real estate tax counseling.
   6. All technical words or terms used in this ORDER, for which meanings are not specified or otherwise provided for by the provisions of this ORDER, shall, insofar as applicable, have meanings as defined in Chapters 1, 2, 3, or 5 of Title 12 of the Code of Federal Regulations or the Act, as such definitions may be amended after the execution of this ORDER, and any such technical words or terms used in this ORDER and undefined in said Code of Federal Regulations or the Act shall have meanings that accord with their best custom and usage in the banking industry.
   7. The CONSENT AGREEMENT is made a part hereof and incorporated herein by reference.
   This ORDER shall become effective 10 days from the date of its issuance.
   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 in writing by the FEDERAL BANKING AGENCIES.
   By Order of the Federal Deposit Insurance Corporation pursuant to delegated authority this 28th day of June, 1995.
   By Order of the Board of Governors of the Federal Reserve System this 18th day of May, 1995.
   By Order of the Office of the Comptroller of the Currency this 22nd day of May, 1995.

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