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   [11,471] In the Matter of Walthall Citizens Bank, Tylertown, Mississippi, Docket No. 97-061b (1-27-98)

   Bank to cease and desist from such unsafe and unsound practices. (This order was terminated by order of the FDIC dated 6-21-02; see ¶16,314.)

   [.1] Management—Qualifications Specified
   [.2] Capital—Increase Required
   [.3] Loan Loss Reserve—Establishment of or Increase in Required
   [.4] Profit Plan—Preparation of Plan Required
   [.5] Assets—Adversely Classified Assets—Reduction Required
   [.6] Loan Policy—Preparation or Revision of Policy Required
   [.7] Loans—Review Program
   [.8] Violations of Law—Correction of Violations Required
   [.9] Asset/Liability Management—Preparation or Revision of Asset/ Liability Management Policy Required
   [.10] Business Plan—Preparation Required
   [.11] Reports of Condition and Income—Amendment Required
   [.12] Shareholders—Disclosure of Cease and Desist Order Required

In the Matter of
WALTHALL CITIZENS BANK
TYLERTOWN, MISSISSIPPI
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-97-061B

   Walthall Citizens Bank, Tylertown, Mississippi, ("Bank"), having been advised of its right to a Notice of Charges and of Hearing detailing the unsafe or unsound banking practices and violations of law and/or regulations alleged to have been committed by the Bank and of its right to a hearing on the alleged charges under section 8(b)(1) of the Federal Deposit Insurance 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 counsel for the Federal Deposit Insurance Corporation ("FDIC"), dated November 20, 1997, whereby solely for the purpose of this proceeding and without admitting or denying the alleged charges of unsafe or unsound banking practices and violations of law and/or 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 law and/or 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 directors, officers, employees, agents, successors, assigns, and other institution-affiliated parties of the Bank, cease and desist from the following unsafe or unsound banking practices and violations:

       (a) operating with inadequate capital in relation to the kind and quality of assets held by the bank and in relation to the rapid growth experienced by the Bank in the previous three years;
       (b) operating with a large volume of poor quality loans;
       (c) operating with an inadequate loan valuation reserve;
       (d) operating with inadequate internal routine and controls policies;
       (e) operating in violation of section 23A of the Federal Reserve Act, 12 U.S.C. § 371c, made applicable to state nonmember banks by section 18(j)(1) of the Act, 12 U.S.C. § 1828(j)(1); section 22(h) of the Federal Reserve Act, as amended, 12 U.S.C. § 375b, and sections 215.4(e), 215.5(c)(1) and (2), and 215.4(d) of Regulation O of the Board of Governors of the Federal Reserve System, 12 C.F.R. §§ 215.4(e), 215.5(c)(1) and (2), made ap- {{8-31-02 p.C-4464}}plicable to state nonmember banks by section 19(j)(2), 12 U.S.C. § 1828(J)(2); Section 337.3(c)(2) of the FDIC's Rules and Regulations, 12 C.F.R. § 337.3(c)(2); Section 221.3(b) of the Federal Reserve Board Regulations (Regulation U), 12 C.F.R. § 221.3(b); Section 103.22(2) of the Treasury Department Financial Recordkeeping Regulations.
       (f) operating with management whose policies and practices are detrimental to the Bank and jeopardize the safety of its deposits; and
       (g) operating with a board of directors which has failed to provide adequate supervision over and direction to the active management of the Bank.
   IT IS FURTHER ORDERED that the Bank take affirmative action as follows:

   [.1] 1. (a) During the life of this ORDER, the Bank shall have management qualified to restore the Bank to a sound condition. Such management shall include a chief executive officer and an experienced senior lending officer responsible for supervising the Bank's overall lending function.
   (b) Present management shall be assessed on its ability to:

       (i) Comply with the requirements of this ORDER;
       (ii) Improve and thereafter maintain the Bank in a safe and sound condition, including asset quality, capital adequacy, liquidity adequacy, and earnings adequacy; and
       (iii) Comply with all applicable State and Federal laws and regulations.
   (c) (i) During the life of this ORDER, the Bank shall notify the Regional Director of the Memphis Regional Office ("Regional Director") and the Commissioner of Banking for the State of Mississippi ("Commissioner") in writing of any resignations and/or terminations of any members of its board of directors and/or any of its senior executive officer(s) within 15 days of the event.
       (ii) The Bank shall comply with section 32 of the Act, 12 U.S.C. § 1831(i), and shall notify the Regional Director and the Commissioner in writing, at least 30 days prior to an individual assuming a new position, or of any additions to its board of directors and senior executive officers.
   (d) (i) Within 90 days from the effective date of this ORDER, the board of directors shall prepare and forward, to each shareholder of the Bank, a list of potential candidates for nomination to the Bank's board of directors at the next meeting of shareholders of the Bank at which directors are to be elected. The list of candidates shall include at least two additional individuals who are independent with respect to the Bank. The actions taken in identifying potential candidates, including any communication with such individuals, shall be documented and made part of the minutes of the board of directors. Copies of these board minutes shall be provided to the Regional Director within 120 days from the effective date of this ORDER.
       (ii) At the next meeting of the shareholders of the Bank, at which directors of the Bank are to be elected, and at each succeeding meeting of the shareholders at which directors are to be elected, the members of the board of directors who are also shareholders shall nominate and support the election of at least two additional candidates to the board of directors who are independent with respect to the Bank and who have agreed to stand for election to the board of directors.
   (e) Within 30 days from the effective date of this ORDER, the board of directors shall establish a committee of the board of directors with the responsibility to ensure that the Bank complies with the provisions of this ORDER. At least two-thirds of the members of such committee shall be independent, outside directors as defined herein. The committee shall report monthly to the entire board of directors, and a copy of the report and any discussion relating to the report or the ORDER shall be included in the minutes of the board of directors. Nothing contained herein shall diminish the responsibility of the entire board of directors to ensure compliance with the provisions of this ORDER. The Bank's entire board of directors shall serve as the compliance committee until the election of outside directors as required by paragraph 1(d).
   (f) For the purposes of this ORDER, and "outside director" shall be an individual:
       (i) who shall not be employed, in any capacity, by the Bank or its affiliates other than as a director of the Bank or an affiliate;
       (ii) Who shall not own or control more than 5 percent of the voting stock of the Bank or its holding company;
       (iii) Who shall not be indebted to the {{3-31-98 p.C-4465}}Bank or any of its affiliates in an amount greater than 5 percent of the Bank's equity capital and reserves;
       (iv) Who shall not be related to any directors, principal shareholders of the Bank or affiliates of the Bank; and
       (v) Who shall be a resident of, or engage in business in, the Bank's trade area.

   [.2] 2. (a) By June 30, 1998, the Bank shall achieve and maintain Tier I capital equal to or greater than Seven (7.0%) percent of the Bank's Part 325 total assets. By December 31, 1998, the Bank shall achieve and maintain Tier I capital equal to or greater than Seven and one-half (7.5%) percent of the Bank's Part 325 total assets. Thereafter, during the life of this ORDER, the Bank shall maintain Tier I capital equal to or greater than Seven and one-half (7.5%) percent of the Bank's Part 325 total assets.
   (b) Any increase in Tier I capital necessary to meet the ratio required by Paragraph 2(a) of this ORDER may be accomplished by the following:
       (i) The sale of new securities in the form of common stock; or
       (ii) The direct contribution of cash by the directors, or
       (iii) Any other method acceptable to the FDIC.
   (c) If all or part of the increase in Tier I capital is required by Paragraph 2(a) of this ORDER is accomplished by the sale of new securities, the board of directors of the bank shall adopt and implement a plan for the sale of such additional securities, including the voting of any shares owned or proxies held or controlled by them in favor of the plan. Should the implementation of the plan involve a public distribution of the Bank's securities (including a distribution limited only to the bank's existing shareholders), the Bank shall prepare offering materials fully describing the securities being offered, including an accurate description of the financial condition of the Bank and the circumstances giving rise to the offering, and any other material disclosures necessary to comply with the Federal securities laws. Prior to the implementation of the plan and, in any event, not less than 20 days prior to the dissemination of such materials, the plan and any materials used in the sale of securities shall be submitted to the FDIC, Registration and Disclosure Unit, 550 17th Street, N.W., Room F-250, Washington, D.C. 20429 for review. Any changes requested to be made in the plan or materials by the FDIC shall be made prior to their dissemination. If the Regional Director allows any part of the increase in Tier I capital to be provided by the sale of noncumulative perpetual preferred stock, then all terms and conditions of the issue, including but not limited to those terms and conditions relative to the interest rate and any convertibility factor, shall be presented to the Regional Director for prior approval.
   (d) In complying with the provisions of Paragraph 2 of this ORDER, the Bank shall provide to any subscriber and/or purchaser of the Bank's securities written notice of any planned or existing development or other changes which are materially different from the information reflected in any offering materials used in connection with the sale of Bank securities. The written notice required by this paragraph shall be furnished within 10 days from the date such material development or change was planned or occurred, whichever is earlier, and shall be furnished to every subscriber and/or purchaser of the Bank's securities who received or was tendered the information contained in the Bank's original offering materials.
   (e) For purposes of this ORDER the terms "Tier I capital" and "Part 325 total assets" shall have the meanings ascribed to them in Part 325 of the FDIC's Rules and Regulations, respectively subsections 325.2(t), and 325.2(v), 12 C.F.R. §§ 325.2(t) and (v).

   [.3] 3. (a) Within 30 days from the effective date of this ORDER, the Bank shall establish and shall thereafter maintain, through charges to current operating income, an adequate valuation reserve for loan and lease losses. In determining the adequacy of the valuation reserve for loan and lease losses, the board of directors of the Bank shall at a minimum consider the following:

       (i) Prevailing instructions contained in the Federal Financial Institutions Examination Council booklet entitled "Instructions—Consolidated Reports of Condition and Income";
       (ii) The volume and mix of the existing loan portfolio, including the volume and severity of nonperforming loans and adversely classified credits, as well as an analysis of net charge-offs experienced on previously adversely classified loans;
    {{3-31-98 p.C-4466}}
       (iii) The extent to which loan renewals and extensions are used to maintain loans on a current basis and the degree of risk associated with such loans;
       (iv) The trend in loan growth, including any rapid increase in loan volume within a relatively short time period;
       (v) General and local economic conditions affecting the collectibility of the bank's loans;
       (vi) Previous loan loss experienced by loan type, including the trend of net chargeoffs as a percent of average loans over the past several years;
       (vii) Off balance sheet credit risks;
       (viii) The overall risk associated with each concentration of credit together with the degree of risk associated with each related individual borrower; and
       (ix) Any other factors appropriate in determining future valuation reserves.
   (b) Prior to the submission of any Report of Condition or Report of Income, the board of directors of the Bank shall review the adequacy of the Bank's valuation reserve for loan and lease losses. The minutes of the board meetings at which each review is undertaken shall indicate the results of the review, the amount of any increase to the reserve, and the basis for the amount of the valuation reserve. The criteria for the review shall be as set forth in Paragraph 3.
   (c) Notwithstanding the provisions of Paragraph 3(a) and 3(b) above, the Bank shall achieve, within 30 days of the effective date of this ORDER, a valuation reserve for loan and lease losses, after charge-off of loans classified "Loss" as required in Paragraph 5(a) below, of not less than $2,015,000.
   (d) In the event that the Regional Director and/or the Commissioner determine, at subsequent examinations and/or visitations, that the Bank's valuation reserve for loan and lease losses is inadequate, the Bank shall amend its Consolidated Reports of Condition and Income in accordance with Paragraph 13.
   (e) The requirements of Paragraph 3(c) above are not to be construed as a standard for future operations.

   [.4] 4. (a) Within 90 days from the effective date of this ORDER, and within the first 30 days of each calendar year thereafter, the board of directors shall develop a written profit plan consisting of goals and strategies for improving the earnings of the Bank for each calendar year. The written profit plan shall include, at a minimum:

       (i) Identification of the major areas in, and means by which, the board of directors will seek to improve the Bank's operating performance;
       (ii) Realistic and comprehensive budgets;
       (iii) A budget review process to monitor the income and expenses of the Bank to compare actual figures with budgetary projections on not less than a quarterly basis; and
       (iv) A description of the operating assumptions that form the basis for, and adequately support, major projected income and expense components.
   (b) Such written profit plan and any subsequent modification thereto shall be submitted to the Regional Director and the Commissioner for review and comment. No more than 30 days after the receipt of any comment from the Regional Director, the board of directors shall approve the written profit plan which approval shall be recorded in the minutes of the board of directors. Thereafter, the Bank, its directors, officers, and employees shall follow the written profit plan and/or any subsequent modification.

   [.5] 5. (a) Within 30 days from the effective date of this ORDER, the Bank shall reduce from its books, by charge-off or collection, all assets classified "Loss" as of March 31, 1997, that have not been previously collected or charged-off. Reduction of these assets through proceeds of other loans made by the Bank is not considered collection for purpose of this paragraph.
   (b) Within 30 days from the effective date of this ORDER, the Bank shall submit a plan acceptable to the Regional Director and the Commissioner to reduce from its books, by charge-off or collection, all assets classified "Substandard" as of March 31, 1997, that have not been previously collected or charged-off. Reduction of these assets through proceeds of other loans made by the Bank is not considered collection for the purpose of this paragraph.
   (c) In the absence of an acceptable plan as required by paragraph 5(b):

       (1) within 90 days from the effective date of this ORDER, the Bank shall have reduced the assets classified "Substandard" as of March 31, 1997, to not more than $8,298,500.
    {{3-31-98 p.C-4467}}
       (2) within 180 days from the effective date of this ORDER, the Bank shall have reduced the assets classified "Substandard" as of March 31, 1997, to not more than $7,113,000.
       (3) within 270 days from the effective date of this ORDER, the Bank shall have reduced the assets classified "Substandard" as of March 31, 1997, to not more than $5,927,500.
       (4) within 360 days from the effective date of this ORDER, the Bank shall have reduced the assets classified "Substandard" as of March 31, 1997, to not more than $4,742,000.
   (d) The requirements of Paragraphs 5(a), 5(b), 5(c)(1), (2), (3), and (4) are not to be construed as standards for future operations and, in addition to the foregoing, the Bank shall eventually reduce the total of all adversely classified assets. As used in Paragraphs 5(a), 5(b), 5(c)(1), (2), (3), and (4), and 5(d) the word "reduce" means (i) to collect, (ii) to charge-off, or (iii) to sufficiently improve the quality of assets adversely classified to warrant removing any adverse classification, as determined by the FDIC.
   6. (a) Beginning with the effective date of this ORDER, the Bank shall not extend, directly or indirectly, any additional credit to, or for the benefit of, any borrower who has a loan or other extension of credit with the Bank that has been charged-off, in whole or in part, "Loss" and is uncollected. The requirements of this paragraph shall not prohibit the Bank from renewing (after collection in cash of interest due from the borrower) any credit already extended to any borrower.
   (b) Beginning with the effective date of this ORDER, the Bank shall not make any further extensions of credit, directly or indirectly, to any borrower whose loans are adversely classified "Substandard" as of March 31, 1997, without prior approval by the Bank's board of directors after the board's affirmative determination, as reflected in the minutes of the meeting, that the extension of credit is in full compliance with the Bank's loan policy, that the extension of credit is necessary to protect the Bank's interest or is adequately secured, that credit analysis has determined the customer to be creditworthy, and that all necessary loan documentation is on file, including current financial and cash flow information and satisfactory appraisal, title and lien documents.
   (c) Within 180 days from the effective date of this ORDER (unless within 60 days an alternative timetable or proposal is submitted by the Bank and approved in writing by the Regional Director and the Commissioner), the Bank shall reduce each loan concentration as of March 31, 1997, to an amount which shall be less than 25 percent of the Bank's Tier I capital for each individual concentration. In addition, the Bank shall not make any new extensions of credit, directly or indirectly, to any borrower whose loans in the aggregate equal 25 percent or more of the Bank's Tier I capital.

   [.6] 7. (a) Within 60 days from the effective date of this ORDER, the Bank shall revise, adopt, and implement written lending and collection policies to provide effective guidance and control over the Bank's lending function, which policies shall be amended to include the specific matters referred to in paragraphs 7(b) and 7(c) below. Such policies and their implementation shall be in a form and manner acceptable to the Regional Director and the Commissioner as determined at subsequent examinations and/or visitations.
   (b) With respect to concentrations of credit, the Bank shall, at a minimum:

       (i) Establish guidelines regarding portfolio mix, loan limits with respect to any industry;
       (ii) Consider management expertise in the industry;
       (iii) Establish guidelines to properly track and monitor the economic and financial condition of the industry; and
       (iv) Establish guidelines for taking appropriate action, if necessary, to eliminate any concentrations of credit that exceed the Bank's guidelines.
   (c) The Bank's loan policy shall be amended to:
       (i) Address appropriate loan-to-value ratios for loans that include a mix of real estate, machinery and equipment, and/or cattle as collateral. In addition, loan to value ratios of stock loans in excess of $100,000 shall be amended to conform to the Federal Reserve Board's Regulation U, 12 C.F.R. § 221.
       (ii) Establish underwriting guidelines for {{3-31-98 p.C-4468}}the extension and renewal of single pay unsecured loans.
       (iii) Establish limitations and underwriting procedures for the extension of credit through overdrafts.
       (iv) Establish additional guidelines for loans secured by inventory and accounts receivable with respect to: maturity dates, repayment methods, loan-to-value ratios, and aging of accounts receivable, ledgering of accounts, and procedures to ensure the distribution of loan proceeds does not exceed the agreed loan-to-value ratio.
       (v) Establish loan-to-value ratios for timber loans.
       (vi) Establish the Bank's normal trade area and the circumstances under which the Bank may extend credit outside of such area. Establish the types of loans, the percentage of loans, loan-to-value ratio, loan administration procedures, and procedures for monitoring market conditions in such an area.

   [.7] 8. (a) Within 30 days of the effective date of this ORDER, the board shall establish an internal loan review and grading system ("System") to periodically review the Bank's loan portfolio and identify and categorize problem credits. At a minimum the System shall provide for:
       (i) The identification of the overall quality of the loan portfolio;
       (ii) The identification and amount of each delinquent loan;
       (iii) An identification or grouping of loans that warrant the special attention of management;
       (iv) For each loan identified, a statement of the amount and an indication of the degree of risk that the loan will not be fully repaid according to its terms and the reason(s) why the particular loan merits special attention;
       (v) An identification of credit and collateral documentation exceptions;
       (vi) The identification and status of each violation of law, rule or regulation;
       (vii) An identification of loans not in conformance with the Bank's lending policy, and exceptions to the Bank's lending policy;
       (viii) An identification of insider loan transactions; and
       (ix) A mechanism for reporting periodically, no less than quarterly, to the board of directors on the status of each loan identified and the action(s) taken by management.
   (b) A copy of the reports submitted to the board, as well as documentation of the action taken by the Bank to collect or strengthen assets identified as problem credits, shall be kept with the minutes of the board of directors.
   (c) Within 60 days from the effective date of this ORDER, the Bank's board of directors shall establish and appoint a loan committee to review and approve in advance all extensions of credit and/or renewals that when aggregated with all other extensions of credit to that borrower, either directly or indirectly, exceed or would exceed $100,000. The review should include financial, income, and cash flow information, collateral values and lien information, repayment terms, past performance by the borrower, the purpose of the extension, and whether the extension complies with the Bank's loan policy and applicable laws, rules and regulations. The loan committee shall meet at least twice monthly and shall maintain written minutes which detail the information reviewed by the loan committed, its conclusions, approvals, denials, recommendations, and reasons for the approval of any credit which does not fully comply with the review requirements set forth in this paragraph. At least monthly, the loan committee shall submit its written minutes to the board of directors. Prior to the election of board members required by Paragraph 1(d) of this ORDER, the loan committee shall be composed of existing Bank directors. Subsequent to the election of board members required by Paragraph 1(d) of this ORDER, if at least two independent outside directors, as defined in Paragraph 1(f) of this ORDER, are elected then at least two independent, outside directors shall be members of the loan committee.
   9. (a) Within 60 days of the effective date of this ORDER, the Bank shall establish a loan review program ("Program") to review the Bank's loan documentation for compliance with the Bank's loan policy, and correct such errors with respect to such documentation prior to disbursement of the loan proceeds on any loan.
   (b) The Program shall provide that the reviewer of each loan documentation shall be an individual(s), other than the preparer of such documents, knowledgeable in loan {{4-30-98 p.C-4469}}documentation requirements and procedures, as well as applicable State and Federal laws and regulations.
   (c) The Program shall provide for a monthly written Report to be furnished to the bank's board of directors which shall identify the number of transactions reviewed and the number of transactions found to contain document deficiencies.
   (d) Within 60 days from the effective date of this ORDER, the Bank shall correct the technical exceptions on pages 43, 44, 45 and 46 of the FDIC's Report of Examination of the Bank as of March 31, 1997.

   [.8] 10. Within 30 days from the effective date of this ORDER, the Bank shall eliminate and/or correct all violations of law which are set out on pages 22 and 23 of the Report of Examination of the Bank as of March 31, 1997. In addition, the Bank shall henceforth comply with all applicable laws and regulations.

   [.9] 11. Within 60 days from the effective date of this ORDER, the Bank shall formulate and adopt a new written asset/liability management policy. Such policy shall include the establishment of acceptable ranges of ratios in the following areas: loan to deposit targets and liquid assets to total assets. In addition, the asset/liability policy shall establish liquidity goals and funding sources. The written asset/liability policy shall be submitted to the Regional Director and the Commissioner for review and comment.

   [.10] 12. (a) Within 90 days from the effective date of this ORDER, the board of directors of the Bank shall develop and submit to the Regional Director and the Commissioner a business plan that contains, at a minimum:

       (i) a statement of the board's general business philosophy;
       (ii) defines the board's business vision and goals;
       (iii) details the board's long term (within one to three years) and short term (within six months) objectives and strategies as to anticipated activities, asset/liability mix, loan and deposit pricing, and growth; and
       (iv) contains projections as to growth, capital, deposit sources, and general investment plans.
   (b) A copy of the business plan shall be submitted to the Regional Director and the Commissioner for review and comment. Within 30 days from the receipt of any comment, and after consideration of such comment, the board of directors shall approve the business plan which approval shall be recorded in the minutes of the meeting of the board of directors. It shall remain the responsibility of the board to fully implement the business plan within the specified time frames. In the event the business plan or any portion thereof is not implemented, the board shall immediately advise the Regional Director and the Commissioner, in writing, of specific reasons for deviating from the business plan.
   (c) The board shall assess, on at least a quarterly basis, the Bank's performance in relation to its business plan, shall determine the cause and implications of any substantial deviations therefrom, and shall amend the business plan on an ongoing basis as appropriate. The results of the board's assessment shall be recorded in the minutes of the meeting of the board of directors.

   [.11] 13. (a) Within 30 days from the effective date of this ORDER, the Bank shall review all Consolidated Reports of Condition and Income filed with the FDIC on and after March 31, 1997, and shall amend and file with the FDIC amended Consolidation Reports of Condition and Income which accurately reflect the financial condition of the Bank as of the date of each such Report.
   (b) In addition to the above and during the life of this ORDER, the Bank shall file with the FDIC Consolidated Reports of Condition and Income which accurately reflect the financial condition of the Bank as of the reporting period. In particular such Reports shall include any adjustment in the Bank's books made necessary or appropriate as a consequence of any State or FDIC examination of the Bank during that reporting period.
   14. While this ORDER is in effect, the Bank shall not declare or pay cash dividends on its capital stock without the prior written approval of the Regional Director and the Commissioner.

   [.12] 15. Following the effective date of this ORDER, the Bank shall send to its shareholders or otherwise furnish a description of this ORDER, (i) in conjunction with the Bank's next shareholder communication, and also (ii) in conjunction with its notice or proxy statement preceding the Bank's shareholder meeting. The description shall fully {{4-30-98 p.C-4470}}describe the ORDER in all material respects. The description and any accompanying communication, statement, or notice shall be sent to the FDIC, Division of Supervision, Registration and Disclosure Unit, 550 17th Street, N.W., Room F-250, Washington, D.C. 20429 for review at least 20 days prior to the 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.
   16. On the fifteenth day of the second month following the effective date of this ORDER, and on the fifteenth day of every third month thereafter, the Bank shall furnish written progress reports to the Regional Director and the Commissioner detailing the form and manner of any actions taken to secure compliance with this ORDER and the results thereof. Such reports may be discontinued when the corrections required by this ORDER have been accomplished and the Regional Director has released the Bank in writing from making further reports.
   The provisions of this ORDER shall be binding upon the Bank, its directors, officers, employees, agents, successors, assigns, and other institution-affiliated parties of the Bank.
   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 by the FDIC.
   Pursuant to delegated authority.
   Dated 1-27-98

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