Each depositor insured to at least $250,000 per insured bank



Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders




FDIC Enforcement Decisions and Orders

ED&O Home | Search Form | Text Search | ED&O Help


{{10-31-00 p.C-4839}}

   [11,670A] In the Matter of Highland Community Bank, Chicago, Illinois, Docket No. 99-125oa (11-24-99)

   The FDIC issued a temporary order suspending the approval of a branch location.

   [.1] Bank Offices—New Openings Restricted

In the Matter of

HIGHLAND COMMUNITY BANK
CHICAGO, ILLINOIS
(Insured State Nonmember Bank)
TEMPORARY ORDERSUSPENDING APPROVALOF BRANCH

FDIC-99-125oa

   WHEREAS, on or about July 19, 1999, Highland Community Bank, Chicago, Illinois ("Applicant") filed an application with the Chicago Regional Office of the Federal Deposit Insurance Corporation ("FDIC"), requesting permission to establish a new branch located in Terminal #2 at O'Hare International Airport, Chicago, Illinois; and

   WHEREAS, in meetings with the FDIC's Chicago Regional Office, representatives of the Applicant indicated that the purpose of the new branch at Terminal #2 at O'Hare International Airport was to allow the Applicant to enter into new lines of business, specifically, to provide cash services to various retail businesses, concession vendors and parking lot vendors located at O'Hare International Airport; and

   WHEREAS, the FDIC's Chicago Regional Office reviewed and analyzed the application using the factors set forth in section 6 of the Federal Deposit Insurance Act, 12 U.S.C. § 1816; and

   WHEREAS, on August 8, 1999, the FDIC's Chicago Regional Office approved the Applicant's application to establish a branch at Terminal #2 at O'Hare International Airport, Chicago, Illinois; and

   WHEREAS, during the FDIC's examination of the Applicant, which began on September 20, 1999, the FDIC learned that
{{10-31-00 p.C-4840}}the Applicant's books and records were significantly out of balance such that the Applicant's books and records are so incomplete or inaccurate that the FDIC is unable to determine the financial condition of Applicant; and

   WHEREAS, during the FDIC's September 1999 examination, the FDIC learned that the Applicant's books and records have been out of balance since February of 1999, and that the Applicant's day-to-day transactions increase the number of items causing the Applicant's books to be out of balance; and

   WHEREAS, on November 8, 1999, pursuant to section 303.11(g)(1)(i) of the FDIC's Rules and Regulations, 12 C.F.R. § 303.11(g)(1)(i), the FDIC determined that there were material omissions relating to the Bank's condition and/or material changes in circumstances that occurred prior to the establishment of the new branch at Terminal #2 at O'Hare International Airport, specifically, that there are significant deficiencies in the Applicant's data processing and information systems causing the Applicant's books and records to be so incomplete or inaccurate that the FDIC is unable to determine the financial condition of the Applicant; and

   WHEREAS, on November 8, 1999, pursuant to section 303.11(g)(2)(ii) of the FDIC's Rules and Regulations, 12 C.F.R. § 303.11(g)(2)(ii), the FDIC determined that it is necessary to reevaluate the impact of the change in circumstance prior to the establishment of the branch at Terminal #2 at O'Hare International Airport and has determined that the establishment of the new branch at Terminal #2 at O'Hare International Airport may pose a threat to the interests of the Applicant's depositors or may threaten to impair public confidence in the Applicant; and

   WHEREAS, the FDIC has determined that, in light of these material omissions and/or material changes in circumstances, it must suspend its approval of Applicant's application for approval to establishment of a branch at Terminal #2 at O'Hare International Airport, Chicago, Illinois.

TEMPORARY ORDER

   [.1] After consideration and resolution, IT IS HEREBY ORDERED, that, pursuant to section 303.11(g)(2) of the FDIC's Rules and Regulations, 12 C.F.R. § 303.11(g)(2), that the approval of the Applicant's application to establish a branch be, and hereby is, TEMPORARILY SUSPENDED.

   IT IS FURTHER ORDERED that the effective date of this TEMPORARY ORDER SUSPENDING APPROVAL be, and hereby is, effective immediately upon issuance.

   IT IS FURTHER ORDERED that, Applicant may file a response within 15 days after its receipt of the TEMPORARY ORDER SUSPENDING APPROVAL setting forth an explanation of why the TEMPORARY ORDER SUSPENDING APPROVAL is not warranted and any other relevant information, mitigating circumstance, documentation or other evidence in support of Applicant's position.

   IT IS FURTHER ORDERED that if, at the end of the fifteen-day period, no response to the TEMPORARY ORDER SUSPENDING APPROVAL has been filed, this TEMPORARY ORDER SUSPENDING APPROVAL shall become effective as a Final Order.

HEARING

   IT IS FURTHER ORDERED that the Applicant may request an informal hearing pursuant to §§ 303.11(g)(3)(ii) and 303.10 of the FDIC's Rules and Regulations, 12 C.F.R. §§ 303.11(g)(3)(ii) and 303.10, on the suspension of the approval of the application to establish a branch. The Applicant, in its request for an informal hearing, must set forth the nature of the issues or facts to be presented and the reasons why written submissions would be insufficient to make an adequate presentation of those issues or facts to the FDIC. An informal hearing will be granted if the FDIC determines that written submissions would be insufficient or that a hearing otherwise would be in the public interest.

   The FDIC shall issue a notice of hearing if it grants the request for a hearing. The notice of hearing shall state the subject and date of the filing, the time and place of the hearing, and the issues to be addressed. If the FDIC determines to deny the request for an informal hearing, it will notify the Applicant requesting the hearing. A decision to deny an informal hearing request constitutes a final agency determination and is not appealable. An original and one copy of any request for an informal hearing and all other documents in this proceeding must be filed with the A.T. Dill, Senior Counsel, Supervision and Legislation Branch, Federal Deposit Insurance Corporation, 500 W. Monroe, Suite 3300, Chicago, Illinois 60661.

   The provisions of this TEMPORARY ORDER SUSPENDING APPROVAL OF BRANCH shall become effective as set forth above and shall remain in effect until terminated by the FDIC or until final disposition thereof.

   Pursuant to delegated authority.

   Dated at Washington, D.C., this 24th day of November, 1999.

ED&O Home | Search Form | Text Search | ED&O Help

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