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   [11,811] In the Matter of Jack O. Grace, BestBank, Boulder, Colorado, Docket No. 98-110e (6-27-01)

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without the prior written approval of the FDIC.

   [.1] Prohibition, Removal or Suspension—Prohibition From—Participation in Conduct of Affairs

   [.2] Prohibition, Removal or Suspension—Prohibition From—Voting Rights, Exercise of

In the Matter of
EDWARD P. MATTAR, III,
T. ALAN BOYD,
and JACK O.GRACE

individually and as
institution-affiliated parties of
BEST BANK
BOULDER, COLORADO
(Insured State Nonmember Bank—In Receivership)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION

FDIC-98-110e

   Jack O. Grace ("Respondent") has received a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the unsafe or unsound practices for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may issue, and has been further 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), and the FDIC's Rules of Practice and Procedure, 12 C.F.R. Part 308. Having waived those rights, the 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 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) The Respondent engaged or participated in unsafe or unsound practices as an institution-affiliated party of BestBank, Boulder, Colorado;

   (b) By reason of such unsafe or unsound practices, the Bank suffered financial loss or other damage, and the interests of the Bank's depositors have been prejudiced; and

   (c) Such unsafe or unsound practices involved Respondent's continuing disregard for the safety or soundness of the Bank.

   The FDIC further determined that such unsafe or unsound practices demonstrate the Respondent's unfitness to serve as a director, officer, person participating in the conduct of the affairs or as an institution-affiliated party of the Bank, 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).

   The FDIC, therefore, hereby accepts the CONSENT AGREEMENT and now issues the following:
{{8-31-01 p.C-5161}}

ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION

   1. Jack O. Grace 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:

   [.1](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 voting for a director, or serving or acting as an institution-affiliated party;

   except that Respondent Grace will be permitted to own a less than .1% (one-tenth of one per cent) shareholder interest in a publicly-held bank holding company, provided that the company's shares trade on the NYSE or the AMEX/NASDAQ exchange.

   2. This ORDER will become effective upon 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.

   Pursuant to delegated authority.

   Dated this 27th day of June, 2001.

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