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[¶11,827] In the Matter of Fort Morgan State Bank, Fort Morgan, Colorado, Docket
No. 01-063k (8-28-01)
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $4,200.
In the Matter of
FORT MORGAN STATE BANK
FORT MORGAN, COLORADO
(Insured State Nonmember Bank)
ORDER TO PAY
CIVIL MONEY PENALTY
FDIC-01-063k
Fort Morgan State Bank, Fort Morgan, Colorado ("Bank"), has
been advised of the right to receive a NOTICE OF ASSESSMENT OF CIVIL
MONEY PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, AND NOTICE OF
HEARING ("NOTICE") issued by the Federal Deposit Insurance
Corporation ("FDIC") detailing the violations for which a civil
money penalty may be assessed against the Bank pursuant to the Flood
Disaster Protection Act ("Flood Act"), as amended, 42 U.S.C.
§ 4012a, section 8(i)(2) of the Federal Deposit Insurance Act
("FDI Act") 12 U.S.C. § 1818(i)(2), and Part 339 of the FDIC
Rules and Regulations, 12 C.F.R. Part 339,
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and has been further advised
of the right to a hearing on the alleged charges under the Flood Act,
42 U.S.C. § 4012a(i), section 8(i) of the FDI Act, 12 U.S.C.
§ 1818(i), and the FDIC Rules of Practice and Procedure, 12 C.F.R.
Part 308.
Having waived those rights, the Bank entered into a STIPULATION AND
CONSENT TO ORDER TO PAY CIVIL MONEY PENALTY ("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
violations, the Bank consented and agreed to pay a civil money penalty
in the amount of $4,200.00 related to the Bank's failure to secure
flood insurance coverage on certain loans, its failure to notify
certain borrowers of the availability of flood insurance coverage, its
failure to maintain flood insurance coverage on certain loans, its
failure to notify certain borrowers of a lapse in flood insurance
coverage, and its failure to secure flood insurance coverage in the
proper amount on certain loans. All of the foregoing loans were secured
by improved real estate in areas determined by the Director of the
Federal Emergency Management Agency to have special flood hazards.
The FDIC considered the matter and determined it had reason to believe
that the Bank has engaged or participated in violations of law or
regulations for which a civil money penalty of $4,200.00 is appropriate
to be assessed against the Bank, pursuant to the Flood Act, 42 U.S.C.
§ 4012a, section 8(i)(2) of the FDI Act, 12 U.S.C. § 1818(i)(2),
and Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339.
ORDER TO PAY
IT IS HEREBY ORDERED that Fort Morgan State Bank, Fort Morgan,
Colorado, be, and hereby is, assessed a civil money penalty of
$4,200.00, pursuant to the Flood Act, 42 U.S.C. § 4012a, section
8(i)(2) of the FDI Act, 12 U.S.C. § 1818(i)(2), and Part 339 of the
FDIC Rules and Regulations, 12 C.F.R. Part 339, the receipt of which is
acknowledged.
This Order to Pay shall be effective upon issuance.
Pursuant to delegated authority.
Dated at Washington, D.C., this 28th day of August, 2001.