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[¶11,890] In the Matter of DeKalb Community Bank, Smithville, Tennessee, Docket
No. 01-158k (1-16-02).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $1,600.
In the Matter of
DEKALB COMMUNITY BANK
SMITHVILLE, TENNESSEE
(Insured State Nonmember Bank)
ORDER TO PAY
FDIC-01-158k
DeKalb Community Bank, Smithville, Tennessee ("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, and has been further advised
of the right to a hearing on the alleged charges under the Flood Act,
42 U.S.C. §4012a(f), 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 $1,600.00 related to violating the National Flood
Insurance of 1968 and the Flood Disaster Protection Act of 1973, as
amended by the National Flood Insurance Reform Act of 1994, 42 U.S.C.
§§ 4001-4129, and Part 339 of the FDIC Rules and Regulations, 12
C.F.R. Part 339, when it made or renewed eight residential mortgage
loans secured by property located in Standard Flood Hazard Areas
(SFHAs) without having obtained the required flood insurance coverage
in violation of 42 U.S.C. §40112a(b)(1) and 12 C.F.R. §339.3(a),
and when it failed to provide a timely written notice to eight
borrowers as to whether or not flood insurance was available for the
collateral securing certain residential mortgage loans secured by
property located in SFHAs in violation of 42 U.S.C. §4012a(e)(1) and
(2) and 12 C.F.R. §339.7.
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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 $1,600.00 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 the Bank be, and hereby is, assessed a
civil money penalty of $1,600.00 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 16th day of January, 2002.
