(This order was terminated by order of the FDIC dated 1-15-04; see ¶16,368.)
A cease and desist order was issued, based on findings by the FDIC that
it had reason to believe that respondent had engaged in unsafe and
unsound practices.
[.1] CapitalMaintain Tier 1 Capital
[.2] ManagementQualifications Specified
[.3] ManagementManagement Plan Required
[.4] DividendsDividends Restricted
[.5] LoansExtensions of CreditTo Borrowers with Existing Adversely
Classified Credits
[.6] AssetsCharge-off or Collection
[.7] Loan Loss ReserveEstablishment of or Increase Required
[.8] LoansRisk PositionReduction of Adversely Classified Lines of Credit
Required
[.9] Technical ExceptionsCorrection of Technical Exceptions Required
{{11-30-02 p.C-5595}}
[.10] LoansOverdueWritten Plan for Reduction Required
[.11] Loan PolicyIndependent Review Required
[.12] Loan CommitteeDuties Specified
[.13] Loan PolicyPreparation or Revision of Policy Required
[.14] Violations of LawCorrection of Violations Required
[.15] AuditProgram Required
[.16] Bank OperationsInternal Controls, Correction of Weaknesses Required
[.17] Profit Plan and BudgetPreparation of Required
[.18] Reconciliation of Books and RecordsMaintain
[.19] ShareholdersDisclosure of Cease and Desist Order Required
[.20] Board of DirectorsProgram to Review Compliance with Cease and Desist
Order Required
In the Matter of
RARITAN STATE BANK
RARITAN, ILLINOIS
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-02-090b
OBRE No. 2002-BBTC-38
Raritan State Bank, Raritan, Illinois ("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 or
regulation alleged to have been committed by the Bank, and of its right
to a hearing on the charges under section 8(b) of the Federal Deposit
Insurance Act ("Act"), 12 U.S.C. §1818(b), and under 38 Ill.
Adm. Code, section 392.30, regarding hearings before the Office of
Banks and Real Estate for the State of Illinois ("OBRE"), and
having waived those rights, entered into a STIPULATION AND CONSENT TO
THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT
AGREEMENT") with representatives of the Federal Deposit Insurance
Corporation ("FDIC") and OBRE dated September 24, 2002, whereby,
solely for the purpose of this proceeding and without admitting or
denying the charges of unsafe or unsound banking practices and
violations of laws and regulations, the Bank consented to the issuance
of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC and OBRE.
The FDIC and OBRE considered the matter and determined that there was
reason to believe that the Bank had engaged in unsafe or unsound
banking practices and had violated laws or regulations. The FDIC and
OBRE, therefore, accepted the CONSENT AGREEMENT and issued the
following:
ORDER TO CEASE AND DESIST
IT IS HEREBY ORDERED, that the Bank, its institution-affiliated
parties, as that term is defined in section 3(u) of the Act, 12 U.S.C.
§1813(u), and its successors and assigns, cease and desist from the
following unsafe or unsound banking practices and violations of laws
and regulations:
A. Engaging in hazardous lending and lax collection practices,
including, but not limited to:
The failure to obtain proper loan documentation;
The failure to obtain adequate collateral;
The failure to establish and monitor collateral margins of secured
borrowers;
The failure to establish and enforce adequate loan repayment programs;
The failure to obtain current and complete financial information; and
Other poor credit administration practices.
B. Operating with an inadequate level of capital protection for the
kind and quality of assets held.
C. Violating laws and regulations, including:
Section 16(6) of the Illinois Banking Act, 205 ILCS 5/16(6), which
requires
{{11-30-02 p.C-5596}}
suitable records be kept of all bank transactions.
Section 215.5(d)(4) of Regulation O of the Board of Governors of
the Federal Reserve System ("Regulation O"), 12 C.F.R.
§215.5(d)(4), which requires that a "due and payable" clause
be included in certain extensions of credit to executive officers.
Section 326.8 of the FDIC Rules and Regulations, 12 C.F.R. §326.8,
which requires each bank to develop a Bank Secrecy Act compliance
program.
Section 450.4 of the Department of the Treasury regulation implementing
the Government Securities Act, 17 C.F.R. §450.4, which requires a
bank to comply with certain custodial holding requirements.
D. Operating with an excessive level of adversely classified
assets.
E. Operating with inadequate allowance for loans and lease losses for
the volume, kind, and quality of loans and leases held.
F. Operating with inadequate internal routines and controls.
G. Operating with an inadequate audit program.
H. Failing to keep accurate books and records.
I. Operating with management whose policies and practices are
detrimental to the Bank and jeopardize the safety of its deposits.
J. Operating with a board of directors which has failed to provide
adequate supervision over and direction to the management of the Bank
to prevent unsafe or unsound banking practices and violations of law or
regulation.
K. Operating with inadequate earnings to maintain acceptable levels of
capital.
IT IS FURTHER ORDERED, that the Bank, its institution-affiliated
parties, and its successors and assigns, take affirmative action as
follows:
[.1]1. (a) Within 30 days from the last day of each calendar quarter
following the effective date of this ORDER, the Bank shall determine
from its Report of Condition and Income its level of Tier 1 capital as
a percentage of its total assets ("capital ratio") for that
calendar quarter. If the capital ratio is less than 7.0 percent, the
Bank shall, within 60 days of the date of the required determination,
increase its capital ratio to not less than 7.0 percent calculated as
of the end of that preceding quarterly period. For purposes of this
ORDER, Tier 1 capital and total assets shall be calculated in
accordance with Part 325 of the FDIC Rules and Regulations ("Part
325"), 12 C.F.R. Part 325.
(b) Any such increase in Tier 1 capital may be accomplished by the
following:
(i) The sale of common stock and noncumulative perpetual
preferred stock constituting Tier 1 capital under Part 325; or
(ii) The elimination of all or part of the assets classified
"Loss" as of March 4, 2002, without loss or liability to the
Bank, provided any such collection on a partially charged-off asset
shall first be applied to that portion of the asset which was not
charged off pursuant to this ORDER; or
(iii) The collection in cash of assets previously charged off; or
(iv) The direct contribution of cash by the directors and/or the
shareholders of the Bank; or
(v) Any other means acceptable to the Regional Director of the Chicago
Regional Office of the FDIC ("Regional Director") and the
Commissioner of Banks and Real Estate for the State of Illinois
("Commissioner"); or
(vi) Any combination of the above means.
(c) If all or part of the increase in capital required by this
paragraph is to be 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 by or controlled by them in favor of said plan.
Should the implementation of the plan involve public distribution of
Bank securities, including a distribution limited only to the Bank's
existing shareholders, the Bank shall prepare detailed 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 other material
disclosures necessary to comply with federal and state 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
materials used in the sale of the securities shall be submitted to
{{11-30-02 p.C-5597}}
the FDIC Registration and Disclosure Section, 550 17th Street, N.W.,
Washington, D.C. 20429, and to OBRE, 500 E. Monroe, Suite 900,
Springfield, Illinois 62701, for review. Any changes requested to be
made in the materials by the FDIC and OBRE shall be made prior to their
dissemination.
(d) In complying with the provisions of this paragraph, the Bank shall
provide to any subscriber and/or purchaser of Bank 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
calendar days of the date any material development or change was
planned or occurred, whichever is earlier, and shall be furnished to
every purchaser and/or subscriber of the Bank's original offering
materials.
(e) The capital ratio analysis required by this paragraph shall not
negate the responsibility of the Bank and its board of directors for
maintaining throughout the year an adequate level of capital protection
for the kind, quality and degree of market depreciation of assets held
by the Bank.
[.2]2. (a) Within 90 days from the effective date of this ORDER, the Bank
shall have and retain qualified management. At a minimum, such
management shall include:
(i) A senior lending officer with an appropriate level of
lending, collection, and loan supervision experience for the type and
quality of the Bank's loan portfolio; and
(ii) A qualified senior operations officer.
Such persons shall be provided the necessary written authority to
implement the provisions of this ORDER. The qualifications of
management shall be assessed on its ability to:
(i) Comply with the requirements of this ORDER;
(ii) Operate the Bank in a safe and sound manner;
(iii) Comply with applicable laws and regulations; and
(iv) Restore all aspects of the Bank to a safe and sound condition,
including asset quality, capital adequacy, earnings, and management
effectiveness.
(b) During the life of this ORDER, the Bank shall notify the
Regional Director and Commissioner in writing of any changes in any
Bank director or senior executive officer. For purposes of this
ORDER, "senior executive officer" is defined as in section 32
of the Act ("section 32"), 12 U.S.C. §1831(i), and section
303.101(b) of the FDIC Rules and Regulations, 12 C.F.R. §303.101(b),
and includes any person identified by the FDIC and OBRE, whether or not
hired as an employee, with significant influence over, or who
participates in, major policymaking decisions of the Bank.
(c) Prior to the addition of any individual to the board of directors
or the employment of any individual as a senior executive officer, the
Bank shall comply with the requirements of section 32 and Subpart F of
Part 303 of the FDIC Rules and Regulations, 12 C.F.R.
§§ 303.100-303.104. Further, the Bank shall request and obtain the
Commissioner's written approval prior to the addition of any
individual to the board of directors and the employment of any
individual as a senior executive officer.
[.3]3. (a) Within 30 days from the effective date of this ORDER, the Bank
shall retain a bank consultant acceptable to the Regional Director and
Commissioner. The consultant shall develop a written analysis and
assessment of the Bank's management and staffing needs ("Management
Plan") for the purpose of providing qualified management for the
Bank.
(b) The Bank shall provide the Regional Director and Commissioner with
a copy of the proposed engagement letter or contract with the
consultant for review before it is executed. The contract or engagement
letter, at a minimum, should include:
(i) A description of the work to be performed under the contract
or engagement letter;
(ii) The responsibilities of the consultant;
(iii) An identification of the professional standards covering the work
to be performed;
(iv) Identification of the specific procedures to be used when carrying
out the work to be performed;
(v) The qualifications of the employee(s) who are to perform the work;
{{11-30-02 p.C-5598}}
(vi) The time frame for completion of the work;
(vii) Any restrictions on the use of the reported findings; and
(viii) A provision for unrestricted examiner access to workpapers.
(c) The Management Plan shall be developed within 60 days from the
effective date of this ORDER. The Management Plan shall include, at a
minimum:
(i) Identification of both the type and number of officer
positions needed to properly manage and supervise the affairs of the
Bank, with emphasis placed on loan administration and collection needs,
as well as operations;
(ii) Evaluation of all Bank officers and staff members to determine
whether these individuals possess the ability, experience and other
qualifications required to perform present and anticipated duties,
including adherence to the Bank's established policies and
practices, and restoration and maintenance of the Bank in a safe and
sound condition; and
(iii) A plan to recruit and hire any additional or replacement
personnel with the requisite ability, experience and other
qualifications to fill those officer or staff positions identified by
this paragraph of this ORDER.
(d) The Management Plan shall be submitted to the Regional
Director and Commissioner for review and comment upon its completion.
Within 30 days from the receipt of any comments and recommended changes
from the Regional Director and Commissioner, the Bank shall consider
such comments and changes and shall document its consideration in the
minutes of the board of directors' meeting. The Bank shall approve the
Management Plan and any amendments thereto, and record its approval in
the minutes of the board of directors' meeting. Thereafter, the Bank
shall implement and follow the Management Plan and/or any subsequent
modification.
[.4]4. As of the effective date of this ORDER, the Bank shall pay no cash
dividends which would result in a Tier 1 capital ratio of less than 7.0
percent, without the prior written consent of the Regional Director and
Commissioner.
[.5]5. (a) As of 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 is already obligated in any manner to the
Bank on any extension of credit (including any portion thereof) that
has been charged off the books of the Bank or classified "Loss,"
so long as such credit remains uncollected.
(b) As of 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 whose loan or other credit has been classified
"Substandard" or is listed for Special Mention and is uncollected
unless the Bank's board of directors has adopted, prior to such
extension of credit, a detailed written statement giving the reasons
why such extension of credit is in the best interest of the Bank. A
copy of the statement shall be placed in the appropriate loan file and
shall be incorporated in the minutes of the applicable board of
directors' meeting.
[.6]6. As of the effective date of this ORDER, the Bank shall eliminate
from its books, by charge-off or collection, all assets or portions of
assets classified "Loss" as of March 4, 2002, that have not been
previously collected or charged off. Elimination or reduction of these
assets with the proceeds of other Bank extensions of credit is not
considered collection for the purpose of this paragraph.
[.7]7. Prior to submission or publication of all Reports of Condition and
Income required by the FDIC and OBRE after the effective date of this
ORDER, the board of directors of the Bank shall review the adequacy of
the Bank's allowance for loan and lease losses ("ALLL"), provide
for an adequate ALLL, and accurately report the same. The minutes of
the board meeting at which such review is undertaken shall indicate the
findings of the review, the amount of increase in the ALLL recommended,
if any, and the basis for determination of the amount of ALLL provided.
In making these determinations, the board of directors shall consider
the Federal Financial Institutions Examination Council Instructions for
Reports of Condition and Income and any analysis of the Bank's ALLL
provided by the FDIC and OBRE.
[.8]8. (a) Within 60 days from the effective date of this ORDER, the bank
shall formulate and submit to the Regional Director and Commissioner
for review and comment a written plan to reduce the Bank's risk
position in each asset in excess of $100,000 which is classified
"Substandard" in the Report
{{11-30-02 p.C-5599}}
of Examination of the Bank conducted
jointly by OBRE and FDIC as of March 4, 2002 ("Joint Report"). In
developing such plan, the Bank shall, at a minimum:
(i) Review the financial position of each such borrower,
including source of repayment, repayment ability, and alternative
repayment sources; and
(ii) Evaluate the available collateral for each such credit, including
possible actions to improve the Bank's collateral position.
(b) Such plan shall include, but not be limited to:
(i) Dollar levels to which the Bank shall reduce each asset
within 12 months from the effective date of this ORDER; and
(ii) Provisions for the submission of monthly written progress reports
to the Bank's board of directors for review and notation in minutes of
the meetings of the board of directors.
(c) As used in this paragraph, "reduce" means to: (1)
collect; (2) charge off; or (3) improve the quality of such assets
so as to warrant removal of any adverse classification by the FDIC or
OBRE.
(d) Within 30 days from the receipt of any comment from the Regional
Director and Commissioner, and after the adoption of any recommended
changes, the Bank shall approve the written plan, which approval shall
be recorded in the minutes of the board of directors' meeting.
Thereafter, the Bank shall implement and follow this written plan.
[.9]9. Within 90 days from the effective date of this ORDER, the Bank shall
correct the technical exceptions listed in the Joint Report.
[.10]10. Within 30 days from the effective date of this ORDER, the
Bank shall adopt and implement a written plan for the reduction and
collection of delinquent loans. A copy of the written plan shall be
submitted to the Regional Director and Commissioner upon its
completion. Said plan shall include, but not be limited to, provisions
which:
(a) Prohibit the extension of credit for the payment of interest;
(b) Prohibit the extension of loan maturities without the full
collection (in cash) of accrued and unpaid interest;
(c) Delineate areas of responsibility for the lending and collections
staff;
(d) Establish acceptable guidelines for the collection of delinquent
credits; and
(e) Provide for the submission of monthly written progress reports to
the Bank's board of directors for review and notation in the minutes
of the meetings of the board of directors.
[.11]11. Within 60 days from the effective date of this ORDER, the Bank
shall cause an independent loan review to be completed that, at a
minimum, will cover the following areas:
(a) Credit quality;
(b) Sufficiency of credit and collateral documentation;
(c) Proper lien perfection;
(d) Proper approval by the loan officer and loan committee; and
(e) Compliance with internal policies and procedures, as well as
applicable laws and regulations.
[.12]12. As of the effective date of this ORDER, the Bank's loan committee
shall meet at least monthly, and shall at a minimum, perform the
following functions:
(a) Evaluate, grant and/or approve loans in accordance with the
Bank's loan policy amended to comply with this ORDER. The loan
committee shall provide a thorough written explanation of any
deviations from the loan policy, which explanation shall address how
said exceptions are in the Bank's best interest. The written
explanation shall be included in the minutes of the corresponding
committee meeting.
(b) Review and monitor the status of repayment and collection of
overdue and maturing loans, loans classified "Substandard" in the
Joint Report, and loans included on the Bank's internal watch list.
(c) Review and give prior written approval for all advances, renewals,
or extensions of credit to any borrower or the borrower's related
interest(s) when the aggregate volume of credit extended to the
borrower and the borrower's related interest(s) exceeds $200,000. For
purposes of this ORDER, the term "related interest" is defined
pursuant to section 215.2(n) of Regulation O, 12 C.F.R. §215.2(n).
(d) Maintain written minutes of the committee meetings, including a
record of the review and status of the aforementioned
{{11-30-02 p.C-5600}}
loans. Such minutes shall be made available at the next Bank board of directors'
meeting.
[.13]13. (a) Within 60 days from the effective date of this ORDER, and
annually thereafter, the board of directors of the Bank shall review
the Bank's loan policy and procedures for adequacy and, based upon
this review, shall make all appropriate revisions to the policy
necessary to strengthen lending procedures and abate additional loan
deterioration. The revised written loan policy shall be submitted to
the Regional Director and Commissioner for review and comment upon its
completion.
(b) The initial revisions to the Bank's loan policy required by this
paragraph, at a minimum, shall include provisions:
(i) Establishing review and monitoring procedures to ensure that
all lending personnel are adhering to established lending
procedures and that the directorate is receiving timely and fully
documented reports on loan activity, including any deviations from
established policy;
(ii) Requiring that all extensions of credit originated or renewed by
the Bank be supported by current credit information and collateral
documentation, including lien searches and the perfection of security
interests; have a clearly defined and stated purpose; and have a
predetermined and realistic repayment source and schedule. Credit
information and collateral documentation shall include current
financial information, profit and loss statements or copies of tax
returns, and cash flow projections, and shall be maintained throughout
the term of the loan;
(iii) Incorporating collateral valuation requirements, including:
maximum loan-to-collateral-value limitations; a requirement that the
valuation be completed prior to a commitment to lend funds; a
requirement for periodic updating of valuations; and a requirement that
the source of valuations be documented in Bank records;
(iv) Prohibiting the extension of a maturity date, advancement of
additional credit or renewal of a loan to a borrower whose obligations
to the Bank were classified "Substandard" or "Loss,"
whether in whole or in part, in the Joint Report, or by the FDIC or
OBRE in a subsequent Report of Examination, without the full collection
in cash of accrued and unpaid interest, unless the loans are well
secured and/or are adequately supported by current and complete
financial information, and the renewal or extension has first been
approved in writing by a majority of the Bank's board of directors.
(c) Within 30 days from the receipt of any comments from the
Regional Director and Commissioner, and after the adoption of any
recommended changes, the board of directors shall approve the written
loan policy and any subsequent modification thereto, which approval
shall be recorded in the minutes of a board of directors' meeting. In
addition, the Bank shall inform the Regional Director and Commissioner,
in writing, of the manner in which it intends to implement this policy
and ensure compliance therewith. Thereafter, the Bank shall implement
and follow the amended written loan policy.
[.14]14. Within 30 days from the effective date of this ORDER, the Bank
shall eliminate and/or correct all violations of law and regulation
listed in the Joint Report. In addition, the Bank shall implement
procedures to ensure future compliance with all applicable laws and
regulations.
[.15]15. (a) Within 30 days from the effective date of this ORDER, the
Bank's board of directors shall adopt and implement a comprehensive
written audit program. At a minimum, the audit program shall provide
that:
(i) Internal audits shall be conducted monthly, with written
reports of audit findings presented directly to the Bank's board of
directors;
(ii) The findings contained in the monthly internal audit reports and
any actions taken as a result of the findings shall be recorded in the
minutes of the meetings of the board;
(iii) External audits of the Bank's financial statements and operating
procedures shall be performed annually by an independent public
accounting firm; and
(iv) The findings of the external audit report and any actions taken as
a result of those findings shall be recorded in the minutes of the
meetings of the board of directors.
(b) Within 90 days from the effective date of this ORDER, the Bank
shall cause an external audit of its financial statements and a review
of its internal controls to be performed by an independent public
accounting firm acceptable to the Regional Director and Commissioner.
{{\fs17 12-31-02\fs17 p.C-5601}}
(c) The Bank shall provide the Regional Director and Commissioner with
a copy of the proposed engagement letter with the accounting firm for
review before it is executed. The engagement letter, at a minimum,
shall include:
(i) A description of the work to be performed under the
engagement letter;
(ii) The responsibilities of the accounting firm;
(iii) An identification of the professional standards covering the work
to be performed;
(iv) Identification of the specific procedures to be used when carrying
out the work to be performed;
(v) The qualifications of the employee(s) who are to perform the work;
(vi) The time frame for completion of the work;
(vii) Any restrictions on the use of the reported findings; and
(viii) A provision for unrestricted examiner access to work papers.
(d) During the life of this ORDER, the Bank shall forward copies
of any external audit reports it receives to the Regional Director and
Commissioner within 10 days from its receipt of such reports.
[.16]16. Within 30 days from the effective date of this ORDER, the Bank
shall correct the deficiencies in internal routines and controls which
are listed in the Joint Report. Additionally, the Bank shall establish
policies to prevent the recurrence of the deficiencies noted.
[.17]17. (a) Within 30 days from the effective date of this ORDER, the Bank
shall formulate and submit to the Regional Director and Commissioner
for review and comment a written profit plan and a realistic,
comprehensive budget for all categories of income and expense for
calendar year 2003. The plan required by this paragraph shall contain
formal goals and strategies, consistent with sound banking practices,
to reduce discretionary expenses and to improve the Bank's overall
earnings, and shall contain a description of the operating assumptions
that form the basis for major projected income and expense components.
A copy of the plan shall be submitted to the Regional Director and
Commissioner upon its completion.
(b) Within 30 days from the end of each calendar quarter following
completion of the profit plan and budget required by this paragraph,
the Bank's board of directors shall evaluate the Bank's actual
performance in relation to the plan and budget, record the results of
the evaluation, and note any actions taken by the Bank in the minutes
of the board of directors' meeting at which such evaluation is
undertaken.
[.18]18. (a) Within 30 days from the effective date of this ORDER, the Bank
shall have fully reconciled its correspondent bank accounts and
balanced all asset and liability accounts. Written documentation of the
reconciliations and any related entries to the financial statements
shall be retained for future regulatory review. Such documentation
shall include, at a minimum, the date the item was originally
processed, the dollar amount of the item, the original description, the
research done to clear the item (including copies of any supporting
documents), and the manner in which the item was cleared (such as a
correcting entry or charge-off).
(b) Within 30 days from the effective date of this ORDER and every 30
days thereafter, any debits outstanding over 90 days in Bank's
correspondent bank accounts shall be immediately eliminated from the
Bank's books.
[.19]19. Following the effective date of this ORDER, the Bank and Raritan
State Bancorp, Inc. ("Bank Holding Company") shall send to their
shareholders or otherwise furnish a description of this ORDER: (1) in
conjunction with the Bank's and the Bank Holding Company's next
shareholder communications; and (2) in conjunction with the Bank's and
the Bank Holding Company's notice or proxy statements preceding their
next shareholder meetings. The description shall fully describe the
ORDER in all material respects. The description and any accompanying
communication, notice or statement shall be sent to the FDIC
Registration and Disclosure Section, 550 17th Street, N.W., Washington,
D.C. 20429, and to OBRE, 500 E. Monroe, Suite 900, Springfield,
Illinois 62701, for review at least 20 days prior to dissemination to
shareholders. Any changes requested to be made by the FDIC or OBRE
shall be made prior to dissemination of the description, communication,
notice or statement. Form 10-k and Form 10-QSB filings by the Bank
Holding Company with the Securities and Exchange Commission
{{12-31-02 p.C-5602}}
describing this ORDER may be submitted for review under this paragraph.
[.20]20. (a) Within 90 days from the effective date of this ORDER, the
Bank's board of directors shall have in place a program that will
provide for monitoring of the Bank's compliance with this ORDER.
(b) Following the required date of compliance with subparagraph (a) of
this paragraph, the Bank's board of directors shall review the Bank's
compliance with this ORDER and record its review in the minutes of each
regularly scheduled board of directors' meeting.
(c) Within 10 days after each board meeting following the effective
date of this ORDER, the Bank shall submit to the Commissioner and the
Regional Director the board packet from said board meeting.
21. Within 30 days from the end of each calendar quarter following
the effective date of this ORDER, the Bank shall furnish to the
Regional Director and Commissioner written progress reports signed by
each member of the Bank's board of directors, detailing the
actions taken to secure compliance with the ORDER and the results
thereof. Such reports may be discontinued when the corrections required
by this ORDER have been accomplished and the Regional Director and
Commissioner have, in writing, released the Bank from making
further reports.
The effective date of this ORDER shall be 10 calendar days after its
issuance by the FDIC and OBRE.
The provisions of this ORDER shall be binding upon the Bank, its
institution-affiliated parties, and any successors and assigns thereof.
The provisions of this ORDER shall remain effective and enforceable
except to the extent that, and until such time as, any provision has
been modified, terminated, suspended, or set aside by the FDIC and
OBRE.
Pursuant to delegated authority.
Dated: September 27, 2002.