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[12,294] In the Matter of Prime Security Bank, Karlstad, Minnesota, Docket No. 04-159k (9-18-04).

Respondent agrees to pay civil money penalty assessed by the FDIC in the amount of $3,000.

In the Matter of
PRIME SECURITY BANK
KARLSTAD, MINNESOTA
(Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY

FDIC-04-159k

PRIME SECURITY BANK, Karlstad, Minnesota ("Respondent"), has been advised of its right to receive a NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, 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 section 8(i)(2) of the Federal Deposit Insurance Act ("Act") 12 U.S.C. §1818(i)(2), section 305 of the Home Mortgage Disclosure Act ("HMDA"), 12 U.S.C. §2804, and section 203.6 of Regulation C of the Board of Governors of the Federal Reserve System, 12 C.F.R. §203.6, and has been further advised of its right to a hearing on the charges pursuant to section 8(i)(2)(H) of the Act, 12 U.S.C. §1818(i)(2)(H), and Part 308 of the FDIC 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 TO PAY CIVIL MONEY PENALTY ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, whereby the Respondent, solely for the purpose of this proceeding and without admitting or denying any violations of law and/or regulations for which civil money penalties may be assessed, Respondent consented, and agreed to the issuance of an ORDER TO PAY CIVIL MONEY PENALTY
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by the FDIC and agreed to pay a civil money penalty in the amount of Three Thousand Dollars ($3,000) related to its inaccurate reporting of loan application data as required by HMDA for 2002 and 2003.

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 $3,000 is appropriate to be assessed against the Respondent pursuant to section 8(i)(2) of the Act, 12 U.S.C. §1818(i)(2).

After taking into account the CONSENT AGREEMENT, the appropriateness of the penalty with respect to the financial resources and good faith of the Respondent, the gravity of the violations by the Respondent, the history of previous violations by the Respondent, and such other matters as justice may require, the FDIC, accepted the AGREEMENT and issued the following:

ORDER TO PAY CIVIL MONEY PENALTY

IT IS HEREBY ORDERED that the Bank be, and hereby is, assessed a civil money penalty in the amount of $3,000 pursuant to section 8(i)(2) of the Act, 12 U.S.C. §1818(i)(2), the receipt of which has been previously acknowledged.

Pursuant to delegated authority.

Dated at Washington, D.C., this 18th day of September, 2004.



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Last Updated 4/16/2005 legal@fdic.gov