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{{5-31-04 p.TC-439}}

   [16,338] Docket No. FDIC-02-026b (6-13-03).

In the Matter of
HEARTLAND COMMUNITY BANK
FRANKLIN, INDIANA
(Insured State Nonmember Bank)
MODIFICATION OF ORDER TO CEASE AND DESIST

FDIC-02-026b

(This order was modified by order of the FDIC dated 3-29-04; see ¶16,376.)

   On May 1, 2002, the Federal Deposit Insurance Corporation ("FDIC") and the Department of Financial Institutions for the State of Indiana ("DFI") issued an ORDER TO CEASE AND DESIST ("ORDER") against Heartland Community Bank, Franklin, Indiana ("Bank"), that became effective on May 11, 2002, and remains in full force and effect. Subsequently, on April 21, 2003, the Bank, through its board of directors, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A MODIFICATION OF ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT") wherein the Bank consented to the issuance of a MODIFICATION OF ORDER TO CEASE AND DESIST ("MODIFICATION ORDER").

   The FDIC and DFI considered the matter and determined that there was reason to believe that sufficient cause existed to modify the ORDER issued on May 1, 2002. The FDIC and DFI, therefore, accepted the CONSENT AGREEMENT and issued the following:

MODIFICATION OF ORDER TO CEASE AND DESIST

   The ORDER is modified so that paragraph 10(a) is deleted and replaced with the following paragraph 10(a):

       (a) Effective immediately, concentrations as a percentage of the Bank's Tier 1 capital shall be limited to no more than 125% for the total of Acquisition, Development and Construction loans, 225% for all Commercial Real Estate loans, and 100% for all High Loan-to-Value Loans.

   The provisions of this MODIFICATION ORDER shall be binding upon the Bank, its institution-affiliated parties, and any successors and assigns thereof.

   Except as modified herein, the provisions of the ORDER issued against the Bank on May 1, 2002, and which became effective
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   on May 11, 2002, shall remain in full force and effect.

   The provisions of this MODIFICATION ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provisions shall have been modified further, terminated, suspended or set aside by the FDIC and DFI.

   Pursuant to delegated authority.

   Dated this 13th day of June, 2003.

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Last Updated 6/13/2004 legal@fdic.gov