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FDIC Enforcement Decisions and Orders

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   [5071] FDIC Docket No. FDIC-85-363e (8-7-86).

   A bank director, without admitting or denying any of the allegations against him, consented to the issuance by the FDIC of an Order of Prohibition from Further Participation in the affairs of the bank. (Further proceedings in this docket appear at [¶ 8001B].)

In the Matter of * * * BANK (INSURED
STATE NONMEMBER BANK)


STIPULATION AND CONSENT TO
THE ISSUANCE OF AN ORDER OF
PROHIBITION FROM FURTHER
PARTICIPATION

FDIC-85-363e

   Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") by the Board of Directors of the Federal Deposit Insurance Corporation ("FDIC"), it is hereby stipulated and agreed by and between a representative of the Legal Division of the FDIC and * * *, * * *, as follows:
   1. Respondent * * *, solely for the purpose of this proceeding, and without admitting or denying any of the allegations set forth in the NOTICE OF INTENTION TO REMOVE FROM OFFICE AND TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE"), hereby consents and agrees to the issuance by the FDIC of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") in the form of the ORDER attached hereto. Respondent * * * further stipulates and agrees that such ORDER shall be deemed to be an order which has become final, as defined in section 8(k) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1818(k)), and that said ORDER shall become effective and fully enforceable by the FDIC ten (10) days after its issuance, pursuant to the provisions of section 8(i) of the Act (12 U.S.C. § 1818(i)), subject only to the conditions set forth in paragraph 2 of this CONSENT AGREEMENT.
   2. In the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, it is agreed that no action will be taken by the FDIC to enforce said ORDER against Respondent in the United States District Court unless the Respondent violates, or is about to violate, any provision of the ORDER.
   3. The parties to this CONSENT AGREEMENT waive:
   (a) A hearing for the purpose of taking evidence on the allegations set forth in the NOTICE;
   (b) The filing of PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW;
   (c) A recommended decision by an Administrative Law Judge; and
   (d) Exceptions and briefs with respect to such recommended decision.
   Dated this 7th day of August, 1986.
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ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

FDIC-85-363e

   On December 30, 1985, the Board of Directors ("Board") of the Federal Deposit Insurance Corporation ("FDIC") issued to * * * ("Respondent") a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE").
   The Respondent and counsel for the FDIC thereafter executed a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT"), dated August 7th, 1986, whereby, solely for the purpose of this proceeding, and without admitting or denying the allegations in the NOTICE the Respondent consented to the imposition of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
   The Board considered the matter and determined that it had reason to believe that the allegations set forth in the NOTICE, if proven, constitute a basis upon which to issue an ORDER under section 8(e) of the Federal Deposit Insurance Act (12 U.S.C. § 1818(e)). Thereupon, the Board accepted the executed CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   1. IT IS HEREBY ORDERED, that * * * shall not serve or act as a director, officer, or employee, or vote (directly or indirectly) for any director at * * * Bank, * * *, or any other bank insured by the FDIC, without the prior approval of the FDIC, at any time prior to December 31, 1990. Following December 31, 1990, Mr. * * * shall not serve or act as a director, officer or employee or vote for any director at * * * Bank, * * *, or any other bank insured by the FDIC, unless he has given the FDIC thirty (30) days' prior written notice of his intention to serve or act in such capacity.
   2. FURTHER ORDERED, that * * * shall not directly or indirectly solicit or procure, or transfer or attempt to transfer, or vote or attempt to vote, any proxies, consents, or authorizations in respect of any voting rights in * * * Bank, * * *, or any other bank insured by the FDIC, during the life of this ORDER, without the prior approval of the FDIC.
   3. FURTHER ORDERED, that * * * shall not participate in any manner whatsoever, directly or indirectly, in the conduct of the affairs of * * * Bank, * * * or of any other bank insured by the FDIC, at any time prior to December 31, 1990. Following December 31, 1990, Mr. * * * shall not participate in the conduct of the affairs of * * * Bank, * * * or of any other bank insured by the FDIC, unless he has given the FDIC thirty (30) days' prior written notice of his intention to participate.
   4. FURTHER ORDERED that nothing contained herein shall prohibit Mr. * * * from providing capital to * * * Bank, * * * and participating in whatever negotiations are necessary to accomplish such capital increase upon any conditions acceptable to the FDIC.
   This ORDER shall become effective ten (10) days after the date of its issuance.
   The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provision of this ORDER shall have been modified, terminated, suspended, or set aside by the Board.
   By direction of the Board of Directors.
   Dated at Washington, D. C., this 23rd day of September, 1986.
/s/ Hoyle L. Robinson
Executive Secretary

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