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[¶11,670A] In the Matter of Highland Community Bank, Chicago, Illinois, Docket No.
99-125oa (11-24-99)
The FDIC issued a temporary order suspending the approval of a branch
location.
[.1] Bank OfficesNew Openings Restricted
In the Matter of
HIGHLAND COMMUNITY BANK
CHICAGO, ILLINOIS
(Insured State Nonmember Bank)
TEMPORARY ORDERSUSPENDING APPROVALOF BRANCH
FDIC-99-125oa
WHEREAS, on or about July 19, 1999, Highland Community Bank,
Chicago, Illinois ("Applicant") filed an application with the
Chicago Regional Office of the Federal Deposit Insurance Corporation
("FDIC"), requesting permission to establish a new branch located
in Terminal #2 at O'Hare International Airport, Chicago, Illinois; and
WHEREAS, in meetings with the FDIC's Chicago Regional Office,
representatives of the Applicant indicated that the purpose of the new
branch at Terminal #2 at O'Hare International Airport was to allow the
Applicant to enter into new lines of business, specifically, to provide
cash services to various retail businesses, concession vendors and
parking lot vendors located at O'Hare International Airport; and
WHEREAS, the FDIC's Chicago Regional Office reviewed and analyzed the
application using the factors set forth in section 6 of the Federal
Deposit Insurance Act, 12 U.S.C. § 1816; and
WHEREAS, on August 8, 1999, the FDIC's Chicago Regional Office
approved the Applicant's application to establish a branch at Terminal
#2 at O'Hare International Airport, Chicago, Illinois; and
WHEREAS, during the FDIC's examination of the Applicant, which began
on September 20, 1999, the FDIC learned that
{{10-31-00 p.C-4840}}the Applicant's books and
records were significantly out of balance such that the Applicant's
books and records are so incomplete or inaccurate that the FDIC is
unable to determine the financial condition of Applicant; and
WHEREAS, during the FDIC's September 1999 examination, the FDIC
learned that the Applicant's books and records have been out of
balance since February of 1999, and that the Applicant's day-to-day
transactions increase the number of items causing the Applicant's
books to be out of balance; and
WHEREAS, on November 8, 1999, pursuant to section 303.11(g)(1)(i) of
the FDIC's Rules and Regulations, 12 C.F.R. § 303.11(g)(1)(i), the
FDIC determined that there were material omissions relating to the
Bank's condition and/or material changes in circumstances that
occurred prior to the establishment of the new branch at Terminal #2 at
O'Hare International Airport, specifically, that there are significant
deficiencies in the Applicant's data processing and information
systems causing the Applicant's books and records to be so incomplete
or inaccurate that the FDIC is unable to determine the financial
condition of the Applicant; and
WHEREAS, on November 8, 1999, pursuant to section 303.11(g)(2)(ii) of
the FDIC's Rules and Regulations, 12 C.F.R. § 303.11(g)(2)(ii), the
FDIC determined that it is necessary to reevaluate the impact of the
change in circumstance prior to the establishment of the branch at
Terminal #2 at O'Hare International Airport and has determined that
the establishment of the new branch at Terminal #2 at O'Hare
International Airport may pose a threat to the interests of the
Applicant's depositors or may threaten to impair public confidence in
the Applicant; and
WHEREAS, the FDIC has determined that, in light of these material
omissions and/or material changes in circumstances, it must suspend its
approval of Applicant's application for approval to establishment of a
branch at Terminal #2 at O'Hare International Airport, Chicago,
Illinois.
TEMPORARY ORDER
[.1] After consideration and resolution, IT IS HEREBY ORDERED, that,
pursuant to section 303.11(g)(2) of the FDIC's Rules and Regulations,
12 C.F.R. § 303.11(g)(2), that the approval of the Applicant's
application to establish a branch be, and hereby is, TEMPORARILY
SUSPENDED.
IT IS FURTHER ORDERED that the effective date of this TEMPORARY ORDER
SUSPENDING APPROVAL be, and hereby is, effective immediately upon
issuance.
IT IS FURTHER ORDERED that, Applicant may file a response within
15 days after its receipt of the TEMPORARY ORDER SUSPENDING APPROVAL
setting forth an explanation of why the TEMPORARY ORDER SUSPENDING
APPROVAL is not warranted and any other relevant information,
mitigating circumstance, documentation or other evidence in support of
Applicant's position.
IT IS FURTHER ORDERED that if, at the end of the fifteen-day period, no
response to the TEMPORARY ORDER SUSPENDING APPROVAL has been filed,
this TEMPORARY ORDER SUSPENDING APPROVAL shall become effective as a
Final Order.
HEARING
IT IS FURTHER ORDERED that the Applicant may request an
informal hearing pursuant to §§ 303.11(g)(3)(ii) and 303.10 of the
FDIC's Rules and Regulations, 12 C.F.R. §§ 303.11(g)(3)(ii) and
303.10, on the suspension of the approval of the application to
establish a branch. The Applicant, in its request for an informal
hearing, must set forth the nature of the issues or facts to be
presented and the reasons why written submissions would be insufficient
to make an adequate presentation of those issues or facts to the FDIC.
An informal hearing will be granted if the FDIC determines that written
submissions would be insufficient or that a hearing otherwise would be
in the public interest.
The FDIC shall issue a notice of hearing if it grants the request for a
hearing. The notice of hearing shall state the subject and date of the
filing, the time and place of the hearing, and the issues to be
addressed. If the FDIC determines to deny the request for an informal
hearing, it will notify the Applicant requesting the hearing. A
decision to deny an informal hearing request constitutes a final agency
determination and is not appealable. An original and one copy of any
request for an informal hearing and all other documents in this
proceeding must be filed with the A.T. Dill, Senior Counsel,
Supervision and Legislation Branch, Federal Deposit Insurance
Corporation, 500 W. Monroe, Suite 3300, Chicago, Illinois 60661.
The provisions of this TEMPORARY ORDER SUSPENDING APPROVAL OF BRANCH
shall become effective as set forth above and shall remain in effect
until terminated by the FDIC or until final disposition thereof.
Pursuant to delegated authority.
Dated at Washington, D.C., this 24th day of November, 1999.