(This order was terminated by order of the
FDIC dated 6-3-03; see ¶16,336.)
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] ManagementQualifications Specified
[.2] Board of DirectorsResponsibility of Directors Specified
[.3] CapitalIncrease Required
[.4] AssetsCharge-off or Collection
[.5] LoansExtensions of CreditTo Borrowers with Existing Adversely Classified Credits
[.6] Loan PolicyPreparation or Revision of Policy Required
[.7] AuditInternal AuditMinimum Procedures Specified
[.8] Loan ConcentrationsReduction Required
[.9] Loan Loss ReserveEstablishment of or Increase Required
[.10] Earnings PlanWritten Earnings Plan Required
{{8-31-03 p.C-4982}}
[.11] Violations of LawCorrection of Violations Required
[.12] Reports of Condition and IncomeAmendment Required
[.13] DividendsDividends Restricted
[.14] LoansRepurchasing Restricted
[.15] Brokered DepositsRestricted
[.16] Strategic PlanPreparation of Required
[.17] Real Estate ActivitiesOther Real Estate (ORE), Management Policy Required
[.18] AssetsAdversely Classified AssetsReduction Required
[.19] Funds Management and LiquidityPreparation or Revision of Funds Management Policy Required
[.20] BonusesBonuses Restricted
[.21] ShareholdersDisclosure of Cease and Desist Order Required
In the Matter of
FARMERS & MERCHANTS BANK
LAKELAND, GEORGIA
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-00-085b
Farmers & Merchants Bank, Lakeland, Georgia ("Bank"), having
been advised of its right to a written Notice of Charges and of Hearing
detailing unsafe or unsound banking practices and violations of
applicable laws and regulations alleged to have been committed by the
Bank and of its right to a hearing regarding such alleged charges under
section 8(b)(1) of the Federal Deposit Insurance Act ("Act"), 12
U.S.C. Section 1818(b)(1), and having waived those rights, entered into
a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND
DESIST ("CONSENT AGREEMENT") with counsel for the Federal Deposit
Insurance Corporation ("FDIC") and with a representative of the
Department of Banking and Finance for the State of Georgia ("Georgia
Department of Banking"), dated August 9th, 2000. The Georgia
Department of Banking may issue an order to cease and desist pursuant
to the Official Code of Georgia Annotated Section 7-1-91. Whereby
solely for the purpose of this proceeding and without admitting or
denying any of the charges of unsafe or unsound banking practices and
violations of laws and regulations, the Bank has consented to the
issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC
and the Georgia Department of Banking.
The FDIC and the Georgia Department of Banking considered the matter
and determined that there is reason to believe that the Bank had
engaged in unsafe or unsound banking practices and had committed
violations of laws and regulations. The FDIC and the Georgia Department
of Banking, 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.
Section 1813(u), and its successors and assigns cease and desist from
the following unsafe and unsound practices and violations of law and/or
regulation:
1. Operating with inadequate supervision and direction over the
affairs of the Bank;
2. Operating the Bank with policies and practices detrimental to the
Bank and which have jeopardized the safety of the deposits;
3. Operating the Bank with an excessive volume of adversely classified
assets and delinquent or nonaccrual loans;
4. Engaging in hazardous lending and lax collection practices;
5. Operating without an independent and effective loan review system;
6. Failing to provide and maintain an adequate allowance for loan and
lease losses for the volume, kind, and quality of loans held by the
Bank;
7. Operating with an excessive amount of out-of-territory credits,
which comprise one large concentration of credit;
8. Engaging in violations of applicable federal and state laws and
regulations;
{{10-31-00 p.C-4983}}
9. Operating without proper routines and controls;
10. Operating with marginal liquidity;
11. Operating with inadequate capital for the kind and quality of
assets held.
IT IS FURTHER ORDERED, that the Bank, its institution-affiliated
parties, and its successors and assigns take affirmative action as
follows:
MANAGEMENT
[.1] 1. (a) To facilitate having and retaining qualified management, the
board of directors shall in no more than 30 days from the effective
date of this ORDER develop a written analysis and assessment of the
Bank's management and staffing needs ("management plan"), which
shall include, at a minimum:
(1) identification of both the type and number of officer
positions needed to manage and supervise properly the affairs of the
Bank;
(2) identification and establishment of such Bank committees as are
needed to provide guidance and oversight to active management;
(3) evaluation of each Bank officer, and in particular the chief
executive officer, and staff member to determine whether these
individuals are qualified as required by this ORDER.
(b) Within 60 days of the effective date of this ORDER, the Bank
shall have and retain qualified management. Each member shall have
qualifications and experience commensurate with his or her duties and
responsibilities at the Bank. Management shall include the following:
(1) a chief executive officer, who shall be given specific
written responsibilities and authority by the Bank's board of
directors for implementing and managing the lending, investment,
liquidity, funds management, and operating policies of the Bank in
accordance with sound banking practices and principles, and who shall
be the senior officer of the Bank responsible for the daily management
and overall operations of the Bank;
(2) a senior lending officer who shall be given specific written
responsibilities and authority regarding implementation of the lending
policies of the Bank and who shall be the senior officer responsible
for the lending operations of the Bank;
(3) a chief operations officer who shall be given specific written
responsibilities and authority regarding the operations of the Bank.
(c) The written management plan and any subsequent modification
thereto shall be submitted to the Regional Director and the
Commissioner for review and comment. No more than 30 days from the
receipt of any comment from the Regional Director and/or Commissioner,
and after consideration of such comment, the board of directors shall
approve the written management plan and/or any subsequent modification.
(d) The qualifications of management shall be assessed on its ability
to:
(1) comply with the requirements of this ORDER;
(2) operate the Bank in a safe and sound manner;
(3) comply with applicable laws and regulations;
(4) restore all aspects of the Bank to a safe and sound condition,
including asset quality, capital adequacy, earnings, management
effectiveness, risk management and liquidity.
(e) During the life of this ORDER, the Bank shall notify the
Regional Director of the FDIC's Atlanta Regional Office ("Regional
Director") and the commissioner of the Georgia Department of Banking
("Commissioner") in writing when it proposes to add any
individual to the Bank's board of directors or employ any individual
as a senior executive officer. The notification must be received at
least 30 days before such addition or employment is intended to become
effective and should include a description of the background and
experience of the individual or individuals to be added or employed.
(f) The Bank may not add any individual to its board of directors or
employ any individual as a senior executive officer without the prior
written approval of the Commissioner.
BOARD OF DIRECTORS
[.2] 2. Within 30 days from the effective date of this ORDER, the board of
directors shall increase its participation in the affairs of the Bank,
assuming full responsibility for
{{10-31-00 p.C-4984}} the approval of sound policies and
objectives, for compliance with this ORDER, and for the supervision of
all of the Bank's activities, consistent with the role and expertise
commonly expected for directors of banks of comparable size. This
participation shall include meetings to be held no less frequently than
monthly at which, at a minimum, the following areas shall be reviewed
and approved: reports of income and expenses; new, overdue, renewal,
insider, charged-off, and recovered loans; investment activity;
operating policies; progress reports issued to the FDIC and the
Commissioner; and individual committee actions. Board minutes shall
fully document these reviews and approvals, including the names of any
dissenting directors.
CAPITAL
[.3] 3. (a) Within 90 days from the effective date of this ORDER, the Bank
shall have Tier 1 capital in such an amount as to equal or exceed 7.00
percent of the Bank's total assets. Thereafter, during the life of
this ORDER, the Bank shall maintain Tier 1 capital in such an amount as
to equal or exceed 7.00 percent of the Bank's total assets.
(b) Within 60 days from the effective date of this ORDER, the Bank
shall develop and adopt a plan to meet the minimum risk-based capital
requirements as described in the FDIC Statement of Policy on Risk-Based
Capital contained in Appendix A to Part 325 of the FDIC Rules and
Regulations, 12 C.F.R. Part 325, Appendix A. Additionally, the Bank's
capital shall be maintained in compliance with the Georgia Department
of Banking statement of policy. To the extent that Part 325 of the FDIC
Rules and Regulations and the Georgia Department of Banking Statement
of Policy are in conflict, the Bank shall comply with the requirements
that are more restrictive. The Plan shall be in a form and manner
acceptable to the Regional Director and the Commissioner.
(c) The level of Tier 1 capital to be maintained during the life of
this ORDER pursuant to Subparagraph 3(a) shall be in addition to a
fully funded allowance for loan and lease losses, the adequacy of which
shall be satisfactory to the Regional Director and Commissioner as
determined at subsequent examinations and/or visitations.
(d) Any increase in Tier 1 capital necessary to meet the requirements
of Paragraph 3 of this ORDER may be accomplished by the following:
(1) the direct contribution of cash by the board of directors
and/or shareholders of the Bank; or
(2) the direct contribution of cash by shareholders of the parent
holding company; or
(3) any other means acceptable to the Regional Director and the
Commissioner; or
(4) any combination of the above means.
Any increase in Tier 1 capital necessary to meet the requirements
of Paragraph 3 of this ORDER may not be accomplished through a
deduction from the Bank's allowance for loan and lease losses.
(e) For the purposes of this ORDER, the terms "Tier 1 capital"
and "total assets" shall have the meanings ascribed to them in
Part 325 of the FDIC Rules and Regulations, 12 C.F.R. §§ 325.2(t)
and 325.2(v).
CHARGE-OFF
[.4] 4. (a) Within 10 days from 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" and 50 percent of all
assets or portions of assets classified "Doubtful" as of March 1,
2000 that have not been previously collected or charged-off. (If an
asset classified "Doubtful" is loan or a lease, the Bank may, in
the alternative, increase its allowance for loan and lease losses by an
amount equal to 50 percent of the loan or lease classified
"Doubtful.") Elimination of these assets through proceeds of
other loans made by the Bank is not considered collection for purposes
of this paragraph.
(b) Additionally, while this ORDER remains in effect, the Bank shall,
within 30 days of the receipt of any official Report of Examination of
the Bank from the FDIC or Georgia Department of Banking, eliminate from
its books, by collection, charge-off, or other proper entries, the
remaining balance of any assets classified "Loss" and 50 percent
of those classified "Doubtful" unless otherwise approved in
writing by the Regional Director and the Commissioner;
(c) Within 180 days from the effective date of this ORDER, the Bank
shall have reduced the assets classified "Substandard" and those
assets classified "Doubtful" as of
{{10-31-00 p.C-4985}} March 1, 2000 that have not
previously been charged off to not more than $7,100,000.
(d) Within 360 days from the effective date of this ORDER, the Bank
shall have reduced the assets classified "Substandard" and those
assets classified "Doubtful" as of March 1, 2000 that have not
previously been charged off to not more than $5,700,000.
(e) Within 540 days from the effective date of this ORDER, the Bank
shall have reduced the assets classified, "Substandard" and those
assets classified "Doubtful" as of March 1, 2000 that have not
been previously been charged off to not more than $4,500,000.
(f) The requirements of subparagraphs 4(a), 4(b), 4(c), 4(d) and 4(e)
of this ORDER are not to be construed as standards for future
operations and, in addition to the foregoing, the Bank shall eventually
reduce the total of all adversely classified assets. Reduction of these
assets through proceeds of other loans made by the Bank is not
considered collection for the purpose of this paragraph. As used in
subparagraphs 4(b), 4(c), 4(d) and 4(e) the word "reduce" means:
(1) to collect;
(2) to charge-off; or
(3) to sufficiently improve the quality of assets adversely classified
to warrant removing any adverse classification, as determined by the
FDIC and the Georgia Department of Banking.
NO ADDITIONAL CREDIT
[.5] 5. (a) Beginning with 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 has a loan or other extension of
credit from the Bank that has been charged off or classified, in whole
or in part, "Loss" or "Doubtful" and is uncollected. The
requirements of this paragraph shall not prohibit the Bank from
renewing (after collection in cash of interest due from the borrower)
any credit already extended to any borrower.
(b) Additionally, during the life of this ORDER, the Bank shall not
extend, directly or indirectly, any additional credit to, or for the
benefit of, any borrower who has a loan or other extension of credit
from the Bank that has been classified, in whole or part,
"Substandard" and is uncollected.
(c) Paragraph 5(b) shall not apply if the Bank's failure to extend
further credit to a particular borrower would be detrimental to the
best interests of the Bank. Prior to the extending of any additional
credit pursuant to this paragraph, either in the form of a renewal,
extension, or further advance of funds, such additional credit shall be
approved by a majority of the board of directors, or a designated
committee thereof, who shall certify, in writing:
(1) why the failure of the Bank to extend such credit would be
detrimental to the best interests of the Bank;
(2) that the Bank's position would be improved thereby, and
(3) how the Bank's position would be improved.
The signed certification shall be made a part of the minutes of
the board of directors or designated committee, and a copy of the
signed certification shall be retained in the borrower's credit file.
LENDING POLICIES
[.6] 6. (a) Within 60 days from the effective date of this ORDER, the Bank
shall revise, adopt, and implement a written lending and collection
policy to provide effective guidance and control over the Bank's
lending function, which policy shall include, at a minimum, revisions
to address all items of criticism enumerated on pages 10 through 14 and
36 through 37 of the March 1, 2000 Report of Examination by the Georgia
Department of Banking as well as specific guidelines for placing loans
on a nonaccrual basis. The board of directors shall require compliance
with the lending and collection policy as adopted. In addition, the
Bank shall require adequate and current documentation for all loans in
the Bank's loan portfolio, and correct the credit data or collateral
document exceptions noted on pages 121 through 125 of the March 1, 2000
Report of Examination. Such policy and its implementation shall be in a
form and manner acceptable to the Regional Director and the
Commissioner as determined at subsequent examinations and/or
visitations.
(b) Within 180 days of the effective date of this ORDER, the Bank shall
contract with a consultant to conduct an independent loan review. The
review shall include an assessment of the accuracy and methodology of
the Bank's internal loan grading system and its implementation and
effectiveness in recognizing and identifying problem loans. The
{{10-31-00 p.C-4986}}
consultant should report the findings of this review directly to the
board of directors.
(c) Within 90 days of the effective date of this ORDER, the board
of directors shall review the internal loan review system and internal
grading system. The board of directors shall insure that the loan
review committee shall consist of a majority of individuals independent
of the loan function. The internal loan review process shall be revised
to identify credit standards rendering assignment of accurate
identification of problem credits. The results of the loan review
rating system should render ratings equivalent to Substandard, Doubtful
and Loss classification utilized in the regulatory examination process.
The loan review and grading system shall be acceptable to the FDIC and
the Georgia Department of Banking as determined at subsequent
examinations and/or visitations. On a quarterly basis, the board of
directors shall review the results of the implementation and
effectiveness of the loan grading system and ratings assigned by Bank
management.
AUDIT PROGRAM
[.7] 7. Within 60 days of the effective date of this ORDER, the Bank shall
develop an internal audit program that establishes procedures to
protect the integrity of the Bank's operational and accounting
systems. The scope of this program should include, at a minimum:
(a) approval of a written policy which, at a minimum, will
designate an internal auditor with established responsibilities and
authority and who will report directly to the Auditor Committee and
require corrective action on audit findings;
(b) review of accounting entries and testing of internal routine and
controls; and
(c) coverage if relevant risk areas including electronic banking,
information systems, non-deposit investment activities, and compliance
with laws, regulations, and regulatory statements of policy.
REDUCE LOAN CONCENTRATIONS
[.8] 8. Within 180 days from the effective date of this ORDER, the Bank
shall reduce each loan concentration as specified on pages 127 of the
March 1, 2000 Report of Examination to an amount which shall be less
than 75 percent of the Bank's total equity capital and reserves for
each individual concentration. Within 360 days from the effective date
of this ORDER, the Bank shall reduce each loan concentration specified
on pages 127 through 130 of the Report of Examination to be an amount
which shall not exceed 50 percent of the Bank's total equity capital
and reserves for each individual concentration. Within 450 days from
the effective date of this ORDER, the Bank shall reduce each loan
concentration specified on pages 127 through 130 of the Report of
Examination to be an amount which shall not exceed 25 percent of the
Bank's total equity capital and reserves for each individual
concentration. In addition, the Bank shall not make new extensions of
credit to any borrower or associated entities which will equal
twenty-five (25) percent of more of the Bank's total equity capital
and reserves.
ALLOWANCE FOR LOAN AND LEASE LOSSES
[.9] 9. Within 30 days from the effective date of this ORDER, the board of
directors shall review the adequacy of the allowance for loan and lease
losses ("allowance") and establish a comprehensive policy for
determining the adequacy of the allowance for loan and lease losses.
For the purpose of this determination, the adequacy of the allowance
shall be determined after the charge-off of all loans or other items
classified "Loss". The policy shall provide for a review of the
allowance at least once each calendar quarter. Said review should be
completed at least ten (10) days prior to the end of each quarter, in
order that the findings of the board of directors with respect to the
allowance for loan and lease losses may be properly reported in the
quarterly Reports of Condition and Income. The review should focus on
the results of the Bank's internal loan review, loan and lease loss
experience, trends of delinquent and non-accrual loans, an estimate of
potential loss exposure of significant credits, concentrations of
credit, and present and prospective economic conditions. A deficiency
in the allowance shall be remedied in the calendar quarter it is
discovered, prior to submitting the Report of Condition, by a charge to
current operating earnings. The minutes of the board of directors
meeting at which such review is undertaken shall indicate the results
of the review. The Bank's policy for determining the adequacy of the
Bank's allowance and its implementation shall be satisfactory to the
Regional Director and the Commissioner as determined at subsequent
examinations and/or visitations.
{{10-31-00 p.C-4987}}
EARNINGS
[.10] 10. Within 60 days from the effective date of this ORDER, the
Bank shall formulate and implement a written plan to improve and
sustain earnings. This plan shall be forwarded to the Regional Director
and to the Commissioner for review and comment and shall address, at a
minimum, the following:
(a) goals and strategies for improving and sustaining the earnings
of the Bank, including:
(1) an identification of the major areas in, and means by which,
the board of directors will seek to improve the Bank's operating
performance;
(2) realistic and comprehensive budget;
(3) a budget review process to monitor the income and expenses of the
Bank to compare actual figures with budgetary projections; and
(4) a description of the operating assumptions that form the basis for,
and adequately support, major projected income and expense components.
(b) coordination of the Bank's loan, investment, and operating
policies, and budget and profit planning, with the funds management
policy;
(c) following the end of each calendar quarter, the board of directors
shall evaluate the Bank's actual performance in relation to the plan
required by this paragraph and shall record the results of the
evaluation, and any actions taken by the Board, in the minutes of the
board of directors meeting at which such evaluation is undertaken.
VIOLATIONS OF LAW
[.11] 11. Within 60 days from the effective date of this ORDER, the Bank
shall eliminate and/or correct all violations of law which are more
fully set out on pages 44 through 47; and correct all internal routine
and control deficiencies as more fully set out on pages 137 through 141
of the March 1, 2000 Report of Examination. In addition, the Bank shall
take all necessary steps to ensure future compliance with all
applicable laws and regulations and formulate effective internal
routine and control procedures.
CALL REPORTS
[.12] 12. Within 10 days after eliminating from its books any asset in
compliance with Paragraph 4 of this ORDER, the Bank shall file with the
FDIC amended Consolidated Reports of Condition and Income which shall
accurately reflect the financial condition of the Bank as of March 31
and June 30, 2000. Thereafter, during the life of this ORDER, the Bank
shall file with the FDIC Consolidated Reports of Condition and Income
which accurately reflect the financial condition of the Bank as of the
end of the period for which the Reports are filed, including any
adjustment in the Bank's books made necessary or appropriate as a
consequence of any FDIC or Georgia Department of Banking examination of
the Bank during that reporting period.
CASH DIVIDENDS
[.13] 13. The Bank shall not pay cash dividends without the prior written
consent of the Regional Director and the Commissioner.
LOAN PARTICIPATIONS
[.14] 14. Following the effective date of this ORDER, the Bank shall not
repurchase any loan participations sold as of March 1, 2000, or any
loan participations sold while this ORDER is in effect, unless legally
obligated to do so, if the following conditions exist:
(a) the loan has been adversely classified at an examination or
visitation conducted by the FDIC or the Georgia Department of Banking
and remains classified as of the date of repurchase; or
(b) the loan exhibits any of the following characteristics:
(1) the loan is in non-accrual status or should be in non-accrual
status as defined in the instructions for preparation of Reports of
Condition and Reports of Income;
(2) principal or interest payments on the loan are more than 30 days
past due;
(3) the terms of the loan have been renegotiated or compromised due to
the deteriorating financial condition of the borrower.
BROKERED DEPOSITS
[.15] 15. While this ORDER is in effect, the Bank shall give written notice
to the Regional Director and the Commissioner at such time as the Bank
intends to make use of brokered deposits. The notification should
indicate how the brokered deposits are to be utilized with specific
reference to credit qual-
{{10-31-00 p.C-4988}}ity of investments/loans and the effect on the
Bank's funds position and asset/liability matching. The Regional
Director and the Commissioner shall have the right to reject the
Bank's plans for utilizing brokered deposits. For purposes of this
ORDER, brokered deposits are defined as described in section
337.6(a)(1) of the FDIC Rules and Regulations to include any deposits
funded by third party agents or nominees for depositors, including
deposits managed by a trustee or custodian when each individual
beneficial interest is entitled to or asserts a right to federal
deposit insurance.
STRATEGIC PLAN
[.16] 16. Within 90 days from the effective date of this ORDER, the Bank
shall prepare and submit to the Regional Director and the Commissioner
its written strategic plan consisting of long-term goals designed to
improve the condition of the Bank and its viability and strategies for
achieving those goals. The plan shall be in a form and manner
acceptable to the Regional Director and the Commissioner as determined
at subsequent examinations and/or visitations.
OWNED REAL ESTATE
[.17] 17. Following the effective date of this ORDER, the board of directors
shall require that new appraisals, meeting minimum appraisal standards
and the requirements under state law and regulations, be obtained on
all properties with a book value of $100,000 or more taken as Other
Real Estate, and that the book value(s) of the properties be written
down to the current market value(s) less estimated selling costs. In
addition, the board of directors shall develop a plan for timely
disposal of the Other Real Estate including marketing strategies for
disposing of the property.
ASSET IMPROVEMENT PLAN
[.18] 18. Within 90 days from the effective date of this ORDER, the Bank
shall submit to the Regional Director and the Commissioner its plan to
effect the reduction and/or improvement of any lines of credit
exceeding $200,000 which was adversely classified in the March 1, 2000
Report of Examination. The board of directors shall monitor borrowers'
progress in achieving the plan including actions that will be taken if
the borrower fails to meet the goals established in the plan. In the
Progress Reports required pursuant to paragraph 22 of this ORDER, the
Bank shall include a report on all actions taken with respect to this
plan.
POLICY FOR LIQUIDITY AND FUNDS MANAGEMENT
[.19] 19. Within 60 days from the effective date of this ORDER, the board of
directors shall implement an asset/liability management policy that is
acceptable to the Regional Director and Commissioner. The
asset/liability management policy will establish an acceptable range
for the Bank's volatile liability dependency ratio, as computed by the
FDIC in its Reports of Examination. The Bank's volatile liability
dependency ratio shall be maintained at a level consistent with safe
and sound banking practice and reported to the Board on at least a
monthly basis.
RESTRICTION ON BONUSES
[.20] 20. Following the effective date of this ORDER, the Bank shall provide
written notice to the Regional Director and the Commissioner of its
intent to pay any senior executive officer bonuses. In the event that
the Regional Director or the Commissioner does not object to this
notice within 30 days from its receipt, the Bank may pay the proposed
senior executive officer bonuses.
NOTICE TO SHAREHOLDERS
[.21] 21. Following the effective date of this ORDER, the Bank shall send to
its shareholders or otherwise furnish a description of this ORDER in
conjunction with the Bank's next shareholder communication and also in
conjunction with its notice or proxy statement preceding the Bank's
next shareholder meeting. The description shall fully describe the
ORDER in all material respects. The description and any accompanying
communication, statement, or notice shall be sent to the FDIC,
Registration and Disclosure Section, Washington, D.C. 20429, at least
fifteen (15) days prior to dissemination to shareholders. Any changes
requested to be made by the FDIC shall be made prior to dissemination
of the description, communication, notice, or statement.
PROGRESS REPORTS
22. Within 30 days of the end of the first quarter following the
effective date of this ORDER, and within 30 days of the end of each
quarter thereafter, the Bank shall furnish written progress reports to
the Regional Director and the Commissioner detailing the
{{11-30-00 p.C-4989}} form and
manner of any actions taken to secure compliance with this ORDER and
the results thereof. Such reports shall include a copy of the Bank's
Report of Condition and the Bank's Report of Income. Such reports may
be discontinued when the corrections required by this ORDER have been
accomplished and the Regional Director and the Commissioner have
released the Bank in writing from making further reports.
This ORDER shall become effective ten (10) days from 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
provisions of this ORDER shall have been modified, terminated,
suspended, or set aside by the FDIC and/or the Commissioner.
Pursuant to delegated authority.
Dated at Atlanta, Georgia, this 15th day of August, 2000.