(This order was terminated by order of the FDIC dated 4-12-04; see ¶16,378.)
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] Capital—Increase Required
[.2] Loan Collector/Consultant—Required
[.3] Bank Operations—Employment—Written Approval Required
[.4] Directors and Officers—Additional Members Required
[.5] Dividends—Dividends Restricted
[.6] Loans—Extensions of Credit—To Borrowers with Existing Adversely
Classified Credits
[.7] Assets—Charge-off or Collection
[.8] Loan Loss Reserve—Establishment of or Increase Required
[.9] Assets—Risk Position—Written Plan Required
[.10] Technical Exceptions—Correction of Technical Exceptions Required
[.11] Loans—Comply with Written Policy
[.12] Loan Committee—Membership, Duties
[.13] Loan Policy—Preparation or Revision of Policy Required
[.14] Profit Plan—Preparation of Plan Required
[.15] Bank Operations—New Lines of Business Restricted
[.16] Shareholders—Disclosure of Cease and Desist Order Required
[.17] Board of Directors—Program to Review Compliance with Cease and Desist
Order Required
In the Matter of
STATE BANK OF ELDRED
ELDRED, ILLINOIS
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-01-027b
OBRE No. 2001-BBTC-09
The State Bank of Eldred, Eldred, Illinois ("Bank"), having
been advised of its right to a NOTICE OF CHARGES AND OF HEARING
detailing the unsafe or unsound banking practices alleged to have been
committed by the Bank, and of its right to a hearing on the charges
under section 8(b) of the Federal Deposit Insurance Act ("Act"),
12 U.S.C. §1818(b), and under 38 Ill. Adm. Code, section 392.30,
regarding hearings before the Office of Banks and Real Estate for the
State of Illinois, Springfield, Illinois ("OBRE"), and having
waived those rights, entered into a STIPULATION AND CONSENT TO THE
ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT")
with representatives of the Federal Deposit Insurance Corporation
{{6-30-01 p.C-5121}}
("FDIC") and OBRE, dated April 5, 2001, whereby, solely for the
purpose of this proceeding and without admitting or denying the charges
of unsafe or unsound banking practices, the Bank consented to the
issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC
and OBRE.
The FDIC and OBRE considered the matter and determined that there was
reason to believe that the Bank had engaged in unsafe or unsound
banking practices. The FDIC and OBRE, 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.
§1813(u), and its successors and assigns, cease and desist from the
following unsafe or unsound banking practices:
A. Operating with a board of directors that has failed to exercise
adequate supervision over active Bank officers;
B. Operating with management whose policies and practices are
detrimental to the Bank and jeopardize the safety of its depositors;
C. Operating without effective board and management succession plans.
D. Engaging in hazardous lending and lax collection practices,
including, but not limited to:
The failure to obtain proper loan documentation;
The failure to obtain adequate collateral;
The failure to establish and monitor collateral margins of secured
borrowers;
The failure to curtail the high volume of technical exceptions in
loan documentation;
The failure to establish and enforce adequate loan repayment
programs;
The failure to obtain current and complete financial information on
borrowers;
The failure to enforce loan policy guidelines; and
The failure to follow acceptable credit administration practices.
E. Operating with a marginal and declining level of capital
protection for the kind and quality of assets held.
F. Paying excessive dividends in relation to the Bank's capital
position and earnings.
G. Operating with an excessive volume of adversely classified assets,
delinquent loans, and nonaccrual loans.
H. Operating with excessive loan losses.
I. Operating with an inadequate allowance for loan and lease losses
("ALLL") for the volume, kind, and quality of loans and leases
held.
J. Operating with weak lending guidelines and practices.
K. Failing to implement and monitor appropriate Bank policies.
L. Failing to implement timely corrective measures to resolve
continuing asset concerns.
M. Operating with poor earnings.
IT IS FURTHER ORDERED, that the Bank, its institution-affiliated
parties, and its successors and assigns, take affirmative action as
follows:
[.1]1. (a) Within 90 days from the effective date of this ORDER, the Bank
shall develop and submit to the FDIC and OBRE, a plan to maintain its
Tier 1 leverage capital ratio at a level not less than 7 percent of
total assets.
(b) Within 30 days from the last day of each calendar quarter following
the effective date of this ORDER, the Bank shall determine from its
Report of Condition and Income its level of Tier 1 capital as a
percentage of its total assets ("capital ratio") for that
calendar quarter. If the capital ratio is less than 7 percent, the Bank
shall, within 60 days of the date of the required determination,
increase its capital ratio to not less than 7 percent calculated as of
the end of that preceding quarterly period. Should the Bank determine
to increase its capital ratio through a stock issuance, same shall be
accomplished within 90 days from the date of the required
determination. For purposes of this ORDER, Tier 1 capital and total
assets shall be calculated in accordance with Part 325 of the FDIC
Rules and Regulations ("Part 325"), 12 C.F.R. Part 325.
(c) Any such increase in Tier 1 capital may be accomplished by:
(i) The sale of common stock and noncumulative perpetual
preferred stock constituting Tier 1 capital under Part 325; or
(ii) The elimination of all or part of the
{{6-30-01 p.C-5122}}
assets classified
"Loss" as of December 11, 2000, without loss or liability to the
Bank, provided any recovery on a partially charged-off asset shall
first be applied to that portion of the asset which was not charged
off; or
(iii) The collection in cash of assets previously charged off; or
(iv) The direct contribution of cash by the directors and/or the
shareholders of the Bank; or
(v) Any other means acceptable to the Regional Director of the Chicago
Regional Office of the FDIC ("Regional Director") and the
Commissioner of Banks and Real Estate for the State of Illinois
("Commissioner"); or
(vi) Any combination of the above means.
(d) If all or part of the increase in capital required by this
paragraph is to be accomplished by the sale of new securities, the
board of directors of the Bank shall adopt and implement a plan for the
sale of such additional securities, including the voting of any shares
owned or proxies held by or controlled by them in favor of the plan.
Should the implementation of the plan involve a public distribution of
the Bank securities, including a distribution limited only to the
Bank's existing shareholders, the Bank shall prepare detailed offering
materials fully describing the securities being offered, including an
accurate description of the financial condition of the Bank and the
circumstances giving rise to the offering, and any other material
disclosures necessary to comply with the Federal securities laws. Prior
to the implementation of the plan and, in any event, not less than 20
days prior to the dissemination of such materials, the materials used
in the sale of the securities shall be submitted to the FDIC
Registration and Disclosure Section, 550 17th Street, N.W., Washington,
D.C. 20429, and to OBRE, 500 E. Monroe, Suite 900, Springfield,
Illinois 62701, for review. Any changes requested to be made in the
materials by the FDIC or OBRE shall be made prior to their
dissemination.
(e) In complying with the provisions of this paragraph of the ORDER,
the Bank shall provide to any subscriber and/or purchaser of Bank
securities written notice of any planned or existing development or
other changes that are materially different from the information
reflected in any offering materials used in connection with the sale of
Bank securities. The written notice required by this paragraph shall be
furnished within 10 calendar days of the date any material development
or change was planned or occurred whichever is earlier, and shall be
furnished to every purchaser and/or subscriber of the Bank's original
offering materials.
(f) The capital ratio analysis required by this paragraph shall not
negate the responsibility of the Bank and its board of directors for
maintaining throughout the year an adequate level of capital protection
for the kind, quality and degree of market depreciation of assets held
by the Bank.
[.2]2. (a) Within 30 days from the effective date of this ORDER, the Bank
shall employ a qualified loan collector or retain a bank consultant in
the form of a collector, collection service and/or attorney experienced
in the collection or sale of delinquent and nonaccrual loans, and in
handling charged-off loans. The loan collector or consultant must be
deemed acceptable to the Regional Director and Commissioner.
(b) Should the Bank determine to retain a consultant, the consultant's
contract shall, at a minimum:
(i) Describe the work to be performed;
(ii) Detail the responsibilities of the consultant;
(iii) Identify the specific accounts that will be worked by the
consultant;
(iv) Provide a reference to the applicable professional standards and
procedures covering the work;
(v) Detail the specific procedures to be performed;
(vi) List the types of sources to be used to obtain relevant
information;
(vii) Provide a listing of the names and qualifications of the
employees who will perform the work;
(viii) The time frame for completing the work;
(ix) Discuss restrictions on the use of reported findings; and
(x) Contain a separate provision specifically allowing FDIC and OBRE
examiner access, at any time, to all consultant workpapers.
(c) Should the Bank determine to retain a consultant, the Bank
shall submit the consultant's proposed contract to the Regional
Director and Commissioner for review and comment within 60 days from
the effective
{{6-30-01 p.C-5123}}
date of this ORDER. Within 15 days from the receipt of
any comment from the Regional Director or Commissioner and after the
adoption of any recommended changes, the Bank shall approve the
consultant's contract and any subsequent modifications, which approval
shall be recorded in the minutes of a board of directors' meeting.
[.3]3. During the life of this ORDER, the Bank shall notify the Regional
Director and the Commissioner, in writing, of any changes in any of the
Bank's directors or senior executive officers. For purposes of this
ORDER, "senior executive officers" is defined as in section 32 of
the Act ("section 32"), 12 U.S.C. §1831(i), and section
303.101(b) of the FDIC Rules and Regulations ("section
303.101(b)"), 12 C.F.R. §303.101(b). Prior to the addition of any
individual to the board of directors or the employment of any
individual as a senior executive officer, the Bank shall comply with
the requirements of section 32 and Subpart F of Part 303 of the FDIC
Rules and Regulations ("Subpart F"), 12 C.F.R. Part 303, Subpart
F. In addition, pursuant to the authority granted to the Commissioner
in section 48(6)(b) of the Illinois Banking Act ("section
48(6)(b)"), 205 ILCS 5/1, the Bank shall request and obtain the
Commissioner's written approval prior to the addition of any
individual to the board of directors or the employment of any
individual as a senior executive officer.
[.4]4. Within 120 days from the effective date of this ORDER, the Bank
shall add two new directors. After compliance with section 32, Subpart
F, and after obtaining the Commissioner's approval pursuant to the
authority granted to him in section 48(6)(b), the addition of any new
Bank directors required by this paragraph may be accomplished, to the
extent permissible by state statute or the Bank's bylaws, by means of
appointment or election at a regular or special meeting of the Bank's
shareholders.
[.5]5. As of the effective date of this ORDER, the Bank shall pay no cash
dividends without the prior written consent of the Regional Director
and Commissioner.
[.6]6. (a) As of 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 is already obligated in any manner to the
Bank on any extensions of credit (including any portion thereof) that
has been charged off or classified "Loss" so long as such credit
remains uncollected.
(b) As of 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 whose loan or other credit has been classified
"Substandard" and is uncollected unless the Bank's board of
directors has adopted, prior to such extension of credit, a detailed
written statement giving the reasons why such extension of credit is in
the best interest of the Bank. A copy of the statement shall be placed
in the appropriate loan file and shall be incorporated in the minutes
of the applicable board of directors' meeting.
[.7]7. As of 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" as of December 11, 2000, that have not
been previously collected or charged off. Any such charged-off asset
shall not be rebooked without prior written notification to the
Regional Director and Commissioner. Elimination or reduction of these
assets with the proceeds of other Bank extensions of credit is not
considered collection for the purpose of this paragraph.
[.8]8. (a) Within 30 days from the effective date of this ORDER, the Bank
shall replenish its ALLL by an expense entry in an amount equal to not
less than $300,000.
(b) Within 60 days from the effective date of this ORDER, the Bank
shall make an additional provision for loan and lease losses which,
after review and consideration by the board of directors, reflects the
potential for further losses in the remaining loans and/or leases
classified "Substandard" and all other loans and leases in its
portfolio. In making this determination, the board of directors shall
consider the Bank's average losses over the last five years; loans
past due over 90 days; nonaccrual credits; concentrations of credit;
and other non-classified credits.
(c) Reports of Condition and Income required by the FDIC and OBRE and
filed by the Bank subsequent to December 11, 2000, shall be amended and
refiled within 60 days from the effective date of this ORDER if they do
not reflect a provision for loan and lease losses and an ALLL which are
adequate considering the condition of the Bank's loan portfolio, and
which, at a minimum,
{{6-30-01 p.C-5124}}
incorporate the adjustments required by this
paragraph of the ORDER.
(d) Prior to submission or publication of all Reports of Condition and
Income required by the FDIC and OBRE after the effective date of this
ORDER, the board of directors of the Bank shall review the adequacy of
the Bank's ALLL and accurately report the same. The minutes of the
board meeting at which such review is undertaken shall indicate the
findings of the review, the amount of increase in the reserve
recommended, if any, and the basis for determination of the amount of
reserve provided.
(e) While this ORDER is in effect, the Bank shall submit to the
Regional Director and Commissioner copies of all Reports of Condition
and Income filed with the FDIC and OBRE, including those Reports filed
pursuant to this paragraph.
(f) ALL entries required by this paragraph shall be made prior to any
Tier 1 capital determinations required by this ORDER.
[.9]9. (a) Within 60 days from the effective date of this ORDER, the Bank
shall formulate and submit to the Regional Director and Commissioner
for review and comment, a written plan to reduce the Bank's risk
position in each asset in excess of $20,000 which is classified
"Substandard" in the FDIC and OBRE Reports of Examination as of
December 11, 2000. In developing such plan, the Bank shall, at a
minimum:
(i) Review the financial position of each such borrower,
including source of repayment, repayment ability, and alternative
repayment ability, and alternative repayment sources; and
(ii) Evaluate the available collateral for each such credit, including
possible actions to improve the Bank's collateral position.
(b) Such plan shall include, but not be limited to:
(i) Dollar levels to which the Bank shall reduce each asset
within six months from the effective date of this ORDER; and
(ii) Provisions for the submission of monthly written progress reports
to the Bank's board of directors for review and notation in minutes of
the meetings of the board of directors.
(c) As used in this paragraph, "reduce" means to: (1)
collect; (2) charge off; or (3) improve the quality of such assets
so as to warrant removal of any adverse classification by the FDIC and
OBRE.
(d) Within 30 days from the receipt of any comment from the Regional
Director and Commissioner, and after the adoption of any recommended
changes, the Bank shall approve the written plan, which approval shall
be recorded in the minutes of a board of directors' meeting.
Thereafter, the Bank shall implement and follow this written plan.
[.10]10. Within 90 days from the effective date of this ORDER, the Bank
shall correct the technical exceptions listed in the FDIC and OBRE
Reports of Examination of December 11, 2000.
[.11]11. Within 90 days from the effective date of this ORDER, the Bank
shall implement and monitor compliance with written loan plan
guidelines previously established by the Bank to reduce the volume of
its delinquent loans. Corrective measures to implement and monitor
compliance shall include, at a minimum, provisions which: (1)
prohibit the extension of credit for the payment of interest; (2)
prohibit the extension and/or renewal of loan terms and loan payments,
especially in regard to classified borrowers, without prior board
approval; (3) delineate areas of responsibility for loan officers;
and (4) establish acceptable guidelines for the collection of
delinquent credits. Corrective measures shall include, but not be
limited to:
(a) Dollar levels to which the Bank shall reduce delinquencies
within 6 and 12 months from the effective date of this ORDER; and
(b) Provisions for the submission of monthly written progress reports
to the Bank's board of directors for review and notation in minutes of
the meetings of the board of directors.
[.12]12. As of the effective date of this ORDER, the Bank's loan committee
shall meet at least once a month. The loan committee shall, at a
minimum, perform the following functions:
(a) Evaluate, grant, and/or approve loans in accordance with the
Bank's loan policy amended to comply with this ORDER. The loan
committee shall provide a thorough, written explanation of any
deviations from the loan policy. Such explanation(s) shall address how
said exceptions are in the Bank's interest, and shall be reflected in
the minutes of the corresponding committee meeting.
{{6-30-01 p.C-5125}}
(b) Review and monitor the status of repayment and collection of
overdue and maturing loans, as well as all other loans classified
"Substandard" in the FDIC and OBRE Reports of Examination as of
December 11, 2000, or that are included on the Bank's internal watch
list.
(c) Review and give prior written approval for all advances,
renewals, or extensions of credit to any borrower or the borrower's
related interests when the aggregate volume of credit extended to the
borrower and the borrower's related interests exceeds $50,000. For
purposes of this ORDER, the term "related interest" is defined
pursuant to section 215.2(n) of Regulation O of the Board of Governors
of the Federal Reserve System, 12 C.F.R. §215.2(n).
(d) Review all applications for new loans and renewals of existing
loans to Bank directors, executive officers, and their related
interests, and prepare a written opinion as to whether the credit is in
conformance with the Bank's loan policy and all applicable laws and
regulations. Such applications, renewals, and written opinions shall be
referred to the Bank's board of directors for consideration.
(e) Maintain a written record of the review and status of the
aforementioned loans. Such record shall be included in the board
minutes.
[.13]13. (a) Within 90 days from the effective date of this ORDER, and
annually thereafter, the board of directors of the Bank shall review
the Bank's loan policy and procedures for adequacy and, based upon
this review, shall make all appropriate revisions to the policy
necessary to strengthen lending procedures and abate additional loan
deterioration. The revised written loan policy and any subsequent
modifications shall be submitted to the Regional Director and
Commissioner for review and comment.
(b) Revisions to the Bank's loan policy required by this paragraph, at
a minimum, shall include provisions:
(i) Establishing review and monitoring procedures to ensure that
all lending personnel are adhering to established lending procedures
and that the directorate is receiving timely and fully documented
reports on loan activity, including any deviations from established
policy;
(ii) Requiring that all extensions of credit originated or renewed by
the Bank be supported by current credit information and collateral
documentation, including lien searches and the perfection of security
interests; have a clearly defined and stated purpose; and have a
predetermined and realistic repayment source and schedule. Credit
information and collateral documentation shall include current
financial information, profit and loss statements or copies of tax
returns, and cash flow projections, and shall be maintained throughout
the term of the loan with loan officer notations and comments;
(iii) Requiring board of directors' review and monitoring of the
status of repayment and collection of overdue and maturing loans, as
well as those loans which were classified "Substandard" in the
FDIC and OBRE Reports of Examination of the Bank as of December 11,
2000;
(iv) Requiring the maintenance of an effective internal loan watch
list;
(v) Requiring a written plan to lessen the risk position in each line
of credit over $20,000 and identified as a problem credit on the
Bank's internal loan watch list;
(vi) Prohibiting the capitalization of interest, taxes, insurance
premiums, or other loan related expenses unless the board of directors
provides, in writing, a detailed explanation of why said deviation is
in the best interest of the Bank;
(vii) Requiring prior written approval by the Bank's board of
directors for any extension of credit, renewal, or disbursement in an
amount which, when aggregated with all other extensions of credit to
that person and related interests of that person, exceeds $50,000;
(viii) Requiring a nonaccrual policy in accordance with the Federal
Financial Institutions Examination Council's Instructions for the
Consolidated Reports of Condition and Income;
(ix) Requiring accurate reporting of past due loans to the loan
committee and board on at least a monthly basis;
(x) Establishing standards for extending unsecured credit;
(xi) Establishing limitations on the amount that can be loaned in
relation to established collateral values, including the requirement
that the source of the valuation
{{6-30-01 p.C-5126}}
be identified and that such collateral
valuations be completed prior to the disbursement of loan proceeds, and
be performed on a periodic basis over the term of the loan;
(xii) Establishing standards for the institution of collection efforts
by the loan officer or consultant;
(xiii) Establishing guidelines for timely recognition of loss through
charge-off;
(xiv) Prohibiting the extension of a maturity date, advancement of
additional credit or renewal of a loan to a borrower whose obligations
to the Bank were classified "Substandard" or "Loss," in
whole or in part, by the FDIC or OBRE as of December 11, 2000, or in a
subsequent Report of Examination, without the full collection in cash
of accrued and unpaid interest, unless the loans are well secured
and/or are adequately supported by current and complete financial
information, and the renewal extension has first been approved in
writing by a majority of the Bank's board of directors;
(xv) Establishing officer lending limits and limitations on the
aggregate level of credit to any one borrower which can be granted
without the prior approval of the Bank's loan committee;
(xvi) Requiring that collateral appraisals be completed prior to the
making of secured extensions of credit. In addition, periodic
collateral valuations shall be performed for all secured "problem
loans";
(xvii) Prohibiting the payment of any overdraft in excess of $2,500
without the prior written approval of the Bank's loan committee, and
imposing appropriate limitations on the use of Cash Items account; and
(xviii) Establishing limitations on the maximum volume of loans in
relation to total assets.
(c) Within 60 days from receipt of any comments from the
Regional Director and Commissioner, and after the adoption of any
recommended changes, the board of directors shall approve the written
loan policy and any subsequent modification thereto, which approval
shall be recorded in the minutes of the board of directors' meeting.
Thereafter, the Bank shall implement and follow the written loan policy
and any subsequent modifications thereto. The Bank shall inform the
Regional Director and Commissioner, in writing, of the manner in which
it intends to implement this policy and ensure compliance therewith.
[.14]14. (a) Within 90 days from the effective date of this ORDER, the Bank
shall implement a written profit plan with realistic, comprehensive
budgets for all categories of income and expense for calendar years
2001 and 2002. The plan shall contain formal goals and strategies,
consistent with sound banking practices, to reduce discretionary
expenses and to improve the Bank's overall earnings. A copy of the
plan shall be submitted to the Regional Director and Commissioner upon
its completion.
(b) The written profit plan shall address, at a minimum:
(i) Strategies to improve the Bank's earnings, both short term
and long term; and
(ii) Identify all assumptions used in preparing the plan.
(c) Within 30 days from the end of each calendar quarter
following completion of the written profit plan required by this
paragraph, the Bank's board of directors shall evaluate the Bank's
actual performance in relation to the plan and budget required by this
paragraph and record the results of the evaluation, and any actions
taken by the Bank, in the minutes of the board of directors' meeting
at which such evaluation is undertaken.
(d) The written profit plan and budget required by this ORDER shall be
prepared and submitted to the Regional Director and Commissioner for
review and comment 30 days from the end of each calendar year for which
this ORDER is in effect. Within 30 days of receipt of all comments from
the Regional Director and Commissioner, and after adoption of any
recommended changes, the Bank shall approve the plan, which approval
shall be recorded in the minutes of a board of directors' meeting.
Thereafter, the Bank shall implement and follow the plan.
[.15]15. The Bank shall provide 30 days' prior written notice to the
Regional Director and Assistant Commissioner before engaging in any new
line of business in excess of 25% of Tier 1 capital, and prior to
conducting transactional internet banking activities. Such notice shall
include a detailed business plan which describes the nature and scope
of the Bank's planned activities and includes pro-forma financial
projections for the first three years of operation.
[.16]16. Following the effective date of this ORDER, the Bank shall send to
its shareholders
{{9-30-03 p.C-5127}}
or otherwise furnish a description of this ORDER: (1)
in conjunction with the Bank's next shareholder communication; and (2)
in conjunction with its notice or proxy statement preceding the Bank's
next shareholder meeting. The description and any accompanying
communication, notice, or statement shall be sent to the FDIC
Registration and Disclosure Section, 550 17th Street, N.W., Washington,
D.C. 20429, and to OBRE, 500 E. Monroe, Suite 900, Springfield,
Illinois 62701, for review at least 20 days prior to dissemination to
shareholders. Any changes requested to be made by the FDIC and OBRE
shall be made prior to dissemination of the description, communication,
notice, or statement.
[.17]17. (a) Within 30 days from the effective date of this ORDER, the
Bank's board of directors shall develop, adopt, and implement a
program that will provide for monitoring of the Bank's compliance with
this ORDER.
(b) Following the required date of compliance with subparagraph
(a) above, the Bank's board of directors shall review the Bank's
compliance with this ORDER and record its review in the minutes of each
regularly scheduled monthly board of directors' meeting.
18. Within 30 days of each calendar quarter following the effective
date of this ORDER, the Bank shall furnish to the Regional Director and
Commissioner written progress reports, signed by each member of the
Bank's board of directors, detailing the form and manner of any
actions taken to secure compliance with this ORDER. Such reports may be
discontinued when the corrections required by this ORDER have been
accomplished and the Regional Director and Commissioner have, in
writing, released the Bank from making further reports.
The effective date of this ORDER shall be 10 days after issuance of the
ORDER.
The provisions of this ORDER shall be binding upon the Bank, its
institution-affiliated parties, and any successors and assigns thereof.
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 OBRE.
Pursuant to delegated authority.
Dated this 20th day of April, 2001.
