[¶11,887] In the Matter of First Farmers State Bank, Sullivan, Indiana, Docket
No. 01-085k (1-16-02).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $1,200.
In the Matter of
FIRST FARMERS STATE BANK SULLIVAN, INDIANA (Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
The FIRST FARMERS STATE BANK, SULLIVAN, INDIANA ("Bank") has
been advised of the right to receive a NOTICE OF ASSESSMENT OF CIVIL
MONEY PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, AND NOTICE OF
HEARING ("NOTICE") issued by the Federal Deposit Insurance
Corporation ("FDIC") detailing the violations for which a civil
money penalty may be assessed against the Bank pursuant to the Flood
Disaster Protection Act ("Flood Act"), as amended, 42 U.S.C.
§4012a, section 8(i)(2) of the Federal Deposit Insurance Act
("FDI Act") 12 U.S.C. §1818(i)(2), and Part 339 of the FDIC
Rules and Regulations, 12 C.F.R. Part 339, and has been further advised
of the right to a hearing on the alleged charges under the Flood Act,
42 U.S.C. §4012a(f), section 8(i) of the FDI Act, 12 U.S.C.
§1818(i), and the FDIC Rules of Practice and Procedure, 12 C.F.R.
Having waived those rights, the Bank entered into a STIPULATION AND
CONSENT TO THE ISSUANCE OF AN ORDER TO PAY PENALTY
("AGREEMENT") with a representative of the Legal Division of the
FDIC, whereby solely for the purpose of this proceeding and without
admitting or denying any violations, the Bank consented and agreed to
pay a civil money penalty in the amount of $1,200.00 related to its
failure to obtain flood insurance on 6 loans secured by property
located in a flood hazard area in which flood insurance has been made
available under the National Flood Insurance Act of 1968, and by
failing to provide notice to borrowers on 19 loans secured by buildings
or mobile homes located or to be located in a designated special flood
The FDIC considered the matter and determined it had reason to believe
that the Bank has engaged or participated in violations of law or
regulations for which a civil money penalty of $1,200.00 is appropriate
to be assessed against the Bank, pursuant to the Flood Act, 42 U.S.C.
§4012a, section 8(i)(2) of the FDI Act, 12 U.S.C. §1818(i)(2),
and Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339.
ORDER TO PAY
IT IS HEREBY ORDERED, that FIRST FARMERS STATE BANK, SULLIVAN,
INDIANA be, and hereby is, assessed a civil money penalty of $1,200.00
pursuant to the Flood Act, 42 U.S.C. §4012a, section 8(i)(2) of the
FDI Act, 12 U.S.C. §1818(i)(2), and Part 339 of the FDIC Rules and
Regulations, 12 C.F.R. Part 339, the receipt of which is acknowledged.
This ORDER TO PAY shall be effective upon issuance.
Pursuant to delegated authority.
Dated at Washington, D.C., this 16th day of January, 2002.