[¶11,974] In the Matter of Bank of Mingo, Naugatuck, West Virginia, Docket No.
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $12,400.
In the Matter of
BANK OF MINGO NAUGATUCK, WEST VIRGINIA (Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
BANK OF MINGO, NAUGATUCK, WEST VIRGINIA ("BANK") has been
advised that a penalty under this subsection may be issued only after
notice and an opportunity for a hearing on the record, pursuant to
42 U.S.C. §4012a(f)(4), may be 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, 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), and
the FDIC Rules of Practice and Procedure, 12 C.F.R. Part 308.
Having waived those rights, the Bank entered into a STIPULATION AND
CONSENT TO ORDER TO PAY CIVIL MONEY 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 $12,400 related to its (a) its failure to secure or
maintain flood insurance on 28 of the 47 loans secured by improved real
estate located in areas determined by the Director of the Federal
Emergency Management Agency to have special flood hazards and
originated since the examination of January 13, 1999, (b) its failure
to provide the borrower with written notice of special flood hazards
and availability of Federal flood disaster relief assistance on 10 of
47 covered loans, and (c) by failing to provide said notice of special
flood hazards in a timely manner on 28 of 47 covered loans.
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 $12,400 is appropriate
to be assessed against the Bank, pursuant to the Flood Act, 42 U.S.C.
§4012a, and Part 339 of the FDIC Rules and Regulations, 12 C.F.R.
The FDIC therefore accepts the Agreement and issues the following:
ORDER TO PAY
IT IS HEREBY ORDERED that BANK OF MINGO, NAUGATUCK, WEST VIRGINIA
be, and hereby is, assessed a civil money penalty of $12,400, pursuant
to the Flood Act, 42 U.S.C. §4012a, and Part 339 of the FDIC Rules
and Regulations, 12 C.F.R. Part 339, the receipt of which is
This Order to Pay shall be effective upon issuance.
Dated at Washington, D.C., this 3rd day of October, 2002.