{{10-31-03 p.C-5831}}
[¶12,077] In the Matter of The Halstead Bank, Halstead, Kansas, Docket No.
03-060k (8-22-03).
Respondent agrees to pay civil money assessed by the FDIC in the amount
of $6,300.
In the Matter of
THE HALSTEAD BANK
HALSTEAD, KANSAS
(Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
FDIC-03-060k
The Halstead Bank, Halstead, Kansas ("Bank"), has been
advised of its right to receive a NOTICE OF ASSESSMENT OF CIVIL MONEY
PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, AND
NOTICE OF HEARING ("NOTICE OF ASSESSMENT") 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 of 1973 ("Flood
Act"), as amended, 42 U.S.C. §4012a, and Part 339 of the FDIC
Rules and Regulations, 12 C.F.R. Part 339 ("Part 339"), and has
been further advised of its right to a hearing on the alleged charges
under the Flood Act, 42 U.S.C. §4012a(f)(4), and Part 308 of 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 THE ISSUANCE OF AN ORDER TO PAY CIVIL MONEY PENALTY
("CONSENT 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 $6,300 related to
the violations of the Flood Act and Part 339. The FDIC has reason to
believe that the Bank has violated the Flood Act and Part 339 in that
it has made, increased, extended or renewed loans secured by a building
or mobile home located or to be located in a special flood hazard area
without requiring that: the collateral be covered by flood insurance;
the collateral be covered by flood insurance for the term of the loan;
and the collateral be covered by sufficient flood insurance, which
violations were cited at the FDIC's December 2, 2002, examination.
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 $6,300 is appropriate to
be assessed against the Bank, pursuant to the Flood Act and Part 339.
The FDIC, therefore, accepts the CONSENT AGREEMENT and issues the
following:
ORDER TO PAY
IT IS HEREBY ORDERED that the Bank be, and hereby is, assessed a
civil money penalty of $6,300 pursuant to the Flood Act and Part 339,
the receipt of which is acknowledged.
This Order to Pay Civil Money Penalty shall be effective upon its
issuance.
Pursuant to delegated authority.
Dated at Washington, D.C., this 22nd day of August, 2003.