(This order was terminated by order of the FDIC dated 5-19-04; see ¶
16,385.)
[.1] Compliance ReportsCompliance Reports
[.2] Progress ReportWritten Report Required
[.3] ShareholdersDisclosure of Cease and Desist Order Required
In the Matter of
FIRST AMERICAN BANK
CARPENTERSVILLE, ILLINOIS
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-03-190b
OBRE No. 2003-BBTC-86
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First American Bank, Carpentersville, Illinois
("Bank"), having been advised of its right to a NOTICE OF CHARGES
AND OF HEARING detailing the violations of laws and regulations 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 State of Illinois, Office
of Banks and Real Estate ("OBRE"), and having waived those
rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN
ORDER TO CEASE AND DESIST ("STIPULATION") with representatives of
the Federal Deposit Insurance Corporation ("FDIC") and OBRE,
dated November 18, 2003, whereby, solely for the purpose of this
proceeding and without admitting or denying the charges of violations
of laws and regulations, 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 they had
reason to believe that the Bank had engaged in violations of laws and
regulations. The FDIC and OBRE, therefore, accepted the STIPULATION 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 violations of laws and regulations:
A. The Equal Credit Opportunity Act, 15 U.S.C. §1691 et
seq.;
B. The Fair Housing Act, 42 U.S.C. §3601 et seq.;
C. The Home Mortgage Disclosure Act of 1975, 12 U.S.C. §2801
et seq.;
D. The Flood Disaster Protection Act of 1973, as amended, 42 U.S.C.
§ § 40014129; and
E. The Real Estate Settlement Procedures Act of 1974, 12 U.S.C.
§2601 et seq.
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 60 days of the effective date of this ORDER, the Bank
shall submit to the FDIC and the OBRE an acceptable comprehensive
written plan to ensure the Bank's compliance with all applicable
consumer compliance laws and regulations. The plan shall respond to all
criticisms and requirements set forth in the Consumer Affairs Report of
Examination of the Bank for the most recent examination conducted by
the Federal Reserve Bank of Chicago (the "Report of
Examination"), and shall, at a minimum, include:
(i) Steps to address all violations of law and deficient
practices set forth in the Report of Examination, including violations
and deficiencies relating to compliance with:
(A) The Equal Credit Opportunity Act, 15 U.S.C. §1691 et
seq.;
(B) The Fair Housing Act, 42 U.S.C. §3601 et seq.;
(C) The Home Mortgage Disclosure Act, 12 U.S.C. §2801 et
seq.;
(D) The Flood Disaster Protection Act of 1973, as amended, 42 U.S.C.
§§40014129; and
(E) The Real Estate Settlement Procedures Act, 12 U.S.C. §2601
et seq.
(ii) Board of directors and management oversight of the Bank's
consumer compliance activities;
(iii) Allocation of adequate resources to ensure the Bank's compliance
with all applicable consumer protection laws and regulations;
(iv) Procedures for the ongoing collection of monitoring
information for all applications for all loan products as required by
section 202.5 of Regulation B of the Board of Governors, 12 C.F.R.
§202.5(b)(2);
(v) Training for current and future directors, officers, and all
relevant personnel of the Bank so that they develop and maintain a
sufficient understanding of the requirements of consumer protection
laws and regulations that pertain to their respective responsibilities;
(vi) Consumer compliance reviews and audits, including, at a minimum, a
comparative file analysis for fair lending and an annual independent
review of the Bank's compliance with all consumer protection laws and
regulations; and
(vii) Actions designed to generate loan applications and approvals in
predominantly minority census tracts, and measurable goals to enable
the Bank's board
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(b) The Bank shall adopt the approved plan within 10 days of
approval by the FDIC and the OBRE. Thereafter, the Bank shall implement
and follow the plan. During the term of this ORDER, the Bank shall not
amend or rescind the approved plan without the prior written approval
of the FDIC and the OBRE.
[.2] 2. Within 30 days after the end of each calendar quarter
following the effective date of this ORDER (December 31, March 31, June
30, and September 30), the Bank shall submit to the FDIC and the OBRE a
written progress report that, at a minimum, includes corrective actions
taken to comply with this ORDER, and the results thereof, and
corrective actions taken for violations and deficiencies noted by
future audits or reviews of the Bank's consumer compliance activities
or future compliance reports of examinations. Such reports may be
discontinued when the FDIC and the OBRE have released the Bank, in
writing, from making further reports.
3. All communications regarding this ORDER shall be sent to:
Scott M. Polakoff
Regional Director
Federal Deposit Insurance Corporation
500 West Monroe Street, Suite 3500
Chicago, Illinois 60661
Scott D. Clarke
Assistant Commissioner
State of Illinois
Office of Banks and Real Estate
500 East Monroe
Springfield, Illinois 62701-1532
Roman Strzelczyk
Senior Vice President
First American Bank
50 East Adams
Chicago, Illinois 60603
4. Notwithstanding any provision of this ORDER to the contrary,
the FDIC and the OBRE may, in their sole discretion, grant written
extensions of time to the Bank to comply with any provision of this
ORDER.
5. The provisions of this ORDER shall not bar, stop, or otherwise
prevent the FDIC, the OBRE, or any federal or state agency or
department from taking any other action affecting the Bank or any of
its current or former institution-affiliated parties.
[.3] 6. Following the effective date of this ORDER, the Bank shall
send to its shareholders a copy or description of this ORDER: (1) in
conjunction with the Bank's next shareholder communication; and (2) in
conjunction with the Bank's notice or proxy statement preceding the
Bank's next shareholder meeting. The description shall fully describe
this ORDER in all material respects. 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 East 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.
The effective date of this ORDER shall be 10 calendar days after
its issuance by the FDIC and OBRE.
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 provision has
been modified, terminated, suspended, or set aside by the FDIC and
OBRE.
Pursuant to delegated authority.
Dated: December 9, 2003.