Federal Deposit
Insurance Corporation

   [¶12,222] In the Matter of Choice Financial Group, Grafton, North Dakota, Docket No. 04-082k (6-2-04).

   Respondent agrees to pay civil money penalty assessed by the FDIC in the amount of $2,450.

In the Matter of
CHOICE FINANCIAL GROUP
GRAFTON, NORTH DAKOTA
(Insured State Nonmember Bank)
ORDER TO PAY
CIVIL MONEY PENALTY

FDIC-04-082k

   Choice Financial Group, Grafton, North Dakota ("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 two thousand four hundred fifty dollars ($2,450) 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 for the term of the loan; which violations were cited at the FDIC's October 6, 2003, 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 $2,450 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:

   IT IS HEREBY ORDERED that the Bank be, and hereby is, assessed a civil money penalty of $2,450 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 this 2nd day of June, 2004.