[¶12,227] In the Matter of Commerce Bank & Trust Company, Worcester,
Massachusetts, Docket No. 04-051k (6-17-04).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $4,600.
In the Matter of
COMMERCE BANK & TRUST COMPANY WORCESTER, MASSACHUSETTS (Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
Commerce Bank & Trust Company, Worcester, Massachusetts, (the
"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, and Parts 308 and 339 of the FDIC Rules
and Regulations, 12 C.F.R. Parts 308 and 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 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 four thousand six
hundred dollars ($4,600) related to the Bank's failure: (1) to secure
or maintain flood insurance on ten loans secured by property located in
a flood hazard area, 12 C.F.R. §339.7, by failing to force-place
flood insurance within 45 days with respect to two loans secured by
property located in a flood hazard area, and 12 C.F.R. §339.9(a),
with respect to nine loans, by failing either to provide the requisite
notification to borrowers that the borrowers' collateral was located
in a flood hazard area and that flood insurance was available, or to
provide such notification in a timely manner.
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 the assessment of a civil money penalty of $4,600
against the Bank is appropriate 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 Consent Agreement and issues the
ORDER TO PAY
IT IS HEREBY ORDERED that Commerce Bank & Trust Company,
Worcester, Massachusetts, be, and hereby is, assessed a civil money
penalty of $4,600 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 acknowledged.
This Order to Pay shall be effective upon issuance.