In the Matter of
MIDWESTONE BANK BURLINGTON, IOWA (Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
MidWestOne Bank, Burlington, Iowa ("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 $5,200 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 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;
requiring that the collateral be covered by sufficient flood insurance;
and notifying the borrower whether flood insurance is available for the
collateral, which violations were cited at the FDIC's May 24, 2004,
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 $5,200 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
ORDER TO PAY
IT IS HEREBY ORDERED that the Bank be, and hereby is, assessed a
civil money penalty of $5,200 pursuant to the Flood Act and Part 339
the receipt of which is hereby acknowledged.
This Order to Pay Civil Money Penalty shall effective upon its
Pursuant to delegated authority.
Dated at Washington, D.C., this 24th day of January, 2005.