[¶12,507] In the Matter of Port Washington State Bank, Port Washington,
Wisconsin, Docket No. 05-129k (12-21-05).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $8,600.
In the Matter of
PORT WASHINGTON STATE BANK PORT WASHINGTON, WISCONSIN (Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
Port Washington State Bank, Port Washington, Wisconsin
("Bank") has been advised that a penalty under this subsection
may be issued only after notice and an opportunity for a hearing on the
record, pursuant to 42 U.S.C. §4012a(f)(4), 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. §4012(a) and Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 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 ISSUANCE OF AN ORDER TO PAY ("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 $8,600, related to its alleged failure to obtain an
adequate amount, or failure to obtain flood insurance available under
the National Flood Insurance Act, in violation of section 339.3(a) of
the FDIC Rules and Regulations, 12 C.F.R. §339.3(a). In 21 instances
the Bank failed to provide the required notice to borrowers on loans
secured by property located in special flood hazard areas prior to
origination, in violation of section 339.9 of the FDIC Rules and
Regulations, 12 C.F.R. §339.9. In addition, for 8 loans the Bank
failed to follow the notice and force placement requirements of
section 339.7 of the FDIC's Rules and Regulations, 12 C.F.R.
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 $8,600 is appropriate to
be assessed against the Bank, pursuant to the Flood Act, 42 U.S.C.
§4012a, and Part 339 of the FDIC Rules and Regulations, 12 C.F.R.
ORDER TO PAY
IT IS HEREBY ORDERED, that by reason of the violations set
forth in paragraph 3 of the CONSENT AGREEMENT, a penalty of $8,600 be,
and hereby is, assessed against Port Washington State Bank, Port
Washington, Wisconsin. The Bank shall pay the civil money penalty to
the Treasury of the United States.
This ORDER TO PAY shall be effective upon issuance.
Pursuant to delegated authority.
Dated at Washington, D.C., this 21st day of December, 2005.