In the Matter of THE BANK OF CHESTER COUNTY WEST CHESTER,PENNSYLVANIA
(Insured State Nonmember Bank) MODIFICATION OF ORDER TO CEASE AND DESIST
The Bank of Chester County, West Chester, Pennsylvania ("Bank"), having been advised of its right to a Notice of Charges and of Hearing detailing the unsafe or unsound banking practices and violations of law and/or regulations alleged to have been committed by the Bank and of its right to a hearing on such alleged charges under section 8(b) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b), prior to the issuance of the ORDER TO CEASE AND DESIST dated December 24, 1992, Docket No. FDIC-92-369b ("ORDER"), and having waived those rights, and having been further advised of the same rights in connection herewith, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A MODIFICATION TO THE ORDER TO CEASE AND DESIST ("MODIFICATION CONSENT AGREEMENT") with counsel for the Federal Deposit Insurance Corporation ("FDIC"), dated April 23, 1993, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices or violations of law and/or regulations, the Bank consented to the issuance of a MODIFICATION OF THE ORDER TO CEASE AND DESIST ("MODIFICATION") BY THE FDIC.
The FDIC accepted the MODIFICATION CONSENT AGREEMENT and hereby modifies the ORDER TO CEASE AND DESIST as follows:
The following Paragraph 18 is hereby added to the ORDER:
18. The Bank shall: (a) immediately rescind all agreements or portions of agreements with former executive officers of the Bank which constitute "golden parachute payments" as defined in section 18(k)(4) of the Act, 12 U.S.C. § 1828(k)(4), and immediately cease making any payments pursuant thereto; and (b) the Bank shall not make any "golden parachute payments" to any present or future executive officers of the Bank without the prior written consent of or a written statement of nonobjection from the Regional Director.
This MODIFICATION shall become effective immediately upon its issuance.
The provisions of the ORDER as modified by this MODIFICATION shall be binding upon the Bank, its successors, assigns, directors, officers, employees, agents, and other institution-affiliated parties.
Except as specifically modified herein, all of the terms and conditions of the ORDER heretofore issued against the Bank on December 24, 1992, and which became effective on January 3, 1993, shall remain in full force and effect.
The provisions of the ORDER as modified by this MODIFICATION shall remain effective and enforceable except to the extent that, and until such time as, any provisions of the ORDER shall have been further modified, terminated, suspended, or set aside by the FDIC.
Date of Issuance: April 23, 1993.
Pursuant to delegated authority.