Federal Deposit
Insurance Corporation

{{6-30-92 p.A-1863}}
   [¶5173] In the Matter of Progressive National Bank of Rayne, Rayne, Louisiana, Docket No. FDIC-90-45a (2-12-92).

   Board finds that Bank has not corrected unsafe or unsound practices and/or condition and orders termination of insured status, effective March 31, 1992. (This order was terminated by order of the FDIC dated 4-13-92; see ¶ 9009.)

In the Matter of

PROGRESSIVE NATIONAL BANK
OF RAYNE
RAYNE, LOUISIANA
(INSURED NATIONAL BANK)
ORDER TERMINATING
INSURED STATUS
FDIC-90-45a

   By certified mail dated April 24, 1990, the Federal Deposit Insurance Corporation ("FDIC") notified the Honorable Robert L. Clarke, Comptroller of the Currency ("Primary Regulator"), of the FDIC's determination that Progressive National Bank of Rayne, Rayne, Louisiana ("Insured Institution"), had engaged or was engaging in unsafe or unsound practices and/or was in an unsafe or unsound condition to continue operations as an insured depository institution and that termination of the Insured Institution's insured status was necessary, and also informed the Primary Regulator of the facts and circumstances on which said determination was based.
   On August 21, 1990, the FDIC, having determined that correction of the unsafe or unsound practices and/or condition had not occurred, issued a NOTICE OF INTENTION TO TERMINATE INSURED STATUS, FINDINGS, AND ORDER SETTING HEARING to the Insured Institution, and an Administrative Law Judge was appointed to hear the matter.
   Prior to the commencement of the hearing, the Insured Institution, in an effort to resolve the enforcement action, represented to the FDIC that it would increase its Part 325 Tier I capital by no less than $750,000 to restore the Insured Institution to a safe or sound condition. As a result, the FDIC and the Insured Institution entered into an agreement by executing the documents entitled "Settlement Agreement" and "Procedure Agreement," effective June 26, 1991.
   Based on a visitation of the Insured Institution dated October 8, 1991, the Regional Director (Supervision) of the FDIC's Memphis Regional Office ("Regional Director") has received information that the Insured Institution failed to increase its Part 325 Tier I capital by the sum of $750,000, on or before October 8, 1991, as required by paragraph 2(a) of the Settlement Agreement and that there has been no material compliance with the Settlement Agreement. Furthermore, the Regional Director has provided notice to the Board of Directors ("Board") of the FDIC {{6-30-92 p.A-1864}}of the Insured Institution's failure to comply, as provided in the Settlement Agreement.
   NOW, THEREFORE, in conformity with the Settlement Agreement and Procedure Agreement and pursuant to section 8(a) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(a), IT IS HEREBY ORDERED:
   FIRST, that the insured status of the Insured Institution be, and the same hereby is, terminated effective as of the close of business on March 31, 1992.
   SECOND, that the Insured Institution, before the close of business on March 16, 1992, shall give notice to its depositors of the termination of its status as an insured institution, such notice to be mailed by First Class United States Mail to each depositor at the depositor's last address of record as shown upon its books, and the Insured Institution shall furnish the FDIC with a copy of the notice mailed, together with an affidavit executed by the person who mailed the same, which affidavit shall further state the fact of mailing said notice and the date of the mailing thereof, and shall further state that the said notice was mailed to each depositor of the Insured Institution at his or her last address as shown upon the records of the Insured Institution as of the date the notice was mailed. The said notice shall be in the form as follows:

   (Date) ______.
   1. The status of Progressive National Bank of Rayne, Rayne, Louisiana, as an insured depository institution, under the provisions of the Federal Deposit Insurance Act, will terminate as of the close of business on the ___ of ___.
   2. Any deposits made by you after that date, either new deposits or additions to existing deposits, will not be insured by the Federal Deposit Insurance Corporation.
   3. Insured deposits in Progressive National Bank of Rayne, Rayne, Louisiana, and its branches on the 31st day of March, 1992, will continue to be insured, as provided by the Federal Deposit Insurance Act, for two (2) years after the close of business on the 31st day of March, 1992. Provided, however, that any withdrawals after the close of business on the 31st day of March, 1992, will reduce the insurance coverage by the amount of such withdrawals.
Progressive National Bank of Rayne
801 The Boulevard
Box 609
Rayne, Louisiana 70578
   With prior written approval of the Regional Director of the FDIC's Memphis Regional Office, and Insured Institution may include in such notice any additional information or advice it may desire to give its depositors which is not inconsistent with this paragraph.
   THIRD, that the Insured Institution, before the close of business on March 16, 1992, shall publish in not less than two issues of a local newspaper of general circulation in Acadia Parish, Louisiana, the said notice and shall furnish the FDIC with proof of publication of such notice in the form of a certification from the publisher and a tear sheet or clipping evidencing each publication.
   FOURTH, that, if the Insured Institution refuses or fails to give such notice as specified in paragraphs SECOND and THIRD of this ORDER TERMINATING INSURED STATUS ("ORDER"), the FDIC is authorized to notify the Insured Institution's depositors by:

   (a) Sending notice of the termination of the insured status of the Insured Institution to each of the Insured Institution's depositors at his or her last address of record as shown on the books of the Insured Institution; and/or
   (b) Publishing notice of the termination of the Insured Institution's insured status by use of a detailed statement of the facts of this matter in one or more local newspapers of general circulation in Acadia Parish, Louisiana; and/or
   (c) Posting a copy of such notice in the lobby of the Insured Institution, local post office, and/or any other appropriate place of equal prominence; and/or
   (d) Seeking any judicial order as it may deem proper or necessary to require the Insured Institution to comply with the provisions herein.