(This order was terminated by order of the FDIC dated 7-22-04; see ¶16,390.)
[.1] ManagementQualifications Specified
[.2] Loan Operations OfficerQualifications Specified
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[.3] Board of DirectorsStaffing RequirementsWritten Review Required
[.4] LoansInternal Review and Grading System Required
[.5] Board of DirectorsResponsibilities of Directors Specified
[.6] Board of DirectorsEducational ProgramRequired
[.7] CapitalMaintain Tier 1 Capital
[.8] AssetsCharge-off or Collection
[.9] LoansExtensions of CreditTo Borrowers with Existing Adversely
Classified Credits
[.10] LoansRisk PositionReduction of Adversely Classified Lines of Credit
Required
[.11] Documentation ExceptionsCorrection Required
[.12] DividendsDividends Restricted
[.13] Earnings PlanWritten Earnings Plan Required
[.14] Loan PolicyPreparation or Revision of Policy Required
[.15] Interest Rate Risk PolicyPreparation or Revision of Policy Required
[.16] Loan Loss ReserveEstablishment of or Increase Required
[.17] Violations of LawCorrection of Violations Required
[.18] Strategic PlanPreparation of Required
[.19] ShareholdersDisclosure of Cease and Desist Order Required
In the Matter of
FIRST SOUTHERN BANK
FLORENCE, ALABAMA
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-02-023b
First Southern Bank, Florence, Alabama ("Bank"), having been
advised of its right to a Notice of Charges and of Hearing detailing
unsafe or unsound banking practices and violations of applicable laws
and regulations alleged to have been committed by the Bank and of its
right to a hearing on the alleged charges under section 8(b)(1) of the
Federal Deposit Insurance Act ("Act"), 12 U.S.C. §1818(b)(1),
and having waived those rights, entered into a STIPULATION AND CONSENT
TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT
AGREEMENT") with counsel for the Federal Deposit Insurance
Corporation ("FDIC") and with a representative of the Alabama
State Banking Department ("Alabama State Banking Department"),
dated March 4, 2002. The Alabama State Banking Department may issue an
order to cease and desist pursuant to the Code of Alabama
Section 5-6A-12 (1975). Whereby solely for the purpose of this
proceeding and without admitting or denying any of the charges of
unsafe or unsound banking practices and violations of laws and
regulations, the Bank has consented to the issuance of an ORDER TO
CEASE AND DESIST ("ORDER") by the FDIC and the Alabama State
Banking Department.
The FDIC and the Alabama State Banking Department considered the matter
and determined that there is reason to believe that the Bank had
engaged in unsafe or unsound banking practices and had committed
violations of laws and regulations. The FDIC and the Alabama State
Banking Department, therefore, accepted the Consent Agreement and
issued the following:
ORDER TO CEASE AND DESIST
It is HEREBY ORDERED, that the Bank, its institution-affiliated
parties, as that term is defined in section 3(u) of the Act, 12 U.S.C.
§1813(u), and its successors and assigns cease and desist from the
following unsafe and unsound banking practices and violations of law
and regulations:
1. Operating with inadequate management;
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2. Operating with inadequate equity capital and reserves in relation to
the volume and quality of assets held by the Bank;
3. Operating the Bank with a large volume of poor quality loans;
4. Operating with an inadequate allowance for loan and lease losses;
5. Following hazardous lending and lax collection practices;
6. Operating with inadequate provisions for interest rate risk;
7. Operating with inadequate routine and controls policies; and
8. Operating in such a manner as to produce operating losses.
IT IS HEREBY ORDERED, that the Bank, its institution-affiliated
parties, and its successors and assigns take affirmative action as
follows:
MANAGEMENT
[.1]1. (A) Beginning with the effective date of this ORDER, the Bank shall
have and retain a chief executive officer and a senior lending officer
having qualifications and experience commensurate with his or her
duties and responsibilities at the Bank including the following:
(i) a chief executive officer with proven ability in managing a
bank of comparable size and in effectively implementing lending,
investment and operating policies in accordance with sound banking
practices; and
(ii) a senior lending officer with significant appropriate lending,
collection, and loan supervision experience, and experience in
upgrading a low quality loan portfolio.
(b) Within 90 days of the effective date of this ORDER, the Bank
shall have and retain a chief financial officer with significant
appropriate experience in managing the operations of a bank of similar
size and complexity in accordance with sound banking practices.
(c) The qualifications of management shall be assessed on its ability
to:
(i) comply with the requirements of this ORDER;
(ii) operate the Bank in a safe and sound manner;
(iii) comply with applicable laws and regulations; and
(iv) restore all aspects of the Bank to a safe and sound condition,
including asset quality, capital adequacy, earnings, management
effectiveness, and liquidity.
(d) During the life of this ORDER, the Bank shall notify the
Regional Director of the FDIC's Atlanta Regional Office ("Regional
Director") and the Superintendent of Banks, Alabama State Banking
Department ("Superintendent") (collectively, "Supervisory
Authorities") in writing when it proposes to add any individual to
the Bank's board of directors ("Board") or employ any individual
as a senior executive officer. The notification must be received at
least 30 days before such addition or employment is intended to become
effective and should include a description of the background and
experience of the individual or individuals to be added or employed.
(e) The Bank may not add any individual to its Board or employ any
individual as a senior executive officer unless the Alabama State
Banking Department provides written approval of such individual and the
Regional Director does not issue a notice of disapproval pursuant to
section 32 of the Act, 12 U.S.C. §1831i.
(f) To facilitate having and retaining qualified management, the Board
shall, in no more than 30 days from the effective date of this ORDER,
develop a written analysis and assessment of the Bank's management and
staffing needs ("Management Plan"), which shall include, at a
minimum:
(i) identification of both the type and number of officer
positions needed to manage and supervise properly the affairs of the
Bank;
(ii) identification and establishment of such Bank committees as are
needed to provide guidance and oversight to active management;
(iii) evaluation of each Bank officer, and in particular the chief
executive officer and the senior lending officer, to determine whether
these individuals possess the ability, experience and other
qualifications required to perform present and anticipated duties,
including adherence to the Bank's established policies and practices,
and maintenance of the Bank in a safe and sound condition;
(iv) a plan of action to recruit and hire any additional or replacement
personnel
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with the requisite ability, experience and other
qualifications, which the Board determines are necessary to fill Bank
officer or staff member positions consistent with the Management Plan
as provided in this paragraph and other parts of this ORDER; and
(v) an organization chart.
(g) The written Management Plan and any subsequent modification
thereto shall be submitted to the Supervisory Authorities for review
and comment. No more than 30 days from the receipt of any comment from
the Supervisory Authorities, and after consideration of such comment,
the Board shall approve the written Management Plan and/or any
subsequent modification.
LOAN OPERATIONS OFFICER
2. (a) Within 60 days of the effective date of this ORDER, the
Bank shall hire or appoint a qualified person to serve as the Bank's
loan operations officer or manager. The Bank shall evaluate the
following qualities of the proposed loan operations officer: training
in loan operations and loan documentation, loan operations experience
in a financial institution, ability to comply with the requirements of
this ORDER and the Bank's written loan policy, and knowledge of
applicable laws and regulations and sound banking procedures.
(b) The loan operations officer shall be responsible for all operations
of the Bank's loan department including loan documentation, credit and
collateral files, and loan entries. The loan operations officer shall
report monthly and directly to the Bank's Audit Committee. The Audit
Committee will then report its findings to the entire Board. The
reports shall:
(i) disclose all outstanding documentation exceptions;
(ii) separately and prominently list each loan made during the
preceding month without complete documentation as required by the
Bank's loan policy; and
(iii) disclose each loan made during the preceding month that
represents an exception to the Bank's loan policy that was not
properly approved according to the requirements of the loan policy.
ORGANIZATIONAL STAFFING
[.3]3. Within 60 days of the effective date of this ORDER, the Bank's
Board will cause a written review to be made of the Bank's staffing
requirements, with particular emphasis on its loan administration and
loan collection needs. The Bank's Board will promptly thereafter
commence a program to hire or adequately train the number of personnel
needed to comply with the results of the review.
INTERNAL LOAN REVIEW
[.4]4. (A) Within 60 days from the effective date of this ORDER, the Bank
shall adopt an internal loan review and grading system to provide for
the periodic review of the Bank's loan portfolio in order to identify
and categorize the Bank's loans, and other extensions of credit which
are carried on the Bank's books as loans, on the basis of credit
quality. The Bank shall also within 60 days from the effective date of
this ORDER, submit the written internal loan review and grading system
to the Supervisory Authorities for review. Such system and its
implementation shall be satisfactory to the Supervisory Authorities as
determined at their initial review and at subsequent examinations
and/or visitations. At a minimum, the grading system shall provide for:
(i) specification of standards and criteria for assessing the
credit quality of the Bank's loans;
(ii) application of loan grading standards and criteria to the Bank's
loan portfolio;
(iii) categorization of the Bank's loans into groupings based on the
varying degrees of credit and other risks which may be presented under
the applicable grading standards and criteria, but in no case, will a
loan be assigned a rating higher than that assigned by examiners at the
last examination or visitation of the Bank unless approved in writing
by the Supervisory Authorities;
(iv) assessment of the likelihood that each loan exhibiting credit and
other risks will not be repaid according to its terms and conditions;
(v) identification of any loan that is not in conformance with the
Bank's loan policy;
(vi) identification of any loan which presents any unsafe or unsound
banking practice or condition or is otherwise in violation of any
applicable State or Federal law, regulation, or statement of policy;
and
(vii) requirement of a written report to be made to the Bank's Board
and Audit
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Committee, not less than quarterly after the effective date
of this ORDER. The report shall identify the status of those loans
which exhibit credit and other risks under the applicable grading
standards/criteria and the prospects for full collection and/or
strengthening of the quality of any such loans.
(b) The Bank shall also hire, appoint, or contract with a
qualified individual to administer the loan review system. The Bank
shall evaluate the following qualities of the proposed loan review
officer: training in loan review/examination procedure, knowledge of
loan documentation requirements, loan review/examination experience,
ability to comply with the requirements of this ORDER and the Bank's
written loan and loan review policies, and knowledge of applicable laws
and regulations and sound lending/banking procedures.
BOARD OF DIRECTORS
[.5]5. (a) Within 30 days from the effective date of this ORDER, the Board
shall increase its participation in the affairs of the Bank, assuming
full responsibility for the approval of sound policies and objectives
and for the supervision of all of the Bank's activities, consistent
with the role and expertise commonly expected for directors of banks of
comparable size. This participation shall include meetings to be held
no less frequently than monthly at which, at a minimum, the following
areas shall be reviewed and approved: reports of income and expenses;
new, overdue, renewal, insider, charged-off, and recovered loans;
investment activity; operating policies; and individual committee
actions. Board minutes shall fully document these reviews and
approvals, including the names of any dissenting directors.
[.6](b) Within 30 days from the effective date of this ORDER, the Bank's
Board shall develop and adopt an educational program for each member of
the Board. The educational program shall include, at a minimum:
(i) specific training in the areas of lending, operations, and
compliance with laws, rules and regulations applicable to banks
chartered in the state of Alabama;
(ii) specific training in the duties and responsibilities of the Board
in connection with the safe and sound operation of the Bank; and
(iii) provision for periodic training.
(c) The educational program shall be submitted within 30 days from
the effective date of this ORDER to the Supervisory Authorities for
review. The Board shall document the training activities in the minutes
of the next Board meeting following completion of the training. The
Board's actions as required by this paragraph shall be satisfactory to
the Supervisory Authorities at their initial review and as determined
at subsequent examinations and/or visitations.
(d) Within 30 days of the effective date of this ORDER, the Bank shall
designate a directors' committee to review and approve loans, with
such committee being structured so that a majority of its members are
persons who are not actively involved in the Bank's lending
activities.
CAPITAL
[.7]6. (a) Within 60 days from the effective date of this ORDER, the Bank
shall have Tier 1 capital in such an amount as to equal or exceed 5.00
percent of the Bank's total assets. Within 120 days from the effective
date of this ORDER, the Bank shall have Tier 1 capital in such an
amount as to equal or exceed 7.00 percent of the Bank's total assets.
Thereafter, during the life of this ORDER, the Bank shall maintain Tier
1 capital in such an amount as to equal or exceed 7.00 percent of the
Bank's total assets.
(b) By March 31, 2002, the Bank shall develop and adopt a plan to meet
the minimum risk-based capital requirements as described in the FDIC
Statement of Policy on Risk-Based Capital contained in Appendix A to
Part 325 of the FDIC Rules and Regulations, 12 C.F.R. Part 325,
Appendix A. The Plan shall be in a form and manner acceptable to the
Supervisory Authorities as determined at subsequent examinations.
(c) The level of Tier 1 capital to be maintained during the life of
this ORDER pursuant to Subparagraph 6(a) shall be in addition to a
fully funded allowance for loan and lease losses, the adequacy of which
shall be satisfactory to the Supervisory Authorities as determined at
subsequent examinations and/or visitations.
(d) Any increase in Tier 1 capital necessary to meet the requirements
of Paragraph 6 of this ORDER may be accomplished by the following:
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(i) sale of common stock;
(ii) direct contribution of cash by the Board, shareholders, and/or
parent holding company; or
(iii) other means acceptable to the Supervisory Authorities.
Any increase in Tier 1 capital necessary to meet the requirements
of Paragraph 6 of this ORDER may not be accomplished through a
deduction from the Bank's allowance for loan and lease losses except
with the prior written consent of the Supervisory Authorities.
(e) For the purposes of this ORDER, the terms "Tier 1
capital" and "total assets" shall have, the meanings ascribed
to them in Part 325 of the FDIC Rules and Regulations, 12 C.F.R.
§§ 325.2(t) and 325.2(v).
(f) If all or part of any necessary increase in Tier 1 capital required
by this Paragraph is accomplished by the sale of new securities, the
Board shall forthwith take all necessary steps to adopt and implement a
plan for the sale of such additional securities, including the voting
of any shares owned or proxies held or controlled by them in favor of
the plan. Should the implementation of the plan involve a public
distribution of the Bank's securities (including a distribution
limited only to the Bank's existing shareholders), the Bank shall
prepare offering materials fully describing the securities being
offered, including an accurate description of the financial condition
of the Bank and the circumstances giving rise to the offering, and any
other material disclosures necessary to comply with any applicable
securities laws. Prior to the implementation of the plan and, in any
event, not less than 15 days prior to the dissemination of such
materials, the plan and any materials used in the sale of the
securities shall be submitted to the FDIC, Registration and Disclosure
Section, 550 17th Street, N.W., Washington, D.C. 20429, and the Alabama
State Banking Department for review. Any changes requested to be made
in the plan or materials shall be made prior to their dissemination.
(g) In complying with the provisions of Paragraph 6 of this ORDER, the
Bank shall provide to any subscriber and/or purchaser of the Bank's
securities, a written notice of any planned or existing development or
other changes which are materially different from the information
reflected in any offering materials used in connection with the sale of
Bank securities. The written notice required by this Paragraph shall be
furnished within 10 days from the date such material development or
change was planned or occurred, whichever is earlier, and shall be
furnished to every subscriber and/or purchaser of the Bank's original
offering materials.
CHARGE-OFF
[.8]7. (a) Within 10 days from the effective date of this ORDER, the Bank
shall eliminate from its books, by charge-off or collection, all assets
or portions of assets classified "Loss" as of the Report of
Examination ("Report") dated November 19, 2001, that have not
been previously collected or charged-off.
(b) Within 10 days from the effective date of this ORDER, the Bank
shall eliminate from its books, by collection, charge-off, or other
proper entries, 50 percent of those assets classified "Doubtful"
in the Report that have not been previously collected or charged off.
(If an asset classified "Doubtful" is a loan or a lease, the Bank
may, in the alternative, increase its allowance for loan and lease
losses by an amount equal to 50 percent of the loan or lease classified
"Doubtful".)
(c) Additionally, while this ORDER remains in effect, the Bank shall,
within 30 days of the receipt of any official Report of Examination of
the Bank from the FDIC or the Alabama State Banking Department,
eliminate from its books, by collection, charge-off, or other proper
entries, the remaining balance of any assets classified "Loss"
and 50 percent of those classified "Doubtful" unless otherwise
approved in writing by the Supervisory Authorities. (If an asset
classified "Doubtful" is a loan or lease, the Bank may, in the
alternative, increase its allowance for loan and lease losses by an
amount equal to 50 percent of the loan or lease classified
"Doubtful.")
(d) By August 31, 2002, the Bank shall have reduced the assets
classified "Substandard" in the Report and those assets
classified "Doubtful" in the Report that have not previously been
charged off to not more than $20,000,000.
(e) By February 28, 2003, the Bank shall have reduced the assets
classified "Substandard" and those assets classified
"Doubtful" in the Report that have not previously been charged
off to not more than $15,000,000.
(f) By August 31, 2003, the Bank shall have reduced the assets
classified "Substandard"
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and those assets classified
"Doubtful" in the Report that have not been previously been
charged off to not more than $6,000,000.
(g) The requirements of Subparagraphs 7(a), 7(b), 7(d), 7(e), and 7(f)
of this ORDER are not to be construed as standards for future
operations and, in addition to the foregoing, the Bank shall eventually
reduce the total of all adversely classified assets. Reduction of these
assets through proceeds of other loans made by the Bank is not
considered collection for the purpose of this paragraph. As used in
Subparagraphs 7(d), 7(e), and 7(f) the word "reduce" means:
(i) to collect;
(ii) to charge-off; or
(iii) to sufficiently improve the quality of assets adversely
classified to warrant removing any adverse classification, as
determined by the Supervisory Authorities.
NO ADDITIONAL CREDIT
[.8]8. (a) Beginning with the effective date of this ORDER, the Bank shall
not extend, directly or indirectly, any additional credit to, or for
the benefit of, any borrower who has a loan or other extension of
credit from the Bank that has been classified, in whole or part,
"Loss" or "Doubtful" and is uncollected. The requirements
of this Paragraph shall not prohibit the Bank from renewing (after
collection in cash of interest due from the borrowers) any credit
already extended to any borrower.
[.9](b) Additionally, during the life of this ORDER, the Bank shall not
extend, directly or indirectly, any additional credit to, or for the
benefit of, any borrower who has a loan or other extension of credit
from the Bank that has been classified, in whole or in part,
"Substandard" and is uncollected.
(c) Paragraph 8(b) shall not apply if the Bank's failure to extend
further credit to a particular borrower would be detrimental to the
best interests of the Bank. Prior to the extension of any additional
credit pursuant to this Paragraph, either in the form of a renewal,
extension, or further advance of funds, such additional credit shall be
approved by a majority of the Board or a designated committee thereof,
who shall certify in writing as follows:
(i) why the failure of the bank to extend such credit would be
detrimental to the best interests of the Bank;
(ii) that the Bank's position would be improved thereby; and
(iii) how the Bank's position would be improved.
The signed certification shall be made a part of the minutes of
the Board or its designated committee and a copy of the signed
certification shall be retained in the borrower's credit file.
PLANS FOR REDUCING/IMPROVING CLASSIFIED ASSETS
[.10]9. Within 90 days of the effective date of this ORDER, the Bank shall
submit to the Supervisory Authorities specific plans and proposals to
effect the reduction and/or improvement of any lines of credit which
are adversely classified by the Supervisory Authorities as of the date
of the Report and which aggregate $500,000 or more as of that date.
Such plans shall thereafter be monitored and progress reports thereon
resubmitted by the Bank at 90-day intervals concurrently with the other
reporting requirements set forth in Paragraph 19 of this ORDER.
DOCUMENTATION EXCEPTIONS
[.11]10. Within 60 days from the effective date of this ORDER, the Bank
shall implement procedures to correct documentation exceptions on loans
listed in the schedule of Assets with Credit Data or Collateral
Documentation Exceptions on pages 85 through 88 of the Report and to
prevent future credit data and/or collateral documentation exceptions.
Such procedures and their implementation shall be acceptable to the
Supervisory Authorities as determined at subsequent examinations and/or
visitations.
CASH DIVIDENDS
[.12]11. The Bank shall not pay cash dividends without the prior written
consent of the Supervisory Authorities.
BUDGET
[.13]12. Within 60 days from the effective date of this ORDER, the Bank
shall formulate and fully implement a written plan to improve earnings.
This plan shall be forwarded to the Supervisory Authorities for review
and comment and shall address, at a minimum, the following:
(a) goals and strategies for improving and sustaining the earnings
of the Bank, including:
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(i) an identification of the major areas in, and means by which,
the Board will seek to improve the Bank's operating performance;
(ii) realistic and comprehensive budgets;
(iii) a budget review process to monitor the income and expenses of the
Bank to compare the actual figures with budgetary projection; and
(iv) a description of the operating assumptions that form the basis
for, and adequately support, major projected income and expense
components.
(b) coordination of the Bank's loan, investment, and operating
policies, and budget and profit planning, with the funds management
policy.
(c) Following the end of each calendar quarter, the Board shall
evaluate the Bank's actual performance in relation to the plan
required by this paragraph and shall record the results of the
evaluation, and any actions taken by the Bank, in the minutes of the
Board meeting at which such an evaluation is undertaken.
LENDING POLICIES
[.14]13. Within 60 days from the effective date of this ORDER, the Bank
shall revise, adopt, and implement a written lending and collection
policy to provide effective guidance and control over the Bank's
lending function, which policy shall include, at a minimum, revisions
to address all items of criticism enumerated on pages 30 through 31 of
the Report as well as specific guidelines for placing loans on a non
accrual basis. Such policy and its implementation shall be in a form
and manner acceptable to the Supervisory Authorities as determined at
subsequent examinations and/or visitations.
INTEREST RATE RISK
[.15]14. Within 60 days from the effective date of this ORDER, the Board
will formulate and adopt a policy for managing interest rate risk in a
manner that is appropriate to the size of the Bank and the complexity
of its assets. The policy will identify the means by which the interest
rate risk position will be monitored and will establish risk
parameters. In addition, the policy will provide for periodic reporting
to management and the Board regarding interest rate risk with adequate
information provided to assess the level of risk. The policy will be
forwarded to the Supervisory Authorities for review and comments. The
Bank will revise and adopt appropriate policies that are consistent
with the comments and recommendations detailed in the Report.
ALLOWANCE FOR LOAN AND LEASE LOSSES
[.16]15. Within 30 days from the effective date of this ORDER, the Board
shall review the adequacy of the allowance for loan and lease losses
("Allowance") and establish a comprehensive policy for
determining the adequacy of the Allowance. For the purpose of this
determination, the adequacy of the Allowance shall be determined after
the charge-off of all loans or other items classified "Loss". The
policy shall provide for a review of the Allowance at least once each
calendar quarter. Said review should be completed in order that the
findings of the Board with respect to the Allowance may be properly
reported in the quarterly Reports of Condition and Income. The review
should focus on the results of the Bank's internal loan review, loan
and lease loss experience, trends of delinquent and non-accrual loans,
an estimate of potential loss exposure of significant credits,
concentrations of credit, and present and prospective economic
conditions, and may include such other factors as the Board deems
relevant. A deficiency in the Allowance shall be remedied in the
calendar quarter it is discovered, prior to submitting the Report of
Condition and Income, by charge to current operating earnings. The
minutes of the Board meeting at which such review is undertaken shall
indicate the results of the review. The Bank's policy for determining
the adequacy of the Allowance and its implementation shall be
satisfactory to the Supervisory Authorities as determined at subsequent
examinations and/or visitations.
VIOLATIONS OF LAW
[.17]16. Within 30 days from the effective date of this ORDER, the Bank
shall eliminate and/or correct all violations of law which are more
fully set out on pages 33 through 37 of the Report. In addition, the
Bank shall take all necessary steps to ensure future compliance with
all applicable laws and regulations. However, where such violations
concern the lending limits contained in Code of Alabama
Section 5-5A-22 (1975), the loans will be reduced to the lending limits
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required by Alabama law within 10 days from the effective date of this
ORDER.
STRATEGIC PLAN
[.18]17. Within 60 days from the effective date of this ORDER, the Bank
shall prepare and submit to the Supervisory Authorities a written
business/strategic plan covering the overall operation of the Bank. The
plan shall be in a form and manner acceptable to the Supervisory
Authorities as determined at subsequent examinations and/or
visitations.
NOTICE TO SHAREHOLDERS
[.19]18. Following the effective date of this ORDER, the Bank shall send to
its shareholders or otherwise furnish a description of this ORDER in
conjunction with the Bank's next shareholder communication and also in
conjunction with its notice or proxy statement preceding the Bank's
next shareholder meeting. The description shall fully describe the
ORDER in all material respects. The description and any accompanying
communication, statement, or notice shall be sent to the FDIC,
Registration and Disclosure Section, 550 17th Street, N.W., Washington,
D.C. 20429, at least 15 days prior to dissemination to shareholders.
Any changes requested to be made by the FDIC shall be made prior to
dissemination of the description, communication, notice, or statement.
PROGRESS REPORTS
19. Within 30 days of the end of the first quarter following the
effective date of this ORDER, and within 30 days of the end of each
quarter thereafter, the Bank shall furnish written progress reports to
the Supervisory Authorities detailing the form and manner of any
actions taken to secure compliance with this ORDER and the results
thereof. Such reports shall include a copy of the Bank's Report of
Condition and the Bank's Report of Income. Such reports may be
discontinued when the corrections required by this ORDER have been
accomplished and the Supervisory Authorities have released the Bank in
writing from making further reports.
This ORDER shall become effective 10 days from the date of its
issuance.
The provisions of this ORDER shall remain effective and enforceable
except to the extent that, and until such time as, any provisions of
this ORDER shall have been modified, terminated, suspended, or set
aside by the Supervisory Authorities.
Pursuant to delegated authority.
Dated at Atlanta, Georgia, this 15th day of March, 2002.