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[¶12,012] In the Matter of Alliance Bank, Cape Girardeau, Missouri, Docket No.
02-151k (1-22-03).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $4,500.
In the Matter of
ALLIANCE BANK
CAPE GIRARDEAU, MISSOURI
(Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
FDIC-02-151k
Alliance Bank, Cape Girardeau, Missouri ("Bank") has been
advised that a penalty may be assessed under section 102 of 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 only after receipt of a NOTICE OF ASSESSMENT OF CIVIL
MONEY PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY,
AND NOTICE OF HEARING ("NOTICE") issued by the Federal Deposit
Insurance Corporation ("FDIC") and an opportunity for a hearing
on the record on the charges pursuant to 42 U.S.C. §4012a(f)(4), 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 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 $4,500 for
violations of section 102 of the Flood Act, 42 U.S.C. §4012a, and
Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339, cited
at the FDIC's April 10, 2002 examination, in that it has 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 for the
term of the loan or that the collateral be covered by sufficient flood
insurance for the term of the loan as required by 12 C.F.R. §339.3.
In addition, it has 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 furnishing the notice required by 12 C.F.R.
§339.9. 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 $4,500 is
appropriate to be assessed against the Bank, pursuant to section 102 of
the Flood Act, 42 U.S.C. §4012a, and Part 339 of the FDIC Rules and
Regulations, 12 C.F.R. Part 339.
ORDER TO PAY
IT IS HEREBY ORDERED that Alliance Bank, Cape Girardeau, Missouri,
be, and hereby is, assessed a civil money penalty of $4,500 pursuant to
section 102 of the Flood
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Act, 42 U.S.C. §4012a, and Part 339 of the
FDIC Rules and Regulations, 12 C.F.R. Part 339, the receipt of which is
acknowledged.
This ORDER TO PAY shall be effective upon its issuance.
Pursuant to delegated authority.
Dated at Washington, D.C., this 22nd day of January, 2003.
