{{6-30-04 p.C-6030}
[¶12,172] In the Matter of Commercial Bank & Trust Company, Monticello, Arkansas,
Docket No. 03-184k (4-1-04).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $3,350.
In the Matter of
COMMERCIAL BANK & TRUST COMPANY
MONTICELLO, ARKANSAS
(Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
FDIC-03-184k
COMMERCIAL BANK & TRUST COMPANY, MONTICELLO, ARKANSAS
("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), may be issued 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. §4012a, 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 THE ISSUANCE OF AN ORDER TO PAY ("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 $3,350.00 related to its failure to secure or maintain
flood insurance on 14 loans secured by property located in special
flood hazard areas; by failing to renew flood insurance on one loan
secured by property located in special flood hazard areas; by failing
to secure adequate flood insurance on one loan secured by property
located in a special flood hazard area; by failing to provide timely
notification to seven borrowers that the properties securing their
loans were located in special flood hazard areas and that flood
disaster relief assistance was available to them; and by failing to
maintain records of four borrowers' receipt of the notice informing
them that the properties securing their loans were located in special
flood hazard areas and that flood disaster relief assistance was
available to them.
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 $3,350.00 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.
Part 339.
The FDIC therefore accepts the Consent Agreement and issues the
following:
ORDER TO PAY
IT IS HEREBY ORDERED that COMMERCIAL BANK & TRUST COMPANY,
MONTICELLO, ARKANSAS be, and hereby is, assessed a civil money penalty
of $3,350.00 pursuant to the Flood 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 issuance.
Pursuant to delegated authority.
Dated at Washington, D.C., this 1st day of April, 2004.