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[¶16,338] Docket No. FDIC-02-026b (6-13-03).
In the Matter of
HEARTLAND COMMUNITY BANK
FRANKLIN, INDIANA
(Insured State Nonmember Bank)
MODIFICATION OF ORDER TO CEASE AND DESIST
FDIC-02-026b
(This order was modified by order of the FDIC dated
3-29-04; see ¶16,376.)
On May 1, 2002, the Federal Deposit Insurance Corporation
("FDIC") and the Department of Financial Institutions for the
State of Indiana ("DFI") issued an ORDER TO CEASE AND DESIST
("ORDER") against Heartland Community Bank, Franklin, Indiana
("Bank"), that became effective on May 11, 2002, and remains in
full force and effect. Subsequently, on April 21, 2003, the Bank,
through its board of directors, entered into a STIPULATION AND CONSENT
TO THE ISSUANCE OF A MODIFICATION OF ORDER TO CEASE AND DESIST
("CONSENT AGREEMENT") wherein the Bank consented to the issuance
of a MODIFICATION OF ORDER TO CEASE AND DESIST ("MODIFICATION
ORDER").
The FDIC and DFI considered the matter and determined that there
was reason to believe that sufficient cause existed to modify the
ORDER issued on May 1, 2002. The FDIC and DFI, therefore, accepted the
CONSENT AGREEMENT and issued the following:
MODIFICATION OF ORDER TO CEASE AND DESIST
The ORDER is modified so that paragraph 10(a) is deleted and
replaced with the following paragraph 10(a):
(a) Effective immediately, concentrations as a percentage of the
Bank's Tier 1 capital shall be limited to no more than 125% for the
total of Acquisition, Development and Construction loans, 225% for all
Commercial Real Estate loans, and 100% for all High Loan-to-Value
Loans.
The provisions of this MODIFICATION ORDER shall be binding upon
the Bank, its institution-affiliated parties, and any successors and
assigns thereof.
Except as modified herein, the provisions of the ORDER issued against
the Bank on May 1, 2002, and which became effective
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on May 11, 2002,
shall remain in full force and effect.
The provisions of this MODIFICATION ORDER shall remain effective and
enforceable except to the extent that, and until such time as, any
provisions shall have been modified further, terminated, suspended or
set aside by the FDIC and DFI.
Pursuant to delegated authority.
Dated this 13th day of June, 2003.
