FEDERAL
DEPOSIT INSURANCE CORPORATION

    WASHINGTON,
D.C.

    


    
      	 
      	 
      	 
      
	 
      	
              )

            	 
      
	
              In
      the Matter of

            	
              )

            	 
      
	 
      	
              )

            	 
      
	
              AMERICAN
      PATRIOT BANK

            	
              )

            	
              STIPULATION
      AND CONSENT

            
	
              GREENEVILLE,
      TENNESSEE

            	
              )

            	
              TO
      THE ISSUANCE OF AN ORDER

            
	 
      	
              )

            	
              TO
      CEASE AND DESIST

            
	 
      	
              )

            	 
      
	 
      	
              )

            	 
      
	 
      	
              )

            	
              FDIC-09-163b

            
	
              (INSURED STATE NONMEMBER
      BANK)

            	
              )

            	 
      
	 
      	
              )

            	 
      


    

    


    


    Subject
to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO
CEASE AND DESIST (“CONSENT AGREEMENT”) by the Federal Deposit Insurance
Corporation (“FDIC”), it is hereby stipulated and agreed by and between a
representative of the Legal Division of the FDIC and American Patriot Bank,
Greeneville, Tennessee (“Bank”), as follows:

     

    1.           The
Bank has been advised of its right to the issuance and service of a NOTICE OF
CHARGES AND OF HEARING detailing the unsafe or unsound banking practices and
violations of law and/or regulations alleged
to have been committed by the Bank and of its right to a hearing on the alleged
charges under section 8(b) of the Federal Deposit Insurance Act (“Act”), 12
U.S.C. § 1818(b), and the Bank has waived those rights.

     

    2.           The
Bank, 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 law
and/or regulations, hereby consents and agrees to the issuance of an ORDER TO
CEASE AND DESIST (“ORDER”) by the FDIC.  The Bank further stipulates
and agrees that such ORDER shall be deemed to be a final ORDER and that said
ORDER shall become effective immediately upon its issuance by the FDIC and shall
be fully enforceable by the FDIC pursuant to the provisions of section 8(i) of
the Act, 12 U.S.C. § 1818(i), subject only to the conditions set forth in
paragraph 3 of this CONSENT AGREEMENT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.           In
the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, it is
agreed that no action will be taken by the FDIC to enforce said ORDER in the
United States District Court, unless the Bank or any institution-affiliated
party has violated or is about to violate any provision of the
ORDER.

     

    4.           Solely
for the purpose of this proceeding, the Bank hereby waives:

     

    
      	
               
      

            	
              (a)

            	
              The
      issuance and service of a NOTICE OF CHARGES AND OF
  HEARING;

            
	 	 	 


    

    
      	
               
      

            	
              (b)

            	
              All
      defenses to the alleged charges in the NOTICE OF CHARGES AND OF
      HEARING;

            
	 	 	 


    

    
      	
               
      

            	
              (c)

            	
              A
      hearing for the purpose of taking evidence on such alleged
      charges;

            
	 	 	 


    

    
      	
               
      

            	
              (d)

            	
              The
      filing of PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF
  LAW;

            
	 	 	 


    

    
      	
               
      

            	
              (e)

            	
              A
      RECOMMENDED DECISION of an Administrative Law Judge;

            
	 	 	 


    

    
      	
               
      

            	
              (f)

            	
              The
      filing of exceptions and briefs with respect to such RECOMMENDED DECISION;
      and

            


    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (g)

            	
              Review
      of the Order by any Federal or State agency or
  court.

            


    

     

    Dated
this 29th day of May, 2009.

     

     

     

    
      
        
          	
                  Federal
      Deposit Insurance

                	
                	American
      Patriot Bank
	Corporation	 	Greeneville,
      Tennessee
	
                  
                    Legal
      Division

                  

                	 	 
	
                   

                	 	 	 
	BY:  	 /s/ Richard
      W. Ott	 	/s/
      William J. Smead
	 	 Richard
      W. Ott    	 	William
      J. Smead
	 	 Senior
      Attorney     	 	 
	 	 	 	/s/
      Mike G. Burns
	 	 	 	Mike
      G. Burns
	 	 	 	 
	 	 	 	/s/
      Wendy C. Warner
	 	 	 	Wendy
      C. Warner
	 	 	 	 
	 	 	 	/s/
      Roger A. Woolsey
	 	 	 	Roger
      A. Woolsey
	 	 	 	 
	 	 	 	 
	 	 	 	Comprising
      the Board of Directors of American Patriot Bank,
      Greeneville,Tennessee


        

      

    

     

    
      
        
        

      

      
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