Document:

Exhibit
10.1

UNITED STATES OF AMERICA

Before The

OFFICE OF
THRIFT SUPERVISION

	
  

  	
  )

  	
   

  	
   

  	
   

  
	
  In the Matter of

  	
  )

  	
  Order No.:

  	
  SF-07-004

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  	
   

  
	
  DOWNEY SAVINGS

  	
  )

  	
  Issuance Date: 

  	
  August 30, 2007

  	
   

  	
   

  
	
     AND LOAN ASSOCIATION, F.A.,

  	
  )

  	
   

  	
   

  	
   

  
	
  Newport Beach, California.

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  	
   

  
	
  OTS Docket No.: 06189

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  	
   

  
							

 

CONSENT
ORDER TO

CEASE AND DESIST FOR AFFIRMATIVE RELIEF

WHEREAS,
Downey Savings and Loan Association, F.A., Newport Beach, California, OTS Docket No. 06189 (Institution), has executed a Stipulation
and Consent to the Issuance of an Order to Cease and Desist for Affirmative
Relief (Stipulation); and

WHEREAS,
the Institution, by executing the Stipulation, has consented and agreed to the
issuance of this Consent Order to Cease and Desist for Affirmative Relief
(C&D Order) by the Office of Thrift Supervision (OTS), pursuant to Sections
8(b) of the Federal Deposit Insurance Act (FDIA), 12 U.S.C. § 1818(b); and

WHEREAS,
the Director of the OTS has delegated to the Regional Directors of the OTS the
authority to issue consent orders on behalf of the OTS pursuant to provisions
of Section 8 of the FDIA, 12 U.S.C. § 1818.

NOW,
THEREFORE, IT IS ORDERED THAT:

I.                                         ORDER TO
CEASE AND DESIST 

A.                                   The
Institution and its directors, officers, employees, and agents shall cease and
desist from any action (alone or with another or others) for or toward causing,
bringing about, participating in, counseling, or aiding and abetting any
violation of:

(1)                                  the
Currency and Foreign Transactions Reporting Act, as amended by the USA PATRIOT
Act and other laws (the Bank Secrecy Act or BSA), 31 U.S.C. §§ 5311 et  seq.,
and the related BSA regulations issued by the U. S. Department of the Treasury,
31 C.F.R. Part 103, and the OTS, 12 C.F.R. § 563.177 (collectively with the aforementioned
laws and regulations, the BSA Laws and Regulations); and

 (2)                               the OTS regulations
governing suspicious activity reports (SARs) set forth in 12 C.F.R. § 563.180
(the SAR Regulation).

II.                                     CORRECTIVE
PROVISIONS

A.                                    Anti-Money
Laundering/Bank Secrecy Act Compliance Program

The
Board shall strengthen the Institution’s written program for compliance with
the BSA Laws and Regulations, the SAR Regulation, and the guidance set forth in
the Federal Financial Institutions  Examination
Council’s (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual
(BSA Examination Manual).  The
Institution’s written program referenced in the previous sentence shall
hereinafter be referred to as the BSA Compliance Program.  The Board shall, at a minimum, take the following
actions:

(1)                                  Within
forty-five (45) days after the Effective Date of this C&D Order, the Board
shall retain a qualified independent outside third party (Consultant) with
knowledge of the BSA Laws and Regulations and the SAR Regulation and with experience
in compliance

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with the requirements
imposed by such laws and regulations to conduct a comprehensive review and
assessment (BSA Review) of the Institution’s BSA Compliance Program for
compliance with the BSA Laws and Regulations, the SAR Regulation, and the
guidance set forth in the BSA Examination Manual.  At least ten (10) days before the deadline
for retaining the Consultant and prior to signing a binding engagement
agreement with the Consultant, the Institution shall submit the Consultant’s
name and curriculum vitae to the OTS for its non-objection.  The BSA Review required by this Paragraph IIA
shall be completed and the Consultant shall deliver a final, written report
(BSA Report) to the OTS and the Board within ninety (90) days after the date of
the Institution’s engagement letter with the Consultant.

(2)                                  The
Board shall ensure that the engagement agreement with the Consultant for the
BSA review requires the preparation and submission of the BSA Report to the
Board and to the OTS and that the BSA Report:  (a) set forth the scope of the BSA Review; (b)
contain a detailed analysis and discussion of the BSA Compliance Program’s
adequacy and effectiveness, including the adequacy of resources available or
devoted to the BSA Compliance Program and training of personnel with BSA
responsibilities; (c) specifically identify and describe all weaknesses or
deficiencies in the BSA Compliance Program, including failure of the BSA
Compliance Program to comply with the BSA Laws and Regulations, SAR Regulation,
and the guidance set forth in the BSA Examination Manual; and (d) contain
specific recommendations regarding appropriate corrective and remedial actions
and steps to be taken to correct identified weaknesses or deficiencies.

(3)                                  The
Board shall review and discuss the BSA Report at the next regularly scheduled
board meeting following its completion.  Within
thirty (30) days from the date of

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that meeting or by its
next regularly scheduled Board meeting, if later, the Board shall amend and
revise its BSA Compliance Program and adopt such other corrective actions as
are necessary and appropriate to address all weaknesses and deficiencies
identified in the BSA Report.    The Board’s review,
discussions, consideration, and adoption of corrective actions shall be fully
documented and detailed in the Board meeting minutes.  The revised BSA Compliance Program shall
include implementation deadlines for each of its components, all of which shall
be implemented no later than sixty (60) days after the Board adopts the BSA
Compliance Program, provided that implementation of a manual process during
such time period shall be deemed to be sufficient hereunder until an automated
process is fully implemented.

(4)                                  The
revised BSA Compliance Program shall include:  (a) specific written methodologies for
assigning risk levels (Risk Assignment Methodology) to the Institution’s
customers and accounts; and (b) appropriate ongoing due diligence levels,
oversight and monitoring requirements, and recordkeeping and documentation
requirements based upon the risk level assigned to the customer or account in
accordance with the Institution’s Risk Assignment Methodology, for all
accounts, including enhanced due diligence levels and oversight, monitoring and
documentation requirements for accounts that present a heightened risk of
conduct of potentially unlawful activities or transactions (Higher Risk
Accounts).

(5)                                  The
revised BSA Compliance Program shall strengthen and improve the annual
independent testing of the Institution’s compliance with the BSA Laws and
Regulations and the SAR Regulation and shall ensure that the independent test
comprehensively reviews the Institution’s BSA risk-assessment.  The BSA Policy shall require the independent
test to be completed by the third calendar quarter of 2008 and then

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annually thereafter.  The Board shall ensure that the scope of the independent
test considers and incorporates, as appropriate for the size and complexity of
the Institution, the examination procedures set forth in the BSA Examination
Manual.

(6)                                  The
revised BSA Compliance Program  shall amend
the Institution’s customer identification policies and procedures (CIP Policy)
and ensure that they are adequate and effective to ensure the Institution’s
compliance with applicable laws, regulations, and regulatory guidance.  The CIP Policy shall have adequate and
effective due diligence procedures and customer profiles for customer groups
with heightened BSA and AML risk, as identified by the Institution, including,
non-U.S. resident accounts, commercial and business accounts, customers with
significant wire transfer activity, and customers generating multiple CTR
filings within any 12-month period (“higher risk customers”).  The CIP Policy shall comply with the
requirements in 31 C.F.R. § 103.121 and contain specific account opening
procedures and documentation requirements to ensure the Institution
appropriately identifies all account owners, including beneficial owners when
appropriate.  The BSA Compliance Program shall
require management to maintain documentation of the Institution’s compliance
with the CIP Policy, which documentation shall be in a format usable for third
party review.  With
respect to higher risk customers who became customers on or after
October 1, 2003 and are customers as of the date of this Order, it shall
be deemed to be sufficient hereunder for the Institution to collect required
customer information and add that information to an electronic database
maintained by the Institution at such times as the customer may enter an Institution
branch office or contact the Institution by telephone and in either case
perform an account-related transaction.

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The
BSA Compliance Program shall also require management to perform an annual
assessment of the adequacy and effectiveness of the CIP Policy for the
Institution and for each branch, including an assessment of the adequacy and
reliability of data and information obtained and maintained by the Institution
and each individual branch, and identify any deficiencies, weaknesses or
noncompliance with the CIP Policy or applicable laws, regulations and
regulatory guidance.  Management shall
incorporate the CIP Policy assessment in its ongoing branch compliance review
process, beginning in October 2007. 
Management shall complete its assessment within ninety (90) days after
the end of each calendar year, beginning with calendar year 2008, and shall
provide a copy of its assessment to the Board for review at the next regularly
scheduled board meeting following completion of the assessment.

(7)                                  The
revised BSA Compliance Program  shall include
specific policies and procedures to ensure the Institution’s accurate,
complete, and timely filing of SARs with appropriate regulatory agencies and
law enforcement authorities in compliance with applicable law and regulation,
including the SAR Regulation.  The
policies and procedures shall, at a minimum, include:  (a) establishing detailed policies,
procedures, and guidelines, including documentation and reporting requirements;
(b) providing a review process and reporting procedures that include the
involvement of the Institution’s BSA Officer (or a well-trained employee who
reports to, and is directly supervised by, the BSA Officer) for any
transactions identified as unusual or suspicious; and (c) establishing
specific procedures and requirements to ensure that all branch offices and
personnel appropriately identify transactions that may require a SAR filing and
fully comply with the review process and reporting guidelines for such
transactions.

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(8)                                  The
revised BSA Compliance Program shall include an effective AML/Suspicious
Activity Monitoring program commensurate with the Institution’s overall BSA/AML
risk profile.  The AML/Suspicious
Activity Monitoring program shall, at a minimum, include policies and
procedures that establish:  (a) AML
detection procedures for all monetary activities including wires, ACH, ATM,
internet banking, and lending activities; (b)  policies and procedures for
maintaining records in a usable format for third-party review; (c) procedures for
identification and monitoring of non-bank financial institutions, high cash
activity accounts, and higher risk accounts identified through the Institution’s
Risk Assignment Methodology; (d) policies and procedures for periodic account
activity monitoring; and (e) policies and procedures for internal
investigations, monitoring and reporting of suspicious activities.

(9)                                  The
Board shall ensure that management fully and timely implements the revised BSA
Compliance Program and shall ensure that the Institution, its management, and its
staff adhere to the revised BSA Compliance Program.

(10)                            The
Board shall conduct a comprehensive review of the Institution’s BSA Compliance
Program not less than annually to assess its adequacy and effectiveness at
ensuring the Institution’s compliance with applicable BSA Laws and Regulations,
SAR Regulation, and the guidance contained in the BSA Examination Manual in
consideration of the Institution’s operations, activities, size, and
complexity.  The first comprehensive
review shall be completed no later than one (1) year after the Board adopts the
revised BSA Compliance Program.  The
Board may retain an experienced and knowledgeable consultant to assist in such
review.  The Board shall promptly adopt
and implement such revisions and amendments as are necessary to address any
weaknesses or deficiencies and ensure the

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adequacy and effectiveness of the BSA Compliance
Program and the Institution’s continued compliance with applicable laws and
regulations.  The Board shall direct management
to fully implement and ensure management and staff adheres to any corrective
actions or changes made by the Board. 
The Board shall institute procedures and steps to ensure management’s
full and timely completion of all Board-adopted corrective actions.

(11)                            Within
ninety (90) days after the Effective Date of this C&D Order, the Board
shall ensure that management completes a review of the Institution’s customers
to accurately identify and appropriately categorize all higher-risk accounts
under the Institution’s Risk Assignment Methodology.  Management shall ensure that all required
documentation has  been provided and that
appropriate action is taken to correct any deficiencies within forty-five (45)
days from the time any deficiency is discovered.  Thereafter, management shall ensure that such
accounts are subjected to the appropriate monitoring and oversight monitoring
requirements established by the Board. With respect to higher risk customers
who became customers on or after October 1, 2003 and are customers as of
the date of this Order, it shall be deemed to be sufficient hereunder for the
Institution to collect required customer information and add that information
to an electronic database maintained by the Institution at such times as the
customer may enter an Institution branch office or contact the Institution by
telephone and in either case perform an account-related transaction.

B.                                    Suspicious
Activity Reports

The
Board shall ensure that management conducts a review of the Institution’s higher
risk account transactions consistent with the requirements adopted by the Board
pursuant to this C&D Order.  The
review shall cover the twelve (12)-month period preceding the issuance date of
this C&D Order and shall identify all transactions and activity for which
the

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filing of a SAR is
required.  The Board shall direct Management
to immediately prepare and file any SAR with the appropriate regulatory
agencies and law enforcement authorities on any transactions or activities for
which a SAR was required but not filed. 
Management shall prepare a report detailing its review including, at a
minimum, a list of all transactions and activity for which the filing of a SAR
was required, the relevant date(s) of the transactions or activity, a brief
description of the facts and circumstances requiring a SAR to be filed, and the
date that each SAR was actually filed with appropriate regulatory and law
enforcement authorities.  Management
shall complete its review and report within forty-five (45) days of the Board’s
adoption of the Revised BSA Compliance Program. 
A copy of management’s report and the Board meeting minutes reflecting
the Board’s review of the report shall be provided to the Regional Director
within ten (10) days from the date the Board approves the minutes of its
meeting.

C.                                    BSA
Training

Within
thirty (30)  days after revision of the BSA
Compliance Program as required by Section II(A) of this C&D Order, management
shall develop, and the Board shall review and adopt, and thereafter ensure that
the Institution adheres to, a comprehensive training program (BSA Training
Program) for the Board and for all appropriate audit, operational, and
supervisory personnel to ensure awareness of their responsibility for:  (i) compliance with the requirements of the BSA
Laws and Regulations and the SAR Regulation; (ii) the BSA and AML risks
inherent to their departments and products; and (iii) any changes to the
Institution’s BSA Compliance Program required by this C&D Order, the BSA
Review, the annual BSA Compliance Program review, annual independent tests of
the Institution’s BSA Compliance Program, OTS examinations, and amendments to
the BSA Laws and

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Regulations and
the SAR Regulation.  The BSA Training
Program shall include requirements for mandatory attendance, the frequency of
training, specialized training procedures for certain departments of the
Institution based upon the particular operations and risk presented by such departments,
and procedures and timing for updating the BSA Training Program and materials
based upon violations, deficiencies, and weaknesses identified.  The Institution shall maintain documentation
of attendance at all BSA training required under this paragraph.

D.                                    Internal
Audit and Controls

Within
thirty (30) days after revision of the BSA Compliance Program as required by
Section II(A) of this C&D Order, or by the time of its next regular
meeting, if later, the Board shall review and amend the Institution’s written
policies and procedures regarding internal audit and controls to strengthen and
improve the Board’s review and oversight of audit results and controls
(Internal Audit and Control  Policy).
The Internal Audit and Control Policy shall provide for the maintenance of an
internal audit function independent of the Institution’s compliance function
and the BSA Officer and his or her supporting staff, that will, on at least an
annual basis, comprehensively review and assess the adequacy and effectiveness
of the Institution’s BSA compliance program, consistent with the requirements
of the BSA Laws and Regulations (BSA Audit).  If the Board obtains an independent
consultant to perform a comprehensive review under Section IIA(10) and conducts
independent testing each year in accordance with Section IIA(5), this annual
requirement shall not apply.

The
BSA Audit shall include adequate levels of transactional testing to corroborate
audit findings, procedures for documenting completion of appropriate corrective
actions by

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management, and
reassessment of any department, operation, branch, or area identified as having
less than adequate BSA compliance within six months following the completion of
each BSA Audit.  Within thirty (30) days
after the completion of the BSA Audit or by the time of its next regular
meeting, if later, the Board shall review the results of each BSA Audit, adopt
appropriate corrective actions and timeframes to address identified weaknesses,
require management to fully implement the corrective actions adopted by the
Board, and ensure the timely completion of all required corrective
actions.  The Board’s review,
discussions, and required corrective actions shall be fully detailed in
appropriate Board meeting minutes.  A
copy of the BSA Audit procedures, scope, and findings, and the relevant meeting
minutes detailing the Board’s review, shall be provided to the Regional
Director within ten (10) days after the Board’s review of the BSA Audit
findings and the approval of its meeting minutes.

III.                                 COMPLIANCE WITH
ORDER

A.                                   The
policies, procedures, corrective actions, plans, programs, reviews, and systems
required by this C&D Order to address the issues raised by this C&D
Order (collectively, Policies and Procedures) shall conform to all applicable
statutes, regulations, and OTS policy and guidance.  The Board shall submit copies of all Policies
and Procedures required by this C&D Order to the Regional Director within
the timeframes specified or, in the event a timeframe is not specified, within
thirty (30) days after adoption by the Board and its approval of the meeting
minutes. The Board shall revise such Policies and Procedures as required by the
Regional Director within thirty (30) days of receipt of written comments from
the Regional Director  or at its next
regular meeting, if later.  The Policies
and Procedures, as modified consistent with the written comments of the
Regional Director, shall be

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incorporated into
this C&D Order and any deviation from such Policies and Procedures shall be
a violation of this C&D Order.

B.                                     The
Board shall require management to fully and timely implement the corrective
actions and amendments and revisions to Institution policies and procedures
adopted by the Board in accordance with the terms and requirements of each of
the provisions of this C&D Order. 
The Board shall institute such procedures and steps, including
documentation requirements, as are necessary to ensure management’s full and
timely completion of all Board adopted corrective actions and implementation
and adherence to amendments or revisions to Institution policies by management
and staff.  Management shall prepare and
submit to the Board each month a report regarding the completion status of all
corrective actions adopted by the Board.

IV.                                DEFINITIONS

All
technical words or terms used in this C&D Order for which meanings are not
specified or otherwise provided by the provisions of this C&D Order shall,
insofar as applicable, have meanings as defined in Chapter V of Title 12 of the
Code of Federal Regulations, the HOLA, the BSA, the FDIA, OTS Memoranda, or
other published OTS guidance.  Any such
technical words or terms used in this C&D Order and undefined in said Code
of Federal Regulations, the HOLA, the FDIA, OTS Memoranda, or other published
regulatory guidance shall have meanings that are in accordance with the best
custom and usage in the savings and loan industry.

V.                                    SUCCESSOR
STATUTES, REGULATIONS, GUIDANCE, AMENDMENTS

Reference
in this C&D Order to provisions of statutes, regulations, OTS Memoranda,
and other published regulatory guidance shall be deemed to include references
to all

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amendments to such
provisions as have been made as of the Effective Date and references to
successor provisions as they become applicable.

VI.                                NO
VIOLATIONS AUTHORIZED; OTS NOT RESTRICTED

Nothing
in this C&D Order or the Stipulation shall be construed as:  (a) allowing the Institution to violate any
law, rule, regulation, or policy statement to which it is subject, or (b)
restricting or estopping the OTS from taking any action(s) that it believes are
appropriate in fulfilling the responsibilities placed upon it by law including,
without limitation, any type of supervisory, enforcement or other action that
the OTS determines to be appropriate, arising                 out of matters described in Reports of
Examination, or based on other matters.

VII.                            TIME
LIMITS; EFFECT OF HEADINGS; SEPARABILITY CLAUSE; STIPULATION INCORPORATED

A.                                   Time
limitations for compliance with the terms of this C&D Order run from the
Effective Date, unless otherwise noted.

B.                                     The
section and paragraph headings herein are for convenience only and shall not affect
the construction hereof.

C.                                     In
case any provision in this C&D Order is ruled to be invalid, illegal or
unenforceable by the decision of any court of competent jurisdiction, the
validity, legality and enforceability of the remaining provisions hereof shall
not in any way be affected or impaired thereby, unless the Regional Director in
his or her sole discretion determines otherwise.

D.                                    The
Stipulation is made a part hereof and is incorporated herein by this reference.

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VIII.                        EFFECTIVE
DATE; DURATION

This
C&D Order is and shall become effective on the date it is issued, i.e., the Effective Date as shown
on the first page hereof.  This C&D
Order (including the related Stipulation) shall remain in effect until
terminated, modified or suspended, in writing by the OTS, acting through its
Director, Regional Director or other authorized representative.

	
   

  	
  OFFICE OF THRIFT SUPERVISION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael E.
  Finn

  	
   

  
	
   

  	
   

  	
  Michael E. Finn

  
	
   

  	
   

  	
  Regional
  Director

  
	
   

  	
   

  	
  West Region

  

 

 14Exhibit 10.2

 

UNITED STATES OF AMERICA

Before
The

OFFICE OF
THRIFT SUPERVISION

	
  

  	
  )

  	
   

  	
   

  	
   

  
	
  In the Matter of

  	
  )

  	
  Order No.:

  	
  SF-07-004

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  	
   

  
	
  DOWNEY SAVINGS

  	
  )

  	
  Issuance Date: 

  	
  August 30, 2007

  	
   

  	
   

  
	
     AND LOAN ASSOCIATION, F.A.,

  	
  )

  	
   

  	
   

  	
   

  
	
  Newport Beach, California.

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  	
   

  
	
  OTS Docket No.: 06189

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  	
   

  
							

 

STIPULATION
AND CONSENT TO ISSUANCE OF AN

ORDER
TO CEASE AND DESIST FOR AFFIRMATIVE RELIEF

WHEREAS,
the Office of Thrift Supervision (OTS), based upon information derived from the
exercise of its regulatory responsibilities, is of the opinion that grounds
exist to initiate an administrative cease and desist proceeding for affirmative
relief against Downey Savings and Loan Association, F.A., Newport Beach,
California, OTS Docket No. 06189 (Institution), pursuant to Section 8(b) of the
Federal Deposit Insurance Act (FDIA), 12 U.S.C. § 1818(b); and

WHEREAS, the Institution desires
to cooperate with the OTS and to avoid the time and expense of such
administrative proceeding; and

WHEREAS,
the Institution has taken corrective actions to address the deficiencies found
by the OTS, some of which the Institution asserts have been completed, but some
of which remain in progress, and the Institution wishes to demonstrate its
commitment to complete all necessary actions; and

WHEREAS,
the Institution enters into this Stipulation and Consent to the Issuance of an
Order to Cease and Desist for Affirmative Relief (Stipulation):  (i) without any adjudication on the merits;
(ii) without admitting or denying that grounds exist to initiate an
administrative cease and desist proceedings; (iii) without admitting or denying
the Findings of Fact, except as to jurisdiction (¶1 below), which jurisdiction
is admitted; and (iv) solely for the purpose of resolving this matter in
accordance with Rule 408 of the Federal Rules of Evidence.

NOW,
THEREFORE, the Institution hereby stipulates and agrees as
follows:

1.                          Jurisdiction.

(a)                      The
Institution is a “savings association” within the meaning of Section 3(b) of
the FDIA, 12 U.S.C. § 1813(b), and Section 2(4) of the Home Owners’
Loan Act (HOLA), 12 U.S.C. § 1462(4). 
Accordingly, the Institution is an “insured depository institution” as
that term is defined in Section 3(c) of the FDIA, 12 U.S.C.
§ 1813(c).

(b)                     Pursuant to
Section 3(q) of the FDIA, 12 U.S.C. § 1813(q), the Director of the OTS is the “appropriate
Federal banking agency” with jurisdiction to maintain an administrative cease
and desist proceeding against such a savings association.  Therefore, the Institution is subject to the
jurisdiction of the OTS to initiate and maintain a cease and desist proceeding
against it pursuant to Section 8(b) of the FDIA, 12 U.S.C. § 1818(b).  The Director of the OTS has delegated to the
Regional Director of the West Region of the OTS (Regional Director) the
authority to issue cease and desist orders where the savings association has
consented to the issuance of the orders.

2.                          OTS
Findings of Fact.   The OTS has
determined that the Institution has failed to comply fully with the
requirements of the Currency and Foreign Transactions Reporting

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Act, as amended by the USA PATRIOT Act and other laws,
31 U.S.C. § 5311 et seq. (the Bank Secrecy Act or BSA); the related BSA
regulations issued by the U. S. Department of the Treasury, 31 C.F.R. Part 103,
and the OTS, 12 C.F.R. § 563.177; and the OTS regulations governing suspicious
activity reports (SAR) and other reports and statements set forth in 12 C.F.R.
§ 563.180.

3.                          Consent.  The Institution consents to the issuance by
the OTS of the accompanying Consent Order to Cease and Desist for Affirmative
Relief (C&D Order).  The Institution
further agrees to comply with the terms of the C&D Order upon issuance and
stipulates that the C&D Order complies with all requirements of law.

4.                          Finality.  The C&D Order is issued under the
provisions of Section 8(b) of the FDIA, 12 U.S.C. § 1818(b).  Upon its issuance by the Regional Director,
the C&D Order shall be a final order, effective and fully enforceable by
the OTS under the provisions of Section 8(i) of the FDIA, 12 U.S.C.
§ 1818(i).

5.                          Waivers.  The Institution waives the following:

(a)                      the right to
be served with any written notice of the OTS’s charges against it as provided
by Section 8(b) of the FDIA, 12 U.S.C. § 1818(b);

(b)                     the right to
an administrative hearing of the OTS’s charges against it as provided by
Section 8(b) of the FDIA, 12 U.S.C. § 1818(b);

(c)                      the right to
seek judicial review of the C&D Order including, without limitation, any
such right provided by Section 8(h) of the FDIA, 12 U.S.C. § 1818(h), or
otherwise to challenge the validity of the C&D Order;

(d)                     any and all
claims against the OTS, including its employees and agents, and any other
governmental entity for the award of fees, costs, or expenses related to this
OTS

 3
 

enforcement matter, the
C&D Order, or both,  whether
arising under common law, the Equal Access to Justice Act, 5 U.S.C. § 504, or
28 U.S.C. § 2412; and

(e)                      the right to
assert this proceeding, its consent to issuance of the C&D Order, the
issuance of the C&D Order, or any one or more of them, as the basis for a
claim of double jeopardy in any pending or future proceeding brought by the
United States Department of Justice or any other governmental entity.

6.                          Other Governmental Actions
Not Affected.  The Institution
acknowledges and agrees that its consent to the issuance of the accompanying
C&D Order is solely for the purpose of resolving certain potential OTS
administrative enforcement charges as provided above, and does not otherwise
release, discharge, compromise, settle, dismiss, resolve, or in any way affect
any actions, charges against, liability, or other administrative, civil, or
criminal proceeding that arise pursuant to this action or otherwise, and that
may be or have been brought by another governmental entity.

7.                          Miscellaneous.

(a)                      The laws of
the United States of America shall govern the construction and validity of this
Stipulation and the C&D Order.

(b)                     If any
provision of this Stipulation and the C&D Order is ruled to be invalid,
illegal, or unenforceable by the decision of any Court of competent
jurisdiction, the validity, legality, and enforceability of the remaining
provisions hereof shall not in any way be affected or impaired thereby, unless
the Regional Director in his or her sole discretion determines otherwise.

(c)                      The
terms and provisions of this C&D Order shall be binding upon, and inure to
the benefit of, the parties hereto and their successors in interest.  Nothing in this

 4
 

Stipulation or the C&D Order, express or implied,
shall give to any person or entity, other than the parties hereto, the Federal
Deposit Insurance Corporation, and their successors hereunder, any benefit or
any legal or equitable right, remedy or claim under this Stipulation or the
C&D Order.

(d)                     The section
and paragraph headings in this Stipulation and the C&D Order are for
convenience only, and such headings shall not affect the interpretation of this
Stipulation or the C&D Order.

(e)                      The terms of
this Stipulation and the C&D Order represent the final agreement of the
parties with respect to the subject matters hereof and constitute the sole
agreement of the parties with respect to such subject matters.

(f)                        This
Stipulation and the C&D Order shall remain in effect until terminated,
modified, or suspended in writing by the OTS, acting through its Director, Senior
Deputy Director, Regional Director, or other authorized representative.

8.                          Signature
of Directors.

Each
Director signing this Stipulation attests that he or she voted in favor of a
resolution authorizing the execution of the Stipulation.

//

//

//

//

//

 5
 

WHEREFORE,
The Institution, by a majority of its directors, executes this Stipulation and
Consent to the Issuance of an Order to Cease and Desist for Affirmative Relief
intending to be legally bound hereby.

	
  Downey Savings and Loan Association, F.A.

  	
   

  	
  Office of Thrift Supervision

  
	
  Newport Beach,
  California

  	
   

  	
  West Region

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted by a
  majority of its directors:

  	
   

  	
  By:

  	
  /s/ Michael
  E. Finn

  	
   

  
	
   

  	
   

  	
   

  	
  Michael E. Finn

  
	
  By:

  	
   

  	
   

  	
  Regional
  Director, West

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Maurice
  L. McAlister

  	
   

  	
   

  	
  Dated: 

  	
  August 30, 2007

  	
   

  
	
  Director Maurice
  L. McAlister

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Cheryl
  E. Olson

  	
   

  	
   

  	
   

  
	
  Director Cheryl
  E. Olson

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Michael
  B. Abrahams

  	
   

  	
   

  	
   

  
	
  Director Michael
  B. Abrahams

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Michael
  D. Bozarth

  	
   

  	
   

  	
   

  
	
  Director Michael
  D. Bozarth

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Gary W.
  Brummett

  	
   

  	
   

  	
   

  
	
  Director Gary W.
  Brummett

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Gerald
  E. Finnell

  	
   

  	
   

  	
   

  
	
  Director Gerald
  E. Finnell

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ James
  H. Hunter

  	
   

  	
   

  	
   

  
	
  Director James
  H. Hunter

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Brent
  McQuarrie

  	
   

  	
   

  	
   

  
	
  Director Brent
  McQuarrie

  	
   

  	
   

  	
   

  
							

 

 6
 

 

	
  /s/ Daniel D. Rosenthal

  	
   

  	
   

  	
   

  
	
  Director Daniel
  D. Rosenthal

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Lester
  C. Smull

  	
   

  	
   

  	
   

  
	
  Director Lester
  C. Smull

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Jane
  Wolfe

  	
   

  	
   

  	
   

  
	
  Director Jane
  Wolfe

  	
   

  	
   

  	
   

  

 

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]