Document:

exv10w3

Exhibit 10.3

FEDERAL DEPOSIT INSURANCE CORPORATION

WASHINGTON, D.C.

	 	 	 	 	 	 	 	 	 
	 	 	 	)	 	 	 	 	 
	In the Matter of
	 	 	)	 	 	STIPULATION AND CONSENT	 	 
	 	 	 	)	 	 	TO THE ISSUANCE OF AN	 	 
	 	 	 	)	 	 	ORDER TO CEASE AND DESIST,	 	 
	ADVANTA BANK CORP.
	 	 	)	 	 	ORDER FOR RESTITUTION,	 	 
	DRAPER, UTAH
	 	 	)	 	 	and	 	 
	 	 	 	)	 	 	ORDER TO PAY	 	 
	(INSURED STATE NONMEMBER BANK)
	 	 	)	 	 	 	 	 
	 	 	 	)	 	 	FDIC-08-259b	 	 
	 	 	 	)	 	 	FDIC-08-403k	 	 
	 	 	 	)	 	 	 	 	 

     Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE
AND DESIST AND ORDER FOR RESTITUTION (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 Advanta Bank Corp., Draper, Utah (Respondent) as follows:

     1. The Respondent has been advised of its right to receive a Notice of Charges for an Order to
Cease and Desist and for Restitution; Notice of Assessment of Civil Money Penalties; Findings of
Fact and Conclusions of Law; Order to Pay; and Notice of Hearing (collectively, NOTICE) detailing
the violations of law and/or unsafe or unsound banking practices alleged to have been committed by
the Respondent for which an Order to Cease and Desist, Order for Restitution, and

 

 

Order to Pay (ORDER) may issue against the Respondent pursuant to sections 8(b) and 8(i)(2)of
the Federal Deposit Insurance Act (Act), 12 U.S.C. §§ 1818(b) and 1818(i)(2).

     2. The Respondent has been further advised of its right to a hearing on the charges under
sections 8(b)and 8(i)(2) of the Act, 12 U.S.C. §§ 1818(b) and 1818(i)(2), and the FDIC Rules of
Practice and Procedure, 12 C.F.R. Part 308.

     3. The Respondent is represented by counsel.

     4. The Respondent admits that the FDIC is the appropriate Federal banking agency to maintain
this enforcement action pursuant to section 3(q)(3) of the Act, 12 U.S.C. § 1813(q)(3), and that
the FDIC has jurisdiction over it and the subject matter of this proceeding.

     5. The FDIC has reason to believe that the Respondent engaged in unsafe and unsound banking
practices and violations of law in connection with the marketing of the Cash Back Reward feature of
Respondent’s credit card products and acts or practices related to the Respondent’s repricing of
credit card accounts. Specifically, the FDIC has reason to believe the Respondent engaged in
violations of section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1) (Section 5) and
the adverse action notification requirements of the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691
et seq. (“ECOA”), set forth at 15 U.S.C. § 1691(d), and Regulation B of the

2

 

Board of Governors of the Federal Reserve System, 12 C.F.R. Part 202 et seq. (“Regulation B”),
set forth at 12 C.F.R. § 202.9 (collectively “Adverse Action Notification Requirements”).

     6. In the interest of compromise and settlement, the Respondent, solely for the purpose of
this proceeding pursuant to sections 8(b)and 8(i)(2) of the Act, 12 U.S.C. §§ 1818(b) and
1818(i)(2), and without admitting or denying any of the unsafe or unsound banking practices or
violations of law or regulation as set forth in paragraph 5 of this CONSENT AGREEMENT, hereby
consents and agrees to the issuance of the ORDER by the FDIC, and further consents and agrees to
pay a civil money penalty in the amount of $150,000 to the Treasury of the United States pursuant
to the provisions of section 8(i)(2)of the Act, 12 U.S.C. § 1818(i)(2), and to pay restitution to
certain customers as set forth in the Order pursuant to the provisions of section 8(b)(6) of the
Act, 12 U.S.C § 1818(b)(6).

     7. The Respondent further agrees to pay the civil money penalty assessed by delivering to the
FDIC a certified check payable to the Treasury of the United States in the amount of $150,000
within five (5) days of the execution of the CONSENT AGREEMENT. Upon issuance of the ORDER by the
FDIC, the FDIC shall remit the certified check to the Treasury of the United

3

 

States.

     8. In the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, Respondent
agrees not to seek or accept indemnification for the civil money penalty assessed and paid in this
matter.

     9. The Respondent further stipulates and agrees that such ORDER will be deemed to be an order
which has become final under the Act, and that such ORDER shall become effective upon its issuance
by the FDIC and fully enforceable by the FDIC pursuant to the provisions of the Act subject only to
the conditions of paragraphs 10 and 11 of this CONSENT AGREEMENT.

     10. 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 against the Respondent to enforce the ORDER in the United
States District Court unless the Respondent or any director, officer, employee, agent, successor or
assign, or other institution-affiliated party (collectively, the Bank Parties) has violated or is
about to violate any provision of such ORDER.

     11. (a) In the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, this will
be a release by the FDIC of the Respondent and Bank Parties with respect to the alleged violations
of Section 5 identified by the FDIC arising

4

 

out of the Respondent’s marketing of the Cash Back Reward feature of its credit card products
and acts or practices relating to the Respondent’s repricing of credit card accounts, the Adverse
Action Notification Requirements, and any other allegations relating in any manner to the FDIC’s
Compliance Report of Examination dated January 16, 2007 (Release Violations). In the event the FDIC
accepts this CONSENT AGREEMENT and issues the ORDER, it is agreed that the FDIC shall not initiate
any further legal action, except an action to enforce the terms of the ORDER, against any of the
Bank Parties based on the Release Violations.

          (b) Except as provided herein, the Respondent agrees and acknowledges that the terms and
provisions of this CONSENT AGREEMENT and the acceptance by the FDIC of this CONSENT AGREEMENT and
the issuance of the ORDER shall not in any way bar, estop or otherwise prevent the FDIC from taking
any other action against any of the Bank Parties, or any of the Respondent’s current or former
institution-affiliated parties.

     12. The Bank disagrees with FDIC’s assertion that Section 5 (including implementing rules,
regulations, regulatory guidance, and statements of policy) applies to business-purpose credit
cards issued to owners of small businesses and other professionals. The FDIC and the

5

 

Respondent agree that entering into this CONSENT AGREEMENT shall not constitute an admission
of liability by the Respondent for the transactions and practices that form the basis of the ORDER;
nor shall it constitute a waiver of any substantive or procedural rights of the Respondent or Bank
Parties to refute any alleged violations of Section 5 or the Adverse Action Notification
Requirements not mentioned in the Compliance Report or the ORDER.

     13. The Respondent hereby waives:

          (a) all defenses and counterclaims of any kind to the NOTICE and in this proceeding;

          (b) a public hearing for the purpose of taking evidence on such alleged charges;

          (c) the filing of proposed findings of fact and conclusions of law;

          (d) the issuance of a recommended decision by an administrative law judge;

          (e) the filing of exceptions and briefs with respect to such recommended decision; and

          (f) judicial review of the ORDER as provided by section 8(h) of the Act, 12 U.S.C. § 1818(h), or any other challenge to the validity of the ORDER.

6

 

Dated this 24 day of June, 2009.

	 	 	 
	FDIC

	 	ADVANTA BANK CORP.
	LEGAL DIVISION

	 	DRAPER, UTAH
	 
	 	 
	BY:

	 	BY:
	 
	/s/ Carol G. Laakso
	 	/s/
Dennis Alter
	 	 	 
	Carol G. Laakso

	 	Dennis Alter
	Counsel

	 	Director
	 
	 
	 	/s/ Calvin M. Boardman
	 

	 	 
	 

	 	Calvin M. Boardman
	 

	 	Director
	 
	 
	 	/s/ Philip M. Browne
	 

	 	 
	 

	 	Philip M. Browne
	 

	 	Director
	 
	 
	 	/s/ Fred W. Fairclough
	 

	 	 
	 

	 	Fred W. Fairclough
	 

	 	Director
	 
	 
	 	/s/ Fred P. Gonzales
	 

	 	 
	 

	 	Fred P. Gonzales
	 

	 	Director
	 
	 
	 	/s/ John F. Moore
	 

	 	 
	 

	 	John F. Moore
	 

	 	Director
	 
	 
	 	/s/ William Wirthlin
	 

	 	 
	 

	 	William Wirthlin
	 

	 	Director
	 
	 	 
	 

	 	Comprising the Board of
	 

	 	Directors of Advanta Bank
	 

	 	Corp., Draper, Utah

7exv10w4

Exhibit 10.4

V26 06-15-2009

FEDERAL DEPOSIT INSURANCE CORPORATION

WASHINGTON, D.C.

	 	 	 	 	 	 	 	 	 
	 
	 	 	)	 	 	 	 	 
	In the Matter of
	 	 	)	 	 	 	 	 
	 
	 	 	)	 	 	ORDER TO CEASE AND DESIST,	 	 
	ADVANTA BANK CORP.
	 	 	)	 	 	ORDER FOR RESTITUTION	 	 
	DRAPER, UTAH
	 	 	)	 	 	and	 	 
	 
	 	 	)	 	 	ORDER TO PAY	 	 
	 
	 	 	)	 	 	 	 	 
	(INSURED STATE NONMEMBER BANK)
	 	 	)	 	 	FDIC-08-259b	 	 
	 
	 	 	)	 	 	FDIC-08-403k	 	 
	 
	 	 	)	 	 	 	 	 

     ADVANTA BANK CORP., Draper, Utah (“Bank”), having been advised of its right to a Notice of
Charges and of Hearing under section 8(b) of the Federal Deposit Insurance Act (“Act”), 12 U.S.C. §
1818(b), detailing the violations of law and/or regulations and unsafe or unsound banking practices
alleged to have been committed by the Bank prior to the Bank’s closure of credit card accounts to
new transactions in May 2009, and of its right to a hearing with respect to the foregoing, and
having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO
CEASE AND DESIST, ORDER FOR RESTITUTION, and ORDER TO PAY (“CONSENT AGREEMENT”) with a
representative of the Legal Division of the Federal Deposit Insurance Corporation (“FDIC”), dated
June 24, 2009, whereby, solely for the purpose of this proceeding and without admitting or denying the
alleged violations of law and/or regulations and

Page 1 of 17

 

unsafe or unsound banking practices, the Bank consented to the issuance of an ORDER TO CEASE
AND DESIST, ORDER FOR RESTITUTION, and ORDER TO PAY (“ORDER”) by the FDIC.

     The FDIC considered the matter and determined that it has reason to believe that the Bank
committed violations of law and/or regulations and engaged in unsafe or unsound banking practices,
including, but not limited to, violations of section 5 of the Federal Trade Commission Act, 15
U.S.C. § 45(a)(1) (“Section 5”) in connection with the marketing of the Cash Back Reward feature of
the Bank’s credit card products and acts or practices related to the repricing of credit card
accounts; the adverse action notification requirements of the Equal Credit Opportunity Act, 15
U.S.C. §§ 1691 et seq. (“ECOA”), set forth at 15 U.S.C. § 1691(d), and Regulation B of the Board of
Governors of the Federal Reserve System, 12 C.F.R. Part 202 et seq. (“Regulation B”), set forth at
12 C.F.R. § 202.9 (collectively “Adverse Action Notification Requirements”); and operating the Bank
without effective oversight and supervision of the Bank’s credit card products; that the Bank was
unjustly enriched in connection with such violations or practices; and that the Bank should be
required to make restitution to remedy the injuries resulting from such violations or practices.

Page 2 of 17

 

     The FDIC, therefore, accepts the CONSENT AGREEMENT and issues the following:

ORDER TO CEASE AND DESIST

     IT IS HEREBY ORDERED, that the Bank, its institution-affiliated parties, as that term is
defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns, cease and
desist from the following violations of law and/or regulations and from engaging in the following
unsafe or unsound banking practices:

          (a) operating in violation of Section 5; and

          (b) operating in violation of the Adverse Action Notification Requirements.

ORDER FOR RESTITUTION AND OTHER RELIEF

     IT IS FURTHER ORDERED THAT:

     1. Within sixty (60) days of the effective date of this ORDER, the Bank shall commence the
restitution and other relief described below and complete such restitution within one hundred and
twenty (120) days of the effective date of this ORDER. For purposes of this ORDER, the following
definitions will apply:

Page 3 of 17

 

          (a) Customer includes any individual, group, unincorporated association, corporation, limited
liability corporation, limited or general partnership or other business entity.

          (b) Cash Back Reward means the payment by the Bank to a customer of a specified percentage of
the purchase price charged to a Bank credit card account.

          (c) Stated Cash Back Reward means the Cash Back Reward most frequently and prominently
advertised in a solicitation for the Bank’s credit card products.

          (d) Cash Back Reward Account means a Bank credit card account on which Cash Back Rewards are
or were earned.

          (e) Cash Back Accountholder means each customer who opens or opened a Cash Back Reward
Account.

          (f) Bonus Category Purchase means a qualifying purchase charged to a Bank credit card for
which the credit card solicitation states that the Cash Back Accountholder will earn the Stated
Cash Back.

          (g) Ascending Tier Account means a Cash Back Reward Account in which the Cash Back
Accountholder earns or earned less than the Stated Cash Back Reward until the aggregate Bonus
Category Purchases reaches or reached a level established by the Bank.

Page 4 of 17

 

          (h) Cap Account means a Cash Back Reward Account in which the Cash Back Accountholder earns or
earned the Stated Cash Back Reward on Bonus Category Purchases until the aggregate Cash Back
Rewards earned on Bonus Category Purchases and other purchases reaches or reached an amount
established by the Bank, after which the Cash Back Accountholder earns or earned 0% Cash Back
Rewards on Bonus Category Purchases.

          (i) Descending Tier Account means a Cash Back Reward Account in which the Cash Back
Accountholder earns or earned the Stated Cash Back Reward until the aggregate Bonus Category
Purchases reaches or reached the amount established by the Bank.

          (j) Threshold means the minimum amount of unpaid, earned Cash Back Rewards that the Cash Back
Accountholder must accrue by the end of a billing cycle in order for the Bank to issue a check to
the Cash Back Accountholder for the earned Cash Back Reward.

          (k) Reprice means the upward adjustment of an Annual Percentage Rate (“APR”) applicable to a
Bank Credit Card Account except for the upward adjustment of an APR due to (i) a Default Event;
(ii) the operation of an index for variable rate APRs; (iii) a reset of the variable rate floor
(e.g., an adjustment to the margin or change in the underlying index); (iv) loss or expiration of a
promotional rate; or (v) termination or

Page 5 of 17

 

completion of a workout arrangement.

          (l) Default Event means (i) not making payment on the Customer’s credit card account so that
it is received by the Bank by its due date, (ii) paying less than the minimum amount due on the
Customer’s credit card account, (iii) exceeding the credit limit of the Customer’s credit card
account, and/or (iv) making a payment on the credit card account that is not honored by the
Customer’s bank.

          (m) Eligible Customer means:

               (i) any Cash Back Accountholder who, during the period from January 17, 2004 to the effective
date of this ORDER, applied for and received a Bank credit card in response to a written,
web-based, or alternative media solicitation or advertisement for a Bank credit card that provided
Cash Back Rewards, that did not contain the words “up to” preceding the Stated Cash Back Reward.
This includes existing Cash Back Reward Accountholders; former Cash Back Reward Accountholders of a
Cash Back Reward Account that is now closed, charged off, or has been sold to a third party; and
Cash Back Accountholders who, after opening a Cash Back Reward Account, transferred or migrated
from the initial Cash Back Reward program to another Cash Back Reward program, business reward
program, travel reward program, or any other type of Bank credit card product, unless Eligible
Customer

Page 6 of 17

 

already is provided Restitution with respect to one of the Cash Back Reward programs.

               (ii) any Bank credit card accountholder whose credit card account was repriced (as defined in
subparagraph 1(k)) from June 1, 2007 through 2008 unless an accountholder exercised the opt-out
right pursuant to the Bank’s notice of change in terms. This includes existing Bank credit card
accountholders and former Bank credit card accountholders of a credit card account that is now
closed, charged off, or has been transferred by the Bank.

               (iii) It is agreed that the file containing the customer list submitted by the Bank and
approved by the FDIC constitutes compliance with the Order in terms of the scope of Eligible
Customers awarded restitution under paragraph 3.

     2. Restitution — Cash Back Reward Account: Except as provided in subparagraph (e) of
this paragraph and paragraph 4, the Bank shall pay each Eligible Customer the full amount of the
applicable Stated Cash Back Reward for each Bonus Category Purchase, regardless of any Threshold
established by the Bank, from the date the Cash Back Reward Account was opened through and
including the end of the billing cycles indicated below, less the amount of Cash Back Rewards
attributable to the Bonus Category Purchases that occurred during the billing cycles

Page 7 of 17

 

referenced below and that were actually paid by the Bank to the Eligible Customer:

          (a) Ascending Tier Account – From opening of Cash Back Reward Account through three (3)
billing cycles following the billing cycle in which the first Bonus Category Purchase occurs.

          (b) Descending Tier Account – From opening of Cash Back Reward Account through three (3)
billing cycles following the billing cycle in which the aggregate Bonus Category Purchases
reach/reached the limit applicable to the Cash Back Reward Account.

          (c) Cap Account with Billing Cycle Cap – From opening of Cash Back Reward Account through
three (3) billing cycles following the billing cycle in which the Cash Back Accountholder
reaches/reached the Billing Cycle Cap.

          (d) Cap
Account without Billing Cycle Cap – From opening of Cash Back Reward Account through
three (3) billing cycles after the Cash Back Accountholder reaches/reached the Annual Cap.

          (e) If on the effective date of this Order an Eligible Customer is more than 30 days
delinquent in making payment on the Customer’s credit card account, the amount of restitution to
which the Eligible Customer is entitled will be

Page 8 of 17

 

credited to the Customer’s account.

          (f) Excluding restitution credited to accountholders’ credit card accounts in accordance with
paragraph 4, total restitution under this paragraph shall not exceed $14 million.

     3. Restitution, Repriced Account: Except as provided in subparagraphs (a), (b), and
(c) of this paragraph and paragraph 4, the Bank shall pay each Eligible Customer the difference
between the full amount of the interest that accrued on the Customer’s credit card account from the
effective date of the repricing (as defined in paragraph 1(k)) through the immediately succeeding
two billing cycles (“Restitution Period”) and the amount of interest that would have accrued using
the APR(s) that would have applied if the account had not been repriced. If an Eligible Customer’s
credit card account was repriced (as defined herein) more than once, the Bank will pay the Customer
restitution with respect to each repricing. Restitution will be reduced by any interest credited to
the Customers’ accounts in the form of an interest waiver for the Restitution Period.

          (a) If a credit card accountholder whose account was repriced from June 1, 2007 through
December, 2008 subsequently received a downward rate adjustment for the applicable Restitution
Period (for example as a result of enrollment in a workout program, a retention offer or a decrease
in the index

Page 9 of 17

 

for a variable APR (“Lowered Rate”), restitution shall be calculated as the difference between
either (i) the full amount of the interest that accrued on the Customer’s credit card account from
the effective date of the repricing (as defined in paragraph 1(k)) or (ii) the Lowered Rate,
whichever was applied through the Restitution Period, and the amount of interest that would have
accrued using the APR(s) that would have been applied if the account had not been repriced.

          (b) If on the effective date of this Order an Eligible Customer is more than 30 days
delinquent in making payment on the Customer’s credit card account, the amount of restitution to
which the Eligible Customer is entitled will be credited to the Customer’s account.

          (c) Excluding restitution credited to accountholders’ credit card accounts in accordance
with paragraph 4, total restitution under this paragraph shall not exceed $21 million.

          (d) It is agreed that the restitution calculations submitted by the Bank and approved by the
FDIC constitute compliance with the restitution calculations prescribed in this paragraph.

     4. Restitution, Charged Off Account: For Cash Back Reward and repriced accounts that
have been charged off, the amount of

Page 10 of 17

 

restitution to which the Eligible Customer is entitled will be credited to the Customer’s account.
The Bank will report the reduced outstanding balance to the credit reporting agencies.

NOTIFICATIONS TO CUSTOMERS

     5. Written Notification, Restitution: (a) Prior to the effective date of this ORDER,
the Bank shall submit the proposed text of the letters that will accompany the restitution checks
to Eligible Customers (except customers receiving a credit under paragraphs 2(e), 3(b), and 4
above) under the terms of this ORDER to the Regional Director of the FDIC’s New York Regional
Office (“Regional Director”) for review and non-objection. Such letters shall include satisfactory
language explaining the reason the Bank is sending a restitution check together with an explanation
of the manner in which the amount of restitution was calculated.

          (b) The Regional Director shall notify the Bank in writing of any comments or non-objection.
The Bank shall then address any comments of the Regional Director, making such changes as may be
required to the proposed letter(s).

          (c) The letters, incorporating any changes that may be required in response to comments by
the Regional Director, shall be sent to all Eligible Customers receiving a check for

Page 11 of 17

 

restitution.

          (d) The letters described above and the restitution checks described in paragraph 6 below
shall be mailed no later than one hundred twenty (120) days from the effective date of this ORDER.

          (e) All mailings pursuant to this paragraph shall be sent by United States Postal Service
first-class mail, address correction service requested. The envelope shall contain no materials
other than those reviewed and not objected to by the Regional Director.

          (f) The Bank shall make reasonable attempts to locate Eligible Customers, including a
standard address search using the National Change of Address System, whose notification letter
and/or restitution check is returned for any reason.

          (g) The Bank shall promptly re-mail all returned letters and/or restitution checks to
corrected addresses, if any.

     6. Restitution Check: The face of each restitution check shall clearly and
conspicuously state “Please cash or deposit this check within 180 days or it will no longer be
valid.” After one hundred eighty-seven (187) days from the date the restitution checks were
originally mailed, the Bank may void all checks that were returned or have not been negotiated.

Page 12 of 17

 

     7. Restitution Funds: (a) In order to allow Eligible Customers who did not receive
their restitution check or failed to negotiate it within the original period to receive
restitution, the Bank shall retain, in a separate account, the money owed for restitution for a
period of five hundred forty (540) days from the effective date of this ORDER.

          (b) The Bank shall determine the disposition of any unclaimed funds in accordance with all
applicable laws and regulations.

     8. Restitution Compliance Report: (a) Within ninety (90) days from the effective
date of this Order, and then every thirty (30) days thereafter until completion of the restitution
required by this ORDER, the Bank shall prepare and send to the Regional Director a detailed written
report that explains the processes and procedures by which the Bank identified the Eligible
Customers and determined the applicable restitution amounts described above. The report shall also
include the following: (i) total number of Eligible Customers, (ii) names, contact, and account
information of the Eligible Customers, (iii) amount of restitution to which each Eligible Customer
is entitled, (iv) number of Eligible Customers who received restitution, (v) total amount of
restitution paid, (vi) the Bank’s procedures to contact Eligible Customers who did not

Page 13 of 17

 

receive restitution, and (vii) the amount of undistributed restitution funds.

          (b) The Bank shall hire an independent auditor, acceptable to the Regional Director, who may
be a certified public accountant who shall verify that the Bank accurately identified Eligible
Customers and issued restitution checks as required by this ORDER.

          (c) The independent auditor shall prepare a detailed written report of the processes and
procedures by which the Bank determined the restitution described in paragraphs 2 and 3 above.

          (d) The report described above in paragraph 8(c) shall be submitted to the Regional Director
for review, comment, and non-objection sixty (60) days after the Bank has completed all required
Restitution.

     9. Record Retention: For three (3) years from the effective date of this Order, the
Bank shall retain all records pertaining to the Restitution including, but not limited to:
documentation of the processes and procedures used to determine the Eligible Customers, the names,
contact and account information of the Eligible Customers, any mailing records, and documentation
that the appropriate restitution was made.

Page 14 of 17

 

ORDER TO PAY

     IT IS FURTHER ORDERED THAT, by reason of the alleged violations of law and/or regulations, and
after taking into account the CONSENT AGREEMENT, the appropriateness of the penalty with respect to
the financial resources and good faith of the Bank, the gravity of the conduct by the Bank, the
history of previous conduct by Bank, and such other matters as justice may require, pursuant to
section 8(i)(2) of the Act, 12 U.S.C. § 1818(i)(2):

     10. The Bank shall pay a civil money penalty of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000).
The Bank shall pay the civil money penalty to the Treasury of the United States. The Bank shall
pay such civil money penalty itself, and is prohibited from seeking or accepting indemnification
for such payment from any third party.

     11. Notice to Shareholders: Within sixty (60) days of the effective date of this
ORDER, the Bank shall send or otherwise furnish a description of this ORDER to its shareholders.
The description shall fully describe the ORDER in all material respects. The description and any
accompanying communication, statement, or notice shall be sent to the FDIC, Division of Supervision
and Customer Protection, Accounting and

Page 15 of 17

 

Securities Disclosure Section, 550 17th Street, N.W., Washington, D.C. 20429 and to the
Regional Director for review at least 20 days prior to dissemination to shareholders. Any changes
requested to be made by the FDIC shall be made prior to dissemination of the description,
communication, notice or statement, with a copy provided to the Regional Director.

     12. Regional Director: Whenever a provision of this ORDER shall require the Bank to
submit a proposed letter, report, or other matter to the Regional Director for review, comment
and/or non-objection, the Bank shall make such submission to the Regional Director at 20 Exchange
Place, New York, New York 10005.

     13. Effective Date: This ORDER shall be effective on the date of issuance.

     14. Responsible Persons: The provisions of this ORDER shall be binding on the Bank,
its institution-affiliated parties, successors and assigns.

     15. Enforceability: The provisions of this ORDER shall remain effective and
enforceable except to the extent that, and until such time as, any provisions of this ORDER shall
have been modified, suspended or terminated in writing by the FDIC.

Page 16 of 17

 

Pursuant to delegated authority.

Dated at
Washington, D.C., this 30th day of June, 2009.

	 	 	 
	

	/s/
Sandra L. Thompson
	 
	

	Sandra L. Thompson

Director 

Division of Supervision and 

Consumer Protection	 

Page 17 of 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]