Document:

a50100954ex10_1.htm

Exhibit 10.1

FEDERAL DEPOSIT INSURANCE CORPORATION

WASHINGTON, D.C.

	
In the Matter of:

	
)

	  
	  	
)

	
STIPULATION AND CONSENT

	
REPUBLIC BANK & TRUST COMPANY

	
)

	
TO ISSUANCE OF A CONSENT

	
LOUISVILLE, KY

	
)

	
ORDER AND ORDER TO PAY

	  	
)

	
CIVIL MONEY PENALTIES

	
(INSURED STATE NONMEMBER

	
)

	  
	
BANK)

	
)

	
FDIC-10-079b

	  	
)

	
FDIC-10-216k

Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER, ORDER TO PAY CIVIL MONEY PENALTIES, AND ORDER TERMINATING 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 Republic Bank & Trust Company of Louisville, Kentucky (the “Bank”) as follows:

 

1.           The FDIC issued an Amended Notice of Charges for an ORDER TO CEASE AND DESIST, NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTIES, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, AND NOTICE OF HEARING (“NOTICE”) against the Bank in the above-captioned matter on May 3, 2011.

 

2.           On May 18, 2011, the Bank filed an ANSWER and AFFIRMATIVE DEFENSES TO THE NOTICE (“ANSWER”) and requested a hearing.

 

3.           The hearing in the above-captioned matter is presently scheduled to commence on February 6, 2012.

 

  

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4.           Now, solely for the purpose of this proceeding and without admitting or denying any charges of unsafe or unsound banking practices or violations of law and/or regulations, the Bank hereby consents and agrees to the issuance of a CONSENT ORDER, ORDER TO PAY CIVIL MONEY PENALTIES, AND ORDER TERMINATING ORDER TO CEASE AND DESIST ("ORDER") by the FDIC.

 

5.           The Bank stipulates and agrees that the ORDER is intended to be, and shall be construed to be, a final order issued pursuant to 12 U.S.C. 12 U.S.C. §§ 1818(b) and 1818(i), and expressly does not form, and may not be construed to form, a contract binding on the FDIC or the United States.

 

6.           In connection with this proceeding, the Bank hereby waives:

 

	
a.              

	
A hearing for the purpose of taking evidence;

	
b.              

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

	
c.              

	
A RECOMMENDED DECISION of an Administrative Law Judge;

	
d.              

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

	
e.              

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

7.           The Bank further consents and agrees to pay a civil money penalty in the amount of  Nine Hundred Thousand Dollars ($900,000.00) 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).  The Bank shall pay the civil money penalty by delivering to the FDIC a certified check payable to the Treasury of the United States in the amount of Nine Hundred Thousand Dollars ($900,000.00) upon 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 States.

 

  

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8.           The Bank has developed an Electronic Refund Originator (“ERO”) Oversight Plan (the “Plan”) to enhance oversight of the EROs through which the Bank offers products and services, which Plan has been submitted to the FDIC Regional Director for non-objection or comment.

 

9.           Having received no objection to the Plan from the FDIC Regional Director, the Bank’s duly elected Board of Directors (“Board”) has approved the Plan, which approval has been recorded in the minutes of the Board meeting.  The Bank shall implement and comply with the Plan.

 

10.         The Bank further agrees that on or before April 30, 2012, it shall exit the business of making or funding Refund Anticipation Loans (“RALs”) and shall not thereafter resume such business.

 

11.         The Bank further agrees that, within ten (10) days of the acceptance of the ORDER by the FDIC, the Bank shall file a stipulation of voluntary dismissal with prejudice of its civil action against the FDIC et al., filed in the United States District Court for the Western District of Kentucky, Docket No. 3:11-cv-00119-CRS.

 

12.         Upon acceptance of this CONSENT AGREEMENT and issuance of the ORDER by the FDIC, it is agreed that no action to enforce such ORDER in the United States District Court will be taken by the FDIC unless the Bank or any director, officer, employee, agent, successor or assignee, or other institution-affiliated party, has violated or is about to violate any provision of the ORDER.

 

  

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13.         Provided that the Bank has complied with the terms of this CONSENT AGREEMENT, the FDIC agrees that it will consider any merger applications filed with the FDIC by the Bank and any requests by the Bank for clearance to bid on the assets and deposits of failing institutions.  In considering such merger applications or requests for clearance to bid that may be submitted by the Bank, the FDIC will apply the same requirements, standards, and policies that the FDIC typically applies with respect to any other insured depository institution.  The Bank may file such merger applications or requests for clearance to bid immediately upon acceptance of this CONSENT AGREEMENT by the FDIC.

 

14.         The FDIC and the Bank agree that entering into this CONSENT AGREEMENT shall not constitute an admission or denial of liability by the Bank for the transactions and practices that form the basis of the ORDER.

 

Dated this 8th day of December, 2011.

	
FEDERAL DEPOSIT INSURANCE

	 	
REPUBLIC BANK & TRUST COMPANY

	
CORPORATION

	 	
LOUISVILLE, KENTUCKY

	  	 	  
	
By:

	 	
By:

	  	 	  
	
 /s/ David P. Weber

	 	
/s/ Ronald F. Barnes

	
David P. Weber

	 	
Ronald F. Barnes

	
Supervisory Counsel

	 	
Director

	
Enforcement Section

	 	  
	  	 	  
	  	 	
/s/ Campbell Brown

	  	 	
Campbell Brown

	  	 	
Director

	  	 	  
	  	 	  
	  	 	
/s/ Stan Curtis

	  	 	
Stan Curtis

	  	 	
Director

 

  

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/s/ Laura M. Douglas

	  	 	
Laura M. Douglas

	  	 	
Director

	  	 	  
	  	 	  
	  	 	
/s/ D. Harry Jones

	  	 	
D. Harry Jones

	  	 	
Director

	  	 	  
	  	 	  
	  	 	
/s/ Tom Jurich

	  	 	
Tom Jurich

	  	 	
Director

	  	 	  
	  	 	  
	  	 	
/s/ Kent Oyler

	  	 	
Kent Oyler

	  	 	
Director

	  	 	  
	  	 	  
	  	 	
/s/ Mary Ellen Slone

	  	 	
Mary Ellen Slone

	  	 	
Director

	 	 	 
	  	 	  
	  	 	
/s/ Scott Trager

	  	 	
A. Scott Trager

	  	 	
Director

	 	 	 
	  	 	  
	  	 	
/s/ Bernard M. Trager

	  	 	
Bernard M. Trager

	  	 	
Director

	 	 	 
	  	 	  
	  	 	
/s/ Steven E. Trager

	  	 	
Steven E. Trager

	  	 	
Chairman of the Board

	  	 	  
	  	 	
Comprising the Board of

	  	 	
Directors of

	  	 	
REPUBLIC BANK & TRUST COMPANY

	  	 	
LOUISVILLE, KENTUCKY

 

 

10a50100954ex10_2.htm

Exhibit 10.2

FEDERAL DEPOSIT INSURANCE CORPORATION

WASHINGTON, D.C.

	
In the Matter of:

	
)

	  
	  	
)

	
CONSENT ORDER;

	
REPUBLIC BANK & TRUST COMPANY

	
)

	
ORDER TO PAY CIVIL

	
LOUISVILLE, KY

	
)

	
MONEY PENALTIES; AND

	  	
)

	
ORDER TERMINATING ORDER

	
(INSURED STATE NONMEMBER

	
)

	
TO CEASE AND DESIST

	
BANK)

	
)

	  
	  	
)

	
FDIC-10-079b

	  	
)

	
FDIC-10-216k

WHEREAS, the Federal Deposit Insurance Corporation (“FDIC”) is the appropriate Federal banking agency for Republic Bank & Trust Company of Louisville, Kentucky (the “Bank”), under Section 3(q) of the Federal Deposit Insurance Act (“FDI Act”), 12 U.S.C. § 1813(q);

 

WHEREAS, the Bank, by and through its duly elected board of directors (“Board”), has executed a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER, ORDER TO PAY CIVIL MONEY PENALTIES, and ORDER TERMINATING ORDER TO CEASE AND DESIST (“CONSENT AGREEMENT”), dated December 8, 2011;

 

WHEREAS, through the CONSENT AGREEMENT, the Bank has consented, without admitting or denying any violations of law and/or regulations and unsafe or unsound banking practices, to the issuance of this CONSENT ORDER, ORDER TO PAY CIVIL MONEY PENALTIES, AND ORDER TERMINATING ORDER TO CEASE AND DESIST (“ORDER”) by the FDIC;

 

  

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WHEREAS, the Bank has submitted to the FDIC Regional Director a plan to enhance the Bank’s oversight of its third-party Electronic Refund Originators; and

 

WHEREAS, the FDIC has determined that the requirements for issuance of an order under Sections 8(b) and 8(i) of the FDI Act, 12 U.S.C. §§ 1818(b) and 1818(i), have been satisfied;

 

NOW, THEREFORE, the FDIC accepts the CONSENT AGREEMENT and issues the following ORDER:

 

CONSENT ORDER

 

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, shall take affirmative action as follows:

 

1.           On or before April 30, 2012, the Bank shall exit the business of making or funding Refund Anticipation Loans (“RALs”), and shall not thereafter resume such business.

 

ORDER TO PAY CIVIL MONEY PENALTY

 

2.           IT IS FURTHER ORDERED THAT by reason of the violations of law and/or regulations, and/or unsafe or unsound practices, and after taking into account the appropriateness of the penalty with respect to the financial resources and good faith of the Bank, the gravity of the violations, the history of previous conduct by the Bank, and such other matters as justice may require, pursuant to Section 8(i)(2) of the FDI Act, 12 U.S.C. § 1818(i)(2), a civil money penalty of Nine Hundred Thousand Dollars ($900,000.00) is assessed against the Bank.  The Bank itself shall pay such amount to the Treasury of the United States and is prohibited from seeking or accepting indemnification from such payment from any third party.

 

  

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ORDER TERMINATING ORDER TO CEASE AND DESIST

 

3.           IT IS FURTHER ORDERED THAT the Order to Cease and Desist entered on February 27, 2009 against the Bank (FDIC-08-308b) is hereby terminated.

 

MISCELLANEOUS

 

4.           This ORDER is intended to be, and shall be construed to be, a final order issued pursuant to 12 U.S.C. 12 U.S.C. §§ 1818(b) and 1818(i), and shall be effective upon issuance.

 

5.           The provisions of this ORDER shall not bar, estop, or otherwise prevent the FDIC or any other federal or state agency or department from taking any other action against the Bank or any of the Bank’s current or former institution-affiliated parties, as that term is defined in Section 3(u) of the FDI Act, 12 U.S.C. § 1813(u); provided however the FDIC in its corporate capacity will not commence any further action against the Bank or any of its officers, directors, employees or agents, or any of its current or former institution-affiliated parties, arising out of matters addressed in and predating the ORDER, CONSENT AGREEMENT, or NOTICE (as NOTICE is defined in the Consent Agreement) except to enforce provisions of this ORDER upon a threatened or actual violation of the ORDER.

 

6.           The provisions of this ORDER shall be binding upon the Bank, its successors and assigns, and any of their respective directors, officers, employees, and agents, and any of the Bank’s institution-affiliated parties.

 

  

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7.           The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, all provisions of this ORDER have been satisfied, at which time this Order shall terminate.

 

Pursuant to delegated authority.

 

Dated this 8th day of December, 2011.

	  	
/s/ Sylvia H. Plunkett

	  	
Sylvia H. Plunkett

	  	
Senior Deputy Director

	  	
Compliance and CRA Examinations

	  	
Division of Depositor and Consumer Protection

	  	
Federal Deposit Insurance Corporation

 

 

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