Document:

Exhibit 10.70

Exhibit 10.70

UNITED STATES OF AMERICA

Before the

OFFICE OF THRIFT SUPERVISION

	 	 	 	 	 	 	 
	 
	 	)	 	 	 
	In the Matter of
	 	 	)	 	 	Order No.: CN 10-07 
	 
	 	 	)	 	 	 
	 
	 	 	)	 	 	 
	NCB FINANCIAL
CORPORATION

	 	 	)

)	 	 	Effective Date:
March 15, 2010
	Washington, D.C.
 OTS Docket No. H1392

	)

)

)	 	 	 

ORDER TO CEASE AND DESIST

WHEREAS, NCB Financial Corporation, Washington, D.C., OTS Docket No. H1392 (Mid-Tier Holding
Company), by and through its Board of Directors (Board) has executed a Stipulation and Consent to
the Issuance of an Order to Cease and Desist (Stipulation); and

WHEREAS, the Mid-Tier Holding Company, by executing the Stipulation, has consented and agreed
to the issuance of this Order to Cease and Desist (Order) by the Office of Thrift Supervision (OTS)
pursuant to 12 U.S.C. § 1818(b); and

WHEREAS, pursuant to delegated authority, the OTS Regional Director for the Central Region
(Regional Director), is authorized to issue consent Orders to Cease and Desist where a savings and
loan holding company has consented to the issuance of an order.

NOW, THEREFORE, IT IS ORDERED that:

Cease and Desist.

1. The Mid-Tier Holding Company and its directors, officers, employees, and agents shall cease and
desist from any action (alone or with others) for or toward causing, bringing about,

NCB Financial Corporation

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participating in, counseling or the aiding or abetting in the unsafe or unsound practices regarding
the adequacy of the Mid-Tier Holding Company’s capital, earnings, and liquidity provisions in light
of its risk profile.

Dividends and other Capital Distributions.

2. Effective immediately, the Mid-Tier Holding Company shall not declare, make, or pay any cash
dividends or other capital distributions or purchase, repurchase or redeem or commit to purchase,
repurchase, or redeem any Mid-Tier Holding Company equity stock without the prior written
non-objection of the Regional Director. The Mid-Tier Holding Company shall submit its written
request for non-objection to the Regional Director at least forty-five (45) days prior to the
anticipated date of the proposed dividend, capital distribution, or stock transaction.

Debt Restrictions. 

3. Effective immediately, the Mid-Tier Holding Company shall not, directly or indirectly, incur,
issue, renew, or rollover any debt or commit to do so, increase any current lines of credit, or
guarantee the debt of any entity, without prior written notice to and written non-objection from
the Regional Director. The Mid-Tier Holding Company’s written request for approval shall be
submitted to the Regional Director at least thirty (30) days prior to incurring, issuing, renewing,
rolling over any debt, increasing any current lines of credit, or guaranteeing the debt of any
entity. The Mid-Tier Holding Company’s written requests for Regional Director non-objection to
engage in such debt transactions, at a minimum, shall: (a) describe the purpose of the proposed
debt; (b) set forth and analyze the terms of the proposed debt and covenants; (c) analyze the
Mid-Tier Holding Company’s current cash flow resources available to satisfy such debt repayment;
and (d) set forth the anticipated source(s) of repayment of the proposed debt. For purposes of
this Paragraph of the Order, the term “debt” includes, but is not limited to, loans,

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bonds, cumulative preferred stock, hybrid capital instruments such as subordinated debt or trust

preferred securities, and guarantees of debt. For purposes of this Paragraph of the Order, the

term “debt” does not include liabilities incurred in the ordinary course of business to acquire

goods and services and that are normally recorded as accounts payable under generally accepted

accounting principles.

Directorate and Management Changes.

4. Effective immediately, the Mid-Tier Holding Company shall comply with the prior notification
requirements for changes in directors and Senior Executive Officers1 set forth in 12
C.F.R. Part 563, Subpart H.

Severance and Indemnification Payments.

5. Effective immediately, the Mid-Tier Holding Company shall not make any golden parachute
payment2 or any prohibited indemnification payment3 unless, with respect to
each such payment, the Mid-Tier Holding Company has complied with the requirements of 12 C.F.R.
Part 359.

 Employment Contracts and Compensation Arrangements. 

6. Effective immediately, the Mid-Tier Holding Company shall not enter into any new contractual
arrangement or renew, extend or revise any existing contractual arrangement related to compensation
or benefits with any director or Senior Executive Officer of the Mid-Tier Holding Company, unless
it first provides the Regional Director with not less than thirty (30) days prior written notice of
the proposed transaction. The notice to the Regional Director shall include a copy of the proposed
employment contract or compensation arrangement, or a detailed,

 

	 	 	 
	1	 	The term “Senior Executive Officer” is defined at 12
C.F.R. § 563.555.
	 
	2	 	The term “golden parachute payment” is defined at 12
C.F.R. § 359.1(f).
	 
	3	 	The term “prohibited indemnification payment” is
defined at 12 C.F.R. § 359.1(l).

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written description of the compensation arrangement to be offered to such Senior Executive Officer
or director, including all benefits and perquisites. The Mid-Tier Holding Company shall ensure
that any contract, agreement or arrangement submitted to OTS fully complies with the requirements
of 12 C.F.R. Part 359, 12 C.F.R. §§ 563.39 and 563.161(b), and 12 C.F.R. Part 570-Appendix A.

Affiliate Transactions.

7. Effective immediately, the Mid-Tier Holding Company shall not engage in any new
transactions with any subsidiary or affiliate without the prior written non-objection of the
Regional Director, except: (a) exempt transactions under 12 C.F.R. Part 223; and (b) intercompany
cost-sharing transactions identified in executed written agreements between the parties. The
Mid-Tier Holding Company shall provide thirty (30) days advance written notice to the Regional
Director of any proposed affiliate transaction (except those described in subparagraph (a) and (b)
above) and shall include a full description of the transaction.

Effective Date, Incorporation of Stipulation.

8. This Order is effective on the Effective Date as shown on the first page. The Stipulation is
made a part hereof and is incorporated herein by this reference.

Duration.

9. This Order shall remain in effect until terminated, modified or suspended, by written notice of
such action by the OTS, acting by and through its authorized representatives.

Time Calculations.

10. Calculation of time limitations for compliance with the terms of this Order run from the
Effective Date and shall be calendar based, unless otherwise noted.

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Submissions and Notices.

11. All submissions, including progress reports, to OTS that are required by or contemplated by
this Order shall be submitted within the specified timeframes.

12. Except as otherwise provided herein, all submissions, requests, communications, consents or
other documents relating to this Order shall be in writing and sent by first class U.S mail (or by
reputable overnight carrier, electronic facsimile transmission or hand delivery by messenger) addressed as follows:

	 	(a)	 	To the OTS:
	 
	 	 	 	Regional Director

Office of Thrift Supervision

One South Wacker Drive, Suite 2000

Chicago, Illinois 60606

Facsimile: (312) 917-5001
	 
	 	(b)	 	To the Mid-Tier Holding Company:
	 
	 	 	 	Chairman of the Board

NCB Financial Corporation

2011 Crystal Drive, Suite 800

Arlington, Virginia 22202-3709

Facsimile: (703) 647-4203

No Violations Authorized.

13. Nothing in this Order or the Stipulation shall be construed as allowing the Mid-Tier Holding
Company, its Board, officers or employees to violate any law, rule, or regulation.

IT IS SO ORDERED.

	 	 	 	 	 
	 	OFFICE OF THRIFT SUPERVISION

 	 
	 	By:  	/s/
 	 
	 	 	Daniel T. McKee 	 
	 	 	Regional Director, Central Region 	 
	 
	 	Date: See Effective Date on page 1

 	 
	 	 	 
	 	 	 
	 	 	 
	 

NCB Financial Corporation

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UNITED STATES OF AMERICA

Before the

OFFICE OF THRIFT SUPERVISION

	 	 	 	 	 	 	 
	 

	 	)	 	 	 
	In the Matter of

	 	 	)	 	 	Order No.: CN 10-07 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	NCB FINANCIAL CORPORATION

	 	 	)

)	 	 	Effective Date: March 15, 2010
	Washington, D.C.

OTS Docket No. H1392

	)

)

)	 	 	 

STIPULATION AND CONSENT TO ISSUANCE OF ORDER TO CEASE AND DESIST 

WHEREAS, the Office of Thrift Supervision (OTS), acting by and through its Regional Director
for the Central Region (Regional Director), and based upon information derived from the exercise of
its regulatory and supervisory responsibilities, has informed NCB Financial Corporation,
Washington, D.C., OTS Docket No. H1392 (Mid-Tier Holding Company) that the OTS is of the opinion
that grounds exist to initiate an administrative proceeding against the Mid-Tier Holding Company
pursuant to 12 U.S.C. § 1818(b);

WHEREAS, the Regional Director, pursuant to delegated authority, is authorized to issue Orders
to Cease and Desist where a savings and loan holding company has consented to the issuance of an
order; and

WHEREAS, the Mid-Tier Holding Company desires to cooperate with the OTS to avoid the time and
expense of such administrative cease and desist proceedings by entering into this Stipulation and
Consent to the Issuance of Order to Cease and Desist (Stipulation) and, without admitting or
denying that such grounds exist, but only admitting the statements and conclusions in Paragraphs
1-3 below concerning Jurisdiction, hereby stipulates and agrees to the following terms:

NCB Financial Corporation

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Jurisdiction.

1. The Mid-Tier Holding Company is a “savings and loan holding company” within the meaning of 12
U.S.C. § 1813(w)(3) and 12 U.S.C. § 1467a. Accordingly, the Mid-Tier Holding Company is a
“depository institution holding company” as that term is defined in 12 U.S.C. § 1813(w)(1).

2. Pursuant to 12 U.S.C. § 1818(b)(9), the “appropriate Federal banking agency” may initiate cease
and desist proceedings against a savings and loan holding company in the same manner and to the
same extent as a savings association for regulatory violations and unsafe or unsound acts or
practices.

3. Pursuant to 12 U.S.C. § 1813(q), the Director of the OTS is the “appropriate Federal banking
agency” with jurisdiction to maintain an administrative enforcement proceeding against a savings
and loan holding company. Therefore, the Mid-Tier Holding Company is subject to the authority of
the OTS to initiate and maintain an administrative cease-and-desist proceeding against it pursuant
to 12 U.S.C. § 1818(b).

OTS Findings of Fact.

4. Based on its July 6, 2009 examination of the enterprise consisting of the Mid-Tier Holding
Company and the Mid-Tier Holding Company’s parent company, National Consumer Cooperative Bank,
Washington, D.C., OTS Docket No. H1392 (Holding Company), the OTS finds that the Mid-Tier Holding
Company has engaged in certain unsafe or unsound practices as described in the OTS Report of
Examination dated July 6, 2009 with respect to capital, earnings, and liquidity provisions in light
of its risk profile.

Consent.

5. The Mid-Tier Holding Company consents to the issuance by the OTS of the accompanying

NCB Financial Corporation

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Order to Cease and Desist (Order). The Mid-Tier Holding Company further agrees to comply with the
terms of the Order upon the Effective Date of the Order and stipulates that the Order complies with
all requirements of law.

Finality.

6. The Order is issued by the OTS under 12 U.S.C. § 1818(b). Upon the Effective Date, the Order
shall be a final order, effective, and fully enforceable by the OTS under the provisions of 12
U.S.C. § 1818(i).

Waivers.

7. The Mid-Tier Holding Company waives the following:

(a) the right to be served with a written notice of the OTS’s charges against it as provided
by 12 U.S.C. § 1818(b) and 12 C.F.R. Part 509;

(b) the right to an administrative hearing of the OTS’s charges as provided by 12 U.S.C. §
1818(b) and 12 C.F.R. Part 509;

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

(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
enforcement matter and/or the Order, whether arising under common law, federal statutes, or
otherwise.

OTS Authority Not Affected. 

8. Nothing in this Stipulation or accompanying Order shall inhibit, estop, bar, or otherwise
prevent the OTS from taking any other action affecting the Mid-Tier Holding Company if, at any

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time, the OTS deems it appropriate to do so to fulfill the responsibilities placed upon the
OTS by law.

Other Governmental Actions Not Affected.

9. The Mid-Tier Holding Company acknowledges and agrees that its consent to the issuance of the
Order is solely for the purpose of resolving the matters addressed herein, consistent with
Paragraph 8 above, and does not otherwise release, discharge, compromise, settle, dismiss, resolve,
or in any way affect any actions, charges against, or liability of the Mid-Tier Holding Company
that arise pursuant to this action or otherwise, and that may be or have been brought by any
governmental entity other than the OTS.

Miscellaneous.

10. The laws of the United States of America shall govern the construction and validity of this
Stipulation and of the Order.

11. If any provision of this Stipulation and/or the 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.

12. All references to the OTS in this Stipulation and the Order shall also mean any of the OTS’s
predecessors, successors, and assigns.

13. The section and paragraph headings in this Stipulation and the Order are for convenience only
and shall not affect the interpretation of this Stipulation or the Order.

14. The terms of this Stipulation and of the Order represent the final agreement of the parties
with respect to the subject matters thereof, and constitute the sole agreement of the parties with
respect to such subject matters.

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15. The Stipulation and Order shall remain in effect until terminated, modified, or suspended in
writing by the OTS, acting through its Regional Director or other authorized representative.

Signature of Directors/Board Resolution.

16. Each Director signing this Stipulation attests that he or she voted in favor of a Board
Resolution authorizing the consent of the Mid-Tier Holding Company to the issuance of the Order and
the execution of the Stipulation. This Stipulation may be executed in counterparts by the
directors after approval of the execution of the Stipulation.

WHEREFORE, the Mid-Tier Holding Company, by its directors, executes this Stipulation.

	 	 	 
	 

	 	Accepted by:
	NCB FINANCIAL CORPORATION

	 	OFFICE OF THRIFT SUPERVISION
	Washington, D.C.
	 	 

	 	 	 	 	 	 	 
	By:

	 	/s/
	 	By:
	 	/s/
	 

	 	 
	 	 	 	 
	 

	 	Stuart M. Saft, Chairman
	 	 	 	Daniel T. McKee
	 

	 	 	 	 	 	Regional Director, Central Region
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	Date:
	 	 See Effective Date on page 1 
	 

	 	William F. Hampel, Director	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	 	 	 
	 

	 	Alfred A. Plamann, Director	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	 	 	 
	 

	 	Kenneth Rivkin, Director	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	 	 	 
	 

	 	Charles E. Snyder, Director	 	 	 	 

NCB Financial Corporation

Stipulation and Consent to Issuance of Order to Cease and Desist

Page 5 of 5Exhibit 10.71

Exhibit 10.71

UNITED STATES OF AMERICA

Before the

OFFICE OF THRIFT SUPERVISION

	 	 	 	 	 	 	 
	 
	 	)	 	 	 
	In the Matter of
	 	 	)	 	 	Order
No.: CN 10-08 
	 
	 	 	)	 	 	 
	 
	 	 	)	 	 	 
	NATIONAL CONSUMER

COOPERATIVE BANK

	 	 	)
)	 	 	Effective Date:
March 15, 2010
	Washington, D.C.

OTS Docket No. H1195

	)

)

)	 	 	 

ORDER TO CEASE AND DESIST

WHEREAS, National Consumer Cooperative Bank, Washington, D.C., OTS Docket
No. H1195 (Holding Company), by and through its Board of Directors (Board), has executed a
Stipulation and Consent to the Issuance of an Order to Cease and Desist (Stipulation); and

WHEREAS, the Holding Company, by executing the Stipulation, has consented and agreed to the
issuance of this Order to Cease and Desist (Order) by the Office of Thrift Supervision (OTS)
pursuant to 12 U.S.C. § 1818(b); and

WHEREAS, pursuant to delegated authority, the OTS Regional Director for the Central Region
(Regional Director) is authorized to issue Orders to Cease and Desist where a savings and loan
holding company has consented to the issuance of an order.

NOW, THEREFORE, IT IS ORDERED that:

Cease and Desist.

	1.	 	The Holding Company and its directors, officers, employees, and agents shall cease and

National Consumer Cooperative Bank

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desist from any action (alone or with another or others) for or toward causing, bringing about,
participating in, counseling or the aiding and abetting in the unsafe or unsound practices
regarding the adequacy of the Holding Company’s capital, earnings, and liquidity in light of its
risk profile.

Business Plan.

	2.	 	(a) Within forty-five (45) days, the Holding Company shall
submit to the Regional Director for review and comment a
written plan covering the period beginning with the
quarter ending December 31, 2009 through the quarter
ending December 31, 2011 (Business Plan). At a minimum,
the Business Plan shall include:

(i) minimum tangible equity capital ratios commensurate with the Holding Company’s
stand alone risk profile that addresses, among other things, the Holding Company’s
significant off-balance sheet liabilities;

(ii) capital preservation and enhancement strategies with specific time frames to
achieve and maintain the Board-established minimum tangible equity capital ratios;

(iii) operating strategies to ensure that the Holding Company’s expenses and
obligations are met on a stand alone basis without reliance on dividends from the
Holding Company’s subsidiary savings association, NCB, FSB, Hillsboro, Ohio, OTS
Docket No. 08527 (Association);

(iv) specific plans to reduce the risks to the Holding Company from its current
debt levels, debt servicing requirements, and contingent liabilities;

(v) quarterly cash flow projections for the Holding Company on a stand alone basis
beginning with the quarter ending December 31, 2009 through calendar

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year-end December 31, 2011 that identify both the expected sources of funds and the
expected uses of funds;

(vi) detailed quarterly pro forma Holding Company balance sheets and income
statements on a stand alone basis for January 1, 2010 through December 31, 2011
detailing the Holding Company’s ability to maintain the Board established minimum
tangible equity capital ratios throughout the period of the Business Plan;

(vii) detailed scenarios to stress-test the minimum tangible equity capital targets
based on continuing operating results, economic conditions and risk profile of the
Holding Company’s stand alone assets and liabilities; and

(viii) detailed descriptions of all relevant assumptions and projections and the
supporting documentation for all relevant assumptions and projections.

(b) Within thirty (30) days after receiving any written comments from the Regional Director,
the Holding Company shall revise the Business Plan based on such comments and implement the
Business Plan. A copy of the revised Business Plan shall be provided to the Regional
Director within five (5) days after Board approval of the Business Plan.

(c) Any proposed material deviations1 from or changes to the Business Plan
shall be submitted for the prior, written non-objection of the Regional Director.
Requests for any material deviations or changes must be submitted at least forty-five
(45) days before a proposed deviation or change is implemented.

 

	 	 	 
	1	 	A deviation shall be considered material under this
Subparagraph of the Order if the Holding Company plans to: (a) engage in any
activity that is inconsistent with the Business Plan; or (b) exceed the level
of any activity contemplated in the Business Plan or fail to meet target
amounts established in the Business Plan by more than ten percent (10%), unless
the activity involves assets risk-weighted fifty percent (50%) or less, in
which case a variance of more than twenty-five percent (25%) shall be deemed to
be a material deviation.

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(d) The Holding Company shall notify the Regional Director regarding any adverse material
event affecting or that may affect the balance sheet or capital of the Holding Company
within five (5) days after discovery of such event.

	3.	 	(a) On a quarterly basis, beginning with the quarter ending June 30, 2010, the Board shall
review a written report that compares projected operating results contained within the
Business Plan to actual results (Business Plan Variance Report). The Board shall review each
Business Plan Variance Report and address external and internal risks that may affect the
Holding Company’s ability to successfully implement the Business Plan. This review shall
include, but not be limited to, adverse scenarios relating to asset or liability mixes,
interest rates, staffing levels and expertise, operating expenses, marketing costs, and
economic conditions in the markets where the Holding Company is operating. The Board’s review
of each Business Plan Variance Report and assessment of the Holding Company’s compliance with
the Business Plan shall be fully documented in the appropriate Board meeting minutes.

(b) Within sixty (60) days after the close of each quarter beginning with the quarter
ending June 30, 2010, the Board shall provide the Regional Director with a copy of each
Business Plan Variance Report.

Liquidity Risk Management Program. 

4. Within thirty (30) days, the Holding Company shall submit to the Regional Director revisions to
its Liquidity Risk Management Program, acceptable to the Regional Director, that enhance the
Holding Company’s ongoing identification and monitoring of its current and projected funding needs
and its access to sufficient funds to meet those needs. Such revisions shall include at a minimum:

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(a) increasing the Holding Company’s liquidity levels commensurate with the Holding
Company’s consolidated risk profile;

(b) adding risk limits for early identification of potential restrictions to expected
funding capacity and the reduction of volatile funding sources;

(c) increasing diversification of funding sources based on a thorough understanding of the
collateral requirements, if any, of each funding source in a variety of stress scenarios;

(d) performing a cash flow analysis acceptable to the Regional Director to be submitted
quarterly to the Board and Regional Director or more frequently as requested by the Regional
Director;

(e) notifying the Regional Director immediately of any material adverse liquidity event
affecting the cash flow of the consolidated Holding Company; and

(f) monitoring the current market conditions affecting liquidity generally as well as the
specific funding sources relied on by the Holding Company.

Compliance with Regulatory Directives.

5. Effective immediately, the Holding Company shall cooperate fully with the Association regarding
the Association’s compliance with its Supervisory Agreement entered into with the OTS effective
March 15, 2010 and with the Holding Company’s wholly-owned subsidiary, NCB Financial Corporation,
Washington, D.C., OTS Docket No. H1392 (Mid-Tier Holding Company), regarding the Mid-Tier Holding
Company’s compliance with its Order to Cease and Desist entered into with the OTS effective March
15, 2010.

Dividends and Other Capital Distributions.

6. Effective immediately, the Holding Company shall not declare, make, or pay any cash

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dividends or other capital distributions, as that term is defined in 12 C.F.R. § 563.141, or
purchase, repurchase or redeem or commit to purchase, repurchase, or redeem any Holding Company
equity stock without the prior written non-objection of the Regional Director. The Holding Company
shall submit its written request for non-objection to the Regional Director at least forty-five
(45) days prior to the anticipated date of the proposed dividend, capital distribution, or stock
transaction. The written request for such notice of non-objection shall: (a) contain current and
pro forma projections regarding the Holding Company’s capital, asset quality, and earnings; and (b)
address compliance with the Business Plan required by Paragraph 2 of this Order.

Debt Restrictions.

7. Effective immediately, the Holding Company shall not, directly or indirectly, incur, issue,
renew, roll over, or increase any debt or commit to do so without the prior written non-objection
of the Regional Director, except for the Class A Notes issued by the Holding Company. The Holding
Company shall submit its written request for non-objection to the Regional Director at least
forty-five (45) days prior to the anticipated date of the proposed debt transaction. The Holding
Company’s written requests for Regional Director non-objection to engage in such debt transactions,
at a minimum, shall: (a) describe the purpose of the proposed debt; (b) set forth and analyze the
terms of the proposed debt and covenants; (c) analyze the Holding Company’s current cash flow
resources available to satisfy such debt repayment; and (d) set forth the anticipated source(s) of
repayment of the proposed debt. For purposes of this Paragraph of the Order, the term “debt”
includes, but is not limited to, loans, bonds, cumulative preferred stock, hybrid capital
instruments such as subordinated debt or trust preferred securities, and guarantees of debt. For
purposes of this Paragraph of the Order, the term “debt” does not include liabilities

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incurred in the ordinary course of business to acquire goods and services and that are normally

recorded as accounts payable under generally accepted accounting principles.

Affiliate Transactions.

8. Effective immediately, the Holding Company shall not engage in transactions with any

subsidiary or affiliate without the prior written non-objection of the Regional Director, except:

(a) exempt transactions under 12 C.F.R. Part 223; and (b) intercompany cost-sharing transactions

identified in executed written agreements between the parties. The Holding Company shall provide

thirty (30) days advance written notice to the Regional Director of any proposed affiliate

transaction (except those described in Subparagraph (a) and (b) above), include in the written

notice a full description of the transaction, and ensure that the transaction complies with the

requirements of 12 C.F.R. § 563.41 and Regulation W, 12 C.F.R. Part 223.

Severance and Indemnification Payments.

9. Effective immediately, the Holding Company shall not make any golden parachute

payment2 or any prohibited indemnification payment3 unless, with respect to

each such payment, the Holding Company has complied with the requirements of 12 C.F.R. Part 359.

Directorate and Management Changes.

10. Effective immediately, the Holding Company shall comply with the prior notification

requirements for changes in directors and Senior Executive Officers4 set forth in 12

C.F.R. Part 563, Subpart H.

Employment Contracts and Compensation Arrangements.

11. Effective immediately, the Holding Company shall not enter into any new contractual arrangement

or renew, extend, or revise any existing contractual arrangement related to

 

	 	 	 
	2	 	The term “golden parachute payment” is defined at 12
C.F.R. § 359.1(f).
	 
	3	 	The term “prohibited indemnification payment” is
defined at 12 C.F.R. § 359.1(l).
	 
	4	 	The term “Senior Executive Officer” is defined at 12
C.F.R. § 563.555.

National Consumer Cooperative Bank

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compensation or benefits with any director or Senior Executive Officer of the Holding Company,

unless it first provides the Regional Director with not less than thirty (30) days prior written

notice of the proposed transaction. The notice to the Regional Director shall include a copy of

the proposed employment contract or compensation arrangement, or a detailed written description of

the compensation arrangement to be offered to such director or Senior Executive Officer, including

all benefits and perquisites. The Holding Company shall ensure that any contract, agreement, or

arrangement submitted to the Regional Director fully complies with the requirements of 12 C.F.R.

Part 359.

Effective Date, Incorporation of Stipulation.

12. This Order is effective on the Effective Date as shown on the first page. The Stipulation is

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

Duration.

13. This Order shall remain in effect until terminated, modified, or suspended by written notice of

such action by the OTS, acting by and through its authorized representatives.

Time Calculations.

14. Calculation of time limitations for compliance with the terms of this Order run from the

Effective Date and shall be based on calendar days, unless otherwise noted.

Submissions and Notices.

15. All submissions, including any reports, to the OTS that are required by or contemplated by this
Order shall be submitted within the specified timeframes.

16. Except as otherwise provided herein, all submissions, requests, communications, consents, or
other documents relating to this Order shall be in writing and sent by first class U.S. mail (or by
reputable overnight carrier, electronic facsimile transmission, or hand delivery by

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messenger) addressed as follows:

(a)   To the OTS:

Regional Director

Office of Thrift Supervision

One South Wacker Drive, Suite 2000

Chicago, Illinois 60606

Facsimile: (312) 917-5001

(b)   To the Holding Company:

Chairman of the Board

National Consumer Cooperative Bank

2011 Crystal Drive, Suite 800

Arlington, Virginia 22202-3709

Facsimile: (703) 647-4203

No Violations Authorized.

17. Nothing in this Order or the Stipulation shall be construed as allowing the Holding Company,
its Board, officers, or employees to violate any law, rule, or regulation.

IT IS SO ORDERED.

	 	 	 	 	 
	 	OFFICE OF THRIFT SUPERVISION

 	 
	 	By:  	/s/
 	 
	 	 	Daniel T. McKee 	 
	 	 	Regional Director, Central Region 	 
	 
	 	Date: See Effective Date on page 1

 	 
	 	 	 
	 	 	 
	 	 	 
	 

National Consumer Cooperative Bank

Order to Cease and Desist

Page 9 of 9

 

 

 

UNITED STATES OF AMERICA

Before the

OFFICE OF THRIFT SUPERVISION

	 	 	 	 	 	 	 
	 

	 	)	 	 	 
	In the Matter of

	 	 	)	 	 	Order No.: CN 10-08 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	NATIONAL CONSUMER

	 	 	)	 	 	Effective Date: March 15, 2010
	COOPERATIVE BANK

	 	 	)

)	 	 	
	Washington, D.C.

OTS Docket No. H1195

	)

)

)	 	 	 

STIPULATION AND CONSENT TO ISSUANCE OF ORDER TO CEASE AND DESIST 

WHEREAS, the Office of Thrift Supervision (OTS), acting by and through its Regional Director
for the Central Region (Regional Director), and based upon information derived from the exercise of
its regulatory and supervisory responsibilities, has informed National Consumer Cooperative Bank,
Washington, D.C., OTS Docket No. H1195 (Holding Company) that the OTS is of the opinion that
grounds exist to initiate an administrative proceeding against the Holding Company pursuant to 12
U.S.C. § 1818(b);

WHEREAS, the Regional Director, pursuant to delegated authority, is authorized to issue Orders
to Cease and Desist where a savings and loan holding company has consented to the issuance of an
order; and

WHEREAS, the Holding Company desires to cooperate with the OTS to avoid the time and expense
of such administrative cease and desist proceeding by entering into this Stipulation and Consent to
the Issuance of Order to Cease and Desist (Stipulation) and, without admitting or denying that such
grounds exist, but only admitting the statements and conclusions in Paragraphs

National Consumer Cooperative Bank

Stipulation and Consent to Issuance of Order to Cease and Desist

Page 1 of 6

 

 

 

1 — 3 below concerning Jurisdiction, hereby stipulates and agrees to the following terms:

Jurisdiction.

1. The Holding Company is a “savings and loan holding company” within the meaning of 12 U.S.C. §
1813(w)(3) and 12 U.S.C. § 1467a. Accordingly, the Holding Company is a “depository institution
holding company” as that term is defined in 12 U.S.C. § 1813(w)(1).

2. Pursuant to 12 U.S.C. § 1818(b)(9), the “appropriate Federal banking agency” may initiate a
cease and desist proceeding against a savings and loan holding company in the same manner and to
the same extent as a savings association for regulatory violations and unsafe or unsound acts or
practices.

3. Pursuant to 12 U.S.C. § 1813(q), the Director of OTS is the “appropriate Federal banking agency”
with jurisdiction to maintain an administrative enforcement proceeding against a savings and loan
holding company. Therefore, the Holding Company is subject to the authority of the OTS to initiate
and maintain an administrative cease and desist proceeding against it pursuant to 12 U.S.C. §
1818(b).

OTS Findings of Fact.

4. Based on its July 6, 2009 examination of the enterprise consisting of the Holding Company and
the Holding Company’s wholly-owned subsidiary, NCB Financial Corporation, Washington, D.C., OTS
Docket No. H1392, the OTS finds that the Holding Company has engaged in certain unsafe or unsound
practices as described in the OTS Report of Examination dated July 6, 2009 with respect to capital,
earnings, and liquidity in light of its risk profile.

Consent.

5. The Holding Company consents to the issuance by the OTS of the accompanying Order
to Cease and Desist (Order). The Holding Company further agrees to comply with the terms of

National Consumer Cooperative Bank

Stipulation and Consent to Issuance of Order to Cease and Desist

Page 2 of 6

 

 

 

the Order upon the Effective Date of the Order and stipulates that the Order complies with all
requirements of law.

Finality.

6. The Order is issued by the OTS under 12 U.S.C. § 1818(b). Upon the Effective Date, the Order
shall be a final order, effective, and fully enforceable by the OTS under the provisions of 12
U.S.C. § 1818(i).

Waivers.

7. The Holding Company waives the following:

(a) the right to be served with a written notice of the OTS’s charges against it as provided
by 12 U.S.C. § 1818(b) and 12 C.F.R. Part 509;

(b) the right to an administrative hearing of the OTS’s charges as provided by 12 U.S.C. §
1818(b) and 12 C.F.R. Part 509;

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

(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
enforcement matter and/or the Order, whether arising under common law, federal statutes, or
otherwise.

OTS Authority Not Affected. 

8. Nothing in this Stipulation or accompanying Order shall inhibit, estop, bar, or otherwise
prevent the OTS from taking any other action affecting the Holding Company if, at any time, the
OTS deems it appropriate to do so to fulfill the responsibilities placed upon the OTS by law.

National Consumer Cooperative Bank

Stipulation and Consent to Issuance of Order to Cease and Desist

Page 3 of 6

 

 

 

Other Governmental Actions Not Affected.

9. The Holding Company acknowledges and agrees that its consent to the issuance of the Order is
solely for the purpose of resolving the matters addressed herein, consistent with Paragraph 8
above, and does not otherwise release, discharge, compromise, settle, dismiss, resolve, or in any
way affect any actions, charges against, or liability of the Holding Company that arise pursuant to
this action or otherwise, and that may be or have been brought by any governmental entity other
than the OTS.

Miscellaneous.

10. The laws of the United States of America shall govern the construction and validity of this
Stipulation and of the Order.

11. If any provision of this Stipulation and/or the 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.
12. All references to the OTS in this Stipulation and the Order shall also mean any of the OTS’s
predecessors, successors, and assigns.

13. The section and paragraph headings in this Stipulation and the Order are for convenience only
and shall not affect the interpretation of this Stipulation or the Order.

14. The terms of this Stipulation and of the Order represent the final agreement of the parties
with respect to the subject matters thereof, and constitute the sole agreement of the parties with
respect to such subject matters.

15. The Stipulation and Order shall remain in effect until terminated, modified, or suspended in
writing by the OTS, acting through its Regional Director or other authorized representative.

National Consumer Cooperative Bank

Stipulation and Consent to Issuance of Order to Cease and Desist

Page 4 of 6

 

 

 

Signature of Directors/Board Resolution.

16. Each Director signing this Stipulation attests that he or she voted in favor of a Board
Resolution authorizing the consent of the Holding Company to the issuance of the Order and the
execution of the Stipulation. This Stipulation may be executed in counterparts by the directors
after approval of the execution of the Stipulation.

WHEREFORE, the Holding Company, by its directors, executes this Stipulation.

	 	 	 
	 

	 	Accepted by:
	NATIONAL CONSUMER

	 	OFFICE OF THRIFT SUPERVISION
	COOPERATIVE BANK
	 	 
	Washington, D.C.
	 	 

	 	 	 	 	 	 	 
	By:

	 	/s/
	 	By:
	 	/s/
	 

	 	 
	 	 	 	 
	 

	 	Irma Cota, Chairman
	 	 	 	Daniel T. McKee
	 

	 	 	 	 	 	Regional Director, Central Region
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	Date:
	 	See Effective Date on page 1 
	 

	 	Roger B. Collins, Director	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	 	 	 
	 

	 	Peter A. Conrad, Director	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	 	 	 
	 

	 	Steven F. Cunningham, Director	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/
 

	 	 	 	 
	 

	 	Jane Garcia, Director	 	 	 	 

National Consumer Cooperative Bank

Stipulation and Consent to Issuance of Order to Cease and Desist

Page 5 of 6

 

 

 

	 	 	 	 	 
	
	 	/s/
 

	 	 
	 

	 	William F. Hampel, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Janis Herschkowitz, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Alfred A. Plamann, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Kenneth Rivkin, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Stuart M. Saft, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Robynn Shrader, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Walden Swanson, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Nguyen Van Hanh, Director	 	 
	 
	 	 	 	 
	 

	 	/s/
 

	 	 
	 

	 	Judy Ziewacz, Director	 	 

National Consumer Cooperative Bank

Stipulation and Consent to Issuance of Order to Cease and Desist

Page 6 of 6

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