Stipulation and Consent to Issuance of Cease and Desist Order by FDIC and North Carolina Commissioner of Banks with Cooperative Bank
This agreement is between the Federal Deposit Insurance Corporation (FDIC), the North Carolina Commissioner of Banks, and Cooperative Bank of Wilmington, North Carolina. The Bank agrees, without admitting or denying any wrongdoing, to the issuance of a cease and desist order regarding alleged unsafe or unsound banking practices. The Bank waives its rights to a hearing and other procedural defenses. The order becomes effective immediately upon issuance and is enforceable by the FDIC and the Commissioner if the Bank or its affiliates violate its terms.
Exhibit 10.1
Exhibit 10.1
FEDERAL DEPOSIT INSURANCE CORPORATION
WASHINGTON, D.C.
)
In the Matter of )
) STIPULATION AND CONSENT TO THE
COOPERATIVE BANK ) ISSUANCE OF AN ORDER TO
WILMINGTON, NORTH CAROLINA ) CEASE AND DESIST
)
(Insured State Nonmember Bank) ) FDIC-09-053b
)
Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST (“CONSENT AGREEMENT”) by the Federal Deposit Insurance Corporation (“FDIC”), it is hereby stipulated and agreed by and between a representative of the Legal Division of the FDIC, the North Carolina Commissioner of Banks (the “Commissioner”), and COOPERATIVE BANK, Wilmington, North Carolina (“Bank”), through its board of directors, as follows.
1. The Bank has been advised of its right to receive a written Notice of Charges and of Hearing (“Notice”) detailing the unsafe or unsound banking practices and violations of law and/or regulations alleged to have been committed by the Bank and of its right to a hearing on the alleged charges under section 8(b)(l) of the Federal Deposit Insurance Act (“Act”), 12 U.S.C. § 1818(b)(l), and the FDIC’s Rules of Practice and Procedure (“Rules”), 12 C.F.R. Part 308, and has waived those rights.
2. The Bank, solely for the purpose of this proceeding and without admitting or denying any of the alleged charges of unsafe or unsound banking practices and any violations of law, rules, and/or regulations, hereby consents and agrees to the issuance of an ORDER TO CEASE AND DESIST (“ORDER”) by the FDIC and the Commissioner in the form attached hereto. The Bank further stipulates and agrees that such ORDER shall become immediately
upon its issuance by the FDIC and the Commissioner and be fully enforceable by the FDIC pursuant to the provisions of section 8(i)(l) of the Act, 12 U.S.C. § 1818(i)(l), and the Rules, and by the Commissioner subject only to the conditions set forth in paragraph 3 of this CONSENT AGREEMENT.
3. In the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, it is agreed that no action to enforce said ORDER in the United States District Court will be taken by the FDIC unless the Bank or any “institution-affiliated party”, as such term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), has violated or is about to violate any provision of the ORDER.
4. The Bank hereby waives:
| (a) |
| the receipt of a written Notice; |
| (b) |
| all defenses to the charges to be set forth in the Notice; |
| (c) |
| a hearing for the purpose of taking evidence regarding the allegations to be set forth in the Notice; |
| (d) |
| the filing of Proposed Findings of Fact and Conclusions of Law; |
| (e) |
| a Recommended Decision of an Administrative Law Judge; and |
| (f) |
| exceptions and briefs with respect to such Recommended Decision. |
Dated: March 10, 2009
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FEDERAL DEPOSIT INSURANCE CORPORATION LEGAL DIVISION
BY: /s/ J. Michael Payne
J. Michael Payne Counsel
NORTH CAROLINA COMMISSIONER OF BANKS
BY: /s/ Joseph A. Smith
Joseph A. Smith, Jr. Commissioner of Banks State of North Carolina
COOPERATIVE BANK WILMINGTON, NORTH CAROLINA
BY: /s/ F. Peter Fensel
F. Peter Fensel, Jr.
/s/ James D. Hundley
James D. Hundley, MD
/s/ H. Thompson King, III
H. Thompson King, III
/s/ R. Allen Rippy
R. Allen Rippy
(continued on next page)
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|
/s/ Frederick Willets, III
Frederick Willets, III
/s/ O. Richard Wright, Jr.
O. Richard Wright, Jr.
THE BOARD OF DIRECTORS
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