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LWITED STATES OF AMERICA
BEFORE
THE BOARD OF GOVEWTORSOF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
In the Matter of
1
FRANK FRENCH
)
A Forrner Institution-Affiliated Party
of Montana State Bank
Plentywood, Montana
1
Docket Nos. 05-024-B-I
05-024-CMP-I
Order to Cease and Desist and Order
of Assessment of a Civil Money Penalty
Issued Upon Consent Pursuant to the
Federal Deposit Insurance Act, as Amended
WHEREAS, pursuant to sections 8(b) and (i) of the Federal Deposit Insurance Act, as
amended (12 U.S.C.
$9 1818(b) and (i)) (the "FDI Act")), the Board of Governors of the Federal
Reserve System (the "Board of Governors") issues this Cease and Desist Order (the "Order.") and
Order of Assessment of a Civil Money Penalty against Frank French ("French"), a former
institution-affiliated party, as defined in section 3(u) of the FDI ~ c t ' ( 1 2U.S.C.
5 1813(u)), of
the Montana State Bank, Plentyvood, Montana ("the Bank"), a state member bank, based on
French's alleged violations of Board of Governors' Regulation 0 , 12 C.F.R. Part 215
("Regulation 0");
WHEREAS, by affixing his signature hereunder, French has consented to the issuance of
this Order by the Board of Governors and to comply with each provision of this Order, and has
waivedl any and all rights that he may have pursuant to section 8 of the FDI Act (12 U.S.C.
5
1818) or 12 C.F.R. Part 263, or otherwise, to: (i) the issuance of a notice of charges and of
hearing and a notice of assessment of civil money penalty; (ii) a hearing for the purpose of taking
evidence on any matter set forth in this Order; (iii) to seek judicial review of this Order or any
provision hereof; and (iv) to challenge or contest, in any manner, the basis, issuance, validity,
terms, effectiveness or enforceability of this Order or any provision hereof.
NOW, THEREFORE, before the filing of any notice, or taking of any testimony or
adjudication of or finding on any issue of fact or law herein, and without this Order constituting
an admission or denial by French of any allegation made or implied by the Board of Governors
in connection with this matter, and solely for the purposes of settling this matter without a formal
proceeding being filed and without the necessity for protracted or extended hearings or
testimony,
IT IS -HEREBY ORDERED, pursuant to sections 8(b) and (i) of the FDI Act, that:
1: French shall not violate Regulation 0 , 12 C.F.R. Part 2 15, or any other regulation
that incorporates by reference all or substantially all of Regulation 0 , including, but not limited
to, 12 (2.F.R: 5 337.3 and 12 C.F.R. fj 563.43, or any superseding regulation. In the event that
French,becomes an institution-affiliated party of an insured depository institution, as that term is
defined in 12.U.S.C. 5 1813(c), French shall not serve as a loan officer for, or otherwise approve
or participate in, an extension of credit, as defined in 12 C.F.R. 5 215.3, to:
(a) himself;
(b) any of his family members (whether or not the person is an immediate
family member as defined in 12 C.F.R.
5 215.2(g)); or
(c) any related interest of the foregoing (as that tern is defined in 12 C.F.R.
5 215.2(n))
unless he obtains a prior, written legal opinion that the loan complies with Regulation 0, or any
other regulation that incorporates by reference all or substantially all of Regulation 0 , as listed
above.
2. French shall forfeit and pay a civil money penalty in the amount of $10,000.
3. The civil money penalty assessed in this Order shall be remitted in full at the time
of French's execution of this Order by bank certified check or cashiers check made payable to
the "Board of Governors of the Federal Reserve System" and f~mvardedwjth an executed copy
of this Order to Jennifer J. Johnson, Secretary of the Board, Board of Governors of the Federal
Reserve System, Washington, D.C., 20551, which penalty the Board of Governors shall reinit to
the United Sates Treasury as required by statute.
4. No portion of the civil money penalty paid by ~ r e n c phursuant to this Order shall
be, directly or indirectly, paid, advanced, reimbursed or otherwise funded by the Bank.
5. This Order, and each and every provision hereof, is and shall remain fully
effective and enforceable until expressly stayed; modified, terminated or suspended in writing by
the Board of Governors.
6. The provisions of this Order shall not bar, estop or otherwise prevent the Board of
G~~-.-.,-u ~ , , " ~tjit;.
~ ,Fe3cral Reserve Bards of Ivlimi:apo!is, or any other federa! or statc; ageficy oi
department from taking any other action affecting French, provided, however, that the Board of
Goveniors shall not take any further action against French based upon any information presently
known to the Board of Governors concerning the matters addressed in this Order, other than an
action to enforce the provisions of this Order.
7. All communications regarding this Order shall be sent to:
(a) Mr. Richard M. Ashton
Deputy General Counsel
Board of Governors of the
Federal Reserve System
2othand C Streets, N.W.
Washington, DC 2055 1
(b) Mr. Frederick L. Miller
Vice President
Division of Supervision, Regu.lation,and Credit
Federei Reserve Bank of Minneapolis
90 Hennepin Avenue, P.O. Box 29 1
Minneapolis, MN 55480-029 1
(c) Mr. Frank French
62 1 West Laurel Avenue
Plentywood, MT 59254
t+-\
By order.of the Board of Governors effective this c23 day of
;p+
2005
Board of Governors of the
Federal Reserve System
-
By:
Frank French
//
Jennifer J. bhns&
r/
,'y
Secretary of the Board