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For immediate release
April 4, 1997
The Federal Reserve Board today announced the issuance
of a Cease and Desist Order against United Security
Bancorporation, Lincoln, Nebraska, and Harold S. Myers, and
David C. Myers, both officers and directors of United.
A copy of the Cease and Desist Order is attached.
Attachment
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS
OF
THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
In the Matter of
UNITED SECURITY BANCORPORATION
Lincoln, Nebraska
1
1
HAROLD S. MYERS
;
and
;
DAVID C. MYERS
;
)
)
Institution-Affiliated Parties of
United Security Bancorporation
Lincoln, Nebraska
Docket Nos. 94-031-B-HC
94-031-B-11
94-031-B-12
Cease and Desist Order
Issued Upon Consent
Pursuant to the Federal
Deposit Insurance Act
as Amended
)
)
WHEREAS, United Security Bancorporation,
Nebraska
Lincoln,
("Unitedl'),United and Harold S. Myers and David C.
Myers, officers and directors of United, and the Board of
Governors of the Federal Reserve System
(the "Board of
Governors"), have mutually agreed to enter into this consent
Cease and Desist Order
desist proceeding
(the "Order") in settlement of a cease and
(the "Proceeding");
WHEREAS, as of the date of this Order, United owns and
controls the Security National Bank of Superior, Superior,
Nebraska
(the "Bank"); and
.TLf 1996, the board of directors
WHEREAS, on November;~L,
of United adopted a resolution
&/i[Q~_n 2.
Iilxtsej
(1) authorizing and directing
to enter into this Order on behalf of United and
consenting to compliance by the board of directors of United and
its institution-affiliated
parties, as defined in sections 3(u)
and S(b) (3) of the Federal Deposit Insurance Act, as amended
(12
U.S.C. 1813(u) and 1818(b) (3)), with each and every provision of
this Order;
(2) waiving any and all rights to a further hearing
for the purpose of taking evidence on any matter set forth in the
Proceeding and this Order;
(3) waiving any and all rights to
contest the issuance of this Order order by the Board of
Governors pursuant to 12 U.S.C. 1818 and 12
C.F.R.
Part 263; (4)
waiving any and all rights to judicial review of this Order;
(5)
waiving any and all rights to challenge or contest, in any
manner, the basis, issuance, validity,
enforceability
terms, effectiveness or
of this Order or any provision hereof; and (6)
waiving any and all rights to seek or receive an award for fees
and payments under the Equal Access to Justice Act (5 U.S.C. 504)
or any other statute in connection with this proceeding; and on
November'2
1996, by affixing their signatures hereunder, Harold
S. Myers and David C!.Myers agree to the foregoing in their
individual capacities;
NOW, THEREFORE, before the taking of any additional
testimony or adjudication or finding on any issue of fact or law
herein, and without this Order constituting an admission of any
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allegation made or implied by the Board of Governors in
connection with this Proceeding, and solely for the purpose of
settlement of this Proceeding pursuant to the aforesaid
resolution:
IT IS HEREBY ORDERED, that United and its institutionaffiliated parties, and Harold S. Myers and David C. Myers, in
their individual capacities, cease and desist and take
affirmative action as follows:
1.
United shall not pay any fees, salaries or bonuses
or make any other payments of any nature to Harold S. Myers,
David C. Myers, or any of their immediate family
(as defined in
section 215.2(g) of Regulation 0 of the Board of Governors
("Regulation ON), 12 C.F.R. 215(g)) or their related interests
(as defined in section 215.2(n) of Regulation 0, 12 C.F.R.
215(n)), without the prior written approval of the Federal
Reserve Bank of Kansas City (the "Reserve Bank") at any time that
the Bank is not "adequately capitalized," as defined in
sections 6.4(b) (2) (i), (ii), and (iii) of the Prompt Corrective
Action Regulations of the Comptroller of the Currency
(12 C.F.R.
6.4(b) (2) (i), (ii), and (iii)).
2.
Any request for prior approval to pay any fees,
salaries or bonuses or make any other payments to Harold S. Myers
and David C. Myers pursuant to paragraph 1 hereof shall be
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accompanied by documentation adequate to provide the ReseIve Bank
with the details of each payment proposed to be paid by United
and a description of the benefits proposed to be derived by the
payment, the type of services rendered, and the identity of the
person or persons who will supply the services or advice covered
by the proposed payment.
3.
Harold S. Myers and David C. Myers shall take such
actions as are necessary to ensure compliance by United with each
provision of this Order.
4.
At any time after the effective date of this
Order, United, Harold S. Myers or David C. Myers may request in
writing that the Board suspend, terminate or set aside this
Order.
The Board shall not unreasonably withhold its approval of
such a request.
5.
All communications
regarding this Order shall be
sent to:
(a)
Mr. James H. Jonson
Vice President
Federal Reserve Bank of Kansas City
925 Grand Boulevard
Kansas City, Missouri
64198
(b)
Mr. Harold S. Myers, President
United Security Bancorporation
635 South 14th. Suite 320
Lincoln, Nebraska
68508
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-.
6.
(c)
Mr. Harold S. Myers
c/o United Security Bancorporation
635 South 14th, Suite 320
Lincoln, Nebraska
68508
(d)
Mr. David C. Myers
c/o United Security Bancorporation
635 South 14th. Suite 320
Lincoln, Nebraska
68508
The provisions of this Order shall be binding upon
United and each of its institution-affiliated
parties in their
capacities as such, and their successors and assigns, and upon
Harold S. Myers and David C. Myers, in their individual
capacities.
7.
Each provision of this Order shall remain
effective and enforceable until stayed, modified, terminated or
suspended by the Board of Governors.
8.
The provisions of this Order shall not bar, estop
or otherwise prevent the Board of Governors, or any federal or
state agency or department, from taking any other action
affecting United, Harold S. Myers, David C. Myers, or any of the
current or former institution-affiliated
parties of United, or
their successors or assigns; provided, however, the Board of
Governors shall not take any further enforcement action against
United, Harold S. Myers, or David C. Myers based upon any
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information presently known to the Board of Governors concerning
matters that were the subject of the Proceeding.
By order of the Board of GovernorgLiTe:eBfi$,
Reserve System, effective this &day
United Security Bancorporation
Lincoln, Nebraska
of T
1996.
Board of Governors of the
Federal Reserve System
By:
William W. Wiles
Secretary of the Board
The undersigned directors of United acknowledge that
each has read the foregoing Order and approve of the consent
thereto by United.
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