The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
UNITED STATES OF AMERICA BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. Written Agreement by and between ) WILLIAM J. COLLIER 1 An institution affiliated party of Kenco Bancshares, Inc. Jayton, Texas and ) Docket No. 04-019-WA/RB-I2 1 1 ) FEDERAL RESERVE BANK OF DALLAS Dallas, Texas 1 ) WHEREAS, in December 2001, the Federal Reserve Bank of Dallas (“Reserve Bank”), acting under authority delegated by the Board of Governors of the Federal Reserve System (the “Board of Governors”), notified Thomas C. Darden (“Darden”), William J. Collier, and Jesse L. Reese (collectively, the “Control Group”), Robert G. Hall, chairman of the board directors of Kenco Bancshares, Inc., Jayton, Texas (“Kenco”), a registered bank holding company that owns and controls the Kent County State Bank, Jayton, Texas (the “Bank”), and Bob E. Hamilton, a member of the board of directors of Kenco, that the Reserve Bank did not intend to disapprove the Control Group’s proposed acquisition of Kenco pursuant to the Change in Bank Control Act (12 U.S.C. 18176)) subject to several commitments made by Darden, including a commitment that Darden not be appointed as a director, officer, employee or have any other duties or responsibilities with respect to Kenco without the prior approval of the Reserve Bank (the “Commitment”); WHEREAS, in 2002, in violation of the Commitment, Darden was an employee, agent, or had other duties and responsibilities with respect to the sale of Kenco bonds; WHEREAS, in January 2004, in violation of the Commitment, Darden was elected as a director of Kenco; WHEREAS, William J. Collier, as a director of Kenco, engaged in unsafe and unsound practices by failing to ensure that Darden comply with the Commitment and by failing to inform the Reserve Bank that Darden had violated the Commitment; WHEREAS, William J. Collier is an institution-aftiliated party, as defined in sections 3(u) and 8(b)(3) ofthe Federal Deposit Insurance Act, as amended (12 U.S.C. 1813(u) and 1818(b)(3)) (the “FDI Act”), of Kenco, and; WHEREAS,on &cr /I ,2004, William J. Collier agreed to enter into this Agreement, and consenting to compliance with each and every provision of this Agreement; NOW, THEREFORE, William J. Collier and the Reserve Bank agree as follows: Compliance with the Commitment 1. Collier shall take any action as necessary to (a) ensure that Darden complies with the Commitment, and (b) immediately notify the Reserve Bank in writing any time any action is taken by Darden regarding the Commitment. Communications 2. All communications regarding this Agreement shall be sent to: (a) Mr. W. Arthur Tribble Vice President Federal Reserve Bank of Dallas P.O. Box 655906 Dallas. Texas 75265 ..’. (b) Mr. William J. Collier P.O. Box 7 Post. Texas 79356 Miscellaneous 3. Each provision of this Agreement shall remain effective and enforceable until stayed, modified, terminated or suspended by the Reserve Bank. 4. The provisions of this Agreement shall not bar, estop or otherwise prevent the Bovd of Governors, the Reserve Bank,or any other federal or state agency or department from taking any other action affecting Kenco, Kent County State Bank, or any of their current or former institution-affiliatedparties. 5. This Agreement is a ‘’written agreement” for the purposes of, and is enforceable by the Board of Governors as an order issued under, section 8 of the FDI Act (12 U.S.C. 1818). M WITNESS WHEREOF, the parties have caused this Agreement to be executed as of theDlayof October ,2004. Federal Reserve Bank of Dallas William J. Collier By: - &/k 3