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UNITED

STATES OF AMERICA

BEFORE THE BOARD OF GOVERNORS

OF THE FEDERAL RESEdVE SYSTEM

WASHINGTON,

In the Matter of
B.O.T. Corporation, N.V.
Curacao, Netherlands Antilles

D.C.

Docket No. 98-028-B-HC
98-028-CMP-HC
Order issued Upon Consent
Pursuant to the Federal
Deposit Insurance Act, as
Amended

j
)
;

_-------------------------~-~---

1

WHEREAS, pursuant
Federal
USC.

Deposit

Insurance

Sec. 1818

to

sections

Act,

as

1847 (b) ), the
(the

“Board

respect

of

of

Notice
and

BOT and

of

this

Act”)

(12

Bank Holding
Section

Federal Reserve System
Order

N.V.,

Corporation,

4,

1998,

and

Charges

Notice of Preliminary

violation

more

of the

than

(the “Order”) with

a Netherlands

of

California,

“Bank”)

controlling

and

influence over the

Board

Assessment

Determination
alleging

BHC Act as a result

a state-chartered,
the

management

2 of the

the

25 percent of the voting

Los Angeles,

in Section

“FDI

8 (bi of the

the

James T. Riady (the “Notice”),

a continuing

acquiring

(the

Antilles

(“BOT”);

a

Penat&

of

issues

WHEREAS, on November
issued

and 8 (i) of the

(the “BHC Act”) (12 USC.

Governors

Governors”)
B.O.T.

to

Corporation

Board

(b)

amended

(b) and (i), and section

Company Act of 1956, as amended

8

BHC Act (12

Bank

of Civil Money

of Control

against

the occurrence

of

of BOT indirectly

shares of Lippo Bank,

non-member

by exercising

or policies

of Governors

of the

a

bank

(the

controlling

Bank, as

defined

U.S.C. Sec. 1841 (a) (2) (C) );

WHEREAS, BOT and
foregoing

allegations

and

James T. Riady deny

deny

that

and &dispute

BOT ever directly

or

the

indirectly

h

acquired

any

voting

had the

power to

securities

of

exercise,

a

management

or policies

dispute

there is a continuing

that

WHEREAS,
the Notice, and
deny

BOT,

by

controlling

of the BHC Act;

Order resolves

the proceeding

executing

appropriate
to enter

the issuance

of this

over

the

initiated

by

admit

or

to any allegations

or

this Order,
with

does not

respect

1999,

resolutions

into this Order
Order by the

compliance

with each

to

a

purpose

or

itself or James T. Riady;

undersigned

accept

influence

violation

WHEREAS, on m___,
BOT adopted

Bank, or eveh exercised,

Bank, as defined above, and deny and

or liability

any wrongdoing

claims concerning

of the

this

the

of funding

authorizing
on behalf

contribution

the monetary

of directors

its

obligation

the

of BOT to consent
and

that. pertains

from

of

and directing

Board of Governors

and every provision

capital

the board

to

to

to

BOT’s ,

BOT, and

shareholders

the

for

of BOT as stated

in

this

Order;

WHEREAS, BOT waives
U.S.C. Sec.

1818,

hearing

the

matter

for

implied

review of this
basis,

12

purpose
or set

Order,

issuance,

enforceability

or

C.F.R.

any

Part

of takitlg

forth

in this

(c) to challenge
validity,

and

all rights

pursuant

263, or otherwise:

evidence
Order;

(b) to obtain

effectiveness,

of this Order or any provision hereo.f;

12

(a) to

with respect

or contest

to

to

any

judicial

in any manner
collectibility

a

the
or

NOW, THEREFORE, before
adjudication
above

of,

or

identified

admission

of

Governors

in

purpose

finding

proceeding
any

on

of settlement

taking

made

with

of this

this

BOT

acceptable
least

written

this

98

minimum,

shall submit

percent

of the
third

proceeding

ensure

term of this

until

in

the

constituting

by the
and

an

Board

solely

sections

progress

the divestiture

2.
violation

of

for

the

8 (b) and

8

of

Governors

Order

under

an

which

shares of the Bank are divested
The

written

the

and state

it without

the

plan

provisions

shall,

of the

laws by BOT.

fully

with the

prior

BOT shall furnish

written

the

at

During

the

plan and
approval

the date

a

BHC Act

shall

of the

Board of Governors

every 90 days from

of this

with
Order

is complete.

BOT shall

of the

voting

BOT shall comply

reports

Board

300 days of this

federal

rescind

Board of Governors.
written

to

the

full compliance with

Order,

amend or

to

parties.

and all other applicable

not

Order

of,

proceeding;

plan within

independent

to

testimony

FDI Act and 8 (b) of the BHC Act:

1.

at

any

or implied

IT IS HEREBY ORDERED, pursuant
(i) of the

of

any issue of fact or& law

and without

allegation

connection

the

not,

directly

or

indirectly,

engage

in any

BHC Act.

3.

BOT shall

pay a civil

4.

BOT shall also

money

penalty in the amount

of

$ 300,000.

profit,
the

which
sale

ordinary

means the

of
course,

the

amount,

Bank,

exceed

less

pay

as

a, civil

money

penalty

if any, by which the proceeds
the

$ 30 million.

costs

of

sale

incurred

in

any
from
the

5.
to this

The civil money

Order

shall be sent

Board of Governors
the United

until

make

to be paid pursuant

to

the

remittance

account

of the

to the Treasury of

by statute.

of this

stayed,

Order

modified,

shall

remain

terminated

effective

or suspended

by

Board of Governors.

7.

For purposes

delegates

to

approvals

required-

provisions

of this

otherwise
state

Order,

General

Counsel

the

by

Board

the

ownership

of

the

Board of Governors

authority

Governors

to

grant

the

to

the

pursuant

Order.

prevent

agency

Governors

the

of this

The provisions

8.

the

shall

Each provision

and enforceable

agreed

by wire transfer

States as required

6.

the

which

penalty

the

Order

Board of Governors

or department
of

of this

from

the Bank,

shall not take

taking

any other

provided,

however,

any further

action

against

presently

Governors

addressed

By order

the

of the

System, this GlI’_’ day of

matters

--__,

federal

or
or

action regarding
the

Board

of

BOT or James T.

known to

the

Board

of

in this proceeding.

Board of Governors of the
_a%__

bar, estop

or any other

Riady based upon any information
concerning

shall not

Federal

Reserve

1999.

w‘r
B.O.T.

Corporation,

N.V.

Board of Governors of the
Federal

w.

JT;ertif.y.yA-

By: _____--_-------------Canesh Grover, Attorney

Reserve System

in Fact
Secretary of the Board