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For immediate release
June 30, 1997
The Federal Reserve Board today announced the issuance
of a Cease and Desist Order against the Zia New Mexico Bank,
Tucumcari, New Mexico, and G.A. Poling, Jr., president of the
bank.
A copy of the 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
ZIA NEW MEXICO BANK
Tucumcari, New Mexico
)
i
and
)
G.A. POLING, JR.
i
An Institution-Affiliated
Party of
ZIA NEW MEXICO BANK
Tucumcari, New Mexico
;
Docket Nos. 9?-013-B-SM
97-013-B-I
and Desist Order
Issued Upon Consent
Pursuant to the Federal
Deposit Insurance Act,
as Amended
Cease
i
WHEREAS, the Board of Governors of the Federal Reserve
System
(the "Board of Governors") believes that the Zia New
Mexico Bank, Tucumcari, New Mexico
(the "Bank"), a State-
chartered bank that is a member of the Federal Reserve System,
and G.A. ‘Poling, Jr. (l'Poling"),president of the Bank, have
engaged in, are engaging in and, unless restrained, will continue
to engage in unsafe or unsound practices and violations of laws
and regulations in conducting the business of the Bank and that
Poling has engaged in and, unless restrained, will continue to
engage in breaches of his fiduciary duty to the Bank; and
WHEREAS, on
, 1997,
June 19
directors of the Bank adopted a resolution:
directing
G.A. Poling. Jr.
..?board of
(1) authorizing and
to enter into this Order on
behalf of the Bank and consenting to compliance with each and
every provision of this Order by the Bank and its institutionaffiliated parties, as defined in Section 3(u) of the Federal
Deposit Insurance Act, as amended
1813(u));
(the "FDI Act")
(12 U.S.C.
(2) waiving any and all rights to contest the issuance
of this Order by the Board of Governors pursuant to 12 U.S.C.
1818 and 12 C.F.R. Part 263; (3) waiving the issuance of a notice
of charges and of hearing on any matter set forth in this Order;
(4) waiving a hearing for the purpose of taking evidence on any
matter set forth in this Order;
(5) waiving any and all rights to
judicial review of this Order; and (6) waiving any and all rights
to challenge or contest, in any manner, the basis, issuance,
validity, terms, effectiveness or enforceability of this Order or
any provision hereof; and, on
lr1ne19
,
1997,
Poling, by affixing his signature hereunder, agreed to the
foregoing in his individual capacity with respect to
paragraphs 2, 4(d) (ii), and I7 through 21 hereof.
NOW, THEREFORE, before the taking of any testimony or
adjudication of, or finding on, any issue of fact or law herein,
and without this Order constituting an admission of any
allegation made or implied by the Board of Governors in
connection with this proceeding, and solely for the purpose of
settlement of this proceeding without protracted or extended
hearings or testimony and pursuant to the aforesaid resolution:
2
IT IS HEREBY ORDERED that the Bank and its institutionaffiliated parties and Poling cease and desist and take
affirmative action as follows:
Dividends
1.
The Bank shall not declare or pay any dividends,
or make any other form of payment representing a reduction of the
Bank's capital account, without the prior written approval of the
Federal Reserve Bank of Dallas
(the "Reserve Bank") and the
Director of the Division of Banking Supervision and Regulation of
the Board of Governors.
All requests for prior approval shall be
received at least 30 days prior to the proposed dividend
declaration date and shall include, but not be limited to,
information on the amount proposed to be paid, Bank earnings and
capital levels for the most recent annual period and the fiscal
year to date, and an analysis of the proposed dividend in light
of the Board of Governors's Policy Statement on the Payment of
Cash Dividends by State Member Banks and Bank Holding Companies,
dated November 14, 1985.
Restrictions on Polinq
2.
(a)
(i)
Poling shall not, directly or
indirectly, or through aggregating his lending authority with the
authority of any other officer of the Bank, extend any loan in
excess of $20,000, or extend any loan outside of the limits and
guidelines established by the board of directors pursuant to
paragraph 5 of this Order, without the prior written approval of
3
a majority, but not less than four members of the board of
directors of the Bank, with Poling abstaining from voting on any
such loan.
The approval of the board of directors shall be noted
in the minutes.
(b)
Poling shall not incur any travel expense on
behalf of the Bank exceeding $500 or that aggregates in excess of
$2,000 per calendar quarter without the prior written approval of
the board of directors of the Bank, such approval to be noted in
the minutes.
Poling shall submit to the board of directors for
its review detailed expense statements and receipts for any Bankrelated expenses for which he seeks reimbursement,
in accordance
with the policies and procedures adopted by the board of
directors pursuant to paragraph 4(e) of this Order, whether or
not such expenses have been approved in advance by the board of
directors pursuant to this paragraph 2(b).
Cc)
Poling shall not, directly or indirectly,
enter into, participate or in any other manner engage in any
transaction with the Bank not in the ordinary course of the
business of the Bank
(such as deposits into personal accounts,
salary payments, loans made in compliance with Regulation 0 of
the Board of Governors and the like), including but not limited
to, the purchase from or the sale to the Bank of any asset,
without the prior review of the Reserve Bank pursuant to
paragraph 9 of this Order, provided, however, that
4
this paragraph 2(c) shall not preclude Poling from conducting
business on behalf of the Bank consistent with the restrictions
and limitations set forth in this Order.
Cauital Plan
3.
(a)
Within 60 days of this Order, the Bank shall
submit to the Reserve Bank an acceptable, written plan to
achieve, and, thereafter maintain, a satisfactory capital
position.
The plan shall include projections for the remainder
of the 1997 fiscal year, as well as for the 1998 and 1999 fiscal
years, and, at a minimum, address and consider:
(i)
The Bank's current and future capital
requirements, including compliance with the Capital Adequacy
Guidelines of the Board of Governors for State Member Banks:
Risk Based Measures and the Tier 1 Leverage Measure
(12 C.F.R.
Part 208, App. A and B) and Section 38 of the FDI Act
112 U.S.C.
18310);
(ii)
recent increases in the volume of the
Bank's adversely classified assets and plans to reduce these
classifications,
as well as the potential for additional asset
quality problems at the Bank;
(iii) anticipated growth or shrinkage of the
Bank's assets and the effect on the Bank's capital ratios;
5
(iv)
the Bank's anticipated levels of
retained earnings; and
(v)
the sources and timing of additional
capitalization.
(b)
The Bank shall notify the Reserve Bank, in
writing, within ten business days of the end of any calendar
quarter if the Bank's tier 1 leverage or tier 1 risk-based
capital ratio falls below 4 percent, or its total risk-based
capital ratio falls below 8 percent and shall submit to the
Reserve Bank an acceptable written plan that details the steps
the Bank will take to bring the capital ratio(s) to minimum
percentages within 30 days of the end of the calendar quarter.
Board Oversisht and Resoonsibilities
4.
(a)
Within 60 days of this Order, the board of
directors of the Bank shall submit to the Reserve Bank an
acceptable written plan to implement adequate board oversight
over management.
The plan shall describe, at a minimum, the
procedures and management information reports that the board of
directors intends to put into place in order to maintain
effective control over and supervision of the Bank's senior
management and the operations and activities of the Bank
including, at a minimum:
(i) the Bank's capital and earnings;
(ii) its compliance with laws, regulations and the Bank's
policies and procedures;
(iii) its internal controls and
6
recordkeeping procedures; and (iv) its controls over the lending
function, including:
(A) monitoring exceptions to board-approved
loan policy;(B) reviewing the Bank's watch-list; and (C)
maintaining an adequate reserve for loan losses.
(b)
The board of directors of the Bank shall take
appropriate steps to increase the number of outside directors to
at least a majority of the board of directors and shall report
quarterly to the Reserve Bank on the Bank's efforts in securing
new outside directors.
For purposes of this Order, the term
"outside director" shall be defined as an individual who
(A) is
not an employee, officer or agent of the Bank or any affiliate of
the Bank,
(B) does not own more than 10 percent of the
outstanding voting stock of the Bank or any affiliate, or
(C) is not related in any manner, by blood or marriage, to any
shareholder who owns more than 10 percent of the outstanding
voting stock of the Bank.
The term "affiliate" shall be defined
as set forth in Section 23A(b) (1) of the Federal Reserve Act
(12
U.S.C. 371c(b) (1)).
(c)
(i)
Within 60 days of this Order, a
committee of the Bank's board of directors, of which the outside
directors of the Bank shall comprise a majority, shall conduct a
review of the functions and performance of Poling and shall
forward to the Reserve Bank its written findings and conclusions,
along with a written description of any management changes that
may be proposed as a result of the review.
7
The review shall take
into account the restrictions imposed on the activities of Poling
under paragraph 2 of this Order.
(ii)
Within 90 days of this Order, the
committee shall conduct a review of the functions and performance
of the other officers of the Bank and shall forward to the
Reserve Bank its written findings and conclusions, along with a
written description of any management changes that may be
proposed as a result of the review.
(iii) The reviews conducted pursuant to this
paragraph 4(c) shall focus on an assessment of the duties
performed by each officer and the ability of that individual to
perform adequately his or her assigned duties.
The primary
purpose of these reviews shall be to aid in the development of a
management structure suitable to the Bank's needs that is
adequately staffed by qualified and trained personnel.
(d)
(i)
Within 30 days of this Order, the board
of directors shall submit to the Reserve Bank an acceptable
written report on the expenses of Poling for the period from
January 1, 1996 through the date of this Order.
shall include at a minimum:
Such report
(A) a list of all bank credit card
charges incurred by Poling, the date(s) incurred, and the purpose
of the expense;
(B) a list of all bank credit card cash advances
received by Poling, the date(s) received, the purpose of the
advance, and the ultimate use of the funds; (C) a list of all of
8
Poling's bank travel expense checks, any other bank expense
checks made payable to Poling, or any other cash provided to
Poling for travel or other expenses, the date(s) of the checks or
disbursements of funds, the purpose of the funds, and the
ultimate use of the funds; and (D) documentation to substantiate
Poling's expenses.
(ii)
For the period from January 1, 1996
through the date of this Order, the Bank shall submit to the
Reserve Bank an explanation of the destination and purpose of any
travel expenses and the purpose of all other expenses in excess
of $250, which may include written documentation
from Poling.
Poling shall reimburse the Bank for any expenses not supported by
that explanation.
The Bank shall not, directly or indirectly,
fund or in any manner assist Poling with respect to any
reimbursement required pursuant to this Order through an
extension of credit, an increase in base salary, bonus, or fee
payment, ‘or any other payment of funds to or on behalf of Poling,
or any of his family members or related interests.
(iii) For purposes of this Order, the terms:
iA) "family member" shall include a person's parents, spouse,
siblings, children, the spouse of a parent, sibling or child and
the sibling of a parent; and (B) "related interest" shall be as
defined in Section 215.2(n) of Regulation 0 of the Board of
Governors
(12 C.F.R. 215.2(n)).
9
(e)
Within 30 days of this Order, the Bank shal
submit to the Reserve Bank acceptable written policies and
procedures for the payment or reimbursement of Bank-related
expenses of any amount, including but not limited to,
requirements for the submission of written expense reports and
receipts.
The Bank shall not reimburse Poling for any expenses
incurred by him unless and until he has provided~a written
expense report that meets the requirements of the policies and
procedures adopted pursuant to this paragraph 4(e).
(f)
During the term of this Order or as otherwise
required by law, the Bank shall comply with the provisions of
Section 32 of the FDI Act
(12 U.S.C. 1831i) and Subpart H of
Regulation Y of the Board of Governors
(12 C.F.R. Part 225,
Subpart H), with respect to the appointment of any new directors
or the hiring or promotion of any senior officers.
Lendins Ooerations
5.
Within 60 days of this Order, the Bank shall
submit to the Reserve Bank acceptable amended written loan
policies and procedures consistent with the Interagency
Guidelines Establishing Standards for Safety and Soundness,
12 C.F.R. Part 208, Appendix D (the "Safety and Soundness
Guidelines").
The policy and procedures shall include, but not
be limited to, the following:
10
(a)
Charge-off procedures for loans and
(b)
guidelines for the identification of
overdrafts;
problem assets and placing loans on and removing loans from
nonaccrual:
(c)
guidelines and controls for out-of-
(d)
guidelines under which unsecured loans
(e)
real estate loan foreclosure procedures;
(f)
guidelines for the distribution of loans
territory lending;
will be granted;
in commercial, real estate, and i,nstallment categories;
(g)
guidelines to limit environmental
(h)
guidelines on the loan-to-value ratios
liability;
for various categories of loans and collateral;
(i)
requirements for collateral inspections;
11
(j)
guidelines for the perfection of liens
and the release of collateral;
(k)
guidelines for extending payments and
maturities on past due loans;
standards for obtaining current
(1)
financial statements and updating financial information and
appraisals on a regular, periodic basis;
Cm)
standards for determining when audited
financial statements of a borrower are required;
(n)
an amended floor plan policy
establishing the maximum age of automobiles and boats that will
be eligible for floor plan financing; and
Co)
procedures for annual review and
revisions, as necessary, of the Bank's loan policies and
procedures.
SBA Prosram
6.
(a)
Within 30 days of this Order, the Bank shall
conduct a comprehensive profitability
participation
analysis of its
in the Small Business Administration
securitization program
a.;set
(the "SBA Program"), which shall take into
account, among other things, a breakdown of fee, interest and
12
other income received, overhead expense incurred, including
facilities
(i.e., rent, telephone and other utilities),
commissions, labor, marketing, travel and training expenses, the
Bank's cost of funds and the historical loss, if any, in
connection with the SEA Program, and shall forward to the Reserve
Bank its analysis along with a written description of any changes
in the Bank's participation
in the SEA Program that may be
proposed as a result of the analysis.
(b)
If the Bank determines as a result of the
analysis conducted pursuant to paragraph 6(a) hereof to continue
its participation
in the SBA Program, the Bank shall submit to
the Reserve Bank an acceptable written plan for participation
in
the SBA Program, including but not limited to, policies and
procedures for the proper documentation of SBA loans, the
monitoring of compliance with SBA loan agreements, the
maintenance of SBA approvals for documentation and payment
waivers and other procedures to ensure the Bank's participation
in good standing in the SBA Program and the continuing guaranty
of loans underwritten by the Bank in such program.
(c)
If the Bank fails to submit a comprehensive
analysis and an acceptable written plan within 30 days of this
Order, the Bank shall not make new loans or extensions of credit
under the SBA program wl. %,-ut
the prior written approval of the
Reserve Bank.
13
Charse-off or Collection of Loss Assets
7.
(a)
Within 10 days of this Order, the Bank shall
eliminate from its books, by charge-off or collection, all assets
or portions of assets classified
"Loss" in the Report of
Examination of the Bank as of December 31, 1996, dated
February 3, 1997 (the "Report of Examination"), that have not
been previously collected in full or charged-off.
Thereafter,
the Bank shall timely charge off assets or portions of assets
classified "Loss" by the management or board of directors of the
Bank or by the Reserve Bank or other bank regulatory authorities.
(b)
Within 30 days of this Order, the Bank shall
achieve and, thereafter, continue to maintain, through charges to
current operating income, an adequate valuation reserve for loan
losses.
The adequacy of the reserve shall be determined in light
of the volume of classified loans, the current level of
nonperforming
loans, past loss experience, evaluation of the
potential- for loan losses in the portion of the Bank's portfolio
not classified, current economic conditions, and examiners' other
criticisms contained in the Report of Examination, and the
requirements of the Interagency Policy Statement on the Allowance
for Loan and Lease Losses, dated December 21, 1993.
A written
record shall be maintained indicating the methodology used in
determining the amount of the reserve needed.
This record shall
be submitted to the Reserve Bank within 60 days of this Order.
Thereafter, the Bank shall conduct, at a minimum, a quarterly
assessment of its loan loss reserve and its nonperforming loans
14
and shall submit documentation of each quarterly assessment to
the Reserve Bank within 30 days of the end of each quarter.
Loan Administration
8.
(a)
Within 60 days of this Order, the Bank shall
take all appropriate steps to correct documentation and credit
information deficiencies
in the Bank's loan files (a list of
which was provided to the Bank's management by the Reserve Bank),
including obtaining accurate and current financial and cash flow
statements.
Thereafter, the Bank shall maintain and update such
documentation and credit information.
During the term of this
Order, the Bank shall take all steps necessary to maintain
current and complete documentation on all loans consistent with
its loan policy.
In all cases where the Bank is unable to obtain
documentation or credit information, it shall document the
actions taken to secure the information, the reason that the
information could not be obtained and shall maintain such
documentation
in the appropriate file for subsequent supervisory
review.
(b)
Within 60 days of this Order, the Bank shall
submit to the Reserve Bank an acceptable written plan designed to
improve through amortization, repayment, liquidation, additional
collateral or other means, whichever may be appropriate, the
Bank's position on each loan that was ;-2t due as to principal or
interest in excess of 90 days as of the date of this Order and on
each asset in excess of $40,000, including other real estate,
15
that was adversely classified or listed as special mention in the
Report of Examination.
This plan shall not be amended or
rescinded without the prior written approval of the Reserve Bank,
except that the plan shall be amended periodically to cover loans
or other assets in excess of $40,000 that have been adversely
classified or listed for special mention in any subsequent report
of examination or visitation of the Bank or loans that have
become past due as to principal or interest for more than 90
days.
Cc)
Within 30 days after the end of each calendar
quarter following the date of this Order, the Bank shall submit
to the Reserve Bank progress reports on classified and past due
assets.
Such reports shall include, at a minimum:
(i) the
carrying values of such assets as of the date of the report;
(ii) the nature and value of supporting collateral;
(iii) plans
for improvement, reduction, or elimination of the asset;
(iv) the sources of funds for loan repayments;
(VI specific
target levels and timetables for reductions in classified assets;
and (vi) a copy of the Bank's most current internal watch list.
Restricted Transactions
9.
(a)
The Bank shall not, directly or indirectly,
enter into, participate or in any other manner engage in any
transaction with any of the Bank's institution-affiliated
parties
or their related interests that is not in the ordinary course of
business of the Bank (such as deposits into personal accounts,
16
salary payments, loans made in compliance with Regulation 0 of
the Board of Governors and the like), including, but not limited
to, the purchase from or the sale to the Bank of any asset,
without the prior review of the Reserve Bank.
(b)
Any request for prior review pursuant to this
paragraph shall be accompanied by documentation adequate to
provide the Reserve Bank with the details of each proposed
transaction, including a full description of the proposal, the
purpose(s) for the transaction, the amounts involved, the
benefits to be derived by the Bank and such other matters that
may be pertinent to the proposed transaction to assist the
Reserve Bank in its review of each proposal.
Budset Plan
10.
ia)
Within 60 days of this Order, the Bank shall
submit to the Reserve Bank a revised written budget, approved by
the Bank's board of directors, concerning the Bank's proposed
business activities for the remainder of 1997 and 1998.
This
budget shall contain provisions that address the requirements of
this Order, and, at a minimum, include:
(i)
The responsibilities of the board of
directors concerning the development, approval, implementation,
and monitoring of the budget, and procedures desig '4 to ensure
that the board of directors fulfills such responsibilities;
17
(ii)
financial performance objectives
consistent with the Safety and Soundness Guidelines, including
plans for asset growth or shrinkage, liquidity and capital and
plans for improving earnings and reducing overhead expenses,
supported by detailed, quarterly pro forma financial statements;
(iii) a description of the operating
assumptions that form the basis for major projected income and
expense components and the sources and uses of cash flow;
(iv)
the analysis of the Bank's SBA Program
conducted pursuant to paragraph 6 hereof; and
(VI
the establishment of a quarterly
process to review and make any necessary revision to the budget.
(b)
A written budget for each calendar year
subsequent to 1998 shall be forwarded to the Reserve Bank by
October 31st of the prior calendar year.
(c)
Any revisions to the budget shall be approved
by the Bank's board of directors and shall be forwarded to the
Reserve Bank within five business days of approval by the Bank's
board of directors.
18
Violations
11.
(a)
The Bank shall immediately take all necessary
steps consistent with sound banking practices to eliminate or
correct all violations of Sections 9 and 22(d) of the Federal
Reserve Act
(12 U.S.C. 324 and 375), Regulations F, H and 0 of
the Board of Governors
(12 C.F.R. Parts 206, 208 and 215), the
Employee Retirement Income Security Act
("ERISA") (P.L. 93-406)
and the Internal Revenue Code (the "IRC") (26 U.S.C. 1 et seq.)
as set forth in the Report of Examination, and thereafter, the
Bank shall not engage, directly or indirectly, in any violation
of the Federal Reserve Act, Regulations F, H or 0 of the Board of
Governors, ERISA or the IRC.
(b)
Within 60 days of this Order, the Bank shall
submit to the Reserve Bank an acceptable written compliance
program designed to ensure compliance with the provisions of the
Federal Reserve Act, Regulations F, !-Iand 0 of the Board of
Governors, ERISA and the IRC.
Internal Controls
12.
(a)
The Bank shall take such actions as are
necessary to ensure that all Reports of Condition and Income
filed, submitted or published by the Bank accurately reflect the
Bank's condition on the date(s) for which such reports are filed,
submitted or published, that all such Reports are filed,
submitted or published in a timely manner, and that all records
19
indicating how such reports are prepared are adequately
maintained for subsequent supervisory review.
(b)
Within 60 days of this Order, the Bank shall
submit to the Reserve Bank acceptable written procedures designed
to strengthen and maintain the Bank's records and internal
controls.
These procedures shall include, without limitation,
corrective steps that are responsive to the recordkeeping and
internal control deficiencies noted in the Report of Examination,
including procedures
for:
(i)
Adequate separation of duties in the
wire transfer area and the investment portfolio accounting area;
(ii) proper documentation of the receipt of
payments on collection items;
(iii) ensuring that loans are funded
according to terms approved by the board of directors or a
committee thereof;
(iv) the reconciliation of all balance sheet
accounts on at least a monthly basis and the maintenance of
records of monthly balance sheet reconcilements for subsequent
supervisory review; and
20
(v)
the review and renewal, when
appropriate, of federal funds and other lines of credit.
yq
Bank Secret
Act C m liance
13.
(a)
Within 30 days of this Order, the Bank shall
submit to the Reserve Bank an acceptable, written amended policy
to ensure compliance with all of the provisions of the Currency
and Foreign Transaction Reporting Act
(31 U.S.C. 5311 et seq.)
and the accompanying regulations issued thereunder by the United
States Department of the Treasury
(31 C.F.R. 103.11 et seq.).
The amended policy shall, among other things, provide the means
for the Bank to ensure that currency transaction reports are
accurately and timely filed, and with respect to exempted
customers, that (i) exemption levels for customers of the Bank
who are exempted from the currency transaction reporting
requirements are reasonable in light of the historical
transactions of the customer,
exempted-customers
(ii) the exemption limits for
are being complied with,
(iii) in the event
that transactions exceed the exemption limits occur, the currency
transaction reporting requirements are complied with,
(iv) the
transactions of exempted customers are reviewed on a regular
basis, and (v) all required information regarding exempted
customers is appropriately recorded.
(b)
Within 30 days of this Order, the Bank shall
submit to the Reserve Bank an acceptable written program to
21
familiarize its employees with the Bank's policies and procedures
for the timely reporting of suspicious activities.
Other Reauired Policies
14.
Within 30 days of this Order, the Bank shall
submit to the Reserve Bank acceptable amended written Investment
and Funds Management policies and acceptable written policies and
procedures for emergency preparedness.
Such policies and
procedures shall address the deficiencies cited in the Report of
Examination.
Review and
ADDrOVal
15.
PrOCeSS
The written plans, policies, procedures and
programs required by paragraphs 3(a), 4(a),
4(e),
5, 6(b), 8(b),
II(b), 12(b), 13(a), 13(b) and 14 hereof shall be submitted to
the Reserve Bank for review and approval.
Acceptable plans,
policies, procedures and programs shall be submitted to the
Reserve Bank within the required time periods set forth in this
Order.
The Bank shall adopt the approved plans, policies,
procedures and programs within 10 days of receipt of approval by
the Reserve Bank and then fully comply with them.
During the
term of this Order, the approved plans, policies, procedures and
programs shall not be amended or rescinded without the prior
written approval of the Reserve Bank.
22
Quarterly Reuorts
16.
quarter
Within 30 days after the end of each calendar
(September 30, December 31, March 31 and June 30)
following the date of this Order, the Bank shall furnish to the
Reserve Bank written progress reports detailing the form and
manner of all actions taken to secure compliance with this Order
and the results thereof.
Such reports may be discontinued when
the corrections required by this Order have been accomplished and
the Reserve Bank has, in writing, released the Bank from making
further reports.
Notices
17.
All communications
regarding this Order shall be
sent to:
(a)
Mr. Basil J. Asaro
Vice President
Federal Reserve Bank of Dallas
P.O. Box 655906
Dallas, Texas 75265-5906
(b)
Ms. Marguerite Poling
Chairman of the Board
Zia New Mexico Bank
P.O. Box 1248
Tucumcari, New Mexico
(cl
Mr. G.A. Poling, Jr.
President
Zia New Mexico Bank
P.O. Box 1248
Tucumari. New Mexico
23
88401
88401
Miscellaneous
18.
The provisions of this Order shall be binding upon
the Bank and its institution-affiliated
parties, in their
capacities as such, and their successors and assigns.
Paragraphs 2, 4(d) (ii), and 17 through 21 hereof shall be binding
upon Poling in his individual capacity.
19.
Each provision of this Order shall remain
effective and enforceable until stayed, modified, terminated or
suspended by the Board of Governors.
20.
Notwithstanding
any provision of this Order to the
contrary, the Reserve Bank may, in its sole discretion, grant
written extensions of time to the Bank or Poling to comply with
any provision of this Order.
21.
The provisions of this Order shall not bar, estop
or othertiise prevent the Board of Governors, the Reserve Bank or
any federal or state agency or department from taking any other
24
action affecting the Bank or any of its current
institution-affiliated parties,
BY order
Reserve
System,
including Poling.
of the Federal
of the Board
effective
this
or former
’
day
of
TL-?\c
1997.
Zia New Mexico
Tucumcari,
New
By:
Board of Governors
of the
Federal Reserve
System
Bank
Mexico
By:
_/r-y>>
&&&(/))
Wi
iam W. Wiles
SeCretary
of the Board
With respect to paragraphs
2, 4(d) (ii), and
in
his
individual
capacity.
21 hereof,
The
undersigned
having read the foregoing
thereto by the Bank.
Marperite
directors
Order and
Poling
25
of
17 through
the Bank each acknowledges
approves
of the consent