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UNITED STATES OF AMERICA BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. STATE OF MICHIGAN OFFICE OF FINANCIAL AND INSURANCE SERVICES LANSING, MICHIGAN Amendment to the Written Agreement by and among NEW CENTURY BANK Shelby Township, Michigan i FEDERAL RESERVE BANK OF CHICAGO Chicago, Illinois 1 1 and STATE OF MICHIGAN OFFICE OF FINANCIAL AND INSURANCE SERVICES Lansing, Michigan ) Docket No. 00-022-WA/RB-SM (Amended) ) ) ) ) New Century Bank, W, Michigan (the ‘‘Bank’’), a state chartered bank that is a member of the Federal Reserve System, the Federal Reserve Bank of Chicago (the “Reserve Bank”), and the State of Michigan Office of Financial and Insurance Services (the “OFIS”) have mutually agreed to enter into this Amendment to the Written Agreement, dated January 23,2001 (the “Amendment”), and agree that new paragraphs 13 through 17 shall be added to the Written Agreement as follows: (a) The Bank shall immediately take all necessary steps, consistentwith safe and sound banking practices, to e l i t e or correct all violations of law set forth in the report of the consumer affairs examination of the Bank conducted by the Reserve Bank, dated April% 2001, and the Bank shall not engage, directly or indirectly, in any further violations of the laws and regulations cited in the report. (b) Within 45 days of this Amendment, the Bank shall submit to the Reserve Bank and the OFIS acceptable written policies, procedures, and programs to ensure the Bank’s compliance with all applicableconsumer protection laws and regulations, which shall, at a minimum, address, consider, and include: 13. The responsibilities of the board of directors and senior management for the oversight and direction of the Bank's compliance and fair lending activities; compliance procedures for each Bank product subject to such laws and regulations, including but not limited to, disclosure statements; procedures for conducting compliance reviews by the board of directors and management; an audit review program for consumer protection and community reinvestment activities; a training program designed to ensure that all current and future directors, officers, and employees of the Bank develop and maintain a sufficient understanding of the requirements of all laws and regulations that pertain to their respective responsibilities; and a self-evaluation program to monitor the Bank's fair lending practices. Acceptable polices, procedures, and programs required by paragraph 13(b) (c) hereof shall be submitted and approved in accordancewith the procedures set forth in paragraph 5(a) of the Written Agreement. 14. Within 30 days of this Amendment, the Bank shall appoint a qualified consumer compliance officer, who will be responsible for administeringthe Bank's consumer protection complianceprogram. The consumer compliance officer shall report directly to the board of directors or a committee thereof, and shall be granted full authority by the board of directors to effect all necessary corrective measures consistent with sound bankiig practices to ensure compliance with all applicable consumerprotection laws and regulations and with the provisions of this Amendment. 15. Within 30 days after the end of each calendar quarter (December 31, March 3 1, June 30, and September 30) following the date of this Amendment, the board of directors shall submit a written progress report to the Reserve Bank and the OFIS,and shall Certify that each director has reviewed each quarterly progress report. Such reports may be discontinued when the Reserve Bank and the OFIS,in writing, have released the Bank from making further reports. 16. This Amendment does not supersede, stay, terminate, or suspend any provision of the Written Agreement among New Centuxy Bancorp, Shelby T o w h i p , Michigan, the Bank, the Reserve Bank,and the OFIS,dated July 13,2000 or the Written Agreement among the Bank, the Reserve Bank, and the OFIS,dated January 23,2001. 2 17. This Amendm�nt is a “written agreement” for 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). IN WITNESS HEREOF, the parties have caused this Amendment to be executed as of theLdayof 5-49. ,2001. New Century Bank Federal Reserve Bank of Chicago ( 3