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UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.

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In the Matter of

Docket No. 03-014-B-I

)

ROBERT C. ARNESON

An Institution-Affiliated
Party of
Ridgedale State Bank
Minnetonka, Minnesota

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Cease and Desist Order
Issued Upon Consent
Pursuant to the
Federal Deposit Insurance
Act, As Amended

WHEREAS, pursuant to section 8(b)(l) of the Federal Deposit Insurance
Act, as amended, (12 U.S.C. 1818(b)(l)) (the “FDI Act”), the Board of Governors of the
Federal Reserve System (the “Board of Governors”) issues this Cease and Desist Order
(the “Order”) against Robert C. Ameson (“Ameson”), the President and a Director, and
an institution-affliated party, as defined in section 3(u) ofthe FDI Act (12 U.S.C.
1813(u)), of the Ridgedale State Bank, Minnetonka, Minnesota (“Ridgedale”), a state
chartered bank that is a member of the Federal Reserve System, based on Ameson‘s
alleged unsafe and unsound practices in connection with his receipt of loans from
Ridgedale in apparent violation of Regulation 0 of the Board of Governors (12 C.F.R.
Part 2 15); and
WHEREAS, by affixing his signature hereunder Arneson has consented to
the issuance of this Order by the Board of Governors and has:

(1)

Consented to comply with each and every provision of this Order;

(2)

waived a hearing for the purpose of taking evidence on any matter
set forth in this Order;

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(3)

waived any and all rights to contest the issuance of a cease and
desist order by the Board of Governors pursuant to 12 U.S.C. 1818
and 12 C.F.R. Part 263;

(4)

waived any and all rights to judicial review of this Order; and

(5)

waived any and all rights to challenge or contest the validity of the
provisions of this Order.

NOW, THEREFORE, before the taking of any testimony or adjudication
of or finding on any issue of fact or law herein; 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:

IT IS HEREBY ORDERED, pursuant to section 8(b)(l) of the FDI Act,
that:
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At all times that Ameson is an institution-affiliatedparty of

Ridgedale or any other institution or agency specified in 8(e)(7)(A) of the FDI Act (12

U.S.C. 1818(e)(7)(A))including, but not limited to, any insured depository institution or
bank holding company, Ameson shall take such actions as are necessary and consistent
with his responsibilities as an institution-affiliatedparty to ensure that he will (a) comply
with all policies and procedures of his employer as they pertain to his responsibilities; (b)
engage only in activities that are consistent with his fiduciary duty and with safe and
sound banking practices; (c) comply fully with all applicable laws and regulations
pertinent to his responsibilities as an institution-affiliatedparty; and (d) accept for his
personal benefit only those extensions of credit that are consistent with Regulation 0 of
the Board of Governors.

This Order shall remain fully effective and enforceable until

2.

expressly stayed, modified, terminated or suspended in writing by the Board of
Governors.
All communications regarding this Order shall be addressed to:

3.

(a)

Mr. Neil Willardson
Vice President
Federal Reserve Bank of Minneapolis
Minneapolis, Minnesota

(b)

Mr. Robert C. Arneson
Ridgedale State Bank
1730 Plymouth Road
Minnetonka, Minnesota

The provisions of this Order shall not bar, estop, or otherwise

4.

prevent the Board of Governors or any other federal or state agency or department from
taking any other action affecting Ridgedale or any of its current or former institutionaffiliated parties.
By order of the Board of Governors effectivethis
c&L
v

2 y*

day of

,2003.

Board of Governors of the
Federal Reserve System

By:
Robert C. Ameson
Secretary of the Board