Monday, March 11, 2013
Home State Bank - Comptroller of the Currency Agreement 3-15-10
#2010-078
AGREEMENT BY AND BETWEEN
Home State Bank / NA
Crystal Lake, IL
and
The Comptroller of the Currency
Home State Bank / NA, Crystal Lake, IL, (“Bank”) and the Comptroller of the Currency of the United States of America (“Comptroller”) wish to protect the interests of the depositors, other customers, and shareholders of the Bank, and, toward that end, wish the Bank to operate safely and soundly and in accordance with all applicable laws, rules and regulations.
The Comptroller has found at the Bank unsafe and unsound banking practices relating to credit administration and underwriting, and credit risk rating.
In consideration of the above premises, it is agreed, between the Bank, by and through its duly elected and acting Board of Directors (“Board”), and the Comptroller, through his authorized representative, that the Bank shall operate at all times in compliance with the articles of this Agreement.
ARTICLE I
JURISDICTION
(1)
This Agreement shall be construed to be a “written agreement entered into with the agency” within the meaning of 12 U.S.C. § 1818(b)(1).
(2)
This Agreement shall be construed to be a “written agreement between such depository institution and such agency” within the meaning of 12 U.S.C. § 1818(e)(1) and 12 U.S.C. § 1818(i)(2).
(3)
This Agreement shall be construed to be a “formal written agreement” within the meaning of 12 C.F.R. § 5.51(c)(6)(ii). See 12 U.S.C. § 1831i.
(4)
This Agreement shall be construed to be a “written agreement” within the meaning of 12 U.S.C. § 1818(u)(1)(A).
(5)
All reports or plans which the Bank or Board has agreed to submit to the Assistant Deputy Comptroller pursuant to this Agreement shall be forwarded to the:
Assistant Deputy Comptroller
Chicago South Field Office
2001 Butterfield Rd, Ste. 400
Downers Grove, IL 60515-7915
ARTICLE II
CAPITAL PLAN AND HIGHER MINIMUMS
(1)
The Bank shall achieve and thereafter maintain the following capital levels (as defined in 12 C.F.R. Part 3):
(a)
by March 31, 2010, Tier 1 Capital at least equal to eight percent (8.00%) of adjusted total assets; and
(b)
by March 31, 2010, Total Risk Based Capital of twelve percent (12%) of risk-weighted assets.
(2)
The requirement in this Agreement to meet and maintain a specific capital level means that the Bank may not be deemed to be “well capitalized” for purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R. § 6.4(b)(1)(iv).
The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the minimum capital requirements pursuant to this Article.
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ARTICLE III
PLANS TO ELIMINATE THE BASIS OF CRITICISM
(1)
Effective immediately, the Bank shall take continuing action to protect its interest in those assets criticized in the Report of Examination dated October 13, 2009 (ROE), in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination.
(2)
Within thirty (30) days, the Board shall review and as needed revise, and thereafter ensure Bank adherence to, individual workout plans designed to eliminate the basis of criticism on any asset (other than owner occupied residential real estate loans or consumer installment loans) criticized as “doubtful,” “substandard,” or “special mention” in the ROE, in any subsequent Report of Examination, by any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination. Each workout plan must include, at a minimum:
(a)
an identification of the expected sources of repayment;
(b)
the current value of supporting collateral and the position of the Bank’s lien on such collateral when applicable;
(c)
an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and
(d)
actions designed to eliminate the basis of criticism of and protect the bank’s interest in the asset, including timeframes for implementing and evaluating the effectiveness of those actions.
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(3)
Upon adoption of the reviewed and revised workout plans, a copy of the workout plan for each criticized asset equal to or exceeding two hundred and fifty thousand dollars ($250,000) shall be forwarded to the Assistant Deputy Comptroller.
(4)
Within thirty (30) days, the Board shall reassess the Bank’s processes, personnel, and control systems to ensure implementation of and adherence to all of the workout plans developed pursuant to this Article.
(5)
Effective immediately, the Board shall ensure that its designated committee conducts a review, on at least a monthly basis, to determine all of the following:
(a)
the status of each criticized asset or criticized portion thereof that equals or exceeds two hundred and fifty thousand dollars ($250,000);
(b)
management’s adherence to the workout plan adopted pursuant to this Article;
(c)
the status and effectiveness of the workout plan; and
(d)
the need to revise the workout plan or take alternative action.
(6)
A copy of each review shall be maintained and placed in the credit file of each affected borrower. On a quarterly basis or upon request, a copy shall be forwarded to the Assistant Deputy Comptroller.
(7)
Effective immediately, the Bank may extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ROE, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination and whose aggregate loans or other extensions exceed two hundred and fifty thousand dollars ($250,000) only if each of the following conditions is met:
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(a)
the Board or designated committee finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending, or capitalizing any additional credit, a majority of the full Board (or its designated committee) approves the credit extension and records, in writing, why such extension is necessary to promote the best interests of the Bank; and
(b)
a comparison to the workout plan adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised.
A copy of the approval of the Board or of the designated committee shall be maintained in the file of the affected borrower.
ARTICLE IV
COMMERCIAL REAL ESTATE LOAN UNDERWRITING STANDARDS
(1)
Effective immediately, the Board shall ensure adherence to its written commercial real estate loan underwriting standards which were designed to ensure that the Bank is granting, renewing, and restructuring commercial real estate loans in a safe and sound manner in accordance with the guidelines in OCC Bulletin 2006-46, Concentration in Commercial Real Estate Lending, Sound Risk Management Practices (dated December 6, 2006) and the Commercial Real Estate and Construction Lending, A-CRE, of the Comptroller’s Handbook.
(2)
The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the written commercial real estate loan underwriting standards.
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ARTICLE V C
REDIT RISK RATING
(1)
Within thirty (30) days, and on an ongoing basis thereafter, the Board shall review and revise its processes and controls to ensure that the Bank’s internal risk ratings of commercial credit relationships in excess of $250,000 (“Covered Relationship”), as assigned by responsible loan officers and by internal loan review, are timely, accurate, and consistent with the regulatory credit classification criteria set forth in the Rating Credit Risk Booklet, A-RCR, of the Comptroller’s Handbook. At a minimum, the Board must ensure, on an ongoing basis, that with respect to the assessment of credit risk of any Covered Relationship:
(a)
the primary consideration is the strength of the borrower’s primary source of repayment (i.e., the probability of default rather than the risk of loss);
(b)
if the primary source of repayment is cash flow from the borrower’s operations, the strength of the borrower’s cash flow is determined through analysis of the borrower’s historical and projected financial statements, past performance, and future prospects in light of conditions that have occurred;
(c)
collateral, non-government guarantees, and other similar credit risk mitigants that affect potential loss in the event of default (rather than the probability of default) are taken into consideration only if the primary source of repayment has weakened and the probability of default has increased;
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(d)
collateral values should reflect a current assessment of value based on actual market conditions and project status;
(e)
credit risk ratings are reviewed and updated whenever relevant new information is received, bur no less frequently than annually; and
(f)
the credit risk rating analysis is documented and available for review by the Board and the OCC upon request.
(2)
On an ongoing basis, the Board shall ensure that any Covered Relationship with a high probability of payment default or other well-defined weakness is rated no better than Substandard, unless the debt is secured by marketable securities or cash.
(3)
The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.
ARTICLE VI C
REDIT UNDERWRITING
(1)
Effective immediately, the Bank may grant, extend, renew, alter or restructure any loan or other extension of credit in excess of $10,000 only after:
(a)
documenting the specific reason or purpose for the extension of credit;
(b)
identifying the expected source of repayment in writing;
(c)
structuring the repayment terms to coincide with the expected source of repayment;
(d)
obtaining and analyzing current and satisfactory credit information;
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(i)
Failure to obtain the information in (4)(d) shall require a majority of the full Board (or a delegated committee thereof) to certify in writing the specific reasons why failing to obtain the information in (4)(d) would not be detrimental to the best interests of the Bank.
(ii)
A copy of the Board certification shall be maintained in the credit file of the affected borrower(s).
(e)
for extensions of credit in excess of $100,000, completing a global analysis of the borrower’s current financial position, cash flow, and repayment ability; and
(f)
documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable.
ARTICLE VII A
LLOWANCE FOR LOAN AND LEASE LOSSES
(1)
Within thirty (30) days, the Board shall revise its program for the maintenance of an adequate Allowance for Loan and Lease Losses (“Allowance”). The revised Allowance policies and procedures shall be consistent with the guidance set forth in the Federal Financial Institutions Examination Council’s “Interagency Policy Statement on the Allowance for Loan and Lease Losses” dated December 13, 2006, (OCC Bulletin 2006-47), and the bank’s revisions shall include requirements for impairment analyses consistent with Financial Accounting Standard 114 (recently codified as FASB ASC 310-10, Receivables – Overall – Subsequent Measurement – Impairment).
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(2)
The program shall provide for a review of the Allowance by the Board at least once each calendar quarter. Any deficiency in the Allowance shall be remedied in the quarter it is discovered, prior to the filing of the Consolidated Reports of Condition and Income, by additional provisions from earnings. Written documentation shall be maintained indicating the factors considered and conclusions reached by the Board in determining the adequacy of the Allowance.
ARTICLE VIII
CLOSING
(1)
Although the Board has agreed to submit certain programs and reports to the Assistant Deputy Comptroller for review or prior written determination of no supervisory objection, the Board has the ultimate responsibility for proper and sound management of the Bank.
(2)
It is expressly and clearly understood that if, at any time, the Comptroller deems it appropriate in fulfilling the responsibilities placed upon him/her by the several laws of the United States of America to undertake any action affecting the Bank, nothing in this Agreement shall in any way inhibit, estop, bar, or otherwise prevent the Comptroller from so doing.
(3)
Any time limitations imposed by this Agreement shall begin to run from the effective date of this Agreement. Such time requirements may be extended in writing by the Assistant Deputy Comptroller for good cause upon written application by the Board.
(4)
The provisions of this Agreement shall be effective upon execution by the parties hereto and its provisions shall continue in full force and effect unless or until such provisions are
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amended in writing by mutual consent of the parties to the Agreement or excepted, waived, or terminated in writing by the Comptroller.
(5)
In each instance in this Agreement in which the Board is required to ensure adherence to, and undertake to perform certain obligations of the Bank, it is intended to mean that the Board shall:
(a)
authorize and adopt such actions on behalf of the Bank as may be necessary for the Bank to perform its obligations and undertakings under the terms of this Agreement;
(b)
require the timely reporting by Bank management of such actions directed by the Board to be taken under the terms of this Agreement;
(c)
follow-up on any non-compliance with such actions in a timely and appropriate manner; and
(d)
require corrective action be taken in a timely manner of any non-compliance with such actions.
(6)
This Agreement is intended to be, and shall be construed to be, a supervisory “written agreement entered into with the agency” as contemplated by 12 U.S.C. § 1818(b)(1), and expressly does not form, and may not be construed to form, a contract binding on the Comptroller or the United States. Notwithstanding the absence of mutuality of obligation, or of consideration, or of a contract, the Comptroller may enforce any of the commitments or obligations herein undertaken by the Bank under his supervisory powers, including 12 U.S.C. § 1818(b)(1), and not as a matter of contract law. The Bank expressly acknowledges that neither the Bank nor the Comptroller has any intention to enter into a contract. The Bank also expressly acknowledges that no officer or employee of the Office of the Comptroller of the Currency has
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statutory or other authority to bind the United States, the U.S. Treasury Department, the Comptroller, or any other federal bank regulatory agency or entity, or any officer or employee of any of those entities to a contract affecting the Comptroller’s exercise of his supervisory responsibilities. The terms of this Agreement, including this paragraph, are not subject to amendment or modification by any extraneous expression, prior agreements or prior arrangements between the parties, whether oral or written.
IN TESTIMONY WHEREOF, the undersigned, authorized by the Comptroller, has hereunto set her hand on behalf of the Comptroller.
/s/ March 15, 2010
Mary Beth Farrell
Assistant Deputy Comptroller
Chicago South Field Office
Date
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- 12 -
IN TESTIMONY WHEREOF, the undersigned, as the duly elected and acting Board of Directors of the Bank, have hereunto set their hands on behalf of the Bank.
/s/
March 15, 2010
James L. Althoff
/s/
Date
March 15, 2010
James C. Berg
/s/
Date
March 17, 2010
Robert L. Cormier
/s/
Date
March 15, 2010
Timothy J. Curran
/s/
Date
March 30, 2010
Suzanne K. Dunn
/s/
Date
March 15, 2010
Patrick O. Morehead
/s/
Date
March 15, 2010
Joseph T. Morrow
/s/
Date
March 15, 2010
Christopher M. Morrow
/s/
Date
March 15, 2010
Sandra M. Pierce
/s/
Date
March 15, 2010
Steven L. Slack
Date
AGREEMENT BY AND BETWEEN
Home State Bank / NA
Crystal Lake, IL
and
The Comptroller of the Currency
Home State Bank / NA, Crystal Lake, IL, (“Bank”) and the Comptroller of the Currency of the United States of America (“Comptroller”) wish to protect the interests of the depositors, other customers, and shareholders of the Bank, and, toward that end, wish the Bank to operate safely and soundly and in accordance with all applicable laws, rules and regulations.
The Comptroller has found at the Bank unsafe and unsound banking practices relating to credit administration and underwriting, and credit risk rating.
In consideration of the above premises, it is agreed, between the Bank, by and through its duly elected and acting Board of Directors (“Board”), and the Comptroller, through his authorized representative, that the Bank shall operate at all times in compliance with the articles of this Agreement.
ARTICLE I
JURISDICTION
(1)
This Agreement shall be construed to be a “written agreement entered into with the agency” within the meaning of 12 U.S.C. § 1818(b)(1).
(2)
This Agreement shall be construed to be a “written agreement between such depository institution and such agency” within the meaning of 12 U.S.C. § 1818(e)(1) and 12 U.S.C. § 1818(i)(2).
(3)
This Agreement shall be construed to be a “formal written agreement” within the meaning of 12 C.F.R. § 5.51(c)(6)(ii). See 12 U.S.C. § 1831i.
(4)
This Agreement shall be construed to be a “written agreement” within the meaning of 12 U.S.C. § 1818(u)(1)(A).
(5)
All reports or plans which the Bank or Board has agreed to submit to the Assistant Deputy Comptroller pursuant to this Agreement shall be forwarded to the:
Assistant Deputy Comptroller
Chicago South Field Office
2001 Butterfield Rd, Ste. 400
Downers Grove, IL 60515-7915
ARTICLE II
CAPITAL PLAN AND HIGHER MINIMUMS
(1)
The Bank shall achieve and thereafter maintain the following capital levels (as defined in 12 C.F.R. Part 3):
(a)
by March 31, 2010, Tier 1 Capital at least equal to eight percent (8.00%) of adjusted total assets; and
(b)
by March 31, 2010, Total Risk Based Capital of twelve percent (12%) of risk-weighted assets.
(2)
The requirement in this Agreement to meet and maintain a specific capital level means that the Bank may not be deemed to be “well capitalized” for purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R. § 6.4(b)(1)(iv).
The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the minimum capital requirements pursuant to this Article.
- 2 -
ARTICLE III
PLANS TO ELIMINATE THE BASIS OF CRITICISM
(1)
Effective immediately, the Bank shall take continuing action to protect its interest in those assets criticized in the Report of Examination dated October 13, 2009 (ROE), in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination.
(2)
Within thirty (30) days, the Board shall review and as needed revise, and thereafter ensure Bank adherence to, individual workout plans designed to eliminate the basis of criticism on any asset (other than owner occupied residential real estate loans or consumer installment loans) criticized as “doubtful,” “substandard,” or “special mention” in the ROE, in any subsequent Report of Examination, by any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination. Each workout plan must include, at a minimum:
(a)
an identification of the expected sources of repayment;
(b)
the current value of supporting collateral and the position of the Bank’s lien on such collateral when applicable;
(c)
an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and
(d)
actions designed to eliminate the basis of criticism of and protect the bank’s interest in the asset, including timeframes for implementing and evaluating the effectiveness of those actions.
- 3 -
(3)
Upon adoption of the reviewed and revised workout plans, a copy of the workout plan for each criticized asset equal to or exceeding two hundred and fifty thousand dollars ($250,000) shall be forwarded to the Assistant Deputy Comptroller.
(4)
Within thirty (30) days, the Board shall reassess the Bank’s processes, personnel, and control systems to ensure implementation of and adherence to all of the workout plans developed pursuant to this Article.
(5)
Effective immediately, the Board shall ensure that its designated committee conducts a review, on at least a monthly basis, to determine all of the following:
(a)
the status of each criticized asset or criticized portion thereof that equals or exceeds two hundred and fifty thousand dollars ($250,000);
(b)
management’s adherence to the workout plan adopted pursuant to this Article;
(c)
the status and effectiveness of the workout plan; and
(d)
the need to revise the workout plan or take alternative action.
(6)
A copy of each review shall be maintained and placed in the credit file of each affected borrower. On a quarterly basis or upon request, a copy shall be forwarded to the Assistant Deputy Comptroller.
(7)
Effective immediately, the Bank may extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ROE, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination and whose aggregate loans or other extensions exceed two hundred and fifty thousand dollars ($250,000) only if each of the following conditions is met:
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(a)
the Board or designated committee finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending, or capitalizing any additional credit, a majority of the full Board (or its designated committee) approves the credit extension and records, in writing, why such extension is necessary to promote the best interests of the Bank; and
(b)
a comparison to the workout plan adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised.
A copy of the approval of the Board or of the designated committee shall be maintained in the file of the affected borrower.
ARTICLE IV
COMMERCIAL REAL ESTATE LOAN UNDERWRITING STANDARDS
(1)
Effective immediately, the Board shall ensure adherence to its written commercial real estate loan underwriting standards which were designed to ensure that the Bank is granting, renewing, and restructuring commercial real estate loans in a safe and sound manner in accordance with the guidelines in OCC Bulletin 2006-46, Concentration in Commercial Real Estate Lending, Sound Risk Management Practices (dated December 6, 2006) and the Commercial Real Estate and Construction Lending, A-CRE, of the Comptroller’s Handbook.
(2)
The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the written commercial real estate loan underwriting standards.
- 5 -
ARTICLE V C
REDIT RISK RATING
(1)
Within thirty (30) days, and on an ongoing basis thereafter, the Board shall review and revise its processes and controls to ensure that the Bank’s internal risk ratings of commercial credit relationships in excess of $250,000 (“Covered Relationship”), as assigned by responsible loan officers and by internal loan review, are timely, accurate, and consistent with the regulatory credit classification criteria set forth in the Rating Credit Risk Booklet, A-RCR, of the Comptroller’s Handbook. At a minimum, the Board must ensure, on an ongoing basis, that with respect to the assessment of credit risk of any Covered Relationship:
(a)
the primary consideration is the strength of the borrower’s primary source of repayment (i.e., the probability of default rather than the risk of loss);
(b)
if the primary source of repayment is cash flow from the borrower’s operations, the strength of the borrower’s cash flow is determined through analysis of the borrower’s historical and projected financial statements, past performance, and future prospects in light of conditions that have occurred;
(c)
collateral, non-government guarantees, and other similar credit risk mitigants that affect potential loss in the event of default (rather than the probability of default) are taken into consideration only if the primary source of repayment has weakened and the probability of default has increased;
- 6 -
(d)
collateral values should reflect a current assessment of value based on actual market conditions and project status;
(e)
credit risk ratings are reviewed and updated whenever relevant new information is received, bur no less frequently than annually; and
(f)
the credit risk rating analysis is documented and available for review by the Board and the OCC upon request.
(2)
On an ongoing basis, the Board shall ensure that any Covered Relationship with a high probability of payment default or other well-defined weakness is rated no better than Substandard, unless the debt is secured by marketable securities or cash.
(3)
The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.
ARTICLE VI C
REDIT UNDERWRITING
(1)
Effective immediately, the Bank may grant, extend, renew, alter or restructure any loan or other extension of credit in excess of $10,000 only after:
(a)
documenting the specific reason or purpose for the extension of credit;
(b)
identifying the expected source of repayment in writing;
(c)
structuring the repayment terms to coincide with the expected source of repayment;
(d)
obtaining and analyzing current and satisfactory credit information;
- 7 -
(i)
Failure to obtain the information in (4)(d) shall require a majority of the full Board (or a delegated committee thereof) to certify in writing the specific reasons why failing to obtain the information in (4)(d) would not be detrimental to the best interests of the Bank.
(ii)
A copy of the Board certification shall be maintained in the credit file of the affected borrower(s).
(e)
for extensions of credit in excess of $100,000, completing a global analysis of the borrower’s current financial position, cash flow, and repayment ability; and
(f)
documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable.
ARTICLE VII A
LLOWANCE FOR LOAN AND LEASE LOSSES
(1)
Within thirty (30) days, the Board shall revise its program for the maintenance of an adequate Allowance for Loan and Lease Losses (“Allowance”). The revised Allowance policies and procedures shall be consistent with the guidance set forth in the Federal Financial Institutions Examination Council’s “Interagency Policy Statement on the Allowance for Loan and Lease Losses” dated December 13, 2006, (OCC Bulletin 2006-47), and the bank’s revisions shall include requirements for impairment analyses consistent with Financial Accounting Standard 114 (recently codified as FASB ASC 310-10, Receivables – Overall – Subsequent Measurement – Impairment).
- 8 -
(2)
The program shall provide for a review of the Allowance by the Board at least once each calendar quarter. Any deficiency in the Allowance shall be remedied in the quarter it is discovered, prior to the filing of the Consolidated Reports of Condition and Income, by additional provisions from earnings. Written documentation shall be maintained indicating the factors considered and conclusions reached by the Board in determining the adequacy of the Allowance.
ARTICLE VIII
CLOSING
(1)
Although the Board has agreed to submit certain programs and reports to the Assistant Deputy Comptroller for review or prior written determination of no supervisory objection, the Board has the ultimate responsibility for proper and sound management of the Bank.
(2)
It is expressly and clearly understood that if, at any time, the Comptroller deems it appropriate in fulfilling the responsibilities placed upon him/her by the several laws of the United States of America to undertake any action affecting the Bank, nothing in this Agreement shall in any way inhibit, estop, bar, or otherwise prevent the Comptroller from so doing.
(3)
Any time limitations imposed by this Agreement shall begin to run from the effective date of this Agreement. Such time requirements may be extended in writing by the Assistant Deputy Comptroller for good cause upon written application by the Board.
(4)
The provisions of this Agreement shall be effective upon execution by the parties hereto and its provisions shall continue in full force and effect unless or until such provisions are
- 9 -
amended in writing by mutual consent of the parties to the Agreement or excepted, waived, or terminated in writing by the Comptroller.
(5)
In each instance in this Agreement in which the Board is required to ensure adherence to, and undertake to perform certain obligations of the Bank, it is intended to mean that the Board shall:
(a)
authorize and adopt such actions on behalf of the Bank as may be necessary for the Bank to perform its obligations and undertakings under the terms of this Agreement;
(b)
require the timely reporting by Bank management of such actions directed by the Board to be taken under the terms of this Agreement;
(c)
follow-up on any non-compliance with such actions in a timely and appropriate manner; and
(d)
require corrective action be taken in a timely manner of any non-compliance with such actions.
(6)
This Agreement is intended to be, and shall be construed to be, a supervisory “written agreement entered into with the agency” as contemplated by 12 U.S.C. § 1818(b)(1), and expressly does not form, and may not be construed to form, a contract binding on the Comptroller or the United States. Notwithstanding the absence of mutuality of obligation, or of consideration, or of a contract, the Comptroller may enforce any of the commitments or obligations herein undertaken by the Bank under his supervisory powers, including 12 U.S.C. § 1818(b)(1), and not as a matter of contract law. The Bank expressly acknowledges that neither the Bank nor the Comptroller has any intention to enter into a contract. The Bank also expressly acknowledges that no officer or employee of the Office of the Comptroller of the Currency has
- 10 -
statutory or other authority to bind the United States, the U.S. Treasury Department, the Comptroller, or any other federal bank regulatory agency or entity, or any officer or employee of any of those entities to a contract affecting the Comptroller’s exercise of his supervisory responsibilities. The terms of this Agreement, including this paragraph, are not subject to amendment or modification by any extraneous expression, prior agreements or prior arrangements between the parties, whether oral or written.
IN TESTIMONY WHEREOF, the undersigned, authorized by the Comptroller, has hereunto set her hand on behalf of the Comptroller.
/s/ March 15, 2010
Mary Beth Farrell
Assistant Deputy Comptroller
Chicago South Field Office
Date
- 11 -
- 12 -
IN TESTIMONY WHEREOF, the undersigned, as the duly elected and acting Board of Directors of the Bank, have hereunto set their hands on behalf of the Bank.
/s/
March 15, 2010
James L. Althoff
/s/
Date
March 15, 2010
James C. Berg
/s/
Date
March 17, 2010
Robert L. Cormier
/s/
Date
March 15, 2010
Timothy J. Curran
/s/
Date
March 30, 2010
Suzanne K. Dunn
/s/
Date
March 15, 2010
Patrick O. Morehead
/s/
Date
March 15, 2010
Joseph T. Morrow
/s/
Date
March 15, 2010
Christopher M. Morrow
/s/
Date
March 15, 2010
Sandra M. Pierce
/s/
Date
March 15, 2010
Steven L. Slack
Date
# posted by Cal Skinner : 1:24 PM
Tuesday, March 05, 2013
McHenry County Board Minutes on Lowering the Salary from$21,500 to $21,000
NEW AND UNFINISHED BUSINESS
11.10 Resolution Amending
Resolution #R-201110-12-250 to Approve Compensation for the County Board
Chairman and the County Board Members
Mr. Breeden made a motion seconded by
Ms. Hill to approve the above-named resolution.
Chairman Koehler asked for any
discussion. Mr. Austin said a math error was discovered on the previously
approved
resolution and this resolution is to
correct that noting that the pay for board members starting 2013 is reduced
from
$21,500 to $21,000.
Ms. Miller said she has heard from
many people since the pay increase was approved who are unhappy about this.
One of their concerns is the fringe
benefits that board members receive so she would like to make a change to this.
Ms. Miller made a motion to amend seconded
by Ms. Salgado to change the health benefits contribution from
board members to 45%.
Ms. Schuster asked if we could do
this. Parliamentarian Jamie Rein said this resolution is only to amend the
compensation being paid and not to
reconsider the entire motion so the motion by Ms. Miller is out of order.
Ms.
Rein said technically this is a
scriveners error. If the board wants to reconsider the complete resolution they
must
take a different route.
Ms. Miller asked if the board could
vote on the compensation amendment then make a motion to reconsider the
resolution. Ms. Rein said you can
only reconsider something on the day that you did it so she believes the entire
resolution would have to rescinded
and start the entire process over; she wowould need to check Roberts Rules on
this.
McHenry County Board Regular Session
DRAFT: 11.01.2011
Tuesday
November 1, 2011
Page: 10
Chairman Koehler said we will take
Ms. Rein’s opinion right now with Ms. Miller’s motion being out of order.
Chairman Koehler asked if there is
any discussion on the main motion.
Ms. Schuster said does not want to
vote on a new resolution.
Mr. Hammerand asked if we can only
talk about the compensation amount. Ms. Rein said it is her understanding that
this was brought solely for the
purpose of amending the resolution based on a scrivener’s error in the amount
from
$21,500 to be changed to $21,000,
which is the amount she saw in a memo associated with this. If the intent is to
debate this whole thing over again,
then we need to be taking a different process and rescinding it and starting
over.
Mr. Hammerand asked if this is the
salary at the end of this year. Chairman Koehler said that is the ending salary
for
anybody that was on the first tier.
Mr. Austin said the higher end board members will receive $20,988 in FY 2012;
the
Committee of Chairs agreed that they
wanted to freeze that rate and round it to an even number, so they rounded it
up to $21,000, going up $12. That was
to be the number for FY 2013 and 2014 and then see after that. After lengthy
discussion, the board agreed to
freeze the pay for all four years at $21,500. Mr. Hammerand said this did not
come
through Finance and feels this was
taken out of order. Mr. Austin said the original compensation resolution did
not go
through Finance it went only to the
Committee of Chairman, and the direction was to bring it from there to the
County
Board. Mr. Austin said when this
error was identified he spoke with Chairman Koehler and the Finance Chairman
about how to correct this because
$21,500 was not the intent. The direction was to bring it back to the board as
soon
as possible and close this loop.
Chairman Koehler agreed this is just a correction from the $21,500 to $21,000.
Ms. Miller clarified that the only
thing the board is voting on today is the correction on compensation from
$21,500 to
$21,000. Chairman Koehler said yes. A
yes vote will be to accept that correction.
Mr. Provenzano said he is concerned
about what the paper is going to print on this. He has been trying to find a
venue to get his pay frozen at the
current rate and he keeps getting resolutions to give him a pay raise. He will
be
voting against this because it is
still a pay raise. Mr. Austin responded that this full board has agreed to
$21,500
starting fiscal year 2013. If the
board does not vote for this correction the pay will be $500 higher than was
intended
in 2013.
Ms. Yensen is in agreement with Mr.
Provenzano as to perception and she will be voting no again as voters are
against any kind of pay increase.
Ms. Evertsen said when the vote was
taken on this initially she was confused and voted the wrong way and there was
nothing she can do about that.
However, on this she also will be voting no as she and her constituents are
against
any pay increase.
Ms. Donner clarified that there is
nothing the board can do about the raise they are going to get on December 1st,
2011 for 2012 and unless the full
board is reelected they are not giving themselves a raise after that point for
four
years. By making a change to what was
voted on and now being amended, in 2013 the full board will be brought to
one level of pay.
Ms. Hill asked for clarification on
how this resolution was directed to come to the board today to be rectified. It
seems
to her for a scrivener’s error we
shouldn’t be voting on this, it should just be corrected. She asked if there
was a
process for her to remove this and
just get the scrivener’s error corrected. Chairman Koehler said Mr. Austin told
him about the error and they
concurred that it needed to be corrected and it was a joint decision to being
it here.
Ms. Rein said the best thing to do
since it is the expenditure is to take a vote on it. Ms. Rein said if it is the
intent of
the board to rehash the whole thing
then someone would have to do a motion to rescind the entire thing and you
would have to have a two-thirds
majority vote to rescind and start over. If you vote on this resolution board
members
can vote how they choose and then
allow for comment afterwards that board members can state that they stand by
their original vote so that it is
noted in the record.
Mr. Austin said an e-mail was sent to
the paper explaining the error that was made so that hopefully no big article
will
be done again.
Mr. Hammerand said he feels $21,500
is fair. When he has talked to his constituents he has explained things to
them and he took a lot more heat with
the Chairman’s salary than he did on the compensation for County Board
members.
Mr. Bless made a motion to call
the question, seconded by Ms. Hill.
DRAFT: 11.01.2011
McHenry County Board Regular Session
Tuesday
November 1, 2011
Page: 11
Chairman Koehler asked for a voice
vote on the motion to call the question, the ayes having it noting a few nays,
the
motion has passed to call the
question.
Chairman Koehler said we are going
back to the original motion to approve 11.10 Resolution Amending Resolution
#R-201110-12-250 to Approve
Compensation for the County Board Chairman and the County Board Members.
The Chairman said this will reduce
the compensation in 2013 from $21,500 to $21,000.
Ms. Miller said when she saw this
back here today she didn’t see this as a scrivener’s error she thought this was
being brought forward for debate and
what we are doing is tying people in to this one portion of it. From her
perspective when this showed up
again, she felt that the whole thing was up for debate not just the correction
being
pointed out.
Chairman Koehler said the question
was called so we must take a vote and apologized as he shouldn’t have allowed
Ms. Miller to comment.
Chairman Koehler asked for a roll
call vote on the motion to approve 11.10 Resolution Amending Resolution #R-
201110-12-250 to Approve Compensation
for the County Board Chairman and the County Board Members
Noting that a yes vote is to lower
the compensation from $21,500 to $21,000, a no vote will keep the compensation
at
the $21,500. The following members
responded aye: Bless, Breeden, Donner, Draffkorn, Heisler, Hill, Jung, Kurtz,
McCann, Merkel, Miller, Nowak,
Peschke, Salgado, Schuster and Koehler. Nay: Yensen, Evertsen, Hammerand and
Schmidt. Absent: Donley, Munaretto,
Provenzano and Wheeler. The vote being sixteen (16) ayes and four(4) nays
noting four (4) absent, the Chairman
declared the motion to approve 11.10 Resolution Amending Resolution #R-
201110-12-250 to Approve Compensation
for the County Board Chairman and the County Board Members
has passed.
Mr. Hammerand made a motion seconded
by Ms. Evertsen to rescind item #11.10 a Resolution Amending
Resolution #R-201110-12-250 to
Approve Compensation for the County Board Chairman and the County
Board Members
Chairman Koehler asked for any
discussion on the motion to rescind this resolution that just passed.
Mr. Hammerand said he feels that
after lengthy discussion on the resolution at the last meeting where the
figures on
that resolution that they considered
were wrong, the County Board members were not aware of what they were
voting
on, he believes the whole resolution
should be reconsidered.
Noting no further discussion, the
Chairman asked for a roll call vote noting that a two-thirds majority vote of
the
people present is needed to approve
to rescind. The following members responded aye: Evertsen, Hammerand,
Miller and Schuster. Nay: Yensen,
Bless, Breeden, Donner, Draffkorn, Heisler, Hill, Jung, Kurtz, McCann, Merkel,
Peschke, Provenzano, Schmidt and
Koehler. Absent: Donley, Munaretto, Nowak, Salgado and Wheeler. The vote
being four (4) ayes and fifteen (15)
nays noting five (5) absent, the Chairman declared the motion to rescind
Agenda
item #11.10 as named above has failed.# posted by Cal Skinner : 7:30 PM
McHenry County Board Resolution Setting County Board Salaries
R E S O L U T I O N
AMENDING RESOLUTION #
R-201110-12-250
TO APPROVE COMPENSATION FOR THE
COUNTY BOARD CHAIRMAN AND THE
COUNTY BOARD MEMBERS
WHEREAS, Illinois law provides that the County Board shall fix the compensation of its
Chairman and its Members; and
WHEREAS, it is the desire of this County Board to set the compensation for the
Chairman and Members of the McHenry County Board
taking office in December, 2012 through December 2021; and
WHEREAS, the Chairman of the Standing
Committees concur with the recommendation relative
to compensation for said officials.
NOW, THEREFORE BE IT RESOLVED, by this County Board of McHenry County, Illinois that the following compensation beginning
December 2012 and fringe benefit options are hereby approved for the Chairman and Members of the
McHenry County Board:
1. Chairman of the Board:
The Chairman of the Board will
receive an annual salary of $82,200 for FY2013 and FY2014.
2. Vice-Chairman of the Board:
The Vice-Chairman will receive
$5,000 per year more than Board Members.
3. Members of the Board:
The Members of the Board will
receive an annual salary of $21,000 for FY2013 and FY2014.
4. Fringe Benefits:
The Chairman and Members of the Board
may choose to participate in any or all of the benefit
programs made available, now or in the future, to all County employees
including, but not limited to health, dental and vision plans subject to
the same rates, benefit levels, rules and regulations established
for all County employees.
BE IT FURTHER RESOLVED, that County Board Members may accept mileage reimbursement attending County Board Meetings or
County Board Committee meetings, and
BE IT FURTHER RESOLVED, future County Boards may adjust Board salaries for years
2015 through 2021 if a resolution is
approved by a County Board at least 180 days prior to the
beginning of a new term.
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized to distribute
a certified copy of this Resolution to the
Members of the McHenry County Board; the Auditor; the Associate County Administrator - Finance; the Human
Resources Director; and the County Administrator.
DATED at Woodstock, Illinois, this 1st day of November, A.D.,
2011.
______________________________
KENNETH D. KOEHLER, Chairman
McHenry County Board# posted by Cal Skinner : 7:07 PM
Sunday, March 03, 2013
Resolution Repealing Video Gaming Prohibitation
RESOLUTION REPEALING VIDEO GAMING ORDINANCE FOR UNINCORPORATED
AREAS OF MCHENRY COUNTY
WHEREAS, the Video Gaming Act (230 ILCS 40/1 et seq.: PA 96-0034) became law on July 13, 2009 and allows
licensed retail establishments to conduct video gambling; and
WHEREAS, recognizing that some Illinois local jurisdictions would desire to opt out of video gambling, Section 27
of the Video Gaming Act permits counties and municipalities to prohibit gaming by ordinance with their respective
corporate limits or unincorporated areas; and
WHEREAS, the McHenry County Board did pass Ordinance Number 0-200912-12-065 on December 1, 2009
which did prohibit video gaming in unincorporated areas of McHenry County; and
WHEREAS, after further reconsideration it is the desire of the McHenry County Board to permit video gaming in
unincorporated areas of McHenry County.
NOW, THEREFORE BE IT RESOLVED, by this County Board of McHenry County, Illinois hereby authorizes the
repeal of Ordinance Number 0-200912-12-065; and
BE IT FURTHER RESOLVED, that the McHenry County Board hereby approves video gaming in unincorporated
areas of McHenry County; and
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized to distribute a certified copy of this
Resolution to the County Administrator, the State's Attorney and the McHenry County Sheriff.
DATED at Woodstock, Illinois, this 19th day of March, A.D., 2013.
______________________________
TINA R. HILL, Chairwoman
McHenry County Board
ATTEST:
______________________________
KATHERINE C. SCHULTZ, County Clerk
AREAS OF MCHENRY COUNTY
WHEREAS, the Video Gaming Act (230 ILCS 40/1 et seq.: PA 96-0034) became law on July 13, 2009 and allows
licensed retail establishments to conduct video gambling; and
WHEREAS, recognizing that some Illinois local jurisdictions would desire to opt out of video gambling, Section 27
of the Video Gaming Act permits counties and municipalities to prohibit gaming by ordinance with their respective
corporate limits or unincorporated areas; and
WHEREAS, the McHenry County Board did pass Ordinance Number 0-200912-12-065 on December 1, 2009
which did prohibit video gaming in unincorporated areas of McHenry County; and
WHEREAS, after further reconsideration it is the desire of the McHenry County Board to permit video gaming in
unincorporated areas of McHenry County.
NOW, THEREFORE BE IT RESOLVED, by this County Board of McHenry County, Illinois hereby authorizes the
repeal of Ordinance Number 0-200912-12-065; and
BE IT FURTHER RESOLVED, that the McHenry County Board hereby approves video gaming in unincorporated
areas of McHenry County; and
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized to distribute a certified copy of this
Resolution to the County Administrator, the State's Attorney and the McHenry County Sheriff.
DATED at Woodstock, Illinois, this 19th day of March, A.D., 2013.
______________________________
TINA R. HILL, Chairwoman
McHenry County Board
ATTEST:
______________________________
KATHERINE C. SCHULTZ, County Clerk
# posted by Cal Skinner : 2:51 PM
