Heritage Bank pays $17K flood insurance penalty

Heritage Bank, Olympia, Washington, received an FDIC stipulated order to pay a $17000 civil money penalty for violations of the Flood Disaster Protection Act of 1973. The FDIC determined that the bank had engaged in a pattern or practice of violating the Act and Part 339 of the FDIC's Rules and Regulations, more particularly 12 CFR § 339.3(a), by failing to obtain adequate flood insurance on buildings and/or the buildings’ contents securing designated loans at the time the Bank made, increased, extended, or renewed the loans.