Madison County Community Bank: $9,750 flood penalty

The FDIC has issued a consent order to pay a $9,750 civil money penalty to MADISON COUNTY COMMUNITY BANK, Madison, Florida, for engaging in a pattern or practice of committing violations of violations of Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339, which implements section 102 of the Flood Disaster Protection Act.

Specifically, the FDIC found that the bank violated section 339.3(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.3(a), by failing to obtain adequate flood insurance coverage at or before loan origination, increase, renewal, or extension in 16 instances (9 violations in the 24 traditional loans reviewed
and 7 violations in the 49 cross-collateralized loans reviewed).

Further, the Bank violated section 339.7(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.7(a), by failing to provide the required notice of force-placed flood insurance to the borrower in 21 instances (2 violations in the 24 traditional loans reviewed and 19 violations in the 49 cross-collateralized loans reviewed) and by failing to maintain an adequate amount of forced-place flood insurance in 1 instance in the 24 traditional loans reviewed.

In addition, the Bank violated section 339.9(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.9(a), by failing to provide a Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance timely in 6 instances (3 violations in the 24 traditional loans reviewed and 3 violations in the 49 cross-collateralized loans reviewed).