Bank of New Glarus pays $9,375 flood penalty

The FDIC issued a consent order for the payment of a $9,375 civil money penalty to THE BANK OF NEW GLARUS, New Glarus, Wisconsin, after determining that the bank had engaged in a pattern or practice of committing violations of the Flood Disaster Protection Act, the notice requirements under section 1364 of the National Flood Insurance Act, and Part 339 of the FDIC's Rules and Regulations, detailed as follows:

• section 339.3(a) of the FDIC Rules and Regulations, 12 C.F.R. 339.3(a), by failing to obtain flood insurance on a building securing a designated loan at the time of the origination of two (2) loans;
• section 339.3(a) of the FDIC Rules and Regulations, 12 C.F.R. 339.3(a), by failing to obtain adequate flood insurance at the time of origination of seven (7) loans;
• section 339.7 of the FDIC Rules and Regulations, 12 C.F.R. § 339.7, by failing to follow force placement flood insurance procedures for one (1) loan;
• section 339.9(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.9(a), by failing to provide to borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance when making, increasing, extending, or renewing a loan on four (4) occasions; and
• section 339.9(c) of the FDIC Rules and Regulations, 12 C.F.R. § 339.9(c), by failing to provide to borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance within a reasonable time before the completion of the transaction on one (1) loan.