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Security State Bank pays $6K flood insurance penalty

Farwell, TX
07/13/2022
Fine Amount: 
$6,000
Issued by: 

Security State Bank, Farwell, Texas, was assessed a $6,000 civil money penalty by the FDIC on July 13, 2022, after the FDIC found that the had engaged in a pattern or practice of—

  • six violations of section 102(b)(1) of the Flood Disaster Protection Act and section 339.3(a) of the FDIC Rules and Regulations, for failure to obtain flood insurance or obtain an adequate amount of insurance coverage, at or before loan origination, for all structures in a flood zone, including multiple structures; and
  • four violations of section 1364(a)(1) of the National Flood Insurance Act of 1968, as amended, and section 339.9(c) of the FDIC Rules and Regulations, for failure to timely provide a Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance to the borrower.

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