Exception Tracking Spreadsheet (TicklerTrax™)
Downloaded by more than 1,000 bankers. Free Excel spreadsheet to help you track missing and expiring documents for credit and loans, deposits, trusts, and more. Visualize your exception data in interactive charts and graphs. Provided by bank technology vendor, AccuSystems. Download TicklerTrax for free.
Fed Board issues C&D order to Nano Banc and holding companies
The Board of Governors of the Federal Reserve System has issued an Order to Cease and Desist to Nano Banc and its holding companies, Allegiant United Holdings, LLC and Nano Financial Holdings, Inc., all of Irvine, California. According to the Order, the bank is operating without a permanent chief executive officer and chief financial officer, or a sufficient number of board members. In December 2021, the California Department of Financial Institutions ordered the bank's board to increase the number of directors to comply with state law.
The Fed Board's order requires that:
- Within 10 days, the holding companies and bank must propose qualified permanent executive officers to fill the role of chief executive officer, chief financial officer, and chief credit officer of the bank
- Within 10 days, the holding companies and bank must propose a sufficient number of qualified directors required under California law, with a majority being outside directors
- Nano Financial and the bank must provide the Reserve Bank of San Franciso 30 day's written notice before certain changes to their boards of directors or executive officers.
- The bank must submit a written plan to the Reserve Bank to enhance the bank's compliance with Regulation O and engage an independent third party acceptable to the Reserve Bank to identify and review all extensions of credit between insiders and the bank during the two years preceding the Order
- The bank must submit written lending and credit administration policies to the Reserve Bank
- Pending approval of the lending and credit administration policies by the Reserve Bank, the bank may not directly or indirectly approve, extend, modify or renew any "covered loan" without prior approval of the Reserve Bank. "Covered loans" comprises (i) loans classified as "loss," "doubtful," or "substandard" in the most recent Report of Examination; (ii) loans made to shareholders, senior executives, directors, and/or any entities which they control; (iii) commercial real estate loans; (iv) commercial and industrial loans; and (v) loan to finance commercial real estate, construction, and land development activities (not secured by real estate).
- The bank and its holding companies must act to ensure the bank complies with sections 23A and 23B of the Federal Reserve Act and with Federal Reserve Board Regulation W, and the bank must submit a written policy acceptable to the Reserve Bank regarding transactions between the holding companies and the bank. The holding companies and the bank must correct the violations of sections 23A and 23B and Regulation W cited in the most recent Report of Examination.
- The bank must take specified action with regard to compensation governance, policies, procedures and internal controls.