9 Specific Reserves 17. CenTrust immediately shall establish specific reserves in an amount equal to the market losses on all defaulted securities and report such specific reserves on its September 30. 1989 financial statements. CenTrust also shall ensure that all other appropriate reserves are established. Subordinated Debt 18. CenTrust shall not issue or sell any subordinated debt without the prior written approval of the District Director. DEFINITIONS 19. All technical words or terms used in this Order, for which meanings are not specified or otherwise provided by the provisions of this Order, shall, insofar as applicable, have meaning as defined in the Code of Federal Regulations, title 12, chapter V; or as defined in FIRREA; and any such words or terms undefined in the Code of Federal Regulations and in FIRREA shall have meanings that accord with the best custom and usage in the savings and loan industry. EFFECTIVENESS 20. This Order is effective immediately. 21. This Order shall remain effective and enforceable pending completion of proceedings against CenTrust pursuant to Section 8(b) of the FDIA as amended FIRREA, and until such time as the OTS shall dismiss such proceedings or, if a final Order is issued in such proceedings, until the effective date of any such Order. 83-009 0-95-27 Enforcement Review Committee Posena Stewart Rosemary Stewart Director of Enforcement and Service is hereby made of Enforcement Review Committee Resolution No. ERC-89-149, dated December 8, 1989, the accompanying Notice of Charges and Hearing, and the accompanying Temporary Order to Cease and Desist, approved and issued by such resolution. The Temporary Order to Cease and Desist is, by its teras, effective immediately. You have twenty (20) days in which to file an Answer to the Notice of Charges, pursuant to 12 C.F.. $ 509.14, republished at 54 Fed. Reg. 49411, 49450 (November 30, 1989). In accordance with 12 C.F.R. SS 509.9 to 509.11, republished at 54 Fed. Reg. 49411, 49449 (November 30, 1989), you must file an original and one copy of the Answer with: In addition, you must serve one copy of the Answer upon: Director of Enforcement Office of Thrift Supervision -U. S. Department of the Treasury 1700 G Street, N.W. Washington, DC 20552 Yours sincerely, Rosemary Stewent Rosemary Stewart Director of Enforcement and Secretary, Enforcement Review OFFICE OF THRIFT SUPERVISION WHEREAS, CenTrust No. ERC-89-149 Dated: December 8, 1989 Bank, a State Savings Bank, Miami, Florida ("CenTrust"), is a state savings association within the meaning of Section 3 of the Federal Deposit Insurance Act as amended by Section 301 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Pub. L. No. 101-73, 101 Stat. 183, 277 ("FIRREA"), to be codified at 12 U.S.c. § 1464; and WHEREAS, the Office of Thrift Supervision, a bureau within the United States Department of the Treasury, is the appropriate Federal banking agency with jurisdiction over state savings associations, as provided in Section 3(q) of the Federal Deposit Insurance Act as amended by Section 204(f) (4) of FIRREA, to be codified at 12 U.S.c. s 1813(q); and WHEREAS, the Director of the Office of Thrift Supervision has delegated to the Enforcement Review Committee ("ERC") the authority to issue Notices and Temporary Orders pursuant to Section 8 of the Federal Deposit Insurance Act as amended by FIRREA, to be codified at 12 U.S.c. S 1818; and WHEREAS, the ERC has reviewed a proposed Notice of Charges and Hearing to be issued against CenTrust, and a recommendation from the Enforcement staff of the Office of Thrift Supervision, and supporting documentation; WHEREFORE the ERC finds reasonable cause to believe that CenTrust or its directors, officers, employees, or agents have engaged, are engaging, Or are about to engage in unsafe or unsound practices, or violations of applicable law, rule, or regulation; and WHEREFORE the ERC finds that. CenTrust's unsafe or unsound practices, violations of applicable law, rule, or regulation, or the continuation thereof, alleged in the proposed Notice of Charges and Hearing, are likely to cause significant dissipation of the assets or earnings of CenTrust, or are likely to weaken the condition of CenTrust or otherwise prejudice the interests of its depositors prior to the completion of proceedings conducted pursuant to Section 8(b)(1) of the Federal Deposit Insurance Act as amended by FIRREA, to be codified at 12 U.S.C. § 1818(e)(1), or that the books and records of CenTrust are so incomplete with respect to certain expenses and certain transactions specified in the Notice of Charges that OTS is unable, through the normal supervisory process, to determine the financial condition of CenTrust or the details or purposes of certain transactions that may have a material effect on the financial condition of CenTrust; NOW, THEREFORE, IT IS RESOLVED that the said Notice of Charges and Hearing is approved and issued. The Secretary of the ERC is directed to execute said Notice and to serve or designate some suitable person to serve a copy of it, with this resolution, upon Centrust in the manner provided by the Regulations of the office of Thrift Supervision. Following the issuance and service of said Notice, the Enforcement staff is authorized to negotiate with CenTrust for the purpose of obtaining its consent to the issuance of a final Order to Cease and Desist. AND IT IS FURTHER RESOLVED that the said Temporary Order to Cease and Desist is approved and issued. The Secretary of the ERC is directed to execute said order and to serve a copy of it upon Centrust in the manner provided by the Regulations of the office of Thrift Supervision. Enforcement Review Committee Roures, Stewent Rosemary Stewart Director of Enforcement and |