TN bank fined by Fed for violating federal flood insurance statute

A civil money penalty (CMP) of $12,000 for National Flood Insurance Act (NFI Act) violations was assessed against The Bank of Fayette County, a state member bank in Piperton, Tenn., by the Federal Reserve Board under an April 26 consent order, the Fed announced Tuesday.

The bank was cited for a “pattern or practice of violations” of the Fed’s Regulation H, which implements the NFI Act. The violations relate to section 102(f)(2) of the NFI Act; such violations can draw CMPs of up to $2,000 each.

Federal Reserve Board issues enforcement action with The Bank of Fayette County