Fines assessed for flood insurance shortcomings, originating unsecured loans

A Mississippi bank was ordered to pay an $80,500 civil money penalty (CMP) for alleged violations of flood insurance requirements, the federal bank deposit insurance agency said Friday.

In making public enforcement actions taken in February, the Federal Deposit Insurance Corp. (FDIC) said it ordered Guaranty Bank and Trust Co. of Belzoni, Miss., to pay the CMP for violations of federal flood insurance requirements, including 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.

The bank entered into a consent agreement to pay the fine, the agency said.

Among other enforcement actions, the agency said it assessed a $7,000 CMP and a prohibition against a Kentucky banker, for allegedly originating unsecured loans and approving overdrafts to a customer of the bank.

The FDIC said that Robert Christopher Rodgers of The Citizens Bank in Hickman, Ky., consented to both the fine and the prohibition.

FDIC Makes Public February Enforcement Actions