A former president and director of an east Texas bank has been banned from banking and fined $7,500 by the Office of the Comptroller of the Currency.
Marshall Dear's agreement with regulators also subjects the ex-banker to an unusual stipulation.
Mr. Dear, who was also chief executive of the bank, First National Bank of New Boston, must personally participate in a loan on its books to one David Ruff.
He agreed to pony up $12,400 for the participation and to forgo receiving any interest on the deal until Mr. Ruff's debt to the bank returns to performing status.
OCC officials would not comment on the details of the arrangement, and bank officials could not be reached for comment.
The OCC ordered Mr. Dear to offer First National the $12,400 as a participation in one of two loans to Mr. Ruff. Mr. Dear would not be paid back his $12,400 until another loan to Mr. Ruff is full paid.
If the bank accepts the terms of the offer, Mr. Dear will have five days to send in the money. If the offer is refused, Mr. Dear must simply pay the bank $12,400, according to the agreement with the comptroller.
First National Bank of New Boston was bought by First Commercial Corp., Little Rock, in 1994.
Under the terms of the banking ban, Mr. Dear may still vote any shares he still owns in an institution for the purpose of approving or rejecting a transaction involving the bank. He may not vote for a director, however.
He may accept a position at a particular bank if he obtains prior written approval from the Comptroller and the institution's regulator.
Although Mr. Dear waived his right to a hearing by agreeing to the fine and the ban , he neither admitted nor denied the charges against him, according to the agreement.
