The Federal Reserve Board last week issued a cease-and-desist order against Zia New Mexico Bank of Tucumcari, N.M., demanding the $16 million- asset institution get up to speed on its year-2000 preparations.
The order, issued Dec. 7 and released last week, calls for Zia New Mexico to create plan to address date-change concerns and to designate a senior manager to supervise its year-2000 efforts. Within 45 days of the order date the bank must also identify customers at risk of year-2000 problems and come up with a contingency plan.
The regulator ordered Zia New Mexico's directors to meet at least once every two weeks to discuss the bank's year-2000 efforts, and to submit the minutes of these meetings for review by the Fed. The bank must also send a written progress report to its regulator each month.
The order, to which management agreed, does not call for anyone to step down. Nor does it explain why the bank is so far behind in its preparation.
The Fed's year-2000 order noted that Zia New Mexico remains under an unrelated regulatory order. Details of that one were not immediately available.