The Federal Reserve Board and Security Pacific Bancorp entered into a written agreement Thursday barring dividend payments and restricting debt.

The agreement prevents Security Pacific's Security Pacific Bank from declaring dividends or making "any other form of payment representing a reduction in capital" without Fed approval.

The $590 million-asset Los Angeles bank also cannot increase or guarantee debt or buy or redeem shares of its stock without Fed permission.

The central bank also required Security Pacific to submit a plan to better manage capital within 60 days. A new credit risk management plan is due within 90 days.

Security Pacific has been hurt by the housing decline in California. It took a $26.8 million provision against losses in the first quarter.

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