Legal experts say punishment meted out to a Maine bank for selling fraudulently documented loans to Freddie Mac was particularly severe for so small an institution.

First National Bank of Bar Harbor, a five-branch bank with $115 million in assets, will have to pay a $1 million fine - one-10th of its capital. In addition, the chief executive and most of the 11-member board were forced to resign as part of the settlement of criminal and civil charges resulting from a four-year investigation by the Maine U.S. attorney.

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