OCC UCE Deck 3 Exam with Answers 100% Verified /Graded A+/

OCC UCE Deck 3 Exam with Answers
100% Verified /Graded A+/
What law governs loans to executive officers for banks ✔✔ 12 USC 375a

Is it required for every bank to have a written policy regarding insider transactions ✔✔ yes

what are some characteristics of a formal agreement ✔✔ 1. most common type of public/formal
agreement 2. The formal action has articles that must be met 3. The agreement describes restrictions
and remedial actions the bank must take 4. this agreement is written by the OCC and signed by the
board 5. formal agreements are not enforceable through the courts but may provide a legal basis for
additional enforcement actions and CMP's 6. willful violation of formal agreement is not grounds for
receivership



Is a formal agreement enforceable in federal court ✔✔ no



does a formal agreement allow the OCC to assess CMPs ✔✔ yes



Is a temporary cease and desist order formal or informal, and public or non public ✔✔ formal action and
not public except for the related notice of charges



name some characteristics of a temporary cease and desist order ✔✔ 1. issued pursuant to 12 USC 1818
following filing of notice of charges 2. issued when bank engages in unsafe or unsound practice and the
violation or practice could create insolvency or significant dissipation of banks earnings or capital 3. also
issued if banks records are so incomplete or inaccurate that the OCC is unable to determine the financial
condition 4. order is issued by the OCC through the federal court system



Does a temporary cease and desist order allow the OCC to impose CMPs ✔✔ yes



Does the temporary cease and desist order go through the federal court system ✔✔ yes



Is a capital directive a formal or informal action and public or non public ✔✔ formal action and public



name some characteristics of the capital directive ✔✔ 1. This is the next step if the bank fails to meet
conditions listed in the informal IMCR 2. OCC sends the bank of a notice of intent to issue the capital

, directive 3. bank has 30 days to respond 4. rarely issued because most banks with deficient capital have
other deficiencies that also need addressed and are normally part of another formal agreement



can a capital directive be used by the occ in federal court ✔✔ yes, the capital directive has the same full
force of a cease and desist order



can the occ issue cmp's for failure to comply with a capital directive ✔✔ yes



is a capital directive grounds for receivership ✔✔ a capital directive is not grounds for receivership on its
own



is a cease and desist order formal or informal and public or non public ✔✔ formal and public



name some characteristics of a formal agreement ✔✔ 1. this is the final order issued pursuant to 12 USC
1818 2. issued when bank is engaged is unsafe or unsound practice 2. could require bank to make
restitution 3. could restrict asset growth, dispose of a loan or asset, rescind an agreement or contract,
employee qualified officers and employees 4. imposed on an involuntary basis after issuance of notice of
charges



is a cease and desist enforceable in court ✔✔ yes



does a cease and desist order allow the occ to impose cmps ✔✔ yes



does a cease and desist order allow the occ to issue demands for restitution ✔✔ yes



does a cease and desist order allow the Occ to restrict asset growth or make the bank dispose of an asset
✔✔ yes



is a cease and desist order grounds for receivership ✔✔ yes



Is a prompt corrective action directive a formal or informal agreement and public or non public ✔✔
formal and public