March 2, 2009
Kennebunk bank fined for violating flood act
By The Mainebiz News Staff
Kennebunk Savings Bank last month paid a $21,525 fine for violating the Flood Disaster Protection Act, according to a press release sent Friday by the Federal Deposit Insurance Corp.
The FDIC alleges that Kennebunk Savings Bank violated several statutes in the flood protection act, including making or renewing loans on buildings or mobile homes in special flood hazard areas without requiring that collateral be covered by sufficient flood insurance for the term of the loan, and for failing to notify borrowers that it was necessary to obtain sufficient flood insurance after policies lapsed.
The bank signed a consent agreement without admitting or denying the violations and agreed to pay the fine.
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