| (a) The formula for determining the amounts of penalties for a participating depository institution violation shall be based on the following factors: average weekly deposits, average asset base, number of previous violations, and number of days of a continuing violation. The penalty must be at least $100 per calendar day and cannot exceed $1,000 per calendar day. (b) The calculation of the penalty amount per calendar day of violation is as follows: (1) start with the amount set out in paragraph (5) of this subsection based on the participating depository institution's average weekly deposits as a percentage of the total weekly deposits in the pooled collateral program for that week; (2) add the amount based on participating depository institution's average asset base as reported on the year-end report of conditions set out in paragraph (5) of this subsection; (3) the base penalty is the sum of paragraph (1) plus (2) of this subsection. If the participating depository institution has had more than one violation in the state fiscal year, multiply the base penalty as follows: by two if for the second violation, and by three for three violations or more; (4) if there is a continuing violation after seven business days, increase the penalty by $100 per calendar day from the 8th business day through the 14th business day of the continued violation; and (5) if there is a continuing violation after fourteen business days, increase the penalty by $200 per calendar day. Attached Graphic |
