SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): March 4, 2003
COMMUNITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State of Incorporation)
000-16461
(Commission File No.)
63-0868361
(IRS Employer I.D. No.)
68149 Main Street
Blountsville, Alabama 35031
(Address of Principal Executive Office) (Zip code)
Registrant's telephone number, including area code: 205-429-1000
Item 5. Other events
COMMUNITY BANK, BLOUNTSVILLE, ALABAMA
CEASE AND DESIST ORDER SUMMARY
On March 4, 2003, the Board of Directors of Community Bank (the "Bank"), a
wholly owned subsidiary of the Company, and the Federal Deposit Insurance
Corporation (the "FDIC") entered into a Stipulation and Consent to the Issuance
of an Order to Cease and Desist (the "Consent Agreement"). The Order will become
effective 10 days from March 12, 2003, the date of its issuance. The FDIC
alleges in the Order to Cease and Desist (the "Order") deficiencies relating to
the Board's supervision over active management of the Bank, supervision and
control of lending to insiders and accurate maintenance of the Bank's books and
records. The FDIC characterizes these deficiencies as unsafe and unsound banking
practices. The Board has consented to the Order without admitting or denying
those allegations. Pursuant to the Order, the Board of the Bank has agreed to
cease and desist from conduct giving rise to the noted deficiencies and to:
(i) develop within 30 days of the effective date of the Order a written plan
specifying the responsibilities and lines of authority for the Bank's
executive officers and outlining internal controls to ensure compliance
with the plan;
(ii) refrain from making, renewing or modifying any loans to current or former
officers or directors without prior approval of the FDIC and the Alabama
State Banking Department;
(iii)amend the Bank's books and records to reflect the actual value of the
Bank's premises and fixed assets; and
(iv) supply a copy of the Order to the Company and provide the Company with a
summary of the Order for inclusion in the Company's next shareholder
communication.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized, in the city of Blountsville, State of
Alabama.
COMMUNITY BANCSHARES, INC.
---------------------------
(Registrant)
Date: March 14, 2003 /s/ Kerri C. Kinney
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BY: Kerri C. Kinney
ITS: Chief Financial Officer