Common use of BACKGROUND AND RECITALS Clause in Contracts

BACKGROUND AND RECITALS. 1. The parties enter into this Agreed Order to resolve the claims of the United States against First Merchants Bank under the FHA and ECOA. The United States contends that the Bank, through its residential real estate lending-related policies and practices, engaged in a pattern or practice of discrimination on the basis of race in violation of the FHA, 42 U.S.C. §§ 3604(a)- (b), 3605(a), and each of its respective implementing regulations, and ECOA, 15 U.S.C. §§ 1691(a)(1), 1691e(h). The claims are also based on the United States’ assertion that these policies and practices constitute a denial of rights granted by the FHA to a group of persons that raises an issue of general public importance. 42 U.S.C. § 3614(a). 2. First Merchants Bank is a full-service bank headquartered in Muncie, Indiana. It is wholly-owned by First Merchants Corporation, which is also based in Muncie. First Merchants Bank is subject to the regulatory authority of the Federal Deposit Insurance Corporation (“FDIC”). The Bank is also subject to federal laws governing fair lending, including the FHA and ECOA as well as each of their respective implementing regulations, 24 C.F.R. pt. 100 (FHA) and Regulation B, 12 C.F.R. pt. 1002 (ECOA). 3. On June 5, 2017, the United States notified First Merchants Bank that it had opened an investigation into whether the Bank’s lending practices in the Indianapolis-▇▇▇▇▇▇-▇▇▇▇▇▇▇▇, Indiana Metropolitan Statistical Area (“MSA”) constituted discrimination on the basis of race in violation of the FHA and ECOA. On May 20, 2019, the United States informed First Merchants Bank that based on its investigation, the Assistant Attorney General for the Civil Rights Division had authorized the filing of a complaint alleging that the Bank engaged in illegal redlining. Specifically, the United States alleged that the Bank engaged in illegal redlining in violation of the FHA and ECOA by avoiding and otherwise failing, on the basis of race, to provide mortgage credit services to majority-Black areas within Indianapolis-▇▇▇▇▇▇ County, Indiana between 2011 and 2017.‌ 4. First Merchants Bank denies any liability, wrongdoing, or non-compliance with the provisions of the FHA and ECOA. 5. First Merchants Bank has represented to the United States that it has made certain improvements to its internal fair lending compliance and monitoring controls and has made an effort to increase its lending in majority-Black areas within Indianapolis-▇▇▇▇▇▇ County through the development of new loan products, new marketing strategies, increased community investment, hiring of community lending specialists, strategic partnerships with local housing groups, and additional community outreach initiatives. The Bank has adopted these strategies and initiatives voluntarily and before entry of this Agreed Order. 6. There has been no factual finding or adjudication with respect to any matter alleged by the United States. The parties enter into this Agreed Order to avoid the risks, expense, and burdens of litigation and to voluntarily resolve the claims by the United States based on First Merchants Bank’s alleged violations of federal fair lending laws. 7. This Agreed Order is a compromise of disputed claims and is not an admission by First Merchants Bank of any liability, wrongdoing, or non-compliance with the provisions of the FHA or ECOA.

BACKGROUND AND RECITALS. 1. The parties enter into this Agreed Order to resolve the claims of the United States against First Merchants Bank under the FHA and ECOA. The United States contends that the Bank, through its residential real estate lending-related policies and practices, engaged in a pattern or practice of discrimination on the basis of race in violation of the FHA, 42 U.S.C. §§ 3604(a)- (b), 3605(a), and each of its respective implementing regulations, and ECOA, 15 U.S.C. §§ 1691(a)(1), 1691e(h). The claims are also based on the United States’ assertion that these policies and practices constitute a denial of rights granted by the FHA to a group of persons that raises an issue of general public importance. 42 U.S.C. § 3614(a). 2. First Merchants Bank is a full-service bank headquartered in Muncie, Indiana. It is wholly-owned by First Merchants Corporation, which is also based in Muncie. First Merchants Bank is subject to the regulatory authority of the Federal Deposit Insurance Corporation (“FDIC”). The Bank is also subject to federal laws governing fair lending, including the FHA and ECOA as well as each of their respective implementing regulations, 24 C.F.R. pt. 100 (FHA) and Regulation B, 12 C.F.R. pt. 1002 (ECOA). 3. On June 5, 2017, the United States notified First Merchants Bank that it had opened an investigation into whether the Bank’s lending practices in the Indianapolis-▇▇▇▇▇▇-▇▇▇▇▇▇▇▇, Indiana Metropolitan Statistical Area (“MSA”) constituted discrimination on the basis of race in violation of the FHA and ECOA. On May 20, 2019, the United States informed First Merchants Bank that based on its investigation, the Assistant Attorney General for the Civil Rights Division had authorized the filing of a complaint alleging that the Bank engaged in illegal redlining. Specifically, the United States alleged that the Bank engaged in illegal redlining in violation of the FHA and ECOA by avoiding and otherwise failing, on the basis of race, to provide mortgage credit services to majority-Black areas within Indianapolis-▇▇▇▇▇▇ Indianapolis-Marion County, Indiana between 2011 and 2017.‌2017. 4. First Merchants Bank denies any liability, wrongdoing, or non-compliance with the provisions of the FHA and ECOA. 5. First Merchants Bank has represented to the United States that it has made certain improvements to its internal fair lending compliance and monitoring controls and has made an effort to increase its lending in majority-Black areas within Indianapolis-▇▇▇▇▇▇ Indianapolis-Marion County through the development of new loan products, new marketing strategies, increased community investment, hiring of community lending specialists, strategic partnerships with local housing groups, and additional community outreach initiatives. The Bank has adopted these strategies and initiatives voluntarily and before entry of this Agreed Order. 6. There has been no factual finding or adjudication with respect to any matter alleged by the United States. The parties enter into this Agreed Order to avoid the risks, expense, and burdens of litigation and to voluntarily resolve the claims by the United States based on First Merchants Bank’s alleged violations of federal fair lending laws. 7. This Agreed Order is a compromise of disputed claims and is not an admission by First Merchants Bank of any liability, wrongdoing, or non-compliance with the provisions of the FHA or ECOA.

BACKGROUND AND RECITALS. 1. The parties enter into this Agreed Order to resolve the claims of the United States against First Merchants Bank under the FHA and ECOA. The United States contends that the Bank, through its residential real estate lending-related policies and practices, engaged in a pattern or practice of discrimination on the basis of race in violation of the FHA, 42 U.S.C. §§ 3604(a)- (b), 3605(a), and each of its respective implementing regulations, and ECOA, 15 U.S.C. §§ 1691(a)(1), 1691e(h). The claims are also based on the United States’ assertion that these policies and practices constitute a denial of rights granted by the FHA to a group of persons that raises an issue of general public importance. 42 U.S.C. § 3614(a). 2. First Merchants Bank is a full-service bank headquartered in Muncie, Indiana. It is wholly-owned by First Merchants Corporation, which is also based in Muncie. First Merchants Bank is subject to the regulatory authority of the Federal Deposit Insurance Corporation (“FDIC”). The Bank is also subject to federal laws governing fair lending, including the FHA and ECOA as well as each of their respective implementing regulations, 24 C.F.R. pt. 100 (FHA) and Regulation B, 12 C.F.R. pt. 1002 (ECOA). 3. On June 5, 2017, the United States notified First Merchants Bank that it had opened an investigation into whether the Bank’s lending practices in the Indianapolis-▇▇▇▇▇▇-▇▇▇▇▇▇▇▇, Indiana Metropolitan Statistical Area (“MSA”) constituted discrimination on the basis of race in violation of the FHA and ECOA. On May 20, 2019, the United States informed First Merchants Bank that based on its investigation, the Assistant Attorney General for the Civil Rights Division had authorized the filing of a complaint alleging that the Bank engaged in illegal redlining. Specifically, the United States alleged that the Bank engaged in illegal redlining in violation of the FHA and ECOA by avoiding and otherwise failing, on the basis of race, to provide mortgage credit services to majority-Black areas within Indianapolis-▇▇▇▇▇▇ County, Indiana between 2011 and 2017.‌2017. 4. First Merchants Bank denies any liability, wrongdoing, or non-compliance with the provisions of the FHA and ECOA. 5. First Merchants Bank has represented to the United States that it has made certain improvements to its internal fair lending compliance and monitoring controls and has made an effort to increase its lending in majority-Black areas within Indianapolis-▇▇▇▇▇▇ County through the development of new loan products, new marketing strategies, increased community investment, hiring of community lending specialists, strategic partnerships with local housing groups, and additional community outreach initiatives. The Bank has adopted these strategies and initiatives voluntarily and before entry of this Agreed Order. 6. There has been no factual finding or adjudication with respect to any matter alleged by the United States. The parties enter into this Agreed Order to avoid the risks, expense, and burdens of litigation and to voluntarily resolve the claims by the United States based on First Merchants Bank’s alleged violations of federal fair lending laws. 7. This Agreed Order is a compromise of disputed claims and is not an admission by First Merchants Bank of any liability, wrongdoing, or non-compliance with the provisions of the FHA or ECOA.