Former

Commerce Bancorp

founder Vernon Hill agreed to a settlement with federal regulators Monday in which he agreed to curtail real estate deals with banks and pay $4 million to his bank's new owners,

TD Bank

(TD) - Get Report

.

The consent cease and desist order with the Office of the Comptroller of the Currency restricts Hill's future real estate transactions "with any associated insured depository institution, holding company or any of their subsidiaries or affiliates," according to an agency press release.

Hill left Commerce in June 2007 as part an agreement the company made with OCC and

Federal Reserve

Bank of Philadelphia regulators tied to an investigation scrutinizing insider-related party transactions between Hill and others. The probe included Commerce's use of an architectural firm, InterArch, owned by Hill's wife to design branch offices.

The Cherry Hill, N.J.-based Commerce was sold last year to TD Bank for $8.5 billion.

Hill will be required to report future transactions to the board and audit committee of the institution involved in the transaction, it said.

Additionally, when Hill is an officer, director or major shareholder of a firm, he must obtain an independent opinion that the transaction is fair.

Late last year, Hill and co-founder Gary Townsend, who spent seven years as a chief examiner of the Federal Home Loan Bank system, founded private equity firm Hill-Townsend Capital. The firm invests in mid-size banking institutions.