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<P style="font-size: 14pt" align="center"><B>UNITED STATES</b><BR><b>SECURITIES AND
EXCHANGE COMMISSION</b><BR><b><FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): &nbsp;May 26, 2009</B>


<P style="font-size: 24pt" align="center"><B>CORTLAND BANCORP</B><BR><FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
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  <TD width="32%">&nbsp;</TD>
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  <TD style="border-bottom: #000000 1px solid"><B>Ohio</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>000-13814</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>34-1451118</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
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  <TD style="border-bottom: #000000 1px solid"><B>194 West Main Street,
Cortland, Ohio <BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>44410</B></TD>
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 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
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<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(330) 637-8040</B>
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  <TD style="border-bottom: #000000 1px solid" nowrap><B>Not
Applicable<BR>
</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

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<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>



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<P style="font-size: 10pt" align="left">Item&nbsp;1.01. Entry into a Material
Definitive Agreement.

<P style="font-size: 10pt" align="left">As disclosed under Item&nbsp;5 of the
Form&nbsp;10Q filing for the quarter ended March&nbsp;31, 2009, Cortland
Bancorp and the Cortland Savings and Banking Company, in May&nbsp;2009, were
presented with an informal memorandum of understanding.

<P style="font-size: 10pt" align="left">On May&nbsp;26, 2009, Cortland Bancorp
(CLDB)&nbsp;and The Cortland Savings and Banking Company (Cortland Banks), a
wholly-owned subsidiary of CLDB, adopted a resolution authorizing President and
Chief Executive Officer Lawrence A. Fantauzzi to enter into the Memorandum of
Understanding (MOU)&nbsp;with the Federal Reserve Bank of Cleveland (Federal
Reserve). The MOU requires CLDB and Cortland Banks to obtain the Federal
Reserve&#8217;s approval prior to: (i)&nbsp;incurring any debt; (ii)
repurchasing any of its stock; or (iii)&nbsp;paying any dividends.

<P style="font-size: 10pt" align="left">The MOU also requires Cortland Banks,
within specified timeframes, to submit the following plans to the Federal
Reserve for its approval: (i)&nbsp;a plan to strengthen and improve management
of the overall risk exposure of the investment portfolio; and (ii)&nbsp;a plan
to maintain an adequate capital position.

<P style="font-size: 10pt" align="left">The provisions of the MOU shall remain
effective and enforceable until stayed, modified, terminated or suspended by
the Federal Reserve.

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
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<P style="font-size: 10pt" align="center">SIGNATURES

<P style="font-size: 10pt; text-indent: 4%" align="left">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.

<P style="font-size: 10pt; margin-left: 45%" align="left">CORTLAND BANCORP

<P style="font-size: 10pt; margin-left: 45%" align="left">By: <U>/s/Lawrence A.
Fantauzzi&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Lawrence
A. Fantauzzi, President<BR>


<P style="font-size: 10pt" align="left">Date: May&nbsp;26, 2009

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
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{"company-data": {"conformed-name": "CORTLAND BANCORP INC", "cik": "0000774569", "assigned-sic": "6035", "irs-number": "341451118", "state-of-incorporation": "OH", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-13814", "film-number": "09857580"}, "business-address": {"street1": "194 W MAIN ST", "city": "CORTLAND", "state": "OH", "zip": "44410", "phone": "2166378040"}, "mail-address": {"street1": "194 WEST MAIN STREET", "city": "CORTLAND", "state": "OH", "zip": "44410"}}
Form 8-K
UNITED STATES
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):  May 26, 2009
CORTLAND BANCORP
(Exact name of registrant as specified in its charter)
Ohio
000-13814
34-1451118
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
194 West Main Street,
Cortland, Ohio
44410
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number,
including area code:
(330) 637-8040
Not
Applicable
(Former name or former address if changed since last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material
Definitive Agreement.
As disclosed under Item 5 of the
Form 10Q filing for the quarter ended March 31, 2009, Cortland
Bancorp and the Cortland Savings and Banking Company, in May 2009, were
presented with an informal memorandum of understanding.
On May 26, 2009, Cortland Bancorp
(CLDB) and The Cortland Savings and Banking Company (Cortland Banks), a
wholly-owned subsidiary of CLDB, adopted a resolution authorizing President and
Chief Executive Officer Lawrence A. Fantauzzi to enter into the Memorandum of
Understanding (MOU) with the Federal Reserve Bank of Cleveland (Federal
Reserve). The MOU requires CLDB and Cortland Banks to obtain the Federal
Reserve's approval prior to: (i) incurring any debt; (ii)
repurchasing any of its stock; or (iii) paying any dividends.
The MOU also requires Cortland Banks,
within specified timeframes, to submit the following plans to the Federal
Reserve for its approval: (i) a plan to strengthen and improve management
of the overall risk exposure of the investment portfolio; and (ii) a plan
to maintain an adequate capital position.
The provisions of the MOU shall remain
effective and enforceable until stayed, modified, terminated or suspended by
the Federal Reserve.
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.
CORTLAND BANCORP
By:
/s/Lawrence A.
Fantauzzi
Lawrence
A. Fantauzzi, President
Date: May 26, 2009