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UPJITED STATES OF AMERICA 3EFORE THE BOARE OF GOVEKWORS OF THE F E D E L RESERVE SYSTEM WASHINGTON, D.C. In the Matter of Charles Kushner, An Institution-Affiliated Party of The NorCrown Trust, Livingston, New Jersey ) ) 1 1 ) 1 Docket No. 04-022-G-1 Consent Notice of Prohibition Pursuant to Section 8(g)(l)(A) of the Federal Deposit Insurance Act, as Amended ) WHEREAS, pursuant to Section 8(g)(l)(A) of the Federal Deposit Insurance Act, as amended (the “FDI Act”)(l2 U.S.C. § lXlS(g)(l)(A)), the Board of Governors of the Federal Reserve System (the “Board of Governors”) issues this consent Notice of Prohibition Pursuant to Section 8(g)(l)(A) of the FDI Act (the “Consent Notice“j against Charles Kushner (“Kushner”), an institution-affiliated party, as defmed inSections3(u)andS(b)(3)oftheFDIAct(12U.S,C. $8 1813(u)& 1818(b)(3))ofThe NoICrown Trust, an unregistered bank holding company, which owns or controls a majority of the voting shares of NorCrow Bank, Livingston, New Jersey (the “Bank“), a state non-member bank insured by the Federal Deposit Insurance Corporation; WHEREAS, Kushner was charged in a criminal complaint, dated July 12, 2004, filed in the United States District Court for the District of New Jersey, with felony violations of 18 U.S.C. 5 1513(e), and 18 U.S.C. 5 1503; WHEREAS, 18 U.S.C. $5 1513(e) and 1503 are each crimes referred to in Section S(g)(I j(A)(ij (12 i;.S.C. $ lSlS(~)(l)(A)(Cj)ofthe FDI ,4ct Bat x e pmkh&ble by imprisonment for a term exceeding one year under Federal law; WBEWAS, Xuzhner h s vciunixiiymipilrd as c h a i m m and director of the Bank,bur continues to serve as trustee of The NorCrown Trust, with the poive; to vote a majority ofthe shares of the Bank: WHEREAS, in li&t of the pending criminal charges set forth in the second WHEREAS clause, above, there are issues concerning whether the continued activities of Kushner as the trustee of The NorCrow Trust, which controls the Bank, may pose a threat to the interests of the Bank’s depositors, or may threaten to impair public confidence in the Bank or The NorCrown Trust; and WHEREAS, by a x i n g his signature hereunder, Kushner has coiisented to the issuance of this Consent Notice by the Board of Governors, has agreed to comply with each and every provision of this Consent Notice, and has waived a ~ and y all rights he might otherwise have pursuant to 12 U.S.C. § 1818 or 12 C.F.R. Part 263, OK other?k.ise: (a) to an informal hearing before the Board of Governors pursuant to Section 8(g)(3) (12 U.S.C, 5 1818(g)(3)) of the FDI Act, and Section 263.72 of the Rules of Practice (12 C.F.R. 5 263.72); (b) to obtain judicial review of this Consent Notice or any provision hereof; and (c) to challenge or contest in any manner the basis, issuance, validity, effectiveness or enforceability o f this Conscnt Notice or any provisions hereof NOW THEREFORE, without this consent Notice constituting an admission by Kusimer of any allegation made or implied by the Board of Governors, pursuant to Section S(g)(l)(A) (12 U.S.C. 5 1818(g)(l)(A) o f the FDI Act), and Section 263.71 ofthr Pales ofPracticr for Bearings ofthe Board of Governors (12 C.F.R, $ 363.71) (the “RLI~SS of Practice”), the Board of Governors hereby orders that this consentNotice of Sixpension be issued as follows: i KwFner is kereb'oy prolubiied from. a. voting any shares of the Bank iield by or on behaifaEThe NorCrown Trust; b. exercising anyothm functions or taking action as tmstee of The NorCrow Trust; or c. partxipation in any manner in the conduct ofthe affairs of The NorCrown Trust, except with the prior Written approval of the Board of Governors. 2. The prohibition set forth above shall remain in effect until the complaint referred to in the second WHEREAS clause above (or any superseding complaint. information or indictment containing charges of a similar nature) is finally disposed of or until modified, suspended, or terminated by the Board of Governors. 3. A copy of this Consent Notice shall be served upon The NorCrown Trust and the Bank. 4. Any violation of this Consent Notice shall subject Kushner to sanctions under Section 8 ofthe FDI Act (12. U.S.C 5. 1818); All communication regarding this Notice shall be addressed to: a. Richard M. Ashton Associate General Counsel Board of Governors of the Federal Reserve System 20" & c Sts., Nw Washington, DC 20551 b, Charles Kushner 30 Fawn Drive Livingston, NJ 3 6. 'ThisNotice shall not bar, estop or othenuise prevent the Board of Governors or any other US.federal or state agency or department from taking any other ation aecting Charles Kusushnrr or The NarCroum Trust. By Order of the Board o f Governors of the Federal Reseive System, effective 4 this23 day of August, 2004. Board of Governors of the Federal Reserve System _ r ' i 4