ex10-2.htm


EXHIBIT 10.2


 



FEDERAL DEPOSIT INSURANCE CORPORATION







WASHINGTON, D.C.







AND







STATE OF ILLINOIS







DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION







DIVISION OF BANKING







SPRINGFIELD, ILLINOIS












 



	 	 	 
	  	)  	  
	
In the Matter of

	
)

	
STIPULATION AND CONSENT


	  	
)

	
TO THE ISSUANCE OF A


	
NORSTATES BANK

	
)

	
CONSENT ORDER


	
WAUKEGAN, ILLINOIS

	
)

	  
	  	
)

	  
	
(Illinois Chartered

	
)

	
FDIC-10-116b


	
 Insured Nonmember Bank)

	
)

	
DB NO. 2010-DB-33


	  	)  	  










Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER ("STIPULATION") by the Federal Deposit Insurance Corporation ("FDIC") and Illinois Department of Financial and Professional Regulation, Division of Banking (“Division”) it is hereby stipulated and agreed by and among representatives of the FDIC, Division, and NorStates Bank, Waukegan, Illinois, (“Bank”) as follows:


1.           The Bank has been advised of its right to receive a NOTICE OF CHARGES AND OF HEARING ("NOTICE") detailing the 


 




  





  











  






 


alleged unsafe or unsound banking practices and violations of law, rule or regulation alleged to have been committed by the Bank, and of its right to a hearing on the charges under Section 8(b) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b), and under 38 Ill. Adm. Code, Section 392 et seq., and Section 3-103 of the Illinois Administrative Review Act, 735 ILCS 5/3-103, regarding hearings before the Division, and has knowingly waived those rights;


2.           The Bank, solely for the purpose of this proceeding and without admitting or denying any of the alleged charges of unsafe or unsound banking practices or violations of law, rule or regulation, hereby consents and agrees to the issuance of a CONSENT ORDER ("ORDER") by the FDIC and the Division;


3.           The Bank further stipulates and agrees that such ORDER shall be deemed to be a consent order which has become final and unappealable, and that the ORDER shall become effective upon the date of issuance by the FDIC and the Division and fully enforceable by the FDIC and the Division pursuant to the provisions Section 8(i) of the Act, 12 U.S.C. § 1818(i), and Section 48(6)of the Illinois Banking Act, 205 ILCS 5/48 (6)(the “Illinois Act”), respectively, subject only to the conditions set forth in 


 




  





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paragraph 4 of this STIPULATION;


4.           In the event the FDIC and the Division accept this STIPULATION and issue the ORDER, it is agreed that no action to enforce the ORDER will be taken by the FDIC in the United States District Court or the appropriate Federal Circuit Court, or by the Division in the appropriate State Circuit Court, unless the Bank, any of its institution-affiliated parties, as that term is defined in Section 3(u) of the Act, 12 U.S.C.§ 1813(u), or any of its successors or assigns, has violated or is about to violate any provision of the ORDER;


5.    The Bank hereby waives:


(a)    The receipt of a NOTICE;


(b)           All defenses and counterclaims of any kind to this proceeding;


(c)   A hearing for the purpose of taking evidence on the allegations in the NOTICE;


(d)           The filing of proposed findings of fact and conclusions of law;


(e)           A recommended decision of an Administrative Law Judge; and


(f)           Exceptions and briefs with respect to such recommended decision.









  





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Dated this 9th day of April, 2010.


 


 




	
FEDERAL DEPOSIT INSURANCE 


CORPORATION, 

	 	 	
 NORSTATES BANK 


WAUKEGAN, ILLINOIS

	 
	
LEGAL DIVISION

	 	 	 	 
	 	 	 	By:	 
	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	
/s/Fred Abdula

	 
	
/s/Richard C. Rowley

	 	 	

Fred Abdula



	 
	
Richard C. Rowley

	 	 	


Chairman & Director





	 
	
Senior Regional Attorney

	 	 	
 

	 








 





	
 

	 	 	

/s/Kenneth W. Balza



	 
	
 

	 	 	

Kenneth W. Balza



	 
	 	 	 	
Director

	 







 


 









	
 

	 	 	

/s/Theodore A. Bertrand



	 
	
 

	 	 	
Theodore A. Bertrand

	 
	
 

	 	 	
Director

	 







 







	
STATE OF ILLINOIS 



DEPARTMENT OF FINANCIAL AND



	 	 	
 



/s/John H. Blumberg



	 
	
PROFESSIONAL REGULATION

	 	 	
John H. Blumberg 


Director

	 
	 	 	 	 	 
	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	
/s/Frank J. Furlan

	 
	

/s/Jorge A. Solis



	 	 	

Frank J. Furlan



	 
	
Jorge A. Solis

	 	 	

Director



	 
	
Director

	 	 	
 

	 
	Division of Banking	 	 	 	 













	
 

	 	 	

/s/James A. Hollensteiner



	 
	
 

	 	 	
James A. Hollensteiner

	 
	
 

	 	 	
Director

	 







 








 




	
 

	 	 	

/s/Allan J. Jacobs



	 
	
 

	 	 	
Allan J. Jacobs

	 
	
 

	 	 	
Director

	 







 








 




	
 

	 	 	

/s/Raymond M. Mota



	 
	
 

	 	 	
Raymond M. Mota

	 
	
 

	 	 	
Director

	 







 






 




  





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/s/Scott Yelvington



	 
	
 

	 	 	
Scott Yelvington

	 
	
 

	 	 	
President, CEO, & Director

	 
	 	 	 	 	 
	 	 	 	Comprising the Board of Directors of 	 
	 	 	 	NORSTATES BANK	 
	 	 	 	WAUKEGAN, ILLINOIS	 







 


 




  





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