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WOW: dmi 2. NR 29-13951 NR 179-469 check. Mr. WEIL stated that he would attempt to locate further documentation to support the statement that Precision Valve Corporation had purchased the loan of CHARLES REBOZZO. On October 12, 1976, AUSA BART SCHWARTZ, SDNY, was advised that REBOZZO, in applying for the loan, had indicated on November 22, 1972, that the purpose of the loan was to purchase real estate. It was also brought to Mr. SCHWARTZ's attention that on the date that the check making payment on the loan to CHARLES REBOZZO on November 29, 1972, was issued to REBOZZO payable at the Key Biscayne Bank and Trust Company, in the amount of $225,000, the Hudson Valley National Bank received a money transfer from REBOZZO and the Key Biscayne Bank, payable to the account of the Precision Valve Corporation in the amount of $225,000. Mr. SCHWARTZ was also advised that a former officer of the bank, had stated that it was believed that the largest loan that the bank could issue at that time, based upon its capitalization, was $250,000, and that it was his personal recollection that prior to the issuance of the loan to CHARLES REBOZZO, a loan in the amount b7]C. of approximately $150,000 had been made to is in the amount of approximatel 150,000. ———— believed to be the £ the Precision Valve Corporation and in fs) he developments which followed the lending of the $225,000 to REBOZZO and the immediate transferring of these funds to the Precision Valve Corporation, the possibility existed that the bank was circumventing the limitations of its lending power based upon its capitalization. It also appeared that the statement as to the purpose of the loan was not true. Mr. SCHWARTZ advised that consideration would be given to the desirability issuing a subpoena duces tecum to ascertain whether or not dinbiin 33 the Precision OL, Valve Corporation had procured loans in the amount of approximately $150,000, which were running concurrent with the loan to REBOZ20O. eee + ee . 7