State Codes and Statutes

Statutes > California > Fin > 8200-8202

FINANCIAL CODE
SECTION 8200-8202



8200.  The commissioner may issue cease and desist orders which may
order affirmative action in accordance with the following:
   (a) If the commissioner, as a result of any examination or from
any report, finds or has reasonable cause to believe (1) that any
savings association, savings and loan holding company or any of their
subsidiaries, or an institution-affiliated party, (A) is violating
or has violated any provision of this division or the laws of this
state or of the United States or any order, regulation, or any
condition imposed in writing by the commissioner in connection with
the granting of any application of an association or any written
agreement entered into with the commissioner or (B) is engaging or
has engaged in an unsafe or unsound business practice, or (2) that an
association, savings and loan holding company, or any of their
subsidiaries are maintaining books and records that are so incomplete
and inaccurate that the commissioner is unable, through the normal
supervisory process, to determine their financial condition or the
details or purpose of any transaction that may have a material effect
on their financial condition, the commissioner may issue a formal
written order to be served by delivery to the home office of the
association or to the person named in the order. The order shall
state the alleged violation or practice and state the facts in
support of the allegation, and shall order discontinuance of the
violation or practice and order conformance with all requirements of
law. The commissioner may require the association or other named
person to take affirmative action (A) to prevent the insolvency or
dissipation of assets of the association, or (B) to restore the books
and records to a complete and accurate state.
   (b) The authority of the commissioner to issue orders to correct
any conditions resulting from any violation or practice includes the
authority to require the person named in the order to do any of the
following:
   (1) Make restitution or provide reimbursement, indemnification, or
guarantee against loss if (A) the person named in the order was
unjustly enriched in connection with the violation or practice or (B)
the violation or practice involved a reckless disregard for any
state or federal statute or applicable regulations or prior order of
the commissioner.
   (2) Restrict the growth of the association.
   (3) Dispose of any loan or asset involved.
   (4) Rescind agreements or contracts.
   (5) Employ qualified officers or employees (who may be subject to
prior approval of the commissioner at his or her direction).
   (6) Take such other action as the commissioner determines to be
appropriate.
   (c) The authority to issue orders includes the authority to place
limitations on the activities or functions of the person named in the
order.
   (d) The order shall specify an effective date, which may be
immediate or may be at a later date, and shall remain in effect until
withdrawn by the commissioner or until terminated by a court order.
   (e) Any association or person affected by an order of the
commissioner may apply within 10 days after service of the order to a
court having jurisdiction for an immediate hearing and may request a
stay of the order until the hearing has been completed. The hearing
shall be held as provided in a notice to the commissioner by the
court.
   (f) The commissioner may, on or after the effective date of the
order, apply for enforcement of the order to the superior court in
the county in which the home office of the association or the person
is located. The order shall be enforced ex parte and without notice
by the court. The proceedings shall be given precedence over other
cases pending in court, and shall in every way be expedited.
   (g) Whether upon application by the commissioner or by the person
named in the order, the court shall have jurisdiction, shall
adjudicate the question, and shall enter and enforce the proper order
or orders.


8201.  (a) Whenever the commissioner determines that any
institution-affiliated party or any director, officer, or employee of
a savings and loan holding company or affiliate thereof has
committed any of the following violations, engaged or participated in
any of the following unsafe or unsound practices, or committed any
of the following breaches of fiduciary duty that meet the additional
criteria of subdivision (b), the commissioner may serve upon that
person a written notice of the commissioner's intent to order the
removal of the person from his or her office or employment or to
prohibit any further participation (in any manner) in the conduct of
the affairs of any savings association, or both:
   (1) Violation of any statute or regulation, any cease and desist
order which has become final, any condition imposed in writing by the
commissioner in connection with the grant of any application or
other request by the savings association or any written agreement
between the savings institution and the commissioner.
   (2) Engaging or participating in any unsafe or unsound practice in
connection with any savings association.
   (3) Committing or engaging in any act, omission, or practice which
constitutes a breach of the person's fiduciary duty.
   (b) A violation, practice, or breach specified in subdivision (a)
is subject to the commissioner's authority under this section if the
commissioner finds both of the following:
   (1) By reason of the violation, practice, or breach (A) the
savings association has suffered or will probably suffer financial
loss or other damage (B) the interests of the savings association's
depositors have been or could be prejudiced, or (C) the
institution-affiliated party or other person specified in subdivision
(a) has received financial gain or other benefit by reason of the
violation, practice, or breach.
   (2) The violation, practice, or breach (A) involves personal
dishonesty on the part of the institution-affiliated party or other
person specified in subdivision (a) or (B) demonstrates willful or
continuing disregard by the institution-affiliated party or other
person for the safety or soundness of the savings institution.
   (c) The written notice shall contain a full statement of the
alleged violations, practices, or breaches of fiduciary duty, shall
state the facts alleged in support of the violation, practice or
breach, and shall state the commissioner's intention to enter a
removal or prohibition order, or both. The notice shall be delivered
to the board of directors of the association, savings and loan
holding company, or subsidiary, and to the institution-affiliated
party or other director, officer, or employee concerned. If a hearing
on the matter is requested within 10 days after service of the
written notice, the commissioner shall hold a public hearing at which
any pertinent evidence relating to the matters set forth in the
written notice may be presented. After the hearing, the commissioner,
on the basis of the evidence presented at the hearing, may proceed
to enter (1) an order for the immediate removal of the
institution-affiliated party or director, officer, or employee
affected, (2) an order prohibiting further participation by the
person, in any manner, in the conduct of the affairs of any savings
association, (3) a reprimand of the individuals and entities or other
persons concerned, or (4) a dismissal of the entire matter.
   (d) If no hearing is requested within the time specified, the
commissioner may proceed to issue orders of removal, prohibition, or
both on the basis of the facts set forth in the written notice.
   (e) No institution-affiliated party or director, officer, or
employee who has been removed from his or her position pursuant to a
removal order that has become final, shall thereafter participate in
any manner in the conduct of the affairs of the savings association
from or with respect to which that director, officer, or employee was
removed, or without prior written approval of the commissioner,
serve as a director, officer, or employee of any other savings
association. No institution-affiliated party, including an officer,
director, or employee, who is subject to an order of prohibition
which has become final shall thereafter participate, in any manner,
in the conduct of the affairs of any savings association.
   (f) In respect to any officer, director, or employee of a savings
association, savings and loan holding company or subsidiary thereof
who is the subject of a written notice served by the commissioner
pursuant to subdivision (a), the commissioner may, if the
commissioner deems it necessary for the protection of the savings
association or the interests of the association's depositors, by
written notice to that effect served upon the officer, director,
employee, suspend him or her from office or prohibit him or her from
further participation in any manner in the conduct of the affairs of
the savings association or related entity, or take both these
actions. The suspension or prohibition shall become effective upon
service of the notice and, unless stayed by the court in proceedings
authorized by subdivision (g), shall remain in effect pending
completion of the proceedings pursuant to the written notice served
under subdivision (a) and until the effective date of an order
entered by the commissioner under subdivision (c) or (d). Copies of
the notice shall also be served upon the savings association, savings
and loan holding company, or subsidiary of which the person is a
director, officer, or employee.
   (g) Within 10 days after any director, officer, or employee has
been suspended from office or prohibited from participation in the
conduct of the affairs of a savings association, savings and loan
holding company, or subsidiary thereof under subdivision (f), the
director, officer, or employee may apply to a court having
jurisdiction for a stay of the suspension or prohibition pending
completion of the proceedings pursuant to subdivision (c), and the
court shall have power to stay the suspension or prohibition.




8202.  (a) The commissioner shall publish and make the following
available to the public:
   (1) Any final order issued with respect to any administrative
enforcement proceeding initiated by the commissioner pursuant to this
division or any other provision of law.
   (2) Any modification to, or termination of, any final order
specified in paragraph (1).
   (b) If the commissioner makes a determination in writing that the
publication of any final order pursuant to subdivision (a) would
seriously threaten the safety or soundness of a savings association,
the commissioner may delay the publication of the order for a
reasonable time.

State Codes and Statutes

Statutes > California > Fin > 8200-8202

FINANCIAL CODE
SECTION 8200-8202



8200.  The commissioner may issue cease and desist orders which may
order affirmative action in accordance with the following:
   (a) If the commissioner, as a result of any examination or from
any report, finds or has reasonable cause to believe (1) that any
savings association, savings and loan holding company or any of their
subsidiaries, or an institution-affiliated party, (A) is violating
or has violated any provision of this division or the laws of this
state or of the United States or any order, regulation, or any
condition imposed in writing by the commissioner in connection with
the granting of any application of an association or any written
agreement entered into with the commissioner or (B) is engaging or
has engaged in an unsafe or unsound business practice, or (2) that an
association, savings and loan holding company, or any of their
subsidiaries are maintaining books and records that are so incomplete
and inaccurate that the commissioner is unable, through the normal
supervisory process, to determine their financial condition or the
details or purpose of any transaction that may have a material effect
on their financial condition, the commissioner may issue a formal
written order to be served by delivery to the home office of the
association or to the person named in the order. The order shall
state the alleged violation or practice and state the facts in
support of the allegation, and shall order discontinuance of the
violation or practice and order conformance with all requirements of
law. The commissioner may require the association or other named
person to take affirmative action (A) to prevent the insolvency or
dissipation of assets of the association, or (B) to restore the books
and records to a complete and accurate state.
   (b) The authority of the commissioner to issue orders to correct
any conditions resulting from any violation or practice includes the
authority to require the person named in the order to do any of the
following:
   (1) Make restitution or provide reimbursement, indemnification, or
guarantee against loss if (A) the person named in the order was
unjustly enriched in connection with the violation or practice or (B)
the violation or practice involved a reckless disregard for any
state or federal statute or applicable regulations or prior order of
the commissioner.
   (2) Restrict the growth of the association.
   (3) Dispose of any loan or asset involved.
   (4) Rescind agreements or contracts.
   (5) Employ qualified officers or employees (who may be subject to
prior approval of the commissioner at his or her direction).
   (6) Take such other action as the commissioner determines to be
appropriate.
   (c) The authority to issue orders includes the authority to place
limitations on the activities or functions of the person named in the
order.
   (d) The order shall specify an effective date, which may be
immediate or may be at a later date, and shall remain in effect until
withdrawn by the commissioner or until terminated by a court order.
   (e) Any association or person affected by an order of the
commissioner may apply within 10 days after service of the order to a
court having jurisdiction for an immediate hearing and may request a
stay of the order until the hearing has been completed. The hearing
shall be held as provided in a notice to the commissioner by the
court.
   (f) The commissioner may, on or after the effective date of the
order, apply for enforcement of the order to the superior court in
the county in which the home office of the association or the person
is located. The order shall be enforced ex parte and without notice
by the court. The proceedings shall be given precedence over other
cases pending in court, and shall in every way be expedited.
   (g) Whether upon application by the commissioner or by the person
named in the order, the court shall have jurisdiction, shall
adjudicate the question, and shall enter and enforce the proper order
or orders.


8201.  (a) Whenever the commissioner determines that any
institution-affiliated party or any director, officer, or employee of
a savings and loan holding company or affiliate thereof has
committed any of the following violations, engaged or participated in
any of the following unsafe or unsound practices, or committed any
of the following breaches of fiduciary duty that meet the additional
criteria of subdivision (b), the commissioner may serve upon that
person a written notice of the commissioner's intent to order the
removal of the person from his or her office or employment or to
prohibit any further participation (in any manner) in the conduct of
the affairs of any savings association, or both:
   (1) Violation of any statute or regulation, any cease and desist
order which has become final, any condition imposed in writing by the
commissioner in connection with the grant of any application or
other request by the savings association or any written agreement
between the savings institution and the commissioner.
   (2) Engaging or participating in any unsafe or unsound practice in
connection with any savings association.
   (3) Committing or engaging in any act, omission, or practice which
constitutes a breach of the person's fiduciary duty.
   (b) A violation, practice, or breach specified in subdivision (a)
is subject to the commissioner's authority under this section if the
commissioner finds both of the following:
   (1) By reason of the violation, practice, or breach (A) the
savings association has suffered or will probably suffer financial
loss or other damage (B) the interests of the savings association's
depositors have been or could be prejudiced, or (C) the
institution-affiliated party or other person specified in subdivision
(a) has received financial gain or other benefit by reason of the
violation, practice, or breach.
   (2) The violation, practice, or breach (A) involves personal
dishonesty on the part of the institution-affiliated party or other
person specified in subdivision (a) or (B) demonstrates willful or
continuing disregard by the institution-affiliated party or other
person for the safety or soundness of the savings institution.
   (c) The written notice shall contain a full statement of the
alleged violations, practices, or breaches of fiduciary duty, shall
state the facts alleged in support of the violation, practice or
breach, and shall state the commissioner's intention to enter a
removal or prohibition order, or both. The notice shall be delivered
to the board of directors of the association, savings and loan
holding company, or subsidiary, and to the institution-affiliated
party or other director, officer, or employee concerned. If a hearing
on the matter is requested within 10 days after service of the
written notice, the commissioner shall hold a public hearing at which
any pertinent evidence relating to the matters set forth in the
written notice may be presented. After the hearing, the commissioner,
on the basis of the evidence presented at the hearing, may proceed
to enter (1) an order for the immediate removal of the
institution-affiliated party or director, officer, or employee
affected, (2) an order prohibiting further participation by the
person, in any manner, in the conduct of the affairs of any savings
association, (3) a reprimand of the individuals and entities or other
persons concerned, or (4) a dismissal of the entire matter.
   (d) If no hearing is requested within the time specified, the
commissioner may proceed to issue orders of removal, prohibition, or
both on the basis of the facts set forth in the written notice.
   (e) No institution-affiliated party or director, officer, or
employee who has been removed from his or her position pursuant to a
removal order that has become final, shall thereafter participate in
any manner in the conduct of the affairs of the savings association
from or with respect to which that director, officer, or employee was
removed, or without prior written approval of the commissioner,
serve as a director, officer, or employee of any other savings
association. No institution-affiliated party, including an officer,
director, or employee, who is subject to an order of prohibition
which has become final shall thereafter participate, in any manner,
in the conduct of the affairs of any savings association.
   (f) In respect to any officer, director, or employee of a savings
association, savings and loan holding company or subsidiary thereof
who is the subject of a written notice served by the commissioner
pursuant to subdivision (a), the commissioner may, if the
commissioner deems it necessary for the protection of the savings
association or the interests of the association's depositors, by
written notice to that effect served upon the officer, director,
employee, suspend him or her from office or prohibit him or her from
further participation in any manner in the conduct of the affairs of
the savings association or related entity, or take both these
actions. The suspension or prohibition shall become effective upon
service of the notice and, unless stayed by the court in proceedings
authorized by subdivision (g), shall remain in effect pending
completion of the proceedings pursuant to the written notice served
under subdivision (a) and until the effective date of an order
entered by the commissioner under subdivision (c) or (d). Copies of
the notice shall also be served upon the savings association, savings
and loan holding company, or subsidiary of which the person is a
director, officer, or employee.
   (g) Within 10 days after any director, officer, or employee has
been suspended from office or prohibited from participation in the
conduct of the affairs of a savings association, savings and loan
holding company, or subsidiary thereof under subdivision (f), the
director, officer, or employee may apply to a court having
jurisdiction for a stay of the suspension or prohibition pending
completion of the proceedings pursuant to subdivision (c), and the
court shall have power to stay the suspension or prohibition.




8202.  (a) The commissioner shall publish and make the following
available to the public:
   (1) Any final order issued with respect to any administrative
enforcement proceeding initiated by the commissioner pursuant to this
division or any other provision of law.
   (2) Any modification to, or termination of, any final order
specified in paragraph (1).
   (b) If the commissioner makes a determination in writing that the
publication of any final order pursuant to subdivision (a) would
seriously threaten the safety or soundness of a savings association,
the commissioner may delay the publication of the order for a
reasonable time.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 8200-8202

FINANCIAL CODE
SECTION 8200-8202



8200.  The commissioner may issue cease and desist orders which may
order affirmative action in accordance with the following:
   (a) If the commissioner, as a result of any examination or from
any report, finds or has reasonable cause to believe (1) that any
savings association, savings and loan holding company or any of their
subsidiaries, or an institution-affiliated party, (A) is violating
or has violated any provision of this division or the laws of this
state or of the United States or any order, regulation, or any
condition imposed in writing by the commissioner in connection with
the granting of any application of an association or any written
agreement entered into with the commissioner or (B) is engaging or
has engaged in an unsafe or unsound business practice, or (2) that an
association, savings and loan holding company, or any of their
subsidiaries are maintaining books and records that are so incomplete
and inaccurate that the commissioner is unable, through the normal
supervisory process, to determine their financial condition or the
details or purpose of any transaction that may have a material effect
on their financial condition, the commissioner may issue a formal
written order to be served by delivery to the home office of the
association or to the person named in the order. The order shall
state the alleged violation or practice and state the facts in
support of the allegation, and shall order discontinuance of the
violation or practice and order conformance with all requirements of
law. The commissioner may require the association or other named
person to take affirmative action (A) to prevent the insolvency or
dissipation of assets of the association, or (B) to restore the books
and records to a complete and accurate state.
   (b) The authority of the commissioner to issue orders to correct
any conditions resulting from any violation or practice includes the
authority to require the person named in the order to do any of the
following:
   (1) Make restitution or provide reimbursement, indemnification, or
guarantee against loss if (A) the person named in the order was
unjustly enriched in connection with the violation or practice or (B)
the violation or practice involved a reckless disregard for any
state or federal statute or applicable regulations or prior order of
the commissioner.
   (2) Restrict the growth of the association.
   (3) Dispose of any loan or asset involved.
   (4) Rescind agreements or contracts.
   (5) Employ qualified officers or employees (who may be subject to
prior approval of the commissioner at his or her direction).
   (6) Take such other action as the commissioner determines to be
appropriate.
   (c) The authority to issue orders includes the authority to place
limitations on the activities or functions of the person named in the
order.
   (d) The order shall specify an effective date, which may be
immediate or may be at a later date, and shall remain in effect until
withdrawn by the commissioner or until terminated by a court order.
   (e) Any association or person affected by an order of the
commissioner may apply within 10 days after service of the order to a
court having jurisdiction for an immediate hearing and may request a
stay of the order until the hearing has been completed. The hearing
shall be held as provided in a notice to the commissioner by the
court.
   (f) The commissioner may, on or after the effective date of the
order, apply for enforcement of the order to the superior court in
the county in which the home office of the association or the person
is located. The order shall be enforced ex parte and without notice
by the court. The proceedings shall be given precedence over other
cases pending in court, and shall in every way be expedited.
   (g) Whether upon application by the commissioner or by the person
named in the order, the court shall have jurisdiction, shall
adjudicate the question, and shall enter and enforce the proper order
or orders.


8201.  (a) Whenever the commissioner determines that any
institution-affiliated party or any director, officer, or employee of
a savings and loan holding company or affiliate thereof has
committed any of the following violations, engaged or participated in
any of the following unsafe or unsound practices, or committed any
of the following breaches of fiduciary duty that meet the additional
criteria of subdivision (b), the commissioner may serve upon that
person a written notice of the commissioner's intent to order the
removal of the person from his or her office or employment or to
prohibit any further participation (in any manner) in the conduct of
the affairs of any savings association, or both:
   (1) Violation of any statute or regulation, any cease and desist
order which has become final, any condition imposed in writing by the
commissioner in connection with the grant of any application or
other request by the savings association or any written agreement
between the savings institution and the commissioner.
   (2) Engaging or participating in any unsafe or unsound practice in
connection with any savings association.
   (3) Committing or engaging in any act, omission, or practice which
constitutes a breach of the person's fiduciary duty.
   (b) A violation, practice, or breach specified in subdivision (a)
is subject to the commissioner's authority under this section if the
commissioner finds both of the following:
   (1) By reason of the violation, practice, or breach (A) the
savings association has suffered or will probably suffer financial
loss or other damage (B) the interests of the savings association's
depositors have been or could be prejudiced, or (C) the
institution-affiliated party or other person specified in subdivision
(a) has received financial gain or other benefit by reason of the
violation, practice, or breach.
   (2) The violation, practice, or breach (A) involves personal
dishonesty on the part of the institution-affiliated party or other
person specified in subdivision (a) or (B) demonstrates willful or
continuing disregard by the institution-affiliated party or other
person for the safety or soundness of the savings institution.
   (c) The written notice shall contain a full statement of the
alleged violations, practices, or breaches of fiduciary duty, shall
state the facts alleged in support of the violation, practice or
breach, and shall state the commissioner's intention to enter a
removal or prohibition order, or both. The notice shall be delivered
to the board of directors of the association, savings and loan
holding company, or subsidiary, and to the institution-affiliated
party or other director, officer, or employee concerned. If a hearing
on the matter is requested within 10 days after service of the
written notice, the commissioner shall hold a public hearing at which
any pertinent evidence relating to the matters set forth in the
written notice may be presented. After the hearing, the commissioner,
on the basis of the evidence presented at the hearing, may proceed
to enter (1) an order for the immediate removal of the
institution-affiliated party or director, officer, or employee
affected, (2) an order prohibiting further participation by the
person, in any manner, in the conduct of the affairs of any savings
association, (3) a reprimand of the individuals and entities or other
persons concerned, or (4) a dismissal of the entire matter.
   (d) If no hearing is requested within the time specified, the
commissioner may proceed to issue orders of removal, prohibition, or
both on the basis of the facts set forth in the written notice.
   (e) No institution-affiliated party or director, officer, or
employee who has been removed from his or her position pursuant to a
removal order that has become final, shall thereafter participate in
any manner in the conduct of the affairs of the savings association
from or with respect to which that director, officer, or employee was
removed, or without prior written approval of the commissioner,
serve as a director, officer, or employee of any other savings
association. No institution-affiliated party, including an officer,
director, or employee, who is subject to an order of prohibition
which has become final shall thereafter participate, in any manner,
in the conduct of the affairs of any savings association.
   (f) In respect to any officer, director, or employee of a savings
association, savings and loan holding company or subsidiary thereof
who is the subject of a written notice served by the commissioner
pursuant to subdivision (a), the commissioner may, if the
commissioner deems it necessary for the protection of the savings
association or the interests of the association's depositors, by
written notice to that effect served upon the officer, director,
employee, suspend him or her from office or prohibit him or her from
further participation in any manner in the conduct of the affairs of
the savings association or related entity, or take both these
actions. The suspension or prohibition shall become effective upon
service of the notice and, unless stayed by the court in proceedings
authorized by subdivision (g), shall remain in effect pending
completion of the proceedings pursuant to the written notice served
under subdivision (a) and until the effective date of an order
entered by the commissioner under subdivision (c) or (d). Copies of
the notice shall also be served upon the savings association, savings
and loan holding company, or subsidiary of which the person is a
director, officer, or employee.
   (g) Within 10 days after any director, officer, or employee has
been suspended from office or prohibited from participation in the
conduct of the affairs of a savings association, savings and loan
holding company, or subsidiary thereof under subdivision (f), the
director, officer, or employee may apply to a court having
jurisdiction for a stay of the suspension or prohibition pending
completion of the proceedings pursuant to subdivision (c), and the
court shall have power to stay the suspension or prohibition.




8202.  (a) The commissioner shall publish and make the following
available to the public:
   (1) Any final order issued with respect to any administrative
enforcement proceeding initiated by the commissioner pursuant to this
division or any other provision of law.
   (2) Any modification to, or termination of, any final order
specified in paragraph (1).
   (b) If the commissioner makes a determination in writing that the
publication of any final order pursuant to subdivision (a) would
seriously threaten the safety or soundness of a savings association,
the commissioner may delay the publication of the order for a
reasonable time.

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