[§449-23]  Removal of officers or directors. 
(a)  The commissioner may order the removal of any officer or director from
office or employment with an escrow depository and prohibit the person's
affiliation or participation in the affairs of the escrow depository if the
commissioner determines that any of the following circumstances exist:



(1)  The person has violated a state law regulating
escrow depositories, violated a cease and desist order, engaged or participated
in an unsafe or unsound practice in connection with the escrow depository, or
breached a fiduciary duty;



(2)  As a result of a statutory violation or breach
the escrow depository has suffered or will probably suffer financial loss or
other damage, the interests of the escrow depository's clients have been or may
be prejudiced, or the person has received financial gain as a result of such
violation or breach; or



(3)  The violation or breach involves the person's
personal dishonesty, or demonstrates the person's wilful or continuing
disregard for the safety or soundness of the escrow depository.



(b)  The commissioner shall serve the officer
or director and the board of directors of the escrow depository with written
notice containing the alleged violations or breaches, a summary of the facts
upon which the allegations are based, and a statement of the commissioner's
intention to remove the person from office or prohibit the person's affiliation
with the escrow depository, or both.  If the commissioner deems it necessary
for the protection of the escrow depository or its clients, the notice may also
suspend the officer or director from office or prohibit the party from further
participation in any manner in the conduct of the affairs of the escrow
depository, or both.



(c)  Upon request of the person made within ten
days after service of notice, the commissioner shall hold a hearing at which
any pertinent evidence may be presented and after which the commissioner shall
issue findings and a determination.  If no hearing is timely requested, the commissioner
may proceed to issue orders of removal or prohibition, or both, on the basis of
the facts set forth in the written notice.



(d)  No officer or director whose removal or
prohibition has been ordered pursuant to this section shall thereafter participate
in any manner in the conduct of the affairs of the affiliated escrow depository
as long as the order remains in effect.  Any violation of the order shall
constitute a violation of law, and shall be sufficient for the issuance of a
cease and desist order to the escrow depository. [L 1992, c 205, pt of §1]