§412:2-304  Temporary cease and desistorders; effective date; hearing; enforcement.  (a)  To act with the utmostspeed, the commissioner may issue a temporary cease and desist order upon adetermination that one or more of the grounds specified in section 412:2-302are present; provided that, in the case of a Hawaii financial institution or aninstitution-affiliated party, the commissioner shall not issue a temporarycease and desist order unless the commissioner has also made a determinationthat the violation, threatened violation, or unsafe or unsound practice islikely to:

(1)  Cause insolvency or substantial dissipation ofassets; or

(2)  Seriously weaken the condition of theinstitution; or

(3)  Otherwise seriously prejudice the interests ofthe depositors during the period in which a permanent cease and desist ordercan be obtained.

The order shall be accompanied by a notice ofcharges stating the alleged violation or wrongful practice, a summary of thefacts in support of the allegation, and a time and place for a hearing todetermine whether the temporary order shall be made permanent.  The order mayrequire discontinuance of a violation or practice; require the immediatecompliance with all requirements of any applicable agreement, conditions of approval,order, or law; and direct affirmative action as may be necessary to preventinsolvency or to correct the alleged violation or wrongful practice.

(b)  The order shall be effective upon serviceon the affected party.  The order shall remain in effect until a permanentcease and desist order is issued after a hearing, a permanent cease and desistorder is consented to, or the charges are dismissed upon completion of ahearing.  Any affected party contesting the issuance of the temporary cease anddesist order may do so by applying to the circuit court for an injunction.

(c)  Within ten days after service of a noticeof charges, unless an earlier date or later date is set by the commissionerupon request of the affected party, the commissioner shall hold a hearing inaccordance with chapter 91.  If no appearance is made at the scheduled hearingby the party or its duly authorized representative, the party shall be deemedto have consented to the issuance of the cease and desist order and thecommissioner may convert the temporary cease and desist order into a permanentcease and desist order.  Any permanent cease and desist order issued after ahearing held in accordance with this subsection shall become effective afterservice upon the affected party and shall remain effective until modified orterminated by the commissioner.  Any appeal of a permanent cease and desistorder shall be made to the circuit court in accordance with chapter 91.

(d)  Any temporary cease and desist order maybe enforced in the circuit court upon application by the commissioner.  Anypermanent cease and desist order issued in accordance with this section may beenforced as provided in section 412:2-303(c). [L 1993, c 350, pt of §1; am L1998, c 196, §5]

 

Rules of Court

 

  Appeals, see HRCP rule 72.

  Injunctions, see HRCP rule 65.