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



(1)  Cause insolvency or substantial dissipation of
assets; or



(2)  Seriously weaken the condition of the
institution; or



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



The order shall be accompanied by a notice of
charges stating the alleged violation or wrongful practice, a summary of the
facts in support of the allegation, and a time and place for a hearing to
determine whether the temporary order shall be made permanent.  The order may
require discontinuance of a violation or practice; require the immediate
compliance with all requirements of any applicable agreement, conditions of approval,
order, or law; and direct affirmative action as may be necessary to prevent
insolvency or to correct the alleged violation or wrongful practice.



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



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



(d)  Any temporary cease and desist order may
be enforced in the circuit court upon application by the commissioner.  Any
permanent cease and desist order issued in accordance with this section may be
enforced as provided in section 412:2-303(c). [L 1993, c 350, pt of §1; am L
1998, c 196, §5]



 



Rules of Court



 



  Appeals, see HRCP rule 72.



  Injunctions, see HRCP rule 65.