9-1807.Cease and desist orders; institution of proceedings by
commissioner; hearing by board; issuance; temporary orders of commissioner.
If the state bank commissioner shall determine that any bank or trust
company is engaging or has engaged, or the commissioner has reasonable
cause to believe that the bank or trust company is about to engage, in an
unsafe or unsound practice in conducting the business of such bank or trust
company, or if the commissioner shall determine that any bank or trust
company is violating or has violated, or the commissioner has reasonable
cause to believe that the bank or trust company is about to violate a law,
rule, regulation or order of the commissioner or state banking board, the
commissioner may issue and serve upon the bank or trust company a notice of
charges in respect thereof. The notice shall contain a statement of the
facts constituting the alleged unsafe or unsound practice or practices or
the alleged violation or violations, and shall state the time and place at
which a hearing will be held by the board to determine whether an order to
cease and desist therefrom should be issued by the board against the bank
or trust company. Such hearing shall be fixed for a date not earlier than
thirty (30) days nor later than sixty (60) days after service of such
notice.
Unless the bank or trust company shall appear at the hearing by a duly
authorized representative, it shall be deemed to have consented to the
issuance of the cease and desist order. In the event of such consent, or if
upon the record made at any such hearing, the board shall find that any
unsafe or unsound practice or violation specified in the notice of charges
has been established, the board may issue and serve upon the bank or trust
company an order to cease and desist from any such practice or violation.
Such order may, by provisions which may be mandatory or otherwise, require
the bank or trust company and its directors, officers, employees and agents
to cease and desist from the same, and, further, to take affirmative action
to correct the conditions resulting from any such practice or violation. A
cease and desist order shall become effective at the time specified
therein, and shall remain effective and enforceable as provided therein,
except to such extent as it is stayed, modified, terminated or set aside by
action of the board.
Whenever the commissioner shall determine that the unsafe or unsound
practice or practices or the violation or violations specified in the
notice of charges served upon the bank or trust company, or the
continuation thereof, is likely to cause insolvency or substantial
dissipation of assets or earnings of the bank or trust company, or is
likely to otherwise seriously prejudice the interests of its depositors,
the commissioner may issue a temporary order requiring the bank or trust
company to cease and desist from any such practice or practices or
violation or violations. Such order shall be effective upon service thereof
upon the bank or trust company, and shall remain effective and enforceable
pending the completion of the proceedings pursuant to such notice and until
such time as the board shall dismiss the charges specified in such notice,
or if a cease and desist order is issued against the bank or trust company,
until the effective date of any such order.
9-1807.Cease and desist orders; institution of proceedings by
commissioner; hearing by board; issuance; temporary orders of commissioner.
If the state bank commissioner shall determine that any bank or trust
company is engaging or has engaged, or the commissioner has reasonable
cause to believe that the bank or trust company is about to engage, in an
unsafe or unsound practice in conducting the business of such bank or trust
company, or if the commissioner shall determine that any bank or trust
company is violating or has violated, or the commissioner has reasonable
cause to believe that the bank or trust company is about to violate a law,
rule, regulation or order of the commissioner or state banking board, the
commissioner may issue and serve upon the bank or trust company a notice of
charges in respect thereof. The notice shall contain a statement of the
facts constituting the alleged unsafe or unsound practice or practices or
the alleged violation or violations, and shall state the time and place at
which a hearing will be held by the board to determine whether an order to
cease and desist therefrom should be issued by the board against the bank
or trust company. Such hearing shall be fixed for a date not earlier than
thirty (30) days nor later than sixty (60) days after service of such
notice.
Unless the bank or trust company shall appear at the hearing by a duly
authorized representative, it shall be deemed to have consented to the
issuance of the cease and desist order. In the event of such consent, or if
upon the record made at any such hearing, the board shall find that any
unsafe or unsound practice or violation specified in the notice of charges
has been established, the board may issue and serve upon the bank or trust
company an order to cease and desist from any such practice or violation.
Such order may, by provisions which may be mandatory or otherwise, require
the bank or trust company and its directors, officers, employees and agents
to cease and desist from the same, and, further, to take affirmative action
to correct the conditions resulting from any such practice or violation. A
cease and desist order shall become effective at the time specified
therein, and shall remain effective and enforceable as provided therein,
except to such extent as it is stayed, modified, terminated or set aside by
action of the board.
Whenever the commissioner shall determine that the unsafe or unsound
practice or practices or the violation or violations specified in the
notice of charges served upon the bank or trust company, or the
continuation thereof, is likely to cause insolvency or substantial
dissipation of assets or earnings of the bank or trust company, or is
likely to otherwise seriously prejudice the interests of its depositors,
the commissioner may issue a temporary order requiring the bank or trust
company to cease and desist from any such practice or practices or
violation or violations. Such order shall be effective upon service thereof
upon the bank or trust company, and shall remain effective and enforceable
pending the completion of the proceedings pursuant to such notice and until
such time as the board shall dismiss the charges specified in such notice,
or if a cease and desist order is issued against the bank or trust company,
until the effective date of any such order.
9-1807.Cease and desist orders; institution of proceedings by
commissioner; hearing by board; issuance; temporary orders of commissioner.
If the state bank commissioner shall determine that any bank or trust
company is engaging or has engaged, or the commissioner has reasonable
cause to believe that the bank or trust company is about to engage, in an
unsafe or unsound practice in conducting the business of such bank or trust
company, or if the commissioner shall determine that any bank or trust
company is violating or has violated, or the commissioner has reasonable
cause to believe that the bank or trust company is about to violate a law,
rule, regulation or order of the commissioner or state banking board, the
commissioner may issue and serve upon the bank or trust company a notice of
charges in respect thereof. The notice shall contain a statement of the
facts constituting the alleged unsafe or unsound practice or practices or
the alleged violation or violations, and shall state the time and place at
which a hearing will be held by the board to determine whether an order to
cease and desist therefrom should be issued by the board against the bank
or trust company. Such hearing shall be fixed for a date not earlier than
thirty (30) days nor later than sixty (60) days after service of such
notice.
Unless the bank or trust company shall appear at the hearing by a duly
authorized representative, it shall be deemed to have consented to the
issuance of the cease and desist order. In the event of such consent, or if
upon the record made at any such hearing, the board shall find that any
unsafe or unsound practice or violation specified in the notice of charges
has been established, the board may issue and serve upon the bank or trust
company an order to cease and desist from any such practice or violation.
Such order may, by provisions which may be mandatory or otherwise, require
the bank or trust company and its directors, officers, employees and agents
to cease and desist from the same, and, further, to take affirmative action
to correct the conditions resulting from any such practice or violation. A
cease and desist order shall become effective at the time specified
therein, and shall remain effective and enforceable as provided therein,
except to such extent as it is stayed, modified, terminated or set aside by
action of the board.
Whenever the commissioner shall determine that the unsafe or unsound
practice or practices or the violation or violations specified in the
notice of charges served upon the bank or trust company, or the
continuation thereof, is likely to cause insolvency or substantial
dissipation of assets or earnings of the bank or trust company, or is
likely to otherwise seriously prejudice the interests of its depositors,
the commissioner may issue a temporary order requiring the bank or trust
company to cease and desist from any such practice or practices or
violation or violations. Such order shall be effective upon service thereof
upon the bank or trust company, and shall remain effective and enforceable
pending the completion of the proceedings pursuant to such notice and until
such time as the board shall dismiss the charges specified in such notice,
or if a cease and desist order is issued against the bank or trust company,
until the effective date of any such order.