45-4-206. Restriction on withdrawal of shares or accounts Stop orders Removal of officers or employees Taking possession Hearing.
(a) In addition to other powers conferred by this chapter, the commissioner may:
(1) Restrict the withdrawal of shares or accounts from any state credit union when the commissioner finds circumstances make the restriction necessary for the proper protection of the members' interest in the shares or accounts;
(2) Order any person to cease violating any provision of the credit union laws of this state or any lawful rule issued under those laws, or to cease engaging in any unsound practice when the practice is likely to cause financial loss to the credit union or otherwise seriously prejudice the interests of its members;
(3) Remove a director, officer, committee member or employee of a credit union who, after receipt of an order to cease under subdivision (a)(2), violates the credit union laws of this state or a lawful rule or order under those laws, or who has committed any act, omission or practice that constitutes a breach of the person's fiduciary duty to the credit union or that is a violation of the credit union laws or regulations of the state, and the act, omission or practice has caused or probably will cause substantial financial loss to the credit union. A removal order shall specify the grounds therefor, and a copy shall be sent to the credit union concerned. It is a Class A misdemeanor for any person, after receipt of a removal order, to perform any duty or exercise any power in the credit union concerned until such time as the removal order is modified or terminated by the commissioner or a reviewing court;
(4) Suspend by written order any officer, director, employee, or committee member of a credit union who has been charged with the commission of, or participation in, a felony involving dishonesty or breach of trust. The order of suspension shall remain in effect until the disposition of the charge and the indictment is final, unless the order is sooner terminated by the commissioner. In the event that a conviction with respect to the offense is entered against a director, officer, employee, or committee member and the conviction is not subject to further appellate review, the commissioner may issue an order removing the director, officer, employee, or committee member from office or employment with the credit union. A finding of not guilty shall not prohibit the commissioner from thereafter instituting proceedings against the director, officer, committee member or employee pursuant to subdivision (a)(3). It is a Class A misdemeanor for any person to perform any duty or exercise any power in the credit union concerned while the order of suspension or removal remains in effect; and
(5) (A) Take possession of the business and property of a credit union if the commissioner finds that:
(i) The credit union is insolvent or it is otherwise in an unsound condition;
(ii) Its business is being conducted in an unlawful or unsound manner;
(iii) It is unable to continue normal operations;
(iv) Its examination has been obstructed or impeded; or
(v) The credit union has failed to comply with a lawful order of the commissioner within a reasonable time.
(B) The commissioner may retain possession until such time as the commissioner permits the credit union to resume business, order the merger of the credit union with another credit union without the approval of the members of the credit union to be merged as required under § 45-4-903, or order the liquidation of the credit union.
(b) Notice and opportunity for hearing shall be provided in advance of any of the foregoing actions in this section taken by the commissioner. In cases involving extraordinary circumstances requiring immediate action, the commissioner may take the action without advance notice but shall promptly afford a subsequent hearing upon application to rescind the action taken.
45-4-206. Restriction on withdrawal of shares or accounts Stop orders Removal of officers or employees Taking possession Hearing.
(a) In addition to other powers conferred by this chapter, the commissioner may:
(1) Restrict the withdrawal of shares or accounts from any state credit union when the commissioner finds circumstances make the restriction necessary for the proper protection of the members' interest in the shares or accounts;
(2) Order any person to cease violating any provision of the credit union laws of this state or any lawful rule issued under those laws, or to cease engaging in any unsound practice when the practice is likely to cause financial loss to the credit union or otherwise seriously prejudice the interests of its members;
(3) Remove a director, officer, committee member or employee of a credit union who, after receipt of an order to cease under subdivision (a)(2), violates the credit union laws of this state or a lawful rule or order under those laws, or who has committed any act, omission or practice that constitutes a breach of the person's fiduciary duty to the credit union or that is a violation of the credit union laws or regulations of the state, and the act, omission or practice has caused or probably will cause substantial financial loss to the credit union. A removal order shall specify the grounds therefor, and a copy shall be sent to the credit union concerned. It is a Class A misdemeanor for any person, after receipt of a removal order, to perform any duty or exercise any power in the credit union concerned until such time as the removal order is modified or terminated by the commissioner or a reviewing court;
(4) Suspend by written order any officer, director, employee, or committee member of a credit union who has been charged with the commission of, or participation in, a felony involving dishonesty or breach of trust. The order of suspension shall remain in effect until the disposition of the charge and the indictment is final, unless the order is sooner terminated by the commissioner. In the event that a conviction with respect to the offense is entered against a director, officer, employee, or committee member and the conviction is not subject to further appellate review, the commissioner may issue an order removing the director, officer, employee, or committee member from office or employment with the credit union. A finding of not guilty shall not prohibit the commissioner from thereafter instituting proceedings against the director, officer, committee member or employee pursuant to subdivision (a)(3). It is a Class A misdemeanor for any person to perform any duty or exercise any power in the credit union concerned while the order of suspension or removal remains in effect; and
(5) (A) Take possession of the business and property of a credit union if the commissioner finds that:
(i) The credit union is insolvent or it is otherwise in an unsound condition;
(ii) Its business is being conducted in an unlawful or unsound manner;
(iii) It is unable to continue normal operations;
(iv) Its examination has been obstructed or impeded; or
(v) The credit union has failed to comply with a lawful order of the commissioner within a reasonable time.
(B) The commissioner may retain possession until such time as the commissioner permits the credit union to resume business, order the merger of the credit union with another credit union without the approval of the members of the credit union to be merged as required under § 45-4-903, or order the liquidation of the credit union.
(b) Notice and opportunity for hearing shall be provided in advance of any of the foregoing actions in this section taken by the commissioner. In cases involving extraordinary circumstances requiring immediate action, the commissioner may take the action without advance notice but shall promptly afford a subsequent hearing upon application to rescind the action taken.
45-4-206. Restriction on withdrawal of shares or accounts Stop orders Removal of officers or employees Taking possession Hearing.
(a) In addition to other powers conferred by this chapter, the commissioner may:
(1) Restrict the withdrawal of shares or accounts from any state credit union when the commissioner finds circumstances make the restriction necessary for the proper protection of the members' interest in the shares or accounts;
(2) Order any person to cease violating any provision of the credit union laws of this state or any lawful rule issued under those laws, or to cease engaging in any unsound practice when the practice is likely to cause financial loss to the credit union or otherwise seriously prejudice the interests of its members;
(3) Remove a director, officer, committee member or employee of a credit union who, after receipt of an order to cease under subdivision (a)(2), violates the credit union laws of this state or a lawful rule or order under those laws, or who has committed any act, omission or practice that constitutes a breach of the person's fiduciary duty to the credit union or that is a violation of the credit union laws or regulations of the state, and the act, omission or practice has caused or probably will cause substantial financial loss to the credit union. A removal order shall specify the grounds therefor, and a copy shall be sent to the credit union concerned. It is a Class A misdemeanor for any person, after receipt of a removal order, to perform any duty or exercise any power in the credit union concerned until such time as the removal order is modified or terminated by the commissioner or a reviewing court;
(4) Suspend by written order any officer, director, employee, or committee member of a credit union who has been charged with the commission of, or participation in, a felony involving dishonesty or breach of trust. The order of suspension shall remain in effect until the disposition of the charge and the indictment is final, unless the order is sooner terminated by the commissioner. In the event that a conviction with respect to the offense is entered against a director, officer, employee, or committee member and the conviction is not subject to further appellate review, the commissioner may issue an order removing the director, officer, employee, or committee member from office or employment with the credit union. A finding of not guilty shall not prohibit the commissioner from thereafter instituting proceedings against the director, officer, committee member or employee pursuant to subdivision (a)(3). It is a Class A misdemeanor for any person to perform any duty or exercise any power in the credit union concerned while the order of suspension or removal remains in effect; and
(5) (A) Take possession of the business and property of a credit union if the commissioner finds that:
(i) The credit union is insolvent or it is otherwise in an unsound condition;
(ii) Its business is being conducted in an unlawful or unsound manner;
(iii) It is unable to continue normal operations;
(iv) Its examination has been obstructed or impeded; or
(v) The credit union has failed to comply with a lawful order of the commissioner within a reasonable time.
(B) The commissioner may retain possession until such time as the commissioner permits the credit union to resume business, order the merger of the credit union with another credit union without the approval of the members of the credit union to be merged as required under § 45-4-903, or order the liquidation of the credit union.
(b) Notice and opportunity for hearing shall be provided in advance of any of the foregoing actions in this section taken by the commissioner. In cases involving extraordinary circumstances requiring immediate action, the commissioner may take the action without advance notice but shall promptly afford a subsequent hearing upon application to rescind the action taken.
