§ 6.1-194.83. (Repealed effective October 1, 2010) Powers of Commission incase of nonobservance of law, noncompliance with orders, insufficientreserves or insolvency, etc.; appointment of Federal Deposit InsuranceCorporation as receiver.
A. If the Commission finds: (i) that the laws of this Commonwealth are notbeing fully observed by a savings institution doing business in theCommonwealth; or (ii) that a savings institution is being operated in anunsafe or unsound manner; or (iii) that the institution has failed to complywith the lawful orders of the Commission; or (iv) that the reserve of theinstitution is insufficient for the protection of account holders; or (v)that a savings institution is, or is about to become, insolvent, it shallgive immediate notice thereof to the officers and directors of theinstitution. If necessary to conserve the assets of the institution or toprotect the interests of its account holders or the public interest, theCommission may, after reasonable notice to the institution and opportunityfor it to be heard:
1. Close the institution for a period not exceeding sixty days, which periodmay be further extended for a like period or periods as the Commission deemsnecessary;
2. Require the officers and directors of the institution to liquidate,insofar as is required, its outstanding loans;
3. Require that all lawful orders of the Commission be complied with;
4. Require the institution to make reports daily or at such other times as itmay require as to the results achieved in carrying out its orders;
5. Temporarily suspend the right of such institution to receive any furtherdeposits;
6. Without examination, close, for such period or periods as the Commissionmay deem necessary, any savings institution facing an emergency due towithdrawal of deposits or otherwise, or, without closing such savingsinstitution, grant to it the right to suspend or limit the withdrawal ofdeposits, for such period as the Commission may determine; or
7. Require that the savings institution desist from those activities whichhave resulted in the unsafe or unsound operation of the institution.
B. If the Commission determines that a receiver should be appointed for asavings institution, the Commission may close the doors of the institution,take charge of the books, assets and affairs of the institution, and apply toany court in the Commonwealth having jurisdiction to appoint receivers forthe appointment of a receiver to take charge of the institution's businessand assets. Proceedings for the appointment of a receiver of a savingsinstitution shall not be entertained by any court except on the applicationof the Commission.
C. In any case where the Commission finds that an insured savings institutionis insolvent or about to become insolvent, the Commission may seek theappointment of the Federal Deposit Insurance Corporation as receiver for thesavings institution, and the court may appoint the Federal Deposit InsuranceCorporation as such, if it finds that to do so would be in the publicinterest. Upon its being appointed, the Federal Deposit Insurance Corporationshall not be required to post bond, and it shall have as receiver all thosepowers afforded under federal law.
D. 1. The Commissioner may issue and serve upon an association an order tocease and desist from an unsafe or unsound practice or a violation if, in theopinion of the Commissioner, an association (i) is engaging or has engaged,or there is reasonable cause to believe is about to engage, in an unsafe orunsound practice in conducting the business of the association; or (ii) isviolating or has violated, or there is reasonable cause to believe is aboutto violate, this chapter or any other applicable law, rule, regulation ororder. An order to cease and desist shall contain a statement of the factsconstituting the alleged violation or unsafe or unsound practice, and it mayrequire, in terms that may be mandatory or otherwise, an association, itsdirectors, officers, employees or agents to cease and desist from suchviolation or practice. The order shall specify the effective date thereofand shall contain a notice to the association of its right to request ahearing on the order in accordance with Rules 3:4 and 5:6 of the "Rules ofPractice and Procedure of the State Corporation Commission."
2. When the unsafe or unsound practice or the violation specified in theorder to cease and desist, or any continuation thereof, is likely toprejudice the interests of the account holders or the stockholders of anassociation, the Commissioner may issue his order effective immediately. Anorder to cease and desist shall remain in effect until it is withdrawn by theCommissioner or is terminated by the Commission after a hearing on thematter. A request for hearing under this section shall be given expeditioustreatment on the docket of the Commission, and the Commission need not allowfor ten days' notice to the parties.
(Code 1950, §§ 6-201.60, 6.1-190, 6.1-195.70; 1960, c. 402; 1966, c. 584;1972, c. 796; 1983, c. 506; 1985, c. 425; 1990, c. 3.)
§ 6.1-194.83. (Repealed effective October 1, 2010) Powers of Commission incase of nonobservance of law, noncompliance with orders, insufficientreserves or insolvency, etc.; appointment of Federal Deposit InsuranceCorporation as receiver.
A. If the Commission finds: (i) that the laws of this Commonwealth are notbeing fully observed by a savings institution doing business in theCommonwealth; or (ii) that a savings institution is being operated in anunsafe or unsound manner; or (iii) that the institution has failed to complywith the lawful orders of the Commission; or (iv) that the reserve of theinstitution is insufficient for the protection of account holders; or (v)that a savings institution is, or is about to become, insolvent, it shallgive immediate notice thereof to the officers and directors of theinstitution. If necessary to conserve the assets of the institution or toprotect the interests of its account holders or the public interest, theCommission may, after reasonable notice to the institution and opportunityfor it to be heard:
1. Close the institution for a period not exceeding sixty days, which periodmay be further extended for a like period or periods as the Commission deemsnecessary;
2. Require the officers and directors of the institution to liquidate,insofar as is required, its outstanding loans;
3. Require that all lawful orders of the Commission be complied with;
4. Require the institution to make reports daily or at such other times as itmay require as to the results achieved in carrying out its orders;
5. Temporarily suspend the right of such institution to receive any furtherdeposits;
6. Without examination, close, for such period or periods as the Commissionmay deem necessary, any savings institution facing an emergency due towithdrawal of deposits or otherwise, or, without closing such savingsinstitution, grant to it the right to suspend or limit the withdrawal ofdeposits, for such period as the Commission may determine; or
7. Require that the savings institution desist from those activities whichhave resulted in the unsafe or unsound operation of the institution.
B. If the Commission determines that a receiver should be appointed for asavings institution, the Commission may close the doors of the institution,take charge of the books, assets and affairs of the institution, and apply toany court in the Commonwealth having jurisdiction to appoint receivers forthe appointment of a receiver to take charge of the institution's businessand assets. Proceedings for the appointment of a receiver of a savingsinstitution shall not be entertained by any court except on the applicationof the Commission.
C. In any case where the Commission finds that an insured savings institutionis insolvent or about to become insolvent, the Commission may seek theappointment of the Federal Deposit Insurance Corporation as receiver for thesavings institution, and the court may appoint the Federal Deposit InsuranceCorporation as such, if it finds that to do so would be in the publicinterest. Upon its being appointed, the Federal Deposit Insurance Corporationshall not be required to post bond, and it shall have as receiver all thosepowers afforded under federal law.
D. 1. The Commissioner may issue and serve upon an association an order tocease and desist from an unsafe or unsound practice or a violation if, in theopinion of the Commissioner, an association (i) is engaging or has engaged,or there is reasonable cause to believe is about to engage, in an unsafe orunsound practice in conducting the business of the association; or (ii) isviolating or has violated, or there is reasonable cause to believe is aboutto violate, this chapter or any other applicable law, rule, regulation ororder. An order to cease and desist shall contain a statement of the factsconstituting the alleged violation or unsafe or unsound practice, and it mayrequire, in terms that may be mandatory or otherwise, an association, itsdirectors, officers, employees or agents to cease and desist from suchviolation or practice. The order shall specify the effective date thereofand shall contain a notice to the association of its right to request ahearing on the order in accordance with Rules 3:4 and 5:6 of the "Rules ofPractice and Procedure of the State Corporation Commission."
2. When the unsafe or unsound practice or the violation specified in theorder to cease and desist, or any continuation thereof, is likely toprejudice the interests of the account holders or the stockholders of anassociation, the Commissioner may issue his order effective immediately. Anorder to cease and desist shall remain in effect until it is withdrawn by theCommissioner or is terminated by the Commission after a hearing on thematter. A request for hearing under this section shall be given expeditioustreatment on the docket of the Commission, and the Commission need not allowfor ten days' notice to the parties.
(Code 1950, §§ 6-201.60, 6.1-190, 6.1-195.70; 1960, c. 402; 1966, c. 584;1972, c. 796; 1983, c. 506; 1985, c. 425; 1990, c. 3.)
§ 6.1-194.83. (Repealed effective October 1, 2010) Powers of Commission incase of nonobservance of law, noncompliance with orders, insufficientreserves or insolvency, etc.; appointment of Federal Deposit InsuranceCorporation as receiver.
A. If the Commission finds: (i) that the laws of this Commonwealth are notbeing fully observed by a savings institution doing business in theCommonwealth; or (ii) that a savings institution is being operated in anunsafe or unsound manner; or (iii) that the institution has failed to complywith the lawful orders of the Commission; or (iv) that the reserve of theinstitution is insufficient for the protection of account holders; or (v)that a savings institution is, or is about to become, insolvent, it shallgive immediate notice thereof to the officers and directors of theinstitution. If necessary to conserve the assets of the institution or toprotect the interests of its account holders or the public interest, theCommission may, after reasonable notice to the institution and opportunityfor it to be heard:
1. Close the institution for a period not exceeding sixty days, which periodmay be further extended for a like period or periods as the Commission deemsnecessary;
2. Require the officers and directors of the institution to liquidate,insofar as is required, its outstanding loans;
3. Require that all lawful orders of the Commission be complied with;
4. Require the institution to make reports daily or at such other times as itmay require as to the results achieved in carrying out its orders;
5. Temporarily suspend the right of such institution to receive any furtherdeposits;
6. Without examination, close, for such period or periods as the Commissionmay deem necessary, any savings institution facing an emergency due towithdrawal of deposits or otherwise, or, without closing such savingsinstitution, grant to it the right to suspend or limit the withdrawal ofdeposits, for such period as the Commission may determine; or
7. Require that the savings institution desist from those activities whichhave resulted in the unsafe or unsound operation of the institution.
B. If the Commission determines that a receiver should be appointed for asavings institution, the Commission may close the doors of the institution,take charge of the books, assets and affairs of the institution, and apply toany court in the Commonwealth having jurisdiction to appoint receivers forthe appointment of a receiver to take charge of the institution's businessand assets. Proceedings for the appointment of a receiver of a savingsinstitution shall not be entertained by any court except on the applicationof the Commission.
C. In any case where the Commission finds that an insured savings institutionis insolvent or about to become insolvent, the Commission may seek theappointment of the Federal Deposit Insurance Corporation as receiver for thesavings institution, and the court may appoint the Federal Deposit InsuranceCorporation as such, if it finds that to do so would be in the publicinterest. Upon its being appointed, the Federal Deposit Insurance Corporationshall not be required to post bond, and it shall have as receiver all thosepowers afforded under federal law.
D. 1. The Commissioner may issue and serve upon an association an order tocease and desist from an unsafe or unsound practice or a violation if, in theopinion of the Commissioner, an association (i) is engaging or has engaged,or there is reasonable cause to believe is about to engage, in an unsafe orunsound practice in conducting the business of the association; or (ii) isviolating or has violated, or there is reasonable cause to believe is aboutto violate, this chapter or any other applicable law, rule, regulation ororder. An order to cease and desist shall contain a statement of the factsconstituting the alleged violation or unsafe or unsound practice, and it mayrequire, in terms that may be mandatory or otherwise, an association, itsdirectors, officers, employees or agents to cease and desist from suchviolation or practice. The order shall specify the effective date thereofand shall contain a notice to the association of its right to request ahearing on the order in accordance with Rules 3:4 and 5:6 of the "Rules ofPractice and Procedure of the State Corporation Commission."
2. When the unsafe or unsound practice or the violation specified in theorder to cease and desist, or any continuation thereof, is likely toprejudice the interests of the account holders or the stockholders of anassociation, the Commissioner may issue his order effective immediately. Anorder to cease and desist shall remain in effect until it is withdrawn by theCommissioner or is terminated by the Commission after a hearing on thematter. A request for hearing under this section shall be given expeditioustreatment on the docket of the Commission, and the Commission need not allowfor ten days' notice to the parties.
(Code 1950, §§ 6-201.60, 6.1-190, 6.1-195.70; 1960, c. 402; 1966, c. 584;1972, c. 796; 1983, c. 506; 1985, c. 425; 1990, c. 3.)
