§ 6.2-1036. (Effective October 1, 2010) Commission's remedial powers.
A. If the Commission finds that a trust company (i) has failed to fullyobserve the laws of the Commonwealth, (ii) is being operated in an unsafe orunsound manner, (iii) has failed to comply with any Commission order orregulation, (iv) is engaging in any irregular practices, or (v) is, or isabout to become, insolvent or its capital has been, or is in danger of being,impaired, the Commission shall give notice thereof to the officers anddirectors of the company. If necessary to conserve the assets of the companyor protect the public interest, the Commission may:
1. Close the company for a period not exceeding 60 days, which period may befurther extended for a like period or periods as the Commission deemsnecessary;
2. Require that all orders and regulations of the Commission be complied with;
3. Require that the company make reports daily or at such other times as maybe required as to the results achieved in carrying out the Commission'sorders;
4. Require that any irregularities be promptly corrected;
5. Require that any impairment of capital be made good; or
6. Temporarily suspend the right of the company to receive any furtherproperty in a fiduciary capacity.
B. If the Commission determines that a receiver should be appointed for atrust company, the Commission may close the company; take charge of thebooks, assets and affairs of the company; and apply to any circuit court inthe Commonwealth for the appointment of a receiver to take charge of thecompany's business, assets and affairs. Proceedings for appointment of areceiver for a trust company shall not be entertained by any court except onapplication of the Commission.
C. The Commissioner may issue and serve upon a trust company a cease anddesist order if, in the opinion of the Commissioner, the company is engaging,has engaged, or, there is reasonable cause to believe, is about to engage inan unsafe or unsound practice, irregularity, or any violation of law, rule,or regulation applicable to the conduct of its business, or any Commissionorder. The cease and desist order shall contain a statement of the facts uponwhich it is based and may require, in terms that may be mandatory orotherwise, the company and its directors, officers, employees, and agents tocease and desist from the practice or violation. The order shall specify itseffective date and shall notify the company of its right to request a hearingin accordance with the Commission's Rules.
D. When the practice or violation specified in an order issued pursuant tosubsection C, or any continuation thereof, is likely to prejudice thecompany's stockholders, or persons having an interest in property held by thecompany in a fiduciary capacity, the Commissioner may make the ordereffective immediately. An order shall remain in effect until withdrawn by theCommissioner or terminated by the Commission after a hearing. A request for ahearing shall be given expeditious treatment on the Commission's docket, andthe Commission need not allow 10 days' notice to the company.
(1993, c. 432, § 6.1-32.28; 1994, c. 524; 1995, c. 140; 2010, c. 794.)
§ 6.2-1036. (Effective October 1, 2010) Commission's remedial powers.
A. If the Commission finds that a trust company (i) has failed to fullyobserve the laws of the Commonwealth, (ii) is being operated in an unsafe orunsound manner, (iii) has failed to comply with any Commission order orregulation, (iv) is engaging in any irregular practices, or (v) is, or isabout to become, insolvent or its capital has been, or is in danger of being,impaired, the Commission shall give notice thereof to the officers anddirectors of the company. If necessary to conserve the assets of the companyor protect the public interest, the Commission may:
1. Close the company for a period not exceeding 60 days, which period may befurther extended for a like period or periods as the Commission deemsnecessary;
2. Require that all orders and regulations of the Commission be complied with;
3. Require that the company make reports daily or at such other times as maybe required as to the results achieved in carrying out the Commission'sorders;
4. Require that any irregularities be promptly corrected;
5. Require that any impairment of capital be made good; or
6. Temporarily suspend the right of the company to receive any furtherproperty in a fiduciary capacity.
B. If the Commission determines that a receiver should be appointed for atrust company, the Commission may close the company; take charge of thebooks, assets and affairs of the company; and apply to any circuit court inthe Commonwealth for the appointment of a receiver to take charge of thecompany's business, assets and affairs. Proceedings for appointment of areceiver for a trust company shall not be entertained by any court except onapplication of the Commission.
C. The Commissioner may issue and serve upon a trust company a cease anddesist order if, in the opinion of the Commissioner, the company is engaging,has engaged, or, there is reasonable cause to believe, is about to engage inan unsafe or unsound practice, irregularity, or any violation of law, rule,or regulation applicable to the conduct of its business, or any Commissionorder. The cease and desist order shall contain a statement of the facts uponwhich it is based and may require, in terms that may be mandatory orotherwise, the company and its directors, officers, employees, and agents tocease and desist from the practice or violation. The order shall specify itseffective date and shall notify the company of its right to request a hearingin accordance with the Commission's Rules.
D. When the practice or violation specified in an order issued pursuant tosubsection C, or any continuation thereof, is likely to prejudice thecompany's stockholders, or persons having an interest in property held by thecompany in a fiduciary capacity, the Commissioner may make the ordereffective immediately. An order shall remain in effect until withdrawn by theCommissioner or terminated by the Commission after a hearing. A request for ahearing shall be given expeditious treatment on the Commission's docket, andthe Commission need not allow 10 days' notice to the company.
(1993, c. 432, § 6.1-32.28; 1994, c. 524; 1995, c. 140; 2010, c. 794.)
§ 6.2-1036. (Effective October 1, 2010) Commission's remedial powers.
A. If the Commission finds that a trust company (i) has failed to fullyobserve the laws of the Commonwealth, (ii) is being operated in an unsafe orunsound manner, (iii) has failed to comply with any Commission order orregulation, (iv) is engaging in any irregular practices, or (v) is, or isabout to become, insolvent or its capital has been, or is in danger of being,impaired, the Commission shall give notice thereof to the officers anddirectors of the company. If necessary to conserve the assets of the companyor protect the public interest, the Commission may:
1. Close the company for a period not exceeding 60 days, which period may befurther extended for a like period or periods as the Commission deemsnecessary;
2. Require that all orders and regulations of the Commission be complied with;
3. Require that the company make reports daily or at such other times as maybe required as to the results achieved in carrying out the Commission'sorders;
4. Require that any irregularities be promptly corrected;
5. Require that any impairment of capital be made good; or
6. Temporarily suspend the right of the company to receive any furtherproperty in a fiduciary capacity.
B. If the Commission determines that a receiver should be appointed for atrust company, the Commission may close the company; take charge of thebooks, assets and affairs of the company; and apply to any circuit court inthe Commonwealth for the appointment of a receiver to take charge of thecompany's business, assets and affairs. Proceedings for appointment of areceiver for a trust company shall not be entertained by any court except onapplication of the Commission.
C. The Commissioner may issue and serve upon a trust company a cease anddesist order if, in the opinion of the Commissioner, the company is engaging,has engaged, or, there is reasonable cause to believe, is about to engage inan unsafe or unsound practice, irregularity, or any violation of law, rule,or regulation applicable to the conduct of its business, or any Commissionorder. The cease and desist order shall contain a statement of the facts uponwhich it is based and may require, in terms that may be mandatory orotherwise, the company and its directors, officers, employees, and agents tocease and desist from the practice or violation. The order shall specify itseffective date and shall notify the company of its right to request a hearingin accordance with the Commission's Rules.
D. When the practice or violation specified in an order issued pursuant tosubsection C, or any continuation thereof, is likely to prejudice thecompany's stockholders, or persons having an interest in property held by thecompany in a fiduciary capacity, the Commissioner may make the ordereffective immediately. An order shall remain in effect until withdrawn by theCommissioner or terminated by the Commission after a hearing. A request for ahearing shall be given expeditious treatment on the Commission's docket, andthe Commission need not allow 10 days' notice to the company.
(1993, c. 432, § 6.1-32.28; 1994, c. 524; 1995, c. 140; 2010, c. 794.)
