§ 6.2-1199. (Effective October 1, 2010) Powers of Commission in case ofnonobservance of law, noncompliance with orders, insufficient reserves orinsolvency; appointment of Federal Deposit Insurance Corporation as receiver.
A. If the Commission finds that: (i) the laws of the Commonwealth are notbeing fully observed by a savings institution doing business in theCommonwealth; (ii) a savings institution is being operated in an unsafe orunsound manner; (iii) the institution has failed to comply with the lawfulorders of the Commission; (iv) the reserve of the institution is insufficientfor the protection of account holders; or (v) a savings institution is, or isabout to become, insolvent, it shall give immediate notice thereof to theofficers and directors of the institution. If necessary to conserve theassets of the institution or to protect the interests of its account holdersor the public interest, the Commission may, after reasonable notice to theinstitution and opportunity for it to be heard:
1. Close the institution for a period not exceeding 60 days, which period maybe 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 thathave 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. The court may appoint the Federal Deposit InsuranceCorporation as receiver for the savings institution if it finds that to do sowould be in the public interest. Upon its being appointed, the FederalDeposit Insurance Corporation shall not be required to post bond, and itshall have as receiver all those powers afforded under federal law.
D. The Commissioner may issue and serve upon an association an order to ceaseand 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, regulation, or order.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 thereof andshall contain a notice to the association of its right to request a hearingon the order in accordance with the Commission's Rules.
E. When the unsafe or unsound practice or the violation specified in an orderto cease and desist, or any continuation thereof, is likely to prejudice theinterests of the account holders or the stockholders of an association, theCommissioner may issue his order effective immediately. An order to cease anddesist shall remain in effect until it is withdrawn by the Commissioner or isterminated by the Commission after a hearing on the matter. A request forhearing under this section shall be given expeditious treatment on the docketof the Commission, and the Commission need not allow for 10 days' notice tothe parties.
(Code 1950, § 6-201.60; 1960, c. 402; 1966, c. 584, § 6.1-190; 1972, c. 796,§ 6.1-195.70; 1983, c. 506; 1985, c. 425, § 6.1-194.83; 1990, c. 3; 2010, c.794.)
§ 6.2-1199. (Effective October 1, 2010) Powers of Commission in case ofnonobservance of law, noncompliance with orders, insufficient reserves orinsolvency; appointment of Federal Deposit Insurance Corporation as receiver.
A. If the Commission finds that: (i) the laws of the Commonwealth are notbeing fully observed by a savings institution doing business in theCommonwealth; (ii) a savings institution is being operated in an unsafe orunsound manner; (iii) the institution has failed to comply with the lawfulorders of the Commission; (iv) the reserve of the institution is insufficientfor the protection of account holders; or (v) a savings institution is, or isabout to become, insolvent, it shall give immediate notice thereof to theofficers and directors of the institution. If necessary to conserve theassets of the institution or to protect the interests of its account holdersor the public interest, the Commission may, after reasonable notice to theinstitution and opportunity for it to be heard:
1. Close the institution for a period not exceeding 60 days, which period maybe 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 thathave 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. The court may appoint the Federal Deposit InsuranceCorporation as receiver for the savings institution if it finds that to do sowould be in the public interest. Upon its being appointed, the FederalDeposit Insurance Corporation shall not be required to post bond, and itshall have as receiver all those powers afforded under federal law.
D. The Commissioner may issue and serve upon an association an order to ceaseand 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, regulation, or order.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 thereof andshall contain a notice to the association of its right to request a hearingon the order in accordance with the Commission's Rules.
E. When the unsafe or unsound practice or the violation specified in an orderto cease and desist, or any continuation thereof, is likely to prejudice theinterests of the account holders or the stockholders of an association, theCommissioner may issue his order effective immediately. An order to cease anddesist shall remain in effect until it is withdrawn by the Commissioner or isterminated by the Commission after a hearing on the matter. A request forhearing under this section shall be given expeditious treatment on the docketof the Commission, and the Commission need not allow for 10 days' notice tothe parties.
(Code 1950, § 6-201.60; 1960, c. 402; 1966, c. 584, § 6.1-190; 1972, c. 796,§ 6.1-195.70; 1983, c. 506; 1985, c. 425, § 6.1-194.83; 1990, c. 3; 2010, c.794.)
§ 6.2-1199. (Effective October 1, 2010) Powers of Commission in case ofnonobservance of law, noncompliance with orders, insufficient reserves orinsolvency; appointment of Federal Deposit Insurance Corporation as receiver.
A. If the Commission finds that: (i) the laws of the Commonwealth are notbeing fully observed by a savings institution doing business in theCommonwealth; (ii) a savings institution is being operated in an unsafe orunsound manner; (iii) the institution has failed to comply with the lawfulorders of the Commission; (iv) the reserve of the institution is insufficientfor the protection of account holders; or (v) a savings institution is, or isabout to become, insolvent, it shall give immediate notice thereof to theofficers and directors of the institution. If necessary to conserve theassets of the institution or to protect the interests of its account holdersor the public interest, the Commission may, after reasonable notice to theinstitution and opportunity for it to be heard:
1. Close the institution for a period not exceeding 60 days, which period maybe 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 thathave 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. The court may appoint the Federal Deposit InsuranceCorporation as receiver for the savings institution if it finds that to do sowould be in the public interest. Upon its being appointed, the FederalDeposit Insurance Corporation shall not be required to post bond, and itshall have as receiver all those powers afforded under federal law.
D. The Commissioner may issue and serve upon an association an order to ceaseand 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, regulation, or order.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 thereof andshall contain a notice to the association of its right to request a hearingon the order in accordance with the Commission's Rules.
E. When the unsafe or unsound practice or the violation specified in an orderto cease and desist, or any continuation thereof, is likely to prejudice theinterests of the account holders or the stockholders of an association, theCommissioner may issue his order effective immediately. An order to cease anddesist shall remain in effect until it is withdrawn by the Commissioner or isterminated by the Commission after a hearing on the matter. A request forhearing under this section shall be given expeditious treatment on the docketof the Commission, and the Commission need not allow for 10 days' notice tothe parties.
(Code 1950, § 6-201.60; 1960, c. 402; 1966, c. 584, § 6.1-190; 1972, c. 796,§ 6.1-195.70; 1983, c. 506; 1985, c. 425, § 6.1-194.83; 1990, c. 3; 2010, c.794.)
