Section 5-808 - Cease and desist orders.
§ 5-808. Cease and desist orders.
(a) In general.- The Commissioner may order any banking institution to cease and desist from:
(1) An unsafe or unsound banking practice;
(2) A practice that is injurious to the public interest; or
(3) A violation of a law, rule, or regulation that relates to the Commissioner's supervision of the institution.
(b) Restriction on withdrawal of money.- To protect depositors, stockholders, or the public, the Commissioner may include in a cease and desist order a restriction on the withdrawal of money from any banking institution.
(c) Affirmative action requirement.- The Commissioner may include in a cease and desist order a requirement that the officers or directors of a banking institution act affirmatively to correct any violation or practice.
(d) Hearing.-
(1) Before a cease and desist order takes effect, the Commissioner shall give the banking institution an opportunity for a hearing.
(2) Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.
(e) Order effective on service.- If the Commissioner determines that the violation or practice under subsection (a) of this section requires immediate action to protect depositors, stockholders, or the public, the Commissioner:
(1) May issue a cease and desist order that is effective on service; and
(2) Shall give the banking institution an opportunity for a hearing to rescind the order.
[1981, ch. 754; 1996, ch. 326, § 2; 2009, ch. 741.]