Section 8-401 - Orders of Division Director.
§ 8-401. Orders of Division Director.
(a) Authority.- The Division Director may issue orders:
(1) To compel a savings and loan association or related entity to comply with its charter or bylaws, any applicable law, or any rule or regulation;
(2) To direct a savings and loan association or related entity to cease and desist from any unsafe or unsound business practice including, but not limited to, unsound or unsafe interest rates, any practice injurious to the public interest, or any violation of State law or regulation relating to savings and loan associations; or
(3) To direct a savings and loan association or related entity to remove any officer, director, or employee who has participated in or consented to any violation of law, regulation, or order relating to savings and loan associations, any unsafe or unsound business practice in the operation of the association, any insider loan not authorized by § 9-307 of this article, or any repeated violation of the association's charter or bylaws.
(b) Content.- An order issued by the Division Director under this section to a savings and loan association, or related entity shall:
(1) Be in writing and signed by the Division Director;
(2) State the alleged violation in detail and the facts that constitute the violation;
(3) Direct the association or related entity to discontinue the violation or to take the ordered remedial action; and
(4) State that the association or related entity has a right to a hearing with respect to matters set forth in the order if it submits a request for hearing within 20 days of the date of the order.
(c) Hearing.- Upon receipt of such request, a hearing shall be scheduled promptly before the Division Director or the Division Director's designee and notice of the date, time, and place of the hearing shall be provided to the association, holding company, or subsidiary in writing by the Division Director.
(d) Service.- An order shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to:
(1) The president of the savings and loan association or related entity at its principal office in this State; or
(2) Whomever the association or related entity designates to the Division Director.
(e) Emergency orders.-
(1) (i) In addition to an order issued under subsection (a) of this section, the Division Director may issue an emergency order with respect to any matter set forth in subsection (a) of this section if the Division Director determines that the protection of depositors, members, or stockholders of the association or the protection of the public requires immediate corrective action.
(ii) Emergency orders shall:
1. Be effective on receipt;
2. Specify the charges and a hearing date within 30 days; and
3. Notify the recipient that, upon application, a hearing to abate the order will be scheduled within 10 days.
(2) By its terms, an emergency order may be continued in effect until the effective date of a final order.
[An Code 1957, art. 23, §§ 161G, 161H; 1980, ch. 33, § 2; 1983, ch. 563; 1986, ch. 282; 2004, ch. 25.]