Section 490.210 - Notice of charges; issuance and service; statement of facts; hearing; issuance of cease and desist order; enforcement; violation by federal credit union.
CREDIT UNION ACT (EXCERPT)
Act 215 of 2003
490.210 Notice of charges; issuance and service; statement of facts; hearing; issuance of cease and desist order; enforcement; violation by federal credit union.
Sec. 210.
(1) If in the opinion of the commissioner a domestic credit union is engaging, has engaged, or is about to engage in an unsafe or unsound practice in conducting the business of the domestic credit union or is violating, has violated, or is about to violate a law or rule, the commissioner may issue and serve upon the domestic credit union a notice of charges. The notice shall contain a statement of the facts constituting the alleged unsafe or unsound practice or violation and shall fix a time and place for a hearing to determine whether the commissioner should issue an order to cease and desist. The hearing shall be not earlier than 30 days nor later than 60 days after service of the notice unless an earlier or later date is set by the commissioner at the request of the domestic credit union. If the domestic credit union does not appear at the hearing by a duly authorized representative, it has consented to the issuance of a cease and desist order.
(2) If a domestic credit union consents to a cease and desist order under subsection (1) or if upon the record made at the hearing under subsection (1) the commissioner finds that an unsafe or unsound practice or violation specified in the notice of charges has occurred, the commissioner may issue and serve upon the domestic credit union an order to cease and desist from the practice or violation. The order may require the domestic credit union and its directors, officers, employees, and agents to cease and desist from the practice or violation and to take affirmative action to correct the conditions resulting from the practice or violation.
(3) A cease and desist order issued after a hearing under subsection (2) is effective 30 days after the service of the order upon the domestic credit union. A cease and desist order issued with the consent of the domestic credit union under subsection (2) is effective at the time specified in the order. A cease and desist order is effective and enforceable as provided in the order, except to the extent it is stayed, modified, terminated, or set aside by action of the commissioner or a reviewing court.
(4) If the commissioner determines that a foreign credit union branch located in this state is acting in violation of the laws of this state or that the activities of the branch are being conducted in an unsafe and unsound manner, the commissioner may take any enforcement action that would be permitted under this act if the branch were a domestic credit union.
(5) If the commissioner determines that a federal credit union is acting in violation of the laws of this state, the commissioner shall notify the national credit union administration and the attorney general.
History: 2003, Act 215, Eff. June 1, 2004