Home Table of Contents

§ 104.608. Regulatory Orders.


Barclays Official California Code of Regulations Currentness
Title 10. Investment
Chapter 2. Savings and Loan Commissioner
Subchapter 4. Operations -General
Article 6. Foreign Savings Associations
10 CCR § 104.608
§ 104.608. Regulatory Orders.
(a) If, after notice and hearing, the Commissioner finds that any foreign savings association has violated any provision of the Savings Association Law or of any regulation or order issued pursuant to this chapter, the Commissioner may order the foreign savings association to pay to the Commissioner a penalty in such amount as the Commissioner may specify, provided that the amount of the penalty shall not exceed $1,000 per violation, or for a continuing violation, $1,000 for each day or part thereof for which such violation continues.
(b)(1) If the Commissioner, as a result of any examination or from any report, finds that any foreign savings association has violated, is violating, or is about to violate any provision of this subchapter or of the Savings Association Law or any law or regulation of this state or of the United States, or is engaging in an unsafe or unsound business practice, the Commissioner may, by formal written order delivered to the principal California office of the foreign savings association, state any alleged violation or practice and the facts supporting the allegation, and order discontinuance of the violation or practice, conformance with all requirements of law and regulation, and any remedial action deemed necessary and appropriate.
(2) Unless otherwise indicated, the order shall be effective immediately and shall remain in effect until withdrawn by the Commissioner or terminated by a court order.
(3) The order, upon application made on or after its effective date by the Commissioner to the superior court of the county in which the foreign savings association's principal California office is located, shall be enforced ex parte and without notice by an order to comply entered by the court. The proceedings shall be given precedence over other cases pending in court, and shall in every way be expedited.
(4) Any foreign savings association affected by an order of the Commissioner shall, after its receipt, have the right to apply within 10 days to the court for a hearing and order suspending the order of the Commissioner until the hearing has been completed. The hearing shall be held as provided in a notice to the Commissioner by the court. The Court may stay or suspend the Commissioner's order only if the foreign savings association establishes that the order is likely to be reversed after hearing.
(5) Whether upon application by the Commissioner or by the foreign savings association, the court shall have the power to enter and enforce the proper order or orders or to dismiss the matter. The burden of proof shall be upon the foreign savings association to establish that the Commissioner's order was issued unlawfully.
(c)(1) The Commissioner may require that any director, officer, or employee of a foreign savings association who has consented to or participated in a violation of law or regulation or an unsafe or unsound practice or who has breached his or her fiduciary duty to the foreign savings association be removed from supervision of or employment at any California office of the foreign savings association if the action of the person or persons concerned was knowingly and willfully taken.
(2) Prior to entering an order of removal, the Commissioner shall deliver a full statement of the objectionable acts and conduct to the board of directors of the foreign savings association and the person or persons concerned and notice of the Commissioner's intention to issue a removal order.
(3) If a hearing on the matter is requested within 10 days after delivery of the notice to the foreign savings association, the Commissioner shall hold a public hearing at which any evidence relating to the matters set forth in the statement may be presented. After the hearing, the Commissioner, on the basis of the evidence presented at the hearing, may proceed to enter an order for the immediate removal of the director, officer, or employee affected, a reprimand to the individuals and foreign savings association concerned, or a dismissal of the entire matter. The Commissioner's order may include such conditions as are deemed appropriate.
(4) If no hearing is requested within the time specified, the Commissioner may proceed to enter a final order of removal on the basis of the facts set forth in the original statement.
(5) No director, officer, or employee who has been removed from his or her position pursuant to a removal order that has become final, shall thereafter participate in any manner in the conduct of the affairs of the California office(s) of the foreign savings association from which that director, officer, or employee was removed, or without prior written approval of the Commissioner, serve as a director, officer, or employee of any association or California office of a foreign savings association.
(6) With respect to any officer, director, or employee of a foreign savings association who is the subject of a statement delivered by the Commissioner pursuant to subdivision (2), the Commissioner may, if the Commissioner deems it necessary for the protection of savings account holders, borrowers, or stockholders resident in this state, by written notice to that effect served upon the officer, director, or employee, prohibit him or her from further participation in any manner in the conduct of the affairs of the California office. The prohibition shall become effective upon service of the notice and, unless stayed by a court in proceedings authorized by subdivision (7), shall remain in effect pending completion of the proceedings pursuant to the statement delivered under subdivision (2) and until the effective date of an order entered by the Commissioner under subdivision (3) or subdivision (4). A copy of the notice shall also be served upon the foreign savings association of which the person is a director, officer, or employee.
(7) Within 10 days after any director, officer, or employee has become subject to a suspension or prohibition under subdivision (6), such person may apply to a court having jurisdiction for a stay of the suspension or prohibition pending completion of the proceedings, pursuant to subdivisions (3), or (4) and the court shall have power to stay the prohibition.
Note: Authority cited: Sections 8053 and 10012, Financial Code. Reference: Sections 5810, 8200, 8201 and 10012, Financial Code.
1. New section filed 7-1-87; operative 7-1-87 pursuant to Government Code Section 11346.2(d) (Register 87, No. 28).
This database is current through 7/29/22 Register 2022, No. 30
10 CCR § 104.608, 10 CA ADC § 104.608
End of Document