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§ 5-808. Cease and desist orders

West's Annotated Code of MarylandFinancial InstitutionsEffective: July 1, 2009

West's Annotated Code of Maryland
Financial Institutions
Title 5. Banking Institutions--General Provisions
Subtitle 8. Prohibited Activities; Penalties (Refs & Annos)
Effective: July 1, 2009
MD Code, Financial Institutions, § 5-808
§ 5-808. Cease and desist orders
Currentness
In general
(a) 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.
Restrictions on withdrawal of money
(b) 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.
Requirement that officers or directors act affirmatively
(c) 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.
Hearings
(d)(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.1
Immediate actions to protect depositors, stockholders, or the public
(e) 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.

Credits

Added by Acts 1981, c. 754, § 1, eff. July 1, 1981. Amended by Acts 1996, c. 326, § 2, eff. July 1, 1996; Acts 2009, c. 741, § 1, eff. July 1, 2009.

Footnotes

1
State Government § 10-101 et seq.
MD Code, Financial Institutions, § 5-808, MD FIN INST § 5-808
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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