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§ 2-115. Cease and desist orders

West's Annotated Code of MarylandFinancial InstitutionsEffective: July 1, 2022

West's Annotated Code of Maryland
Financial Institutions
Title 2. Commissioner and Boards
Subtitle 1. Commissioner of Financial Regulation (Refs & Annos)
Effective: July 1, 2022
MD Code, Financial Institutions, § 2-115
§ 2-115. Cease and desist orders
Currentness
Summary cease and desist orders
(a) When the Commissioner determines that a person has engaged in an act or practice constituting a violation of a law, regulation, rule or order over which the Commissioner has jurisdiction, and that immediate action against the person is in the public interest, the Commissioner may in the Commissioner's discretion issue, without a prior hearing, a summary order directing the person to cease and desist from engaging in the activity, provided that the summary cease and desist order gives the person:
(1) Notice of the opportunity for a hearing before the Commissioner to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and
(2) Notice that the summary cease and desist order will be entered as final if the person does not request a hearing within 15 days of receipt of the summary cease and desist order.
Determinations by Commissioner after notice and hearing
(b) When the Commissioner determines after notice and a hearing, unless the right to notice and a hearing is waived, that a person has engaged in an act or practice constituting a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction, the Commissioner may in the Commissioner's discretion and in addition to taking any other action authorized by law:
(1) Issue a final cease and desist order against the person;
(2) Suspend or revoke the license of the person;
(3) Issue a penalty order against the person imposing a civil penalty not exceeding:
(i) $10,000 for a first violation; and
(ii) $25,000 for each subsequent violation;
(4) Issue an order against the person requiring the person to take affirmative action to correct the violation, including making restitution to any person aggrieved by the violation; or
(5) Take any combination of the actions specified in this subsection.
Financial penalties
(c) In determining the amount of financial penalty to be imposed under subsection (b) of this section, the Commissioner shall consider the following factors:
(1) The seriousness of the violation;
(2) The good faith of the violator;
(3) The violator's history of previous violations;
(4) The deleterious effect of the violation on the public and the industry involved;
(5) The assets of the violator; and
(6) Any other factors relevant to the determination of the financial penalty.
Construction with Administrative Procedure Act
(d) Notice of any hearing under this section shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.1

Credits

Added by Acts 2000, c. 633, § 1, eff. June 1, 2000. Amended by Acts 2011, c. 127, § 1, eff. April 12, 2011; Acts 2018, c. 731, § 1, eff. Oct. 1, 2018; Acts 2018, c. 732, § 3, eff. Oct. 1, 2018; Acts 2022, c. 106, § 1, eff. July 1, 2022; Acts 2022, c. 107, § 1, eff. July 1, 2022.

Footnotes

1
State Government, § 10-101 et seq.
MD Code, Financial Institutions, § 2-115, MD FIN INST § 2-115
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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