12 U.S.C. § 4636a - Removal and prohibition authority
|Cite as:||12 U.S.C. § 4636a|
|Currency:||Current through P.L. 115-338|
(a) Authority to issue order
(1) In general
The Director may serve upon a party described in paragraph (2), or any officer, director, or management of the Office of Finance a written notice of the intention of the Director to suspend or remove such party from office, or prohibit any further participation by such party, in any manner, in the conduct of the affairs of the regulated entity.
A party described in this paragraph is an entity-affiliated party or any officer, director, or management of the Office of Finance, if the Director determines that-
(A) that party, officer, or director has, directly or indirectly-
(I) any law or regulation;
(II) any cease and desist order which has become final;
(III) any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity; or
(IV) any written agreement between such regulated entity and the Director;
(ii) engaged or participated in any unsafe or unsound practice in connection with any regulated entity or business institution; or
(iii) committed or engaged in any act, omission, or practice which constitutes a breach of such party's fiduciary duty;
(B) by reason of the violation, practice, or breach described in subparagraph (A)-
(i) such regulated entity or business institution has suffered or will probably suffer financial loss or other damage; or
(ii) such party has received financial gain or other benefit; and
(C) the violation, practice, or breach described in subparagraph (A)-
(i) involves personal dishonesty on the part of such party; or
(ii) demonstrates willful or continuing disregard by such party for the safety or soundness of such regulated entity or business institution.
(b) Suspension order
(1) Suspension or prohibition authority
If the Director serves written notice under subsection (a) upon a party subject to that subsection (a), the Director may, by order, suspend or remove such party from office, or prohibit such party from further participation in any manner in the conduct of the affairs of the regulated entity, if the Director-
(A) determines that such action is necessary for the protection of the regulated entity; and
(B) serves such party with written notice of the order.
(2) Effective period
Any order issued under this subsection-
(A) shall become effective upon service; and
(B) unless a court issues a stay of such order under subsection (g), shall remain in effect and enforceable until-
(i) the date on which the Director dismisses the charges contained in the notice served under subsection (a) with respect to such party; or
(ii) the effective date of an order issued under subsection (b).
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