Tex.
Fin. Code Section 35.002
Cease and Desist Order
(a)
The banking commissioner has grounds to issue a cease and desist order to a current or former officer, employee, or director of a state bank, or the bank itself acting through an authorized person, if the banking commissioner determines from examination or other credible evidence that the bank or person directly or indirectly has:(1)
violated this subtitle or another applicable law;(2)
engaged in a breach of trust or other fiduciary duty;(3)
refused to submit to examination or examination under oath;(4)
conducted business in an unsafe or unsound manner; or(5)
violated a condition of the bank’s charter or an agreement between the bank or the person and the banking commissioner or the department.(b)
If the banking commissioner has grounds for action under Subsection (a) and finds that an order to cease and desist from a violation appears to be necessary and in the best interest of the bank involved and its depositors, creditors, and shareholders, the banking commissioner may serve a proposed cease and desist order on the bank and each person who committed or participated in the action. The proposed order must:(1)
be delivered by personal delivery or by registered or certified mail, return receipt requested;(2)
state with reasonable certainty the grounds for the proposed order; and(3)
state the effective date of the order, which may not be before the 21st day after the date the proposed order is delivered or mailed.(b-1)
A proposed cease and desist order may require an officer, employee, or director of a state bank, or the bank itself acting through an authorized person, to cease or desist from a violation or other practice or to take affirmative action to correct the conditions resulting from a violation or other practice, including the payment of restitution or other action that the banking commissioner determines is appropriate.(c)
The order takes effect if the bank or person against whom the proposed order is directed does not request a hearing in writing before the effective date. After taking effect, the order is final and nonappealable as to that bank or person.
Source:
Section 35.002 — Cease and Desist Order, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.35.htm#35.002 (accessed May 11, 2024).
