BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS
BANK AND CREDIT UNION REGULATORY AND ENFORCEMENT
383-A:7-701 Prohibited Acts.
(a) It shall be unlawful for any person to willfully and maliciously, or with an intent to deceive, make or transmit to another any false statement concerning the financial condition of any state bank or credit union, or to induce another to make such a statement. Any person convicted of a violation of this subsection shall be guilty of a misdemeanor if a natural person or a class B felony if an entity.
(b) It shall be unlawful for any bank or credit union, or any person engaging in the business of banking, to (i) employ any device, scheme, or artifice to defraud, (ii) make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading, or (iii) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. Any person convicted of a violation of this subsection shall be guilty of a misdemeanor if a natural person or a class B felony if an entity.
(c) No director, officer, or employee of a state bank or credit union shall directly or indirectly receive any fee, gift, or benefit whatsoever from any borrower or applicant for a loan from the state bank or credit union as an inducement to making the loan, or from anyone negotiating securities to the entity, except the usual compensation for drawing mortgages and other papers pertaining to the loan; nor shall any director, officer or employee negotiate loans in his or her own behalf with himself or herself as an official of the state bank or credit union. Any director, officer, or employee of the state bank or credit union who violates the provisions of this subsection shall be guilty of a class A felony.
(d) If any director or officer embezzles, abstracts, or willfully misapplies any of the money, funds, or credits of the state bank or credit union or makes any false entry in any book, report, or statement of the state bank or credit union with intent in either case to injure or defraud the state bank, credit union, or any other person or to deceive any officer or agent of the state bank, credit union, any committee or examiner appointed to examine the affairs of the state bank or credit union, or the commissioner, then the director or officer shall be guilty of a class A felony.
(e) If, in the opinion of the commissioner, a state bank, credit union, or any of its directors or officers have violated any of subsections (a), (b), (c), or (d) or any other provision of criminal law, then the commissioner shall forthwith report the violations, with such remarks as the commissioner deems expedient, to the department of justice, which shall immediately institute a prosecution of those violations on behalf of the state.
(f) No person, other than a state bank or credit union empowered by its charter to accept deposits, shall solicit, receive, or accept deposits or transact business in the way or manner that leads the public to believe that the business is that of a state bank or credit union empowered by its charter to accept deposits. Whoever violates any provision of this subsection shall forfeit to the state $1,000 a day for every day or part of a day during which the violation continues. Any violation of the provisions of this subsection shall forthwith be reported by the commissioner to the department of justice, and the forfeiture may be recovered by an information or other appropriate proceeding brought in the superior court in his or her name. Upon that information or other proceeding, the court may issue an injunction restraining the person from further prosecution of the prohibited business within this state during the pendency of the proceeding or for all time, and may make such other order as justice may require.
Source. 2015, 272:16, eff. Oct. 1, 2015.