BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS
BANK AND CREDIT UNION REGULATORY AND ENFORCEMENT
Enforcement and Administration
383-A:9-903 Order to Show Cause; Cease and Desist Order.
(a) The commissioner may issue (i) an order to show cause why fines and penalties should not be applied, (ii) a cease and desist order, or (iii) both, in accordance with this provision to any person that is engaged or that has engaged in any violation of the Banking Acts or the Credit Union Act, including holding itself, himself, or herself out as a state bank or credit union without a charter and authority issued under this chapter, or to any state bank or credit union or bank holding company under the supervision of the commissioner that is engaging in or has engaged in any of the following:
(1) An unsafe or unsound practice in conducting the business of the state bank or credit union or company;
(2) Violation of any federal or state law, rule or regulation or agreement relating to the supervision of the entity; or
(3) Violation of any condition, imposed in writing, in connection with the approval of any application by the commissioner.
Each of the acts or conduct identified in the order shall constitute a separate violation. Any order issued under this section shall comply with the procedures for adjudicative hearing under RSA 541-A:31 through RSA 541-A:36.
(b) If the commissioner finds that the violation or practice set forth in subsection (a) requires immediate action for the protection of depositors or the public, or where the violation or practice, or the continuation of the violation or practice, is likely to cause insolvency or substantial dissipation of the assets, capital or earnings of a state bank or credit union, then the commissioner may issue orders under subsection (a) which shall become effective upon service of those orders, without prior notice or hearing. Upon entry of the order, the commissioner shall promptly notify the person (i) that the order has been entered, (ii) the reasons for the order, and (iii) that within 10 calendar days the matter will be scheduled for a hearing unless the time period is waived by the person subject to the order.
(c) Valid delivery of any order under this article shall be by hand or certified mail to the person at the last known principal office or main office address if a depository bank or credit union, by hand or certified mail to the legal representative of the person, or for a trust company or family trust company to an executive officer.
(d) Upon notice and opportunity for hearing, any person who intentionally violates any cease and desist order of the commissioner issued under this section may be subject to the imposition of an additional administrative fine for each violation, and the fine shall be the greater of $100 a day for every day or part of a day during which the violation continues, or $2,500.
(e) If the person to whom an order to show cause or other order is issued fails to request a hearing within 30 calendar days of receipt or valid delivery of the order and no hearing is ordered by the commissioner, or the person fails to appear at a hearing after being duly notified, or cannot be located after a reasonable search, then the person shall be deemed in default, and, on the thirty-first day, the order shall become permanent and shall remain in full force and effect until and unless later modified or vacated by the commissioner, for good cause shown.
(f) Decisions issued by the commissioner under this section may be appealed in accordance with RSA 541.
(g) If any person refuses to obey the commissioner's order, an action may be brought by the attorney general on the commissioner's behalf in any superior court in this state to enjoin such person from engaging in or continuing such violation or from doing any act or acts in furtherance of such violation. In any such action, an order or judgment may be entered awarding a temporary or permanent injunction, and awarding the commissioner or the attorney general or both costs in bringing such action.
(h) A person who is subject to an order of the commissioner shall not have any civil or criminal liability in an action brought by the state for any act or omission made in good faith in reliance upon that order, even if a subsequent decision of any court invalidates that order.
(i) In addition to any other penalty provided for under this chapter, and after notice and opportunity for hearing, the commissioner may impose:
(1) An administrative penalty of not more than $2,500 upon any person who violates, or participates in any act or conduct that violates, the Banking Acts, the Credit Union Act, or any rule or order issued under the Banking Acts or Credit Union Act; and
(2) An additional penalty of $25,000 upon any person who willfully violates the Banking Acts, the Credit Union Act, or any rule or order issued under the Banking Acts or Credit Union Act. Each of the acts specified shall constitute a separate violation.
(j) An enforcement action under this article shall be commenced within 6 years after the date on which the violation occurred.
Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 169:7, eff. July 10, 2019.