Missouri Revised Statutes
Chapter 370
Credit Unions
←370.130
Section 370.140.1
370.150→
August 28, 2015
Director, cease and desist orders--grounds--hearing--procedure--review, temporary orders.
370.140. 1. (1) The director may issue cease and desist orders whenever
it appears to him, upon competent and substantial evidence from any report or
examination, that any person:
(a) Is engaging or has engaged in an unsafe or unsound practice in
conducting the business of a credit union;
(b) Is violating or has violated a material provision of any law, rule,
regulation, or any condition imposed in writing by the director or any
written agreement made with the director;
(c) Is about to do the acts prohibited in paragraph (a) or (b) of this
subdivision if, in his opinion, the threat which exists is based upon
reasonable cause.
(2) Before any cease and desist order shall be issued, a copy of the
proposed order, a list of the reasons for such order, and a list of the
specific violations relied upon with such details that the credit union may
readily respond, together with an order to show cause why such cease and
desist order should not be issued, shall be served, either personally or by
certified mail, on the chairman of the board/president, the supervisory
committee, the president/manager of the credit union or any other concerned
person.
2. (1) Upon issuing any order to show cause, the director shall notify
the person named therein that the person is entitled to a public hearing
before the director if a request for a hearing is made in writing to the
director within fifteen days from the date of the service of the order to
show cause why the cease and desist order should not be issued.
(2) The cease and desist order shall be issued fifteen days after the
service of the order to show cause if no request for a public hearing is made
as above provided.
(3) Upon receipt of a request for a hearing, the director shall set a
time and place for the hearing which shall not be less than ten days or more
than thirty days from the receipt of the request, or as otherwise agreed upon
by the parties. Notice of the time and place shall be given by the director
not less than seven days before the hearing.
(4) At the hearing the person may be represented by counsel and shall be
entitled to be advised, at such hearing or no later than seventy-two hours
prior to the hearing upon written request to the director, of the nature and
source of any adverse evidence procured by the director, and shall be given
the opportunity to submit any relevant written or oral evidence in his behalf
to show cause why the cease and desist order should not be issued. No order
shall be later overturned due to a failure to give prior notice of any
information used at the hearing so long as the director acted in good faith
in providing the information.
(5) At the hearing the director or any of his duly appointed agents may
compel the attendance before him, and the director may examine, under oath,
the directors, officers, employees, agents, or any other person in reference
to the condition, affairs, management of the business, or any matters
relating to the credit union. He may administer oaths or affirmations, and
he shall have power to issue subpoenas to compel the attendance of witnesses,
and to issue subpoenas duces tecum to require and compel the production of
records, books, papers, contracts, or other documents if necessary. Moreover,
he shall, upon request of respondents, issue such subpoenas and subpoenas
duces tecum on behalf of the respondent.
(6) At the conclusion of the hearing, or within fifteen days thereafter,
the director shall issue the cease and desist order as proposed or as
subsequently modified or shall notify the person that no order shall be
issued. Such cease and desist order shall be served on the person either
personally or by certified mail as set out in subdivision (2) of subsection 1
of this section. Further, upon issuing such cease and desist order, the
director, at his discretion, may supplement such order with a written
statement advising the person that, conditioned upon suitable actions having
been taken to correct the violations or practices set out in the order and
upon competent and substantial evidence of such corrective actions having
been submitted to the director for his approval, he may rescind the cease and
desist order.
(7) The circuit court of Cole County, or the circuit court of the county
in which the principal office of such person is located, shall have
jurisdiction to review any cease and desist order of the director under
provisions of sections 536.100 to 536.150; and if any person against whom an
order is issued fails to request judicial review, or if, after judicial
review, the director's cease and desist order is upheld, the order shall
become final.
(8) The commencement of proceedings under subdivision (7) of this section
does not, unless specifically ordered by the court, operate as a stay of the
director's order.
(9) Every hearing in an administrative proceeding shall be public, unless
the director in his discretion grants a request, joined in by all the
respondents, that the hearing be conducted privately.
3. Whenever it shall appear to the director that the violation or
threatened violation or the unsafe or unsound practice or practices specified
in the cease and desist order served upon the person participating in the
conduct of the affairs of such credit union pursuant to subsection 1 of this
section, or that the continuation of such violation or practice is likely to
cause insolvency or substantial dissipation of the assets or earnings of the
credit union or is likely to seriously weaken the condition of the credit
union or otherwise seriously prejudice the interests of its members and its
shareholders, prior to the completion of the proceedings conducted pursuant
to said subsection, the director may issue a temporary cease and desist
order, effective immediately, requiring the person to cease and desist from
any such violation or practice and take affirmative action to prevent such
insolvency, dissipation, condition or prejudice pending completion of such
proceedings. Such temporary cease and desist order shall remain effective
and enforceable pending the completion of the administrative proceedings
pursuant to such order and until such time as the director shall dismiss the
charges specified in such order, or if a permanent cease and desist order is
issued against the person, until the effective date of such order. The person
may, within fifteen days after having been served with a temporary cease and
desist order, apply to the circuit court of Cole County, or the circuit court
of the county in which the principal office of such credit union is located,
for an order setting aside, limiting, or suspending the enforcement,
operation, or effectiveness of such cease and desist order.
4. Any person willfully violating any provision of any cease and desist
order of the director of the division of credit unions after it becomes
final, while the same is in force, shall pay a civil penalty of not more than
one hundred dollars per day for each day such violation shall continue.
5. The term "person" as used in this section shall include either the
singular or plural of any individual, credit union, partnership, corporation,
association or trust, or any other legal entity.
(RSMo 1939 § 5526, A.L. 1945 p. 689, A.L. 1945 p. 720, A.
1949 H.B. 2091, A.L. 1967 p. 509, A.L. 1985 H.B. 469)
Prior revision: 1929 § 5084
Effective 6-11-85
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