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Section: 370.0140 Director, cease and desist orders--grounds--hearing--procedure--review, temporary orders. RSMO 370.140


Published: 2015

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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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