§ 54C-81. Supervisory control.

§ 54C‑81.  Supervisorycontrol.

(a)        Whenever theCommissioner of Banks determines that a savings bank is conducting its businessin an unsafe or unsound manner or in any fashion that threatens the financialintegrity or sound operation of the savings bank, the Commissioner of Banks mayserve a notice of charges on the savings bank, requiring it to show cause whyit should not be placed under supervisory control. The notice of charges shallspecify the grounds for supervisory control, and set the time and place for ahearing. A hearing before the Commission shall be held within 15 days afterissuance of the notice of charges, and shall comply with Article 3A of Chapter150B of the General Statutes.

(b)        If, after thehearing provided in subsection (a) of this section, the Commission determinesthat supervisory control of the savings bank is necessary to protect thesavings bank's members, customers, stockholders, or creditors, or the generalpublic, the Commissioner of Banks shall issue an order taking supervisorycontrol of the savings bank. An appeal may be filed in the Wake County SuperiorCourt.

(c)        If the order takingsupervisory control becomes final, the Commissioner of Banks may appoint anagent to supervise and monitor the operations of the savings bank during theperiod of supervisory control. During the period of supervisory control, thesavings bank shall act in accordance with any instructions and directions asmay be given by the Commissioner of Banks, directly or through a supervisoryagent, and shall not act or fail to act except when to do so would violate anoutstanding cease and desist order.

(d)        Within 180 days ofthe date the order taking supervisory control becomes final, the Commissionerof Banks shall issue an order approving a plan for the termination ofsupervisory control. The plan may provide for:

(1)        The issuance by thesavings bank of capital stock;

(2)        The appointment ofone or more officers, one or more directors, or one or more officers anddirectors;

(3)        The reorganization,merger, or consolidation of the savings bank; and

(4)        The dissolution andliquidation of the savings bank.

The order approving the planshall not take effect for 30 days during which time period an appeal may befiled in the Wake County Superior Court.

(e)        The costs incidentto this proceeding shall be paid by the savings bank, provided the costs arefound to be reasonable.

(f)         For the purposesof this section, an order is deemed final if:

(1)        No appeal is filedwithin the specific time allowed for the appeal, or

(2)        After all judicialappeals are exhausted. (1991, c. 680, s. 1; 2001‑193, s. 16.)