6.1-32.28 - (Repealed effective October 1, 2010) Commission's remedial powers.
§ 6.1-32.28. (Repealed effective October 1, 2010) Commission's remedialpowers.
A. If the Commission finds that a trust company (i) has failed to fullyobserve the laws of this Commonwealth, (ii) is being operated in an unsafe orunsound manner, (iii) has failed to comply with any Commission order orregulation, (iv) is engaging in any irregular practices, or (v) is, or isabout to become, insolvent or its capital has been, or is in danger of being,impaired, the Commission shall give notice thereof to the officers anddirectors of the company. If necessary to conserve the assets of the companyor protect the public interest, the Commission may:
1. Close the company for a period not exceeding sixty days, which period maybe further extended for a like period or periods as the Commission deemsnecessary;
2. Require that all orders and regulations of the Commission be complied with;
3. Require that the company make reports daily or at such other times as maybe required as to the results achieved in carrying out the Commission'sorders;
4. Require that any irregularities be promptly corrected;
5. Require that any impairment of capital be made good; or
6. Temporarily suspend the right of the company to receive any furtherproperty in a fiduciary capacity.
B. If the Commission determines that a receiver should be appointed for atrust company, the Commission may close the company; take charge of thebooks, assets and affairs of the company; and apply to any circuit court inthe Commonwealth for the appointment of a receiver to take charge of thecompany's business, assets and affairs. Proceedings for appointment of areceiver for a trust company shall not be entertained by any court except onapplication of the Commission.
C. 1. The Commissioner of Financial Institutions may issue and serve upon atrust company a cease and desist order if, in the opinion of theCommissioner, the company is engaging, has engaged, or, there is reasonablecause to believe, is about to engage in an unsafe or unsound practice,irregularity, or any violation of law, rule or regulation applicable to theconduct of its business, or any Commission order. The cease and desist ordershall contain a statement of the facts upon which it is based and mayrequire, in terms that may be mandatory or otherwise, the company and itsdirectors, officers, employees and agents to cease and desist from thepractice or violation. The order shall specify its effective date and shallnotify the company of its right to request a hearing in accordance with theCommission's Rules of Practice and Procedure.
2. When the practice or violation specified in the order, or any continuationthereof, is likely to prejudice the company's stockholders, or persons havingan interest in property held by the company in a fiduciary capacity, theCommissioner may make the order effective immediately. An order shall remainin effect until withdrawn by the Commissioner or terminated by the Commissionafter a hearing. A request for a hearing shall be given expeditious treatmenton the Commission's docket, and the Commission need not allow ten days'notice to the company.
(1993, c. 432; 1994, c. 524; 1995, c. 140.)