6.2-1098 - (Effective October 1, 2010) Revocation of trust powers.
§ 6.2-1098. (Effective October 1, 2010) Revocation of trust powers.
A. If, in the opinion of the Commission, an association is unlawfully orunsoundly exercising, or has unlawfully or unsoundly exercised, or has failedfor a period of five consecutive years to exercise, the powers granted bythis chapter, or otherwise fails or has failed to comply with therequirements of this chapter, the Commission may issue and serve upon theassociation a notice of intent to revoke the authority of the association toexercise the powers granted by this chapter. The notice shall contain astatement of the facts constituting the alleged unlawful or unsound exerciseof powers, or failure to exercise powers, or failure to comply, and shall fixa time and place at which a hearing will be held before the Commission todetermine whether an order revoking authority to exercise such powers shouldissue against the association.
B. Such hearing shall be conducted in accordance with the Commission's Rules,and shall be fixed for a date not earlier than 30 days and not later than 60days after the service of such notice, unless an earlier or later date is setby the Commission at the request of the association so served.
C. Unless the association so served shall appear by a duly authorizedrepresentative, it shall be deemed to have consented to the issuance of therevocation order. In the event of such consent or if, upon the record made atany such hearing, the Commission shall find that any allegation specified inthe notice of charges has been established, the Commission shall issue andserve upon the association an order prohibiting it from accepting any new oradditional trust accounts and revoking authority to exercise any and allpowers granted by this chapter, except that such order shall permit theassociation to continue to service all previously accepted trust accountspending their expeditious divestiture or termination.
D. A revocation order shall become effective not later than the expiration of30 days after service of such order upon the association and shall remaineffective and enforceable, except to such extent as it is stayed, modified,terminated, or set aside by action of the Commission or a reviewing court. Inthe case of a revocation order issued upon the consent of an association,such order shall become effective at the time specified therein.
(1984, c. 303, § 6.1-195.95; 2010, c. 794.)