Chapter 23: CEASE AND DESIST ORDERS; REMOVAL OR CHANGE OF OFFICER OR DIRECTOR
§231. Cease and desist orders
The superintendent has the following authority over financial institutions, out-of-state
financial institutions, financial institution holding companies and subsidiaries thereof.
A. The superintendent may issue and serve an order upon an institution or company requiring
the institution or company to cease and desist from the violation or practice if,
in the opinion of the superintendent, a financial institution or its subsidiary, financial
institution holding company or its subsidiary or out-of-state financial institution
subject to the provisions of this Title is engaging in or has engaged in, or the superintendent
has reasonable cause to believe that the institution or company is about to engage
in, any of the following violations or practices:
(1) An unsafe or unsound practice in conducting the business of the financial institution
(2) Violation of a law, rule or regulation relating to the supervision of the institution
(3) Violation of any condition, imposed in writing, in connection with the approval
of any application by the superintendent;
(4) Violation of any written agreement entered into with the superintendent; or
(5) An anticompetitive or deceptive practice, or one that is otherwise injurious
to the public interest under chapter 24. [1995, c. 628, §16 (RPR).]
B. The superintendent may restrict the withdrawal of funds from one or more financial
institutions in an order issued under paragraph A if, in the opinion of the superintendent,
extraordinary circumstances make such action necessary and appropriate for the protection
of depositors, investors or the public. [2005, c. 82, §3 (AMD).]
C. The order issued under paragraph A may require the officers or directors of the
institution or company or subsidiary to take affirmative action to correct any violation
or practice. [1995, c. 628, §16 (RPR).]
D. Before issuing a cease and desist order against an out-of-state financial institution
operating one or more branches in this State, the superintendent shall request that
the financial institution's home state regulatory agency undertake an enforcement
action. If the home state regulatory agency is unwilling or unable to issue an enforcement
action, the superintendent may then exercise the enforcement authority available under
this section. The superintendent may take enforcement action against a branch of
a foreign financial institution without requesting enforcement action be taken first
by the foreign regulatory agency. Where, in the opinion of the superintendent, emergency
conditions make such enforcement action immediately necessary for the protection of
depositors, shareholders or the public, the superintendent may proceed without requesting
enforcement by the home state regulatory agency. [1995, c. 628, §16 (NEW).]
2005, c. 82, §3 (AMD)
A. Prior to the issuance of any order to cease and desist in accordance with subsection
1, notice shall be given to the institution by the superintendent. Such notice shall
contain a statement of the facts upon which the order is to be issued, and the date
upon which such order is to take effect. [1975, c. 500, §1 (NEW).]
B. Upon petition of any interested party, a hearing in conformity with the Maine Administrative
Procedure Act, Title 5, chapter 375 shall be provided prior to the effective date
of any order issued pursuant to subsection 1, except as provided in subsection 3. [1979, c. 663, §31 (AMD).]
1979, c. 663, §31 (AMD)
3.Temporary cease and desist order.
A. Whenever, in the opinion of the superintendent, the violation or practice set forth
in subsection 1 requires immediate action for the protection of depositors or investors,
or the violation or practice, or the continuation thereof, is likely to cause insolvency
or substantial dissipation of the assets or earnings of the institution, the superintendent
may issue orders pursuant to subsection 1, which become effective upon service thereof,
without prior notice or hearing. [2005, c. 82, §4 (AMD).]
B. If an order is issued by the superintendent pursuant to paragraph A, the superintendent
shall afford an opportunity for a hearing to rescind the order and action taken promptly
thereafter, upon application by an interested party. [1975, c. 500, §1 (NEW).]
2005, c. 82, §4 (AMD)
4.Power as additional.
The power and authority granted to the superintendent by this section shall be in
addition to any enforcement or regulatory powers granted elsewhere in this Title.
1975, c. 500, §1 (NEW)
1975, c. 500, §1 (NEW).
1979, c. 663, §31 (AMD).
1985, c. 328, §§3,4 (AMD).
1995, c. 628, §16 (AMD).
2005, c. 82, §§3,4 (AMD).
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