§412:2-304 Temporary cease and desist orders; effective date; hearing; enforcement. (a) To act with the utmost speed, the commissioner may issue a temporary cease and desist order upon a determination that one or more of the grounds specified in section 412:2-302 are present; provided that, in the case of a Hawaii financial institution or an institution-affiliated party, the commissioner shall not issue a temporary cease and desist order unless the commissioner has also made a determination that the violation, threatened violation, or unsafe or unsound practice is likely to:
(1) Cause insolvency or substantial dissipation of assets; or
(2) Seriously weaken the condition of the institution; or
(3) Otherwise seriously prejudice the interests of the depositors during the period in which a permanent cease and desist order can be obtained.
The order shall be accompanied by a notice of charges stating the alleged violation or wrongful practice, a summary of the facts in support of the allegation, and a time and place for a hearing to determine whether the temporary order shall be made permanent. The order may require discontinuance of a violation or practice; require the immediate compliance with all requirements of any applicable agreement, conditions of approval, order, or law; and direct affirmative action as may be necessary to prevent insolvency or to correct the alleged violation or wrongful practice.
(b) The order shall be effective upon service on the affected party. The order shall remain in effect until a permanent cease and desist order is issued after a hearing, a permanent cease and desist order is consented to, or the charges are dismissed upon completion of a hearing. Any affected party contesting the issuance of the temporary cease and desist order may do so by applying to the circuit court for an injunction.
(c) Within ten days after service of a notice of charges, unless an earlier date or later date is set by the commissioner upon request of the affected party, the commissioner shall hold a hearing in accordance with chapter 91. If no appearance is made at the scheduled hearing by the party or its duly authorized representative, the party shall be deemed to have consented to the issuance of the cease and desist order and the commissioner may convert the temporary cease and desist order into a permanent cease and desist order. Any permanent cease and desist order issued after a hearing held in accordance with this subsection shall become effective after service upon the affected party and shall remain effective until modified or terminated by the commissioner. Any appeal of a permanent cease and desist order shall be made to the circuit court in accordance with chapter 91.
(d) Any temporary cease and desist order may be enforced in the circuit court upon application by the commissioner. Any permanent cease and desist order issued in accordance with this section may be enforced as provided in section 412:2-303(c). [L 1993, c 350, pt of §1; am L 1998, c 196, §5]
Rules of Court
Appeals, see HRCP rule 72.
Injunctions, see HRCP rule 65.
Section: Previous 412-2-111 412-2-200 412-2-201 412-2-300 412-2-301 412-2-302 412-2-303 412-2-304 412-2-305 412-2-306 412-2-307 412-2-308 412-2-309 412-2-310 412-2-311 NextLast modified: October 27, 2016