Section 370.140

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 370

Effective - 11 Jun 1985, see footnote   

  370.140.  Director, cease and desist orders — grounds — hearing — procedure — review, temporary orders. — 1.  (1)  The director may issue cease and desist orders whenever it appears to him, upon competent and substantial evidence from any report or examination, that any person:

  (a)  Is engaging or has engaged in an unsafe or unsound practice in conducting the business of a credit union;

  (b)  Is violating or has violated a material provision of any law, rule, regulation, or any condition imposed in writing by the director or any written agreement made with the director;

  (c)  Is about to do the acts prohibited in paragraph (a) or (b) of this subdivision if, in his opinion, the threat which exists is based upon reasonable cause.

  (2)  Before any cease and desist order shall be issued, a copy of the proposed order, a list of the reasons for such order, and a list of the specific violations relied upon with such details that the credit union may readily respond, together with an order to show cause why such cease and desist order should not be issued, shall be served, either personally or by certified mail, on the chairman of the board/president, the supervisory committee, the president/manager of the credit union or any other concerned person.

  2.  (1)  Upon issuing any order to show cause, the director shall notify the person named therein that the person is entitled to a public hearing before the director if a request for a hearing is made in writing to the director within fifteen days from the date of the service of the order to show cause why the cease and desist order should not be issued.

  (2)  The cease and desist order shall be issued fifteen days after the service of the order to show cause if no request for a public hearing is made as above provided.

  (3)  Upon receipt of a request for a hearing, the director shall set a time and place for the hearing which shall not be less than ten days or more than thirty days from the receipt of the request, or as otherwise agreed upon by the parties.  Notice of the time and place shall be given by the director not less than seven days before the hearing.

  (4)  At the hearing the person may be represented by counsel and shall be entitled to be advised, at such hearing or no later than seventy-two hours prior to the hearing upon written request to the director, of the nature and source of any adverse evidence procured by the director, and shall be given the opportunity to submit any relevant written or oral evidence in his behalf to show cause why the cease and desist order should not be issued.  No order shall be later overturned due to a failure to give prior notice of any information used at the hearing so long as the director acted in good faith in providing the information.

  (5)  At the hearing the director or any of his duly appointed agents may compel the attendance before him, and the director may examine, under oath, the directors, officers, employees, agents, or any other person in reference to the condition, affairs, management of the business, or any matters relating to the credit union.  He may administer oaths or affirmations, and he shall have power to issue subpoenas to compel the attendance of witnesses, and to issue subpoenas duces tecum to require and compel the production of records, books, papers, contracts, or other documents if necessary.  Moreover, he shall, upon request of respondents, issue such subpoenas and subpoenas duces tecum on behalf of the respondent.

  (6)  At the conclusion of the hearing, or within fifteen days thereafter, the director shall issue the cease and desist order as proposed or as subsequently modified or shall notify the person that no order shall be issued.  Such cease and desist order shall be served on the person either personally or by certified mail as set out in subdivision (2) of subsection 1 of this section.  Further, upon issuing such cease and desist order, the director, at his discretion, may supplement such order with a written statement advising the person that, conditioned upon suitable actions having been taken to correct the violations or practices set out in the order and upon competent and substantial evidence of such corrective actions having been submitted to the director for his approval, he may rescind the cease and desist order.

  (7)  The circuit court of Cole County, or the circuit court of the county in which the principal office of such person is located, shall have jurisdiction to review any cease and desist order of the director under provisions of sections 536.100 to 536.150; and if any person against whom an order is issued fails to request judicial review, or if, after judicial review, the director's cease and desist order is upheld, the order shall become final.

  (8)  The commencement of proceedings under subdivision (7) of this section does not, unless specifically ordered by the court, operate as a stay of the director's order.

  (9)  Every hearing in an administrative proceeding shall be public, unless the director in his discretion grants a request, joined in by all the respondents, that the hearing be conducted privately.

  3.  Whenever it shall appear to the director that the violation or threatened violation or the unsafe or unsound practice or practices specified in the cease and desist order served upon the person participating in the conduct of the affairs of such credit union pursuant to subsection 1 of this section, or that the continuation of such violation or practice is likely to cause insolvency or substantial dissipation of the assets or earnings of the credit union or is likely to seriously weaken the condition of the credit union or otherwise seriously prejudice the interests of its members and its shareholders, prior to the completion of the proceedings conducted pursuant to said subsection, the director may issue a temporary cease and desist order, effective immediately, requiring the person to cease and desist from any such violation or practice and take affirmative action to prevent such insolvency, dissipation, condition or prejudice pending completion of such proceedings.  Such temporary cease and desist order shall remain effective and enforceable pending the completion of the administrative proceedings pursuant to such order and until such time as the director shall dismiss the charges specified in such order, or if a permanent cease and desist order is issued against the person, until the effective date of such order.  The person may, within fifteen days after having been served with a temporary cease and desist order, apply to the circuit court of Cole County, or the circuit court of the county in which the principal office of such credit union is located, for an order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of such cease and desist order.

  4.  Any person willfully violating any provision of any cease and desist order of the director of the division of credit unions after it becomes final, while the same is in force, shall pay a civil penalty of not more than one hundred dollars per day for each day such violation shall continue.

  5.  The term "person" as used in this section shall include either the singular or plural of any individual, credit union, partnership, corporation, association or trust, or any other legal entity.

­­--------

(RSMo 1939 § 5526, A.L. 1945 p. 689, A.L. 1945 p. 720, A. 1949 H.B. 2091, A.L. 1967 p. 509, A.L. 1985 H.B. 469)

Prior revision: 1929 § 5084

Effective 6-11-85