524.223 Power of superintendent to issue orders. 1. Whenever it shall appear to the superintendent that a state bank, or any director, officer, employee, or substantial shareholder of the state bank, is engaging or has engaged,or the superintendent has reasonable cause to believe that the state bank, director,officer, employee, or substantial shareholder is about to engage, in an unsafe or unsoundpractice in conducting the business of such state bank, or is violating or has violated, orthe superintendent has reasonable cause to believe that the state bank, director, officer,employee, or substantial shareholder is about to violate, any provision of this chapter or ofany regulation adopted pursuant to this chapter, or any condition imposed in writing by thesuperintendent in connection with the approval of any matter required by this chapter, orany written agreement entered into with the superintendent, or any provision of chapter 12Cor any rules adopted pursuant to chapter 12C, the superintendent may issue and serve uponthe state bank, director, officer, employee, or substantial shareholder a notice containinga statement of the facts constituting the alleged violation or violations, intendent may issue and serve uponthe state bank, director, officer, employee, or substantial shareholder a notice containinga statement of the facts constituting the alleged violation or violations, or the unsafe orunsound practice or practices, and fixing a time and place at which a hearing will be held todetermine whether an order to cease and desist should be issued to the state bank, director,officer, employee, or substantial shareholder. 2. If the state bank, director, officer, employee, or substantial shareholder fails to appear at the hearing it shall be deemed to have consented to the issuance of a cease and desist order.In the event of such consent, or if upon the record made at such hearing, the superintendentshall find that any violation or unsafe or unsound practice specified in the notice has beenestablished, the superintendent may issue and serve upon the state bank, director, officer,employee, or substantial shareholder an order to cease and desist from any such violationor practice. Such order may require the state bank and its directors, officers, employees,and shareholders to cease and desist from any such violation or practice and, further, to takeaffirmative tionor practice. Such order may require the state bank and its directors, officers, employees,and shareholders to cease and desist from any such violation or practice and, further, to takeaffirmative action to correct the conditions resulting from any such violation or practice. Inaddition, if the violation or practice involves a failure to comply with chapter 12C or anyrules adopted pursuant to chapter 12C, the superintendent may recommend to the committeeestablished under section 12C.6 that the bank be removed from the list of financial institutionseligible to accept public funds under section 12C.6A and may require that during the currentcalendar quarter and up to the next succeeding eight calendar quarters that the bank do anyone or more of the following: a. Not accept public funds deposits.b. Return to the depositors some or all uninsured public funds held in demand deposits and, when deposit instruments or agreements mature, return to the depositors some or alldeposits representing proceeds of such instruments or agreements. c. Pledge collateral to the treasurer of state having a value at all times up to one hundred ten percent of the public funds held by the bank. d. resenting proceeds of such instruments or agreements. c. Pledge collateral to the treasurer of state having a value at all times up to one hundred ten percent of the public funds held by the bank. d. Comply with such other requirements as the superintendent may impose.3. Any order issued pursuant to this section shall become effective upon service of the order on the state bank, director, officer, employee, or substantial shareholder and shallremain effective except to such extent that it is stayed, modified, terminated, or set aside byaction of the superintendent or of the district court of Polk county. 4. The superintendent may apply to the district court of Polk county for the enforcement of any order pursuant to this section and such court shall have jurisdiction and power to orderand require compliance. 5. For purposes of this section, 'substantial shareholder' means a shareholder exercising a controlling influence over the management or policies of a state bank as determined by thesuperintendent. [C73, §1572; C97, §1877; C24, 27, 31, 35, 39, §9235; C46, 50, 54, 58, 62, 66, §528.29; C71, 73, 75, 77, 79, 81, §524.223] 2002 Acts, ch 1096, §16, 17; 2022 Acts, ch 1062, rmined by thesuperintendent. [C73, §1572; C97, §1877; C24, 27, 31, 35, 39, §9235; C46, 50, 54, 58, 62, 66, §528.29; C71, 73, 75, 77, 79, 81, §524.223] 2002 Acts, ch 1096, §16, 17; 2022 Acts, ch 1062, §21Referred to in §524.228 Sat Dec 23 01:11:25 2023 Iowa Code 2024, Section 524.223 (23, 0)
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