524.228 Emergency cease and desist order — final order — suspension. 1. If it appears to the superintendent that a state bank, or any director, officer, employee, or substantial shareholder of the state bank is engaging in or is about to engage in an unsafeor unsound practice or dishonest act in conducting the business of the state bank that islikely to cause insolvency or substantial dissipation of assets or earnings of the state bank, oris likely to seriously weaken the condition of the state bank or otherwise seriously prejudicethe interests of its depositors prior to the completion of the proceedings conducted pursuantto section 524.223, 524.606, subsection 2, or 524.707, subsection 2, the superintendentmay issue an emergency order requiring the state bank, director, officer, employee, orsubstantial shareholder to cease and desist from any such practice or act, and to takeaffirmative action, including suspension of the director, officer, or employee to prevent suchinsolvency, dissipation, condition, or prejudice pending completion of the proceedings. Theemergency order becomes effective upon service upon the state bank, or upon the director,officer, employee, or substantial ssipation, condition, or prejudice pending completion of the proceedings. Theemergency order becomes effective upon service upon the state bank, or upon the director,officer, employee, or substantial shareholder of the state bank. Unless set aside, limited, orsuspended by a court as provided in this chapter, the emergency order remains effectiveand enforceable pending the completion of the administrative proceedings pursuant to theemergency order and until such time as the superintendent dismisses the charges specifiedin the emergency order. If a final cease and desist order is issued against the state bank orthe director, officer, employee, or substantial shareholder, the emergency order remains ineffect until the effective date of the final order. 2. Within ten days after the state bank concerned or any director, officer, employee, or substantial shareholder is served with an emergency order, the state bank or suchdirector, officer, employee, or substantial shareholder may apply to the district court of Polkcounty for an injunction setting aside, limiting, or suspending the enforcement, operation,or effectiveness of such emergency order pending the completion of the ay apply to the district court of Polkcounty for an injunction setting aside, limiting, or suspending the enforcement, operation,or effectiveness of such emergency order pending the completion of the administrativeproceedings. If serious prejudice to the interests of the superintendent, the state bank, theofficer, director, employee, or substantial shareholder would result from such hearing, thecourt may order the judicial proceeding to be conducted in camera. 3. The emergency order shall contain a concise statement of the facts constituting the alleged unsafe or unsound practice or alleged dishonest act, and shall fix a time and place atwhich a hearing will be held to determine whether a final order to cease and desist shouldissue against the state bank or any director, officer, employee, or substantial shareholder.The hearing shall be fixed for a date not later than thirty days after service of the emergencyorder unless a later date is set at the request of the party so served. If the state bank, orthe director, officer, employee, or substantial shareholder fails to appear at the hearing, thestate bank, or the director, officer, employee, or substantial shareholder is deemed to he state bank, orthe director, officer, employee, or substantial shareholder fails to appear at the hearing, thestate bank, or the director, officer, employee, or substantial shareholder is deemed to haveconsented to the issuance of a cease and desist order. In the event of such consent, or if uponthe record made at the hearing the superintendent finds that any unsafe or unsound practiceor dishonest act specified in the emergency order has been established, the superintendentmay issue and serve upon the state bank, or the director, officer, employee, or substantialshareholder a final order to cease and desist from any such practice or act. The order mayrequire the state bank, or the director, officer, employee, or substantial shareholder to ceaseand desist from any such practice or act and, further, to take affirmative action, includingsuspension of the director, officer, or employee. 4. A hearing provided for in this section shall be presided over by an administrative law judge appointed in accordance with section 17A.11. The hearing shall be private, unlessthe superintendent determines after full consideration of the views of the party afforded thehearing, that a public hearing nted in accordance with section 17A.11. The hearing shall be private, unlessthe superintendent determines after full consideration of the views of the party afforded thehearing, that a public hearing is necessary to protect the public interest. After the hearing,and within thirty days after the case has been submitted for decision, the superintendentshall review the proposed order of the administrative law judge and render a final decision,including findings of fact upon which the decision is predicated, and issue and serve uponeach party to the proceeding an order consistent with this section. 5. Any final order issued by the superintendent pursuant to subsection 3 becomes effective upon service of the final order on the state bank, director, officer, employee, orsubstantial shareholder and shall remain effective except to the extent that it is stayed, Sat Dec 23 01:11:28 2023 Iowa Code 2024, Section 524.228 (24, 1) §524.228, BANKS 2 modified, terminated, or set aside by action of the superintendent or of the district court ofPolk county in accordance with the terms of chapter 17A. 6. 24, Section 524.228 (24, 1) §524.228, BANKS 2 modified, terminated, or set aside by action of the superintendent or of the district court ofPolk county in accordance with the terms of chapter 17A. 6. In the case of violation or threatened violation of, or failure to obey, an emergency order issued pursuant to subsection 1 or a final order issued pursuant to subsection 3, thesuperintendent may apply to the district court of Polk county for the enforcement of the orderand such court shall have jurisdiction and power to order and require compliance with theemergency order or final order. 7. 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. 91 Acts, ch 220, §2; 2022 Acts, ch 1062, §24; 2023 Acts, ch 66, §131Subsection 1 amended Sat Dec 23 01:11:28 2023 Iowa Code 2024, Section 524.228 (24, 1)
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