7-1-308. Suspension or removal of director or officer -- Grounds -- Procedure for
issuance of order.
(1) (a) If the commissioner has determined that any officer or director of an institution or
other person under the jurisdiction of the department has:
(i) violated any law, rule, regulation, or a cease and desist order which has become final;
(ii) engaged or participated in any unsafe or unsound practice in the conduct of the affairs
of the institution or other person;
(iii) committed or engaged in any act, omission, or practice which constitutes a breach of
his fiduciary duty as an officer or director;
(iv) been charged in any information, indictment, or complaint authorized by a county
attorney, a district attorney, or the attorney general of the state relative to a violation of this title;
or
(v) been charged with the commission of or participation in a crime involving dishonesty
or breach of trust; and
(b) if the commissioner determines that:
(i) the institution or other person under the jurisdiction of the department has suffered or
will suffer substantial financial loss or other damage due to such actions and that such action may
impair the safety and soundness of the institution or other person or prejudice in any manner the
interests of the depositors, members, creditors, or shareholders; or
(ii) the director or officer has received financial gain by reason of any breach of fiduciary
duty; the commissioner may, after notice and opportunity for hearing, serve upon such director or
officer a written notice of suspension or removal of the individual from office or prohibition from
further participation in the conduct of the affairs of the institution or other person.
(2) If the commissioner deems it necessary for the protection of an institution or other
person under the jurisdiction of the department or the interests of its depositors, members,
creditors, or shareholders, he may, by written notice served upon the officer or director, suspend
that officer or director from office or prohibit him from further participation in any manner in the
conduct of the affairs of the institution or other person. The suspension or prohibition is effective
upon service of the notice and, unless stayed by a court, shall remain in effect until the
commissioner dismisses the charges specified in the notice, or, if an order of removal or
prohibition is issued against the officer or director, until the effective date of that order.
Amended by Chapter 38, 1993 General Session
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Last revised: Thursday, May 28, 2009