7-5-5. Revocation of trust authority -- Procedure.
(1) (a) The commissioner may issue and serve upon a trust company a notice of intent to
revoke the authority of the trust company to exercise the powers granted by this chapter, if, in the
commissioner's opinion, the trust company:
(i) is unlawfully or unsoundly exercising the powers granted under this chapter;
(ii) has unlawfully or unsoundly exercised the powers granted under this chapter;
(iii) has failed, for a period of five consecutive years, to exercise the powers granted by
this chapter;
(iv) fails or has failed to comply with requirements upon which its permit is conditioned;
or
(v) fails or has failed to comply with any rule of the commissioner.
(b) The notice shall:
(i) contain a statement of the facts constituting the alleged unlawful or unsound exercise
of powers, or failure to exercise powers, or failure to comply; and
(ii) fix the time and place at which a hearing will be held to determine whether an order
revoking authority to execute those powers should issue against the trust company.
(2) (a) If the trust company or its representative does not appear at the hearing, the
commissioner may consider the trust company to be in default, and may issue a revocation order.
(b) If default has occurred, or if upon the record made at any hearing the commissioner
finds that any allegation specified in the notice of charges has been established, the commissioner
shall issue and serve upon the trust company an order:
(i) prohibiting it from accepting any new or additional trust accounts; and
(ii) revoking its authority to exercise any powers granted under this chapter.
(c) Any order issued under this section permits the trust company to continue to service
all previously accepted trust accounts pending their expeditious divestiture or termination.
(3) A revocation order shall become effective 30 days after service of the order upon the
trust company and shall remain effective and enforceable, unless it is stayed, modified,
terminated, or set aside by action of the commissioner or by judicial review as provided for in
Section 7-1-714.
Amended by Chapter 9, 2001 General Session
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Last revised: Thursday, May 28, 2009