Statutes, codes, and regulations
CALIFORNIA CODES
CALIFORNIA FINANCIAL CODEDivision 5 - CREDIT UNIONSChapter 3 - ADMINISTRATION AND POWERS OF THE COMMISSIONER
Article 3 - POSSESSION OF CREDIT UNION BY COMMISSIONER AND LIQUIDATION
Section 14308 - Order suspending or removing subject person from office

Cal. Fin. Code § 14308

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Current through the 2023 Legislative Session.
Section 14308 - Order suspending or removing subject person from office

If, after notice and a hearing, the commissioner finds that any of the factors set forth in subdivision (a), any of the factors set forth in subdivision (b), and any of the factors set forth in subdivision (c) are true with respect to a subject person of a subject institution, the commissioner may issue an order suspending or removing the subject person from the subject person's office, if any, with the subject institution and prohibiting the subject person from participating in any manner in the conduct of the affairs of the subject institution without the approval of the commissioner:

(a)
(1) That the subject person has, directly or indirectly, violated any provision of this division, of any regulation or order issued under this division, of any other applicable law relating to the business of the licensee, or of any written agreement with the commissioner.
(2) That the subject person has, directly or indirectly, engaged or participated in any unsafe or unsound act in connection with the business of the subject institution or any other business institution.
(3) That the subject person has, directly or indirectly, engaged or participated in any act which constitutes a breach of the subject person's fiduciary duty.
(b) That, by reason of the act, violation, or breach of fiduciary duty described in subdivision (a) the following have occurred:
(1) The subject institution or business institution has suffered or will probably suffer financial loss or other damage.
(2) The interests of the members of the subject institution have been or could be prejudiced.
(3) The subject person has received financial gain or other benefit.
(c) That the act, violation, or breach of fiduciary duty described in subdivision (a) either involves dishonesty on the part of the subject person or demonstrates the subject person's willful or continuing disregard for the safety or soundness of the subject institution or business institution.

Ca. Fin. Code § 14308

Added by Stats 2002 ch 734 (AB 2157),s 30, eff. 9/20/2002.