6-01-04.1. Removal of officers, directors, and employees of financial corporations or institutions

6-01-04.1. Removal of officers, directors, and employees of financial corporations or

institutions.

1. The department of financial institutions or the board may issue, upon any current or

former officer, director, or employee of a financial corporation, financial institution, or

credit union subject to its jurisdiction and upon a financial corporation, financial

institution, or credit union involved, an order stating:

a. That the current or former officer, director, or employee is engaging, or has

engaged, in any of the following conduct:

(1) Violating any law, regulation, board order, or written agreement with the

board.

(2) Engaging or participating in any unsafe or unsound practice.

(3) Performing any act of commission or omission or practice which is a breach

of trust or a breach of fiduciary duty.

b. The term of the suspension or removal from employment and participation within

the conduct of the affairs of a financial corporation, financial institution, credit

union, or any other entity licensed by the department of financial institutions.

2. The order must contain a notice of opportunity for hearing pursuant to chapter 28-32.

The date for the hearing must be set not less than thirty days after the date the

complaint is served upon the current or former officer, director, or employee of a

financial corporation, financial institution, credit union, or any other entity licensed by

the department of financial institutions. The current or former officer, director, or

employee may waive the thirty-day notice requirement.

3. If no hearing is requested within twenty days of the date the order is served upon the

current or former officer, director, or employee, the order is final. If a hearing is held

and the board finds that the record so warrants, it may enter a final order. The final

order suspending or removing the current or former officer, director, or employee is

final.

4. A contested or default suspension or removal order is effective immediately upon

issuance on the current or former officer, director, or employee and upon a financial

corporation, financial institution, or credit union. A consent order is effective as agreed.

5. Any current or former officer, director, or employee suspended or removed from any

position pursuant to this section is not eligible, while under suspension or removal, to

be employed or otherwise participate in the affairs of any financial corporation,

financial institution, or credit union or any other entity licensed by the department of

financial institutions until the suspension or removal is terminated by the department of

financial institutions or board.

6. When any current or former officer, director, employee, or other person participating in

the conduct of the affairs of a financial corporation, financial institution, or credit union

is charged with a felony in state or federal court, involving dishonesty or breach of

trust, the commissioner may immediately suspend the person from office or prohibit

the person from any further participation in a financial corporation's, financial

institution's, or credit union's affairs. The order is effective immediately upon issuance

of the order on a financial corporation, financial institution, or credit union and the

person charged, and remains in effect until the criminal charge is finally disposed of or

until modified by the board. If a judgment of conviction, a federal pretrial diversion,

conviction or agreement to plea to lesser charges, or similar state order or judgment is

entered, the board or commissioner may order that the suspension or prohibition be

made permanent. A finding of not guilty or other disposition of the charge does not

preclude the commissioner or the board from pursuing administrative or civil remedies.

7. The commissioner or board may issue upon a current or former officer, director,

employee, or other person participating in the conduct of the affairs of a financial

missioner may order that the suspension or prohibition be

made permanent. A finding of not guilty or other disposition of the charge does not

preclude the commissioner or the board from pursuing administrative or civil remedies.

7. The commissioner or board may issue upon a current or former officer, director,

employee, or other person participating in the conduct of the affairs of a financial

corporation, financial institution, or credit union an order permanently suspending and

prohibiting the person from participation in a financial corporation's, financial

institution's, or credit union's affairs if convicted of any charge involving dishonesty or

breach of trust in state or federal court. The suspension or removal order is effective

immediately upon issuance on the current or former officer, director, or employee and

upon a financial corporation, financial institution, or credit union.