6-01-04.4. Prompt corrective action

6-01-04.4. Prompt corrective action

The commissioner or board may enter an order if the commissioner or board finds that a

state bank is undercapitalized, significantly undercapitalized, or critically undercapitalized. For

the purpose of this section, undercapitalized, significantly undercapitalized, and critically

undercapitalized have the same definition as found in title 12, Code of Federal Regulations,

part 324, section 403, as amended April 15, 2016. The order may require an undercapitalized

state bank to take prompt corrective action as the commissioner or board determines

reasonable to bring the bank to an adequately capitalized condition, including the submission

and implementation of an acceptable capital restoration plan. A bank may request a hearing

before the state banking board within ten days of the order to review the factual basis used to

issue the request for prompt corrective action. The decision made by the board during this

hearing is final. If a hearing is not requested, the initial decision of the commissioner or board is

final. For a significantly or critically undercapitalized state bank, the commissioner or board may

issue a temporary cease and desist order appointing a receiver in accordance with chapter

6-07.2.