H. R. 4818—653
States Code. If after hearing, or a waiver thereof, the Adminis-
trator determines that an order revoking or suspending the
authority or a cease and desist order should be issued, the
Administrator shall promptly issue such order, which shall
include a statement of the findings of the Administrator and
the grounds and reasons therefor and specify the effective date
of the order, and shall cause the order to be served on the
small business lending company, non-Federally regulated
lender, or other person involved.
‘‘(2) Witnesses summoned before the Administrator shall
be paid by the party at whose instance they were called the
same fees and mileage that are paid witnesses in the courts
of the United States.
‘‘(3) A cease and desist order, suspension or revocation
issued by the Administrator, after the hearing under this sub-
section is final agency action for purposes of chapter 7 of
title 5, United States Code. An adversely aggrieved party shall
have 20 days from the date of issuance of the cease and desist
order, suspension or revocation, to seek judicial review in an
appropriate district court.
‘‘(g) REMOVAL
OR SUSPENSION
OF MANAGEMENT OFFICIAL.—
‘‘(1) DEFINITION.—In this section, the term ‘management
official’ means, with respect to a small business lending com-
pany or a non-Federally regulated lender, an officer, director,
general partner, manager, employee, agent, or other participant
in the management of the affairs of the company’s or lender’s
activities under section 7(a) of this Act.
‘‘(2) REMOVAL OF MANAGEMENT OFFICIAL.—
‘‘(A) NOTICE.—The Administrator may serve upon any
management official a written notice of its intention to
remove that management official if, in the opinion of the
Administrator, the management official—
‘‘(i) willfully and knowingly commits a substantial
violation of—
‘‘(I) this Act;
‘‘(II) any regulation issued under this Act;
‘‘(III) a final cease-and-desist order under this
Act; or
‘‘(IV) any agreement by the management offi-
cial, the small business lending company or non-
Federally regulated lender under this Act; or
‘‘(ii) willfully and knowingly commits a substantial
breach of a fiduciary duty of that person as a manage-
ment official and the violation or breach of fiduciary
duty is one involving personal dishonesty on the part
of such management official.
‘‘(B) CONTENTS OF NOTICE.—A notice under subpara-
graph (A) shall contain a statement of the facts constituting
grounds therefor and shall fix a time and place at which
a hearing, conducted pursuant to sections 554, 556, and
557 of title 5, United States Code, will be held thereon.
‘‘(C) HEARING.—
‘‘(i) TIMING.—A hearing under subparagraph (B)
shall be held not earlier than 30 days and later than
60 days after the date of service of notice of the
hearing, unless an earlier or a later date is set by
the Administrator at the request of—
H. R. 4818—654
‘‘(I) the management official, and for good
cause shown; or
‘‘(II) the Attorney General.
‘‘(ii) CONSENT.—Unless the management official
appears at a hearing under this paragraph in person
or by a duly authorized representative, the manage-
ment official shall be deemed to have consented to
the issuance of an order of removal under subpara-
graph (A).
‘‘(D) ORDER OF REMOVAL.—
‘‘(i) IN GENERAL.—In the event of consent under
subparagraph (C)(ii), or if upon the record made at
a hearing under this subsection, the Administrator
finds that any of the grounds specified in the notice
of removal has been established, the Administrator
may issue such orders of removal from office as the
Administrator deems appropriate.
‘‘(ii) EFFECTIVENESS.—An order under clause (i)
shall—
‘‘(I) take effect 30 days after the date of service
upon the subject small business lending company
or non-Federally regulated lender and the manage-
ment official concerned (except in the case of an
order issued upon consent as described in subpara-
graph (C)(ii), which shall become effective at the
time specified in such order); and
‘‘(II) remain effective and enforceable, except
to such extent as it is stayed, modified, terminated,
or set aside by action of the Administrator or a
reviewing court in accordance with this section.
‘‘(3) AUTHORITY TO SUSPEND OR PROHIBIT PARTICIPATION.—
‘‘(A) IN GENERAL.—In order to protect a small business
lending company, a non-Federally regulated lender or the
interests of the Administration or the United States, the
Administrator may suspend from office or prohibit from
further participation in any manner in the management
or conduct of the affairs of a small business lending com-
pany or a non-Federally regulated lender a management
official by written notice to such effect served upon the
management official. Such suspension or prohibition may
prohibit the management official from making, servicing,
reviewing, approving, or liquidating any loan under section
7(a) of this Act.
‘‘(B) EFFECTIVENESS.—A suspension or prohibition
under subparagraph (A)—
‘‘(i) shall take effect upon service of notice under
paragraph (2); and
‘‘(ii) unless stayed by a court in proceedings author-
ized by subparagraph (C), shall remain in effect—
‘‘(I) pending the completion of the administra-
tive proceedings pursuant to a notice of intention
to remove served under paragraph (2); and
‘‘(II) until such time as the Administrator dis-
misses the charges specified in the notice, or, if
an order of removal or prohibition is issued against
the management official, until the effective date
of any such order.