California Code of Regulations › Title 10 - Investment › Chapter 2 - Savings and Loan Commissioner › Subchapter 4 - Operations-General › Article 1 - Advertising › Section 104.515 - Revocation of Trust Powers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  In addition to the other sanctions available, if, in the opinion of the
				  commissioner, an association is unlawfully or unsoundly exercising, or has
				  unlawfully or unsoundly exercised, or has failed for a period of five
				  consecutive years to exercise, the powers granted to it, or otherwise fails or
				  has failed to comply with the requirements of this subchapter, the commissioner
				  may issue and serve upon the association a notice of intent to revoke the
				  authority of the association to exercise the powers granted to it. The notice
				  shall 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 shall fix a time and place at which a hearing will be held to
				  determine whether an order revoking authority to exercise such powers should
				  issue against the association.
(b)
				  Such hearing shall be conducted in accordance with the provisions of Section
				  103.114, and shall be fixed for a
				  date not earlier than thirty days and not later than sixty days after service
				  of such notice unless an earlier or later date is set by the commissioner at
				  the request of an association so served.
(c) Unless the association so served shall
				  appear at the hearing by a duly authorized representative, it shall be deemed
				  to have consented to the issuance of the revocation order. In the event of such
				  consent or if, upon the record made at any such hearing, the commissioner shall
				  find that any allegation specified in the notice of charges has been
				  established, the commissioner may issue and serve upon the association an order
				  prohibiting it from accepting any new or additional trust accounts and revoking
				  authority to exercise any and all powers granted to it except that such order
				  shall permit the association to continue to service all previously accepted
				  trust accounts pending their expeditious divestiture or termination.
(d) A revocation order shall become effective
				  not earlier than the expiration of thirty days after service of such order upon
				  the association so served (except in the case of a revocation order issued upon
				  consent, which shall become effective at the time specified therein), and shall
				  remain effective and enforceable, except to such extent as it is stayed,
				  modified, terminated, or set aside by action of the commissioner or a reviewing
				  court.
1. Change
					 without regulatory effect renumbering former Section
					 245.16 to Section
					 104.515 (Register 87, No. 14). For
					 prior history, see Register 81, No. 25.
Note: Authority cited: Section
						5500.5,
						Financial Code. Reference: Title 10, Calif. Adm. Code, Chapter 2, Subchapter 3,
						Article 5 (Section
						103.500) and Subchapter 4, Article
						5 (Section
						104.500 et seq.); and Sections
						5003 and
						5501.5,
						Financial Code.