§ 104.515. Revocation of Trust Powers.

(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.

HISTORY

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

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.