2012 Idaho Statutes
Title 26 - BANKS AND BANKING
Chapter 5 - BANK HOLDING COMPANIES
Section 26-509 - ENGAGING IN UNSAFE OR UNSOUND PRACTICES -- CEASE AND DESIST ORDERS -- INJUNCTION.
(2) A cease and desist order shall become effective at the time specified therein and shall remain effective and enforceable as provided therein, except to such extent as it is stayed, modified, terminated, or set aside by action of the director or a reviewing court.
(3) Whenever the director shall determine that the violation or threatened violation or the unsafe unsound practice or practices, specified in the notice of charges served upon the bank holding company pursuant to paragraph (1) of this section, or the continuation thereof, is likely to cause insolvency or substantial dissipation of assets or earnings of a bank owned or controlled by the bank holding company or is likely to otherwise seriously prejudice the interests of such bank's depositors, the director may issue a temporary order requiring the bank holding company to cease and desist from any such violation or practice. Such order shall become effective upon service upon the bank holding company and, unless set aside, limited, or suspended by a court in proceedings, authorized by paragraph (2) of this section, shall remain effective and enforceable pending the completion of the administrative proceedings pursuant to such notice and until such time as the director shall dismiss the charges specified in such notice, or if a cease and desist order is issued against the bank, until the effective date of any such order.
(4) Within ten (10) days after the bank holding company concerned has been served with a temporary cease and desist order, the bank holding company may apply to the district court for the judicial district in which the home office of the bank holding company is located, for an injunction setting aside, limiting, or suspending the enforcement, operation, or effectiveness of such order pending the completion of the administrative proceedings pursuant to the notice of charges served upon the bank holding company under paragraph (1) of this section, and such court shall have jurisdiction to issue such injunction.
(5) In the case of violation or threatened violation of, or failure to obey, a temporary cease and desist order issued pursuant to paragraph (3) of this section, the director may apply to the district court within the jurisdiction of which the home office of the bank holding company is located, for an injunction to enforce such order, and if the court shall determine that there has been such violation or threatened violation or failure to obey, it shall be the duty of the court to issue an injunction.
History:
[26-509, added 1979, ch. 41, sec. 2, p. 84.]
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