2013 Maryland Code
FINANCIAL INSTITUTIONS
§ 6-906 - Cease and desist orders

§6-906.

(a) The Commissioner shall order any credit union to cease and desist from:

(1) An unsafe or unsound practice;

(2) A practice that is injurious to the public interest; or

(3) A violation of laws or rules or regulations that relate to the Commissioner’s supervision of the credit union.

(b) To protect depositors or members, the Commissioner may include in a cease and desist order a restriction on the withdrawal of money from any credit union.

(c) The Commissioner may include in a cease and desist order a requirement that the officers or officials act affirmatively to correct any violation or practice.

(d) (1) Before a cease and desist order takes effect, the Commissioner shall give the credit union an opportunity for a hearing.

(2) Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article.

(e) If the Commissioner determines that the violation or practice under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner:

(1) May issue a cease and desist order that is effective on service; and

(2) Shall give the credit union an opportunity for a hearing to rescind the order.

§ 6-906 - 1. Cease and desist orders -- Civil penalty

(a) Assessment. -- After notice and a hearing, the Commissioner may assess a civil penalty against a credit union that the Commissioner determines has:

(1) Violated a cease and desist order issued by the Commissioner under § 6-906 of this subtitle; or

(2) Engaged in:

(i) An unsafe or unsound practice; or

(ii) A practice that is injurious to the public interest

(b) Limits. -- The civil penalty may not exceed:

(1) $ 1,000 per violation; and

(2) $ 1,000 per violation for each day that the violation continues.

(c) Notice. --

(1) A civil penalty shall be assessed by written notice of assessment served on the person to be assessed.

(2) The notice of assessment shall state the:

(i) Amount of the civil penalty;

(ii) Legal authority for the assessment; and

(iii) Matters of fact or law constituting the grounds for the assessment.

(3) The notice of assessment shall constitute a final order for purposes of judicial review pursuant to § 10-221 of the State Government Article.

(d) Considerations. -- In determining the amount of the civil penalty to be assessed, the Commissioner shall consider:

(1) The seriousness of the violation;

(2) The good faith of the violator;

(3) The violator's history of previous violations;

(4) The deleterious effect of the violation on the public and the credit union industry;

(5) The assets of the violator; and

(6) Any other factors relevant to the determination of the civil penalty.

(e) Payment; reduction. --

(1) A civil penalty assessed under this section shall be due and payable within 30 days after the Commissioner issues the notice of assessment.

(2) The Commissioner may reduce or set aside a civil penalty.

(f) Payment of penalties into General Fund. -- The Commissioner shall pay all civil penalties collected under this section into the General Fund of the State.

§ 6-906 - 2. Closed hearing in extraordinary circumstances

(a) "Extraordinary circumstances" defined. -- In this section, "extraordinary circumstances" means a situation presenting specific concerns about the prompt withdrawal of money from, or the safety and soundness of, a credit union.

(b) Closed hearing. -- In extraordinary circumstances and with the consent of the credit union, the Commissioner may close to the public a hearing concerning the assessment of a civil penalty, an order to cease and desist, or any other formal enforcement action by the Commissioner.