§ 11-102-505 — Removal of director, officer, or other person

Colorado § 11-102-505

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Division of Banking

Text

(1) The banking
board may serve any executive officer, director, employee, agent, or other person
participating in the conduct of the affairs of a bank with a written notice of its
intention to remove such person from office whenever the banking board
determines:

(a) That any such person has committed any violation of this code, rule of the
banking board, or cease-and-desist order of the banking board that has become
final; has engaged or participated in any unsafe or unsound practice in connection
with a bank; has committed or engaged in any act, omission, or practice that
constitutes a breach of fiduciary duty to the state bank; or has been found liable for
or guilty of any of the civil or criminal offenses enumerated in section 11-102-303
(8); and

(b) (I) That the state bank has suffered or probably will suffer substantial
financial loss or other damage or that the interests of its depositors could be
seriously prejudiced by reason of such violation, practice, breach of fiduciary duty,
or offense; or

(II) That such person has received financial gain by reason of such violation,
practice, breach of fiduciary duty, offense; or

(III) That such violation is one involving personal dishonesty on the part of
such person or one that demonstrates a willful or continuing disregard for the
safety or soundness of the state bank.

(2) Whenever the banking board determines that an executive officer,
director, employee, agent, or other person participating in the conduct of the affairs
of a state bank, by conduct or practice with respect to another bank or business
institution that results in substantial financial loss or other damage, has evidenced
either personal dishonesty or a willful or continuing disregard for such state bank's
safety and soundness, and, in addition, has evidenced unfitness to continue such
person's relationship with the state bank, the banking board may serve upon such
person a written notice of its intention to remove the person from office or to
prohibit the person's further participation in any manner in the conduct of the
affairs of any Colorado state-chartered bank or trust company.

(3) A notice of intention to remove a director, executive officer, or other
person from office or to prohibit such person's participation in the conduct of the
affairs of a state bank shall contain a statement of the facts constituting grounds
therefor and shall fix a time and place at which a hearing shall be held thereon.
Such hearing shall be fixed for a date not earlier than thirty days nor later than
sixty days after the date of service of such notice, unless an earlier or a later date is
set by the banking board at the request of such director or executive officer or
other person, and for good cause shown. Unless such director, executive officer, or
other person appears at the hearing in person or by a duly authorized
representative, such person shall be deemed to have consented to the issuance of
an order of removal or prohibition as specified in the notice issued pursuant to
subsection (1) or (2) of this section. In the event of such consent or, if, upon the
record made at any such hearing, the banking board finds that any of the grounds
specified in such notice have been established, the banking board may issue such
orders of suspension or removal from office as it may deem appropriate. Any such
order shall become effective at the expiration of thirty days after service upon such
bank and the director, executive officer, or other person concerned except in the
case of an order issued upon consent, which shall become effective at the time
specified therein. Such order shall remain effective and enforceable except to such
extent as it is stayed, modified, terminated, or set aside by action of the banking
board or a reviewing court.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1078, � 3, effective July 1. L. 2013: (2) amended, (SB 13-154), ch. 282, p. 1477, � 39, effective July 1. L. 2024: (2) amended, (HB 24-1351), ch. 461, p. 3201, � 16, effective August 7.