1.Whenever it shall appear to the superintendent that a state bank, or any director,
officer, employee, or substantial shareholder of the state bank, is engaging or has engaged,
or the superintendent has reasonable cause to believe that the state bank, director,
officer, employee, or substantial shareholder is about to engage, in an unsafe or unsound
practice in conducting the business of such state bank, or is violating or has violated, or
the superintendent has reasonable cause to believe that the state bank, director, officer,
employee, or substantial shareholder is about to violate, any provision of this chapter or of
any regulation adopted pursuant to this chapter, or any condition imposed in writing by the
superintendent in connection with the approval of any matter required by thi
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1. Whenever it shall appear to the superintendent that a state bank, or any director,
officer, employee, or substantial shareholder of the state bank, is engaging or has engaged,
or the superintendent has reasonable cause to believe that the state bank, director,
officer, employee, or substantial shareholder is about to engage, in an unsafe or unsound
practice in conducting the business of such state bank, or is violating or has violated, or
the superintendent has reasonable cause to believe that the state bank, director, officer,
employee, or substantial shareholder is about to violate, any provision of this chapter or of
any regulation adopted pursuant to this chapter, or any condition imposed in writing by the
superintendent in connection with the approval of any matter required by this chapter, or
any written agreement entered into with the superintendent, or any provision of chapter 12C
or any rules adopted pursuant to chapter 12C, the superintendent may issue and serve upon
the state bank, director, officer, employee, or substantial shareholder a notice containing
a statement of the facts constituting the alleged violation or violations, or the unsafe or
unsound practice or practices, and fixing a time and place at which a hearing will be held to
determine whether an order to cease and desist should be issued to the state bank, director,
officer, employee, or substantial shareholder.
2. If the state bank, director, officer, employee, or substantial shareholder fails to appear
atthehearing,itshallbedeemedtohaveconsentedtotheissuanceofaceaseanddesistorder.
In the event of such consent, or if upon the record made at such hearing, the superintendent
shall find that any violation or unsafe or unsound practice specified in the notice has been
established, the superintendent may issue and serve upon the state bank, director, officer,
employee, or substantial shareholder an order to cease and desist from any such violation
or practice. Such order may require the state bank and its directors, officers, employees,
and shareholders to cease and desist from any such violation or practice and, further, to take
affirmative action to correct the conditions resulting from any such violation or practice. In
addition, if the violation or practice involves a failure to comply with chapter 12C or any rules
adopted pursuant to chapter 12C, the superintendent may require that during the current
calendar quarter and up to the next succeeding eight calendar quarters that the bank do any
one or more of the following:
a. Not accept public funds deposits.
b. Return to the depositors some or all uninsured public funds held in demand deposits
and, when deposit instruments or agreements mature, return to the depositors some or all
deposits representing proceeds of such instruments or agreements.
c. Pledge collateral to the treasurer of state having a value at all times up to one hundred
ten percent of the public funds held by the bank.
d. Comply with such other requirements as the superintendent may impose.
3. Any order issued pursuant to this section shall become effective upon service of the
order on the state bank, director, officer, employee, or substantial shareholder and shall
remain effective except to such extent that it is stayed, modified, terminated, or set aside by
action of the superintendent or of the district court of Polk county.
4. The superintendent may apply to the district court of Polk county for the enforcement
ofanyorderpursuanttothissectionandsuchcourtshallhavejurisdictionandpowertoorder
and require compliance.
5. For purposes of this section, “substantial shareholder” means a shareholder exercising
a controlling influence over the management or policies of a state bank as determined by the
superintendent.