§ 28-11-4-4 — Director's notice of intent to issue order; contents; hearing; final order; removal of officer, director, or employee; suspension or prohibition pending final order; official record

(a) A notice issued under this chapter must:
(1) contain a statement of the facts constituting the alleged
practice, violation, or breach;
(2) state the facts alleged in support of the violation, practice, or
breach;
(3) state the director's intention to enter an order under section
3(a) of this chapter;
(4) be delivered to the board of directors of the financial
institution;
(5) be delivered to the officer, director, or employee concerned;
and
(6) specify the procedures that must be followed to initiate a
hearing to contest the facts alleged.
(b) If a hearing is requested within ten (10) days after service of the
written notice, the department shall hold a hearing concerning the
alleged practice, violation, or breach. The hearing shall be held not
later than forty-five (45) days after receipt of the request. The
department, based on the evidence presented at the hearing, shall enter:
(1) a final order under section 7 of this chapter for the immediate
removal of the officer, director, or employee affected;
(2) a final order under section 7 of this chapter prohibiting further
participation by the officer, director, or employee, in any manner,
in the conduct of affairs of any financial institution;
(3) a final order under section 7 of this chapter requiring the
financial institution and its directors, officers, employees, and
agents to:
(A) cease and desist from the practice or violation; or
(B) take affirmative action to correct the conditions resulting
from the practice or violation;
(4) a final order consisting of any combination of orders described
in subdivisions (1) through (3);
(5) a reprimand of the individuals, entities, or other persons
concerned; or
(6) a dismissal of the entire matter.
(c) If no hearing is requested within the time specified in subsection
(b), the director may proceed to issue a final order described in
subsection (b)(1), (b)(2), (b)(3), or (b)(4) on the basis of the facts set
forth in the written notice.
(d) An officer, director, or employee who is removed from a
position under a removal order that has become final may not
participate in the conduct of the affairs of any financial institution
without the approval of the director.
(e) The director may, for the protection of the financial institution
or the interests of its depositors, suspend from office or prohibit from
participation in the affairs of the financial institution an officer, a
director, or an employee of a financial institution who is the subject of
a written notice served by the director under section 3(a) of this
chapter. A suspension or prohibition under this subsection becomes
effective upon service of the notice. Unless stayed by a court in a
proceeding authorized by subsection (f), the suspension or prohibition
shall remain in effect pending completion of the proceedings related to
the written notice served under section 3(a) of this chapter and until the
effective date of an order entered by the department under subsection
(b) or the director under subsection (c). Copies of the notice shall also
be served upon the financial institution or subsidiary of which the
person is an officer, a director, or an employee.
(f) Not more than ten (10) days after an officer, a director, or an
employee has been suspended from office or prohibited from
participation in the conduct of the affairs of the financial institution or
subsidiary under subsection (e), the officer, director, or employee may
apply to a court having jurisdiction for a stay of the suspension or
prohibition pending completion of the proceedings related to the notice
served under section 3(a) of this chapter, and the court may stay the
suspension of prohibition.
(g) The department shall maintain an official record of a proceeding
under this chapter.

Legislative History

As added by P.L.33-1991, SEC.56. Amended by P.L.122-1994, SEC.109; P.L.258-2003, SEC.20; P.L.10-2006, SEC.75 and P.L.57-2006, SEC.75; P.L.35-2010, SEC.199.