12 USC 4632 - Temporary cease-and-desist orders

U.S Code last checked for updates: Apr 28, 2024

§ 4632.

Temporary cease-and-desist orders

(a)

Grounds for issuance

(1)

In general

If the Director determines that the actions specified in the notice of charges served upon a regulated entity or any entity-affiliated party pursuant to section 4631(a) of this title, or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of that entity, or is likely to weaken the condition of that entity prior to the completion of the proceedings conducted pursuant to sections 4631 and 4633 of this title, the Director may—

(A)

issue a temporary order requiring that regulated entity or entity-affiliated party to cease and desist from any such violation or practice; and

(B)

require that regulated entity or entity-affiliated party to take affirmative action to prevent or remedy such insolvency, dissipation, condition, or prejudice pending completion of such proceedings.

(2)

Additional requirements

(b)

Effective date

(c)

Incomplete or inaccurate records

(1)

Temporary order

If a notice of charges served under section 4631(a) or (b) of this title specifies on the basis of particular facts and circumstances that the books and records of the regulated entity served are so incomplete or inaccurate that the Director is unable, through the normal supervisory process, to determine the financial condition of the regulated entity or the details or the purpose of any transaction or transactions that may have a material effect on the financial condition of that regulated entity, the Director may issue a temporary order requiring—

(A)

the cessation of any activity or practice which gave rise, whether in whole or in part, to the incomplete or inaccurate state of the books or records; or

(B)

affirmative action to restore the books or records to a complete and accurate state.

(2)

Effective period

Any temporary order issued under paragraph (1)—

(A)

shall become effective upon service; and

(B)

unless set aside, limited, or suspended by a court in proceedings pursuant to subsection (d), shall remain in effect and enforceable until the earlier of—

(i)

the completion of the proceeding initiated under section 4631 of this title in connection with the notice of charges; or

(ii)

the date the Director determines, by examination or otherwise, that the books and records of the regulated entity are accurate and reflect the financial condition of the regulated entity.

(d)

Judicial review

(e)

Enforcement by Attorney General

(Pub. L. 102–550, title XIII, § 1372, Oct. 28, 1992, 106 Stat. 3988; Pub. L. 110–289, div. A, title I, § 1152, July 30, 2008, 122 Stat. 2769.)

cite as: 12 USC 4632