Arizona § 6-161 - Suspension, removal or prohibition; hearing; notice

§ 6-161. Suspension, removal or prohibition; hearing; notice

A. The deputy director, subject to the requirements of this article, may remove or suspend from office or prohibit from participating in any of the affairs of a financial institution or enterprise any director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise if he finds that the director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise has engaged in any of the following:

1. Any act, omission or practice in any business transaction which demonstrates personal dishonesty or unfitness to continue in office or participate in the conduct of the affairs of the financial institution or enterprise.

2. A wilful violation of an order of the deputy director.

3. Refusal to testify or produce records in response to a subpoena issued by the deputy director.

4. A conviction of a crime, an essential element of which is fraud, misrepresentation or deceit.

5. Any activity described in 12 United States Code section 1818(e)(1). For the purposes of this paragraph, all references to the appropriate federal banking agency are to the deputy director.

6. Any violation of this title relative to the financial institution or enterprise.

7. Any act, practice or transaction that in any way would jeopardize the safety and soundness of the financial institution.

B. The deputy director may issue and serve on the person involved, named as respondent, a written notice of the  deputy director's order of suspension or intention to remove the person from office or to prohibit the person from further participation in any manner in the conduct of the affairs of the financial institution or enterprise. A copy of the notice shall also be served on the financial institution or enterprise. The notice shall contain a statement of the alleged facts and fix a time and place at which a hearing shall be held. The hearing shall be fixed for a date not earlier than thirty days nor later than sixty days after the date of service of the notice, unless an earlier or a later date is set for good cause shown. If the respondent without excusable neglect fails to answer the charges, or if on the record made at the hearing the deputy director finds that any of the charges specified in the notice has been established and constitutes grounds for suspension or removal from office or prohibition from participation in the conduct of the affairs of the financial institution or enterprise, the deputy director may issue the appropriate order. The order becomes effective at the time specified in the order after service on the respondent and remains effective unless stayed, modified, terminated or set aside by action of the deputy director or a reviewing court.

C. The resignation, termination of employment or participation, or separation of the person involved does not affect the jurisdiction and authority of the deputy director to issue any notice and proceed under this section against that person.

D. Notwithstanding section 6-129, an order issued pursuant to this section that has become final is open to public inspection, except that the deputy director may withhold from public inspection for such time as the deputy director considers necessary any information that in the deputy director's judgment the public welfare or the welfare of the financial institution requires to be so withheld.

E. If a removal order has become final, a financial institution or enterprise may not employ the person against whom it was issued without the prior written approval of the deputy director.