Ohio § 1761.18

§ 1761.18.

(A)(1) If, in the opinion of the superintendent of credit unions, a credit union share guaranty

corporation or a director, officer, or employee of the corporation is engaged in any

unsafe or unsound practice in conducting the business of the corporation, has knowingly

participated in or consented to a violation of this chapter or rules adopted thereunder,

or has failed to comply with a supervisory agreement, he may serve upon such corporation,

director, officer, or employee notice that he is considering issuing an order against

the corporation, director, officer, or employee pursuant to division (A)(2) or (3)

of this section. If, in the opinion of the superintendent of insurance, a credit union share guaranty

corporation or a director, officer, or employee of the corporation is engaged in any

unsafe or unsound practice in conducting the business of the corporation, has knowingly

participated in or consented to a violation of those chapters of Title XXXIX of the

Revised Code specified in division (A) of section 1761.04 of the Revised Code or rules adopted thereunder, or has failed to comply with a supervisory agreement,

he may serve upon such corporation, director, officer, or employee notice that he

is considering issuing an order against the corporation, director, officer, or employee

pursuant to division (A)(2) or (3) of this section. (2) A notice served under division (A)(1) of this section that relates to matters other

than an alleged violation of a supervisory agreement shall contain a statement of

the alleged facts constituting the basis for an order and fix a time and place for

a hearing.  The hearing shall be conducted in accordance with section 119.09 of the Revised Code , except that, notwithstanding division (E) of section 119.01 of the Revised Code , the hearing shall not be a public hearing.  The date for the hearing shall be not less than thirty nor more than forty-five

days after such notice has been given by the superintendent of credit unions or the

superintendent of insurance to the corporation, director, officer, or employee. If, after conducting such hearing, the superintendent of credit unions determines

that the corporation, director, officer, or employee is or has knowingly participated

in or consented to a violation of this chapter, or engaged in an unsafe or unsound

practice, he may issue a final cease-and-desist order.  Such final cease-and-desist order may direct the corporation, director, officer,

or employee to remedy the violation of this chapter, the unsafe or unsound practice,

or the failure to comply, in addition to refraining from such violations or unsafe

or unsound practices in the future. If, after conducting such hearing, the superintendent of insurance determines that

the corporation, director, officer, or employee is or has knowingly participated in

or consented to a violation of those chapters of Title XXXIX of the Revised Code specified

in division (A) of section 1761.04 of the Revised Code , or engaged in an unsafe or unsound practice, he may issue a final cease-and-desist

order.  Such final cease-and-desist order may direct the corporation, director, officer,

or employee to remedy the violation of such chapters of Title XXXIX of the Revised

Code, the unsafe or unsound practice, or the failure to comply, in addition to refraining

from such violations or unsafe or unsound practices in the future. Such final order of the superintendent of credit unions or the superintendent of insurance

becomes effective upon service on the corporation, director, officer, or employee

and remains effective and enforceable as its terms provide, except to such extent

as it is stayed, modified, terminated, or set aside by action of the superintendent

or a reviewing court. (3) If the superintendent of credit unions or the superintendent of insurance proposes

to issue a cease-and-desist order based on the violation of a supervisory agreement,

he shall serve the corporation, director, officer, or employee with a notice of noncompliance.  Such notice shall specify the actions that are alleged to be in violation of the

supervisory agreement.  The notice shall also set a time and place for a hearing, which shall occur not

less than thirty nor more than forty-five days after the notice has been served on

the corporation, director, officer, or employee.  The hearing shall be conducted in the manner prescribed in section 119.09 of the Revised Code , except that, notwithstanding division (E) of section 119.01 of the Revised Code , such hearing shall not be a public hearing. If, after such hearing, the superintendent of credit unions or the superintendent

of insurance determines that the corporation, director, officer, or employee has knowingly

violated the supervisory agreement, he may issue a final cease-and-desist order. If, after such hearing, the superintendent of credit unions or the superintendent

of insurance determines that the corporation, director, officer, or employee has violated

the supervisory agreement but that the conduct in question does not constitute a knowing

violation, the superintendent shall give the corporation, director, officer, or employee

an opportunity to remedy the violation.  The superintendent shall issue a statement of specific actions that must be taken

by the corporation, director, officer, or employee, and establish a time frame in

which the corporation, director, officer, or employee must take such corrective action

to comply with the supervisory agreement.  If, by the end of such time frame, the corporation, director, officer, or employee

has failed to implement the corrective actions required by the superintendent, the

superintendent may issue a final cease-and-desist order. Nothing in this division shall be construed to prevent the superintendent of credit

unions from issuing a cease-and-desist order pursuant to divisions (A)(1) and (2)

of this section or division (B) of this section based on the violation of this chapter,

or on an unsafe or unsound practice of the corporation, director, officer, or employee,

even though such violation or practice may also constitute a violation of an outstanding

supervisory agreement. Nothing in this division shall be construed to prevent the superintendent of insurance

from issuing a cease-and-desist order pursuant to divisions (A)(1) and (2) of this

section or division (B) of this section based on the violation of those chapters of

Title XXXIX of the Revised Code specified in division (A) of section 1761.04 of the Revised Code , or on an unsafe or unsound practice of the corporation, director, officer, or employee,

even though such violation or practice may also constitute a violation of an outstanding

supervisory agreement. (B) If, in the opinion of the superintendent of credit unions, the corporation, director,

officer, or employee is or has engaged in any unsafe or unsound practice, or has participated

in or consented to a violation of this chapter or rules adopted thereunder, he may

issue a summary order requiring the corporation, director, officer, or employee to

cease and desist from such violation or practice. If, in the opinion of the superintendent of insurance, the corporation, director,

officer, or employee is or has engaged in any unsafe or unsound practice, or has participated

in or consented to a violation of those chapters of Title XXXIX of the Revised Code

specified in division (A) of section 1761.04 of the Revised Code or rules adopted thereunder, he may issue a summary order requiring the corporation,

director, officer, or employee to cease and desist from such violation or practice. The summary cease-and-desist order, which shall contain a statement of the facts allegedly

constituting grounds for the order, shall be served upon the corporation, director,

officer, or employee and becomes effective upon receipt.  The summary order shall include notification of the time and place of a hearing,

which shall be held in accordance with division (A)(2) of this section.  Unless the superintendent of credit unions or the superintendent of insurance issues

a final cease-and-desist order within ten days after conclusion of the hearing, the

summary order issued pursuant to this division is void.  Otherwise, the summary order remains effective and enforceable until it is replaced

by the final order, except to such extent as it is stayed, modified, terminated, or

set aside by action of the superintendent. (C) The corporation, director, officer, or employee who is adversely affected by a final

cease-and-desist order may appeal from the order to the court of common pleas in accordance

with section 119.12 of the Revised Code . (D) In lieu of a hearing pursuant to division (A) or (B) of this section, the corporation,

director, officer, or employee may consent to the issuance of an order requiring such

corporation, director, officer, or employee to cease and desist from engaging in any

activity or practice as specified in such order.  A consent cease-and-desist order has the full force and effect of a final cease-and-desist

order issued pursuant to division (A)(2) of this section and is enforceable in accordance

with division (E) of this section.  Any corporation, director, officer, or employee that fails to attend a hearing set

pursuant to division (A) or (B) of this section is deemed to have consented to the

issuance of a final cease-and-desist order. (E) If the superintendent of credit unions or the superintendent of insurance has reasonable

cause to believe that a lawful final or summary cease-and-desist order issued pursuant

to this section has been violated, he may request the attorney general to commence

and prosecute any appropriate action or proceeding.  A court of competent jurisdiction shall enforce a lawful final order issued pursuant

to this section and may grant such other relief as the facts warrant. (F) Service on the corporation, director, officer, or employee as provided for in this

section shall be by actual written notice or certified mail to the director, officer,

or employee or, in the case of the corporation, to the managing officer of such corporation. (G) When any proceeding or action is begun under this section, the superintendent of

credit unions and the superintendent of insurance shall provide the other with notice

of the proceeding or action and shall provide an opportunity to the other to join

and participate in the proceeding or action.