Tex. Fin. Code Section 35.002
Cease and Desist Order


(a)

The banking commissioner has grounds to issue a cease and desist order to a current or former officer, employee, or director of a state bank, or the bank itself acting through an authorized person, if the banking commissioner determines from examination or other credible evidence that the bank or person directly or indirectly has:

(1)

violated this subtitle or another applicable law;

(2)

engaged in a breach of trust or other fiduciary duty;

(3)

refused to submit to examination or examination under oath;

(4)

conducted business in an unsafe or unsound manner; or

(5)

violated a condition of the bank’s charter or an agreement between the bank or the person and the banking commissioner or the department.

(b)

If the banking commissioner has grounds for action under Subsection (a) and finds that an order to cease and desist from a violation appears to be necessary and in the best interest of the bank involved and its depositors, creditors, and shareholders, the banking commissioner may serve a proposed cease and desist order on the bank and each person who committed or participated in the action. The proposed order must:

(1)

be delivered by personal delivery or by registered or certified mail, return receipt requested;

(2)

state with reasonable certainty the grounds for the proposed order; and

(3)

state the effective date of the order, which may not be before the 21st day after the date the proposed order is delivered or mailed.

(b-1)

A proposed cease and desist order may require an officer, employee, or director of a state bank, or the bank itself acting through an authorized person, to cease or desist from a violation or other practice or to take affirmative action to correct the conditions resulting from a violation or other practice, including the payment of restitution or other action that the banking commissioner determines is appropriate.

(c)

The order takes effect if the bank or person against whom the proposed order is directed does not request a hearing in writing before the effective date. After taking effect, the order is final and nonappealable as to that bank or person.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 237 (H.B. 1962), Sec. 41, eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 422 (H.B. 3555), Sec. 4, eff. September 1, 2015.
Acts 2023, 88th Leg., R.S., Ch. 989 (H.B. 3574), Sec. 6, eff. June 18, 2023.

Source: Section 35.002 — Cease and Desist Order, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­35.­htm#35.­002 (accessed Jun. 5, 2024).

35.0001
Applicability to Bank Subsidiaries
35.001
Determination Letter
35.002
Cease and Desist Order
35.003
Removal or Prohibition Order
35.004
Hearing on Proposed Order
35.005
Emergency Order
35.006
Copy of Letter or Order in Bank Records
35.007
Effect of Final Removal or Prohibition Order
35.008
Limitation on Action
35.009
Enforcement by Commissioner
35.010
Administrative Penalty
35.011
Payment or Appeal of Administrative Penalty
35.012
Confidentiality of Records
35.013
Collection of Fees
35.0035
Removal or Prohibition Orders in Response to Certain Criminal Offenses
35.0071
Application for Release from Final Removal or Prohibition Order
35.101
Order of Supervision
35.102
Order of Conservatorship
35.103
Notice and Hearing
35.104
Post-hearing Order
35.105
Confidentiality of Records
35.106
Authority of Supervisor
35.107
Authority of Conservator
35.108
Qualifications of Appointee
35.109
Expenses
35.110
Review of Supervisor or Conservator Decision
35.111
Venue
35.112
Duration
35.113
Administrative Election of Remedies
35.114
Release Before Hearing
35.201
Inapplicability
35.202
Investigation of Unauthorized Activity
35.203
Subpoena Authority
35.204
Enforcement of Subpoena
35.205
Confidentiality of Subpoenaed Records
35.206
Evidence
35.207
Cease and Desist Order
35.208
Emergency Cease and Desist Order
35.209
Judicial Review of Cease and Desist Order
35.210
Violation of Final Cease and Desist Order
35.211
Administrative Penalty
35.212
Payment and Appeal of Administrative Penalty
35.213
Judicial Review of Administrative Penalty
35.1001
Applicability to Bank Subsidiaries

Accessed:
Jun. 5, 2024

§ 35.002’s source at texas​.gov