Section 17.18. Revocation of trust powers.

 

(1)   Notice of intent. In addition to the other sanctions available, if, in the opinion of the division, an association is unlawfully or unsoundly exercising, or has failed for a period of 5 consecutive years to exercise, the powers granted by this chapter or otherwise fails to comply with the requirements of this chapter, the division may issue and serve upon the association a notice of intent to revoke the authority of the association to exercise the powers granted by this chapter. The notice shall contain a statement of the facts constituting the alleged unlawful or unsound exercise of powers, or failure to exercise powers, or failure to comply, and shall fix a time and place at which a hearing will be held to determine whether an order revoking authority to exercise trust powers should be issued against the association.

(2)   Hearing. A hearing under sub. (1) shall be conducted as a contested class 2 hearing under ch. 227 , Stats.

(3)   Revocation order. Unless the association served under sub. (1) appears at the hearing by a duly authorized representative, it is deemed to have consented to the issuance of the revocation order. In the event of consent or if, upon the record made at the hearing, the division finds that any allegation specified in the notice of charges has been established, the division may issue and serve upon the association an order prohibiting it from accepting any new or additional trust accounts and revoking authority to exercise powers granted by this chapter except that the order shall permit the association to continue to service all previously accepted trust accounts pending their expeditious divestiture or termination.

(4)   Effective period. A revocation order is effective not earlier than the expiration of 30 days after service of the order upon the association, except a consent revocation order which is effective at the time specified in the order, and shall remain effective and enforceable, except to the extent it is stayed, modified, terminated, or set aside by action of the division or a reviewing court.

History: Cr. Register, June, 1989, No. 402 , eff. 7-1-89.

Note

This section parallels 12 CFR 550.16 . Microsoft Windows NT 6.1.7601 Service Pack 1