Cease and desist orders; grounds for issuance.

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§412:2-302 Cease and desist orders; grounds for issuance. (a) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any:

(1) Provision of this chapter;

(2) Rule adopted or order issued under this chapter; or

(3) Condition of an approval of request or application by the commissioner or a written agreement between such person and the commissioner,

the commissioner may, in the commissioner's discretion, issue a temporary or permanent cease and desist order to enforce compliance with this chapter, with any rule adopted or order issued under this chapter, or with the conditions of such approval or written agreement.

The commissioner shall have the discretion to include in the order an assessment of an administrative penalty against any person who violates this chapter or who has knowingly violated a written agreement with, or a rule or order of, the commissioner made pursuant to this chapter.

(b) The commissioner may issue a temporary or permanent cease and desist order to any Hawaii financial institution, any institution-affiliated party, or any other person that the commissioner finds or has reasonable cause to believe:

(1) Is violating, has violated, or is about to violate this chapter or any rules adopted pursuant to this chapter;

(2) Is violating, has violated, or is about to violate any written condition imposed or order issued by the commissioner on such financial institution's or other person's authority to engage in business, or any condition of a written agreement between the financial institution or other person and the commissioner;

(3) Is engaging, has engaged, or is about to engage in an illegal, unauthorized, unsafe, or unsound practice; or

(4) Is failing to maintain books and records that are sufficiently complete and accurate so as to permit the commissioner to determine the financial condition of the institution named in the order. [L 1993, c 350, pt of §1; am L 1998, c 196, §3]


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