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Section 585 Of Article 4. Suspension Or Removal Of Subject Persons From California Financial Code >> Division 1. >> Chapter 6. >> Article 4.
585
. If, after notice and an opportunity to be heard, the
commissioner finds that any of the factors set forth in subdivision
(a), any of the factors set forth in subdivision (b), and any of the
factors set forth in subdivision (c) are true with respect to a
subject person of a subject institution or holding company, the
commissioner may issue an order suspending or removing the subject
person from the subject person's office, if any, with the subject
institution or holding company, and prohibiting the subject person
from participating in any manner in the conduct of the affairs of the
subject institution or holding company without the approval of the
commissioner:
(a) (1) That the subject person has, directly or indirectly, violated, or has caused a subject institution to violate, any provision of any:
(A) Division subject to the jurisdiction of the commissioner.
(B) Regulation promulgated by, or subject to the jurisdiction of, the commissioner.
(C) Other applicable law.
(D) Order issued by the commissioner or under the commissioner's authority.
(E) Written agreement between the subject institution, subject person, or holding company and the commissioner.
(2) That the subject person has, directly or indirectly, engaged or participated in any unsafe or unsound act in connection with the business of the subject institution, holding company, or any other business institution.
(3) That the subject person has, directly or indirectly, engaged or participated in any act that constitutes a breach of the subject person's fiduciary duty.
(b) That, by reason of the act, violation, or breach of fiduciary duty described in subdivision (a):
(1) The subject institution, holding company, or business institution has suffered or will probably suffer financial loss or other harm.
(2) The rights or interests of the customers or members of the subject institution have been or could be prejudiced.
(3) The subject person has received financial gain or other benefit.
(c) That the act, violation, or breach of fiduciary duty described in subdivision (a) either involves dishonesty on the part of the subject person or demonstrates the subject person's willful or continuing disregard for the safety or soundness of the subject institution, holding company, or business institution.
(a) (1) That the subject person has, directly or indirectly, violated, or has caused a subject institution to violate, any provision of any:
(A) Division subject to the jurisdiction of the commissioner.
(B) Regulation promulgated by, or subject to the jurisdiction of, the commissioner.
(C) Other applicable law.
(D) Order issued by the commissioner or under the commissioner's authority.
(E) Written agreement between the subject institution, subject person, or holding company and the commissioner.
(2) That the subject person has, directly or indirectly, engaged or participated in any unsafe or unsound act in connection with the business of the subject institution, holding company, or any other business institution.
(3) That the subject person has, directly or indirectly, engaged or participated in any act that constitutes a breach of the subject person's fiduciary duty.
(b) That, by reason of the act, violation, or breach of fiduciary duty described in subdivision (a):
(1) The subject institution, holding company, or business institution has suffered or will probably suffer financial loss or other harm.
(2) The rights or interests of the customers or members of the subject institution have been or could be prejudiced.
(3) The subject person has received financial gain or other benefit.
(c) That the act, violation, or breach of fiduciary duty described in subdivision (a) either involves dishonesty on the part of the subject person or demonstrates the subject person's willful or continuing disregard for the safety or soundness of the subject institution, holding company, or business institution.
