§ 54B-68. Supervisory control. - North Carolina Statutes

§ 54B‑68.  Supervisorycontrol.

(a)        Whenever theCommissioner of Banks determines that an association is conducting its businessin an unsafe or unsound manner or in any fashion which threatens the financialintegrity or sound operation of the association, the Commissioner of Banks mayserve a notice of charges on the association, requiring it to show cause why itshould not be placed under supervisory control. Such notice of charges shallspecify the grounds for supervisory control, and set the time and place for ahearing. A hearing before the Commission pursuant to such notice shall be heldwithin 15 days after issuance of the notice of charges, and shall comply withthe provisions of Article 3 of Chapter 150B of the General Statutes.

(b)        If, after the hearingprovided above, Commission determines that supervisory control of theassociation is necessary to protect the association's members, customers,stockholders or creditors, or the general public, the Commissioner of Banksshall issue an order taking supervisory control of the association. An appealmay be filed in the Wake County Superior Court.

(c)        If the order takingsupervisory control becomes final, the Commissioner of Banks may appoint anagent to supervise and monitor the operations of the association during theperiod of supervisory control. During the period of supervisory control, theassociation shall act in accordance with such instructions and directions asmay be given by the Commissioner of Banks directly or through his supervisoryagent and shall not act or fail to act except when to do so would violate anoutstanding cease and desist order.

(d)        Within 180 days ofthe date the order taking supervisory control becomes final, the Commissionerof Banks shall issue an order approving a plan for the termination ofsupervisory control. The plan may provide for:

(1)        The issuance by theassociation of capital stock;

(2)        The appointment ofone or more officers and/or directors;

(3)        The reorganization,merger, or consolidation of the association;

(4)        The dissolution andliquidation of the association.

The order approving the planshall not take effect for 30 days during which time period an appeal may befiled in the Wake County Superior Court.

(e)        The costs incidentto this proceeding shall be paid by the association, provided such costs arefound to be reasonable.

(f)         For the purposesof this section, an order shall be deemed final if:

(1)        No appeal is filedwithin the specific time allowed for the appeal, or

(2)        After all judicialappeals are exhausted. (1981, c. 282, s. 3; 1987, c. 827, s. 1; 2001‑193, s. 16.)