Sec. C-1. 9-B MRSA §232, first ¶, as amended by PL 1995, c. 628, §17, is further amended to read:
The superintendent may remove any officer or director of a financial institution organized pursuant to this Title or any officer of a branch of an out-of-state financial institution authorized to do business in this State, or any officer or director of a financial institution holding company, in accordance with the procedures and subject to the conditions and limitations set forth in this section.
Sec. C-2. 9-B MRSA §232, sub-§1, as repealed and replaced by PL 1993, c. 538, §2, is amended to read:
1. Grounds for removal. The superintendent may serve written notice of intent to remove an officer or director from office or to prohibit further participation by the officer or director in any manner in the conduct of the affairs of a financial institution or financial institution holding company if:
A. In the opinion of the superintendent, that officer or director has directly or indirectly:
(1) Violated a law, rule, regulation or cease and desist order that has become final;
(2) Engaged in or participated in any unsafe or unsound practice; or
(3) Committed or engaged in any act, omission, or practice that constitutes a breach of the fiduciary duty of the officer or director;
B. By reason of the violation, practice or breach of fiduciary duty described in paragraph A:
(1) The financial institution or financial institution holding company has suffered or will probably suffer financial loss or other damage;
(2) The interests of the financial institution's depositors have been or could be prejudiced; or
(3) The officer or director has received financial gain or other benefit by reason of the violation, practice or breach of fiduciary duty;
C. The violation, practice or breach of fiduciary duty described in paragraph A involves personal dishonesty on the part of the officer or director or demonstrates willful or continuing disregard by the officer or director for the safety or soundness of the financial institution or financial institution holding company; and
D. In the opinion of the superintendent, that officer or director has evidenced personal dishonesty and unfitness to continue as an officer or director of the financial institution or financial institution holding company by conduct with respect to another business entity that resulted, or is likely to result, in substantial financial loss or other damage.
Sec. C-3. 9-B MRSA §232, sub-§2, ¶B, as amended by PL 1977, c. 694, §156, is further amended to read:
B. The superintendent shall serve such written notice in accordance with Rule 4 of the Maine Rules of Civil Procedure upon the officer or director involved and copies of such notice shall must be served upon the financial institution or financial institution holding company of which he the person is an officer or director or in the conduct of whose affairs he the person has participated.
Sec. C-4. 9-B MRSA §232, sub-§3, ¶A, as enacted by PL 1975, c. 500, §1, is amended to read:
A. If the superintendent deems considers it necessary for the protection of the financial institution or financial institution holding company or the interests of its depositors or shareholders, such written notice may suspend the officer or director from office or prohibit him the officer or director from further participation in any manner in the conduct of the affairs of the financial institution or financial institution holding company.
Sec. C-5. 9-B MRSA §232, sub-§5, ¶C, as enacted by PL 1975, c. 500, §1, is amended to read:
C. In the event of consent pursuant to paragraph B, or if upon the record made at any such hearing the superintendent shall find finds that any of the grounds specified in the notice have been established, he the superintendent may issue such orders of suspension or removal from office or prohibition from participation in the conduct of the affairs of the financial institution or financial institution holding company, as he may deem the superintendent considers appropriate.
Sec. C-6. 9-B MRSA §232, sub-§6, ¶A, as enacted by PL 1975, c. 500, §1, is amended to read:
A. Any order issued pursuant to subsection 5 shall become becomes effective at the expiration of 30 days after service upon the officer or director and the financial institution or financial institution holding company concerned; provided that an order issued upon consent shall become becomes effective within the time specified therein.
Sec. C-7. 9-B MRSA §232, sub-§7, ¶B, as enacted by PL 1975, c. 500, §1, is amended to read:
B. At such time as a judgment of conviction with respect to such offense is entered against such officer or director, and such judgment is not subject to further appellate review, the superintendent may issue and serve upon such officer or director an order removing him the officer or director from such office or prohibiting him the officer or director from further participation in the conduct of the affairs of the financial institution or financial institution holding company except with the written consent of the superintendent. Such order shall become becomes effective after service upon the officer or director and the financial institution or financial institution holding company.
Effective September 19, 1997, unless otherwise indicated.
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