Enforcement Actions - Cease And Desist Orders

(1) Cease and Desist Orders. If the Board has reason to believe that any qualified public depository or other financial institution subject to the regulatory Authority of the Board is or has been violating any of the provisions of the Act or of these rules including, but not limited to, any action that would constitute a default under the Act, or any failure to meet the criteria set forth in rule 1700-04-01-.03(2), or any failure to file any required report or perform any required action, the Board may issue to the qualified public depository or other financial institution that is subject to the Authority of the Board an order to cease and desist from the violation or to correct the condition giving rise to or resulting from the violation. (2) Notice to Qualified Public Depository. The qualified public depository shall be notified within five (5) business days of the cease and desist order. The cease and desist order shall specify the violation, the effective date of the cease and desist order, and the terms and conditions of such cease and desist order. (3) Effect of Cease and Desist Order. A cease and desist order may contain any terms and conditions the Board may deem necessary or appropriate to remedy any violation of law or these rules. Such terms and conditions may include, but shall not be limited to, enhanced reporting requirements or pledging of additional collateral. (4) Appeal. A qualified public depository which is issued a cease and desist order may appeal the decision by following the appeal procedure in rule 1700-04-01-.13. BANK COLLATERAL POOL CHAPTER 1700-04-01