53-369. Administrative orders; penalties for violation; increase of equity capital.
(a) In addition to any other powers conferred by this Chapter, the Commissioner may:
(1) Order any authorized trust institution, or affiliate thereof, or any director, officer, or employee of an authorized trust institution, to cease and desist violating any provision of this Article or any rule issued thereunder.
(2) Order any authorized trust institution, or affiliate thereof, or any director, officer, or employee of an authorized trust institution, to cease and desist from a course of conduct that is unsafe or unsound and which is likely to cause insolvency or dissipation of the assets of an authorized trust institution, or is likely to jeopardize or otherwise seriously prejudice the interests of the clients, creditors, shareholders, or the public in their relationships with the authorized trust institution.
(3) Order any company to cease engaging in unauthorized trust activity.
(4) Enter orders described in G.S. 53-321, 53-327, and 53-343.
(b) The Commissioner may impose a civil money penalty of not more than one thousand dollars ($1,000) for each violation of an order issued under subdivision (1) of subsection (a) of this section. The Commissioner may impose a civil money penalty of not more than five hundred dollars ($500.00) per day for each violation of a cease and desist order issued under subdivision (2) or (3) of subsection (a) or this section. The clear proceeds of civil money penalties imposed pursuant to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.
(c) The Commissioner may order that a State trust company in a hazardous condition increase its equity capital to a level that is adequate for the safe and sound conduct of its business. The order shall specify the period of time for meeting the requirement to increase equity capital, which period of time may be extended by further order of the Commissioner. (2001-263, s. 1.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 53 - Regulation of Financial Services
Article 24 - Trust Companies and Interstate Trust Business.
§ 53-302 - Title and purposes.
§ 53-303 - Companies authorized to engage in trust business.
§ 53-304 - Activities not requiring a charter, license, or approval.
§ 53-305 - Trust business of State trust institution.
§ 53-306 - Trust business of out-of-state trust institution.
§ 53-307 - Trust business of foreign trust institution.
§ 53-308 - Name of trust institution.
§ 53-309 - Trust deposits of authorized trust institutions.
§ 53-310 - Offices of State trust companies.
§ 53-311 - State trust company principal office.
§ 53-312 - Trust offices; representative trust offices.
§ 53-313 - Out-of-state trust offices and representative trust offices.
§ 53-314 - Trust business through a branch or trust office.
§ 53-315 - Establishing an interstate trust office.
§ 53-316 - Acquiring an interstate trust office.
§ 53-317 - Requirement of notice.
§ 53-319 - Additional trust offices; representative trust offices.
§ 53-320 - Examinations; periodic reports; cooperative agreements; assessment of fees.
§ 53-322 - Notice of transactions that cause a change in control.
§ 53-323 - Foreign trust institution application for trust office or representative trust office.
§ 53-324 - Conditions for approval.
§ 53-325 - Additional trust offices and representative trust offices.
§ 53-326 - Examinations; periodic reports; cooperative agreements; assessment of fees.
§ 53-328 - Notice of transactions that cause a change in control.
§ 53-329 - International agreements.
§ 53-330 - Title and purposes.
§ 53-331 - Organization and powers of State trust company.
§ 53-332 - Articles of incorporation of State trust company.
§ 53-334 - Notice and investigation of charter application.
§ 53-335 - Decision on charter application and hearing.
§ 53-336 - Issuance of charter.
§ 53-337 - Required initial capital.
§ 53-338 - Subordinated notes or debentures.
§ 53-339 - Application of laws relating to general business corporations.
§ 53-340 - Investment in State trust company facilities.
§ 53-342 - Securities and other investments.
§ 53-343 - Prohibited distributions, acquisitions, liens, or pledges.
§ 53-345 - Engaging in commerce prohibited.
§ 53-346 - Lending and lease financing; conversion to State bank.
§ 53-347 - Acquisition of control.
§ 53-348 - Application regarding acquisition of control.
§ 53-349 - Decision on acquisition of control.
§ 53-351 - Report of changes in chief executive officer or directors.
§ 53-352 - Board of directors.
§ 53-353 - Required board meetings.
§ 53-355 - Certain criminal offenses.
§ 53-356 - Responsibility of directors.
§ 53-358 - Bonding requirements; reports of apparent crime.
§ 53-359 - Merger, share exchange, or asset transfer authority.
§ 53-360 - Merger, share exchange, or asset transfer application.
§ 53-362 - Appraisal rights of shareholders in mergers, share exchanges, or asset transfers.
§ 53-363 - Private trust companies.
§ 53-364 - Requirements to apply for and maintain status as a private trust company.
§ 53-365 - Conversion to public trust company.
§ 53-367 - Commissioner shall have supervision over authorized trust institutions and shall examine.
§ 53-368 - Assessment of State trust companies.
§ 53-369 - Administrative orders; penalties for violation; increase of equity capital.
§ 53-370 - Notice and opportunity for hearing.
§ 53-371 - Removal of directors, officers, and employees.
§ 53-372 - Required vote of shareholders.
§ 53-373 - Corporate procedure.
§ 53-374 - Authority to liquidate; publication.
§ 53-375 - Examination and reports.
§ 53-376 - Unclaimed property.
§ 53-377 - When Commissioner may take charge.
§ 53-379 - Notice of seizure; bar to attachment of liens.
§ 53-380 - Notice to trust institutions, corporations, and others holding assets; existing liens.
§ 53-381 - Permission to resume business.
§ 53-382 - Remedy for seizure; answer to notice; injunction; appeal; and motions.
§ 53-384 - Bond of the Commissioner; surety; condition; minimum penalty.
§ 53-386 - Notice and time for filing claims.
§ 53-387 - Power to reject claims; notice; affidavit of service; action on claims.
§ 53-388 - List of claims presented, copies, and proviso.
§ 53-389 - Declaration of dividends; order of preference in distribution.
§ 53-390 - Deposit of funds collected.
§ 53-391 - Employment of counsel, accountants, and other experts; compensation.
§ 53-392 - Unclaimed dividends held in trust.
§ 53-393 - Action by the Commissioner following full settlement.
§ 53-395 - Compensation of the Commissioner's office.
§ 53-396 - Exclusive method of liquidation.
§ 53-397 - Disposition of books and records.
§ 53-398 - Destruction of books and records.
§ 53-399 - Petition for new trustee.
§ 53-400 - Report to the Secretary of State.
§ 53-401 - Provisions for conservator; duties and powers.
§ 53-403 - Termination of conservatorship.
§ 53-404 - Rights and liabilities of conservator.
§ 53-405 - Naming of conservator not liquidation.
§ 53-406 - Sale of assets by board of jeopardized State trust company.
§ 53-407 - Authority to act as disbursing agent.
§ 53-408 - Payment to creditors.
§ 53-409 - Issuance of preferred shares by jeopardized trust company.
§ 53-410 - Commissioner to act under authority of the Commission.
§ 53-412 - Commissioner hearings; appeals.
§ 53-414 - Cancellation of charter.
§ 53-420 - Affiliate transfers authorized; procedure.
§ 53-421 - Objection to affiliate transfer.
§ 53-422 - Effect of affiliate transfer.