BANKS AND BANKING
SUPERVISION BY DEPARTMENT OF FINANCE
26-1115. cease and desist orders — penalties. (1) If the director of the department of finance finds that any bank, bank holding company or trust institution has engaged or is about to engage in an unsafe or unsound practice in conducting the business of such bank, bank holding company or trust institution, or any person has violated or is about to violate any provision of this act, any rule or order issued under the act, any condition imposed in writing by the director, or any written agreement entered into with the director, the director may order the bank, bank holding company, trust institution or other person to cease and desist from any such violation or practice. The order shall be issued pursuant to chapter 52, title 67, Idaho Code.
(2) After providing a notice and an opportunity for a public hearing pursuant to chapter 52, title 67, Idaho Code, the director of the department of finance may assess against and collect a civil money penalty from any bank, bank holding company or trust institution that, or from any executive officer, director, employee, agent or other person participating in the conduct of the affairs of such bank, bank holding company or trust institution who:
(a) Engages or participates in any unsafe or unsound practice in connection with a bank, bank holding company or trust institution; or
(b) Violates or knowingly permits any person to violate any of the provisions of:
(i) The Idaho bank act;
(ii) Any rule promulgated pursuant to the Idaho bank act; or
(iii) Any lawful order of the director of the department of finance issued pursuant to the Idaho bank act.
(3) The civil money penalty shall not exceed one thousand dollars ($1,000) per day for each day such violation continues. No civil money penalty shall be assessed for the same act or practice if another government agency has taken similar action against the bank, bank holding company or trust institution, or person to be assessed such civil money penalty. In determining the amount of the civil money penalty to be assessed, the director of the department of finance shall consider:
(a) The good faith of the bank, bank holding company, trust institution or person to be assessed with such civil money penalty;
(b) The gravity of the violation;
(c) Any previous violations by the bank, bank holding company, trust institution or person to be assessed with such civil money penalty;
(d) The nature and extent of any past violations; and
(e) Such other matters as the director of the department of finance may deem appropriate.
(4) Upon waiver by the respondent of the right to a public hearing concerning an assessment of a civil money penalty, the hearing or portions thereof may be closed to the public when concerns arise about prompt withdrawal of moneys from or the safety and soundness of the bank, bank holding company or trust institution.
(5) For the purposes of this section, a violation shall include, but is not limited to, any action by any person alone or with another person that causes, brings about, or results in the participation in, counseling of or aiding or abetting of a violation.
(6) The director of the department of finance may modify or set aside any order assessing a civil money penalty.
(7) Failure by a trust institution to comply with an order issued under this section within a reasonable time as the director prescribes is grounds for suspension or revocation of its charter or license issued under this act.
[26-1115, added 2015, ch. 204, sec. 17, p. 628.]