Section 5-2A-12

Superintendent — To report and order correction of unsafe and unsound matters; removal of directors or officers; procedure.

The superintendent may order the board of directors of any bank to correct any matters in the conduct of the affairs of the bank which in his opinion are unsafe and unsound. The Banking Board may, after at least 10 days' written notice to the bank and any officer or director affected, and a hearing, remove any director or officer of a bank which does not comply with the superintendent's order to correct unsafe and unsound matters if the Banking Board by written order enters a finding that the bank has thereby suffered or will probably suffer substantial financial loss and that such practice is one involving personal dishonesty on the part of such director or officer or one which demonstrates a willful and continuing disregard for the safety and soundness of the bank, the result of which has caused the bank to suffer or which is likely to cause the bank to suffer substantial financial loss. In such written notice, the superintendent shall include a specific statement of the facts constituting the alleged unsafe and unsound conduct to be made the basis of the removal. At the hearing thereof, the officer or director shall have the right to appear in person or by counsel. Any order directing removal of a director or officer shall within 15 days of the date of entry thereof be appealable to the Circuit Court of Montgomery County, which appeal shall be conducted de novo. Pending expiration of the time for appeal, the order of removal shall not become effective. All proceedings before the Banking Board shall be confidential. Any person violating this section by disclosure of information shall be guilty of a misdemeanor.

(Acts 1980, No. 80-658, §5-2-14.)