1. (a) If, after notice and a hearing, the Commissioner finds that the approved depository of a subject institution has violated or is about to violate any provision of its Agreement of Approved Depository or that there is other good cause for revoking the approval for such depository to act as the approved depository of such subject institution, the Commissioner may issue an order revoking such approval.

   1. (B) Any right of an approved depository to which an order is issued under Paragraph (1) of this Subdivision (b) or of the subject institution of which such depository was an approved depository to petition for judicial review of such order shall not be affected by the failure of the approved depository or of the subject institution to apply to the Commissioner for a hearing on the order pursuant to Subparagraph (A) of this Paragraph (2).

   (b)(1) If the Commissioner finds that any of the factors set forth in Subdivision (a) of this Section is true with respect to the approved depository of a subject institution and that it is necessary for the maintenance of sound financial condition, for the protection of the interests of the creditors of such subject institution's business in the State of California, or for the protection of the public interest that the Commissioner immediately revoke the approval for such depository to act as the approved depository of the subject institution, the Commissioner may issue an order revoking such approval.

   (2)(A) Within 30 days after the Commissioner issues an order pursuant to Paragraph (1) of this Subdivision (b), the approved depository to which such order is issued or the subject institution of which the depository was an approved depository may file with the Commissioner an application for a hearing on the order. If the Commissioner fails to commence such hearing within 15 business days after such application is filed with him (or within such longer period to which the approved depository or the subject institution, as the case may be, consents), the order shall be deemed rescinded. Within 30 days after the hearing, the Commissioner shall affirm, modify, or rescind the order; otherwise the order shall be deemed rescinded.

2. (c) Whenever the Commissioner issues an order revoking the approval for a depository to act as the approved depository of a subject institution, the Commissioner may issue an order directing the approved depository to transfer the eligible assets which it holds for such subject institution to a successor approved depository of the subject institution.

Note: Authority cited: Section 215, Financial Code. Reference: Section 1761, Financial Code.

History

1. Certificate of Compliance including amendment transmitted to OAL 2-11-82 and filed 3-12-82 (Register 82, No. 11).

2. Change without regulatory effect amending section filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).