28.1003 Suspension of operations.

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(a) In the event a Bank has had an application for FDIC insurance accepted for filing, but not yet approved, the Governor may suspend the operation of subsection (2) of 28.1002 for a period not exceeding one year upon conditions he may determine. The conditions imposed may include, but shall not be limited to, the following general areas of concern:

(1) public notice;

(2) accounting and record keeping;

(3) insurance;

(4) management and operations expertise;

(5) Board of Directors membership;

(6) loan policy and limits;

(7) dividend policy; and

(8) investment policy;

and shall be set forth in a public document to be known as “Certificate of Temporary Suspension of Requirement to obtain FDIC Insurance”.

(b) In the event FDIC insurance has not been obtained within one year from the date the above certificate is granted and the application for insurance is still pending, the Governor may grant up to 8, 90-day, extensions within which to comply.

(c) In the event the Bank does not obtain FDIC insurance within the one-year period and any extensions if granted, or if the Bank fails to comply with any of the conditions of the certificate, the Governor may immediately suspend the operation of that Bank, freeze its assets, and liquidate its business in accordance with Banking rules and regulations and generally accepted banking principles.

History: 1979, PL 16-30 § 1; amd 1981, PL 17-13 § 1.