(a) Grounds. The Board may suspend an institution-affiliated party
from office or prohibit an institution-affiliated party from further
participation in any manner in the conduct of an institution’s affairs
when the person is charged in any information, indictment, or complaint
authorized by a United States attorney with the commission of, or
participation in, a crime involving dishonesty or breach of trust
that is punishable by imprisonment for a term exceeding one year under
state or federal law. The Board may remove an institution-affiliated
party from office or prohibit an institution-affiliated party from
further participation in any manner in the conduct of an institution’s
affairs when the person is convicted of such an offense and the conviction
is not subject to further direct appellate review. The Board may suspend
or remove an institution-affiliated party or prohibit an institution-affiliated
party from participation in an institution’s affairs in these circumstances
if the Board finds that continued service to the financial institution
or participation in its affairs by the institution-affiliated party
may pose a threat to the interests of the institution’s depositors
or may threaten to impair public confidence in the financial institution.
8-087.1
(b) Contents. The Board
commences a suspension, removal, or prohibition action under this
subpart with the issuance, and service upon an institution-affiliated
party, of a notice of suspension from office, or order of removal
from office, or notice or order of prohibition from participation
in the financial institution’s affairs. Such a notice or order shall
indicate the basis for the suspension, removal, or prohibition and
shall inform the institution-affiliated party of the right to request
in writing, within 30 days of service of the notice or order, an opportunity
to show at an informal hearing that continued service to, or participation
in the conduct of the affairs of, the financial institution does not
and is not likely to pose a threat to the interests of the financial
institution’s depositors or threaten to impair public confidence in
the financial institution. Failure to file a timely request for an
informal hearing shall be deemed to be a waiver of the right to request
such a hearing. A notice of suspension or prohibition shall remain
in effect until the criminal charge upon which the notice is based
is finally disposed of or until the notice is terminated by the Board.
8-087.2
(c) Service. The notice
or order shall be served upon the affiliated financial institution
concerned, whereupon the institution-affiliated party shall immediately
cease service to the financial institution or further participation
in any manner in the conduct of the affairs of the financial institution.
A notice or order of suspension, removal, or prohibition may be served
by any of the means authorized for service under section 263.11(c)(2)
of subpart A.
