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Can you summarize ALCA 5-2A-12?
General Provisions. > Superintendent - Order to correct unsafe and unsound matters; penalties; procedure.
Short Summary
This legal document pertains to the authority of the superintendent to order banks, bank holding companies, board of directors, directors, and officers to correct any unsafe and unsound matters in the conduct of the bank’s affairs. The Banking Board may direct the superintendent to issue an order imposing civil money penalties and removing affected persons if they fail to comply with the superintendent’s order and their actions have caused or are likely to cause substantial financial loss to the bank. The civil money penalties imposed should not exceed $1,000 per day with a maximum of $100,000 in aggregate for all violations. The order of removal may also prohibit the affected person from participating in the affairs of any Alabama state bank or any holding company that controls an Alabama state bank. The affected person has the right to appear in person or by counsel at the hearing before the Banking Board. Any order of the superintendent imposing civil money penalties or directing removal is appealable to the Circuit Court of Montgomery County. Violation of this section by disclosing nonpublic information presented at a confidential hearing before the Banking Board is a Class A misdemeanor.
Whom does it apply to?
Banks, bank holding companies, board of directors, directors, officers
What does it govern?
Order to correct unsafe and unsound matters; penalties; procedure
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Civil money penalties up to $1,000 per day with a maximum of $100,000 in aggregate for all violations of an order. Removal from the bank or bank holding company.
Jurisdiction
Alabama