(Effective through June 30, 2029) 1. The state banking board may adopt rules for the government of financial institutions and trust companies mentioned in section 6-01-01 to the extent the rules do not conflict with any law of this state or of the United States. The state banking board shall make and enforce such orders as are necessary or proper to protect the public and the depositors or creditors of those financial institutions and trust companies. 2. The same powers are given to the state credit union board with reference to credit unions as are granted to the state banking board with reference to financial institutions and trust companies named in this chapter. 3. The state banking board and state credit union board shall hold a joint meeting to consider any budget recommendations from the commissioner. Upon consideration of a budget recommendation, the boards shall approve an annual or biennial budget for the department of financial institutions, including the number of full-time equivalent positions. A majority of the members of each board must be present to constitute a quorum for the joint meeting, and approval by a majority of the members present of each board is required to approve an annual or biennial budget for the department of financial institutions. Powers and duties of the state banking board and state credit union board. (Effective after June 30, 2029) The state banking board may adopt rules for the government of financial institutions and trust companies mentioned in section 6-01-01 to the extent the rules do not conflict with any law of this state or of the United States. The state banking board shall make and enforce such orders as are necessary or proper to protect the public and the depositors or creditors of those financial institutions and trust companies. The same powers are given to the state credit union board with reference to credit unions as are granted to the state banking board with reference to financial institutions and trust companies named in this chapter.
6-01-04.1. Removal of officers, directors, and employees of financial corporations or institutions. 1. The department of financial institutions or the board may issue, upon any current or former officer, director, or employee of a financial corporation, financial institution, or credit union subject to its jurisdiction and upon a financial corporation, financial institution, or credit union involved, an order stating: a. That the current or former officer, director, or employee is engaging, or has engaged, in any of the following conduct: (1) Violating any law, regulation, board order, or written agreement with the board. (2) Engaging or participating in any unsafe or unsound practice. (3) Performing any act of commission or omission or practice which is a breach of trust or a breach of fiduciary duty. b. The term of the suspension or removal from employment and participation within the conduct of the affairs of a financial corporation, financial institution, credit union, or any other entity licensed by the department of financial institutions. 2. The order must contain a notice of opportunity for hearing pursuant to chapter 28-32. The date for the hearing must be set not less than thirty days after the date the complaint is served upon the current or former officer, director, or employee of a financial corporation, financial institution, credit union, or any other entity licensed by the department of financial institutions. The current or former officer, director, or employee may waive the thirty-day notice requirement.
3. If no hearing is requested within twenty days of the date the order is served upon the current or former officer, director, or employee, the order is final. If a hearing is held and the board finds that the record so warrants, it may enter a final order. The final order suspending or removing the current or former officer, director, or employee is final. 4. A contested or default suspension or removal order is effective immediately upon issuance on the current or former officer, director, or employee and upon a financial corporation, financial institution, or credit union. A consent order is effective as agreed. 5. Any current or former officer, director, or employee suspended or removed from any position pursuant to this section is not eligible, while under suspension or removal, to be employed or otherwise participate in the affairs of any financial corporation, financial institution, or credit union or any other entity licensed by the department of financial institutions until the suspension or removal is terminated by the department of financial institutions or board. 6. When any current or former officer, director, employee, or other person participating in the conduct of the affairs of a financial corporation, financial institution, or credit union is charged with a felony in state or federal court, involving dishonesty or breach of trust, the commissioner may immediately suspend the person from office or prohibit the person from any further participation in a financial corporation's, financial institution's, or credit union's affairs. The order is effective immediately upon issuance of the order on a financial corporation, financial institution, or credit union and the person charged, and remains in effect until the criminal charge is finally disposed of or until modified by the board. If a judgment of conviction, a federal pretrial diversion, conviction or agreement to plea to lesser charges, or similar state order or judgment is entered, the board or commissioner may order that the suspension or prohibition be made permanent. A finding of not guilty or other disposition of the charge does not preclude the commissioner or the board from pursuing administrative or civil remedies. 7. The commissioner or board may issue upon a current or former officer, director, employee, or other person participating in the conduct of the affairs of a financial corporation, financial institution, or credit union an order permanently suspending and prohibiting the person from participation in a financial corporation's, financial institution's, or credit union's affairs if convicted of any charge involving dishonesty or breach of trust in state or federal court. The suspension or removal order is effective immediately upon issuance on the current or former officer, director, or employee and upon a financial corporation, financial institution, or credit union.