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This entry was published on 2014-09-22
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SECTION 41
Removal of director, trustee or officer
Banking (BNK) CHAPTER 2, ARTICLE 2
§ 41. Removal of director, trustee or officer. 1. Whenever the
superintendent shall find that any director, trustee or officer of any
corporate banking organization or bank holding company (as such term
"bank holding company" is defined in article three-A of this chapter) or
any person or persons in charge of, or any officer of, a branch of a
foreign banking corporation has violated any law or duly enacted
regulation of the superintendent of financial services relating to such
corporation, or has continued unauthorized or unsafe practices in
conducting the business of such corporation after having been ordered or
warned by the superintendent to discontinue such practices, the
superintendent may, in his discretion, certify the facts to the board.
The board shall cause notice to be served upon such director, trustee,
officer or person in charge of, or officer of, a branch of a foreign
banking corporation either personally or, upon a finding that he cannot
be served personally within the state, by registered mail, at his
address last known to the superintendent, to appear before such board to
show cause why he should not be removed from office. A copy of such
notice shall be sent by registered mail to each director or trustee of
the banking organization and to each person in charge of and each
officer of a branch of the foreign banking corporation affected. If,
after granting the accused director, trustee, officer or person in
charge of, or officer of, a branch of a foreign banking corporation a
reasonable opportunity to be heard, the board by a three-fifths vote of
all its members finds that he has violated any law or duly enacted
regulation of the board relating to such corporation, or has continued
unauthorized or unsafe practices in conducting the business of such
corporation after having been ordered or warned by the superintendent to
discontinue such practices, the board, in its discretion, by a
three-fifths vote of all its members, may order that such director,
trustee, officer or person in charge of, or officer of, a branch of a
foreign banking corporation be removed from office.

2. Upon service either personally or by registered mail at his address
last known to the superintendent upon such director, trustee, officer or
person in charge of, or officer of, a branch of a foreign banking
corporation and upon the corporation of which he is a director, trustee,
officer or, in case he is a person in charge of, or officer of, a branch
of a foreign banking corporation upon such foreign banking corporation,
of a copy of such order, he shall cease to be a director, trustee or
officer of such banking organization or person in charge of, or officer
of, a branch of a foreign banking corporation. Such order and the
findings of fact upon which it is based shall not be made public or
disclosed to anyone except the director, trustee or officer or person in
charge of, or officer of, a branch of a foreign banking corporation
involved and the directors or trustees of the corporation involved,
except in connection with proceedings for a violation of this section.
Any director, trustee or officer or any person or persons in charge of,
or any officer of, a branch of a foreign banking corporation so removed
from office who thereafter without permission of the board participates
in any manner in the management of such banking organization or of a
branch of such foreign banking corporation shall be guilty of a
misdemeanor.