32-1-502. Grounds for closing bank.
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/mt/title-32/chapter-1/part-5/32-1-502·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
32-1-502 . Grounds for closing bank.
(1)When it appears to the department that:
(a)a bank has willfully violated its charter or a law of this state;
(b)a bank has willfully violated a general rule of the department, made in accordance with law;
(c)the capital of a bank is impaired or for any reason is below the amount required by law and has not been made good after notice, as provided by law, or, without that notice, in the event a majority of the board of directors of the bank notifies the department in writing that the impairment cannot be made good;
(d)a bank cannot meet or has failed to meet its liabilities as they become due in the regular course of business;
(e)a bank's reserve has fallen below the amount required by law and it has failed to make good that reserve within 30 days after being requested to do so by the department or, without that notice, if a majority of the directors, in writing, notifies the department that the reserve cannot be made good within 30 days or if it is continually allowing its reserve to fall below the required amount;
(f)a bank is conducting business in an unsafe and unauthorized manner or is in an unsafe or unsound condition;
(g)a bank refused to submit its papers, books, and concerns to the inspection of the department; or
(h)an officer of a bank has refused to be examined under oath regarding the affairs, business, or concerns of any bank insofar as they relate to solvency or matters having to do with the supervision by the department; then the department may, in its discretion, close the bank and take possession of all the books, records, assets, and business of every description of the bank and hold them and retain possession of them until the bank is authorized by the department to resume business or its affairs are liquidated as provided in this chapter, and it shall do so in cases where a bank comes into its possession voluntarily or in the manner provided by law.
(2)The powers and authority conferred on the department by this section, except in cases of voluntary surrender, are discretionary and not mandatory. As long as the department acts in good faith, the department and its employees and agents may not be held liable civilly or criminally or upon their official bonds for action taken under this section or for any failure to act under it.