Section 190.30 Cease and Desist Procedures

a) The Director shall issue a cease and desist order to any credit union which either willfully violates or the Director has reasonable cause to believe is about to violate the Act or rules or any condition imposed in writing by the Division or commits random violations which jeopardize the safety and soundness of the credit union. Such Order shall be sent to the Chairman of the credit union by certified mail with a copy to each member of the Board of Directors.

b) Within 10 days of the receipt of the Order, the credit union shall respond in writing to request a review of such exceptions. If no response is received, or the Order is agreed to in writing, the credit union shall be deemed to have consented to the issuance of the cease and desist order.

c) If a review of the Order is requested in writing by the credit union and after such review of the circumstances and record by the Director or his designated agent, the Director finds a circumstance described in Section 8(4) of the Illinois Credit Union Act [205 ILCS 305/8(4)], then the Director shall issue or extend as appropriate an order to cease and desist to the credit union from any such practice or violation. Such order shall require the credit union and its directors, officers, committee members, employees and agents to cease and desist from such violations and to take affirmative action to correct the conditions resulting from any such violation. If the credit union has specific grounds for believing that the evidence upon which the order is based is not factual then the credit union may request a formal hearing under 38 Ill. Adm. Code 190.20.

d) A cease and desist order shall become effective upon receipt by the credit union and shall remain effective until it is terminated by action of the Director or a reviewing court. Delivery to the United States Postal Service shall be presumed to constitute delivery to the credit union.

(Source: Amended at 30 Ill. Reg. 18919, effective December 4, 2006)