NY S07532

Superintendent of the Department of Financial Services may remove "covered individuals" (directors, trustees, officers, members, partners, or branch managers of banks, credit unions, mortgage companies, and similar financial entities) who caused, facilitated, or participated in violations of law, unsafe practices, or willful acts contributing to entity failure.

Superintendent must serve written notice of charges and provide opportunity for hearing; covered individual may be removed if found to have engaged in prohibited conduct, waives hearing, or fails to appear without good cause.

Superintendent may suspend a covered individual from office for up to 180 days pending hearing determination if there is reason to believe the individual's conduct caused financial loss, prejudiced depositors, or demonstrated willful disregard for the entity's safety and soundness; suspension may be extended for additional 180-day periods.

Removed or suspended covered individuals are prohibited from participating in any manner in the affairs of covered entities unless permitted in writing by the superintendent; unauthorized participation is a misdemeanor offense.

Orders for removal or suspension may be reviewed through Article 78 of the Civil Practice Law and Rules; proceeding shall follow requirements of Article 3 of the Financial Services Law.