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HomeFinancial CodeDiv. 1Ch. 6Art. 3§ 580 Cease And Desist Orders

§ 580 Cease And Desist Orders

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 580 Cease And Desist Orders

Key Takeaways

  • •The law lets a boss (called a 'commissioner') stop a bank, a person, or a company from doing bad or risky stuff.
  • •The boss can step in if someone is breaking rules, doing something unsafe, or about to break rules.
  • •The boss must warn the person first and give them a chance to explain before stopping them.
  • •This applies to banks, people in charge, and companies that own banks.

Example

A bank starts giving out loans to people who can't pay them back, which is risky.

The boss can tell the bank to stop because it's doing something unsafe that could hurt the bank or customers. The bank gets a warning and a chance to explain first.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 580 Cease And Desist Orders

If, after notice and an opportunity to be heard, the commissioner finds any of the factors set forth in subdivision (a) or (b) with respect to any subject institution, subject person, or any holding company, the commissioner may order the subject institution, subject person, or holding company to cease and desist from the act or violation: (a) That the subject institution, subject person, or holding company has engaged or participated, is engaging or participating, or that there is reasonable cause to believe that the subject institution, subject person, or holding company is about to engage or participate, in any unsafe or unsound act with respect to the business of the subject institution. (b) That the subject institution, subject person, or holding company has violated, is violating, or that there is reasonable cause to believe that the subject institution, subject person, or holding company is about to violate any: (1) Provision of any division subject to the jurisdiction of the commissioner. (2) Provision of any regulation promulgated by, or subject to the jurisdiction of, the commissioner. (3) Provision of any other applicable law. (4) Provision of any written agreement between the subject institution, subject person, or holding company, and the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

institutionagreementregulationcommissionportto breakjurisdictionviolation

Related Statutes

  • § 553 Commissioner Enforcement Orders
  • § 581 Emergency Cease And Desist
  • § 566 Commissioner Enforcement Actions
  • § 582 Inaccurate Records Order
  • § 585 Bank Officer Removal Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 580.
View Official Source