# Financial Institutions (GFI) ## Title 8. Savings and Loan Associations -- Board of Commissioners and Division ### Subtitle 4. Orders and Hearings #### Section 8-401 (a) The Division Director may issue orders: (1) To compel a savings and loan association or related entity to comply with its charter or bylaws, any applicable law, or any rule or regulation; (2) To direct a savings and loan association or related entity to cease and desist from any unsafe or unsound business practice including, but not limited to, unsound or unsafe interest rates, any practice injurious to the public interest, or any violation of State law or regulation relating to savings and loan associations; or (3) To direct a savings and loan association or related entity to remove any officer, director, or employee who has participated in or consented to any violation of law, regulation, or order relating to savings and loan associations, any unsafe or unsound business practice in the operation of the association, any insider loan not authorized by Sec. 9-307 of this article, or any repeated violation of the association's charter or bylaws. (b) An order issued by the Division Director under this section to a savings and loan association, or related entity shall: (1) Be in writing and signed by the Division Director; (2) State the alleged violation in detail and the facts that constitute the violation; (3) Direct the association or related entity to discontinue the violation or to take the ordered remedial action; and (4) State that the association or related entity has a right to a hearing with respect to matters set forth in the order if it submits a request for hearing within 20 days of the date of the order. (c) Upon receipt of such request, a hearing shall be scheduled promptly before the Division Director or the Division Director's designee and notice of the date, time, and place of the hearing shall be provided to the association, holding company, or subsidiary in writing by the Division Director. (d) An order shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to: (1) The president of the savings and loan association or related entity at its principal office in this State; or (2) Whomever the association or related entity designates to the Division Director. (e) (1) (i) In addition to an order issued under subsection (a) of this section, the Division Director may issue an emergency order with respect to any matter set forth in subsection (a) of this section if the Division Director determines that the protection of depositors, members, or stockholders of the association or the protection of the public requires immediate corrective action. (ii) Emergency orders shall: (1) Be effective on receipt; (2) Specify the charges and a hearing date within 30 days; and (3) Notify the recipient that, upon application, a hearing to abate the order will be scheduled within 10 days. (2) By its terms, an emergency order may be continued in effect until the effective date of a final order. #### Section 8-402 (a) Unless issued under Sec. 8-401(e) of this subtitle, an order issued under this subtitle may not become effective until the savings and loan association or related entity named in the order has been given an opportunity for a hearing before the Division Director or the Division Director's designee. (b) If the savings and loan association or related entity does not request a hearing within the time specified in Sec. 8-401(b)(4) of this subtitle or does not appear at the scheduled hearing, the order becomes final. (c) (1) After notifying the Secretary, the Division Director or the deputy division director may issue subpoenas compelling the attendance of witnesses or the production of records and documents at the hearing. (2) If any person fails to comply with the subpoena, the Division Director or deputy division director may apply to the Circuit Court for Baltimore City for an order holding the person in contempt. If the court finds that, without reasonable cause, the person has failed to comply with the subpoena, the court may find the person in contempt and punish the person as if for contempt of court. (3) The Division Director, the deputy division director, or the Division Director's designee may administer an oath to witnesses. (4) The Division Director shall maintain a record of the testimony and exhibits admitted at the hearing. (5) The Division Director may adopt rules of procedure governing the conduct of hearings. (6) If the Division Director determines by regulation that a procedure required by Title 10, Subtitle 2 (Administrative Procedure Act - Contested Cases) of the State Government Article does not apply to hearings before the Division, hearings scheduled by the Division may be conducted without regard to the procedure. (7) The issuance of emergency orders in accordance with Sec. 8-401(e) of this subtitle is not subject to Title 10, Subtitle 2 (Administrative Procedure Act - Contested Cases) of the State Government Article. (d) After the savings and loan association or related entity has been given an opportunity for a hearing, the Division Director or the Division Director's designee shall issue a final order within 30 days after the conclusion of the hearing. The order: (1) Shall be mailed as provided in Sec. 8-401 of this subtitle; and (2) Becomes final 30 days after issuance of the order. #### Section 8-403 (a) Any party aggrieved by a final order of the Division Director may appeal from the order to the Circuit Court for Baltimore City under Title 10, Subtitle 2 (Administrative Procedure Act - Contested Cases) of the State Government Article. (b) The filing of an appeal may not stay the effectiveness of the final order. #### Section 8-404 Subject to the evaluation and reestablishment provisions of the Program Evaluation Act, the provisions of this subtitle relating to the Division of Savings and Loan Associations and relating to the regulation of savings and loan associations are of no effect and may not be enforced after July 1, 1992. --- Md. Code Ann., Fin. Inst. (as displayed at mgaleg.maryland.gov, October 16, 2026)