Page:United States Statutes at Large Volume 122.djvu/2796

 12 2 STA T . 2 7 7 3PUBLIC LA W 11 0– 2 89—J UL Y 30, 2008 with th ecom mi s sio n o f o rpa rticipation in a crime in v o l vin gd ishonest y or b reach of tr u st which is punishable by impris - onment for a term e x ceeding 1 year under F ederal or S tate law , the D irector may, if continued service or partici- pation by such party may pose a threat to the regulated entity or impair public confidence in the regulated entity, by written notice served upon such party, suspend such party from office or prohibit such party from further partici- pation in any manner in the conduct of the affairs of any regulated entity .‘ ‘ (B)PROVIS IO N S AP P L I C A B L ET O NOTICE. — ‘‘(i) C OP Y .— A copy of any notice under subpara- graph (A) shall be served upon the relevant regulated entity. ‘‘(ii) EF FECTIVE PERIO D .—A suspension or prohibi- tion under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in subparagraph (A) is finally disposed of, or until terminated by the Director. ‘‘( 2 ) R E M OVAL OR PRO H IBITION.— ‘‘(A) I N G ENERAL.—If a j udgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an entity-affiliated party in connection with a crime described in paragraph (1)(A), at such time as such judgment is not subject to further appellate review, the Director may, if continued service or participation by such party may pose a threat to the regulated entity or impair public confidence in the regu- lated entity, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the regulated entity without the prior written consent of the Director. ‘‘(B) PROVISIONS APPLICABLE TO ORDER.— ‘‘(i) COPY.—A copy of any order under subpara- graph (A) shall be served upon the relevant regulated entity, at which time the entity-affiliated party who is subject to the order (if a director or an officer) shall cease to be a director or officer of such regulated entity. ‘‘(ii) EFFECT OF AC QU ITTAL.—A finding of not guilty or other disposition of the charge shall not preclude the Director from instituting proceedings after such finding or disposition to remove a party from office or to prohibit further participation in the affairs of a regulated entity pursuant to subsection (a) or (b). ‘‘(iii) EFFECTIVE PERIOD.— U nless terminated by the Director, any notice of suspension or order of removal issued under this subsection shall remain effective and outstanding until the completion of any hearing or appeal authori z ed under paragraph ( 4 ). ‘‘( 3 ) AUTHORITY OF REMAINING BOARD MEMBERS.— ‘‘(A) IN GENERAL.—If at any time, because of the suspension of 1 or more directors pursuant to this section, there shall be on the board of directors of a regulated entity less than a q uorum of directors not so suspended, all powers and functions vested in or exercisable by such

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