Cease-and-desist order

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Cease-and-desist order

An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company or a depository institution official to terminate unlawful, unsafe or unsound banking practices. Cease-and-desist orders are issued by the appropriate federal regulatory agencies under the Financial Institutions Supervisory Act and can be enforced directly by the courts.

Cease-and-Desist Order

An order from a government regulator to halt an action. Cease-and-desist orders are used to enforce licensing regulation, halt the sale of unregistered securities, or stop transactions believed to be fraudulent. The order states a period of time in which the recipient can contest it in court. If the recipient does not contest the order, or if the contest fails, the order becomes enforceable in a court of law.
References in periodicals archive ?
com/cease-and-desist) Upcounsel , another website for legal advice, expalains that cease and desist letters, unlike cease and desist orders, have almost no legal standing.
The financial crisis is causing a dramatic rise in the number of cease and desist orders by bank regulators, according to analysis by The Regulatory Fundamentals Group (RFG) LLC.
In March 2000, the Federal Reserve Board terminated temporary cease and desist orders that had been issued in 1998 against Banco Nacional de Mexico, Mexico City, Mexico; Banco Internacional, S.
In January 1991, the Board authorized a formal investigation with full discovery powers, made criminal referrals, and issued cease and desist orders upon consent, requiring the BCCI to divest shares of CCAH that it controls and to terminate its activities in the United States.