J. MILLARD TAWES, GOVERNOR 205
form as the Board may require and conditioned upon proper and
faithful discharge of his duties.
(c) Powers. The Director shall have general supervision over all
associations which are subject to the provisions of this Article by
use of the powers conferred upon him by law. The Director may
pass such orders as he deems necessary to compel any association:
(1) to comply with its charter, constitution and by-laws; (2) to
comply with the laws of this State to carry out the purposes of this
sub-title; (3) to comply with such regulations as may be adopted
pursuant to the provisions of this sub-title. But, no such order
shall become effective until the Director shall have first given the
directors of such association, or their representatives, an oppor-
tunity to be heard at a time and place designated by the Director.
(D) DISQUALIFICATION. THE DIRECTOR DURING HIS
TERM OF OFFICE MAY NOT BE AN OFFICER, DIRECTOR,
ATTORNEY, EMPLOYEE OR AGENT OF, OR IN ANY MANNER
BE INTERESTED IN, ANY ASSOCIATION, EXCEPT THAT HE
MAY BE A HOLDER OF FREE SHARE ACCOUNTS.
161H. ORDERS; HEARINGS.
(a) Director to order discontinuance of illegal practice. If the
Director, as a result of any examination or from any report made
to him, shall find that any association is violating the provisions of
its articles of incorporation or by-laws, or the laws of this State, or
of the United States, or any lawful order of the Director, he shall,
by written order, state the alleged violation therein, together with
the facts alleged to constitute such violation, and direct discon-
tinuance of such violation and conformance with all requirements
of law.
(b) Contents of order; finality without hearing. Every communi-
cation having the effect of an order to any association shall be in
writing signed by the Director stating in detail the violation com-
plained of and shall be sent by registered mail to the association
affected thereby, addressed to the president thereof at the home
office of the association as shown by the latest records on file with
the Department, or, at the request of said association, to such per-
son as may be designated by the association to the Director. Such
communication shall include the designation of a time and place
for a departmental hearing before the Director, which shall in no
event be less than twenty (20) days from the date of the mailing
of such order. If, at such time and place, no one appears on behalf
of the association, the order shall become final.
(c) Appeal to and hearing before the Board. If, after depart-
mental hearing, the Director issues an order relative to the subject
matter of such hearing, such order shall be mailed, registered mail,
return receipt requested, to the association affected thereby, as pro-
vided in sub-section (a) hereof, and such order shall become final
unless the association affected thereby shall file with the Board an
appeal within twenty (20) days from the date of mailing of such
order. Within thirty (30) days after the filing of such appeal, the
Board shall hold a hearing. A record may be made by the Board of
all testimony and proceedings at such hearing. Within thirty (30)
days after such hearing the Board shall determine whether said
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