15 USC 78u-3 - Cease-and-desist proceedings

U.S Code last checked for updates: Nov 22, 2024

§ 78u–3.

Cease-and-desist proceedings

(a)

Authority of Commission

(b)

Hearing

(c)

Temporary order

(1)

In general

(2)

Applicability

(3)

Temporary freeze

(A)

In general

(i)

Issuance of temporary order

(ii)

Standard

(iii)

Effective period

A temporary order issued under clause (i) shall—

(I)

become effective immediately;

(II)

be served upon the parties subject to it; and

(III)

unless set aside, limited or suspended by a court of competent jurisdiction, shall remain effective and enforceable for 45 days.

(iv)

Extensions authorized

(B)

Process on determination of violations

(i)

Violations charged

(ii)

Violations not charged

(d)

Review of temporary orders

(1)

Commission review

(2)

Judicial review

Within—

(A)

10 days after the date the respondent was served with a temporary cease-and-desist order entered with a prior Commission hearing, or

(B)

10 days after the Commission renders a decision on an application and hearing under paragraph (1), with respect to any temporary cease-and-desist order entered without a prior Commission hearing,

the respondent may apply to the United States district court for the district in which the respondent resides or has its principal place of business, or for the District of Columbia, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease-and-desist order entered without a prior Commission hearing may not apply to the court except after hearing and decision by the Commission on the respondent’s application under paragraph (1) of this subsection.

(3)

No automatic stay of temporary order

(4)

Exclusive review

(e)

Authority to enter order requiring accounting and disgorgement

(f)

Authority of the Commission to prohibit persons from serving as officers or directors

(June 6, 1934, ch. 404, title I, § 21C, as added Pub. L. 101–429, title II, § 203, Oct. 15, 1990, 104 Stat. 939; amended Pub. L. 107–204, § 3(b)(3), title XI, §§ 1103, 1105(a), July 30, 2002, 116 Stat. 749, 807, 809; Pub. L. 111–203, title IX, § 985(b)(8), July 21, 2010, 124 Stat. 1934.)

cite as: 15 USC 78u-3