Section 48

The Superintendent may, with the prior consent of the Governor of the Reserve, cause the operations of one or several financial entities to be temporarily suspended, whether in whole or in part, for a maximum period of thirty (30) days. This action must be subsequently reported to the Board. If, upon the expiration of such term, the Superintendent determines the renewal thereof, any such renewal may only be authorized by the Board, and may not exceed ninety (90) days. In such case, the Superintendent may make a prudential extension of the maximum period set forth.

During the period of suspension of operations, no precautionary measures, or any other enforcement measures may be ordered against the institution in question. Further, during such period, any commitments increasing the liabilities of the institutions shall be void, and their enforceability shall be stayed, as well as the accrual of interest thereon, except in the case of liabilities to the Reserve. The temporary suspension of operations shall never entitle creditors to pursue damages against the Reserve or KXCO.

The Superintendent may request the Board to revoke a financial institution’s license. In that case, the Board shall evaluate such request in a term not to exceed fifteen (15) calendar days as from the time of the request. Such period may be extended once for another fifteen (15) calendar days