(1) In making determinations with respect to the violations or apparent violations under this section, the Director will consider the findings and recommendations submitted by the attorney, as well as any written statements submitted by the independent trustee or interested parties.
(2) The Director may take one of the following actions upon finding a violation or violations of the trust restrictions:
(i) Issue an order revoking trust certification or trustee approval;
(ii) Resolve the matter through any other remedial action within the Director's authority;
(iii) Order further examination and analysis of the violation or apparent violation; or
(iv) Decline to take further action.
(3) If the Director issues an order of revocation, parties to the trust instrument will receive prompt written notification. The notice will state the basis for the revocation and will inform the parties of the consequence of the revocation, which will be either of the following:
(i) The trust is no longer a qualified blind or qualified diversified trust for any purpose under Federal law; or
(ii) The independent trustee may no longer serve the trust in any capacity and must be replaced by a successor, who is subject to the prior written approval of the Director.