CHAPTER 7. Liquidation and Conservation [600. - 710.]

Chapter 7 added by Stats. 2011, Ch. 243, Sec. 2.

§§ 600–710 · 55 sections

1. ARTICLE 1. General Provisions §§ 600–609 · 10 sections

   • § 600 In this chapter, “Federal Insurance Agency” means the Federal Deposit Insurance Corporation or the National Credit Union Administration, as appropriate, or…
   • § 601 Upon taking possession of the property and business of any licensee, the commissioner has authority, and it is his or her duty, to collect all moneys due to…
   • § 602 No attachment shall be issued against the property of any licensee subject to conservation or liquidation pursuant to this article.
   • § 603 Upon taking possession of the property and business of any licensee pursuant to Section 592, the commissioner may proceed to liquidate or conserve the licensee…
   • § 604 Upon taking possession of the property and business of a licensee pursuant to Section 592, the commissioner may tender to any person or persons an appointment…
   • § 605 The commissioner shall supervise the acts of the conservator, liquidator, receiver, or liquidating committee appointed under this article and may remove the…
   • § 606 If required by the commissioner, the conservator, liquidator, receiver, or members of the liquidating committee appointed under this article shall provide…
   • § 607 (a) If the commissioner retains possession of the assets of the licensee for the purpose of liquidation or conservation, the commissioner shall, to the extent…
   • § 608 The compensation of civil service employees, special deputies, counsel, and other employees and assistants appointed to assist in the conservation or…
   • § 609 If a licensee is not insured by a Federal Insurance Agency, upon the commissioner taking possession of the business and property of the licensee, the superior…
2. ARTICLE 2. Conservation or Liquidation of an Insured Licensee §§ 620–624 · 5 sections

   • § 620 If the licensee whose property and business has been taken pursuant to Section 592 is insured by a Federal Insurance Agency, the commissioner may tender to the…
   • § 621 The Federal Insurance Agency may be, and act as, a conservator, liquidator, or receiver without bond.
   • § 622 If the Federal Insurance Agency accepts the appointment in accordance with Section 620, the rights of customers and other creditors of the insured licensee…
   • § 623 The Federal Insurance Agency conservator, liquidator, or receiver shall possess with respect to the insured licensee all the powers, rights, and privileges…
   • § 624 (a) The commissioner may sell to any other licensee any part or the whole of the business of a licensee that is subject to liquidation or conservatorship. The…
3. ARTICLE 3. Conservatorship of an Uninsured Licensee §§ 640–652 · 13 sections

   • § 640 Whenever the commissioner deems it necessary in order to conserve the assets of any licensee that does not have federal deposit or share insurance for the…
   • § 641 A conservator appointed in accordance with Section 640 has all of the powers and rights with relation to the business and the property of the licensee for…
   • § 642 The commissioner may order an examination at the earliest possible date of a licensee for which the commissioner has appointed a conservator.
   • § 643 While any licensee is in the hands of a conservator, the commissioner may require the conservator to set aside and make available for withdrawal by customers…
   • § 644 The commissioner, in his or her discretion, may permit the conservator to receive shares or deposits, but any shares or deposits received while the licensee is…
   • § 645 If the commissioner is satisfied that it may be done safely and that it would be in the public interest, he or she may terminate a conservatorship and permit…
   • § 646 The conservator of a licensee that has been permitted to resume accepting member shares or deposits shall first cause a notice to be published in a newspaper…
   • § 647 The commissioner may assess and collect from all licensees for whom a conservator is appointed their ratable share of the costs incurred in the administration…
   • § 648 Any licensee that the commissioner has taken possession of pursuant to Section 592, and for which a conservator has been appointed pursuant to this article,…
   • § 649 All customers, creditors, stockholders, if applicable, and other interested persons shall be given notice of any proposed plan of reorganization in the manner…
   • § 650 No plan of reorganization shall become effective until the commissioner finds that the plan is fair and equitable to all customers, creditors, and…
   • § 651 No creditor having security for the payment of his, her, or its claim shall be affected in his, her, or its right to enforce the security by the provisions of…
   • § 652 When any plan of reorganization becomes effective, all books, records, and assets of the licensee shall be disposed of in accordance with the provisions of the…
4. ARTICLE 4. Liquidation of an Uninsured Licensee §§ 670–692 · 23 sections

   • § 670 Upon taking possession of the property and business of a licensee that does not have federal deposit or share insurance, the commissioner may sell, compromise,…
   • § 671 The commissioner may sell any real or personal property of the licensee for cash or on credit and on any other terms and conditions as the commissioner may…
   • § 672 (a) The commissioner may, with the approval of the court, sell any part or the whole of the business of a licensee to any other licensee. The purchase and sale…
   • § 673 Within six months after taking possession of the property and business of any licensee that does not have federal deposit or share insurance, the commissioner…
   • § 674 The commissioner, in his or her own name or in the name of the licensee, may execute, acknowledge, and deliver any and all conveyances and other instruments…
   • § 675 The commissioner, in the name of the delinquent licensee or in his or her own name, may prosecute and defend any and all actions and other legal proceedings…
   • § 676 The commissioner from time to time shall deposit all moneys coming into his or her hands in the course of the liquidation of the licensee in one or more state…
   • § 677 The commissioner shall make an inventory of the assets of the licensee in duplicate and file one in the office of the commissioner and one with the clerk of…
   • § 678 When the time fixed for the presentation of claims has expired, the commissioner shall make in duplicate a full and complete list of all claims presented,…
   • § 679 The commissioner shall cause notice to be given by advertisement in any newspapers of general circulation as he or she may select weekly for three consecutive…
   • § 680 All claims of every kind against the licensee or against any property owned or held by the licensee shall be presented to the commissioner in writing verified…
   • § 681 At any time and from time to time after the expiration of the time fixed for the presentation of claims, the commissioner, after obtaining approval of the…
   • § 682 (a) Expenses and claims of unsecured creditors have priority in the following order: (1) Expenses of liquidation and approved claims for fees and assessments…
   • § 683 Objections to any claim not rejected by the commissioner may be made by any person interested by filing a copy of the objection with the commissioner, who…
   • § 684 Dividends remaining unpaid and any sums available for payment of shares or deposits for which no claim was filed, which remain in the hands of the commissioner…
   • § 685 Whenever, under the provisions of this article, the commissioner is required to transmit unclaimed money or other unclaimed property to any state officer for…
   • § 686 All approved claims of customers and other creditors shall bear interest at the rate provided by law on judgments from the date that the commissioner takes…
   • § 687 If the licensee has in its possession for safekeeping or storage any jewelry, plate, money, specie, bullion, stocks, bonds, securities, valuable papers, or…
   • § 688 On the last day fixed in the notice for the removal of the property or on the date when the property is removed or the box surrendered, any contract between…
   • § 689 If any property is not removed within the time fixed by the notice mailed by the commissioner, the commissioner may dispose of the property as the court, on…
   • § 690 (a) When the commissioner has completed the liquidation of the licensee, he or she shall petition the court for an order declaring the licensee duly wound up…
   • § 691 Whenever this article requires court approval of any step in the liquidation proceedings, approval shall be given after a hearing upon notice as the court may…
   • § 692 Whenever, in the opinion of the commissioner, the liquidation or reorganization of any licensee taken in charge by him or her would be facilitated, or the…
5. ARTICLE 5. Disposal of Unclaimed Trust Property §§ 700–702 · 3 sections

   • § 700 Whenever any licensee is being liquidated or whenever the trust business of any licensee has been discontinued and the licensee has in its possession money or…
   • § 701 Upon the delivery of any money to the Treasurer or upon the delivery of any property to the Controller, a certified copy of the order of the court approving…
   • § 702 All money or other property delivered to the Treasurer or Controller pursuant to this article shall be deemed to be delivered for deposit in the State Treasury…
6. ARTICLE 6. Priorities § 710 · 1 section

   • § 710 The holder or transferor of a negotiable instrument transferred to a licensee for collection has a preferred claim in the amount of the liability of the…