Page:United States Statutes at Large Volume 48 Part 1.djvu/1162

 1136 73d C ONGRESS. SESS. II. CH. 672 . JUN E 19, 1934 . not take possession of its property and conduct its business and for such other relief as the nature of the case and the interests of its policyholders, creditors, stockholders, or the public may require, whenever any such company (a) is insolvent ; or (b) in the case of a stock company, has neglected or refused to observe a lawful order of the Superint endent to mak e good within the time pres cribed by law any deficiency of its capital or surplus, or in the case of a mutual company, if its assets have not become equal to its liabilities within ninety days from the date of notification thereof by the Super- intendent ; or (c) has by contract or reinsurance, or otherwise trans- ferred or attempted to transfer substantially its entire property or business, or entered into any transaction the effect of which is to merg e su bsta ntia lly its enti re p rope rty or b usin ess, in the prop erty or business of any other co mpany, associ ation, society, or order, without having first obtained the written approval of the Superin- tendent ; or (d) is found, after an examination by the Super- intendent, his deputy or examiners, to be in such condition that its further transaction of business will be hazardous to its policy- holders ; or (e) has willfully violated its charter ; or (f) is carrying on activities against public policy. Injunction, issue of. On su ch applicatio n, or any time thereafter, such court ma y, in its discretion, issue an injunction restraining such company from the transaction of its business or disposition of its property pending Determination of iss ues. further order of the court. On the return of such rule to show . cause, the court shall hear, try, and determine the issues forth- with and shall either deny the applicati on or direct t he Superin- tendent to take possession of the property and conduct the business of such company, and retain such possession and conduct such busi- ness until on the application either of the Superintendent, the cor- Hearings. poration counsel representing him, or of the company, it shall, after a like hearing, appear to the court that the ground for the order directing the Superintendent to take possession has been removed and that the company can properly resume possession of its property and the conduct of its business. Po wer of supe rin- If on the like application and rule to show cause, and after a ten dent when liquids- , > t ionor dere d. hearing, the court shall order the liquidation of the business of such company, such liquidation shall be made by and under the direction of the Superintendent, who may deal with the property and business of such company in his own name as Superintendent or in the name of the company, as the court may direct, and shall be vested by operation of law with title to all of the property, contracts, and rights of action of such company as of the date of the order so Notiee, on recording order. directing him to liquidate. The filing or recording of such order in. the office of the recorder of deeds for the District shall impart the same notice that a deed, bill of sale, or other evidence of title duly filed or recorded by such company would have imparted. Appointment of agents, For the purpose of this section the Superintendent shall have power to appoint under his hand and official seal one or more other personnel . special deputy superintendents of insurance as his agent or agents, and to employ clerks and assistants as may by him be deemed necessary, and give each of such persons such powers to assist him c ompensation. as he may consider wise. The fair and reasonable compensation of such special deputy superintendents, clerks, and assistants and all expenses of taking possession of and conducting the business of liqui- dating any such company shall be recommended by the Superin- tendent, subject to the approval of the court, and shall on certificate of the Superintendent be paid out of the funds or assets of such company.