§ 23-38-303 - Appointment of receiver or conservator.
23-38-303. Appointment of receiver or conservator.
(a) (1) In case any association notified as provided in 23-38-302 shall fail or neglect to comply with notice thus given within the time stipulated in the notice, or in the event the Securities Commissioner shall be of the opinion that the association is in an insolvent condition, the commissioner is authorized and directed to file a petition in the chancery court in the county where the principal office of the association is situated alleging the insolvency of the association or that the association is conducting its business in a fraudulent, illegal, or unsafe manner and that it has failed to discontinue the fraudulent, illegal, or unsafe practices within a reasonable time after notice from the commissioner.
(2) If the commissioner, upon investigation, finds that the association has been conducting its affairs in an illegal or fraudulent manner and the illegal or fraudulent practices, in the opinion of the commissioner, have rendered the condition of the association insolvent or if continued would jeopardize the financial condition of the association, the commissioner is vested with authority, without notice to the association, to file a petition in the chancery court setting up the illegal or fraudulent practices and asking for a receiver or conservator for the association.
(b) In all cases where the commissioner files a petition for a receiver or conservator, he shall attach to his petition, as soon as practicable after filing, a full and true statement of the affairs and conditions of the association, including an itemized statement of its assets and liabilities.
(c) (1) After the association has been served with the notice of the filing of the petition, the chancery court, if in session, and if not in session then in vacation, shall hear the petition. Upon finding that the association is insolvent or is conducting its business in a fraudulent, illegal, and unsafe manner, it shall appoint a receiver or conservator to take over all books, papers, records, and effects of every description belonging to the association, or on petition filed in chancery court, signed by five percent (5%), in amount, of the share or certificate holders of the association who shall be required to give opposite each person's name the number and amount of shares or certificates held in the association.
(2) The chancery court shall not be vested with authority to appoint a receiver or conservator for a building and loan association chartered under the laws of this state except on petition filed by the commissioner.