Section 10-480 - Orders to rehabilitate, liquidate, or conserve providers.
§ 10-480. Orders to rehabilitate, liquidate, or conserve providers.
(a) Order to rehabilitate.-
(1) An order to rehabilitate a provider shall:
(i) appoint the Secretary as rehabilitator;
(ii) direct the Secretary:
1. to take possession of the property of the provider and conduct the business of the provider under the general supervision of the court; and
2. to take action the court directs to remove the causes and conditions that have made rehabilitation necessary;
(iii) vest title to all property of the provider in the rehabilitator; and
(iv) require the rehabilitator to make accountings to the court that:
1. are at intervals as the court specifies in its order, but not less frequently than two times each year; and
2. include the opinion of the rehabilitator about the likelihood of success of the rehabilitation.
(2) Issuance of an order of rehabilitation:
(i) does not constitute an anticipatory breach of any contract of the provider; and
(ii) is not grounds for retroactive revocation or retroactive cancellation of a contract of the provider, unless the rehabilitator revokes or cancels the contract.
(b) Order to terminate rehabilitation proceeding.-
(1) Subject to paragraph (2) of this subsection, the Secretary, or an interested person on due notice to the Secretary, may apply to the court at any time for an order that:
(i) terminates a rehabilitation proceeding; and
(ii) allows the provider to resume possession of its property and the conduct of its business.
(2) An order under this subsection may not be issued unless, after a hearing, the court determines that the purposes of the rehabilitation proceeding have been fully accomplished.
(c) Order to liquidate.-
(1) An order to liquidate the business of a provider shall direct the Secretary promptly to:
(i) take possession of the property of the provider;
(ii) liquidate the business of the provider;
(iii) deal with the property and business of the provider in the name of the Secretary or in the name of the provider, as the court directs; and
(iv) notify each creditor that may have a claim against the provider to present the creditor's claim.
(2) The Secretary may apply for, and the court may issue, an order to dissolve the corporate existence of a provider:
(i) on application of the Secretary for an order to liquidate the provider; or
(ii) at any time after the court has granted the order of liquidation.
(d) Order to conserve assets.- An order to conserve the assets of a provider shall require the Secretary promptly to take possession of and conserve the property of the provider in the State, subject to further direction by the court.
[An. Code 1957, art. 70B, § 20H; 2007, ch. 3, § 2.]