§ 19-12-1 - Application for receivership.
SECTION 19-12-1
§ 19-12-1 Application for receivership.– The director, or the director's designee, is empowered immediately to takepossession of any financial institution or credit union and its assets if, uponexamination, any financial institution or credit union, which has or has notinvoked the conservatorship provisions or the voluntary liquidation provisionsof this title, appears to be insolvent by reason of:
(1) The financial institution's or credit union's financialcondition is such that the sum of the financial institution's or credit union'sdebts are greater than all of the financial institution's or credit union'sproperty at a fair valuation, exclusive of property transferred, concealed, orremoved with intent to hinder, delay or defraud the financial institution's orcredit union's creditors or because it is generally not paying or is unable topay its debts as they become due; or
(2) The financial institution's or credit union's conditionis such as to render the continuance of its business hazardous to the public orto those having funds in its custody; or
(3) The financial institution or credit union has failed tomaintain adequate deposit insurance as required by this title; or
(4) The financial institution or credit union has failed toremedy unsafe or unsound practices in violation of a cease and desist order.
The director may apply to the superior court for theappointment of the director or one of the director's deputies, or both, or inthe case when a financial institution's or credit union's deposits are insuredby the federal deposit insurance corporation, the national credit unionadministration or any other agency or instrumentality of the United States,which insures the deposits of the financial institution or credit union, as areceiver or receivers of the financial institution or credit union, and for aninjunction to restrain the financial institution or credit union, in whole orin part, from further proceeding with its business, and the court shall havejurisdiction in equity of the application.