§ 27-20.3-11 - Rehabilitation, liquidation, or conservation.
SECTION 27-20.3-11
§ 27-20.3-11 Rehabilitation, liquidation,or conservation. – (a) Any rehabilitation, liquidation, administrative supervision, orconservation of a nonprofit legal service corporation organized under thischapter shall be conducted under the supervision of the director of businessregulation pursuant to chapters 14.1, 14.2, and 14.3 of this title. Thedirector of business regulation may apply for an order from the superior courtdirecting the director of business regulation to rehabilitate, liquidate, orconserve a nonprofit legal service corporation upon any one or more of thefollowing grounds:
(1) That the nonprofit legal service corporation isinsolvent; for the purposes of this section, the term "insolvent" means theinability of the nonprofit legal service corporation to meet its debts andfinancial obligations as they become due;
(2) That the nonprofit legal service corporation fails orrefuses to comply with a lawful order of the director of business regulationreasonably designed to correct unsound business policies or practices which, ifuncorrected, could reasonably lead to insolvency as defined in subdivision (1)of this subsection; or
(3) That the nonprofit legal service corporation's financialcondition is such as to render its further transaction of business hazardous tothe public or its subscribers or members.
(b) A claim by a health care provider shall not be assertedagainst any subscriber or member of the nonprofit legal service corporation inthe event of the rehabilitation, liquidation, conservation, or administrativesupervision of the nonprofit legal service corporation.