§ 27-64-8 - Rehabilitation and liquidation of protected cells.
SECTION 27-64-8
§ 27-64-8 Rehabilitation and liquidationof protected cells. – (a) If in relation to one or more protected cells of a protected cell company,the commissioner is satisfied that the protected cell assets attributable tothat protected cell are insufficient to discharge the claims of creditors orother claimants with respect to that protected cell, the commissioner may placeunder administrative supervision or apply for an order of conservation,rehabilitation or liquidation with respect to that protected cell. In carryingout the administrative supervision, conservation, rehabilitation, orliquidation of a protected cell, the receiver shall follow generally theprovisions of chapters 1, 12.2 and 14.1 – 14.4 of this title, asapplicable, and any rules and regulations promulgated under those chapters,except that at all times the receiver shall be bound to deal with the protectedcell assets and protected cell liabilities in accordance with the requirementsof this chapter.
(b) An order of rehabilitation or conservation may not berequested or made with respect to any protected cell of a protected cellcompany if a receiver has been appointed to act in respect of a protected cellcompany and the commissioner may still apply for an order of liquidation withrespect to that protected cell. Any prior order of rehabilitation orconservation with respect to a protected cell shall cease to be of effect uponan order of rehabilitation with respect to the protected cell company, withoutprejudice to the prior acts of the receiver or its agents.
(c) An order of rehabilitation, conservation or liquidationmay not be requested or made with respect to any protected cell of a protectedcell company if a liquidator has been appointed to act in respect of theprotected cell company. Any prior order of rehabilitation, conservation orliquidation with respect to a protected cell shall cease to be of effect uponan order of liquidation with respect to the protected cell company, withoutprejudice to the prior acts of the receiver or its agent.
(d) During any period of conservation or rehabilitation, orupon an order of liquidation, with respect to a protected cell, the directorsof the protected cell company shall cease in respect of the business of, andthe protected cell assets and protected cell liabilities attributable to theprotected cell, which is the subject of the rehabilitation, conservation orliquidation.
(e) In the event that a petition for an order ofrehabilitation, conservation or liquidation of a protected cell is challenged,prior to the entry or denial of the order, the directors of the protected cellcompany shall cease in respect of the business of, and the protected cellassets and protected cell liabilities attributable to, the protected cell whichis the subject of the petition and the commissioner shall carry out thebusiness of the protected cell until the order has been entered or denied. Inthe event the order is denied, the commissioner shall immediately returnpossession and control of the protected cell to the directors of the protectedcell company.
(f) No resolution for the voluntary winding up of a protectedcell company with any protected cell which has been placed under administrativesupervision or is the subject of an order of rehabilitation, conservation orliquidation shall be effective without permission of the commissioner and, inthe case of rehabilitation, conservation or liquidation, the court supervisingthe rehabilitation, conservation or liquidation.