SECTIONS 17630-17634 - California Statutes

FINANCIAL CODE

SECTION 17630-17634

17630. If any facts occur which would entitle the commissioner
under Section 17621 to take possession of the property, business and
assets of a licensee the commissioner may appoint a conservator of a
licensee and require of him such bond as the commissioner deems
proper. The commissioner may also, upon the request of the board of
directors of a licensee, appoint a conservator of such licensee and
require of him such bond as the commissioner deems proper. The
conservator, under the direction of the commissioner, shall take
possession of the property, business and assets of the licensee and
take such action as he may deem necessary to conserve the assets of
such licensee pending further disposition of its business. The
conservator shall retain such possession until the property, business
and assets of the licensee are returned to the licensee or until
further order of the commissioner.

17631. Subject to the other provisions of this article, a
conservator, while in possession of the property, business and assets
of a licensee, has the same powers and rights and is subject to the
same duties and obligations as the commissioner while in possession
of the property, business and assets of a licensee; and during such
time the rights of a licensee and of all persons with respect
thereto, subject to the other provisions of this article, are the
same as if the commissioner had taken possession of such property,
business and assets. A conservator, while in possession of the
property, business and assets of a licensee, shall have all the
rights, powers and privileges of the licensee, its officers and
directors. All expenses of any such conservatorship shall be paid out
of the assets of the licensee and shall be a lien thereon which
shall be prior to any other lien. The conservator shall receive a
salary, fixed by the commissioners, in an amount no greater than that
which would be paid by the commissioner to a special deputy in
charge of the liquidation of the licensee.

17632. Upon appointing a conservator the commissioner shall cause
to be made and completed at the earliest possible date such an
examination of the affairs of the licensee as shall be necessary to
inform him as to its financial condition.

17633. A conservator, while in possession of the property, business
and assets of a licensee, may call, upon the notice required by the
licensee's bylaws, a meeting of the investors of the licensee who are
entitled to vote, for any purpose, including without limitation the
election of a board of directors, and upon the holding of a meeting
for such purpose the terms of office of all directors shall expire,
or may call, upon the notice required by the licensee's bylaws, a
meeting of the board of directors for any purpose, including without
limitation the filling of vacancies on the board of directors or the
removal and election or the removal or election of officers. Each
such meeting shall be supervised by the conservator.

17634. If the commissioner becomes satisfied that it may be done
safely and in the public interest, he may terminate the
conservatorship and permit the licensee for which a conservator was
appointed to resume its business under direction of its board of
directors, subject to such terms, conditions, restrictions and
limitations as he may prescribe.