Section 58-9-10 - Impairment of capital; unsafe conditions; receivership. - New Mexico Statutes

58-9-10. Impairment of capital; unsafe conditions; receivership.

If it appears to the director of the financial institutions division that the capital of a trust company is either reduced or impaired below one hundred fifty thousand dollars ($150,000), except for nonprofit corporations, or the affairs of the company are in an unsound condition, the director shall order the company to make good any deficit or to remedy the unsafe condition of its affairs within sixty days of the date of the order and may restrict and regulate the operation of the trust business until the capital is restored.  If the deficiency in capital has not been made good and the unsafe condition remedied within the prescribed time, the director may apply to the district court in the county in which the principal office of the company is located to be appointed receiver for the liquidation or rehabilitation of the company. The expense of the receivership shall be paid out of the assets of the trust company.