§ 58-20-35. Insolvency or impairment of Club. - North Carolina Statutes

§58‑20‑35.  Insolvency or impairment of Club.

(a)        If an annual auditor an examination by the Commissioner reveals that the assets of a Club areinsufficient to discharge its legal liabilities and other obligations, theCommissioner shall notify the administrator and board of trustees of the Club'sdeficiency; and he shall recommend the measures to be taken in order to abatethe deficiency.  He may recommend that the Club refrain from adding new membersuntil the deficiency is abated.  If the Club fails to comply with therecommendations within 30 days after the date of the notice, the Commissionermay apply to the Superior Court of Wake County for an order requiring the Clubto abate the deficiency and authorizing the Commissioner to appoint one or morespecial deputy commissioners, counsel, clerks, or assistants to oversee theimplementation of the Court's order.  The compensation and expenses of suchpersons shall be fixed by the Commissioner, subject to the approval of theCourt, and shall be paid out of the funds or assets of the Club.

(b)        If a Club isdetermined to be insolvent, financially impaired, or is otherwise unable todischarge its legal liabilities and other obligations, each member shall beassessed on a pro rata basis as provided under G.S. 58‑20‑15. (1987,c. 330.)