§ 27-1-14 - Decree of forfeiture – Receiver. - Rhode Island Statutes

SECTION 27-1-14

   § 27-1-14  Decree of forfeiture –Receiver. – If, upon the examination of the president, secretary, or treasurer and of anyother witnesses and evidence as may be introduced by the insurance commissionerand defendants, the court is of the opinion that the charter of the company isforfeited at law, or that the company is managed in a manner that the public orthose having funds in its custody or who hold policies of insurance issued byit are in danger of being defrauded, or the continued operation of its businesswould be hazardous to the public or its policyholders, or that the company hasbecome insolvent, the court shall issue an injunction to the president,secretary, or treasurer and other officers of the corporation, enjoining themfrom proceeding further in transacting the business of the company, and shallappoint a discreet and proper person to be receiver of all the evidences ofdebt, goods, effects, and property of every description belonging to thecorporation. The court may require the receiver to give bond with surety to thesatisfaction of the court for the faithful execution of his or her trusts. Theperson once appointed as the receiver may, subject to the discretion of thecourt, continue to be receiver for the duration of the receivership proceedings.