Order suspending or limiting payment of liabilities; effect of order; assignment or hypothecation of indebtedness.
1. The Commissioner may order a licensee to suspend the payment of its liabilities or limit the payment of its liabilities in such manner as he prescribes, if it appears to the Commissioner that this action is necessary for the protection of the licensee, its depositors or creditors, or in the public interest. The order is effective upon receipt of notice by the licensee and continues in effect until rescinded or modified by the Commissioner in a writing delivered to the manager or executive officer of the licensee.
2. Subsection 1 does not affect the right of any licensee to pay its current operating expenses and liabilities incurred during the period of suspension or limitation.
3. After an order suspending or limiting the payment of liabilities is effective and until that order is rescinded, the licensee shall make no assignment or hypothecation of any indebtedness due to it from a depositor without first crediting thereon the liability of the licensee to the depositor.
4. The authority granted to the Commissioner by this section may be exercised by him in conjunction with all other powers granted by this chapter, or independently from them.
Last modified: February 26, 2006