Authority of Commissioner when unsafe condition or practice is suspected; seizure of property and assets of mortgage banker; duties of Attorney General.
1. In addition to any other action that is permitted pursuant to this chapter, if the Commissioner has reasonable cause to believe that:
(a) The assets or capital of a mortgage banker are impaired; or
(b) A mortgage banker is conducting business in an unsafe and injurious manner that may result in danger to the public,
Êthe Commissioner may immediately take possession of all the property, business and assets of the mortgage banker that are located in this state and retain possession of them pending further proceedings provided for in this chapter.
2. If the licensee, the board of directors or any officer or person in charge of the offices of the mortgage banker refuses to permit the Commissioner to take possession of the property of the mortgage banker pursuant to subsection 1:
(a) The Commissioner shall notify the Attorney General; and
(b) The Attorney General shall immediately bring such proceedings as may be necessary to place the Commissioner in immediate possession of the property of the mortgage banker.
3. If the Commissioner takes possession of the property of the mortgage banker, the Commissioner shall:
(a) Make or have made an inventory of the assets and known liabilities of the mortgage banker; and
(b) File one copy of the inventory in his office and one copy in the office of the clerk of the district court of the county in which the principal office of the mortgage banker is located and shall mail one copy to each stockholder, partner, officer, director or associate of the mortgage banker at his last known address.
4. The clerk of the court with which the copy of the inventory is filed shall file it as any other case or proceeding pending in the court and shall give it a docket number.
Last modified: February 27, 2006