Section 18415.13 Of Article 4. Possession, Conservatorship, And Liquidation By The Commissioner From California Financial Code >> Division 7. >> Chapter 5. >> Article 4.
18415.13
. After the taking of possession of the property and
business of any company, the commissioner may terminate or adopt any
executory contract to which the company may be a party, including
leases of real or personal property. The termination or adoption
shall be made within six months after obtaining knowledge of the
existence of the contract or lease. Any provision in the contract or
lease which provides for damages or cancellation fees upon
termination shall not be binding on the commissioner or the company
seized. The commissioner and the company shall only be liable for
actual damages and in no event in excess of one thousand dollars
($1,000). Any claim must be filed within 30 days of the date of the
termination.