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Section 8225 Of Article 6. Conservatorship From California Financial Code >> Division 2. >> Chapter 7. >> Article 6.
8225
. (a) Whenever the commissioner deems it necessary in order to
conserve the assets of any association for the benefit of the
depositors and other creditors, or if the commissioner finds any of
the following with respect to any association: (1) the association is
in an impaired condition; (2) the association is engaging in
practices that threaten to result in an impaired condition; (3) the
association has substantially dissipated its assets due to violation
of law or regulation or to unsafe or unsound practice; (4) the
association is in an unsafe or unsound condition to transact
business; (5) the association is in violation of an order or
injunction, as authorized by this division; or (6) the association
refuses to submit its books, papers, and affairs to the inspection of
the commissioner, the commissioner may, ex parte and without notice,
appoint a conservator for the association.
(b) The conservator may be the commissioner, deputy commissioner or any other person.
(c) The conservator shall, upon appointment, immediately take possession of the books, records, and assets of every description of the association and shall take any further action as he or she may deem necessary to conserve the assets of the association pending further disposition of its business.
(d) Within six months of the date of appointment of the conservator, or within 12 months if the commissioner extends the six months' period, the association shall be returned to its board of directors to be managed and operated as if no conservator had been appointed, or a receiver shall be appointed as provided in Section 8250.
(e) If the commissioner or a department employee is appointed conservator no additional compensation shall be paid, but if another person is appointed then the compensation of the conservator, as determined by the commissioner, shall be paid by the association.
(f) Any expenses of such conservatorship shall be paid out of the assets of the association and shall be a lien against association assets prior to any other lien.
(b) The conservator may be the commissioner, deputy commissioner or any other person.
(c) The conservator shall, upon appointment, immediately take possession of the books, records, and assets of every description of the association and shall take any further action as he or she may deem necessary to conserve the assets of the association pending further disposition of its business.
(d) Within six months of the date of appointment of the conservator, or within 12 months if the commissioner extends the six months' period, the association shall be returned to its board of directors to be managed and operated as if no conservator had been appointed, or a receiver shall be appointed as provided in Section 8250.
(e) If the commissioner or a department employee is appointed conservator no additional compensation shall be paid, but if another person is appointed then the compensation of the conservator, as determined by the commissioner, shall be paid by the association.
(f) Any expenses of such conservatorship shall be paid out of the assets of the association and shall be a lien against association assets prior to any other lien.
