Article 7. Receivership of California Financial Code >> Division 2. >> Chapter 7. >> Article 7.
(a) If the commissioner finds that any association (1) is in
an impaired condition, (2) is engaging in practices that threaten to
result in an impaired condition, or (3) is in violation of an order
or injunction issued pursuant to this division, the commissioner may
appoint a receiver for the association.
(b) The receiver may be the commissioner, deputy commissioner or
any other person.
(c) The receiver shall, upon appointment, immediately take
possession of the books, records, and assets of every description of
(a) In the case of an insured association, the appointment by
the commissioner of a receiver under this article shall constitute
an official determination of a public authority of this state
pursuant to which a receiver is appointed for the purpose of
liquidation as contemplated by and within the meaning of subdivision
(d) of Section 401 of the National Housing Act of 1934 (12 U.S.C.
Sec. 1701 et seq.), as amended.
(b) A receiver shall have all the powers and authority of a
conservator plus the power to liquidate, and shall have any other
powers and authority that are expressed in an order of a court.
If the commissioner or a department employee is appointed
receiver, no additional compensation shall be paid, but if another
person is appointed, then the compensation of the receiver, as
determined by the court, shall be paid from the assets of the
If the association is an institution insured by the Federal
Deposit Insurance Corporation, the Federal Deposit Insurance
Corporation shall be tendered appointment as receiver or coreceiver.
If it accepts the appointment, it may, nevertheless, make loans on
the security of or purchase at public or private sale any part or all
of the assets of the association of which it is receiver or
coreceiver, provided the loan or purchase is approved by the court.
Whenever a receiver has taken possession of the property and
business of any association pursuant to this article, that
association, within 10 days after the taking, if it deems itself
aggrieved thereby, may apply to the superior court in the county in
which the home office of the association is located to enjoin further
proceedings. The court, after citing the commissioner to show cause
why further proceedings should not be enjoined and after hearing and
determination of the facts, may dismiss the application or enjoin the
commissioner from further proceedings and direct the commissioner to
surrender the property and business to that association.