369.339. Director to take over association, when--procedure.
Director to take over association, when--procedure.
369.339. 1. If the director of the division of financefinds, as a result of any examination or from any report made tothe director or to any association, that the association isviolating the provisions of its articles of incorporation, itsbylaws or any law of this state, or is conducting its business inan unsafe or injurious manner, the director may by an orderaddressed to such association direct a discontinuance of suchviolations or unsafe or injurious practices and requireconformity with all of the requirements of law.
2. The director may demand and take possession of theproperty, business and assets of an association if any of thefollowing occur:
(1) The association does not comply with the order givenpursuant to subsection 1 of this section within the timespecified therein;
(2) It appears to the director that the association is inan unsafe condition or is conducting its business in an unsafe orinjurious manner such as to render its further proceedinghazardous to the public or to any or all its savings accountholders;
(3) The director finds that the association's assets areimpaired to such an extent that after deducting all liabilitiesother than to its savings account holders they do not equal orexceed the sum of the withdrawal value of all its savingsaccounts; or
(4) The association refuses to submit its books, papers andaccounts to the inspection of the director or any of thedirector's examiners.
3. The director may retain possession of the property,business and assets of an association until the associationresumes business with the consent of and subject to theconditions imposed by the director or until its affairs areliquidated. The director shall permit the association to resumebusiness if at any time during the director's possession of theassociation's property, business and assets the director findsthat the association is in a condition safely to resume business.
4. Whenever the director takes possession pursuant to thissection, the association may within ten days after the taking ofpossession commence an action in the circuit court of the countyin which the principal office of the association is located toenjoin further proceedings. The court, after citing the directorto show cause why further proceedings should not be enjoined,hearing the allegations and proofs of the parties, anddetermining the facts, may upon the merits dismiss such action,or may enjoin the director from further proceeding and direct thedirector to surrender the business, property and assets of theassociation. An appeal from a judgment enjoining the directorfrom further proceedings and directing the director to surrenderthe business, property and assets to the association does notoperate as a stay of the judgment unless the circuit court in itsdiscretion so orders. If an appeal from the judgment is taken bythe director, no bond need be given. If the judgment dismissesthe action, an appeal therefrom does not operate as a stay of thejudgment, but the court rendering such judgment may in itsdiscretion enjoin the director, pending the appeal, from furtherproceedings and direct the director, pending the appeal, tosurrender such business, property and assets to the associationif a bond in an amount required by the court is given.
5. If the director's demand for the possession of theproperty, business and assets is not complied with withintwenty-four hours after service of the demand, the director maycall to the director's assistance the sheriff of the county inwhich the principal place of business of such association islocated, by giving the sheriff written demand. The sheriff shallenforce the demand of the director.
6. When the director takes possession of the property,business and assets of any association, the president andsecretary of the association shall make a verified schedule ofall its property, assets and collateral held by it as securityfor loans. The president and secretary shall deliver theschedule, and possession of all property, assets and collateralnot previously delivered, to the director. The director may atany time examine under oath any president, secretary, officer,director, agent or employee of the association to determinewhether or not all such property, assets or collateral have beentransferred and delivered into the director's possession.
7. The director may issue subpoenas including subpoenasduces tecum and require the attendance of parties forexamination.
(L. 1971 S.B. 3 § 67, A.L. 1994 H.B. 1165)Effective 7-6-94