Section 592 - Grounds for order to take possession without notice or hearingIf the commissioner finds that any of the factors set forth in subdivisions (a) to (k), inclusive, is true with respect to a licensee, the commissioner may by order, without any prior notice or opportunity to be heard, take possession of the property and business of the licensee:
(a) The licensee has violated any provision of (1) any division subject to the jurisdiction of the commissioner, (2) any regulation promulgated by, or subject to the jurisdiction of, the commissioner, (3) any provision of any other applicable law, (4) any provision of any order issued by the commissioner, (5) any provision of any written agreement made between the commissioner and the licensee, or (6) a condition imposed on any written approval granted by the commissioner.(b) The licensee is conducting its business in an unsafe or unsound manner.(c) The licensee is in such condition that it is unsafe or unsound for the licensee to transact appropriate licensee business.(d) The licensee has inadequate capital or net worth or is insolvent.(e) If the licensee is a bank, the tangible shareholders' equity of the bank is less than the following:(1) If the bank is a commercial bank or industrial bank, the greater of three percent of the bank's total assets or one million dollars ($1,000,000).(2) If the bank is a trust company other than a commercial bank authorized to engage in trust business, one million dollars ($1,000,000).(f) The licensee failed to pay any of its obligations as they came due or is reasonably expected to be unable to pay its obligations as they come due.(g) The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy, reorganization, insolvency, or moratorium law, or that any person has applied for any such relief under any such law against the licensee and the licensee has by any affirmative act approved of or consented to the action or the relief has been granted.(h) The licensee has ceased to transact the business the licensee is authorized to conduct pursuant to its license.(i) The licensee refuses to submit its books, papers, and affairs to the inspection of any examiner.(j) Any officer of the licensee refuses to be examined upon oath touching the concerns of the licensee.(k) The licensee has, with the approval of its board, requested the commissioner to take possession of its property and business.Added by Stats 2011 ch 243 (SB 664),s 2, eff. 1/1/2012.