Current through 2024 NY Law Chapter 553
Section 99 - Powers of the superintendent1.If at any time during an acute emergency, the number of directors or acting directors of a domestic organization who are capable of acting shall be less than three, the superintendent shall have the power to designate additional acting directors in such number as will bring to three the number of directors and acting directors who are capable of acting.2.To resolve controversy as to the power of any group of persons purporting to act as an emergency board of directors so to act, the superintendent shall, upon a determination that such action will tend to promote the safe and sound and orderly conduct of the business of any domestic organization, have power to issue orders declaring that any such group shall or shall not have the powers of an emergency board of directors, or confirming, modifying or vacating in whole or in part any action taken or purportedly taken by any such group or removing any acting director.3.(a) At any time after an attack, upon his determination that such action will tend to promote certainty as to the powers of organizations or individuals pursuant to this article or that such action is desirable to enable organizations to take preparatory precautions prior to the occurrence of an acute emergency, the superintendent shall have power to declare that any provision of this article which he may specify shall be operative with respect to any domestic organization or to the New York business of any other organization which he may designate. Upon such declaration such organization and its directors, officers, acting directors and acting officers shall have all powers conferred by such provisions of this article. The failure of the superintendent so to declare shall not be deemed to limit the powers of any organization or its directors, officers, acting directors or acting officers where an acute emergency exists in fact.(b) At any time after the commencement of an acute emergency or after the superintendent shall have declared any provision of this article operative pursuant to paragraph (a) of this subdivision, upon his determination that an organization is able, in whole or in part, to carry on its business in compliance with its charter and the laws other than this article, the superintendent shall have power to declare that any provision of this article which he may specify shall be inoperative with respect to any domestic organization or to the New York business of any other organization which he may designate. Upon such declaration, such organization shall be governed by its charter and the provisions of law other than this article, except insofar as other provisions of this article remain operative.4.Upon his determination that, as a result of an acute emergency, the business and affairs of an organization cannot otherwise be conducted in a safe and sound manner, the superintendent may forthwith take possession of the business and property of the organization within this state or, if a domestic organization its business and property wherever situated. The provisions of sections five hundred seventeen through five hundred twenty-four, inclusive, of the insurance law shall be applicable in any case in which the superintendent takes possession of an organization pursuant to this subdivision as though the organization were an insurer which the superintendent had taken possession pursuant to sections five hundred twelve and five hundred sixteen of such law, except that no such provision shall be applicable which the superintendent shall have declared inapplicable pursuant to this subdivision. The superintendent shall have power to declare inapplicable any such provision upon his determination that the same is inappropriate or unnecessary to protect the interests of the public or the stockholders or creditors of the organization, in view of the acute emergency and the nature of the organization.5.The powers given the superintendent by subdivisions two and four of this section shall be exercised by him only in the event that there is no court of competent jurisdiction available to which an application can be made for an order permitting him to exercise such powers with respect to a particular organization; provided, further, that the powers conferred by subdivision four shall not be exercised in the case of an organization which is not insolvent within the meaning of section ninety-three of the insurance law, unless the superintendent finds that such organization lacks personnel able to manage its business in the interests of the public, its stockholders and policyholders.6.The superintendent shall have power to issue general and specific regulations, directives and orders consistent with and in furtherance of the purposes of this article.N.Y. Defense Emergency Act 1951 Law § 99