(a) If, as a result ofthe annual audit or an examination by the Commissioner, it appears that theassets of a pool are insufficient to enable the pool to discharge its legalliabilities and other obligations, the Commissioner must notify theadministrator and the board of trustees of the pool of the deficiency and hislist of recommendations to abate the deficiency, including a recommendation notto add any new members until the deficiency is abated. If the pool fails tocomply with the recommendations within 30 days after the date of the notice,the Commissioner may apply to the Superior Court of Wake County for an orderrequiring the pool to abate the deficiency and authorizing the Commissioner toappoint one or more special deputy commissioners, counsel, clerks, orassistants to oversee the implementation of the Court's order. Thecompensation and expenses of such persons shall be fixed by the Commissioner,subject to the approval of the Court, and shall be paid out of the funds orassets of the pool.
(b) If a pool isdetermined to be insolvent, financially impaired, or is otherwise found to beunable to discharge its legal liabilities and other obligations, each poolcontract will provide that the members of the pool shall be assessed on a prorata basis as calculated by the amount of each member's average annualcontribution in order to satisfy the amount of deficiency. Members of a poolmay, by contract, agree to limit the assessment to the amount of each member'sannual contribution to the pool. Such a contractual agreement shall not impairthe authority granted the Commissioner by this section. (1985(Reg. Sess., 1986), c. 1027, s. 26; 1987, c. 441, ss. 16, 17.)
(a) If, as a result ofthe annual audit or an examination by the Commissioner, it appears that theassets of a pool are insufficient to enable the pool to discharge its legalliabilities and other obligations, the Commissioner must notify theadministrator and the board of trustees of the pool of the deficiency and hislist of recommendations to abate the deficiency, including a recommendation notto add any new members until the deficiency is abated. If the pool fails tocomply with the recommendations within 30 days after the date of the notice,the Commissioner may apply to the Superior Court of Wake County for an orderrequiring the pool to abate the deficiency and authorizing the Commissioner toappoint one or more special deputy commissioners, counsel, clerks, orassistants to oversee the implementation of the Court's order. Thecompensation and expenses of such persons shall be fixed by the Commissioner,subject to the approval of the Court, and shall be paid out of the funds orassets of the pool.
(b) If a pool isdetermined to be insolvent, financially impaired, or is otherwise found to beunable to discharge its legal liabilities and other obligations, each poolcontract will provide that the members of the pool shall be assessed on a prorata basis as calculated by the amount of each member's average annualcontribution in order to satisfy the amount of deficiency. Members of a poolmay, by contract, agree to limit the assessment to the amount of each member'sannual contribution to the pool. Such a contractual agreement shall not impairthe authority granted the Commissioner by this section. (1985(Reg. Sess., 1986), c. 1027, s. 26; 1987, c. 441, ss. 16, 17.)
(a) If, as a result ofthe annual audit or an examination by the Commissioner, it appears that theassets of a pool are insufficient to enable the pool to discharge its legalliabilities and other obligations, the Commissioner must notify theadministrator and the board of trustees of the pool of the deficiency and hislist of recommendations to abate the deficiency, including a recommendation notto add any new members until the deficiency is abated. If the pool fails tocomply with the recommendations within 30 days after the date of the notice,the Commissioner may apply to the Superior Court of Wake County for an orderrequiring the pool to abate the deficiency and authorizing the Commissioner toappoint one or more special deputy commissioners, counsel, clerks, orassistants to oversee the implementation of the Court's order. Thecompensation and expenses of such persons shall be fixed by the Commissioner,subject to the approval of the Court, and shall be paid out of the funds orassets of the pool.
(b) If a pool isdetermined to be insolvent, financially impaired, or is otherwise found to beunable to discharge its legal liabilities and other obligations, each poolcontract will provide that the members of the pool shall be assessed on a prorata basis as calculated by the amount of each member's average annualcontribution in order to satisfy the amount of deficiency. Members of a poolmay, by contract, agree to limit the assessment to the amount of each member'sannual contribution to the pool. Such a contractual agreement shall not impairthe authority granted the Commissioner by this section. (1985(Reg. Sess., 1986), c. 1027, s. 26; 1987, c. 441, ss. 16, 17.)
