§ 58‑30‑85. Powers and duties of the rehabilitator.
(a) The rehabilitatorhas the power:
(1) To appoint a specialdeputy to act for him under this Article, and to determine his reasonablecompensation. The special deputy has all powers of the rehabilitator granted bythis section. The special deputy serves at the pleasure of the rehabilitator.
(2) To employ employeesand agents, legal counsel, actuaries, accountants, appraisers, consultants, andsuch other personnel as he may deem to be necessary to assist in therehabilitation.
(3) To fix thereasonable compensation of employees and agents, legal counsel, actuaries,accountants, appraisers, and consultants, with the approval of the Court.
(4) To pay reasonablecompensation to persons appointed; and to defray from the funds or assets ofthe insurer all expenses of taking possession of, conserving, conducting,rehabilitating, disposing of, or otherwise dealing with the business andproperty of the insurer.
(5) To hold hearings, tosubpoena witnesses to compel their attendance, to administer oaths, to examineany person under oath, and to compel any person to subscribe to this testimonyafter it has been correctly reduced to writing; and in connection therewith torequire the production of any books, papers, records, or other documents thathe considers relevant to the inquiry.
(6) To collect all debtsand moneys due and claims belonging to the insurer, wherever located, and forthis purpose:
a. To institute timelyaction in other jurisdictions, in order to forestall garnishment and attachmentproceedings against such debts;
b. To do such otheracts that are necessary or expedient to collect, conserve, or protect itsassets or property, including the power to sell, compound, compromise, orassign debts for purposes of collection upon such terms and conditions as hedeems to be best; and
c. To pursue anycreditor's remedies available to enforce his claims.
(7) To conduct publicand private sales of the property of the insurer.
(8) To use assets of theestate of an insurer under a rehabilitation order to transfer policyobligations to a solvent assuming insurer, if the transfer can be arrangedwithout prejudice to applicable priorities under G.S. 58‑30‑220.
(9) To acquire,hypothecate, encumber, lease, improve, sell, transfer, abandon, or otherwisedispose of or deal with, any property of the insurer at its market value orupon such terms and conditions that are fair and reasonable. He also has thepower to execute, acknowledge, and deliver any and all deeds, assignments,releases and other instruments necessary or proper to effectuate any sale ofproperty or other transaction in connection with the rehabilitation.
(10) To borrow money onthe security of the insurer's assets or without security and to execute anddeliver all documents necessary to that transaction for the purpose offacilitating the rehabilitation.
(11) To enter into suchcontracts that are necessary to carry out the order to rehabilitate, and toaffirm or disavow any contracts to which the insurer is a party.
(12) To continue toprosecute and to institute in the name of the insurer or in his own name anyand all suits and other legal proceedings, in this State or elsewhere, and toabandon the prosecution of claims he deems unprofitable to pursue further.
(13) To prosecute anyaction that may exist in behalf of the creditors, members, policyholders, orshareholders of the insurer against any officer of the insurer or against anyother person.
(14) To remove any or allrecords and property of the insurer to the offices of the Commissioner or tosuch other place as may be convenient for the purposes of efficient and orderlyexecution of the rehabilitation.
(15) To deposit in one ormore banks in this State such sums as are required for meeting current administrationexpenses and dividend distributions.
(16) To invest all sumsnot currently needed, unless the Court orders otherwise.
(17) To file any necessarydocuments for recording in the office of any register of deeds in this State orelsewhere where property of the insurer is located.
(18) To assert alldefenses available to the insurer as against third persons, including statutesof limitation, statutes of frauds, and the defense of usury. A waiver of anydefense by the insurer after a petition in rehabilitation has been filed shallnot bind the rehabilitator.
(19) To exercise andenforce all rights, remedies, and powers of any creditor, shareholder,policyholder, or member; including any power to avoid any transfer or lien thatmay be given by law and that is not included within G.S. 58‑30‑140through 58‑30‑150.
(20) To intervene in anyproceeding wherever instituted that might lead to the appointment of a receiveror trustee, and to act as the receiver or trustee whenever the appointment isoffered.
(21) To enter intoagreements with any receiver or insurance regulator of any other state relatingto the rehabilitation, liquidation, conservation, or dissolution of an insurerdoing business in both states.
(22) To exercise allpowers now held or subsequently conferred upon receivers by laws of this Statenot inconsistent with the provisions of this Article.
(b) The enumeration inthis section of the powers and authority of the rehabilitator shall not beconstrued as a limitation upon him, nor shall it exclude in any manner hisright to do such other acts not specifically enumerated in this section orotherwise provided for, as may be necessary or appropriate for theaccomplishment of or in aid of the purpose of rehabilitation.
(c) The rehabilitatormay take such action as he considers necessary or appropriate to reform andrevitalize the insurer. He shall have all the powers of the directors,officers, and managers, whose authority shall be suspended, except to theextent they may be redelegated by the rehabilitator. He shall have full powerto direct, manage, hire, and discharge employees, subject to any contractrights they may have, and to deal with the property and business of theinsurer.
(d) If it appears tothe rehabilitator that there has been criminal or tortious conduct, or breachof any contractual or fiduciary obligation detrimental to the insurer by anyofficer, manager, agent, broker, employee or other person, he may pursue allavailable legal remedies on behalf of the insurer.
(e) If the rehabilitatordetermines that reorganization, consolidation, conversion, reinsurance, merger,runoff, or other transformation of the insurer is appropriate, he shall preparea plan to effect such changes. Upon application of the rehabilitator forapproval of the plan, and after such notice and hearings as the Court mayprescribe, the Court may either approve or disapprove the plan proposed, or maymodify it and approve it as modified. Any plan approved under this sectionshall be, in the opinion of the Court, fair and equitable to all partiesconcerned. If the plan is approved, the rehabilitator shall carry out the plan.In the case of a life insurer, the plan proposed may include the imposition ofliens upon the policies of the insurer, if all rights of shareholders are firstrelinquished. A plan for a life insurer may also propose imposition of amoratorium upon loan and cash surrender rights under policies, for such periodand to such an extent as may be necessary.
(f) The rehabilitatorshall have the power under G.S. 58‑30‑140 and G.S. 58‑30‑145to avoid fraudulent transfers. (1989, c. 452, s. 1; 2009‑172, s. 2.)
§ 58‑30‑85. Powers and duties of the rehabilitator.
(a) The rehabilitatorhas the power:
(1) To appoint a specialdeputy to act for him under this Article, and to determine his reasonablecompensation. The special deputy has all powers of the rehabilitator granted bythis section. The special deputy serves at the pleasure of the rehabilitator.
(2) To employ employeesand agents, legal counsel, actuaries, accountants, appraisers, consultants, andsuch other personnel as he may deem to be necessary to assist in therehabilitation.
(3) To fix thereasonable compensation of employees and agents, legal counsel, actuaries,accountants, appraisers, and consultants, with the approval of the Court.
(4) To pay reasonablecompensation to persons appointed; and to defray from the funds or assets ofthe insurer all expenses of taking possession of, conserving, conducting,rehabilitating, disposing of, or otherwise dealing with the business andproperty of the insurer.
(5) To hold hearings, tosubpoena witnesses to compel their attendance, to administer oaths, to examineany person under oath, and to compel any person to subscribe to this testimonyafter it has been correctly reduced to writing; and in connection therewith torequire the production of any books, papers, records, or other documents thathe considers relevant to the inquiry.
(6) To collect all debtsand moneys due and claims belonging to the insurer, wherever located, and forthis purpose:
a. To institute timelyaction in other jurisdictions, in order to forestall garnishment and attachmentproceedings against such debts;
b. To do such otheracts that are necessary or expedient to collect, conserve, or protect itsassets or property, including the power to sell, compound, compromise, orassign debts for purposes of collection upon such terms and conditions as hedeems to be best; and
c. To pursue anycreditor's remedies available to enforce his claims.
(7) To conduct publicand private sales of the property of the insurer.
(8) To use assets of theestate of an insurer under a rehabilitation order to transfer policyobligations to a solvent assuming insurer, if the transfer can be arrangedwithout prejudice to applicable priorities under G.S. 58‑30‑220.
(9) To acquire,hypothecate, encumber, lease, improve, sell, transfer, abandon, or otherwisedispose of or deal with, any property of the insurer at its market value orupon such terms and conditions that are fair and reasonable. He also has thepower to execute, acknowledge, and deliver any and all deeds, assignments,releases and other instruments necessary or proper to effectuate any sale ofproperty or other transaction in connection with the rehabilitation.
(10) To borrow money onthe security of the insurer's assets or without security and to execute anddeliver all documents necessary to that transaction for the purpose offacilitating the rehabilitation.
(11) To enter into suchcontracts that are necessary to carry out the order to rehabilitate, and toaffirm or disavow any contracts to which the insurer is a party.
(12) To continue toprosecute and to institute in the name of the insurer or in his own name anyand all suits and other legal proceedings, in this State or elsewhere, and toabandon the prosecution of claims he deems unprofitable to pursue further.
(13) To prosecute anyaction that may exist in behalf of the creditors, members, policyholders, orshareholders of the insurer against any officer of the insurer or against anyother person.
(14) To remove any or allrecords and property of the insurer to the offices of the Commissioner or tosuch other place as may be convenient for the purposes of efficient and orderlyexecution of the rehabilitation.
(15) To deposit in one ormore banks in this State such sums as are required for meeting current administrationexpenses and dividend distributions.
(16) To invest all sumsnot currently needed, unless the Court orders otherwise.
(17) To file any necessarydocuments for recording in the office of any register of deeds in this State orelsewhere where property of the insurer is located.
(18) To assert alldefenses available to the insurer as against third persons, including statutesof limitation, statutes of frauds, and the defense of usury. A waiver of anydefense by the insurer after a petition in rehabilitation has been filed shallnot bind the rehabilitator.
(19) To exercise andenforce all rights, remedies, and powers of any creditor, shareholder,policyholder, or member; including any power to avoid any transfer or lien thatmay be given by law and that is not included within G.S. 58‑30‑140through 58‑30‑150.
(20) To intervene in anyproceeding wherever instituted that might lead to the appointment of a receiveror trustee, and to act as the receiver or trustee whenever the appointment isoffered.
(21) To enter intoagreements with any receiver or insurance regulator of any other state relatingto the rehabilitation, liquidation, conservation, or dissolution of an insurerdoing business in both states.
(22) To exercise allpowers now held or subsequently conferred upon receivers by laws of this Statenot inconsistent with the provisions of this Article.
(b) The enumeration inthis section of the powers and authority of the rehabilitator shall not beconstrued as a limitation upon him, nor shall it exclude in any manner hisright to do such other acts not specifically enumerated in this section orotherwise provided for, as may be necessary or appropriate for theaccomplishment of or in aid of the purpose of rehabilitation.
(c) The rehabilitatormay take such action as he considers necessary or appropriate to reform andrevitalize the insurer. He shall have all the powers of the directors,officers, and managers, whose authority shall be suspended, except to theextent they may be redelegated by the rehabilitator. He shall have full powerto direct, manage, hire, and discharge employees, subject to any contractrights they may have, and to deal with the property and business of theinsurer.
(d) If it appears tothe rehabilitator that there has been criminal or tortious conduct, or breachof any contractual or fiduciary obligation detrimental to the insurer by anyofficer, manager, agent, broker, employee or other person, he may pursue allavailable legal remedies on behalf of the insurer.
(e) If the rehabilitatordetermines that reorganization, consolidation, conversion, reinsurance, merger,runoff, or other transformation of the insurer is appropriate, he shall preparea plan to effect such changes. Upon application of the rehabilitator forapproval of the plan, and after such notice and hearings as the Court mayprescribe, the Court may either approve or disapprove the plan proposed, or maymodify it and approve it as modified. Any plan approved under this sectionshall be, in the opinion of the Court, fair and equitable to all partiesconcerned. If the plan is approved, the rehabilitator shall carry out the plan.In the case of a life insurer, the plan proposed may include the imposition ofliens upon the policies of the insurer, if all rights of shareholders are firstrelinquished. A plan for a life insurer may also propose imposition of amoratorium upon loan and cash surrender rights under policies, for such periodand to such an extent as may be necessary.
(f) The rehabilitatorshall have the power under G.S. 58‑30‑140 and G.S. 58‑30‑145to avoid fraudulent transfers. (1989, c. 452, s. 1; 2009‑172, s. 2.)
§ 58‑30‑85. Powers and duties of the rehabilitator.
(a) The rehabilitatorhas the power:
(1) To appoint a specialdeputy to act for him under this Article, and to determine his reasonablecompensation. The special deputy has all powers of the rehabilitator granted bythis section. The special deputy serves at the pleasure of the rehabilitator.
(2) To employ employeesand agents, legal counsel, actuaries, accountants, appraisers, consultants, andsuch other personnel as he may deem to be necessary to assist in therehabilitation.
(3) To fix thereasonable compensation of employees and agents, legal counsel, actuaries,accountants, appraisers, and consultants, with the approval of the Court.
(4) To pay reasonablecompensation to persons appointed; and to defray from the funds or assets ofthe insurer all expenses of taking possession of, conserving, conducting,rehabilitating, disposing of, or otherwise dealing with the business andproperty of the insurer.
(5) To hold hearings, tosubpoena witnesses to compel their attendance, to administer oaths, to examineany person under oath, and to compel any person to subscribe to this testimonyafter it has been correctly reduced to writing; and in connection therewith torequire the production of any books, papers, records, or other documents thathe considers relevant to the inquiry.
(6) To collect all debtsand moneys due and claims belonging to the insurer, wherever located, and forthis purpose:
a. To institute timelyaction in other jurisdictions, in order to forestall garnishment and attachmentproceedings against such debts;
b. To do such otheracts that are necessary or expedient to collect, conserve, or protect itsassets or property, including the power to sell, compound, compromise, orassign debts for purposes of collection upon such terms and conditions as hedeems to be best; and
c. To pursue anycreditor's remedies available to enforce his claims.
(7) To conduct publicand private sales of the property of the insurer.
(8) To use assets of theestate of an insurer under a rehabilitation order to transfer policyobligations to a solvent assuming insurer, if the transfer can be arrangedwithout prejudice to applicable priorities under G.S. 58‑30‑220.
(9) To acquire,hypothecate, encumber, lease, improve, sell, transfer, abandon, or otherwisedispose of or deal with, any property of the insurer at its market value orupon such terms and conditions that are fair and reasonable. He also has thepower to execute, acknowledge, and deliver any and all deeds, assignments,releases and other instruments necessary or proper to effectuate any sale ofproperty or other transaction in connection with the rehabilitation.
(10) To borrow money onthe security of the insurer's assets or without security and to execute anddeliver all documents necessary to that transaction for the purpose offacilitating the rehabilitation.
(11) To enter into suchcontracts that are necessary to carry out the order to rehabilitate, and toaffirm or disavow any contracts to which the insurer is a party.
(12) To continue toprosecute and to institute in the name of the insurer or in his own name anyand all suits and other legal proceedings, in this State or elsewhere, and toabandon the prosecution of claims he deems unprofitable to pursue further.
(13) To prosecute anyaction that may exist in behalf of the creditors, members, policyholders, orshareholders of the insurer against any officer of the insurer or against anyother person.
(14) To remove any or allrecords and property of the insurer to the offices of the Commissioner or tosuch other place as may be convenient for the purposes of efficient and orderlyexecution of the rehabilitation.
(15) To deposit in one ormore banks in this State such sums as are required for meeting current administrationexpenses and dividend distributions.
(16) To invest all sumsnot currently needed, unless the Court orders otherwise.
(17) To file any necessarydocuments for recording in the office of any register of deeds in this State orelsewhere where property of the insurer is located.
(18) To assert alldefenses available to the insurer as against third persons, including statutesof limitation, statutes of frauds, and the defense of usury. A waiver of anydefense by the insurer after a petition in rehabilitation has been filed shallnot bind the rehabilitator.
(19) To exercise andenforce all rights, remedies, and powers of any creditor, shareholder,policyholder, or member; including any power to avoid any transfer or lien thatmay be given by law and that is not included within G.S. 58‑30‑140through 58‑30‑150.
(20) To intervene in anyproceeding wherever instituted that might lead to the appointment of a receiveror trustee, and to act as the receiver or trustee whenever the appointment isoffered.
(21) To enter intoagreements with any receiver or insurance regulator of any other state relatingto the rehabilitation, liquidation, conservation, or dissolution of an insurerdoing business in both states.
(22) To exercise allpowers now held or subsequently conferred upon receivers by laws of this Statenot inconsistent with the provisions of this Article.
(b) The enumeration inthis section of the powers and authority of the rehabilitator shall not beconstrued as a limitation upon him, nor shall it exclude in any manner hisright to do such other acts not specifically enumerated in this section orotherwise provided for, as may be necessary or appropriate for theaccomplishment of or in aid of the purpose of rehabilitation.
(c) The rehabilitatormay take such action as he considers necessary or appropriate to reform andrevitalize the insurer. He shall have all the powers of the directors,officers, and managers, whose authority shall be suspended, except to theextent they may be redelegated by the rehabilitator. He shall have full powerto direct, manage, hire, and discharge employees, subject to any contractrights they may have, and to deal with the property and business of theinsurer.
(d) If it appears tothe rehabilitator that there has been criminal or tortious conduct, or breachof any contractual or fiduciary obligation detrimental to the insurer by anyofficer, manager, agent, broker, employee or other person, he may pursue allavailable legal remedies on behalf of the insurer.
(e) If the rehabilitatordetermines that reorganization, consolidation, conversion, reinsurance, merger,runoff, or other transformation of the insurer is appropriate, he shall preparea plan to effect such changes. Upon application of the rehabilitator forapproval of the plan, and after such notice and hearings as the Court mayprescribe, the Court may either approve or disapprove the plan proposed, or maymodify it and approve it as modified. Any plan approved under this sectionshall be, in the opinion of the Court, fair and equitable to all partiesconcerned. If the plan is approved, the rehabilitator shall carry out the plan.In the case of a life insurer, the plan proposed may include the imposition ofliens upon the policies of the insurer, if all rights of shareholders are firstrelinquished. A plan for a life insurer may also propose imposition of amoratorium upon loan and cash surrender rights under policies, for such periodand to such an extent as may be necessary.
(f) The rehabilitatorshall have the power under G.S. 58‑30‑140 and G.S. 58‑30‑145to avoid fraudulent transfers. (1989, c. 452, s. 1; 2009‑172, s. 2.)
