§432:2-606  Injunction, liquidation,
receivership of domestic society.  (a)  When the commissioner upon
investigation finds that a domestic society:



(1)  Has exceeded its powers;



(2)  Has failed to comply with any provision of this
article;



(3)  Is not fulfilling its contracts in good faith;



(4)  Has a membership of less than four hundred after
an existence of one year or more; or



(5)  Is conducting business fraudulently or in a
manner hazardous to its members, creditors, the public or the business;



the commissioner shall notify the society of such
deficiency or deficiencies and state in writing the reasons for the
commissioner's dissatisfaction.  The commissioner shall at once issue a written
notice to the society requiring that the deficiency or deficiencies which exist
are corrected.  After such notice the society shall have a thirty-day period in
which to comply with the commissioner's request for correction.  If the society
fails to comply, the commissioner shall notify the society of such findings of
noncompliance and require the society to show cause on a date named why it
should not be enjoined from carrying on any business until the violation
complained of shall have been corrected, or why an action in quo warranto
should not be commenced against the society.



(b)  If on such date the society does not
present good and sufficient reasons why it should not be so enjoined or why
such action should not be commenced, the commissioner may present the facts
relating thereto to the attorney general who shall, if the attorney general
deems the circumstances warrant, commence an action to enjoin the society from
transacting business or in quo warranto.



(c)  The court shall thereupon notify the
officers of the society of a hearing.  If after a full hearing it appears that
the society should be so enjoined or liquidated or a receiver appointed, the
court shall enter the necessary order.  No society so enjoined shall have the
authority to do business until:



(1)  The commissioner finds that the violation
complained of has been corrected;



(2)  The costs of such action shall have been paid by
the society if the court finds that the society was in default as charged;



(3)  The court has dissolved its injunction; and



(4)  The commissioner has reinstated the certificate
of authority.



(d)  If the court orders the society
liquidated, it shall be enjoined from carrying on any further business,
whereupon the receiver of the society shall proceed at once to take possession
of the books, papers, money and other assets of the society and, under the
direction of the court, proceed forthwith to close the affairs of the society
and to distribute its funds to those entitled thereto.



(e)  No action under this section shall be
recognized in any court of this State unless brought by the attorney general
upon request of the commissioner.  Whenever a receiver is to be appointed for a
domestic society, the court shall appoint the commissioner as such receiver.



(f)  The provisions of this section relating to
hearing by the commissioner, action by the attorney general at the request of
the commissioner, hearing by the court, injunction and receivership shall be
applicable to a society which shall voluntarily determine to discontinue
business. [L 1987, c 347, pt of §2]