(215 ILCS 5/190) (from Ch. 73, par. 802)
Sec. 190.
Practice, hearing, order and appeal.
(1) The defendant company shall appear within 10 days after the service
of the summons as in this Article provided, exclusive of the day of
service. If, on the return day of the summons the defendant shall enter its
appearance in the action and apply for further time in which to answer, the
court shall, upon request of the defendant, extend the time for answering
for a period not to exceed 10 days from said return day. If the defendant
fails to answer on the return day or within the time granted, or fails to
appear, the court shall proceed to hear and determine the cause as herein
provided.
(2) The court, on the return day of the summons as originally fixed or
extended hereunder, shall set the cause for hearing on some day not
exceeding 20 days from the return day, or the extended return day as herein
provided.
(3) No motions or other pleadings, whether to dissolve, modify or
continue any injunction or otherwise, shall be filed by, or permitted on
behalf of the defendant prior to the filing of an answer to the complaint.
All pleadings shall be filed within the time herein provided.
(4) The pleadings and proceedings insofar as not otherwise regulated by
this Article, shall be as in other civil proceedings.
(5) Upon the hearing, at which the complaint and any exhibits filed
therewith shall be received as prima facie evidence of the facts therein
recited, the court shall enter an order either dismissing the complaint or
finding that sufficient cause exists for rehabilitation or liquidation and
directing the Director to take possession of the property, business and
affairs of such company and to rehabilitate or liquidate the same as the
case may be. The Director shall be responsible on his official bond for all
assets coming into his possession.
(6) An appeal, if taken from such order, shall be prosecuted on an expedited
basis as provided for in such cases by Illinois Supreme Court Rule 307.
(7) A claim for attorneys' fees incurred by the company in contesting its
conservation, rehabilitation, or liquidation may be filed in the proceedings,
and the claim may be allowed upon a showing that (i) the attorneys' fees
incurred are reasonable; (ii) the board of directors of the company incurred
such attorneys' fees based upon their best knowledge, information, and belief
formed after reasonable inquiry indicating such contention is well grounded in
fact and is warranted by existing law or a good faith argument of the
extension, modification, or reversal of existing law; and (iii) the contention
is not pursued for any improper purpose, including harassment, unnecessary
delay in the proceedings, or waste of estate
assets. Such claims, if allowed, shall be accorded a priority of distribution
under paragraph (g) of subsection (1) of Section 205. This
subsection (7)
applies to all liquidation, rehabilitation, or conservation proceedings that
are pending on the effective date of this amendatory Act of 1993 and to all
future liquidation, rehabilitation, or conservation proceedings.
(Source: P.A. 88-297; 88-670, eff. 12-2-94; 89-206, eff. 7-21-95.)
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