(805 ILCS 35/28) (from Ch. 32, par. 1028)
Sec. 28.
(1) The Director may forthwith direct the suspension of operation
and take possession and control of any Development Credit Corporation
whenever he or she finds that such Development Credit Corporation:
(a) is conducting its business contrary to any applicable law or its
Article of Incorporation; or
(b) is conducting its business in an unsafe manner as a result of
irregularities found or reported in its account; or
(c) has failed to give an adequate accounting or to take the necessary
steps to render an accounting; or
(d) has failed or refused to furnish the Director with reports lawfully
required to be furnished to the Director; or
(e) cannot with safety to its members and shareholders continue its
business expediently; or
(f) is insolvent or in an unsafe condition to transact its business; or
(g) has suspended payment of its obligations; or
(h) has impaired its capital; or
(i) has through its officers refused to submit its books, papers or
records of affairs for inspection by any examiner or has otherwise refused
to be lawfully examined.
(2) Such suspension, possession and control by the Director shall
continue until rescinded and terminated by the Director, however, such
suspension, possession and control shall be rescinded and terminated once
the cause for such suspension, possession and control has abated or has
been corrected.
(3) Upon the suspension of operation of any Development Credit
Corporation by the Director, the officers and directors shall, as soon
thereafter as reasonably possible, deliver possession of all of the assets
of such Development Credit Corporation to the Director or the Director's lawful
representative. Thereafter the Director shall, upon examination, reasonably
determine whether or not the cause for the suspension can be abated or
corrected either by re-organization or otherwise without liquidating such
Development Credit Corporation.
(4) If the Director reasonably determines that the cause for any such
suspension cannot immediately be abated or corrected, he or she may permit the
Development Credit Corporation so suspended to operate under his or her direction
and control until such cause for such suspension is abated or corrected, or
he or she may cause the Development Credit Corporation to be liquidated through a
receivership. If the Director determines that the same shall be liquidated
through receivership, he or she shall appoint a receiver and require of him such
bond and security as he or she deems proper. Such receiver, under the direction of
the Director, shall take possession of, and for the purpose of the
receivership, title to the books, records and assets of every description
of such Development Credit Corporation, and shall proceed to collect all
debts, claims and obligations due or belonging to it and, upon the order of
the circuit court of the county in which the Development Credit Corporation is
located, may sell or compound all bad or doubtful debts and, on a like
order, may sell the real and personal property of such Development Credit
Corporation on such terms as the court shall direct.
(5) The receiver shall file with the Director a copy of each report
which he or she makes to the court together with such other reports and records as
the Director may require.
(6) The receiver shall have authority to sue and defend in his or her own name
with respect to the affairs, assets, claims, debts, and choses in action of
such Development Credit Corporation.
(7) The receiver may petition the Circuit Court of the County in which
such Development Credit Corporation is located for
authority to borrow money and to pledge the assets of such Development
Credit Corporation as security therefor. Upon the filing of such petition,
such Court shall set a date for the hearing of such petition and
shall prescribe the form and manner of the notice to be given the officers,
members, creditors or other persons interested in such Development Credit
Corporation. Upon such hearing any officer, member, creditor or person
interested shall have the right to be heard. If the court by order grants
such authority then such receiver may borrow money and issue evidences of
indebtedness therefor and may secure the payment of such loan by the
mortgage, pledge, transfer in trust or hypothecation of any or all of the
property and assets of such Development Credit Corporation whether real,
personal or mixed, superior to any charge thereon for the expenses of
liquidation. Such loan may be obtained in such amount upon such terms and
conditions and with such provisions for repayment as may be deemed
necessary and expedient and may be obtained for the purpose of facilitating
liquidation, protecting or preserving the assets, expediting the making of
distribution to members and other creditors, providing for the expense of
administration and liquidation, aiding in the reopening or reorganization
of such Development Credit Corporation or its merger or consolidation with
another Development Credit Corporation, or in the sale of its assets. Such
receiver shall be under no personal obligation to repay any such loan and
shall have authority to take any and all action necessary or proper to
consummate such loan and to provide for the repayment thereof, and may,
when required, give bond for the faithful performance of all undertakings
in connection therewith. Prior to petitioning the court for authority to
make any such loan, such receiver may make application for or negotiate any
such loan subject to obtaining an order of the court approving the same.
(8) The Director shall, upon appointing a receiver, cause notice to be
given by advertisement in such newspaper as he or she may direct, once each week
for 12 consecutive weeks, calling on all persons who may have claims
against such Development Credit Corporation to present the same to such
receiver and to make legal proof thereof.
(9) Such receiver shall deposit daily all moneys collected by him or her in any
State or National bank selected by the Director who shall require of such
depository satisfactory securities or satisfactory surety bond for the
safekeeping and prompt payment of the money so deposited. No interest upon
money so deposited shall be required of such depository.
(10) From time to time the Director shall make a ratable dividend of the
moneys collected by such receiver on all such claims as may have been
proved to his or her satisfaction or adjudicated in a court of competent
jurisdiction, and, as the proceeds of the assets of such Development Credit
Corporation are collected, shall make further dividends on all claims
previously proven or adjudicated.
(11) The receiver of such Development Credit Corporation shall, after
the expiration of the 12 weeks, file with the Director and with the clerk
of such court as may have charge of the liquidation, a correct list of all
creditors of the Development Credit Corporation, as shown by its books, who
have not presented their claims and the amounts of their respective claims
after allowing all just credits, deductions and set-offs as shown by the
books of the Development Credit Corporation. Such claims so filed shall be
deemed proven, unless objections are filed thereto by some party or parties
interested therein within such times as shall be fixed by the Director or
by such Court as may have charge of the liquidation.
(12) All unclaimed dividends shall be deposited with the Director to be
paid out by him or her when proper claims therefor are presented to the Director
and the Director shall pay the same out of such sum or funds so deposited
with him or her. After one year from the final dissolution of the Development
Credit Corporation, the Director shall make a pro rata distribution thereof
to those claimants who have accepted dividends until such claim or claims
are paid in full, and if any of the moneys shall then remain in his or
her custody,
the Director shall distribute the same pro rata to the shareholders. The
Director shall deduct from the funds so deposited with him the expenses of
distributing the same.
(13) At the close of the receivership, it shall be the duty of the
receiver to turn over to the Director all books of account and ledgers of
such Development Credit Corporation for preservation. All records of such
receivership now and hereafter received by the Director shall be held by
him for the period of 2 years after the close of the receivership and at
the termination of the 2 years may then be destroyed.
(14) Whenever any such development Credit Corporation against which
proceedings have been instituted, or for which a receiver has been
appointed as hereinabove set out, on account of any or
all the allegations heretofore
specified, denies such grounds, it may at any time within 10 days, apply to
the Circuit Court of Sangamon County, Illinois, to enjoin further
proceedings in the premises; and such court after citing the Director to
show cause why further proceedings should not be enjoined, and after the
decision of the court or findings of a jury that such grounds do not exist,
shall enter an order enjoining the Director and any receiver acting under
his or her direction, from all further proceedings on account of such alleged
grounds.
(15) All expenses of such receivership, including reasonable receiver's
and attorney's fees, approved by the Director, shall be paid
out of the assets of such Development Credit Corporation; and all expenses
of any preliminary or other examinations into the condition of any such
Development Credit Corporation or receivership, and all expenses incident
and in connection with the possession and control of any Development Credit
Corporation office, furniture and fixtures, books, records and assets of
every description of such Development Credit Corporation by the Director
for the purpose of reorganization or liquidation through receivership,
shall be paid out of the assets of such Development Credit Corporation.
(Source: P.A. 83-345.)
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