20-614. Injunctions

395 words·~2 min read·/az/title-20/20-614

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. On application by the director for an order to show cause, or at any time thereafter, the court may without notice issue an injunction restraining the insurer, its officers, directors, stockholders, members, subscribers and agents and all other persons from the transaction of its business or the waste or disposition of its property until further order of the court.

B. The court may at any time during a proceeding under this article issue other injunctions or orders as is deemed necessary to prevent any of the following:

1. Interference with the receiver or the proceeding.

2. The waste of the assets of the insurer.

3. The commencement or prosecution of any actions.

4. The obtaining of preferences, judgments, attachments or other liens.

5. The making of any levy against the insurer or against its assets or any part of its assets.

C. An injunction issued pursuant to subsection A or B of this section does not operate to enjoin or prohibit any right to cause the netting, liquidation, setoff, termination, acceleration or close out of obligations or enforcement of any security agreement or arrangement or other credit enhancement or guarantee or reimbursement obligation under or in connection with any netting agreement or qualified financial contract as provided in section 20-637.

D. The court may also prescribe exclusive conditions and procedures for access to information from the receiver including procedures for the inspection or copying of the records of the insurer or receiver. The court may not place conditions on a reinsurer's contract rights to access to claim files other than the payment of reasonable charges for locating and copying the records.

E. Notwithstanding any other law, a bond is not required of the director or receiver as a prerequisite for the issuance of any injunction or restraining order pursuant to this section or for the filing of any appeal or other action for which a bond may be required.

F. Notwithstanding any other provision of this chapter, a federal home loan bank may not be stayed, enjoined or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer member under any federal home loan bank security agreement or any pledge, security, collateral or guarantee agreement or other similar arrangement or credit enhancement relating to a security agreement to which that federal home loan bank is a party.