Sec. 6-2. Control by Commissioner.

272 words·~1 min read·/il/chapter-205/act-620/6-2

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

(a)If the Commissioner with respect to a corporate fiduciary shall find:

(1)Its capital is impaired or it is otherwise in an unsound condition; or

(2)Its business is being conducted in an unlawful manner, including, without

limitation, in violation of any provisions of this Act or of an order of the Commissioner, or in a fraudulent or unsafe manner; or

(3)It is unable to continue operations; or

(4)Its examination has been obstructed or impeded; the Commissioner may give notice to

the board of directors of the corporate fiduciary of his finding or findings. If the situation so found by the Commissioner shall not be corrected to his satisfaction within 60 days after receipt of such notice, the Commissioner at the termination of said 60 days may take possession and control of the corporate fiduciary, its assets, and assets held for beneficiaries of its fiduciary obligations, as in this Act provided for the purpose of examination, reorganization or liquidation through receivership.

(b)If, in addition to a finding as provided in subsection

(a)of this Section, the Commissioner shall be of the opinion and shall find that an emergency exists which may result in serious losses to the beneficiaries of fiduciary relationships with the corporate fiduciary, he may, in his discretion, without having given the notice provided for in subsection

(a)of this Section, and whether or not proceedings under subsection

(a)of this Section have been instituted or are then pending, forthwith take possession and control of the corporate fiduciary and its assets for the purpose of examination, reorganization or liquidation through receivership.