8-3027. Failure, unsafe or unsound condition, or endangerment of customers' interests; director; conduct liquidation or appoint receiver.

242 words·~1 min read·/ne/chapter-8/8-3027

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

(1)If the director finds that a digital asset depository has failed, is operating in an unsafe or unsound condition, or is endangering the interests of customers, and the failure, unsafe or unsound condition, or endangerment has not been remedied within the time prescribed under section 8-1,117 or as directed by order of the director issued pursuant to section 8-1,136 , 8-2504 , or 8-2740 , the director shall conduct a liquidation or appoint a receiver as provided by sections 8-198 , 8-1,100 , and 8-1,102 .

(2)For purposes of this section:

(a)Failed or failure means, consistent with an order or rules and regulations of the director, a circumstance when a digital asset depository has not:

(i)Complied with the requirements of section 8-3009 ;

(ii)Maintained capital and surplus as required by section 8-3013 ; or

(iii)Paid, in the manner commonly accepted by business practices, its legal obligations to customers on demand or to discharge any promissory notes, or other indebtedness when due; and

(b)Unsafe or unsound condition means, consistent with an order or rules and regulations of the director, a circumstance relating to a digital asset depository which is likely to:

(i)Cause the failure of the digital asset depository;

(ii)Cause a substantial dissipation of assets or earnings;

(iii)Substantially disrupt the services provided by the digital asset depository to customers; or

(iv)Otherwise substantially prejudice the interests of customers of the digital asset depository.