17:30C-4. Commencement of delinquency proceeding
208 words·~1 min read·
/nj/title-17/chapter-30c/17-30c-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
4. a. The commissioner shall commence any such proceeding by an application to the court or to any judge thereof, for an order directing the insurer to show cause why the commissioner should not have the relief prayed for.
b. The application shall be by verified petition, setting forth the ground or grounds for the proceeding and the relief demanded.
c. If the court is satisfied from reading the commissioner's petition that the facts therein alleged, if established, would constitute grounds for a delinquency proceeding under this act, it shall issue an order to show cause as referred to in a. above.
d. On the return of the order to show cause, the court shall either deny the application or grant the application together with such other relief as the nature of the case and the interests of the policyholders, creditors, stockholders, members, subscribers or the public may require.
e. Notwithstanding any provision of law to the contrary, the commencement of a delinquency proceeding with respect to an insurer-member shall not operate as a stay, injunction, or prohibition of exercise by a federal home loan bank of its rights regarding collateral pledged by that insurer-member.
L.1975, c. 113, s. 4, eff. June 3, 1975; amended 2023, c.172, s.2.