§ 1209. Recovery of assets.

412 words·~2 min read·/ny/business-corporation/receivership/1209·

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

(a)Whenever a receiver, by verified petition to the supreme court at

a special term held in the judicial district in which he was appointed

shall show that he has good reason to believe that any person has in his

possession or under his control, or has wrongfully concealed, withheld

or disposed of, any property of the corporation, or that any person can

testify concerning such facts, the court, with or without notice, shall

make an order requiring such person to appear before the court or a

referee, at a time and place designated, and submit to an examination

concerning such facts. In such order, or at any time thereafter, in its

discretion, the court may enjoin and restrain such person from disposing

of any property of the corporation in his possession or under his

control.

(b)In any examination under such order, the court may confer immunity

in accordance with the provisions of section 50.20 of the criminal

procedure law; provided that no immunity shall be conferred except upon

twenty-four hours prior written notice to the appropriate district

attorney having an official interest therein.

(c)A person so ordered to appear shall be entitled to the same fees

and mileage, to be paid at the time of serving the order, as are allowed

by law to witnesses subpoenaed to attend and testify in an action in the

supreme court, and shall be subject to the same penalties upon failure

to appear and testify in obedience to such order as are provided by law

in the case of witnesses who fail to obey a subpoena to appear and

testify in an action.

(d)A person appearing for examination in obedience to such order

shall be sworn, and shall be entitled to be represented on such

examination by counsel, and may be cross-examined, or may make a

voluntary statement in his own behalf concerning the subject of his

examination.

(e)The testimony taken under such order shall be signed and sworn to

by the person examined, and be filed in the office of the clerk of the

county where the action or proceeding is pending. If it shall appear

that any person is wrongfully concealing or withholding, or has in his

possession or under his control, any property of the corporation, on

notice to him, the court may make an order requiring him forthwith to

deliver it to the receiver, subject to the further order of the court.