2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 512B - FRATERNAL BENEFIT SOCIETIES
512B.28 - INJUNCTION -- LIQUIDATION -- RECEIVERSHIP OF DOMESTIC SOCIETY.

        512B.28  INJUNCTION -- LIQUIDATION -- RECEIVERSHIP OF
      DOMESTIC SOCIETY.
         1.  When the commissioner upon investigation finds that a domestic
      society has exceeded its powers; failed to comply with a provision of
      this chapter; failed to fulfill a contract in good faith; failed to
      maintain a membership of not less than four hundred after an
      existence of one year or more; or conducted business fraudulently or
      in a manner hazardous to its members, creditors, the public, or the
      business, the commissioner shall notify the society of the deficiency
      or deficiencies and state in writing the reasons for the
      commissioner's dissatisfaction.  The commissioner shall at once issue
      a written notice to the society requiring that the deficiency or
      deficiencies which exist be corrected.  After the notice of
      deficiency the society has a thirty-day period in which to comply
      with the commissioner's request for correction, and if the society
      fails to comply the commissioner shall notify the society of a
      finding of noncompliance and require the society to show cause on or
      before a date named why it should not be enjoined from carrying on
      any business until the violation complained of has been corrected, or
      why an action seeking other legal or equitable relief should not be
      commenced against the society.
         2.  If by the date named to show cause the society does not
      present good and sufficient reasons why it should not be so enjoined
      or why an action should not be commenced, the commissioner may
      present the facts relating to the society to the attorney general who
      shall commence an action to enjoin the society from transacting
      business or other action requested by the commissioner.
         3.  The court in which an action is commenced pursuant to
      subsection 2 shall notify the officers of the society of a hearing.
      If after a full hearing it appears that the society should be
      enjoined or liquidated or a receiver appointed, or other legal or
      equitable relief awarded, the court shall enter the necessary order.
      A society so enjoined does not have the authority to do business
      unless and until all of the following conditions are satisfied:
         a.  The commissioner finds that the violation complained of
      has been corrected.
         b.  The costs of the action, including reasonable attorney
      fees for the state's attorneys and expenses related to the case in
      which the injunction was entered, have been paid by the society if
      the court finds that the society was in default as alleged.
         c.  The court has dissolved its injunction.
         d.  The commissioner has reinstated the certificate of
      authority of the society.
         4.  If the court orders the society liquidated, it shall be
      enjoined from carrying on any further business, and the receiver of
      the society shall proceed at once to take possession of the books,
      papers, money, and other assets of the society and, under the
      direction of the court, proceed to close the affairs of the society
      and to distribute its funds to those entitled to them.
         5.  If a receiver is to be appointed for a domestic society, the
      court shall appoint the commissioner of insurance as the receiver.
         6.  The provisions of this section relating to hearing by the
      commissioner, action by the attorney general at the request of the
      commissioner, hearing by the court, injunction, and receivership are
      applicable to a society which voluntarily determines to discontinue
      business.  

         90 Acts, ch 1148, §29