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303.150 Appointment of receiver -- Dissolution of association.
(1)
(2)
If, upon examination of a burial association by the commissioner or any person
designated by him to make the examination, it appears that the liabilities of the
association exceed its resources, and it cannot in a reasonable time, not more
than three (3) months from the date of the original default, pay its accrued
indebtedness in full, he shall report the facts to the Attorney General. The
Attorney General shall, upon the commissioner's report, apply to the Judge of
the Franklin Circuit Court or to the Judge of the Circuit Court of the county
wherein the association is located for an order closing the business of the
association, and appointing a receiver for the distribution of its assets among
creditors. No final order shall be made until the association has had ten (10)
days' notice of the application and an opportunity to be heard. Upon hearing
the matter, the court may make any order which the interest of the association
and the public may require.
When any burial association discontinues business, or when for any cause a
dissolution is decreed, or when for sixty (60) days any judgment remains
unsatisfied, the Circuit Judge in any county in which the association has
transacted business may appoint a receiver to distribute its assets among its
policyholders for any persons having claims against the association. The
assets shall be applied first, on accrued or natural claims or policies; second,
on claims of any other kind or character; third, in payment to policyholders of all
dues paid in by them; and, if a balance remains after payment of the above
named claims, then that sum shall be returned to the burial association.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 907, effective July 15, 2010. -Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. secs. 199a-13, 199a-17.
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