Section 6-07.2-01 - Department taking possession - Procedure1. The commissioner may take possession of the business and property of an institution the commissioner supervises if it appears to the commissioner that any of the following conditions exist:a. The directors or officers of the institution, or the liquidators of the institution subject to a voluntary plan of liquidation, have neglected, failed, or refused to take action the commissioner deems necessary for the protection of the institution.b. The directors, officers, or liquidators of the institution have impeded or obstructed an examination. This may include concealment or refusal to submit books, papers, records, or affairs of the institution for inspection to any examiner or to any lawful agent of the appropriate federal financial institution regulatory agency or of the department.c. The business is being conducted in a fraudulent, illegal, or unsafe manner.d. The institution is conducting business in a way causing losses to depositors.e. The institution is operating in an unsafe or unsound condition.f. The capital of the institution is impaired such that the likely realizable value of the institution's assets is insufficient to pay and satisfy the claims of all depositors and all creditors.g. The institution is insolvent or in imminent danger of insolvency or has suspended ordinary business transactions of the institution due to insufficient funds.h. The institution has refused or been unable to pay deposits or obligations in accordance with the terms under which those deposits or obligations of the institution were incurred.i. Substantial dissipation of assets or earnings due to:(1) Any violation of any law or rule; or(2) An unsafe or unsound practice.j. The institution is unable to continue operations.k. The institution is in violation of any applicable state or federal regulation.l. Neglect or refusal to comply with the terms of a final order of the department,state banking board, state credit union board, or federal financial institution's regulatory agency essential to preserve the solvency of the institution. m. The institution has failed to pay the fees charged by the department under section 6-01-17 after due notice of the amount of the fee has been given.n. The institution's board of directors requests that the department take possession for the benefit of depositors, other creditors, shareholders, or other persons.o. The institution has been advised by the federal deposit insurance corporation of the federal deposit insurance corporation's intention to withdraw deposit insurance coverage.p. The institution has been advised by the national credit union association of the national credit union association's intention to withdraw share insurance coverage.q. The directors or officers of the bank, or the liquidators of a bank subject to a voluntary plan of liquidation, have assumed duties or performed acts in excess of those authorized by applicable statutes or regulations, by the bank's organizational documents or plan of liquidation, or without supplying the required bond.2. If it appears to the commissioner one or more of the conditions in this section exists as to any institution, the commissioner shall cause a notice to be served on the president or other executive officer in charge of the institution and, pursuant to such notice, take possession of the business, property, and records of the institution from the officer citing the reasons for such a demand from this section. The decision of the commissioner is final upon the president or other executive officer's receipt of the notice and the institution immediately shall surrender possession to the commissioner.Added by S.L. 2021, ch. 77 (SB 2102),§ 9, eff. 8/1/2021.