Section 725A.512 - Requirement to maintain liquidity, operating reserves and tangible net worth; taking possession of licensee's property for failure to meet requirement; appointment of receiver(1) A licensee shall maintain in accordance with generally accepted accounting principles sufficient liquidity, operating reserves and tangible net worth to permit the licensee to adequately meet all costs, expenses and other financial requirements related to servicing student loans in this state. The Director of the Department of Consumer and Business Services may specify by rule the standards a licensee must meet to comply with the requirements set forth in this subsection.(2)(a) If a licensee fails to meet the applicable standards for liquidity, operating reserves and tangible net worth set forth in subsection (1) of this section, the director may take and retain possession of the licensee's property, business and assets located in this state until the licensee returns, under the director's supervision or oversight, to compliance with the applicable standards.(b) In taking and retaining possession of the licensee's property, business and assets under paragraph (a) of this subsection, the director shall conduct an inventory appropriate for establishing a receivership for the licensee and file a copy of the inventory with:(A) The Department of Consumer and Business Services; and(B) Each of the licensee's controllers, at the last address for each controller that the director has in the director's records.(3) If a licensee refuses to permit the director to take and retain possession of the licensee's property, business and assets under subsection (2) of this section or if the director can show that the interests of the licensee's borrowers or creditors require the appointment of a receiver, the director may apply to the circuit court in the county in which the licensee's principal place of business in this state is located for an order to appoint a receiver to take and retain possession of, operate or liquidate the licensee's property, business and assets. The court may appoint the director as the receiver.(4) If, 60 days after the date on which the director took possession of a licensee's property, business and assets under subsection (2) of this section, the licensee has not returned to compliance with the applicable standards described in subsection (1) of this section, the director shall liquidate the licensee's property, business and assets and revoke the licensee's license to service student loans in this state. If the director is not the receiver for the licensee's property, business and assets, the director shall apply to the circuit court in the county in which the licensee's principal place of business in this state is located for an order to appoint the director or another person as receiver.Added by 2021 Ch. 651,§ 5, eff. 7/27/2021, op. 7/1/2022.