(1) Whenever the commissioner determines that a solvent association is conducting its business in an unsafe or unsound manner, or in any fashion which threatens the financial integrity or sound operation of the association, the commissioner may serve a notice of charges on the association, requiring it to show why it should not be placed under supervisory control. Such notice of charges shall specify the grounds for supervisory control, and set the time and place for a hearing. A hearing before the commissioner pursuant to such notice shall be held within fifteen (15) days after issuance of the notice of charges.
(2) If, after the hearing provided above, the commissioner determines that supervisory control of the association is necessary to protect the association’s members, customers, stockholders or creditors, or the general public, the commissioner shall issue an order taking supervisory control of the association.
(3) If the order taking supervisory control becomes final, the commissioner may appoint an agent to supervise and monitor the operations of the association during the period of supervisory control. During the period of supervisory control, the association shall act in accordance with such instructions as may be given by the commissioner, directly or through his supervisory agent, and shall not fail to act, except when to do so would violate an outstanding cease and desist order.
(4) Within one hundred eighty (180) days of the date the order taking supervisory control becomes final, the commissioner shall issue an order approving a plan for the termination of supervisory control. The plan may provide for:
(a) The issuance by the association of capital stock;
(b) The appointment of one or more officers and/or directors;
(c) The reorganization, merger or consolidation of the association;
(d) The dissolution and liquidation of the association;
(e) Other such measures as determined by the commissioner.
The order approving the plan shall not take effect until thirty (30) days after issuance during which time period an appeal may be filed in accordance with the provisions of Section 81-12-205.
(5) All costs of this proceeding shall be paid by the association.
(6) For the purpose of this section, an order shall be deemed final if:
(a) No appeal is filed within the specific time allowed for the appeal; or
(b) All judicial appeals are exhausted.
(7) If an association is insolvent, the provisions of Section 81-12-183 shall apply.
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