House Journal: Page 1362: Monday, April 23, 2001
7 SUBCHAPTER 9
8 LIQUIDATION PROCEDURES
9 Sec. . NEW SECTION. 523A.901 LIQUIDATION.
10 1. GROUNDS FOR LIQUIDATION. The commissioner may
11 petition the district court for an order directing the
12 commissioner to liquidate an establishment on either
13 of the following grounds:
14 a. The establishment did not deposit funds
15 pursuant to section 523A.201 or withdrew funds in a
16 manner inconsistent with this chapter and is
17 insolvent.
18 b. The establishment did not deposit funds
19 pursuant to section 523A.201 or withdrew funds in a
20 manner inconsistent with this chapter and the
21 condition of the establishment is such that further
22 transaction of business would be hazardous,
23 financially or otherwise, to purchasers or the public.
24 2. LIQUIDATION ORDER.
25 a. An order to liquidate the business of an
26 establishment shall appoint the commissioner as
27 liquidator and shall direct the liquidator to
28 immediately take possession of the assets of the
29 establishment and to administer them under the general
30 supervision of the court. The liquidator is vested
31 with the title to the property, contracts, and rights
32 of action and the books and records of the
33 establishment ordered liquidated, wherever located, as
34 of the entry of the final order of liquidation. The
35 filing or recording of the order with the clerk of
36 court and the recorder of deeds of the county in which
37 its principal office or place of business is located,
38 or, in the case of real estate with the recorder of
39 deeds of the county where the property is located, is
40 notice as a deed, bill of sale, or other evidence of
41 title duly filed or recorded with the recorder of
42 deeds.
43 b. Upon issuance of an order, the rights and
44 liabilities of an establishment and of the
45 establishment's creditors, purchasers, owners, and
46 other persons interested in the establishment's estate
47 shall become fixed as of the date of the entry of the
48 order of liquidation, except as provided in subsection
49 14.
50 c. At the time of petitioning for an order of
Page 42
1 liquidation, or at any time after the time of
2 petitioning, the commissioner, after making
3 appropriate findings of an establishment's insolvency,
4 may petition the court for a declaration of
5 insolvency. After providing notice and hearing as it
© 2001 Cornell College and
League of Women Voters of Iowa
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