§ 27-64-8. Rehabilitation and liquidation of protected cells.
(a) If in relation to one or more protected cells of a protected cell company, the commissioner
is satisfied that the protected cell assets attributable to that protected cell are
insufficient to discharge the claims of creditors or other claimants with respect
to that protected cell, the commissioner may place under administrative supervision
or apply for an order of conservation, rehabilitation or liquidation with respect
to that protected cell. In carrying out the administrative supervision, conservation,
rehabilitation, or liquidation of a protected cell, the receiver shall follow generally
the provisions of chapters 1, 12.2, and 14.1 — 14.4 of this title, as applicable,
and any rules and regulations promulgated under those chapters, except that at all
times the receiver shall be bound to deal with the protected cell assets and protected
cell liabilities in accordance with the requirements of this chapter.
(b) An order of rehabilitation or conservation may not be requested or made with respect
to any protected cell of a protected cell company if a receiver has been appointed
to act in respect of a protected cell company and the commissioner may still apply
for an order of liquidation with respect to that protected cell. Any prior order of
rehabilitation or conservation with respect to a protected cell shall cease to be
of effect upon an order of rehabilitation with respect to the protected cell company,
without prejudice to the prior acts of the receiver or its agents.
(c) An order of rehabilitation, conservation or liquidation may not be requested or made
with respect to any protected cell of a protected cell company if a liquidator has
been appointed to act in respect of the protected cell company. Any prior order of
rehabilitation, conservation or liquidation with respect to a protected cell shall
cease to be of effect upon an order of liquidation with respect to the protected cell
company, without prejudice to the prior acts of the receiver or its agent.
(d) During any period of conservation or rehabilitation, or upon an order of liquidation,
with respect to a protected cell, the directors of the protected cell company shall
cease in respect of the business of, and the protected cell assets and protected cell
liabilities attributable to, the protected cell, which is the subject of the rehabilitation,
conservation or liquidation.
(e) In the event that a petition for an order of rehabilitation, conservation or liquidation
of a protected cell is challenged, prior to the entry or denial of the order, the
directors of the protected cell company shall cease in respect of the business of,
and the protected cell assets and protected cell liabilities attributable to, the
protected cell which is the subject of the petition and the commissioner shall carry
out the business of the protected cell until the order has been entered or denied.
In the event the order is denied, the commissioner shall immediately return possession
and control of the protected cell to the directors of the protected cell company.
(f) No resolution for the voluntary winding up of a protected cell company with any protected
cell which has been placed under administrative supervision or is the subject of an
order of rehabilitation, conservation or liquidation shall be effective without permission
of the commissioner and, in the case of rehabilitation, conservation or liquidation,
the court supervising the rehabilitation, conservation or liquidation.