48.77 Procedure upon violation of law or insolvency.  

    The directors and managing officers of any such 
 corporation, when satisfied that it is, or is about to become, 
 insolvent, shall immediately report that fact to the 
 commissioner; and when the commissioner shall be satisfied from 
 that report, or from any examination made, that it is conducting 
 its business in an unlawful or unsafe manner, or that it is 
 insolvent, the commissioner may at once take possession of its 
 books, records, and assets, which shall not be subject to any 
 levy or attachment, nor shall any application for a receiver be 
 entertained by any court, during such reasonable time as may be 
 necessary for further examination.  If, upon this examination, 
 it shall appear to the commissioner that its business is being 
 conducted in a safe and lawful manner and that all creditors, 
 except those represented by stock, can be paid in full from the 
 assets, the commissioner may relinquish possession of its assets 
 to its directors and officers; otherwise the commissioner shall 
 apply to a court for the appointment of a receiver, who shall 
 take possession of all its books, records, and assets, and close 
 up its affairs under the direction of the court; provided, that 
 if at any stage of the proceedings the directors or stockholders 
 shall satisfy the court that the corporation is able to pay all 
 creditors, other than themselves, if the showing is approved, 
 after investigation by the commissioner, the court may order the 
 return of the assets to the company for liquidation or such 
 other course as the stockholders, in compliance with law, may 
 determine; and in such case the receiver shall be discharged.  

    HIST: (7742) RL s 3047; 1986 c 444