Texas Insurance Code

§ 885.503 — ISSUANCE OF INJUNCTION AND APPOINTMENT OF RECEIVER

IN § 885.503Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 885. FRATERNAL BENEFIT SOCIETIES · Art. K. TERMINATION OF FRATERNAL BENEFIT SOCIETY

Statute text

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(a)If it appears on the trial of an action brought under Section 885.502(b) that the fraternal benefit society should be closed, the court shall:

(1)enjoin the society from engaging in further business; and

(2)appoint a receiver for the society.

(b)A receiver appointed under Subsection (a)(2) shall:

(1)immediately take possession of the books, papers, money, and other assets of the fraternal benefit society; and

(2)promptly, under the court's direction, proceed to close the society's affairs and distribute its funds to the persons entitled to those funds.

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.