Colorado § 10-3-505 - Injunctions - orders.

§ 10-3-505. Injunctions - orders.

(1) Any receiver appointed in a proceeding under this part 5 may at any time apply for, and any court of general jurisdiction may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:

(a) The transaction of further business;

(b) The transfer of property;

(c) Interference with the receiver or with a proceeding under this part 5;

(d) Waste of the insurer's assets;

(e) Dissipation or transfer, or both, of bank accounts;

(f) The institution or further prosecution of any actions or proceedings;

(g) The obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets, or its policyholders;

(h) The levying of execution against the insurer, its assets, or its policyholders;

(i) The making of any sale or deed for nonpayment of taxes or assessments that would tend to lessen the value of the assets of the insurer;

(j) The withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or

(k) Any other threatened or contemplated action that might tend to lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders or the administration of any proceeding under this part 5.

(2) The receiver may, if necessary, apply to any court outside of the state for the relief described in subsection (1) of this section.

(3) Notwithstanding subsections (1) and (2) of this section and any other provision of this title, a federal home loan bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under a security agreement or under any pledge agreement, security agreement, collateral agreement, guarantee agreement, or other similar arrangement or credit enhancement relating to a security agreement to which the federal home loan bank is a party.

Source: L. 92: Entire part R&RE, p. 1434, § 14, effective July 1. L. 2014: (3) added, (HB 14-1215), ch. 57, p. 257, § 2, effective March 21.

ANNOTATION

A state court must recognize and give effect to a liquidation order issued by a court in a reciprocal state concerning a risk retention insurance group and its policyholders when one of those policyholders is sued in this state. The risk retention group was chartered in a state that meets the definition of a reciprocal state under § 10-3-502 (15) and is governed by the Federal Liability Risk Retention Act of 1986 (LRRA), 15 U.S.C. §§ 3901 to 3906. The LRRA gives a risk retention group's charter state primary authority to regulate the group's operations under the Uniform Insurers Liquidation Act and to issue orders binding a risk retention group and its policyholders in other states where the group conducts business. Garrou v. Shovelton, 2019 COA 15M, 439 P.3d 65.

Since the grant or denial of a preliminary injunction is a decision that lies within the sound discretion of the trial court, an appellate court reviewing the issuance of the injunction will usually do so with great deference to the conclusions reached by the lower court and will substitute its judgment for that of the trial court only if the trial court's ruling was manifestly unreasonable, arbitrary, or unfair. Herstam v. Bd. of Dirs., 895 P.2d 1131 (Colo. App. 1995).

Trial court did not exceed its authority in granting the receiver's motion for preliminary injunction since subsection (1) grants the court broad authority to enjoin numerous acts, including interference with the receiver and the institution or further prosecution of any actions or proceedings. Herstam v. Bd. of Dirs., 895 P.2d 1131 (Colo. App. 1995).