Guam § 15602 - Conduct of Delinquency Proceedings Against

§ 15602. Conduct of Delinquency Proceedings Against

Insurers Domiciled in Guam.

(a) Whenever under the laws of Guam a receiver is to be

appointed in delinquency proceedings for an insurer domiciled in

Guam, the court shall appoint a competent receiver who shall

furnish proper bond in an amount determined by said court. The

court shall direct the receiver forthwith to take possession of the

assets of the insurer and to administer the same under orders of

this court.

(b) The domiciliary receiver and his successors in office shall

be vested by operation of law with the title to all of the property,

contracts, and rights of action, and all of the books and records of

the insurer wherever located, as of the date of entry of the order

directing possession to be taken, and he shall have the right to

recover the same and reduce the same to possession; except that

ancillary receivers in reciprocal states shall have, as to assets

located in their respective states, the rights and powers which are

hereinafter prescribed for ancillary receivers appointed in Guam

as to assets located in Guam. The filing or recording of the order

directing possession to be taken, or a certified copy thereof, in the

office where instruments affecting title to property are required to

be filed or recorded shall impart the same notice as would be

imparted by a deed, bill of sale, or other evidence of title duly filed

or recorded. The domiciliary receiver shall be responsible on his

official bond for the proper administration of all assets coming

into his possession or control. The court may at any time require

an additional bond from him or his deputies if deemed desirable

for the protection of the assets.

(c) Upon taking possession of the assets of a delinquent

insurer, the domiciliary receiver shall, subject to the direction of

the court, immediately proceed to conduct the business of the

insurer or to take such steps as are authorized by the laws of Guam

for the purpose of liquidating, rehabilitating, reorganizing, or

conserving the affairs of the insurer. In connection with

delinquency proceedings, he may, with the approval of the court,

appoint one or more special deputy receivers to act for him and

may employ such counsel, clerks, and assistants as he deems

necessary. The compensation of the special deputies, counsel,

clerks, or assistants and all expenses of taking possession of the

delinquent insurer and of conducting the delinquency proceedings

shall be fixed by the receiver, subject to the approval of the court,

and shall be paid out of funds or assets of the insurer. Within the

limit of the duties imposed upon them, special deputies shall

possess all the powers given to, and, in the exercise of those

powers, shall be subject to all of the duties imposed upon the

receiver with respect to delinquency proceedings.