Maine § 1495-I. - Insolvency and liquidation
Full text of Maine Maine Revised Statutes § 1495-I. — Insolvency and liquidation, with citation guidance and answers to common questions.
§ 1495-I.. Insolvency and liquidation
1. Voluntary liquidation. A payroll processor who voluntarily ceases to do business in the State is subject to the following provisions.
A. Prior to voluntarily ceasing business as a payroll processor, a payroll processor shall:
(2) Notify all employers in writing of the proposed termination at least 30 days prior to its effective date;
(3) Provide all employers with detailed final accountings of all accounts;
(4) Remit all money held by the payroll processor to each respective employer or the appropriate taxing authority; and
(5) Return its license to the administrator for cancellation. [PL 2003, c. 668, §6 (NEW); PL 2003, c. 668, §12 (AFF).]
B. When terminating a business, a payroll processor whose contract with an employer does not authorize the processor to assign the account to another processor may not transfer the account to another processor without first securing the written permission of the employer. [PL 2003, c. 668, §6 (NEW); PL 2003, c. 668, §12 (AFF).]
2. Involuntary liquidation. A payroll processor who is no longer eligible to do business in this State is subject to the following provisions.
A. If, upon examination of a payroll processor, the administrator is of the opinion that the payroll processor is insolvent or can no longer obtain a surety bond or when the license of a payroll processor has expired or terminated for any reason, the administrator may appoint a receiver who shall proceed to close the payroll processor. The person appointed by the administrator as a receiver may be the administrator, a deputy or such other person as the administrator may choose, and a certified copy of the order making such appointment is evidence of the appointment. A receiver has the power and authority provided in this chapter and such other powers and authority as may be expressed in the order of the administrator. If the administrator or a deputy is appointed receiver, no additional compensation need be paid, but any reasonable and necessary expenses as a receiver must be paid by the processor. If another person is appointed, then the compensation of the receiver must be paid from the assets of that processor. [PL 2003, c. 668, §6 (NEW); PL 2003, c. 668, §12 (AFF).]
B. Upon taking possession of the property and business of a payroll processor under this section, the receiver:
(2) Shall collect all debts due and claims belonging to the payroll processor and may sell or compound all bad or doubtful debts;
(3) May sell, for cash or other consideration or as provided by law, all or any part of the real and personal property of the payroll processor;
(4) May take, in the name of the administrator, a mortgage on the real property from a bona fide purchaser to secure the whole or part of the purchase price; and
(5) May borrow money and issue evidence of indebtedness therefor. To secure the repayment of this money, the receiver may mortgage, pledge, transfer in trust or hypothecate any of the property of the payroll processor, whether real, personal or mixed, superior to any charge for expenses of liquidation. [PL 2003, c. 668, §6 (NEW); PL 2003, c. 668, §12 (AFF).]
C. The assets of the payroll processor in liquidation, exclusive of any bond proceeds, must be disbursed in the following order:
(2) Second, payment of payroll, tax and unemployment insurance premium funds held by the payroll processor;
(3) Third, payment of all debts, claims and obligations owed by the payroll processor;
(4) Fourth, the payment of claims otherwise proper that were not filed within the prescribed time; and
(5) Fifth, the payment of any obligation expressly subordinated to claims entitled to the priority established by subparagraphs (1) to (3). [PL 2003, c. 668, §6 (NEW); PL 2003, c. 668, §12 (AFF).]
3. Judicial review. A payroll processor closed by action of the administrator pursuant to this chapter may bring an action challenging the administrator's appointment of receiver in Superior Court of Kennebec County or of the county in which the processor transacts business within 10 days after the administrator appoints a receiver. The court shall uphold the administrator's finding that a payroll processor is insolvent or that its condition is such as to render its further proceedings hazardous to the public or to those having funds in its custody and shall uphold the appointment of a receiver unless the court finds that the administrator's action was arbitrary and capricious.
Source: official Maine text · Last verified 2026-08-27
Frequently Asked Questions About Maine § 1495-I.
What does Maine Revised Statutes § 1495-I. cover?
Section 1495-I. ("Insolvency and liquidation") is part of the Maine Revised Statutes, the codified statutory law of Maine. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maine § 1495-I.?
A common citation format is "Maine Revised Statutes § 1495-I." (Maine). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maine law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maine official source linked on this page or consult a licensed Maine attorney.
How does Maine § 1495-I. apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maine can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maine.