New Jersey § 17:12b-194

§ 17:12b-194.

If the capital of a State association becomes impaired, or if it suspends its ordinary

business for want of funds to carry it on, and the commissioner refuses for a period

of 30 days after demand is made upon him by a creditor or member, to take charge of

its operations and possession of its property, as hereinbefore provided, the Attorney

General, or any creditor or member of such State association, may institute an action

in the Superior Court for appropriate relief. The commissioner shall be made a party defendant to said action. The court may proceed in the action in a summary manner or otherwise and upon being

satisfied that the capital of the State association is impaired and that it cannot

continue or resume the operation of its business in a short time thereafter with safety

to its creditors and the public and advantage to its members, may enjoin the State

association, its officers and agents from exercising any of its privileges or any

of its franchises and from collecting or receiving any money due to it and from paying

out any of its money and from selling, assigning, transferring, or otherwise disposing

of any of its assets, except to a receiver appointed by the court, and make such other

orders and judgments as may be equitable and just. If the court appoints a receiver, he shall have the same powers and duties of a

receiver appointed under the provisions of chapter 14 of Title 14 of the Revised Statutes. 1 For the purposes of this section the words “creditor” or “member” shall be inclusive

of the Federal Savings and Loan Insurance Corporation, where such association is an

insured association. 1

N.J.S.A. § 14A:14-5 et seq.