New Jersey § 5:12-130

§ 5:12-130.

a. Upon his appointment, the conservator shall become vested with the title of all

the property of the former or suspended licensee relating to the casino and the approved

hotel, subject to any and all valid liens, claims, and encumbrances. The conservator shall have the duty to conserve and preserve the assets so acquired

to the end that such assets shall continue to be operated on a sound and businesslike

basis. b. Subject to the direct supervision of the commission and pursuant to the written

instructions of the commission issued pursuant to section 55 of P.L.1991, c. 182 ( C. 5:12-130.1a ) and any other order the commission may deem appropriate, a conservator shall have

power to: (1) Take into his possession all the property of the former or suspended licensee

relating to the casino and the approved hotel, including its books, records and papers; (2) Institute and defend actions by or on behalf of the former or suspended licensee; (3) Settle or compromise with any debtor or creditor of the former or suspended licensee,

including any taxing authority; (4) Continue the business of the former or suspended licensee and to that end enter

into contracts, borrow money and pledge, mortgage or otherwise encumber the property

of the former or suspended licensee as security for the repayment of the conservator's

loans; provided, however, that such power shall be subject to any provisions and

restrictions in any existing credit documents; (5) Hire, fire and discipline employees; (6) Review all outstanding agreements to which the former or suspended licensee is

a party that fall within the purview of subsection b. of section 104 of P.L.1977,

c. 110 ( C. 5:12-104 ) and advise the commission as to which, if any, of such agreements should be the

subject of scrutiny, examination or investigation by the commission; and (7) Do all further acts as shall best fulfill the purposes of the Casino Control Act. c. Except during the pendency of a suspension or during the pendency of any appeal

from any action or event set forth in section 31 a. of this amendatory and supplementary

act 1 which precipitated the conservatorship or in instances in which the commission finds

that the interests of justice so require, the conservator, subject to the prior approval

of and in accordance with such terms and conditions as may be prescribed by the commission,

and after appropriate prior consultation with the former licensee as to the reasonableness

of such terms and conditions, shall endeavor to and be authorized to sell, assign,

convey or otherwise dispose of in bulk, subject to any and all valid liens, claims,

and encumbrances, all the property of a former licensee relating to the casino and

the approved hotel only upon prior written notice to all creditors and other parties

in interest and only to such persons who shall be eligible to apply for and shall

qualify as a casino licensee in accordance with the provisions of the Casino Control

Act. Prior to any such sale, the former licensee shall be granted, upon request, a summary

review by the commission of such proposed sale. d. The commission may direct that the conservator, for an indefinite period of time,

retain the property and continue the business of the former or suspended licensee

relating to the casino and the approved hotel. During such period of time or any period of operation by the conservator, he shall

pay when due, without in any way being personally liable, all secured obligations

and shall not be immune from foreclosure or other legal proceedings to collect the

secured debt, nor with respect thereto shall such conservator have any legal rights,

claims, or defenses other than those which would have been available to the former

or suspended licensee. e. A conservator shall cooperate fully with any investigation or inquiry conducted

by the commission or the division during the conservatorship or after the discontinuation

of the conservatorship. 1

N.J.S.A. § 5:12-130.1.