The Arizona Revised Statutes have been updated to include the revised sections from the 54th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 55th Legislature, 1st Regular Session, which convenes in January 2021.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
6-833. Seizure of property of impaired escrow agent
A. When the superintendent ascertains by examination or otherwise that the assets or capital of any agent are impaired, or that the agent's affairs are in an unsafe condition, he may immediately take possession of all the property, business and assets of the agent which are located in this state and retain possession of them pending the further proceedings specified in this section. If the board of directors or any officer or person in charge of the offices of such agent refuses to permit the superintendent to take possession as prescribed by this subsection, the superintendent shall communicate such fact to the attorney general, whereupon the attorney general shall immediately institute such proceedings as may be necessary to place the superintendent in immediate possession of the property of the agent. The superintendent thereupon shall make or have made an inventory of the assets and known liabilities of the agent. The superintendent shall file one copy of the inventory in his office and one copy in the office of the clerk of the superior court of the county in which the principal office of the agent is located. The clerk of the superior court shall mail one copy to each stockholder of the agent at his last known address, if by the exercise of reasonable diligence it can be determined. The clerk of the court with whom the copy of the inventory is filed shall file it as any other case or proceeding pending in the court.
B. The officers, directors or stockholders of the agent may have sixty days from the date when the superintendent takes possession of the property, business and assets to make good any deficit which may exist or to remedy the unsafe condition of its affairs. At the expiration of this time, if the deficiency in assets or capital has not been made good or the unsafe condition remedied, the superintendent may apply to the court to be appointed receiver and proceed to liquidate the assets of the agent which are located in this state in the same manner as provided by law for liquidation of a private corporation in receivership. The inventory made by the superintendent and all claims filed by creditors shall be open at all reasonable times for inspection and any action taken by the receiver upon any of the claims shall be subject to the approval of the court before whom the cause is pending. The expenses of the receiver and compensation of counsel, as well as expenditures required in the liquidation proceedings, shall be fixed by the superintendent, subject to the approval of the court, and upon certification of the superintendent shall be paid out of the funds in his hands as such receiver.