1610 LAWS OF MARYLAND. [Ch. 824]

The expense of such examination shall be paid by the associa-
tion examined upon statement furnished by the Insurance Com-
missioner, and the examination shall be made at least once in
three years. Whenever after examination the Insurance Com-
missioner is satisfied that any domestic association has failed
to comply with any provisions of this act, or is exceeding its
powers, or is not carrying out its contracts in good faith, or is
transacting business frandulently, or whenever any domestic
association, after the existence of one year or more, shall have
a membership of less than 400 (or shall determine to discon-
tinue business), the Insurance Commissioner may present the
facts relating thereto to the Attorney-General, who shall, if he
deem the circumstances warrant, commence an action in quo
warranto in a court of competent jurisdiction, and such court
shall thereupon notify the officers of such association of a hear-
ing; and if it shall then appear that such association should be
closed, said association shall be enjoined from carrying on any
further business; and some person shall be appointed receiver
of such association and shall proceed at once to take possession
of the books, papers, moneys and other assets of the association,
and shall forthwith, under the direction of the court, proceed
to dose the affairs of the association and to distribute its funds
to those entitled thereto. No such proceedings shall be com-
menced by the Attorney-General against any such association
until after notice has been duly served on the chief executive
officers of the association and a reasonable opportunity given
to it on a date to be named in said notice, to show cause why
such proceedings should not be commenced.

SEC. 26A. (Application for Receiver, Etc.) No applica-
tion for injunction against or proceedings for the dissolution of
or the appointment of a receiver for any such domestic associa-
tion or branch thereof shall be entertained by any court in this
State unless the same is made by the Attorney-General.

SEC. 27A. (Examination of Foreign Associations.) The
Insurance Commissioner, or any person whom he may appoint,
may examine any foreign association transacting or applying
for admission to transact business in this State. The said com-
missioner may employ assistants; and he, or any person he may
appoint, shall have free access to all the books, papers and docu-
ments that relate to the business of the association, and may
summon and qualify as witness under oath and examine it?
officers, agents and employees and other persons in relation to
the affairs, transactions and condition of the association. He
may, in his discretion, accept in lieu of such examination the
examination of the Insurance Department of the State, terri-