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2007 Laws of Maryland
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Ch.3
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(11) HAS REASONABLE CAUSE TO KNOW, OR SHOULD HAVE KNOWN,
THAT THERE HAS BEEN:
(I) EMBEZZLEMENT OF FUNDS FROM THE PROVIDER;
(II) WRONGFUL SEQUESTRATION OR DIVERSION OF ASSETS OF THE
PROVIDER;
(III) FORGERY OR FRAUD THAT AFFECTS THE PROVIDER; OR
(IV) OTHER ILLEGAL CONDUCT IN, BY, OR WITH RESPECT TO THE
PROVIDER;
(12) IS CONTROLLED DIRECTLY OR INDIRECTLY BY A PERSON THAT THE
SECRETARY FINDS TO BE UNTRUSTWORTHY; OR
(13) HAS FAILED TO FILE A FINANCIAL REPORT REQUIRED BY LAW
WITHIN THE TIME ALLOWED BY LAW AND, AFTER WRITTEN DEMAND BY THE
SECRETARY, HAS FAILED TO GIVE AN IMMEDIATE AND ADEQUATE EXPLANATION.
(B) LIQUIDATION.
(1) IF THE APPOINTMENT OF THE SECRETARY AS RECEIVER IS NOT
THEN IN EFFECT, AND EVEN IF NO PREVIOUS ORDER HAS DIRECTED THE SECRETARY
TO REHABILITATE A PROVIDER, THE SECRETARY MAY APPLY TO THE COURT FOR AN
ORDER THAT APPOINTS THE SECRETARY AS RECEIVER AND THAT DIRECTS THE
SECRETARY TO LIQUIDATE THE PROVIDER IF THE PROVIDER:
(I) HAS NOT DONE BUSINESS FOR AT LEAST 1 YEAR;
(II) IS A PROVIDER DETERMINED TO HAVE A SIGNIFICANT RISK OF
FINANCIAL FAILURE UNDER PART VII OF THIS SUBTITLE AND HAS COMMENCED
VOLUNTARY LIQUIDATION OR DISSOLUTION, OR ATTEMPTS TO COMMENCE OR
PROSECUTE AN ACTION OR PROCEEDING TO LIQUIDATE ITS BUSINESS OR AFFAIRS,
TO DISSOLVE ITS CORPORATE CHARTER, OR TO PROCURE THE APPOINTMENT OF A
RECEIVER, TRUSTEE, CUSTODIAN, OR SEQUESTRATOR UNDER ANY LAW EXCEPT THIS
TITLE;
(III) IS DOING BUSINESS IN A FRAUDULENT MANNER; OR
(IV) IS IN A CONDITION IN WHICH FURTHER REHABILITATION
EFFORTS ON ANY GROUNDS SPECIFIED IN SUBSECTION (A) OF THIS SECTION APPEAR
TO BE USELESS.
(2) IF AT ANY TIME DURING A REHABILITATION PROCEEDING THE
SECRETARY DETERMINES THAT FURTHER EFFORTS TO REHABILITATE THE
PROVIDER WOULD BE USELESS, THE SECRETARY MAY APPLY TO THE COURT FOR AN
ORDER OF LIQUIDATION.
REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 70B, § 20G.
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- 510 -
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