N.Y. Defense Emergency Act 1951 784/51 § 99: Powers of the superintendent

§ 99. Powers of the superintendent. 1. If at any time during an acute

emergency, the number of directors or acting directors of a domestic

organization who are capable of acting shall be less than three, the

superintendent shall have the power to designate additional acting

directors in such number as will bring to three the number of directors

and acting directors who are capable of acting.

2. To resolve controversy as to the power of any group of persons

purporting to act as an emergency board of directors so to act, the

superintendent shall, upon a determination that such action will tend to

promote the safe and sound and orderly conduct of the business of any

domestic organization, have power to issue orders declaring that any

such group shall or shall not have the powers of an emergency board of

directors, or confirming, modifying or vacating in whole or in part any

action taken or purportedly taken by any such group or removing any

acting director.

3. (a) At any time after an attack, upon his determination that such

action will tend to promote certainty as to the powers of organizations

or individuals pursuant to this article or that such action is desirable

to enable organizations to take preparatory precautions prior to the

occurrence of an acute emergency, the superintendent shall have power to

declare that any provision of this article which he may specify shall be

operative with respect to any domestic organization or to the New York

business of any other organization which he may designate. Upon such

declaration such organization and its directors, officers, acting

directors and acting officers shall have all powers conferred by such

provisions of this article. The failure of the superintendent so to

declare shall not be deemed to limit the powers of any organization or

its directors, officers, acting directors or acting officers where an

acute emergency exists in fact.

(b) At any time after the commencement of an acute emergency or after

the superintendent shall have declared any provision of this article

operative pursuant to paragraph (a) of this subdivision, upon his

determination that an organization is able, in whole or in part, to

carry on its business in compliance with its charter and the laws other

than this article, the superintendent shall have power to declare that

any provision of this article which he may specify shall be inoperative

with respect to any domestic organization or to the New York business of

any other organization which he may designate. Upon such declaration,

such organization shall be governed by its charter and the provisions of

law other than this article, except insofar as other provisions of this

article remain operative.

4. Upon his determination that, as a result of an acute emergency, the

business and affairs of an organization cannot otherwise be conducted in

a safe and sound manner, the superintendent may forthwith take

possession of the business and property of the organization within this

state or, if a domestic organization its business and property wherever

situated. The provisions of sections five hundred seventeen through five

hundred twenty-four, inclusive, of the insurance law shall be applicable

in any case in which the superintendent takes possession of an

organization pursuant to this subdivision as though the organization

were an insurer which the superintendent had taken possession pursuant

to sections five hundred twelve and five hundred sixteen of such law,

except that no such provision shall be applicable which the

superintendent shall have declared inapplicable pursuant to this

subdivision. The superintendent shall have power to declare inapplicable

any such provision upon his determination that the same is inappropriate

or unnecessary to protect the interests of the public or the

stockholders or creditors of the organization, in view of the acute

emergency and the nature of the organization.

5. The powers given the superintendent by subdivisions two and four of

this section shall be exercised by him only in the event that there is

no court of competent jurisdiction available to which an application can

be made for an order permitting him to exercise such powers with respect

to a particular organization; provided, further, that the powers

conferred by subdivision four shall not be exercised in the case of an

organization which is not insolvent within the meaning of section

ninety-three of the insurance law, unless the superintendent finds that

such organization lacks personnel able to manage its business in the

interests of the public, its stockholders and policyholders.

6. The superintendent shall have power to issue general and specific

regulations, directives and orders consistent with and in furtherance of

the purposes of this article.