Texas Insurance Code 885.503 – Issuance of Injunction and Appointment of Receiver
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(a) If it appears on the trial of an action brought under Section 885.502(b) that the fraternal benefit society should be closed, the court shall:
(1) enjoin the society from engaging in further business; and
(2) appoint a receiver for the society.
(b) A receiver appointed under Subsection (a)(2) shall:
(1) immediately take possession of the books, papers, money, and other assets of the fraternal benefit society; and
(2) promptly, under the court’s direction, proceed to close the society’s affairs and distribute its funds to the persons entitled to those funds.
Terms Used In Texas Insurance Code 885.503
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
(c) A court in this state may not hear an application for an injunction against or proceedings for the dissolution of or the appointment of a receiver for a domestic fraternal benefit society or lodge unless the attorney general makes the application or brings the proceedings.