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If, in consequence of an examination or a report made by an examiner, the Banking Board shall have reason to believe that the Bank is not in sound financial condition or that its affairs are conducted in such a manner as to endanger its funds or other assets, or if the Bank shall refuse to submit its books, documents and affairs for the inspection of any duly authorized examiner or if it shall fail to establish reserves as required by this chapter after thirty days' notice by the Banking Board, or if it should become insolvent in the judgment of the Banking Board the Banking Board shall report such facts to the Governor. The Governor may then direct the Banking Board to apply to the District Court for the District of St. Thomas and St. John, and if, after having heard the Bank, the Court deems that the facts alleged by the Banking Board are well-founded, then the Court shall proceed to appoint a receiver to suspend operations and settle the obligations of the Bank.
The receiver, upon his appointment, shall, under the direction of the District Court, take possession of the assets and liabilities, books (including the minutes book), records, papers and files of every description, belonging to the Bank, and shall collect all loans, fees and claims of the Bank, and shall see to the payment of its obligations and debts and of the necessary expenditures of receivership. He shall proceed to settle the affairs of the Bank as soon as possible, and to this end he may sell the personal and real property and other assets of the Bank, subject to the order of the District Court.