Section 1209. Recovery of assets  


Latest version.
  • (a) Whenever  a receiver, by verified petition to the supreme court at
      a special term held in the judicial district in which he  was  appointed
      shall show that he has good reason to believe that any person has in his
      possession  or  under his control, or has wrongfully concealed, withheld
      or disposed of, any property of the corporation, or that any person  can
      testify  concerning such facts, the court, with or without notice, shall
      make an order requiring such person to appear  before  the  court  or  a
      referee,  at  a  time and place designated, and submit to an examination
      concerning such facts. In such order, or at any time thereafter, in  its
      discretion, the court may enjoin and restrain such person from disposing
      of  any  property  of  the  corporation  in  his possession or under his
      control.
        (b) In any examination under such order, the court may confer immunity
      in accordance with the provisions  of  section  50.20  of  the  criminal
      procedure  law; provided that no immunity shall be conferred except upon
      twenty-four hours prior  written  notice  to  the  appropriate  district
      attorney having an official interest therein.
        (c) A  person  so ordered to appear shall be entitled to the same fees
      and mileage, to be paid at the time of serving the order, as are allowed
      by law to witnesses subpoenaed to attend and testify in an action in the
      supreme court, and shall be subject to the same penalties  upon  failure
      to  appear and testify in obedience to such order as are provided by law
      in the case of witnesses who fail to  obey  a  subpoena  to  appear  and
      testify in an action.
        (d) A  person  appearing  for  examination  in obedience to such order
      shall be sworn,  and  shall  be  entitled  to  be  represented  on  such
      examination  by  counsel,  and  may  be  cross-examined,  or  may make a
      voluntary statement in his own behalf  concerning  the  subject  of  his
      examination.
        (e) The  testimony taken under such order shall be signed and sworn to
      by the person examined, and be filed in the office of the clerk  of  the
      county  where  the  action  or proceeding is pending. If it shall appear
      that any person is wrongfully concealing or withholding, or has  in  his
      possession  or  under  his  control, any property of the corporation, on
      notice to him, the court may make an order requiring  him  forthwith  to
      deliver it to the receiver, subject to the further order of the court.