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 six hundred
      nineteen-c of the code of criminal procedure; 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.