76-16-325. Compliance with department orders required. (1) If a state district or the directors of a state district fail to comply with an order of the department, the department may order a hearing on the order within the district or county and cite the directors of the district to appear before the department.
     (2) If upon the hearing it appears that the directors refuse to perform the duties of their office as provided in this part and as set forth in the articles of incorporation and the bylaws of the association or refuse to comply with a lawful order of the department, the directors may be summarily removed from office by the department, and the district shall elect new officers. During the period until the election, the department may operate and manage the affairs of the state district.
     (3) The expense of operating and managing the affairs of a noncomplying state district must be paid by the noncomplying state district before it may be reinstated.

     History: En. Sec. 7, Ch. 208, L. 1939; amd. Sec. 2, Ch. 199, L. 1945; amd. Sec. 37, Ch. 253, L. 1974; R.C.M. 1947, 46-2307(part); amd. Sec. 312, Ch. 418, L. 1995.