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BGB 42. 2 If an association is insolvent or is overindebted , the board must petition for the commencement of insolvency proceedings . If there is delay in petitioning , the members of the board who are at fault are responsible to the creditors for the damage resulting from this ; they are liable as joint and several debtors .
BGB 49. 1 The liquidators must complete the current business , collect the receivables , convert the rest of the assets into cash , satisfy the creditors and pay out the surplus to those entitled to receive it . In order to complete transactions that are in progress , the liquidators may also enter into new transactions . The collection of receivables and the conversion of the rest of the assets into cash may be omitted to the extent that these measures are not necessary to satisfy the creditors or to distribute the surplus among those entitled to receive it .
BGB 50. 1 The dissolution of the association or its deprivation of legal personality must be announced by the liquidators in a public notice . In the notice , the creditors must be requested to register their claims . The public notice is made through the newspaper specified in the articles of association for this purpose . Public notice is deemed to have been made at the end of the second day after the publication or first publication . BGB 50. 2 Known creditors must be requested by special invitation to register their claims .
Section 52 Security for creditors