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This entry was published on 2014-09-22
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SECTION 618
Liquidation and conservation of assets; compromising debts and claims; deposit of moneys collected; preference; superintendent, as liquid...
Banking (BNK) CHAPTER 2, ARTICLE 13
§ 618. Liquidation and conservation of assets; compromising debts and
claims; deposit of moneys collected; preference; superintendent, as
liquidator, authorized to borrow on and pledge assets of banks. 1. (a)
The superintendent is authorized, upon taking possession of any banking
organization, to liquidate the affairs thereof and to do all acts and to
make such expenditures as in his or her judgment are necessary to
conserve its assets and business. The superintendent shall proceed to
collect the debts due. The superintendent may, upon an order of the
supreme court (unless such order is not required pursuant to the
provisions of paragraph (b), (c) or (d) of this subdivision), (i) sell,
assign, compromise, or otherwise dispose of all bad or doubtful debts
held by such banking organization, (ii) compromise claims against such
banking organization, other than deposit claims, and (iii) sell or
otherwise dispose of all or any of the real and personal property of
such banking organization wherever situated. In case any of the real
property so sold is located in a county in this state other than a
county in which the application to the court for leave to sell is made,
the superintendent shall cause a certified copy of such order to be
filed in the office of the clerk of the county in which such real
property is located.

(b) The superintendent may sell, assign, compromise or otherwise
dispose of any bad or doubtful debt held by such banking organization
the value of which does not exceed fifty thousand dollars upon such
terms as he or she may deem for the best interests of such banking
organization without obtaining the approval of the court. For purposes
of this paragraph, the value of any such bad or doubtful debt shall be
the current value thereof as determined by the superintendent in good
faith.

(c) The superintendent may, when the amount proposed to be paid by the
superintendent in compromise does not exceed fifty thousand dollars,
compromise any claim against such banking organization, other than any
deposit claim, upon such terms as he or she may deem for the best
interests of such banking organization without obtaining the approval of
the court.

(d) The superintendent may sell or otherwise dispose of any personal
property of such banking organization (other than bad or doubtful debts
subject to the provisions of paragraph (b) of this subdivision) the
value of which does not exceed fifty thousand dollars upon such terms as
he or she may deem for the best interests of such banking organization
without obtaining the approval of the court. For purposes of this
paragraph, the value of any such personal property of such banking
organization shall be (i) in the case of any single class of a security,
or any commodity, or other property or claim that has a readily
ascertainable market value, such market value, and (ii) in any other
case, the current value thereof as determined by the superintendent in
good faith.

2. The moneys collected by the superintendent shall be: (a) Deposited
on demand, time or otherwise in one or more banks, savings banks or
trust companies and, in case of the insolvency or voluntary or
involuntary liquidation of the depositary, such deposits shall be
entitled to priority of payment on an equality with any other priority
given by this chapter;

(b) Deposited on demand, time or otherwise in one or more national
banks with its principal office located in this state and with total
assets exceeding five billion dollars; or

(c) Invested in obligations of the United States, or those for which
the full faith and credit of the United States is pledged to provide for
the payment of interest and principal.

3. Upon an order of the supreme court in and for the county in which
the principal office of such banking organization is located, the
superintendent is authorized to borrow money and to execute, acknowledge
and deliver notes or other evidences of indebtedness therefor and to
secure the repayment thereof by the mortgage, pledge, assignment in
trust or hypothecation of any or all of the property whether real,
personal or mixed of such banking organization. Money may be so borrowed
for any one or more of the following purposes:

(a) Facilitating liquidation;

(b) Protecting or preserving the assets in his possession;

(c) Declaring and paying dividends to depositors and other creditors;

(d) Providing for the expenses of administration and liquidation;

(e) Aiding in the reopening or reorganization of such banking
organization;

(f) Aiding in the merger or consolidation of any one or more of such
banking organizations which are corporations;

(g) Aiding in the sale of all of the assets of any such banking
organization.

The superintendent with the aforesaid order of the supreme court shall
have power to take any and all other action necessary and proper to
consummate any such loans and to provide for the repayment thereof.

The superintendent shall be under no obligation personally or in his
official capacity to repay any loan made pursuant to this subdivision.
The obligation for the repayment of any such loan shall be solely the
obligation of the banking organization receiving the benefit of such
loan.