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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LiOiLidloA or ol,Q41, Federal Deposit Insurance . Corporation w = . Livision of hesearch and 6tatistics https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS ALABAMk Code c2t Alabama 1923 - pp. 259-245 Section 6299. Whenever it shall appear to the superintendent of banks that any corporation or individual banker has violated its charter or any law of the state, or if the superintendent may call a meeting of the banking board and submit to said board matters of default or misconduct in the affairs of the bank, of which the bank shall have notice And upon which the bank may be heard in person or by counsel, and if said board or a majority of said board, so directs, the superintendent shall forthwith take possession of the property and business of such corporation or individual banker Section 6300. If the board of directors of any bank by a vote of the majority of such requests the superintendent of banks to take charge of and liquidate the affairs of the bank, if the bank has violated any of the provisions of this article then the superintendent may take charge of and liquidate the affairs of the bank as herein provided without calling a meeting of said banking board. If for any reason only one appointed member of said banking board attends a meeting called by the superintendent, the superintendent and such one member may perform the duties of such board. Section 6509. The superintendent may, under his hand and official seal, appoint an agent to assist him in the duty of liquidation and distribution, of the assets of any bank taken possession of by him... Acts of 1927, No. 86, p. 66, Section 4 - Amends Section 6500.. If for any reason only two appointed members of said banking board attend a meeting https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGAEDING LIQUIDATION OF GLOSED BANKS ARIZONA LaW.a 2.• L1.4. Section 43. Whenever it shall appear to the superintendent of banks thnt spy bank has violated the provisions of its articles of inthe superintendent of banks corporation or any law of this state may forthwith take possession of the property and business of such bank and retain such possession until such bank shAll resume business or its affairs be finally liquidated as herein provided. Section 47. The superintendent of banks may under his hand and official seal appoint one or more special deputy superintendents, as agent or agents to assist him in the duty of liquidation and distribution https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1928, Section 245 and 248 - "and distribution" omitted. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to lifitCAN6AS • LEGISLATION RhGARDING LIQUIDATION OF CLOSED BANKS AWESAS . Code,, p._ 382 1919 Section 718. ImpairmAut Qt .QApltal ataak - duty ist .5101,11Zqloaer. On becoming satisfied that the capital stock of any bank is impaired the and if they fail to restore the capital commissioner shall require or give such bond within a time to be named by the commissioner, he shell take possession until business is resumed or its affairs be finally liquidated. Section 721. Appointment of deputies. The commissioner may under his hand and official seal appoint one or more specified deputy commissioners as agent or agents to assist him in the duty of liquidation and distribution, the certificate of appointment to be in duplicate, one copy to be filed in the office of the commissioner 1933, At, 614. lazau Upon taking charge of any bank the Section 53. commissioner shall forthwith be vested at law and in equity with the sole, exclasive and unconditional ownership and title in himself, his successors in office end assigns, of all of the property and assets of Upon taking charge of any bank the commissioner said bank shall proceed to liquidate its affairs, to institute, maintain and defend suit and other proceedings in the courts of this state or elsewhere if necessary the liabilities of the stockholders, and upon the order hereby empowered to be made, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S LEGISLATION REGARDING LIQUID-TION OF CLOSED BANKS CALIFORNIA Len. Law, /Al. ix laal, =IQ Lax Lc& aza Section 136. Superintendent of banks may take possession of bank violating law. Whenever it shall appear to the superintendent of banks that any bank has violated the provisions of its articles of incorporation, or any law of this state, or is conducting its business the superintendent of in an unsafe and unquthorized manner and business of such property the of on banks may forthwith take possessi resume business, shall bank such until bank and retain such possession provided as herein ed or its affairs be finally liquidat Authority of superintendent. Upon taking possession of the property and business of any such bank the superintendent of banks shall have authority to collect all moneys due to such bank and do such other acts as are necessary or expedient to collect, conserve or protect Its assets, property and business, and shall proceed to liquidate the affairs thereof as hereinafter provided ilisSALAt in liquid4tion. The superintendent of banks Da21111.e.a may, from time to time under his hand and official seal, appoint one or more special deputy superintendents of banks, as agent or agents, with the powers specified in the certificate of appointment, to assist him in the duty of liquidation and distribution, the certificate of appointment to be filed in the office of the superintendent of banks, and a certified copy in the office of the clerk of thc county in which the principal office of such bank is located 1233 - altutan Algid Amandmanta tathe QnleA. Qh. 14A‘ azu Section 156.1. Any bank whose deposits are insured by the Federal Bank Deposit Insurance Corporation, pursuant to the Federal Reserve Act, as amended, shall be referred to in this section as a "member bank" and Federal Bank Deposit Insurance Corporation shall be referred to in this section as the "Corporation." Whenever any member bank shall have been closed by act of its board of directors or by the superintendent of banks, on account of inability to meet the demands of its depositors, the superintendent of banks, after he has taken possession of the property and business thereof, as provided in Section 136 hereof shall have the power, if he deems it https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS CALFORNIA - Continued advisable, to tender to the Corporation an appointment as receiver of such closed member bank and if the Corporation and the new national bank to be organized by it as provided in subsection (1.) of section (1) of Section 12B of the Federal Reserve Act shall perform all of the functions and duties and shall have all the rights and privileges with respect to such closed member bank and the depositors thereof, which are prescribed by said subsection with respect to closed national banks holding stock in the Corporation, provided that the rights of the depositors and other creditors thereof shall be determined in accordance with the applicable provisions of the laws of this state, and provided further that with respect to such closed member banks, the Corporation shall possess all the powers and privileges given the superintendent of banks by the laws of this state with respect to the liquidation of a closed state bank, except in so far as the same may be in conflict with the provisions of said subsection. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CO4Oi-tiiL0 COLOhli1)0 LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS COLORADO Courtrightla Villa AanatAtai dtatutta - La. 1.s 194Q Section 381-e. Insolvent banks - authority revoked - notice. When a bank is in an insolvent condition, or refuses for more than ten days to conduct its business in strict accordance with the provisions of this act, the state bank commissioner may forthwith revoke the authority of said bank to do business and annul its charter and take possession thereof and of all its property and assets. In such event a notice, dated and signed by the state bank commissioner or his deputy, shall be placed on the front door of the place of business as follows: "This bank is in the hands of the State bank commissioner." No business shall be transacted by said bank after the posting of such notice. L 15, P. 135, sec. 701 - CL 21 - 2725. Section 381-1. No receiver nor assignment. No receiver shall be appointed for any bank. No bank shall make an assignment for the benefit of creditors. No writ of attachment L 13, p. 154, sec. 74; CL 21, sec. 2729. Section 381-j. Bank commissioner may liquidate bank. The state bnnk commissioner may retain possession of any bank for the purpose of liquidating its affairs. He shall, in such event, have power and it shall be his duty, to collect all debts, dues and claims belonging to the 1 13, p. 134, sec. 75; CL 21, sec. 2730. bank Section 381-1. Liquidation - deputy - assistants - expenses. The state bank commissioner may appoint one special deputy to assist in liquidating the affairs of any bank, and may employ auch other assistants and such legal counsel at such reasonable compensation as he shall fix and determine, as may be necessary therefor https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS CONNECTICM7 Lam.. at4tutea 2t QW1J.RAXIAIQU 4.E iaa. Title IlLQ 2Q, 1111 Receivers of hanks, Section 4040. May be appointed on stockholders' petition. Receivers of any bank or trust company whose capital is impaired my be appointed by the superior court for the county in which such bank or trust company is located, on the petition of the holders of a majority of the shares of its capital stock, if the court finds that the interests of the stockholders require that the affairs of such bank or trust company should be closed. (Rev. 1902, Sec. 5465) EMU... Statutes SIL G91111..s. figaiglaia SLZ IX°, Title az. Part IL. 5ec. 3920. 2.a. 1264 Cumulative supplement to the General Statutes, January Sessions, p. 605, Sec. 1437c, 1955. Commissioner to the receiver. (a) In all cases in which an application shall be made for the appointment of a receiver for any state bank and trust company or savings bank, upon finding that such receiver should be appointed, the superior court, or a judge thereof when the court shall not be in session shall appoint the bank commissioner as such receiver. (b) The superior court for the county in which any closed state bnnk and trust company, which bank on June 5, 1935, was in receivership, is located, shall appoint the bank commissioner as receiver or successor receiver of such closed bank. (c) The bank commissioner shall, on or before October 15, 1935, apply to the superior court having jurisdiction over each such closed state bank and trust company to be appointed as successor receiver (h) Said commissioner may appoint a liquidating agent, who shall be an employee in his office, and who, in the absence or in capacity of the commissioner and of his deputy, shall have authority to act for or represent the commissioner as such receiver or as liquidator of any state bank and trust company or savings bank. Such liquidating agent Said commissioner is authorized to organize a separate division within the banking department for liquidating and administering the affairs of state banks and trust companies or savings banks for which he is acting as receiver or liquidator https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGARDING LIQUIDATION OF oLOSED BANKS DELAhARE Laws 1921, C. 103, Sec. 9, 22. 293-4 Section 9. If the State Bank Commissioner shall deem that the affairs of any bank or trust company are in an unsound condition I -cause of illegal or unsafe investments, or that its liabilities exceed its assets, or that it is transacting businessII without aathoriV or in violation of law, or that it is unsafe or inexpedient for such corporation to continue business, he shall communicate the facts to the Attorney General whose duty it shall be to file in the Court of Chancery in any county where the said corporation is doing business a bill or petition setting forth the facts and applying for an order requiring such corporation to show cause wny its business should not be closed. In a proper case made, the Chancellor shall have power to appoint a receiver to take charge of, settle and close up the affairs II II If such corporation under the direction of the said Court, and to enjoin it from doing business, or to make such other order or decree as the circumstances shall warrant and to the Court shall seem proper. The Chancellor is hereby empowered to make such rules and regulations and such orders and decrees in the premises as he shall deem proper. If the State Bank Commissioner shall for any of the reasons specified in this section think it necessary for the protection of the depositors, or of the stockholders, or of the public, so to do, he may take possession forth:;ith of the place of business of any bank or trust company and retain such possession until an order of court be made in the premises. Laos 1933, C. 93, Sec. 5, 22. 397-8 By striking out the last sentence in Section 9 and by substituting in lieu thereof the follohing new sentences: "The Receiver to be appointed as aforesaid shall be the State Bank Commissioner or in his absence or disability, the Deputy Bank Commissioner. Neither of said officials shall receive apy extra compensation for acting as such receiver. The Court may in its discretion vest the Receiver with full power and authority to borrow euch sum or sums of money as the Court shall determine in order the More readily or expeditiously to settle the affairs of the said corporation and/or to make payments to its creditors or to its depositors or to its stockholders. Such borrowing may be from any public or L;overnmental or quasi public or qaasi governmental corporation, board, commission or other agency or https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS DELAIAIE - (SlaRtinued) from any source whatsoever, and the Court secure any such loan by the pledge of any the corporation, and to give the lender a property and assets over the creditors of may authorize the Receiver to of the property or assets of preference as to the pledged the corporation. "If by reason of any circumstance or condition whatsoever, the State Bank Commissioner shall be satisfied that it is necessary for the protection of the depositors and the conservation of the assets of any State bank or trust company doing business in this State, so to do, the said Commissioner may forthwith take possession of the place of business of such corporation and take charge of its affairs and the conduct of its business for such time as he shall deem necessary without first instituting or causing to be instituted any proceeding in the Court of Chancery, but every such corporation shall have the right to apply to the Court of Chancery for a rule on the said Commissioner so taking possession of the corporation as aforesaid to sho - cause why he should continue in such possession and the Court may after a hearing upon such rule, direct the said Commissioner to withdraw from the possession of the said corporation if the Court shall deem that the taking of such possession or his continuance therein is unnecessary or inexpedient. The said Commissioner is hereby vested with full right and authority, in his discretion, to keep such bank or trust company open and continue it in the transaction of business during his possession of the corporation "The State Bank Commissioner may employ such persons outside regular force in the Banking Department as he shall deem necessary the proper to assist him in the performance of his duties whether acting or order of Court or in possession of the corporation on receiver under as and may select some or all of the officers aforesaid, motion as his own for this purpose corporation such employees of and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FLORIDA FLORID is. • LLGISLATION REGARDING LIQUILATION OF CLOSED BANKS _FLORIDA Compiled General Laws of Florida 1927, Art. 10, 2. 1979 Section 6102 (4162). Comptroller may appoint receiver; duties of receiver; notice to bank officers; confirming appointment. -- On becoming satisfied, from the reports furnished to him by a State bank examiner, or upon other satisfactory evidence thereof, that any bank, banker, banking firm, banking or trust company or corporation doing business in this State under the State laws, has become insolvent and is in default, or that the affairs of any bank, banker, banking firm, banking or trust company or corporation doing business in this State, under such State laws, is in an unsound condition, or threatened -mith insolvency because of illegal or unsafe investments, etc , the rights, privileges and franchises shall be subject to be forfeited, and the State Comptroller may forthwith designate and appoint a receiver to take charge of the assets and affairs of such bank, and require of him such bond and security as the Comptroller deems proper, not exceeding double the amount that may come into his hands, and such receiver shall be subject to dismissal by the Comptroller, whenever in his judgment such dismissal is deemed necessary or advisable; when one receiver is dismiss ed, another may be duly designated and appointed (Ch. 6807, Acts May 27, 1915, Section 1) Section 6107 (4166). Receivers under supervision of Comptroller. The provisions of this Article shall apply to all receive rs of any bank, banking firm or banking or trust company heretofore appoint ed by the order of any circuit court, and all such receivers, both those hereunder and those heretofore appointed by the circuit court, shall at all times be under the sdpervision and control of the Comptroller, and subject at all times to summary discharge and dismissal by him and any vacancy in such receivership may be filled by the Comptroller at any time. (Section 6 ) Section 6112 (4171). Comptroller may direct examination; appointment of receiver. -- When it shall appear to the Comptro ller that it is necessary or advisable to do so, he shall direct the person employed under this law to make a thorough examination, reporting to him, the condition of the bank or banking company; and the directors shall make good any losses or irregularities to the satisfaction of the Comptroller; and if not done at once, a receiver shall be appointed. (Id. C5.) General Laws 1929, Volume 1, Ch. 13576, Sec. 19, etc., 2. 35, etc. Section 19. That Section 4162 of the Revised General Statutes of the State of Florida be amended so as to read as follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS FLORIDA -_(Continued) Section 4162. Comptroller may appoint liquidator: Duties of Liquidator: Notice to bank officers: Confirming appointment. Charges from receiver to liquidator. Then adds new provision: Section 20. The Comptroller may for the administration of the affairs of institutions under the above section by one general liquidator vlio shall be designated by the Comptroller as a General Liquidator for the administration of the affairs of several or all of the instructions in liquidation, whose compensation, etc The Comptroller may provide for the transfer at any time to the general liquidator of the affairs of any istitution for which a particular liquidator or receiver has been heretofore or shall hereafter be designated and the general liquidator shall be thereupon vested with all the rights conferred by law on such general liquidator as if he had been designated in the first instant to act as such. Section 25. That Section 4166 of the Revised General Statutes be amended as follows: (No change shown, probably meant to change from receiver to liquidator). Section 25. That Section 4171 of the Revised General Statutes be amended as follows: (Changes from receiver to liquidator). 1935 - Provided for a conservator. 1935 - Chapter 9, beginning page 18 of the Extraordinary Sesproviding for St te banks becoming members of the Federal 1935, sion of Corporation and for the Federal Deposit Insurance CorInsurance Deposit receiver for State banks. acting as poration Section 3. The Federal Deposit Insurance Corporation created by Section 8 of the Federal Banking Act of 1933, (Section 12B of the Federal Reserve Act, as amended), is hereby authorized and empowered to be and act without bond as receiver or liquidator of any banking institution, the deposits in vJlich are to any extent insured by said Corporation, and which have been closed on account of inability to meet the demands of its depositors, in lieu of the Commissioner of Finance, but only if and when requested so to do by said Commissioner. The Commissioner of Finance J.:4y, in his discretion, in the event of such closing tender to said Corporation the appointment as receiver or liquidator of such banking institution, in his stead, and if the Corpora- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGARDING LL.tJILATION OF OLOSED BANKS FLOhIDA - 03ontinued) tion accepts said appointment, the Corporation shall have and possess all the rights, powers and privileges provided by the laws of this State with res;)ect to the Commissioner of Finance acting as receiver or liquidator of a banking institution, and be subject to all the duties of such receiver or liquidator, except insofar as such rights, powers, privileges or duties are in conflict v:ith the provisions of subsection (1) of Section 12B of the Federal Reserve Act as amended. (Section 8 of said Banking Act of 1933). The Corporation shall not, however, without the consent of the Commissioner of Finance, continue to act as receiver or liquidator e any banking institution after the amount of the insured deposit liability of such banking institution, paid or assumed by the corporation, and the costs of liquidating paid or assumed by it have been repaid it or after funds are available thereto' https://fraser.stlouisfed.org Aar Federal Reserve Bank of St. Louis DigitizedG..0fiGI for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS GEORGIA 1922 Supplement Park's Annotated Code, 2. 549, Section 7. 2268 (a). Possession may be taken, when, (Vhenever it shall appear to the superintendent of banks that any bank has violated its charter or any law of the State, or any law or regulation of the Department of Banking, or is conducting business in an unsafe or unauthorized manner; or that its capital is impaired more than 10% below its par value and has not been made good under the requirement of the superintendent, or when any bank shall refuse to submit its papers, books and concerns to the inspection of the superintendent, or any examiner; or when any officer thereof shall refuse to be examined on oath touching the affairs, business, or concerns of any such bank; or when any bank shall suspend payment of its obligations or shall fail to pay any final judgment from which no further a)pellate proceedings will be 10 days after , the superintendent himself, or by a duly authorized agent, shall forthwith take possession of all the assets and business of such bank and retain possession thereof until such bank shall be authorized by him to resume business, or its affairs be liquidated as herein provided). 1919, p. 154. 2268 (i). Superintendent may appoint agent, (The superintendent may, under his hand and official seal, appoint an agent to assist him in taking possession of, liquidating and distributing the assets of any bank under the provisions hereof, the certificate of appointment to be filed in the office of the superintendent, and a certified copy thereof delivered to such agent. Such agent shall receive . The superintendent may authorize such agent to perform such duties connected with such liquidation and distribution as the superintendent himself could in person do and perform). 1919, p. 157. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jr • • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS ILAIDIO Idaho Code Annotated, 1932, Chapter 9, Sections 25-901, 908, 910, 22. 1.:9-195. 25-901. Grounds for closinz bank. - Whenever it shall appear to the department of finance that: etc. The commissioner himself, or his duly authorized agent upon express authority from the commissioner, may, in his discretion, close said bank and take possession of all the books, records, assets and business of every description of such bank, and hold the same and retain possession thereof until such bank shall be authorized by him to resume business or its affairs be liquidated as herein provided, and he shall do so in cases where a bank comes into his hands voluntarily, or in the manner provided by law. The powers and authority conferred on the commissioner by this section, except in cases of voluntary surrender, shall be considered as discretionary and not as mandatory, and so long as a commissioner acts in good faith in the matter, neither he nor his deputies shall be held liable civilly or criminally or upon their official bonds in any action taken thereunder or for any failure to act thereunder. S. L. 1925, Ch. 133, Sec. 64. 25-908. Powers of commissioner on 2.12Airig bank. - Upon taking the assets and business of any bank into his possession, the commissioner is authorized to collect all moneys due to such bank, and to do such other acts as are necessary to conserve its assets and business, and he shall proceed to liquidate the affairs thereof. he shall have general and inclusive power and authority, except as otherwise limited by the terms of this act, to do any and all acts, to take any and all steps necessary, or, in his discretion, desirable for the protection of the property and assets of such bank and the speedy and economical liquidation of the assets and affairs of such bank, etc v S. L. 1925, Ch. 133, Section 70. 25-910. Commissioner may appoint agents. - The commissioner may, under his hand and seal, appoint and authorize an agent to assist him or act for him in the performance of any powers or duties hereunder, the certificate of appointment to be filed in the office of said commissioner, and a certified copy thereof delivered to such agent Provided, further, that the cona.kissioner may also designate any one of the examiners of the department of finance as a general liquidating agent, with his office in the department of finance, for the purpose of liquidatLng any one or all State banks in the process of liquidation, and for the purpose of conducting such liquidation under the direction of said commissioner. S L. 1925, Ch. 13:5, Sec. 72. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1•••• LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS IDAHO - (Continued) Ex. S. L. 1955, Chapter 9, p. 21 The commissioner of finance may, in his discretion, in the court of such closing tender to said Corporation (Federal Deposit Insurance Corporation), the appointment as receiver or liquidator of such ranking institution, in his stead, and if the Corporation accepts said appointment the Corporation shall have and possess all the rights, powers and privileges provided by the laws of this State with respect to the Commissioner of Finance acting as receiver or liquidator of a banking institution, and be subject to all the duties of such receiver or liquidator, except insofar as such rights, powers, privileges or duties are in conflict with the provisions of subsection (1) of Section 125 of the Federal Reserve Act, as amended (Section 8 of said Banking Act of 1953). The Corporation shall not, however, without the consent of the Commissioner of Finance, continue to act as receiver or liquidator of any banking institution after the amount of the insured deposit liability of such banking institution, paid or assumed by the Corporation, and the costs of liquidation paid or assumed by it have been repaid it or after funds are available therefor. Etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ILL LiiuTS • LEGISLATION REGAII.DING LIQUIDATION OF CLOSED BANKS ILLINOIS Illinois Annotated Statutes (Smith-Hurd) 1924, Vol. I., Lh. 1 . (ido Sec. 2. 663 Section 11 -- Banks or banking associations may be organized under the provisions of this Act, at any place within the State, with minimum capital stock as follows: (a) (b) (d) (c) Should the capital stock of any bank organized under this Act become impaired, the Auditor shall give notice to the president to have the impairment made good by assessment of the stockholders or a reduction of the capital stock of such bank if the reduction should not bring the capital below the provisions of this section; and if the capital stock of said bank shall remain impaired for 50 days after notice by the auditor, he shall power and it is hereby made his duty to enter suit against or if it appears from the reports made each stockholder, etc.; to th Auditor under this Act, or from any examination made by or on behalf of the Auditor that the conditions of any bank organized under this Act are such that the impairment of the capital stock cannot be made good or that the business of any such bank is being conducted in an illegal, fraudulent or unsafe manner, he may, in his discretion, without having taken the steps provided in this section to make good the impaired capital stock, forthwith appoint a receiver, and recuire of him such bond and security as he deems proper. Such receiver, under the direction of the Auditor, shall take possession of the books, records, etc. Approved June 28, 1925, ratified by vote of people November 1924. Amended 1929, ratified November 1930 as follows: Re capital impairment changed to give notice to directors instead of president, directors to assess stockholders "pro rata, for an amount, if necessary, equql to the par value of the stock held by each". Also, "if the capital stock of said bank shall reLlain impaired for 60 days" instead of "thirty days", and condition is added "it is operating with an insufficient portion of its assets in cash or readily convertible securities", appointment of receiver by Auditor is the same. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1932. Modification does not affect appointment of receiver. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLaTION REGAELING LIL,JIDATION JP CLOSED BAi\US IADIANA Burns Annotated Indiana Statutes 1926, Section 3965 (3419) 2. 146. 3965 (3419). Examinations, reports, fees. -- 2 and if such private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company be in an insolvent or failing condition, or if the assets thereof are being wasted or improperly used or converted, said examiner shall at once notify the bank commissioner, who shall thereupon direct said examiner, or some other person appointed by him, to at once take charge and control of said private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company, and all the books, notes, cash on hand and other assets, and said bank commissioner shall immediately thereafter make application to the judge,of the circuit court or supeiior court of the county when such private bank, ban:.: of deposit and discount, etc is situated, either during term time or vacation, for the appointment of a receiver to take charge of said private bank, bank of deposit and discount etc. Notice of such application shall be given to the stockholders and depositors of said private bank, bank of etc by publication, as directed by the judge of said court. Should any such private bank, bank of discount and deposit, etc fail or suspend between the periods of examination authorized, it shall be the duty of the officers of said private bank, bank of discount and deposit, etc. . . . to immediately notify the bank commissioner, of such failure or suspension, and said commissioner shall thereupon appoint some proper person to take charge of the assets of said private bank, bank of discount and deposit, etc pending the application for and appointment of a receiver as herein provided for Amended 1933, Chapter 40. Department of Financial Institutions and Liquidation created and all powers of the Banking Department transferred to the new department. Section 7756. If any financial institution be or become insolvent, or is in imminent danger of insolvency, or shall fail or suspend operation between the periods of examination hereinbefore authorized, it shall be the duty of the highest officer then actively in charge of such financial institution to notify the department, immediately, of such condition, failure or suspension, etc. In addition to any and all other Section 7763 powers compared by this Act, the department is hereby authorized to take possession of the business and property of any financial institution to which this act is applicable, except small loan companies, whenever it shall appear to the department that such financial institution has violated https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • LEGISLaTION REGAELING LIOIDATION OF CLOSED BANKS INLIANA - (pontinuedl_ Section 7767, Right to liquidate financial institutions. Except as herein otherwise provided, the sole and exclusive right to liquidate and terminate the affairs of any financial institution to which this act is applicable, shall be vested in the department and hereafter no reeiver,assignee, trustee or liquidating agent shall be appointed for such purpose or for any financial institution or the assets or pro-L)erty thereof by any court, or the judge thereof, or any other person, etc See Baldwin's Indiana Statutes 1954, p. 1662. Amended 1955. not changed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S. L., Chapter 5, Section 24, but authority https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • LEGISLATION REGAid.ING LL.,:UILATION OF CLOSED BANKS IOVIA Code of Iowa 1924, Section 9242, p. 1167 Section 9242. Superintendent as Receiver. -- The superintendent of banking henceforth shall be the sole and only receiver or liquidating officer for State incorporated banks and trust companies and he shall serve without compensation other than his stated compensation as superintendent of banking, but he shall be allowed clerical and other expenses necessary in the conduct of the receivership. (40 General, Ch. 189, Section 1 - ly25). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis KAN • LEGISLATION REGAhDING LIQUIDATION OF CLOSED BANKS KANSAS Revised Statutes of Kansas 1923, 9-130, o. 39 9-130. Insolvency; examination; receiver. If upon examination by the State bank commissioner or his deputy, or from any report made to the bank commissioner, it shall appear that any bank is insolvent, etc it shall be the duty of the bank commissioner to immediately take charge of such bank and all property and effects thereof. The bank commissioner may appoint a special deputy bank commissioner to take charge of the affairs of an insolvent bank temporarily until a receiver is appointed; Provided, that in no case shall any bank continue in charge of such special deputy for a longer period than six months. Upon taking charge of a bank, the bank commissioner shall, as soon as possible, ascertain by a thorough examination into its affairs, its actual condition; and whenever he shall become satisfied that such bank cannot resume business or liquidate its indebtedness to the satisfaction of all its creditors, he shall forthwith appoint a receiver and require of him such bond and security and allow him such reasonable compensation as he deems proper. Such receiver, who shall be a resident of Kansas, under the direction of the bank commissioner, shall take charge of such bank and its assets, Provided, that the bank commissioner shall appoint any person who the holders of more than 50 percent of the claims against such bank may agree upon in writing: and provided further, that such creditors so agreeing shall have the right to contract with the person vho they may name as to the compensation and charges to be by him received for liquidating the affairs of such bank, and shall make report to the bank commissioner of all his acts and proceedings. (L. 1915, chapter 66, Sec. 1) Appointment of receiver not changed in 1927 amendment nor in the Regular Session 1933, Ch. 80. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • S 4kiiTUUKY LEGISLATION hEGiiELING LIQUILATION OF CLOSED BANKS KENTUCKY Carroll's Kentucky Statutes 1922,_p. 76 Section 165a-16. Insolvent and unsafe banks; powers of examand iner commissioner; receiver; suit. If from any examination made as provided in this act, it shall appear that any bank is insolvent or that its capital has become impaired, and is permitted to remain impaired beyond the period allowed by law, it shall be the duty of the banking commissioner in person or by his deputy or by a State bank examiner immediately to take charge of such bank and all property and effects thereof. If an examiner shall find that any bank is pursuing a dangerous and unsafe policy the examiner shall call the directors and officers of such institution together and advise them fully of the nature of such objectionable practices, and warn them against a repetition thereof, and shall make a full report to the banking commissioner of the practices warned against, and the advice given by him, and thereupon the banking commissioner, if he deem it proper, shall, in person or by written notice to each director, require an abandonment or cessation of such objectionable practices or policies, and if his directions are not complied with, he may place a State bank examiner in charge of such bank, or he may adopt such other policy as may in his judgment seem wise and best calculated to bring the institution back to a safe condition. The officers, directors, or stockholders of any bank shall have the right forthwith, upon his declaration of doing so, to execute to such commissioner, a bond with security or surety approved by him, condition to secure the creditors of such bank, and upon the execution of such bond the banking commissioner shall leave with, or restore the custody and management of such bank to the officers and directors thereof. The commissioner may, if he deem necessary, cause a petition to be filed in the circuit court of the county where such bank is located, and apply to such court or to the judge thereof, 7:hen the court is not in session, for the appointment of a receiver of such bank, and thereupon such court or the judge thereof shall set a date for the hearing of the application for the appointment of a receiver, not later than 20 days from the date of such motion is made and of vhich notice shall be served upon the bank. Upon such hearing the parties may be heard by affidavits or upon oral examination in court or efore the judge and thereupon the judge shall hear and determine the question of the appointment of such receiver, and if the court shall determine that such action or proposed action of the commissioner was justified, the court shall appoint a receiver, anu shall fix the amount of the bond to be given by him. (As of 1914) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIcUILATION OF CLOSED BANKS KENTUCKY - Continued Carroll's Kentu4y Statutes, 122, P. 294 Section 616. (Under Corporations) heceiver: when may be appointed for. -- The Secretary of State upon becoming satisfied that any bank or corporation has become insolvent, or that its capital has become, and is permitted to remain, impaired, or that it has violated any of the provisions of the law under which it was organized, may, with the approval of the attorney-general, apply to the circuit court, or judge thereof in vacation, of the county in which the bank or corporation is located, for the appointment of a receiver, who, under the direction of the court or judge, shall take possession of the books, papers and assets of every description, and all business of the bank or corporation, and collect all collectable debts and demands, and sell or compound under the order of the court, all bad debts, and sell all the real and personal property of the bank or corporation, on such terms as the court may direct. The receiver shall be resident of the county in which the action is pending, and give bond, with good surety, to be approved by the court, and settle his accounts under the general laws. 1952 Supplement to Carroll's Kentucky Statutes, 35 Section 165a-16. Banking commissioner charged to read "banking and securities commissioner". Otherwise not altered. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS LOUISIANA Constitution and Statutes of Louisiana, Volume I, 1920, 2. 149 Act 500 of 1910. Section 1. Be it enacted by the General Assembly of the State of Louisiana, that whenever it shall appear that any State banking association, savings bank or trust company has violated repeatedly its charter or banking laws; or whenever the State Examiner of State Banks shall have reason to conclude after investigation that any such corporation is in an unsound or unsafe condition to transact the business for which it was organized; or then the State Examiner of State Banks with the consent and approval of the Governor whenever practicable, may and is hereby authorized to close the bank forthwith and take possession of its books, property and affairs and retain such possession until its affairs are finally liquidated as hereinafter provided for, unless the stockholders thereof by voluntary assessment The Board of Directors of any bank placed in liquidation as provided for in this section, shall have the right to appoint, with the approval of the State Examiner of State Banks, one liquidator, to assist the State Examiner of State Banks in the duty of liquidation and distribution, and said liquidator shall have equal authority with the State Examiner of State Banks or the special agents appointed by the State Examiner of State Banks in selling and disposing of the assets of the corporation under liquidation: Section 2. Be it further enacted, etc., that the State ExState Banks may appoint one or more special agents to assist aminer of him in the duty of liquidation and distribution Morris 1926 Supplement of Annotated Revised Statutes of Louisiana Act 249 of 1918. Section 1. Be it enacted by the General Assembly of the State of Louisiana: That, whenever, under a judgment of a Court of competent jurisdiction, the Charter of a bank organized under the laws of the State of Louisiana will have been forfeited, Rnd liquidators appointed by the Court for the purpose of closing the affairs of such bank, the said liquidators shall be invested with the same authority as is provided for in the liquidation of banks through the State Examiner of State Banks in the matter of collecting money, or managing the affairs of the defunct bank, as well as on the order of the District Court of its domicile, to sell or compound all doubtful debts, and sell all real and personal property, on such terms and in such manner as the said Court shaL direct, and as my be done in the case of banks liquidated throagh the State Bank Examiner. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS MAINE Revised Statutes 1950, Chapter 57, Section 52, P. 912 Section 52. Commissioner may api45r for injunction to restrain insolvent corporation; powers and duties of the justice in such cases; may appoint receiver who shall report annually; duties of commissioner and attorney general. R. S. Ch. 52, Sec. 54, 1925, Ch. 144, Sec. 52. If upon examination of apy such corporation, the bank commissioner is of the opinion that it is insolvent, or that its condition is such as to render its further proceedings hazardous to the public or to those having finds in its custody, he shall apply, or if, upon such examination, he is of the opinion that it has exceeded its dowers or failed to comply with any of the rules, restrictions, or conditions provided by law, he may apply to one of the justices of the supreme judicial court or of the superior court to issue an injunction to restrain such corporation in whole or in part from proceeding further Arith its business until a hearing can be had. Such justice may forthith issue process for such purpose, and after a full hearing of the corporation, may dissolve or modify the injunction or make the same perpetual, and make such orders and decrees to suspend, restrain, or prohibit the further prosecution of its business as may be needful in the premises, according to the course of proceedings in equity; and he may appoint one or more receivers or trustees to take possession of its property and effects, snbject to such rules and orders as are from time to time presented by the supreme judicial court or the superior court, or by any justice thereof in vacation. Such receivers or trustees shall annually, in May, and at such other times as the commissioner requires, make a report to him Of the progress made in the settlement of the affairs of said corporation; and the commissioner shall seasonably give notice of the time, and furnish blanks for the report. The court in its discretion may appoint the bank commissioner or deputy bank commissioner, receiver for such pnrpose, in which case, no commission fee or other prerequisite shall be allowed for such official for his services in said capacity, but his expenses, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARLING LIQUIDATION OF CLOSED BANKS MARYLAND Laws 1914, Chapter 805, Section II. (10), 2. 1488 Section 10. Whenever it shall appear to the Bank Commissioner uoon examination, that any institution to which this test is applicable, is conducting its business in an unsafe, or unauthorized manner, or if any such institution shall refuse to submit its books, papers and concerns to the examination of the Bank Commissioner, etc the Bank Commissioner may with the .ritten consent of the Governor and Attorney-General, obtained prior thereto, forthwith take possession of the property and retain possession until such institution shall resume business or its affairs be finally liquidated as herein provided Immediately upon posting said last mentioned notice by the Bank Commissioner, the property, assets and business of such institution shall be considered to be in the possession of the Bank Commissioner, which fact shall operate as a bar to any and all attachments, liens, executions or distraints of any kind, and shall also operate to place the assets of said institution in tie hands of said Bank Commissioner, as receiver, the same as if he had been appointed by an order of Court 1931 Chanter 294, 2. 749 Section 1. Places Bank Commissioner in Division of Financial Review and Control. Bank Commissioner to be appointed by Governor for four years and until his successor is appointed and qualified. Term four years; salary according to budget. Bank Commissioner under supervision of Comptroller. Section 2. The Bank Commissioner may with the approval of the Governor, appoint and . ith his consent, receive a Deputy Bank Commissioner and such other additional examiners or clerks at salaries ithin the limits of the amounts appropriated therefor in the Budget bill Whenever it becomes necessary for the Bank Commissioner to take charge of a failed banking institution, a receiver, as provided in this Article, he may appoint such additional clerks as he may deem necessary for the purpose of such receivership 1933, Chapter 15, 2. 102-4 An Act to add a new section to Article 11 of the Annotated Code authorizing and permitof Public General Laws of Maryland ting every banking institution, organized under the laws of the State, if the Section is approved by a vote of a m,jotity of its Board of Directors https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • LEGISLATION itEGARDINO LIUIDATCON OF CLO6D BANKS wARYLAND - (Continued) to become a member of the "Temporary Federal Deposit Insurance Fund", and/ or to become a member of the Federal Deposit Insurance Corporation and/or to become a member of the Federal :eserve System and to comply with the provisions which may be a2plicable to such banking institution contained in the "Banking Act of 1933", etc., and any amendments or amendment hereafter made thereto, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis iiikt.66hUhUbLTT6 • LEGISLATION REGAEDING LIQUIDATION OF CLOSED BANKS MASSACHUSETTS General Laws of Massachusetts, 1932, Chapter 167, Sections 22-26,2. 2190-2 Section 22. Whenever it shall appear to the Comialssioner that apy bank has violated its charter or any law of the commonealth, or is conducting its business in an unsafe or unAuthorized manner, or that its capital is im2aired, or if it shall refuse to sUbmit its books, 2apers and concerns to the inspection of the Commissioner or of his duly authorized agents, or if any officer of such bank shall refuse to be examined on oath by the Commissioner, or, etc The Commissioner may take possession forthwith of the property and business of the bank and may retain possession thereof until the bank shall resume business or until its affairs shall finally be liquidated as herein provided. Section 24. Upon taking possession of the property and business of such bank, the commissioner may collect moneys due to the bank, and do all acts necessary to conserve its assets and business, and shall proceed to liquidate its affairs as hereinafter provided. (Passed 1019) Section 26. The Commissioner may unaer his hand and official seal, appoint agents to assist him in the duty of liquidation and tribution, (1919) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS MICHIGAN 1915 Compiled Laws, 2. 2878-9 Section 8023. Same as 1927 exactly except that the clause "who shall have the recommendation of the banking commissioner" is inserted in 1927. State Laws, 1927,_Chapter 147, 2. 223 Section 1. (Sec. 55 of Compiled Laws of 1915). If the commissioner shall become satisfied that the capital of any bank has become impaired or reduced belo-a the amount required by law, and such impairments or reduction shall not have been made good as by him required, and the order and requisition of the commissioner in that regard shall not have been complied with, or if the commissioner shall have become satisfied that any bank has refused to pay its deposits the commissioner shall conclude that such bank is in an unsound or unsafe condition to transact the banking business, so that it is unsafe and inexpedient to continue same, the commissioner of the banking department shall coamunicate such facts to the Attorney-General, and with his concurrence, application may be made by the Attorney-General in behalf of the commissioner, to the Court of Competent Jurisdiction for the appointment of a receiver of such bank. Upon presentation of said application to said Court, and upon its being made satisfied that the capital stock of said bank has become impaired or reduced below the amount required by law, and that such impairment or reduction has not been made good, or the order of the commissioner in that respect complied with, or that it has refused to pay its deposits as hereinbefore set forth, or that it has violated any provisions of this act, or is conducting its business in an unsafe , the said Court shall immediately appoint the banking commissioner, his deputy or one of the banking examiners in the banking department, or some other competent and disinterested person (who shall have the recommendation of the banking commissioner (added in 1927) as receiver and shall determine his bond and prescribe his duties and may make such further order as shall deem proper. 1935 Sup,lemeat to 1929 Compiled Laws, 2. 881 -- Atct 150, 1935 Section 11970-4. Sec. 2. The Federal Deposit Insurance Corporation created by Section 8 of the Federal Banking Act of 1933 (Sec. 12B of the Federal Reserve Act as amended - Mason's U.S.A. title 12, Section 264) is hereba empowered, when authorized by appropriate State authority, to be and act without bond as receiver of any banking institution, the deposits in which are to any extent insured by said Corporation, and which shall have been closed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS AIOHIGAN - (Continued) The appropriate State authority having the right to appoint a receiver of a banking institution, may in the court of such closing tender to said corporation the appointment as receiver of such banking institution, and if the corporation accepts said appointment, the corporation, as receiver, shall have and possess all the powers and privileges provided by the laws of this State with respect to a receiver of banking institution and be subject to all the duties of such receiver, except insofar as such powers, privileges or duties are in conflict with the provisions of subsection lL) of Section 8 of said "Banking Act of 1935". https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION iiEGARDING LIQUIDATION OF OLOSED BANa6 MINNESOTA 1 tasonminnesota Statutes, 1027, Volume 2, Chapter 58, Section 7689, o. 1646, passed '09 Section 7689. The public examiner shall collect all debts due and all claims belonging to such bank, and upon the order of the district court may sell or compound all bad or doubtful debts, and on like order may sell all the real and personal property of such bank on such terms as the court may direct, and may, if necessary to pay the debts of such bank enforce the indiviL'Lual liability of the stockholders. The public examiner may under his bond apoint one or more special deputy examiners as agents to assist him in the duty of liquidation and distribution, the certificate of appointment to be filed in the office of the Secretary of State and also the clerk of the district court of the county in which the principal office of such bank was located. The public examiner may from time to time authorize apy such special deputy examiner to perform such duties connected with such liquidation and distribution as the public examiner may deem proper Whenever the public examiner shall have paid each and every depositor and creditor of such bank (not including stockholders) whose claim or claims as such creditor or depositor shall have been duly approved and allowed, the full amount of such claims, and shall have made proper provision for for unclaimed and unpaid deposits or dividends and shall have paid all the expenses of the liquidation, the public examiner shall call a meeting of the stockholders of such corporation by giving notice thereof ten days before by publishing such notice At such meeting the stockholders shall determine whether the public examiner shall be continued as liquidator and shall wind up the affairs of such bank, or whether an agent or agents shall be elected for that purpose, and in so determining the said stockholders shall vote by ballot, in person or by proxy, each share of stock entitling the holder to one vote, and the majority of the stock shall be necessary to a determination. In case it is determined to continue the liquidation under the public examiner he shall complete the liquidation of the affairs of such corporation, and after paying the expenses thereof shell distribute the proceeds among the stockholders Amended 1955, Section 1954, Supplement, Chapter 580 Section 7689 pp. 5567 Changes from public examiner to commissioner of banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I LEGISLAJION REGAIZIAG LIL.4AIDATIOA OF CLOSED BANKS MISSISSIPPI HemingwaY's Annotated Mississippi Code, 1927, Volume 2, o. 1951-2, passed Section 5809 (3569) Insolvent bank may be liquidated: 22. If said superintendent, as a result of apy examination, or any report rendered under this act, shall be of the opinion that any bank is insolvent, or that its condition is such that a further continuance of its business is hazardous to its creditors, depositors, or the public, or that the bank has failed to comply , it shall be his duty in such case, to duly consider these matters and he may liquidate said bank as hereinafter provided therefor. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis l6SU UktI nal:)..)JuttI LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS MISSOURI Revised Statutes of Missouri 1929, Volume I, Chapter 34, Article 1, 2. 1498-00. Section 5516. Commissioner may take possession of property of corporation or private banker. The finance commissioner may forthwith take possession of the business and property of any corporation or private banker, subject to the provisions of this Chapter: (1) Whenever such corporation or private banker has refused to submit its or his records (2) Whenever from.an examination made by the commissioner, or by one of his deputies or examiners, it shall be discovered (5) Whenever apy corporation or 2rivate banker subject to the provisions of this Chapter so desires, it or he may place its or his affairs and assets under the control of the commissioner by posting a notice, etc (4) The powers and authority conferred on the commissioner by this section, except in cases of voluntary surrender, shall be considered as discretionary and not as mAndatory, and so long as the commissioner acts in good faith in the matter (this section added in 1927). Section 5318. It shall be unlawful in this State for any corporation or private banker subject to the provisions of this chapter, to make a voluntary assignment of its business and affairs. In c::_se it shall find itself to be in a failing condition, it shall immediately place itself in the hands of the commissioner Section 5319. Circamstances under which possession of commissioner may, terminate. When the commissioner shall have duly taken possession of such corporation or private banker, under any -provision of this chapter, he may hold such possession until its affairs are finally liquidated by him, unless: (1) he shall have permitted such corporation or banker to resume business pursuant to the provisions of Section 53'22. (2) The commissioner shall have been directed by order of court to surrender such possession, pursuant to the provisions of Section 531. (3) The stockholders of such corporation, at a meeting called by the commissioner pursuant to the provisions of Section 5340 shall have duly determined to appoint and shall have appointed, an agent or agents to continue the liquidation of such corporation, and such agents shall have qualified to take possession of its remaining assets as provided in Section 5340. (4) The depositors and other creditors of such corporation or banker and the expenses of such liquidation shall have been paid in full. ' https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS JiISSOURI - (Continued) Section 5523. The commissioner may, by certificate, under his hand and official seal, appoint one or more special deputy commissioners as agents to assist him in liquidating the business and affairs of any corporation or private banker in his possesAon 1927 - p. 251. Clause is added: The commissioner may appoint a bank or trust company as such special deputy commissioner and any bank or trust company receiving and accepting any such appointment, shall be fully authorized and empowered to do any and all acts and things which the commissioner my deem necessary and advisable in liquidating the business and affairs of the corporation or private banker in his possession. 1933 - p. 136. In order that banks organized under the Laws of the State of Missouri and the depositors thereof may have the same opportunity and enjoy the beaefits of the Act of Congress known as the "Banking Act of 1955" in relation to insurance of deposits and all amendments thereto , the Federal Deposit Insurance Corporation shall, with like force and effect as if the closed bank were a national bank, be subrogated to all the rights against a closed bank or private banker, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION RILARLING LIUIDATION OF CLOSEL BANKS MONTANA Revised Codes of Montana, 1921, Volume 2, 2. 128 Section 6079. Aupointment of receiver. It appearing necessary to have a receiver appointed for any such bank or banks, the superintendent of banks shall make a full and complete statement of account and report to the Governor with respect to the condition of its business and affairs, and thereafter, should it appear to the Governor that application should be made for the appointment of a receiver, he shall thereupon direct the attorney-general to file a petition in the district court of the county in which the bank is situated, asking for the appointment of a receiver, in the name of the State of Montana, and such petition shall be controlling and by the court so considered and acted upon, even though stockholders, creditors, or others may have theretofore filed applications for the appointment of a receiver, Then any such petition is filed by the State, no suggestion shall be contqined therein as to any particulfir person to be appointed in such capacity, but the court shall appoint some suitable person for receiver, who shal first be nominated by the superintendent of banks, and whose compensation shall in no case exceed $500 per month. Receivers of all insolvent banks shall make reports to the superintendent of banks in the same manner as is required of other banks, etc. .. Above repealed 1927 by Section 144 of Chapter 89. 1927, Part III., Chapter 15, Section 6014, 121-9. Beginning 2. 748 of Revised Codes of Montana Supplement 1923-27 Codes of Montana Supplement 1923-37. Section 6014, 121. Li(..„uidation of banks, etc. Whenever it shall appear to the superintendent of banks that: (1), (2), (3) then (8). The superintendent himself, or his duly authorized agent upon express authority from the superintendent, may, in his discretion close said bank and take possession of all the books, records, assets and business of every description of such bank, and hold the same and retain possession thereof until such bank shall be authorized by him to resume businesa, or its affairs be liquidated as herein provided, and he shall do so in cases where a bank comes into his hands voluntarily, or in the manner Provided by law. The powers and authority conferred on the superintendent by except in cases of voluntary sure_ider, shall be considered section this discretiomry and not as mandatory, and so long as a Superintendent as acts in good faith in the matter, neither he nor his deputies https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATIoN itiLARDING LIcUIDATIoN OF OLOSED BANKS iiIONTANA (continued) 6U14.129. Superintendent may appoint agents. The superintendent may, under his hand and seal, appoint and authorize an agent to assist him r act for him in the performance of any poers or duties hereunder, the certificate of apointment to be filed in the office of said superintendent, and a certified copy thereof delivered to the agent Provided, further, that the superintendent may also designate anyone of the examiners of the Department of Banking as a general liquidating agent, with his office in the Department of Banking, for the purpose of liquidating any one or all State banks in the process of liquidation, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NEBRASKA Laws of 1925, Chapter 30, 2. 122. Chapter 191 of Laws of 1933 Section 1 amendinc. Section 11 of Section 11. Banks when taken over -- Vdienever it shall appear to the Department of Trade and Commerce, from any examination or report provided for by this article, that the capital of any corporation transacting a banking business under this article is impaired, that such corporation is conducting its business in an unsafe or unauthorized manner, such Department may forthwith take possession • of the property and business of such bank, and place it in charge of the Guarantee Fpnd Commission, who shall thereafter conduct the affairs of said bank, and who shall retain possession of all money, rights, credits, assets and property of every description and may retain possession for a sufficient time to make an examination of its affairs, and dispose thereof as provided by law Section 4. Amending Section 18, Chapter 191 of 1923 1ws. La1! II IJ possession Section 18. Commission, Poers, Duties -- Upon taking of the property and business of any bank, the Guarantee Fund Commissin o may take the property and business of such bank and open it control of • charge and • and manage it as a ;oing concern, without regard to its solvency, and If the Guarantee Fund through employees oerform Commission shall determine that it is impossible to preserve such institution as a going concern, then the Common shall proceed to liquidate such bank as by law provided: Provided the district court of the trict in which such bank is located, may, upon aoolication of any judgL. after a period of three months from the taking over of ment creditor bank by the Guarantee Fund Commission, order the commission to close said bank, and liquidate the same, as provided by law. Section 6, amending Section 52, Chapter 191, Laws of 1925. Section 32. Application for Receiver. The Guarantee Fund Commission may at any time apply to any court in which a receivership for a bank is pending, for an order directing the receiver to sell all or any part of the assets of every kind and discription in his possession, or under his control Compiled Statutes, 8-190, 192, 193 and 194 Amended 1929, Chapter 38, Sections 10, 11, 12 and 13, pp. 162-3. Section 10. (8-190). Upon determiaation of insolvency of apy bFink by the Secretary of the Lepartment of Trade and Commerce, and failure of the owners thereof to restore solvency -lithin the time and in the manner provided https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NEBRASKA - (Continued) by law, or upon violation of the laws of the State by the bank, (the Secretary shall report the facts to the i ,ttorney General, who shall apply to the District Court of the county in which the bank is located, or to a judge thereof within his judicial district, or to a judge thereof of the Supreme Court, for a decree determining such insolvency or violation of law, and the appointment of a receiver. If such decrees is entered by a judge of the Supreme Court, the petition and decree shall be forthwith transmitted to the clerk of the District Court of the county in which the bank is located and all proceedings thereafter shall be had in said court or before a judge thereof. Notice of hearing of application for decree of insolvency, or violation of law, and receivership shall be served upon the president or cashier of the bank or upon a majority of its Board of Directors. Such notice shall state the purpose of the application and the time and place for hearing thereon. If upon such hearing the court, upon evidence presented, finds the bank insolvent or that it has so failed to comply with the laws of the State as to authorize the closing thereof by the Department of Trade and Commerce) decree shall be entered and the bank ordered liquidated. Section 11. Secretary -- Receiver of Insolvent Banks. The Secretary of the Department of Trade and commerce shall be the sole and only receiver of failed insolvent banks, and shall serve as such without compensation other than his compensation as Secretary of said department. Section 12. Decree of Court. When, by a decree of court, a bank is ordered liquidated, the decree will place the assets of said bank in the hands of the Secretary of the Department of Trade and Commerce, and liquidation shall thereafter be had under order of court in the manner provided by law. Section 13. Appointment of Deputies and Assistants. The Secretary of the Department of Trade and Commerce shall appoint such deputies and assistants as he may find necessary for the efficient and economical handling of office, including receiverships. The acts of such • deputies shall be executed in the name of the Secretary of the Department of Trade and Commerce by the deputy, etc. Amended 1933. Compiled Statutes Supplement, 1953, Chapter 8, Article 1, p. 34 8-81. Whenever it shall appear to the Department of Banking from any examination, report, etc such department may firthwith take possession, etc The Superintendent of Banks shall retain possession of the property and business of such bank until the bank shall resume business or its affairs be finally liquidated as hereinafter provided. 8-190 by the Superintendent of Banks, and failure of the owners the Superintendent of Banks shall make a finding in writing of the condition of the affairs of such https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NEBRASKA - (Continuedl_ bank and a declaration of insolvency; said finding and declaration shall be filed with the clerk of the district court of the county, etc. 8-192. The Department of Banking is hereby designated the Receiver and Liquidating Agent of failed or insolvent banks. 8-193. Decree of Court. Repealed 1933 8-194. Appointment of Deputies, Assistants, etc. The Superintendent of Banks may, under his bond and official seal, appoint such special deputies or assistants as he may find necessary for the efficien t and economical liquidation of insolvent banks, etc 6-190. Amended 1955, Chapter 16, p. 68-9 (some chalke in rights of aggrieved banks which I did not copy before). If not enjoined the Superintendent of Banks shall proceed to liquidat e the affairs of such benk as provided by Chapter 8, Article 1, of the Compiled Statutes of Nebraska for 1929, as amended, except: (1) In case the Federal Deposit Insurance Corporation shall, under the laws of this State, accept the appointment as receiver of liquidator of any insolven t State bank whose deposits are insured by said Federal Deposit Insuranc e Corporation. (2) That when any State bank shall hereafter be declared insolvent and ordered to be liquidated and the deposits of said bank are not insured by the Federal Deposit Insurance Corporation, then deposito rs and other creditors of said insolvent State bank representing 51% or more of the deposit and other claims in number and in amount* if the total thereofsshall have the right to liquidate said insolvent bank and to enforce stockholders liability by and through. liquidating trustees, who shall have the same power to liquidate said bank and to enforce stockholders liability as now vested in the Department of Banking and the Superintendent of Bank, if within 30 days after the filing of the declaration of insolvency articles of trusteeship, executed and acknowledged by 51% or more of the depositors and other creditors in number representing 51% or more of the total of all deposits and claims in said bank shall be filed with the Superintendent of Banks. The articles creating the trusteeship shall be in writing, shall name the trustees and shall state the terms And conditions of said trust and shall become effective when it shall be determined by the Superintendent of Banks that 51% or more of the depositors and other creditors in number representing 51% or more of the total of all deposits and claims in said bank have signed and acknowledged the same. All non-consenting depositors Upon finding that said articles have been executed and acknowledged as herein provided, the Superintendent of Banks shall thereupon transfer all of the assets of the insolvent bank to said liquidating trustees and take their receipt therefor and all duties and responsibilities of the Department of Banking and the Superintendent of Banks as otherwise provided by law . . . shall be assumed by said liquidating trustees https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGARDING LIQUIDATION OF DOSED BANKS NEVADA Section 699. Qualifications of Examiner.- Deputy - Seal. (50) The Governor shall appoint a bank examiner who shall be a person who has had practical banking experience: He shall receive a salary of 44,000 per year, etc In every case where the examiner shall be called upon to settle up the affairs of a bank, in accordance 4ith the provisions of this act, he may, if the circumstances in his judgment liarrant such action, appoint a deputy bank examiner to aid him in carrying out the provisions of this act Amended 1951, Chapter 103, p. 173. Finance from Banking Board. Changes to State Board of Compiled Lays 1929 12 .y. Hillyer, Volume I, 2. 228-9 (Passed 1911) Section 702. Bank Examiner may take charge of bank. Bank may resume. When. (53) Whenever it shall appear to the examiner that apy bank to whicii this act is applicable has violated its charter or any law of the State, or is conducting its bussiness in an unsafe or unauthorized manner, etc ; the examiner may forthwith take possession of the property and business of such baiik and retain such possessio n until such bank shall resume business or its affairs be finally liquidate d as herein provided Section 705 (54). Upon taking possession of theproperty and business of such bmr-14- 1 the examiner is authorized to collect moneys due to such bank and do such other acts as are necessary to conserve its assets and business, and shall proceed to liquidate the affairs thereof as hereinafter provided. The examrier may employ such clerks and assistants and incur such expenses for rent, office supplies and other proper and reasonable expenses as may be necessary in the presentation and liquidation of the business of such bank, etc Amended 1933, Chapter 190, p. 316-7 Section 53. The superintendent of banks may forthviith take possession of the business and property of apy corporation, association, individual, or private banker to which this act is applicable, 7thenever it shall appear that such corporation, association or banker: 1, 2, 3, 4. Upon taking possession, as aforesaid, the superintendent of banks shall retain such possession untilsuch bank shall be placed in condition safely to resume business or its affairs be finally liquidated as herein provided, or until otherwise ordered by a court of competent jurisdiction. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • • LEGISLATION REGARDING LIQUIDATION OF CLCSED BANKS NEVADA - (Continued) Section 54. Upon taking possession of the property and business of such bank, the title to all assets of such bank shall immediately become fully vested in the superintendent of banks. The superintendent of banks is authorized to collect moneys due, etc Amended 155, Chapter 147, p. 524-5, but does not change authority. Chapter 87, 1935, 2.2. 190-1 Section 2. Any banking institution now or hereafter organized under the laws of this State is hereby empowered, on the authority of its Board of Directors, or a majority thereof, to enter into contracts, incur such obligations and generally to do and perform any and all such acts. . as may be necessary or appropriate in order to take advantage of any and all membershi)s, loans, etc., which may at any time be available or inure to banking institutions or to their depositors, creditors, stockholders, conservators, receivers or liquidators, by virtue of those provisions of Section 8 of the Federal Banking Act of 1933 (Section 12B of the Federal Reserve Act, as amended), which established the Federal Deposit Insurance Corporation, and provide for the insurance of deposits, or of any other provisions of that or any other act or resolution of Congress to aid, regulate or safeguard banking institutions and their depositors, etc. Section 3. The Federal Deposit Insurance Corporation created by Section 8 of the Federal Banking Act of 1935 (Section 12B of the Federal Reserve Act, as amended) is hereby authorized and empowered to be and act without bond as receiver or liquidator of any banking institution the deposits in which are to any extent insured by said corporation, and which shall have been closed on account of inability to meet the demands of its depositors, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • NEW N. ki. • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NEW HAMPSHIRE PacI.Lc Laws of New Hampshire, 1926, Volume II., Chapter 266, 2. 1059. Passed 1911 Section 4. Insolvency. Whenever it appears to the Commissioner that the assets of any institution to which this chapter applies are reduced in value below ninety percent of the amount due its uepositors or creditors, the Commissioner shall represent the facts by petition to some justice of the superior court, who shall direct the Commissioner to take possession of the proierty and business of such institution and retain possession of the property and business thereof until it shall resume business, or until its affairs shall finally be liquidated as herein provided; and upon completion of such liquidation the charter of such institution shall be vacated. Section 5. Upon taking possession of the property and business of arv institution to which this chapter ayaies, the commissioner . . . . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I LEGISLATIO14 RECkhDING LIUILATION OF CLOS11) BkAKS NEW JERSEY 1911-24 Cumulative Supplement to Compiled Statutes of New Jersey, Volume I. ka. 121-4 17-24. Proceedings, if bank found unsound by Commissioner of Banking and Attorney-General. 24. Whenever it shall appear to the Commissioner of Banking and Insurance that any bank has violated its charter or any law of this State, or is conducting its business in an unsafe or unauthorized manner, or if any such bank shall refuse to submit its books, , the Commissioner may forthvdth take papers and concerns of such bank, and retain possession and business property of the possession until such bank- shall resume business, or its affairs be finally liquidated as herein provided. On taking possession of the property and business of any such bank the Commissioner shall forthwith give notice The Commissioner may under his hand End offical seal appoint one or more spekAal Assistant Leputy Commissioners of Banking and Insurance, as agent or agents to assist him in the duty of liquidation and distribution and the Commissioner ma:" from time to time authorize a special assistant deputy comEssioner to perform such duties connected with such liquidation and distribution as the commissioner may deem proper 1913, Chapter 17k, p. 291. supervision. kmended 1931 but does not change Compiled Statutes of 1709-1910, Volume I., p. 173-4 29. Insolvency; application to court of chancery for injuncbank unsound, or not, etc. Thenever any bunk shall bereceiver; tion and shall suspend its ordinary business for want of funds or come insolvent, the attorney-general or any creditor or stockholder same, to carry on the of complaint settin, forth the facts and circumbill or may, by ;:,etition to the court of chancery for a writ of injuncdy ap case, stances of the a receiver or receivers or trustees, and the of tion and the appointment may issue by or dtherwise; satisfied affidavit court being from exerand agents its officers and bank an injunction to restrain such receivor from and collecting franchises or cising any of its privileges ing any debts, etc., except to a receiver appointed by the court. 30. heceiver's appointment; powers and duties; "receiver" defined. The court of chancery, at the time of orditaly said injunction, or at any time afterwards, may appoint a receiver or receivers or trustees for the creditors and stockholders of the bank, with full power and authorSty to demand, sue for, collect, receive and take into their possession all the oods and chattels, rights and credits, money and effects, lands and to institute suits as law or in equity and tenements, The word "receiver" as for the recovery of any estate used in this act shall be construed to include receivers and trustees appointed as provided in this act. (1906) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIc.jJIDATION OF CLOSED BANKS NEW JERSEY - (Continued) 1931, R. 23. 17-29, Insolven_gx, etc. 29. Whenever any bank shall become insolvent or shall suspend its ordinary business for want of funds to carry on the same, and the commissioner of banking and insurance shall have refused, upon the demands of apy creditor or stockholder to take possession of the property and business of such bank pursuant to Section 24 of this Act, the Attorney-General, or apy creditor, etc https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LECISMATIOJ 1-CEGAEDING LIQUIDATION OF CLOSED BANKS NEW MEXICO New Mexico Statutes Annotated 1929, Chapter 13, o. 330-1 13-419. Court action for appointment of bank examiner gg receiver - Ex-officio receivers. Upon taking charge of any bank, the State bau., examiner shall, as soon as possible, ascertain by a thorough examination of its affairs, its actual condition, and if he shall be come satisfied that such bank cannot resume business or liquidate its indebtedness to the satisfaction of all of its creditors, he shall make a full and complete report of such examination and his opinion to the Attorney-General who shall institute, fortLAth, proper proceedinas in the proper court for the purpose of having the State bank examiner appointed as receiver to take charge of such bank and wind up its affairs and the business thereof for the benefit of its depositors, creditors and stockholders. Such proceedin,s shall be governed by the provisions of the Leneral incorporation laws for the ,Anding up of insolvent corporations. And the bank examiner, may appoint, with the consent of the district court, special assistant bank examiners and ex officio receivers to assist in the winding up of the affairs of such insolvent banks and such special assistant ban1;. examiners and ex-officio receivers shall qualify by subscribing and filing with the bank examiner an oath in form and substance the same as that required by said bank examiner and giving a bond in such form and amount as may be required by the district court, and for their services as such special assistant bank examiners and exofficio receivers they shall receive such compensation as may be fixed by the bank commissioner subject to approval by the court; such compensation to be allowed by the court as costs in the case of the appointment of a receiver. (1921, Chapter 134) 1935, Chapter 16, 2. 28-9. Section 3. The Federal Deposit Insurance Corporation created by 8 of the Federal "Banking Act of 1933"(Section 12B of the Federal Section as amended) is hereby authorized and empowered to be and act Act Reserve bond as receiver or liquidator of any banking institution, the dewithout which are to any extent insured by said Corporation, and which posits in shall have been closed on account of inability to meet the demands of its depositors. The appropirate State authority, having the right to appoint a receiver or liquidator of a banking institution, may in the court of such closing tender to said Corporation the appointment as receiver or liquidator of such banking institution, and if the Corporation shall have and possess all the powers and rivileges provided by the laws of this State with respect to a receiver or liquidator respectively of a bunking institution, its depositors and other creditors, and be subject to all the duties of such receiver or liquidator, except in so far as such powers, privileges or duties are in conflict with the provisions of subsection (1) of Section 12B of the Federal Reserve Act, as amended (Section 8 of said "Banking Act of 1933") https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NEV. YORK Cahill's Consolidated Laws of New York, 1923, Chapter 3, 22. 41 and 42 (Passed 19_14) Section 57. When superintendent may take possession of delinpuent corporation, banker or 2sysona1 broker. The superintendent may forthwith take possession of the business and property of any corporation to which this chapter is applicable, or any individual banker or personal loan broker, or any private banker to which article four of this chapter is applicable whenever it shall appear that such corporation or banker: 1. Has violated its charter or any law, etc., on down through nine items and two conditions added re savings and loan and credit unions in 1950. Section 57a (1930). When the superintendent may take possession of a foreign banking corporation Section 58. Circumstances onder which possession of superintendent 128.y. terminate. When the superintendent shall have duly taken possession of such corporation, private banker or personal loan broker, he may hold such possession until after its affairs are finally liquidated by him, unless: 1. He shall have permitted such corporation or banker to resume business 2. The superintendent shall have been directed by order of the supreme court to surrender such possession, pursuant to the provisions of Sec. 60 of this article; 3. The stockholders of such corporation, at a meeting called by the superintendent pursuant to the provisions of Sec. 79 of this article, shall have duly determined to appoint and shall have appointed, an agent or agents to continue the liquidation of such corporation and such agent or agents shall have qualified to take possession of its remaining assets as provided in Section 79 of this article. 4. The depositors and other creditors of such banker, or broker and the expenses of such liquidation shall have been paid in full. Section 59. Superintendent may report delinquencies to attornezgeneral to procure 1.124gment of dissolution; reports presumptive evidence. Whenever the superintendent is entitled to take possession of any such corporation for any reason set forth in section 57 of this article, he may report to the attorney-general and specify in sch report the delinquencies https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSLD BANKS itiI YORK - (Continued) of such corporation; and the attorney-general may institute an action to procure a judgment dissolving such corporation. Every such report and every report of a duly instituted examination of such corporation, when duly verified, shall be presumptive evidence of the facts therein stated in any action or proceeding against such corporation instituted by the attorney-general. Section 62. The superintendent may Li certificate, under his hand and official seal, appoint one or more special depay superintendents as agent or agents to assist him in liquidating the business and affairs of apy corporation or private or individual banker or personal loan broker in his possession. The superintendent shall file such certificate in his office Section 79. Superintendent shall call stockholders' meeting after creditors are paid in full, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOIIT11 CAROLISh • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NORTH CAROLINA 1921 Public Laws, Chapter 4, 2. Section 16. Corporation Commission may take charge when: The Corporation Commission may forthv.ith take possession of the business and property of any bank to which this act is applicable whenever it shall appear that such bank: 1. has violated its charter or any laws applicable thereto: 2. Is conducting its business in an unauthorized, etc., through nine conditions. Such banks may, with the consent of the Corporation Commission resume business upon such terms and conditions as may be approved by it. Section 17. Involuntary liquidation, receivers42. If any bank shall neglect or refuse for a period of 60 days o make a report to the Corporation Commission, as it may demand, or shall fail, -_eglect or refuse to comply with the provisions of the section next preceding this one, or if at any time the Corporation Commission shall find bank, or other institution subject to its supervision in an insolvent condition, or if such institution shall neglect or refuse to correct any irregularities through. violation of this act, which may be called to the attention of the president, cashier or board of directors, the Corporation Commission shall have authority to take charge of such institution, and if upon investigation it appears to be to the interest of creditors, depositors, and stockholders that a receiver should be appointed, it may apply to the court for the appointment of a competent person as receiver. Any receiver so appointed, before entering upon his duties, shall execute a _;ood and sufficient bond in some bonding company authorized to do business in North Carolina, which bond shall be approved by the court. Such receiver, under the direction of the court, shall take possession of the books, moneys, records, and assets of every description of such institution, and collect all debts, dues and claims belonging to it, and upon order of the court may sell or compound all bad or doubtful debts, and on like orders may sell all real or personal )roperties belonging to such bank and upon such terms as the court may approve or direct, and, if necessary to pay its debts, the receiver may enforce the individual liabilities of the stockholders. A suit for such purpose, etc Section 19. Receivers, powers and duties of. That article 10 of the consolidated Statutes, relating to receivers, when not inconsistent with the .11-ovision of this act, shall apply to receivers appointed hereQ under. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LII:UILATIOA OF CLOSED BANKS NORTH CAROLINA - (Continued) Section 17 as given above amended 1927, chapter 113, pp. 351-60, being Section 218(c) of Consolidated Statites 1927. Laws of 1927, Chapter 115, 2. 551, Section 1. Section 218(c). (1) Whenever any state bank shall neglect or refuse for a period of 60 days to make a report to the Corporation Commission, as it may demand, or shall, after demand, under seal of the Corporation Commission fail, neglect or refuse to comply with any J: the rules, regulations or requirements of the Corporation Commission, or theprovisions of the banking law, or if at any time the Chief State Bank Examiner shall find a bank subject to the supervision of the Corporation Commission, in an insolvent, unsafe or unsound condition to transact the business for which it as organized, or etc., the Corporation Commission through the Chief State Bank Examiner, or any duly authorized agent of the Corporation Commission appointed under seal of the Commission, shall forthwith take possession of such Dank and all of its assets and business and shall retain possession thereof until such bank shall be authorized by the Corporation Commission to resume business, or its affairs shall be fully liquidated as herein provided, or possession thereof shall have been surrendered under order of a judge of the Superior Court under the pfovisions of this section. (2) Any bank may place its assets and business under the control of the Corporation Commission for liquidation by resolution of a majority of its directors upon notice to the said plief State Bank Examiner, and upon taking possession of said bank, the Chief State Bank Examiner, or duly authorized agent shall retain possession thereof until such bank (5) When the Corporation Commission, through the Chief State Bank Examiner, or duly appointed agent, shall take possession of any bank under paragraph (1) or (2) hereof, he shall, within 48 hours, file with the Clerk of the Superior Court in the county where said bank is located, a notice of his action which shall state the reasons therefor; and such notice shall be deemed the equivalent of a summons and complaint, etc. Section 218(e). Subsection 7. Collection of debts and claims; sale or compromise of debts. Claims: - Upon taking possession of the assets and business of any ban:: by the Corporation Commission, the Chief State Bank Examiner, or the duly appointed agent, is authorized to collect all moneys due such bank, and to do such other acts as are necessary to conserve its assets and property, and shall proceed to liquidate the affairs thereof as hereiDafter provided. The Chief State Bank Examiner, or the duly appointed agent, shall collect all debts due and claims belonging to such bank, by suit, if necessary; and, by motion in the pending action, qnd upon authority of an order of the presiding or resident judge of the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -5LEGISLATION REGARDING EIL,GIDATION OF CLOSED BALKS NORTH CAhOLINA - (Continued) under said authority. * Upon the district may sell, compromise motion made, the bank or any person interested, may be heard, but the judge hearing the motion shall enter his order 1951 Laws, Chapter 215, .,. k69. Section 216(e), reenacted ac follows: "Artilce 10, Chapter 22 of Consolidated Statutes rel ting to receivers, when not inconsistent with the provisions of section 216(c) shall apply to liquidation of insolvent banks". Chapter 22, Article 10. aeceivers. 1208. Appointment and removal. When a corporation becomes insolvent or suspends its ordinary business for want of funds, or is in imminent danger of insolvency, or has forfeited its corporate rights, or its corporate existence has expired by limitation, a receiver may be appointed by the court under the same regulations that are provided by law for the appointment of receivers in other cases; and the court may remove a receiver or trustee and apdoint another in Lis jlace or fill any vacLuicy 1931, Chapter 243, J. 249. An act to create the office of Commissioner of Banks and to provide for maintenance of the Banking Department. Section 4. All the powers, duties and functions no vested in or exercised by the Corporation Commission of North Caroliaa, A.th respect to bank and etc. Section 5. Chapter 4, Public Laws of 1921 . . . . and all amendments thereto, and all Public acts of the General Assembly estaolishing or declaring the law relating to banks or banking, are hereby amended conformably to this act and where, in any parts, sections, or clauses of said laws and amendments thereto, reference is made to the "Commission", Commissioner", Corporation Commissioner", . . . Chief state Bank Examiner . . . . the "Corn* Added in 151. Upontaking possession of any bank under this act the Commissioner of Banks and/or the duly appointed agent shall have the possession and the right to the possession of the oroperty, assets, choses in actions, rights and privileges of the said bank including . . . . and such property rights and privileges shall Vest in the said Commissioner and/or' duly appointed liquidating agent absolutely, for the purpose of liquidating and sales and conveyance of the same, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -4 - LEGISLATION RE:CARLING LI(4[LDATI3N OF CLOSE.a BrS NORTH CA.i'LLINA - (Continued) missioner of Banks" is substituted in lieu thereof 1935, Chapter 81, Re FDIC, 2. 88 Section 4. That subsection 8 Section 218(c) of ConsoliOated Statutes of North Carolina as amended be and the same is hereby amended by changing the period after the word "bond" in the last line of said paragraph to a semicolon and adding the following proviso: "Provided; that where such bank under this section is taken possession of by the Commissioner of Banks, he may, in his discretion with the approval of the Advisory Commission to the Commissioner of Banks, appoint as his agent with the powers, duties and responsibilities of such agent under this Section, the Federal Deposit Insurance Corporation or any corporation or agency established under and by virtue of the laws of the U. S. of America which is estallished for the purposes for which the said FDIC was crested under the Banking Act of 1955, enacted by Congress; and provided further that such appointment may be made when and only when the liabilities of such bank to its depositors are insured by said corporation or agnecy, either in whole or in part. In the event of such appointment such corporation or agency with the approval of the Commissioner of Banks, may serve as such agent without giving the bond reqiured under all other circumstances in this subsection." Section 5. That all laws and clauses of laws in conflict with this act be and they are hereby repealed to the extent of such conflict .. .. Ratified 3-11-55. 1935 Chapter 231 R2. 252-3. Adios subsection to 218(c): "on and after the first day of January, Section 1 1935, the drovisions of this act shall apply to all banks included in the definition or classification of banking institutions under this chapter, and/or anyamendment thereto, which at said time shall be liquidated exclusively in accordance with the provisions of this act and by said Banking Commissioner. The liquidation of said banks shall be made strictly in accordance yith the terms of Section 216(c) and the words "Competent local attorneys", s,s set forth in subsection 16 of said act shall be defined to be any attorney or attorneys resident of the county in which the Bank is being liquidated". Section 2. All receivers, having in charge the liquidation of banks under any order of court and/or having in possession any of the property and/or assets of any bank, are hereby required to turn over the possc:Lion thereof and the possession of all books, papers, accounts, reports and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -5 - LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NORTH CAROLINA - (Continued) othcr things pertaining to the said banks or their liquidation to the Commissioner of Banks or his authorized agent. Section 3. On or before January 1, 1955, any receiver and/or receivers now liquidating banks, and/or al.:pointed receiver by order of any court in this St-te, whether the said liquidation has been completed or otherwise, except where the said receiver has filed his final report and the same has been approved by the Court, and all matters in connection with the said liquidation have been closed, shall file, in the office of the Clerk of the Superior Court of the county in which said proceeding is pending, a full and complete final report covering in detail his transactions with reference to the liquidation of the said bank, and reporting fully and in detail matters remaining unliquidated, together with the status thereof. In any suits and proceedings brought by the said receiver, and in all pending litigations in which he may be a part, the Commissioner of Banks shall be substituted wherever such substitution may be necessary for the proper conduct of the said suit or the said proceeding, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L-EGISLATION REGLI-IING LICUILATION OF CLOSEL HANKS NORTH DAKOTA Supplement to the 1913 Compiled Laws of North Dakotpj 1913-25, Sec. 5189, 2. 1055 Section 5189. Insolvent; when. A bank shall be deemed insolvent: 1. When the actual cash market value of its assets is insufficient to pay its liabilities; 2. when it is unable to meet the demands of its creditors in the usual and customary manner; 3. when it shall fail to make good its reserve as required by law; 4. when it shall fail to comply with any lawful order of the State banking board within any time specified therein; but its property shall not be subject to attachment or levy, nor shall a receiver be appointed during such reasonable time as the State examiner may require for examination. After such examination, if the State examiner shall deem best he shall with the approval of the .D.tate banking board appoint a receiver who shall take possession, under the direction of the State examiner, of books, records, and other property, collect the debts, sell or compound bad or doubtful ones, and sell all corporate property on such terms as the State examiner shall direct, and when necesaary .ay corporate debts and enforce the individual liability of stockholaera. he saa-11 pay over. etc. 1927, Chapter 99, 2. 99-102. "An act relating to Banking, regulating the administration of the affairs of insolvent banks, providing for their liquidation", etc. 1. The Supreme Court of the State of North Dakota is hereby given, and requested to exercise, original jurisdiction of the insolvency proceedings to liquidate and wind up the affairs of all insolvent State banks within the State, at the time of the taking effect of this act, and all such as may become insolvent during its continuance 5. Upon the taking effect of this act, the Supreme Court shallappoint a Court Commissioner who shall have all the qualifications prescribed by law for a Judge of the Supreme Court to whom it may refer any matters committed to the jurisdiction of the Court by this act, who shall act for qnd on behalf of the Supreme Court in hearing evidence, finding facts and making orders in any matter arising in connection with the action or actions instituted in such court under the provisions of this Act. Etc 8. Receiver; appointment of: superseding other receiver. Upon the filing of the complaint aforesaid the Court shall appoint a receiver, or two joint receivers, of all said insolvent banks, which receiver shall have all the powers and authorities ordinarily possessed and exercised by receivers of insolvent corporations or prescribed by statute and the Court shall have all the power and authority with regard to the administration https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION BEGABLING LIQUIDATION OF CLOSED BANKS NOBTH DAKOTA - (Continued) and closing of the affairs of such banks as are ordinarily possessed and exercised by courts of equity over the affairs of insolvent corporations. If upon a hearing on an issue raised by answer to the complaint, it shall be established that any bank proceeded against is not insolvent, then the receiver shall be deemed to have been a temporary receiver, and shall account and be discharged accordingly as to such bank, in all other respects the receiver shall be deemed to be a permanent receiver. The receiver so appointed by the Court shall supersede and sup_lant any receiver theretofore appointed by the Banking Department, or by any other court, or any examiner or officer of the Banking Department that may be in charge of any such banks, but until the receiver appointed under this act shall take possession of any such bank the receiver, or other officer already in charge, shall continue, and it shall be his duty to protect, conserve and administer its affairs to the best of his ability, and he shall remain liable under his bond for all of his acts committed prior to being finally relieved of his trust. 1931, Chapter 96. "An act to provide for the government and regulation of banking within the State of North Dakota, to provide for the organization and operation of State banking associations, the administration of insolvent State banking associations and repealing sections" etc., but it does not change the appointment of receivers. 1935, Chaoter 71, p. 90. Section 3. Powers, duties, orders, receivers. The State Banking Board shall have, and it is hereby vested with, the power to make such rules and regulations The said Board, except as otherwise herein provided, is hereby vested rith the power and authority to appoint, by its own order, receivers for insolvent corporations as defined in this act, and such receivers shall have the same power and authority, and their acts the same validity as if appointed under and b7 the direction of a district court, but nothing herein contained shall be construed so as to take avigy from the courts the power to appoint receivers of such institutions at any stage of the proceedings and thus terminate the receivership ordered by the Board. 1933, Chapter 72, repeals Chapter 99, 1927_ Reenacting section 1 as section 2 with the district court of the county in which the bank is located substituted for the Supreme Court of the State of North Dakota, with the clause "and the judges thereof shall be subject to review by the Supreme Court in the manner now or hereafter provided by law". https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 3LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS NOETh EAKOTA - (Continued) Old Section 5 is omitted entirely. Burleigh Munty has special , legislation separate from the rest of the State. Section 10. Appointment of Temporary Receiver. If it shall appear to one of the judges of the District Court of Burleigh County, or to the judge to whom the affairs of an insolvent banking institution have been referred, that it would be advantageous and of benefit to appoint a temporary receiver to take charge of the remaining assets of said insolvent institution pending an application to reorganize Or to liquidate, or for the purpose of making final disposition of the assets by the bank examiner, the court shall have power to appoint a receiver for such purpose and such receiver shall have the usual powers conferred upon receivers of insolvent institutions and he shall handle the affairs of said insolvent institution under t..e order and direction of said court, and the court shall fix his compensation for such services. The same person may be temporary receiver of any number of closed banks in the same couPty. Section 12. Appointment of Eeceiver. Whenever any bank shall hereafter be closed as insolvent, any three or more depositors may petition the District Court of Burleigh County for the appointment of a receiver. Said petition shall set forth all the jurisdictional facts and a full report of the condition of the affairs of said bank so far as known, including a. list of the depositors, their residence, and the amount of their several deposits. If said court is satisfied as to the truthfulness of said petition he shall appoint a receiver for said bank with full power to liquidate the same and shall fix the salary of said receiver. The same person may be receiver of any nuMber of closed banks in the same county. Section 14. Reference to Other District Judges. The judges of said District Court of Burleigh County are hereby directed and empowered to refer to the judges of the district courts of the judicial district wherein the insolvent banking institution is located all matters to be heard and tried and the control of the receiver appointed as herein provided and said matter shall from the time of reference be ,d.thin the control of said district judge to whom it is referred. Section 15. Liquidating Committee. At any time within thrity days after any receiver shall have been appointed for any bank hereafter to become insolvent, as provided for in the preceding section, depositors representing 51% of the deposits may select a liquidating committee of five, four of whom shall be elected from the depositors and one selected by the stockholders, and when said committee has been selected they may petition the district court of the county wherein said bank is closed, and to whom said matter has been referred, for the appointment of said liquidating committee as the receiver of said bank and when so appointed said committee shall have the powers of a general receiver and shall corn- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -4 LEGISLATION REGAhDING LIQUIDATION OF CLOSED BANKS NORTH DAKOTA - (Continued) qlete the liquidation of said bank under the control and upon the approval of the court, and thereupon the prior receivership shall be discharged. Said liquidating committee shall receive such compensation as may be fixed by the court and shall be authorized to have such assistance as may be deemed necessary and as the court may approve to complete said liquidation and the compensation to be paid to such persons so selected shall be subject to the approval of the court. 1935, Chapter 95, Section 3, R. 104. ReceiYLLg: Liquidation. lhe Federal Deposit Insurance Corporation created by Section 8 of the Federal "Banking Act of 1963" (Section 12B of the Federal aeserve Act, as amended) is hereby authorized and empowered to be and act without bond as receiver or liquidator of any banking institution, deposits in which are to any extent insured by said Corporation, and which shall have been closed on account of inability to meet the demands of its depositors. The appropriate State authority, having the right to appoint a receiver or liquidator of a banking institution, may in its discretion, in the of such closing tender to said Corporation the appointment as receiver or liquidator of such banking institution, and if the Corporation accepts said appointment, the Corporation shall have and possess all the powers and privileges provided by the laws of this State with respect to a receiver or liquidator respectively of a banking institution, its depositors and other creditors, and be subject to all the duties of such receiver or liquidator. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGIbLaTION REGEPWING LIQUIDATION OF PLOSED bAAKS Throckmorton's Ohio General Code 1926, Chapter $, Sec. 710-89,94,95, lp. 257-8 710-89. Superintendent pay take possession of bank, when -- The superintendent of banks may forthwith take possession of the business and property of any bank to which this act is applicable, whenever it shall ap• pear that such bank 710-94. Special dputy aaperintendents; appointment of. -- The superintendent of banks may under his hand and official seal appoint one or more special deputy superintendents of banks as agent or agents to assist him in the duty of liquidation and distribution, a certificate of such appointment to be filed in the office of the superintendent of banks and a certified copy in the office of the clerk of the county in which the office of such bank was located. The superintendent of banks shall require from such agent or agents such surety 710-95. Powers and duties after taking poissession. Upon taking possession of the property and business of such bank, the superintendent of banks is thereby authorized to collect money due to such bank, and to do such other acts as are necessary to preserve its assets and business and shall proceed to liquiciate the affairs thereof, as hereinafter provided 1929, Volume 113, 2. 304 amends 710-89 by adding in the last paragraph: "Such bank may with the consent of the superintendent of banks , resume business upon such conditions as may be approved by (the court of common pleas in and for the county in which such bank was located".) 1933, R. 129-137. Section 710-88a. Oonserva4or appointed,. when; etc. Whenever thc superintendent of banks shall deem it necessary, in order to conserve the assets of any bank for the benefit of the depositors and other creditors thereof, he may appoint a conservator for such bank, and fix his compensation, may remove him at any the, and may, of he deems it advisable, require of such conservator such bond or security as he deems it advisable, etc. 1933, 2. 135. Section 710-94. Amended to require copy certificate of appointment to be filed in the office of the clerk of the court of common pleas in which the proceedings for the liquidation of such bank are pending. Such speciEl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION L'riGkflaNG LIQUIDATION OF CLOSED BANKS Ohl() - (Continued)_ deputy superintendent of banks may execute, ackmnledge and deliver any and all deeds, assignments, releases or other instruments necessary and proper to effectuate any sale or transfer or encumbrance of real estate or personal property; and any deed, etc. The superintendent of banks may also employ such assistants, agents clerks, auditors and examiners as he may deem necessary in connection with the liquidation and distribution of the assets of any such bank Section 710-95. (Entirely rewritten and much more in detail). The superintendent of banks, uoon taking possession of the business and property of any bank, shall have, exercise and discharge the following powers, authority and duties, without notice or approval of court, but subject to the provisions of this chapter to wit: 1 - 10. upon application to the court of common please in which the proceedings for the liquidation of such bank are pending 1-5 items. 1935, 2. 98 Section 710-89d. Upon taking possession of the business and property of any such bank, the deposits of which shall be to any extent insured by the Federal Deposit Insurance Corporation or any similar Corporation that, may be organized under the laws of the United States, and it shall appear to the superintenaent of banks that the Federal Deposit Insurance Corporation or such other Corporation will accept the duty of liquidating such bank, the superintendent of banks may thereupon appoint without bond the Federal Deposit Insurance Corporation or any similar corporation that may be organized under the laws of the United States to be and to act as receiver for such banks, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS OKLAHOMA Oklahoma Statu,ps ,1931, Chapter 40, Article 6, R,L. 170-2. Passed 1921 9172. Commissioner to -iind up affairs of insolvent banks. Whenever any dank or trust company organized or existing under the laws of this State shall voluntarily place itself in the hands of the bank commissioner, or, whenever any judgment shall be rendered by a court of competent jurisdiction, adjudging and decreeing that such bank or trast company is insolvent, or whenever its rights or franchises to conduct a banking business under the laws of this State shall have been adjudged to be forfeited, or whenever the bank commissioner shall become satisfied of the insolvency of any such bank or trust company, he may, after due examination of its affairs, take possession of said bank or trust company and its assets, and proceed to wind up its affairs and enforce the personal liability of the stockholders, officers and directors. 9173. Failed banks - liquidation - procedure. In the event that the Bank Commissioner shall proceed to wind up the affairs of any bank or trust company, as provided for in Section 4165, Compiled Oklahoma Statutes Annotated 1921 (9172) the Bank Commissioner may appoint such liquidating agents, attorneys and employees as may be necessary to assist in the liquidation of the assets of aaid bank. Such liquidating agents shall, before entering upon the duties of their office, execute to the State of Oklahoma a fidelity bond in such amount as the Bank Commissioner shall designate, such bond to be approved by the Bank Examiner and filed in his office, etc. 1935, Chapter 40, Article 3, Insolvencyl o. 197 Section 3 Insolvenci - liauidating agents - Federal Deposit Iasurance Corporation - Powers. The l'ederal Deposit Insurance Corporation is hereby authorized and empowered to be and act without bondas a liquidating agent of the State Bank Commissioner for any closed banking institution, the deposits in which are to any extent insured by said corporation, and the State Bank Commissioner shall have the right and authority in the case of any closed banking institution, to tender to said corporation the appointment as liquidating elgent for such closed banking institution. Upon the acceptance of such appointment the said Corporation shall have and possess all the duties, powers and privileges granted by the laws of this State to individual liquidating agents, attorneys or employees designated by the State Bank Commissioner except insofar as such powers, privileges and duties are in conflict with the provisions of Section 12B of the Federal Reserve Act as amended (Sec. 8 of the Federal "Banking Act of 1933"). Said Corporation shall he entitled to compensation for its services as such liquidating agent, in an amount approved by the State Bank Commissioner and not in excess of amounts which individual liquidating agents, employees and attorneys might reasonably have been entitled to for their services in liquidating the same institution. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION hEGARLING LIUILATION OF CLOSED iKS OftEGOli Oregon Code Annotated, 1060, Volume 2, Chapter XIX. 2p. 2012-4. Passed 1925 22-1904. Superintendent baking possession. Administration of assets. Whenever in this act it is provided that the superintendent of banks may take possession of the property and business of any bank or trust company doing business under the provisions of the laws of this State, to liquidate its affairs, the superintendent of banks shall take possession of and administer the assets of such bank or trust company as herein provided. 22-1905. Injunction against, superintendent Ials . lng possession. At any time within 10 days after the superintendent (:)• banks has taken possession and control of the property and business of any bank or trust company for any cause specified in this act, such bank or trust company may apply to the circuit court of the county in which the principal office of such bank or trust company is located for an order requiring the superintmdent to show cause why he should not be enjoined from continuing such possession. The court may, upon good cause shown, direct the superintendent to refrain from further proceedings and to surrender such possession. 22-1906. Ao receiver shall be appointed by any court, nor shall any deed of assignment for the benefit of creditors be filed in any court within this State, for any bank or trust company doing business under the laws of this State, except upon notice to the superintendent of banks, unless in case of urgent necessity it becomes in the judgment of the court, necessary to preserve the assets of such bank or trust company. The superintendent of banks may, within five days after the service of such notice upon him, take possession of such bank or trust company, in which case no further proceedings shall be had upon such application for the apoointment of receiver or under such deed of assignment, or, if a receiver has been appointed or such assignee shall have entered upon the afiministration of his trust, such appointment shall be vacated or such assignee shall be removed upon application of the superintendent of banks to th proper court Lherefor and the superintendent of banks shall proceed in all such cases to administer the assets of such bank or trust company as herein provided. (1925) 22-2005. Deputies - Power to appoint and remove - Bond - Oaths. The Superintendent of Banks may, under his hand and official seal, appoint one or more deputy superintendents of banks, as agent or agents to assist him in the duty of liquidation and distribution of the assets of an insolvent bank or banks or assist him in other duties of his office, a certificate of appointment to be filed in the office of the Superintendent of Banks, and a certified copy in the office of the Secretary of State. Such appointment shall remain effective during the pleasure of the superintendent of banks, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -2- 1933, Chapter V. 22-529a. Federal Banking Laws - Obtaining benefits authorized Membership in Federal Deposit Insurance Corporation. Every bank or trust company now or hereafter organized and existing under the laws of this State hereby is permitted, empowered and authorized to do and perform any and all acts and things necessary to obtain the advantages and benefits of or to comply with any of the provisions of the banking act of 1953 of the United States and any amendments thereto 22-529b. Member of Federal Deposit Insurance Corporation closlag - Subrogation. Should any bank or trust company close and the assets thereof come into the hands of the superintendent of banks for liquidation, while such bank or trust company is entitled to the benefits made available by membership in the said Federal Deposit InsuranLe Corporation, the said Federal Deposit Insurance Corporation shall be subrogated to all rights of depositors against such bank or trust company and shall be entitled to receive the same dividends from the proceeds of the assets of such closed bank or trust company as would have been payable to such depositors, until such dividends shall equal the insured deposit liability tosuch depositors, whereupon all further dividends shall be payable to such depositors. (1933) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIOIDATION OF CLOSED BANKS PENNSYLVANIA State laws of 1925, 2. 819 and 822 Section 21. Power of becretary to take possession. The secretary may, after hearing had upon notice given, with the approval and consent of the Attorney General, take possession of the business and property of any corporation or person subject to the supervision of the department, whenever it shall appear to him that such corporation or person: I. Has violated any law regulating its or his business, etc. Through IX. IX. Is in the hands of a receiver appointed by any court, or in any bankruptcy proceeding, or of an assignee or trustee for creditors appointed by such corporation. The secretary may, in like manner, take possession of the business and property of any private or unincorporated bank, otherwise exempt from the supervision of the department, whenever sdch private or unincorporated bank shall have made an assignment for the benefit of creditors or confessed tts insolvency. Section 28. Surrender of Possession 12,y. Secretor, . The secretary may, won conditions approved by him, surrender possession for the purpose of permitting such corporation or person to resume business, to sell or convey its or his property and franchise, or to merge or consolidate its or his business with that of another corporation or person in accordance with the laws of this Commonwealth; ':)ut shall not authorize any decrease in capital stock by a corporation except u)on compliance by the corporation with the provisions of law as to such decrease. Whenrnrer the secretary shall surrender possession under the provisipns of this section, he shall forthwith issue an order, under his official seal, authorizing such corporation or person to resume business, to sell or convey its or his property and franchises, or to merge or consolidate as aforesaid, and shall file said order in his office, and cause a certified copy thereof to be filed in the office of the prothonotary, who shall thereupon cause the entries upon the jud ment index made pursuant to section 22 of this act to be cancelled. Section 29. Status of Secretary as Aeceiver. Except as herein otherwise provided, the secretary shall, when he has taken possession of the business and property of a corporation or person, have all the rights, powers and duties of a receiver appointed by any court of equity in this Commonwealth; and he shall be vested, in his official capacity, with all the property of such corporation or person, including debts due, 1,iens, or securities therefor and rights of action or redemption. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S -2- He shall be the representative of the creditors of the corporation or person and entitled, as such, to have vacated and set aside, for the benefit of the creditors, any judgment, execution, attachment, sequestration, payment, pledge, assignment, transfer, conveyance, or encumbrance, which could have been avoided by the creditors or any of them, or by which it is attempted to give any creditor unlawful preference over another. He may, with leave of court obtained on petition after notice to all creditors of whom he has knowledge, surrender to the corporation or person any assets, including choses in action, whether the subject of pending proceedings or not, which are burdensome and of no advantage to creditors. Cumulative Supplement, Pennsylvania Statutes, 1928 for 1927 amendments: Section 21 (1305a-21) amended in last paragraph, after "unincorporated bank", (in second line), "or the estate of any private banker", is added and at end of paragraph the words "confesses its insolvency" are omitted and the clause "for any of the causes mentioned hereinbefore in this section" is added. Section 28 (1305a-28) is amended by graph e:fter "in accordance with the laws of "or because he is without funds to continue property of which he has taken possession"; omitting the word "cancelled" and inserting inserting in the first parathis Commonwealth", the clause or liquidate the business and and at the end of the section "satisfied". Section 29 (1305a-29) is amended by adding following the first semicolon after "in his official capacity, with all the ", "rights, powers, and duties of such corporation or person and with all the;" and at the end of the first paragraph adding; "whether or not the property of such corporation or person, including debts due, liens, or securities therefor, and rights of action or redemption, are held in the name of such corporation or person, or in the name of some other corporation or person, but actually the property of the corporation or person of which, or by whom the secretary has possession." 1931 Laws. Section 28 is amended: Session of 1931, Section 28, p. 194. Surrender of possession hz Secretary. The secretary may, upon conditions approved by him, surrender possession (for the purpose of permitting such corporation or person to resume business, to sell or convey its or his property and franchise, or to merge or consolidate its or his business with that of another corporation or person in accordance with the laws of this Commonwealth, or because he is without funds to continue or liquidate the business and property of which he has taken possession; but he shall not authorize airy decrease of capital stock by a corporation except upon compliance by the corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • - 2with the provisions of law as to such decrease) in all cases, prior to liquidation and final distribution, for the reasons and purposes and in the manner following, (a) because he is without funds to continue or to liquidate the business and property of which he has taken possession; or (b' to permit to be carried into effect a special plan of liquidation, reorganization, and/or rehabilitation submitted by such corporation or person and assented to by creditors whose claims, as certified by the secretary, aggregate not less than 90 per centum in amount, and not in number, of the total claims certified by the secretary to be due by such corporation or person; provided such special plan has been approved by the court, excepting in cases of building and loan associations as to which the assent of 51 per centum in amount, and not in number, of the total claims so certified by the secretary shall be sufficient; or (c) 7vhere such corporation or person has been found to be solvent, for the purpose of permitting it or him to resume business; or (d) to permit such corporation or person to transfer and convey, for what the secretary may determine to be a good and sufficient consideration, a part or parts of its or his business, property, moneys, credits and other assets to a corporation, existing or to be formed, or to a person; the said business, property, moneys, credits and other assets in question to be transferred and conveyed, except as the secretary may specify otherwise in the order filed by him in the office of the Prothonotary as hereinafter provided, for, free of all claims against and general liens thereon. The corporation or person taking over the said business, property, moneys, credits and other assets shall pay for the same at appraised values approved by the secretary. The said payment may, with the approval of the secretary be met by making available, on demand, to depositors, and/or other creditors of the transferor corporation or person, funds on deposit with the transferee corporation or person, provided that the last named corporation or person is empowered to engage in or is actually engaged in the business of a bank of deposit under the supervision of the Secretary of Banking, and when the payment is so met, such funds shall be paid by the transferee corporation or person to said depositors and/or other creditors of the transferor corporation or person prorata according to their claims and in such percentages thereof or amounts as may be determined by the secretary. The secretarymay retain possession of any balance of assets not transferred and conveyed as aforesaid, or he may stipulate as a condition to his approval of a partial transfer, that the balance of assets shall be transferred and conveyed to such number of trustees, as the secretary may designate, for the purposes of liquidation and distribution of the proceeds to those entitled in accordance with the laws of this Commonwealth. In the event the secretary determines to transfer the said balance of assets to such liquidating trustees, they shall be chosen by the creditors and stockholders of such corporation or person at an election, called for that -purpose by the secretary, to be conducted under his supervision and subject to his approval; the electors to be listed by the secretary, and each creditor to vote according to the amount due to him as it may appear on the secretary's list, and each stockholder to have one vote for each share of stock held by him; the creditors as a group and the stockholders as a group each to elect such number of all of the trustees as the secretary may designate, but in no case shell the number of trustees designated by the secretary, to act for and be elected by the creditors, be less than two-thirds of the total number of trustees to be elected.) The secretary's certificate as to such designation and the result of the election filed in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -4the office of the prothonotary shall be conclusive. The balance of assets remaining in the hands of the secretary or transferred to such liquidating trustees, may, if, in the judgment of the secretary as certified in the ord der filed by him in the office of the prothonotary and hereinafter provide ao the assets for, the circumstances of the prior sale of the other part of rs in favor credito other over claim ed a preferr to subject made be , require condition the of the purchaser of such other part of the assets, coupled with that should the portion of the assets previously sold fail to realize in the hands of the purchaser the full purchase orice paid therefor, the secretary, or such liquidating trustees, will make good out of the assets in his or their possession the deficiency: Provided, That a claim for such deficiency be made and proved within one year from the date of the transfer; and provided also that if the assets previously sold should realize more than the amount paid therefor, the surplus shall be paid to the secretary, or to snch ry, liquidating trustees, to be added to the fund in the hands of the secreta or such liquidating trustees, for distribution to those entitled under the law to the assets remaining in his or their possession. The secretary and/or such liquidating trustees shall have the right to lease real estate belonging to such corporation or person for such terms and on such conditions as may to him or them seem most advantageous to the estate in his or their possession, and to sell and dispose of the assets and property of such corporation or person, and to make other contracts which, in his or their judgment will prove helpful in carrying into effect the conditions and terms under which the secretary surrenders possession, assist in the liquidation and disor which, in his or their judgment, to the proceeds of the property law the under d entitle to those tribution or transferred to the liquidating ry, secreta the by d and the assets retaine nce with law. in accorda ution distrib and tion trustees for liquida The secretary may require the liquidating trustees to report to him, from time to time, regarding the liquidation and distributions conducted by them, and, if he is not satisfied with the conduct of the trustees in those and in the regards, the secretary, by certificate duly filed in his office take possesoffice of the prothonotary, may cancel the surrender and again in the hands then assets other and credits sion of all the property, moneys, nce with law. of the trustees for liquidation and distribution in accorda provisWhenever the secretary shall surrender possession under the l officia his under order an issue th forthwi ions of this section, he shall busThess, to sell seal, (authorizing such corporation or person to reume or consolidate as merge to or ses, franchi and y or convey its or his propert which, and the under terms and ons conditi the aforesaid l) stating therein file said order shall and ion, possess ered surrend purposes for which, he has be filed in the office in his office, and cause a certified copy thereof to whole estate, shall of the prothonotary, who, if the sui render is of the pursuant to section thereupon cause the entries upon the judgment index made thereupon be dis22 of this act to be satisfied, and the secretary shall https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -5 charEed from all further liability in the premises. Whenever the secretary makes a surrender under this section he shall file in court on account of this administration of the estate to the date of the surrender, showing its then present status, all receipts in cash and expenses incurred, including fees paid out of the fund to attorneys and others; but neither the audit of the account, nor the adjudication of questions there arising, shall be permitted to hinder or delay the carrying into effect of the conditions and terms of the surrender of possession. when such account is filed and adjudicated, the balqnce on hand shall be awarded by the court to creditors and others entitled thereto under the law: Provided, That if, on final liquidation and distribution, the assets of any corporation or person should prove insufficient to pay in full all claims against the corporation or person, nothing in this section contained and no action taken pursuant to the provisions hereof shall operate to relieve stockholders of such corporation from their liability, if any, under the act of May 11th, 1874 (Pamphlet Laws, 155), number 68; Provided further, That liquidating trustees named under this section, shall have all the rights to enfdirce the individual liability of such stockholders as are conferred on the secretary under section 57 of the act of June151 1925 (Pamphlet Laws, 809). The secretary shall not authorize any decrease of capital stock by corporation affected by the provisions of this section, except upon coma pliance by the corporation with the provisons of law as to such decrease. 1932 Special Session, Lp. 8 and 9. Section 29 is amended 121 adding: "He may enter into leases for real estate belonging to the corporation or person for a period not to exceed three years, upon such terms as may be acceptable to him, without leave of court; and with leave of court may enter into leases for such property for a term not exceeding ten years. "He may, by agreement in writing with the mortgagor and without leave of court, extend the period for the payment of a mortgage on real property for a period not to exceed three years upon such terms as may be acceptable to him. "He may, without leave of court, borrow money from the Reconstruction Finance Corporation and any other agency of the United States Government or Commonwealth of Pennsylvania, for the purpose of assisting him the liquidation of the corporation or person, and to expedite the distri, tion of the assets thereof to the depositors and creditors of such corpora tion or person, and pledge as security for the loan of such funds any personal property or real estate of such corporation or person." 1935, Act No. 140, p. 508 and 311, under Section 1001. Powers of Banks, Bank and Trust Lompanies, or Trust Companies. A(16); and under Section 1202. Powers of Savings Banks. (11) the follodng paragra,,h: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -6- "To become a member of the Federal Deposit Insurance Corporation in accordance with the provisions of the Federal Banking Act of 1953, approved the 16th day of June, 1933, its amendments and supplements, or of any other corporation, hereafter organized by the United States for the purpose of insuring deposits in savings banks (banks or bank and trust companies) and to purchase and hold so much of the capital of the Federal Deposit Insurance Corporation, or of such other corp,ration, as All qualify it for membership therein." https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGAhLING LIt4IDATIUN U GLOSEL ithODE ISLAND Geaeral Laws of Rhode Island, 1225, Title XXV, Chapter 274, .22. 1196-6. (4025) Section 7. If upon examination any corporation subject to the provisions of this title appears to be insolvent, or its condition such as to render the continuance of its business hazardous to the public or to those havingsfunds in its custody, the bank commissioner, with the approval and consent in writing of at least one other member of the board of bank incorporation, shall immediately take possession of said corporation and its assets; and said commissioner may apply to the superior court for the county in which said corporation is conducting its business for the appointment of himself or the deputy bank commissioner, either or both, a receiver or receivers thereof, and for an injunction to restrain such corporation, in whole or in part, from further proceeding Tith its business, and said court shall have jurisdiction in equity of such application. The court may appoint such receiver or receivers to take possession of the property and effects oS such corporation subject to such directions as may from time to time be prescribed by the court, and the appointment of said receiver or receivers shall rest in him or them all the right, title and interest of such corporation in and to its property and effects, and shall vacate and dissolve all attachments or liens thereon, created by or bbtained in or pursuant to any suit or proceeding at law or in equity against said corporation which was begun within four months before the appointment of said receiver or receivers and such receiver or receivers shall have all the powers and be subject to all the duties conferred or imposed upon receivers by the provisions of sections 57 to 63, inclusive, of chapter 248 of the general laws. Such receiver or receivers are authorized to employ such clerical assistance as may be necessary, at the expense of the corporation under such receivership; but the duties of such receivership shall be discharged by such receiver or receivers, as part of their official duties, without compensation from such corporation and such receiver or receivers shall be entitled to any necessary legal advise and assistance in the discharge of their duties, or in legal proceedings, from the attorney-Leneral or his assistants, without expense to such corporation. If any corporation subject to the provisions of this title appears to have exceeded its pavers or failed to comply with any provision of law, the bank commissioner may apply to the superior court for the county in which said corporation is conducting its business for an in4unction to restrain such corporation, in whole or in part, from further proceeding with its business, and said court shall have jurisdiction in equity of such application. (4027) Section 9. In the case of any receiver or receivers heretofore appointed, end whose duties have not been completed, the ban". commissioner shall at least twice in each year, and whenever he considers it https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIOILATIOJ OF CLOSED bANKS MULE ISLANL - (Continued) expedient, examine the accounts and doings of said receiver or receiver, and shall carefully examine and report upon all accounts and reports of any receiver or receivers made to the superior court and for such purposes shall have free access to the books and papers relating to the transactions of such receiver or recievers whom he may examine under oath relative to such transactions. If in his opinion any such receiver has violateu his duty, he shall present the facts to the superior court. In the case of any receiver heretofore appointed, and whose duties have not been completed by January 1, 1910, the bank commissioner, if in his opinion, or in the opinion of the board of bank incorporation, such action is advisable, may also apply to said superior court for the removal of said receiver or receivers, and for the appointment of himself or the deputy bank commissioner, either or both, as receiver or receivers in lace of said receiver or receivers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6OUTa C;riktOLINht • LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS SOUTH CAROLINA Code of Laws of South Carolina, Volume 3, 1922, 2. 1175-6. Passed 1212 (3981)Section 14. Bank Examiner my take control of bank for 30 days uoon request of directors. That the bank examiner shall have the right at any time, upon the request of a majority of the directors of any bank or trust company, which may be incorporated under the laws of the State to take and retain sole possession and control of the property and business of such corporation for not exceeding 50 days: Provided, however, That auring said time said corporation shall have the right either to resume business or with the consent of the examiner to obtain from the judge of the Court of Common Pleas presiding in the circuit where said corporation is located an order authorizing said corporation to liquidate its qffairs under the sole supervision and control of the examiner and subject to the order of the said Court: and provided further, That action in preceeding against said corporation (3985)Section 18. Duty in case of unsound banks. If the State bank examiner shall find that any of the said banks or banking institutions are insolvent, or that their business is being so dishonestly or fraudently coaducted as to jeopardize the interests of the depositors, creuitors or stockholders, he shall have full power, upon consultation with the State treasurer, to take and retain possession of all the assets and property of any description belonging to such bank or banking iastitution: Provided, He shall first have applied for and obtained an order to the effect from a Circuit Judge, either residing or presiding at the time in the Cirmuit in which such bank or tanking institution is located, two days notice of such applicqtion being first given to the board of directors of said bank of the application for said order, and it shall be his duty and he is hereby authorized and empowered to make proper application to the Court for the appointment of himself or some other person as receiver to wind up and settle the affairs of such bank or banking institution. 1929, Act 175, E. 199 Section 1. Meetings of creditors - Recommendations - Appointment. When otherwise applicable That when a bank has been taken over by the State bank examiner pursuant to the ,rovisions of Section 3981, Vol. III, Code of Laws of South Carolina, 1922, and it is thereafter decided to licuidate the same, it shall be the duty of the State bank examiner to cause the depositors, and unsecured creditors of the said bank to be notified in writing that the said bank is to be liquidated and to give eaeh of them at least 10 days notice by mail, at his last known post office address, of a meeting to be held at the principal place of business of the said bank, and that said meeting is called for the purpose of electing a receiver and otherwise making providion for the liquidation of the affairs of the said bank, At this meeting the depositors and creditors shall recommend to the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 72Court of Common Pleas of the County in which the institution is situated the appointment of one or more persons who shall act as receivers for the said institution. At such meeting unsecured depositors and unsecured creditors shall have the right to appear in person, or by proxy, and vote their preference for receiver. No person shall be appointed receiver unless he receives a vote of at least 50% in number and amount of the unsecured depositors and unsecured creditors of the said bank represented or present at said meeting. The Bank Examiner or some representative designated by him shall preside at the said meeting, and the person, or persons, so recommended for appointment shall thereupon present to the Court of Common Pleas his petition for appointment as receiver, with the endoresement of the unsecured creditors and unsecured depositors made at the aforesaid meeting, and it shall be the duty of the Court, unless some valid objection appears, to ap,:oint such person as receiver. That the above provisions shall also apply to cases provided for in section 5965, Vol. III., Code of Laws of South Carolina, 1922 where the State bank examiner concludes to liquidate the bank found by him to be insolvent or conducted in such a manner as to jeopardize the interest of the depositors, creditors or stockholders. 1930, Act 720, Section 1, 2. 1235 amends Section 3981 of 1922 and Act 175 of 1929, p. 199 by adding the followini provision after the words "liquidation of the affairs of the said bane, "provided, that notices shall not be sent to depositors hose balance is less than 0_0.00". 1931, Act 211, 22. 290-91. Amends Act 175 of 1929 aelating to Appointment and Duties of Feceivers for Closed panks, by adding the following provisions: "Provided that in appointing a receiver or liquidating agent as provided in this Act, no officer, director, or attorney, who was connected or associated with said bank at the time it was closed or taken over by the bank examiner, or who, within two years to that time had been an officer, director, or attorney, shall be named as receiver of said bank: Provided, further, That the receiver or liquidating agent, so appointed shall within six months after his appointment file with the clerk of court of the county in which said bank is located a list of receipts for that period showing the sources from which said receipts have been derived, and shall at the same time file a list of the expenditures for the same period, itemized so as to show the nature of such expenditures and the balances of cash on hand, and he shall be, and is hereby. required, to file such a statement every six months thereafter duting.the term of his administration, same to be filed with the said clerk of court. This requirement of filing shall apply to receivers now serving for any bank now in process of liquidation. 1932, Act 608, Section 1, 2. 1150-31. Section 1. Each branch bank to select committee at time receiver is elected for bank with one and not more than ten branches - 'Duties. Be it enacted by the General Assembly of the State of South Carolina: That at the same time a receiver is selected and appointed to liquidate a bank, which has one and not more than ten branches, there shall also be selected and appointed a committee of three members from each member or branch bank to advise, confer and work with the said receiver. That such committee shall be https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 3selected and appointed in the same manner as is provided for the selection and appointment of a receiver as set forth in Section 1, Act 211 of the Acts of 1931, approved April 4th, 1931: Provided, That the Advisory Committee from each branch or member bank shall be selected by the depositors of the respective branch or member bank. 1933, Act 235, Section 1 and 2, R. 297 Section 1. State bank examiner's offices abolished - control of banking department and institutions vested in Governor That the office of the State bank examiner be and the same is hereby abolished and that plenary power and control of the State banking department and of all banks, banking institutions, building and loan associations, cash depositories and other institutions doing a banking business of whatever nature be and the same is hereby vested in the Governor pursuant to the terms of the Banking Act heretofore approved March 9, 1933, for the period provided in that Act. Section 2. Bank examining department - Chief examiner - Appointment. That the Governor in his discretion may authori7e the State Board of Bank Control under its direction to set up an examining department with a chief examiner id charge and with s.ch assistants as may be necessary to perform the duties incidental to the work of the State Board of Bank Control. The chief examiner shall be appointed by the Governor by and with the advice and consent of the State Board of Bank Control. Act 350, Sections 1 and 2, p. 489 Section 1. Liquivation of bunks after appointment of Conservators Powers and duties of conservator - Expenses. Be is When the Governor shall conclude after advising and consulting with the Board of Bank Control, that any bank for which a conservator has been or hereafter shall be appointed, is insolvent or in imminent danger of insolvency and it is necessary in order to protect the interest of depositors and creditors to liquidate such bunk, he shall order the liquidation thereof; and when liquidation shall have been so ordered the same shall be under and by the conservator appointed for such bank, and. shall continue the liquidation of said bank has been completed. Any such conservator shall be vested with the same powers and duties as receivers of banks under existing laws, except as in his discretion the Governor acting with the Board of Bank Control shall fix or limit the liquidating expenses of such bank or banking institution. The liquidation of all such banks shall be under such rules and regulations as may. be prescribed by the Governor after consulting and advising with the Board :if Bank Control, and the conservator shall have the right to apply to a court of competent jurisdiction for direction and instruction on questions arising in the liquidation of any such bank. Section 2. Depositors' Committee assist in liquidation. The depositors of any such bank in liquidation shall be authorized by the vote of a majority present at a meeting of such depositors called by such con- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -4 - servator an order of the Governor after 10 days notice to each depositor by mail at his last known post office address, to select a committ of not exceeding three depositors to confer and advise with the conservator and the Board of Bank Control, in the liquidation of said bank. It shall be the duty of the conservator to call the depositors together for the purpose of electing said committee and he is hereby requested to call said meeting. Act 622, Section 4, 2. 1177. Section 4. Authority of btate Bank Examiner restricted The State bank examiner is hereby prohibited during the period while this act shall remain In force, unless first authorized to do so by the Governor, from taking possession of any bank, banking instituion, building and loan association or cash de ository under his supervision, either under resolution of its directors ot through legal proceedings for failure to meet its liabilities while such bank, banking institution, building and loan association or cash depository shall be operated under the terms of this act and the said bank examiner is hereby relieved from any and all liabilities for permitting such banks, building and loan associations or cash depositories to continue operation in accordance herewith and all persons,. fins or corporations are hereby prohibited, while the Governor is in control from instituting any legal proceedings, etc. 1.3.5, Act 359, Section 3, 2. 484 Section 3. Federal Deposit Insurance Corporation act as receiver or licuidator of certain State balikinK institution. The tederal Deposit Insurance Corporation created by section 8 of the Federal "Banking kct of 1933" (Section 12B of the Federal Reserve Act as amended) is hereby, with the approval of the State Banking Eepartment, authorized and empowered to be and act without bond as receiver or liquidator of any banking institution, the deposits in which are to any extent insured by said corporation, and which shall have been closed on account of inability to meet the demands of its depositors. The appropriate tate atthority having the right to appoint a receiver or liquidator of a banking institution, may in the event of such closing tender to said Corporation the appointment as receiver or liquidator of such banking institution, and if the Corporation accepts said appointment, the Corpoation shall have andpossess all the powers and privileges provided by the laws of this State with respect to a receiver or liquidator reppectively of a banking institution, its depositors and other creditors, and be subject to all the duties of such receiver or liquidator. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • UTri iiraCUTit LE6I6LATION 1E6ahaING LIQUiDaTIJ U 3EL bhAKS SOUTH 'DAKOTA corn )1 1-1 Laws, 1929, Vol. 2, 2a. 2918-2943-5. Passed 1915. section 6925. Violation of laws Iv_ bank - suaerintendent to take possession. Whenever it shall appear to the superiatendent of banks that any bank or trust company subject to his supervision has violated its charsuch superintendent may forthter or any law of the State, etc with take possession of the property and business of such bank or trust company and retain such possession until such bank or trust company shall resume business or its affairs be finally liquidated. Whenever any bank refuses or neglects to deliver possession of its affai s, assets or property, of ahatever nature, to the sup:Tiatendent of banks or to the person ordered or appoinLed to take charge of such bank or trust company according to the provisions of this chapter, the superintendent of bunks shall communicate the facts to the attorney-general, or to the states attorney of the county -heroin such bank or trust company is located, Who shall thereupon cause an application to be made to the circuit court of such county or to any judge thereof, for an order placing the superintendent of banks, or the person orderea or appointed by him to take charge of such bank or trust company, in charge of such bank or trust company and its affairs and property: provided, That if the judge of the circuit court ofsach county shall oe absent Section 8928. Supervision - Liquidation - Deposit of funds. Upon taking possession of the property and business of any bank or trust company the superintendent of banks shall be authorized to collect all money due to such bank or trust company and to do such other acts as are necessary to conserve its assets and business, and shall proceed to liquidate the affairs thereof as provided in this chapter. He shall collect Section 8928. Examiners in charge - appointment. The superintendentof banks may, under his hand ana official seal, appoint one or more examiners in charge to assist him in the duty of liquidation aria distribution; the certificate of appointment to be filed in the office of the superintendent of banks, etc. . . .; and he may from time to time authorize any examiner to perform such duties connected with such liquidation and distribution as he may deem proper. 1927, chapter 56, 2. 41. (6976-A) Section 1. At any time after six months have elapsed in the liquidation of an insolvent bank under his charge and control, the superintendent of banks, shall have the right to appoint as examiner in charge of such bank, any active officer of an open State bank doing business in the same community as such suspended bank formerly transacted its business. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -2-1927, C1.1pter 5_7, R. --3 (3975-A-F) section I. The assets of any insolvent banks which now are or hereafter may be placed in the hands of the superintendent of banks of the State of South Dakota for the purposes of liquidation, may be liquidated under the direct charge and supervision of the depositors of such bank whenever the depositors and unsecured creditors of record representing eighty-five percent of the amount of deposits and unsecured liabilities of record of such banks, exclusive of deposits of public funds, to be determined as of the date of the suspension of such bank, agree upon a plan of liquidation. To remove the liquidation of such insolvent hank from the control of the superintendent of banks, depositors and unsecured creditors or record r3presenting not less than 85% of the deposits and unsecured liabilities of record of such bank, as shown by the records on file in the office of the clerk of courts of the county of such bank's domicile and as siLown by the certificate of the superintendent of banks, shall join in a petition addressed to the Circuit Coutt of the County of such bank's domicile in which petition such depositors and unsecured creditors shall ask that the further liquidation of the assets of such insolvent bank be taken out of the control of the superintendent of banks and be placed under the direct contol of the depositors of such bank. In such petition the said depositors and unsecured creditors shall be required to waive all claims against the depositors guaranty fund, except as to such funds actually in the hauds of the guaranty fund commission for distribution but not distributed. 8758- (Section 2) Etc. 1951, Chapter 90, 22. 64-65, percentage to "not less than presentation to the court of of the date of suspension of Amends 1927, -;loanter 57, Section 1 changing 65%" and to be determined "as of the date of petition as herein provided" instead of "as such bank". 19:J5, Chapter 60, 2. 79-30 Section 1. Whenever it shall be necessary for the superintendent of banks to take charge of aoy bank or trust company operating under the laws of this State for the purpose of liquidation, and in which bank or trust company thc deposits are insured in whole or in part by the Federal Deposit Insurance Corporation, the superintendent of banks, may in his discretion, appoint the Federal Deposit Insurance Corporation as receiver or liquidator of Such closed banking institution and the F. D. I. C. is hereby authorized and empowered to be and act without bond as such receiver or liquidator. Section 2. Whenever the superintendent of banks shall appoint the FDIC receiver or liquidator of any closed bank or trust company as provided in Sec. 1 of this act, and when such appointment shall have been accepted by the FDIC the said FDIC shall have and possess all the powers and privileges and be subject to all the duties of the superintendent of banks and examiners in charge pertaining to the liquidation of closed banks of this State except insofar as such powers, privileges or duties are in conflict with the provisions of subsection 1 of section 8 of the Federal "Banking Act of 1933" https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION hEGARDING LIQUIDATION OF CLOSED BANKS TENNESSEE Williams Tennessee Code 1934, Volume 4., 2. 568. Passed 1915 Section 5969 (B273a40). Superintendent to be appointed receiver and clothed with powers of receiver, but without extra compensation. The chaacery court taking jurisdiction of any bank shall appoint the superintendent of banks as receiver for the said bank, under the orders and directions of the court, it being provided that in any case where the powers and duties of the said superintendent as provided in this article are inadequate to discharge the duties and wind up the affairs, the said superintendent shall make application to the court for further authority, as is now provided in the case of receivers. It being further provided that the said superintendent shall receive no other compensation for his personal services rendered as such receiver then that provided for in his salary as superintendent. Section 5978 (52758.49). Superintendent may appoint special liquidating agent, salary, when liquidation completed 12,/ superintendent, extension of time. The superintendent may under his hand and official seal, appoint an agent to assist him in the duty of liquidation and distribution of the assets of any bank taken possession of by him under the provisions hereof, the certificate of appointment to be filed in the office , and such special agent shall receive a of the superintendent salary not exceeding a00 per month for the time he is actually engaged in assisting and liquidating the affairs of the bank, which shall not exceed 24 months, after which time the affairs of the bank shall be transferred to the office of the superintendent and his assistants, and no other fee or compensation shall be allowed such special agent or superintendent. 1933, Chapter 147, Section 1 adds the followtag provision to: Section 5978. Provided, however, That the court having juriddiction of the litigation of such insolvent bank may, in its discretion, extend the time for the li4uidation of any such bank in receivership for an additional period than that provided above not to exceed an addition 4 months. . 1935 Speical Session, Chapter 42, Section 1 (Cumulative Supplement August, 1935, 2. 55) Section 6055.19. Liquidating _igent" appointment of Federal Deposit Insurance Corporation. The said FDIC cre_ted by section 8 of the Federal "Banking Act of 1933" (section 12B of the Federal Reserve Act, as amended) may be appointed and constituted as liquidating agent of any banking institution the deposits in which are to any extent insured by said corporation and which have been closed on account of inability to meet the demands of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -2its depositors, as is provided by the laws of Tennessee, Section 5978, 5979 and 5980 of the Code of Tennessee, or otherwise by the laws of Tennessee. The superintendent of banks of the state of Tennessee as receiver shall have the right and authority to appoint the said Federal Deposit Insurance Corporation as liquidating agent of such institution. If the said corporation accepts such appointment, it shall have and possess all the powers and privileges provided by the laws of this State with respect to liquidating agents for closed banks and it shall possess and exercise all such powers without giving any bond or security for the discharge of its duties as such liquidating agent and shall be subject to all of the duties of such receiver or liquidator insofar as such powers, privileges or duties are in conflict with the provisions of subsection (1) of section 128 of the Federal Reserve Act, as amended. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGAEDING LIGIDATION OF CLOSED BANKS TEXAS Complete Texas Statutes, 1928, Article 571, P. 72. Passed 1909 Article 571 (453-525). j,iquidatiny, officer. Immediately upon the receipt of such notice, the attorney-general shall institute proceedings for the appointment of a receiver to take charge of such bank and to wind up the affairs and business thereof for the benefit of its depositors, creditors and stockholders. The court, or the judge thereof, in vacation, shall immediately appoint said receiver. Complaint or opposition of the bank or its officers subsequently may be heard in open court. Until a reciever is appointed, the Commissioner may appoint a competent person to take charge .of the affairs of such insolvent bank. If a State bank or bank and trust company comes voluntarily into the hands of the Commissioner no receiver shall be appointed, and the commissioner shall appoint a competent person in lieu thereof. (1909) Article 374. Liquidation of savings banks. If any savings bank incorporated under the laws of Texas shall become insolvent, its liquidation shall be accomplished by the Commissioner in the manner provided for other State Banks. 1935, Chapter 183, Section 3, 2. 460 The Federal Deposit Insurance Corporation created by Section 8 of the Federal "Banking Act of 1933" (Section 12B of the Eederal heserve Act, as amended) is hereby authorized and empowered to be and act without bond as receiver or liquidator of any banking institution, the deposits in which are to any extent insured by said corporation, and which shall have been closed on account of inability to meet the demands of its depositors. The appropriate State authority, having the right to appoint a receiver or liquidator of a banking instituion, may in the event of such closing tender to said corporation the appoiniment as receiver or liquidator of such banking instituion, and if the corporation accepts said appointment the corporation shall have and possess all powers and privileges provided by the laws of this State with respect to a receiver or liquidator respectively of a banking institution, its deposits and other creditors, and be subject to all the duties of such receiver or liquidator, except insofar as such powers, privileges or duties are in conflict with the provisions of subsection (1) of Section 8 of said "Banking Act of 1955" https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • U1.-1.11 LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS UTAH 1921 Revised Statutes of Utah, 1936, Title 7, Chapter 2, 22. 175-5. Passed 7-2-1. When Commissioner may take possession. Eight conditions itemized. 1925 above applied to Industrial Loan Banks and in 1029 to Building and Loan Companies. 7-2-2. Jurisdiction of District Court. The District Lourt in and for the county in which such institution or the principal office theres of of is situated shall have jurisdiction in the liquidation of the affair )" such institution under the provisions of this uhapter. "(Code heport 7-2-5. Receiver or Assignee for Creditors. Commissioner may shall any deed succeed. No receiver shall be appointed by any court nor any district court in filed be ors t credit of of assignment for the benefi jurisdicthe under ution instit other or bank within this State for any bank commissioner the to notice upon , except tion of the bank commissioner of the court nt judgme the in s become it unless in case of urgent necessity uion. instit such of assets the ve necessary so to do in order to preser nosuch of e servic the after The bank commissioner may within five days furno case which in ution, instit tice upon him take possession of such appointment ther proceedings shall be had upon such application for the er has been receiv a if or, ment, of a receiver or under such deed of assign on of strati admini the upon d entere appointed or such assignee shall have be reshall ee assign such or d vacate be his trust, such appointment shall such which by court the to sioner commis moved upon application of the bank bank the and filed, was ment assign such receiver was appointed or in which assets of commissioner shall proceed in all such cases to administer the ed. r provid such institution as in this chapte 7-2-11. Special _agents. Appointment. Bond. The bank comor more special missioner may under his hand and official seal appoint one liquidation and deputy examiners of banks as agents to assist him in the in the office filed be to tment appoin distribution; a certificate of such of the clerk office the in copy ied of the bank commissioner and a certif such e from requir shall sioner of the district court. The bank commis agents such security, etc 7-2-12. Licuidation. Powers and duties of Commissioner. property and busStockholders' liability. Upon taking possession of the ized to do all author is sioner commis iness of such institution the bank ss, and shall busine and assets its ve such acts as are necessary to preser He shall ed. provid herein as f thereo s proceed to liquidate the affair Chapter 4, 1953, d Amende collect all debts, etc p. 6. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -2- 1933, Chapter 5, 2. 8. Special Session 7-2-26 (New). Commissioner to advise with depositors' committee. Whenever 65% of the deposit liability and not less than 65% in number of the depositors of a closed bank shall have selected a committee to represent them in relation to the affairs of such bank, the bank commissioner shall advise with such committee and so far as practicable shall be guided by the directions of such committee in the selection of counsel, deputies, assistants, clerks and examiners to be employed by him in connection with the liquidation of the affairs of such closed bank. 1935, Chapter 20. he Rights of depositors in Building and Loan Corporations. 1935, Chapter 8, Section 3, 2. 17. Section 3. Authorizing appointment of Federal Deposit Insurance Corporation. Receiver for insured closed banks. The Federal Deposit Insurance Corporation created by section 8 of the Federal "Banking Act of 1933" (Section 12B of the Federal Reserve Act, as amended) is hereby authorized and empowered to be an act wil.hout bond as receiver or liquidator of any banking institution, the deposits in which are to any extent insured by said corporation, and which shall have been closed on account of inability to meet the demands of its depositors. The State bank commissioner may in the event of such closing, tender to said corporation the appointment as receiver or liquidator of such banking institution, and if the corporation accepts said appointment the corporation shall have and possess all the powers and privileges provided by the laws of this State with respect to the liquidation respectively of a banking institution, its depositors and other creditors, and be subject to all the duties of such liquidator, except insofar as such powers, prvileges or duties are in conflict with the provisions of subsection (1) of section 12B of the Federal Reserve Act, as amended (Section 8 of said Banking Act of 1933). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANKS VEL4uNT Public Laws of Vermont 1933, Title 29, Chapter 261, 2. o7. Early edition Section 6403 (1o17 General Laws 5400, 1933 Acts 6749). Receiver, application for: exception. If the commissioner ascertains in any manner that a bank is insolvent or that it is unsafe for it to continue to transact business, he shall apply to the court of chancery for the appointment of a receiver, unless, in case of a savings bank, he deems it advisable to join with the trustees in a petition to divide the losses among the depositos as hereafter provided. Section 6405. The court shall tnereupon issue a notice to the treasurer and president of such bank to appear at a time and place therein named and show cause why a receiver should not be appointed; and, if sufficientcause is not shown, the court shell appoint a receiver to take charge of the property and effects of the bank, who shall be subject to the court of chancery. Section 6405. The commissioner shall be appointed as such receiver unless the chancellor is satisfied that it would be inadvisable for him to act in that capacity; and he, and any commissioner v.ho may succeed him as such receiver, shall serve without compensation other than his stated compensation as commissioner, but he shall be allowed clerical and other expense necessary in the conduct of the receivership, should any change occur in the office of comnliscioner .11ile he is acting as receiver of a bank, the court may appoint his successor in office receiver to succeed him; or if a change in the receivership, in the judgment of the chancellor would be against the financial interests of those concerned, he may continue the receiver in office at such reasonable compensation as the court may determine. Public Laws of Vermont 1933 (late edition including 1933 Acts) Title 31, Chapter 272. (Special Session 1933 Act No. 7, 2. Amends Section 6405 (General Laws 5402) New Section No. 6751, by adding: If the insolvent bank is a stockholder of the Federal Deposit Insarance C,rporation the chancellor may appoint •s receiver of the bank the Federal Deposit Insurance Corporation to serve without bonds and with the same powers as the corporation has as receiver of national banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDaTIJJ ae CLUSEL J.JAAKS VIRGINIA Code of 1924, Sectioa 4120, o. 936. Section 4120 ; notice of impairment of capital; sioaiaa banks; receivers; discontinuance of State deod.sits. every bank as hereinafter defined in Section 4123 shallmake to the State Corporation Commission, statements The State Corporation Commission shall, not less than twice in each and every year, and at such other times as they mad deem necessary, cause to be examined at least once in each and every year all national banks which are or may hereafter be qualified btate depositories. Said State Corporation Commission shall also, upon written application made to them by the board of directors or by tae stoskholders representing two-fifths of the total outstanding capital stock of any such bank doing business in this State, or whenever, in the judgment of the State Corporation Commission, it ma, be necessary for the protection of the public or of persons depositing or dealing with such bank, cause to be made a special examination of such bank If upon the examination of any bank, the State Corporation Commission shall ascertain that the banking laws of this State are not being fully observed or that any irregularities are being practiced, or that its capital has been or is in danger of being impaired, the said Commission shall give immediate notice thereof to the officers and directors of such bank and demand that the impairment of the capital stock shall be made good, or that the said irregularities shall be promptly corrected, and upon the failure so to do within a reasonable time, not exceeding 30 days after such notice, may apply for the appointment of a receiver to take charge of the business affairs and assets of said bank and to wind up its affairs as hereinafter provided. If, however, upon the examination of any bank it shall be found to be insolvent, or it is deemed necessary by the State Corporation Commission for the proteetion of the publiJ interests, the Commission may at once close the doors of such bank without any notice whatsoever, and the chief examiner of banks or one of his assistants shall take charge of the books, assets and affairs of such bank until the appointment of a receiver as provided by law. If upon such examination it shall appear to the State Corporation Commission that any such bank which is designated as a State depository, is insolvent or is unable to meet its obligations and the legal demands upon it in the ordinary coarse of its business, the State Corporation Commission shall forthwith notify the auditor of public accounts and the treasurer of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S -2- the Commonwealth who shall discontinue further deposits therein of State funds and take such action as may be necessary to protect the deposits of the State therein. In any case the said State Corporation Commission may, and it shall be its duty, whenever, in its judgment, it is necessary for the protection of the interests of the State or of the depositors and creditors of any such bank doing business in this State, to apply to any court in this Commonwealth having jurisdiction to appoint receivers, for the appointment of a receiver to take charge of the business affairs and assets and to wind up the affairs and business of any such bank failing to comply with the requirements of the State corporation Commission, or found upon examination to be insolvent, or unable to meet its obligations and the legal demands made upon it in the ordinary course and conduct of its business and as aforesaid. 1928, Chapter 503, o. 1299-1300. Amends above by leaving out provision for inspecting national banks qualifying as State depositories and in the next to the last paragraph omits the "auditor of public accounts". 1932, 2. 430- 4149(52) amends 4120 by: Adding a new 4th paragrpph re inspection of the examination and revising paragraph 5 oy enumerating in detail the poyfers of the State Corporation Commission re such banks, and ends up "If any such bank shall fail or refuse to comply with any such order or orders of the Commission, or if the Commission shall determine that a receiver should be appointed it may provide for the appointment of a receiver to take charge of the business affairs and assets of the said bank and to wind up its affairs as hereinafter provided. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • LEGISLATION REGAttLIAO LIOIDATIOw OF CLOSED BANKS WASHINGTON Remington's Revised Statutes of 7:ashinton, Volume 5, Title 18, 22. 264-269. Section 3266. Possession taken :a examiner for delinuuencies. Whenever it shall in any manner appear to the State bank examiner that any bank or trust company has violated any provision of la* or is conducting its business in an unsafe manner , then the examiner may take possession of such bank or trust company as in case of insolvency. (Passed 1917) 3269. Powers and duties of examiner in possession. Upon taking possession of any bank or trust company, the examiner shall proceed to collect the assets thereof and to preserve, administer and liquidate the business and assets of such corporation. With the approval of the superior court of the county in which such corporation is located, he may sell, compound or compromise bad or doubtful debts and upon such terms as the court shall direct, sell old real estate He may appoint special deputy examiners and other necessary agents to assist in the administration and liquidation of such corporation, a certificate of such appointment to be filed with the clerk of the county in which such corporation is located. He shall require each special deputy to give a sure%y company bond. 5276. Receiverships, and assignments of creditors prohibited. No receiver shall be appointed by any court for any bank or trust company nor shall any assignment of any on or trust company for the benefit of creditors be valid, excepting only that a court otherwise having jurisdiction may in case of imminent necessity appoint a temporary receive to take possession of any bank or trust company and preserve the assets of such corporation. Immediately upon any such appointment, the clerk of such court shall notify the State bank examiner by telegrph and mail of such appointment and the examiner shall forthwith take possession of such bank or trust com2any, as in case of insolvency, and such temporary receiver shall upon demand of the examiner surrender up to him such possession and all assets which shall have come into the hands of such receiver. The examiner shall in due course pay such receiver out of the assets of such corporation such amount as the court shall allow. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • VIkt.GINIA LEGIbUTICA hEGELING LIOILATION OF L4JOSED LANKS VEST VIiGINIA Acts of 1925, Regular Session, pp. 118-20, Chapter 34. Section 81-a(7). If any such institution shall neglect or refuse for a period of sixty days to make special reports to the commissioner, as he may demand, or shall fail, neglect or refuse to comply with the provisions, etc. he (bank commisEioner) shall have authority to take charge of such institutions and shall report at once such insolvency, irregularity or violation to the Governor, and shall have the power, with the consent of the Governor, to appoint a competent person as receiver of such institution; such receiver under the direction of the conm,issioner of banking, shall take possession of the books, moneys, records and assets of every description of such institution, and collect all debts, dues and claims The commissioner of banking shall have concurrent jurisdiction with the circuit court of the county in which the bank is situated to appoint a receiver for any bank for any of the causes specified in this or the next preceding section, but no receiver shall be appointed by any such court unless the commissioner of banking neglects, fails or refuses to act. All expenses on account of any receivership shall be paid out of the assets of such association before distribution of the proceeds thereof and on order of the commissioner of banking; and such receiver may . . . . Acts of 1927, Chapter 22, pp. 55-57. Section 81-8(7) is amended as follows: After the words "shbll have the power", the words "with the consent of the Governor" are omitted. (One whole line is omitted so it probably is an error). The clause is inserted after "and collect all debts, dues and claims belonging to it", "and such receiver may maintain suits in his name as receiver for the purpose of collecting any such debts, dues and claims." At the end of the section two new paragraphs are added: ceiver's powers. he re- Acts of 1929, Chapter 23, pp. 141, 143, 145 Section 32. If the commissioner of banking shall ascertain f. any source that the capital of any corporation doing business hereunder, in this State, is substantially impaired, and such institution, upon notice from him, does not promptly make good such impairment, or that any such institution in this State is insolvent, he shall have authority to appoint an employee of the department of tanking receiver of such institution to take charge of the papers, books, records, moneys and assets of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -2every description of such institution, and he shall make in duplicate a complete inventory of all assets and an itemized list of all liabilities of said institution, the original copy of which shall be filed with the department of banking and the duplicate retained by the receiver, who shall upon assuming office, open and keep such books and records as prescribed by the commissioner of banking. Such receiver shall have all the powers vested in special receivers by general law. The receiver under the authority of the commissioner of banking shall institute and prosecute any suit or suits necessary to obtain possession of any property and to sell and dispose of the same and to collect all obligations due such institution, etc. All of the assets of any such insolvent institution shall be administered under, applied and paid out through the orders of the commissioner of banking, as herein provided. The costs and expenses of the receivership and of any suit or suits brought by the receiver under the direction of the commissioner of banking shall be entitled to priority of payment out of the assets of such institution. Nothing in this section shall impair the right of any court of chancery in any suit, on a proper showing, to appoint a receiver for any such institution in cases there the commissioner of banking has failed, refused or neglected to act. The receivers of all banking institutions in process of liquidation at the present time shall be continued in office and shall possess all the rights, powers, duties and obligations which they have under existing laws and/or by this act. 1935, Chapter 17, Section 5, pip. 111-112 The Federal Deposit Insurance Corporation created by section 8 of the Federal "Banking Act of 1933" (Sec. 12B of the Federal Reserve Act, as amended) is hereby authorized and empowered to be and act without bond as receiver or liquidator of any banking institution, the deposits in which are to any extent insured by said corporation, and which shall have been closed on account of inability to meet the demands of its depositors. The appropriate State authority having the right to appoint a receiver or liquidator of a banking institution, may in the event of such closing tender to said corporation the appointment as receiver or liquidator of such banking institution, and if the corporation accepts said appointment, the corporation shall have and possess all the powers and privileges provided by the laws of this State with respect to a receiver or liquidator respectively of a banking institution, its deposttors and other https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 3creditors, and be subject to all the duties of such receiver or liquidator, except in so far as such powers, privileges or duties are in conflict with the provisions of subsection one of section 12 of the Federal Reserve Act, as amended, (section 8 of said "Banking Act of 1933"). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGISLATION REGARDING LIQUIDATION OF CLOSED BANNS WISCONSIN Wisconsin Statutes 1P„25, Chapter 220, pp. 1707, 1708, 1709 220.08. Whenever it shall appear to the Commissioner of banking that any bank or banking corporation to which this chapter is applicable, has violated its charter or any law of the State, or is conducting its business in an unsafe or unauthorized manner, or if the capital of any such bank or banking corporation is impaired, or if any such bank or banking corporation shall refuse to submit its books, papers and concerns to the inspection of any examiner or if any officer thereof shall refuse to be examined upon oath touching the concerns of any such bank or banking corporation, or if any such bank or bank-ing corporation shall suspend payment of its obligations, or if from any examination or report provided for by this chapter the commissioner shall have reason to conclude that such bank or banking corporation is in an unsafe condition to transact the business for which it is organized, or that it is unsafe and inexpedient for it to continue business, or if any such bank or banking corporation shall neglect or refuse to observe an order of the commissioner, specified in section 220.07 of the statutes, the commissioner may forthwith take possession of the property and business of such bank or bunking corporation and retain such possession until such bank or banking corporation shall resume business, or its affairs be finally liquidated as herein provided. 220.08-4. The commissioner may, under his hand and seal, appoint one or more special deputy commissioners, as agent or agents, to assist him in the duty of liquidation and distribution, the certificate of appointment to be filed in the office of the commissioner of banking and a certified copy in the office of the clerk of the circuit court for the county in which such bank or banking corporation as located. The commissioner may from time to time authorize a apecial deputy commissioner to perform such duties connected with such liquidation and distribution as the commissioner may deem proper. The commissioner may employ such counsel and procure such expert assistance and advice as may be necessar in the liquidation and distribution of the assets of such bank or banking corporation, and may retain such of the offices as employees of such banks or banking corporations as he may deem necessary. The commissioner shall require from a deputy commissioner and from such assistants such security for the faithful discharge of their duties, as he may deem proper. 220-08.(11). In case it is determined to continue the liquidation under the commissioner, he shall complete the liquidation of the affairs of such bank or banking corporation, and after paying the expenses thereof, shall distribute the proceeds among the stockholders in proportion to the several holdings of stock in such manner and upon such notice as may be directed by the circuit court. In case it is determined to appoint an agent or agents to liquidate the stockholders shall thereupon https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -2select such agent or agents by ballot, a majority of the stock present and voting in person or by proxy, being necessary to a choice. Such agent or agents shall execute and file with the commissioner a bond to the people of the State in such amount, with such sureties and in such form as shall be approved by the commissioner, conditioned for the faithfil performance of all the duties of his or her trust, and thereupon the commissioner shall transfer and deliver to such agent or agents all the undivided or uncollected or other assets of such bank or banking corporation then remaining in his hands; and ion such transfer and delivery, the said commissioner shall be discharged from any and all further liability to such bank or banking corporation and its or their creditors. 1951 Special Session, Chapter 10, Section 8, p. 27 220.08(1). Inserts after "specified in section 220.07 of the statutes", "or if the commissioner shall find that the management of the bank or the manner in which the work of any of its officers or employees is done if continued, is such as to endanger the safety or solvency of the bank and the commissioner shall have made written recommendations for change in management or officers and employees and such recommendation shall not have been complied with after the expiration of a reasonable time therefor fixed by the commissioner," and at the end of the section the following is added: "Whenever facts have come to the att4ntion of the commissioner which cause him to believe that it may be necessary ar advisable to take possession of a bank, or if he has reasonable cause to believe that any of the grounds for taking possession of a bank, specified in this section, exist, he shall bring the mutter to the attention of the banking review board, reporting to them in ;- :riting the situation and his own recommendations as to action to be taken. The banking review board shall promptly consider the matter and promptly decide whether or not the commissioner should take possession of the bank. If the review board decides that the commissioner should take possession, he shall forthwith take possession as nereinbefore provided. If at any time the banking commissioner is confronted with an emergency situation where in his opinion it is imperative in order to protect the public or for other reasons that possession of the bank be at once taken, he may do so forthwith without referring the matter to the banking review board. 1951 Special Session, Chapter 15,. 48 220.08(4). "Reorganization, consolidation" is added to "liquidation and distribution". 1955, Chapter 469, 2p. 744-5. 220.081. Closed Insured Banks; Federal Deposit Insurance Corporation pay be receiver. (1) The banking commission may, in the event of the closing of any bank which is a member of the Federal Deposit Insurance https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • - 3- Corporation or the deposits in which are to any extent insured by said corporation, tender to said corporation the appointment as reciever or liquidator of such banking institution, and if the corporation accepts said appointment, the corporation shall have and possess all the powers and privileges Liven by the laws of this State to the banking commissioner as statutory receiver of a closed bank and be subject to all the duties of the banking .commission as such statutory receiver, except, insofar as such powers, privileges, or duties are in conflict with the provisions of subsection 1 of section 8 of said banking act of 1935, or any other applicable Federal laws. (2) In the event said Federal Deposit Insurance Corporation, shall accept the appointment as such receiver, it is hereby authorized and empowered to be and act without bond as such receiver. (3) Upon the acceptance of the appointment as receiver of any delinquent bank by the Federal Deposit Insurance Corporation, the possession of and title to all the assets, business and property, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LA LEGISLALTION REGAhDING LIQUILATIONNi CLOSED BANKS WYOJkING Revised Statutes 1931, 2. 200 10-520. Appointment of receiver. No receiver shall be by any court, nor shall any deed of assignment for the benefit of be filed in any probate court of court of insolvency, within this any bank doing business under the laws of this state, except upon the State unless in case of urgent necessity it becomes I judgment of the court necessary to to do inP order to preserve the such bank. The State Examiner may within five days after the service of such notice upon him, tale possession of such bank, in which case no furP such application for the appointment of ther proceedings shall be had upon II receiver or under such deed of assignment, or,receiver has been appointed or such assi6nee shall have entered upon the administration of his trust, such appointment shall be vacated or such assignee shall be removed upI n application of the State ExaminerII to the proper court therefor, and the State Examiner shall proceed in all cases to administer the assets of such bank as herein providad. (Pased 1925). • 10-523. Agent for liquidation. In case it is determined to appoint an agent or agents to liquidate, the stockholders shall thereupon select such agent or agents by ballot - a majority of the stock present and voting, in person or by proxy, being necessary to a choice. Such agent or agents shall file with the State Expminer a bond to the State of Wyoming, in such amount and with such sureties as shall be approved by the State Examiner for the faithful performance of all the duties of his or their trust, and thereupon the State Examiner shall tranffer to such agent or agents all the undivided or uncollected or other assets of such bank then remaining in his hands; and upon such transfer and delivery the said State Examiner shall be discharged from all further liability to such bank and its creditors. (1925) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis