§412:2-416  Liquidation by receiver;
priority of claims.  (a)  The receiver shall collect and sell or otherwise
dispose of all assets of the Hawaii financial institution.  For such purposes,
the receiver's authority includes but is not limited to the right to sue and be
sued in the name of the commissioner, the receiver, or the institution, to
compromise any claim, to hire attorneys, accountants, appraisers, auctioneers,
or other professional persons, to take mortgages, to enter into contracts of
sale and agreements of sale, to borrow money on the institution's credit, and
to take such other measures as may be reasonable and prudent under the
circumstances; provided, that any lease, mortgage, sale, exchange, or other
transfer of real property, any compromise of any claim, and any pledge of the
institution's assets to secure any loan shall require the prior approval of the
commissioner or the court.



(b)  The receiver shall not pay any claims
against the Hawaii financial institution except regular costs and expenses
incurred in connection with the administration of the receivership and the
permitted operations of the financial institution, unless prior approval is
obtained from the commissioner or the court.  Once all claims against the
institution have been determined, the receiver may disburse payments in the
following priority:



(1)  Administrative expenses, which shall include
without limitation compensation of the receiver and the employees working under
the receiver, fees of attorneys, accountants, appraisers, auctioneers, or other
professional persons, rent, current taxes, loans for administrative expenses,
expert and advisor's fees, costs of the State, and court costs;



(2)  Unsecured claims for wages, salaries,
commissions, including vacation, severance or sick leave pay, earned by an
individual within ninety days before the receivership, in an amount not
exceeding $2,000 for each individual;



(3)  Claims which are given priority by applicable
statutes and, if the assets are insufficient for the payment in full of all
such claims, in the order provided by such statutes, or in the absence of
contrary provisions, pro rata;



(4)  All other claims pro rata, exclusive of claims
set forth in paragraph (5) of this section; and



(5)  Claims for debts that are subordinated to
unsecured claims under a written subordination agreement or other instrument.



The commissioner or the court may order the
payments to be made partially, as funds become available for such purpose;
provided, that claims with a higher priority must be completely satisfied
before any payment of claims with a lower priority. [L 1993, c 350, pt of §1]