§412:2-416  Liquidation by receiver;priority of claims.  (a)  The receiver shall collect and sell or otherwisedispose 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 besued in the name of the commissioner, the receiver, or the institution, tocompromise any claim, to hire attorneys, accountants, appraisers, auctioneers,or other professional persons, to take mortgages, to enter into contracts ofsale and agreements of sale, to borrow money on the institution's credit, andto take such other measures as may be reasonable and prudent under thecircumstances; provided, that any lease, mortgage, sale, exchange, or othertransfer of real property, any compromise of any claim, and any pledge of theinstitution's assets to secure any loan shall require the prior approval of thecommissioner or the court.

(b)  The receiver shall not pay any claimsagainst the Hawaii financial institution except regular costs and expensesincurred in connection with the administration of the receivership and thepermitted operations of the financial institution, unless prior approval isobtained from the commissioner or the court.  Once all claims against theinstitution have been determined, the receiver may disburse payments in thefollowing priority:

(1)  Administrative expenses, which shall includewithout limitation compensation of the receiver and the employees working underthe receiver, fees of attorneys, accountants, appraisers, auctioneers, or otherprofessional 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 anindividual within ninety days before the receivership, in an amount notexceeding $2,000 for each individual;

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

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

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

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