9-1903. Undercapitalized and insolvent banks and trust companies; commissioner to take charge, when.
9-1903
9-1903. Undercapitalized and insolvent banks and trust companies;
commissioner to take charge, when.
If it shall appear upon the examination of any bank or trust company or
from any report made to the commissioner that any bank or trust company is
critically undercapitalized, the commissioner may take charge of such bank
or trust company and all of its property and assets. If from such
examination or reports it shall appear any bank or trust company is insolvent
the commissioner shall take charge of such bank or trust company and all of its
property and assets. In
so doing the commissioner may appoint a special deputy commissioner to take
charge temporarily of the affairs of such insolvent or critically
undercapitalized bank or trust company
until a receiver is appointed. Such deputy shall qualify, give bond and
receive compensation as determined by the
commissioner, but such compensation shall be paid by the insolvent
or critically undercapitalized bank or trust company or in
case of the appointment of a receiver allowed by the court as costs in the
case. After appointment, the special deputy shall continue to serve under the
direction of the commissioner for such period of time as deemed reasonable and
necessary by the commissioner before returning charge of the bank or trust
company back to
the board of directors of the institution or appointing a receiver. In no case
shall any bank or trust company continue in the charge of a special deputy for
a period exceeding nine months.
History: L. 1947, ch. 102, § 111;
L. 1993, ch. 7, § 3; March 18.