9-1906.   Receiver to take charge of assets; order of payment.(a) A receiver appointed pursuant to K.S.A. 9-1905 and amendmentsthereto, under the direction of the commissioner, shall take chargeof any insolvent or critically undercapitalized bank or trust company andall of its assets and property,and liquidate the affairs and business thereof for the benefit of itsdepositors, creditors and stockholders. The receiver may sell orcompound all bad and doubtful debts and sell all the property ofthe bank or trust company upon such terms as the district court of thecounty where the bank or trust company is located shall approve. The receivershall pay over all moneys received to the creditors and depositors of suchbank or trust company as ordered by the commissioner.

      (b)   In distributing assets of the insolvent or criticallyundercapitalized bank or trust companyinpayment of its liabilities, the order of payment, in the event its assetsare insufficient to pay in full all of its liabilities, shall be by categoryas follows:

      (1)   The costs and expenses of the receivership andreal and personal property taxes assessed against the bankpursuant to applicable law;

      (2)   claims which are secured or given priority by applicable law;

      (3)   claims of unsecured depositors;

      (4)   all other claims exclusive of claims on capital notes and debentures;

      (5)   claims on capital notes and debentures.

      Should the assets be insufficient for the payment in full of all claimswithin a category, such claims shall be paid in the order provided by otherapplicable law or, in the absence of such applicable law, pro rata.

      History:   L. 1947, ch. 102, § 114;L. 1985, ch. 59, § 1;L. 1988, ch. 63, § 1;L. 1993, ch. 7, § 6; March 18.