State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-406

Subpart D. Sale of Assets;Issuance of Preferred Stock by Jeopardized State Trust Company.

§ 53‑406.  Sale ofassets by board of jeopardized State trust company.

(a)        With theCommissioner's approval, the board of directors of a jeopardized State trustcompany, acting without shareholder approval and notwithstanding any otherprovision of this Article or any other law, or any of the provisions of thearticles of incorporation or bylaws of the State trust company, may cause theState trust company to sell to one or more buyers all or substantially all ofits assets, including the right to control and act as fiduciary for accountsestablished with the trust company, if the Commissioner finds:

(1)        The interests of theState trust company's clients, creditors, and shareholders are jeopardized bythe continued operation of the State trust company; and

(2)        The sale is in thebest interests of the State trust company's clients and creditors.

(b)        Sales under theprovisions of this section shall include assumptions and promises by one ormore buyers to pay or otherwise discharge, except as provided in G.S. 53‑407:

(1)        All of the Statetrust company's liabilities to clients and creditors;

(2)        All of the Statetrust company's liabilities for salaries of the State trust company's employeesincurred before the date of the sale;

(3)        Expenses incurred bythe Commissioner arising out of the supervision or sale of the State trustcompany; and

(4)        Taxes owed and feesand assessments due the Commissioner's office.

(c)        This section doesnot limit the power of a State trust company to buy and sell assets in theordinary course of business.

(d)        This section doesnot affect the Commissioner's right to take action under another law or saleunder other provisions of this Article. (2001‑263, s. 1.)