(a) The Commissioner ofBanks with prior approval of the Commission may take custody of the books,records and assets of every kind and character of any association organized andoperated under the provisions of this Chapter for any of the purposeshereinafter enumerated, if it reasonably appears from examinations or fromreports made to the Commissioner of Banks that:
(1) The directors,officers, or liquidators have neglected, failed or refused to take such actionwhich the Commissioner of Banks may deem necessary for the protection of theassociation, or have impeded or obstructed an examination; or
(2) The withdrawablecapital of the association is impaired to the extent that the realizable valueof its assets is insufficient to pay in full its creditors and holders ofwithdrawable accounts; or its liquidity fund or general reserve account isimpaired; or
(3) The business of theassociation is being conducted in a fraudulent, illegal or unsafe manner, orthat the association is in an unsafe or unsound condition to transact business;(any association which, except as authorized in writing by the Commissioner ofBanks, fails to make full payment of any withdrawal when due is in an unsafe orunsound condition to transact business, notwithstanding such provisions of thecertificate of incorporation or such statutes or regulations with respect topayment of withdrawals in event an association does not pay all withdrawals infull); or
(4) The officers,directors, or employees have assumed duties or performed acts in excess ofthose authorized by statute or regulation or charter, or without supplying therequired bond; or,
(5) The association hasexperienced a substantial dissipation of assets or earnings due to anyviolation or violations of statute or regulation, or due to any unsafe orunsound practice or practices; or
(6) The association isinsolvent, or is in imminent danger of insolvency or has suspended its ordinarybusiness transactions due to insufficient funds; or
(7) The association isunable to continue operations.
(b) Unless theCommissioner of Banks finds that such an emergency exists which may result inloss to members, withdrawable account holders, stockholders, or creditors, andwhich requires that he take custody immediately, he shall first give writtennotice to the directors and officers specifying the conditions criticized andallowing a reasonable time in which corrections may be made before a receivershall be appointed as outlined in subsection (d) below.
(c) The purposes forwhich the Commissioner of Banks may take custody of an association includeexamination or further examination; conservation of its assets; restoration ofimpaired capital; the making of any reasonable or equitable adjustment deemednecessary by the Commissioner of Banks under any plan of reorganization.
(d) If the Commissionerof Banks after taking custody of an association, finds that one or more of thereasons for having taken custody continue to exist through the period of hiscustody, with little or no likelihood of amelioration of the situation, then heshall appoint as receiver or co‑receiver any qualified person, firm orcorporation for the purpose of liquidation of the association, which receivershall furnish bond in form, amount and with surety as the Commissioner of Banksmay require. The Commissioner of Banks may appoint the association'swithdrawable account insurance corporation or its nominee as the receiver, andsuch insuring corporation shall be permitted to serve without posting bond.
(e) In the event theCommissioner of Banks appoints a receiver for an association, he shall mail acertified copy of the appointment order by certified mail to the address of theassociation as it shall appear on the records of the Division, and to anyprevious receiver or other legal custodian of the association, and to any courtor other authority to which such previous receiver or other legal custodian issubject. Notice of such appointment shall be published in a newspaper ofgeneral circulation in the county where such association has its principaloffice.
(f) Whenever areceiver for an association is appointed pursuant to subsection (d) above theassociation may within 30 days thereafter bring an action in the Superior Courtof Wake County, for an order requiring the Commissioner of Banks to remove suchreceiver.
(g) The duly appointedand qualified receiver shall take possession promptly of the association forwhich he or it has been so appointed, in accordance with the terms of suchappointment, by service of a certified copy of the Commissioner of Banks'appointment order upon the association at its principal office through theofficer or employee who is present and appears to be in charge. Immediatelyupon taking possession of the association, the receiver shall take possessionand title to books, records and assets of every description of suchassociation. The receiver, by operation of law and without any conveyance orother instrument, act or deed, shall succeed to all the rights, titles, powersand privileges of the association, its members or stockholders, holders ofwithdrawable accounts, its officers and directors or any of them; and to thetitles to the books, records and assets of every description of any previousreceiver or other legal custodian of such association. Such members,stockholders, holders of withdrawable accounts, officers or directors, or anyof them, shall not thereafter, except as hereinafter expressly provided, haveor exercise any such rights, powers or privileges or act in connection with anyassets or property of any nature of the association in receivership: Providedhowever, that any officer, director, member, stockholder, withdrawable accountholder, or borrower of such association shall have the right to communicatewith the Commissioner of Banks with respect to such receivership. TheCommissioner of Banks, with the approval of the Commission, may at any time,direct the receiver to return the association to its previous or a newlyconstituted management. The Commissioner of Banks may provide for a meeting ormeetings of the members or stockholders for any purpose, including, without anylimitation on the generality of the foregoing, the election of directors or anincrease in the number of directors, or both, or the election of an entire newboard of directors; and may provide for a meeting or meetings of the directorsfor any purpose including, without any limitation on the generality of theforegoing, the filling of vacancies on the board, the removal of officers andthe election of new officers, or for any of such purposes. Any such meeting ofmembers or stockholders, or of directors, shall be supervised or conducted by arepresentative of the Commissioner of Banks.
(h) A duly appointedand qualified receiver shall have power and authority to:
(1) Demand, sue for,collect, receive and take into his possession all the goods and chattels,rights and credits, moneys and effects, lands and tenements, books, papers,choses in action, bills, notes, and property of every description of theassociation;
(2) Foreclose mortgages,deeds of trust, and other liens executed to the association to the extent theassociation would have had such right;
(3) Institute suits forthe recovery of any estate, property, damages, or demands existing in favor ofthe association, and he shall, upon his own application, be substituted asparty plaintiff in the place of the association in any suit or proceedingpending at the time of his appointment;
(4) Sell, convey, andassign all the property rights and interest owned by the association;
(5) Appoint agents toserve at his pleasure;
(6) Examine andinvestigate papers and persons, and pass on claims as provided in theregulations as prescribed by the Commissioner of Banks;
(7) Make and carry outagreements with the insuring corporation or with any other financialinstitution for the payment or assumption of the association liabilities, inwhole or in part, and to sell, convey, transfer, pledge, or assign assets assecurity or otherwise and to make guarantees in connection therewith; and
(8) Perform all otheracts which might be done by the employees, officers and directors.
Such powers shall be continued ineffect until liquidation and dissolution or until return of the association toits prior or newly constituted management.
(i) A receiver may atany time during the receivership and prior to final liquidation be removed anda replacement appointed by the Commissioner of Banks.
(j) The Commissionerof Banks may determine that such liquidation proceedings should bediscontinued. He shall then remove the receiver and restore all the rights,powers, and privileges of its members and stockholders, customers, employees,officers and directors, or restore such rights, powers, and privileges to its members,stockholders and customers, and grant such rights, powers and privileges to anewly constituted management, all as of the time of such restoration of theassociation to its management unless another time for such restoration shall bespecified by the Commissioner of Banks. The return of an association to itsmanagement or to a newly constituted management from the possession of areceiver shall, by operation of law and without any conveyance or otherinstrument, act or deed, vest in such association the title to all propertyheld by the receiver in his capacity as receiver for such association.
(k) A receiver may alsobe appointed under the authority of G.S. 1‑502. No judge or court,however, shall appoint a receiver for any State association unless five days'advance notice of the motion, petition or application for appointment of areceiver shall have been given to such association and to the Commissioner ofBanks.
(l ) Following theappointment of a receiver, the Commissioner of Banks shall request the AttorneyGeneral to institute an action in the name of the Commissioner of Banks in thesuperior court against the association for the orderly liquidation anddissolution of the association, and for an injunction to restrain the officers,directors and employees from continuing the operation of the association.
(m) Claims against aState association in receivership shall have the following order of priorityfor payment:
(1) Costs, expenses anddebts of the association incurred on or after the date of the appointment ofthe receiver, including compensation for the receiver;
(2) Claims of holders ofspecial purpose or thrift accounts;
(3) Claims of holders ofwithdrawable accounts;
(4) Claims of generalcreditors;
(5) Claims ofstockholders of a stock association;
(6) All remaining assetsto members and stockholders in an amount proportionate to their holdings as ofthe date of the appointment of the receiver.
(n) All claims of eachclass described within subsection (m) above shall be paid in full so long assufficient assets remain. Members of the class for which the receiver cannotmake payment in full because assets will be depleted during payment to suchclass shall be paid an amount proportionate to their total claims.
(o) The Commissioner ofBanks shall have the authority to direct the payment of claims for which noprovision is herein made, and may direct the payment of claims within a class.The Commissioner of Banks shall have the authority to promulgate rules andregulations governing the payment of claims by an association in receivership.
(p) When all assets ofthe association have been fully liquidated, and all claims and expenses havebeen paid or settled, and the receiver shall recommend a final distribution,the dissolution of the association in receivership shall be accomplished in thefollowing manner:
(1) The receiver shallfile with the Commissioner of Banks a detailed report, in a form to beprescribed by the Commissioner of Banks, of his acts and proposed finaldistribution, and dissolution.
(2) Upon theCommissioner of Banks' approval of the final report of the receiver, thereceiver shall provide such notice and thereafter shall make such finaldistribution, in such manner as the Commissioner of Banks may direct.
(3) When a finaldistribution has been made except as to any unclaimed funds, the receiver shalldeposit such unclaimed funds with the Commissioner of Banks and shall deliverto the Commissioner of Banks all books and records of the dissolvedassociation.
(4) Upon completion ofthe foregoing procedure, and upon the joint petition of the Commissioner ofBanks and receiver to the superior court, the court may find that theassociation should be dissolved, and following such publication of notice ofdissolution as the court may direct, the court may enter a decree of finalresolution and the association shall thereby be dissolved.
(5) Upon finaldissolution of the association in receivership or at such time as the receivershall be otherwise relieved of his duties, the Commissioner of Banks shallcause an audit to be conducted, during which the receiver shall be available toassist in such. The accounts of the receiver shall then be ruled upon by theCommissioner of Banks and Commission and if approved, the receiver shallthereupon be given a final and complete discharge and release. (1981, c. 282, s. 3; 1987, c.237, s. 4; 2001‑193, s. 16.)
(a) The Commissioner ofBanks with prior approval of the Commission may take custody of the books,records and assets of every kind and character of any association organized andoperated under the provisions of this Chapter for any of the purposeshereinafter enumerated, if it reasonably appears from examinations or fromreports made to the Commissioner of Banks that:
(1) The directors,officers, or liquidators have neglected, failed or refused to take such actionwhich the Commissioner of Banks may deem necessary for the protection of theassociation, or have impeded or obstructed an examination; or
(2) The withdrawablecapital of the association is impaired to the extent that the realizable valueof its assets is insufficient to pay in full its creditors and holders ofwithdrawable accounts; or its liquidity fund or general reserve account isimpaired; or
(3) The business of theassociation is being conducted in a fraudulent, illegal or unsafe manner, orthat the association is in an unsafe or unsound condition to transact business;(any association which, except as authorized in writing by the Commissioner ofBanks, fails to make full payment of any withdrawal when due is in an unsafe orunsound condition to transact business, notwithstanding such provisions of thecertificate of incorporation or such statutes or regulations with respect topayment of withdrawals in event an association does not pay all withdrawals infull); or
(4) The officers,directors, or employees have assumed duties or performed acts in excess ofthose authorized by statute or regulation or charter, or without supplying therequired bond; or,
(5) The association hasexperienced a substantial dissipation of assets or earnings due to anyviolation or violations of statute or regulation, or due to any unsafe orunsound practice or practices; or
(6) The association isinsolvent, or is in imminent danger of insolvency or has suspended its ordinarybusiness transactions due to insufficient funds; or
(7) The association isunable to continue operations.
(b) Unless theCommissioner of Banks finds that such an emergency exists which may result inloss to members, withdrawable account holders, stockholders, or creditors, andwhich requires that he take custody immediately, he shall first give writtennotice to the directors and officers specifying the conditions criticized andallowing a reasonable time in which corrections may be made before a receivershall be appointed as outlined in subsection (d) below.
(c) The purposes forwhich the Commissioner of Banks may take custody of an association includeexamination or further examination; conservation of its assets; restoration ofimpaired capital; the making of any reasonable or equitable adjustment deemednecessary by the Commissioner of Banks under any plan of reorganization.
(d) If the Commissionerof Banks after taking custody of an association, finds that one or more of thereasons for having taken custody continue to exist through the period of hiscustody, with little or no likelihood of amelioration of the situation, then heshall appoint as receiver or co‑receiver any qualified person, firm orcorporation for the purpose of liquidation of the association, which receivershall furnish bond in form, amount and with surety as the Commissioner of Banksmay require. The Commissioner of Banks may appoint the association'swithdrawable account insurance corporation or its nominee as the receiver, andsuch insuring corporation shall be permitted to serve without posting bond.
(e) In the event theCommissioner of Banks appoints a receiver for an association, he shall mail acertified copy of the appointment order by certified mail to the address of theassociation as it shall appear on the records of the Division, and to anyprevious receiver or other legal custodian of the association, and to any courtor other authority to which such previous receiver or other legal custodian issubject. Notice of such appointment shall be published in a newspaper ofgeneral circulation in the county where such association has its principaloffice.
(f) Whenever areceiver for an association is appointed pursuant to subsection (d) above theassociation may within 30 days thereafter bring an action in the Superior Courtof Wake County, for an order requiring the Commissioner of Banks to remove suchreceiver.
(g) The duly appointedand qualified receiver shall take possession promptly of the association forwhich he or it has been so appointed, in accordance with the terms of suchappointment, by service of a certified copy of the Commissioner of Banks'appointment order upon the association at its principal office through theofficer or employee who is present and appears to be in charge. Immediatelyupon taking possession of the association, the receiver shall take possessionand title to books, records and assets of every description of suchassociation. The receiver, by operation of law and without any conveyance orother instrument, act or deed, shall succeed to all the rights, titles, powersand privileges of the association, its members or stockholders, holders ofwithdrawable accounts, its officers and directors or any of them; and to thetitles to the books, records and assets of every description of any previousreceiver or other legal custodian of such association. Such members,stockholders, holders of withdrawable accounts, officers or directors, or anyof them, shall not thereafter, except as hereinafter expressly provided, haveor exercise any such rights, powers or privileges or act in connection with anyassets or property of any nature of the association in receivership: Providedhowever, that any officer, director, member, stockholder, withdrawable accountholder, or borrower of such association shall have the right to communicatewith the Commissioner of Banks with respect to such receivership. TheCommissioner of Banks, with the approval of the Commission, may at any time,direct the receiver to return the association to its previous or a newlyconstituted management. The Commissioner of Banks may provide for a meeting ormeetings of the members or stockholders for any purpose, including, without anylimitation on the generality of the foregoing, the election of directors or anincrease in the number of directors, or both, or the election of an entire newboard of directors; and may provide for a meeting or meetings of the directorsfor any purpose including, without any limitation on the generality of theforegoing, the filling of vacancies on the board, the removal of officers andthe election of new officers, or for any of such purposes. Any such meeting ofmembers or stockholders, or of directors, shall be supervised or conducted by arepresentative of the Commissioner of Banks.
(h) A duly appointedand qualified receiver shall have power and authority to:
(1) Demand, sue for,collect, receive and take into his possession all the goods and chattels,rights and credits, moneys and effects, lands and tenements, books, papers,choses in action, bills, notes, and property of every description of theassociation;
(2) Foreclose mortgages,deeds of trust, and other liens executed to the association to the extent theassociation would have had such right;
(3) Institute suits forthe recovery of any estate, property, damages, or demands existing in favor ofthe association, and he shall, upon his own application, be substituted asparty plaintiff in the place of the association in any suit or proceedingpending at the time of his appointment;
(4) Sell, convey, andassign all the property rights and interest owned by the association;
(5) Appoint agents toserve at his pleasure;
(6) Examine andinvestigate papers and persons, and pass on claims as provided in theregulations as prescribed by the Commissioner of Banks;
(7) Make and carry outagreements with the insuring corporation or with any other financialinstitution for the payment or assumption of the association liabilities, inwhole or in part, and to sell, convey, transfer, pledge, or assign assets assecurity or otherwise and to make guarantees in connection therewith; and
(8) Perform all otheracts which might be done by the employees, officers and directors.
Such powers shall be continued ineffect until liquidation and dissolution or until return of the association toits prior or newly constituted management.
(i) A receiver may atany time during the receivership and prior to final liquidation be removed anda replacement appointed by the Commissioner of Banks.
(j) The Commissionerof Banks may determine that such liquidation proceedings should bediscontinued. He shall then remove the receiver and restore all the rights,powers, and privileges of its members and stockholders, customers, employees,officers and directors, or restore such rights, powers, and privileges to its members,stockholders and customers, and grant such rights, powers and privileges to anewly constituted management, all as of the time of such restoration of theassociation to its management unless another time for such restoration shall bespecified by the Commissioner of Banks. The return of an association to itsmanagement or to a newly constituted management from the possession of areceiver shall, by operation of law and without any conveyance or otherinstrument, act or deed, vest in such association the title to all propertyheld by the receiver in his capacity as receiver for such association.
(k) A receiver may alsobe appointed under the authority of G.S. 1‑502. No judge or court,however, shall appoint a receiver for any State association unless five days'advance notice of the motion, petition or application for appointment of areceiver shall have been given to such association and to the Commissioner ofBanks.
(l ) Following theappointment of a receiver, the Commissioner of Banks shall request the AttorneyGeneral to institute an action in the name of the Commissioner of Banks in thesuperior court against the association for the orderly liquidation anddissolution of the association, and for an injunction to restrain the officers,directors and employees from continuing the operation of the association.
(m) Claims against aState association in receivership shall have the following order of priorityfor payment:
(1) Costs, expenses anddebts of the association incurred on or after the date of the appointment ofthe receiver, including compensation for the receiver;
(2) Claims of holders ofspecial purpose or thrift accounts;
(3) Claims of holders ofwithdrawable accounts;
(4) Claims of generalcreditors;
(5) Claims ofstockholders of a stock association;
(6) All remaining assetsto members and stockholders in an amount proportionate to their holdings as ofthe date of the appointment of the receiver.
(n) All claims of eachclass described within subsection (m) above shall be paid in full so long assufficient assets remain. Members of the class for which the receiver cannotmake payment in full because assets will be depleted during payment to suchclass shall be paid an amount proportionate to their total claims.
(o) The Commissioner ofBanks shall have the authority to direct the payment of claims for which noprovision is herein made, and may direct the payment of claims within a class.The Commissioner of Banks shall have the authority to promulgate rules andregulations governing the payment of claims by an association in receivership.
(p) When all assets ofthe association have been fully liquidated, and all claims and expenses havebeen paid or settled, and the receiver shall recommend a final distribution,the dissolution of the association in receivership shall be accomplished in thefollowing manner:
(1) The receiver shallfile with the Commissioner of Banks a detailed report, in a form to beprescribed by the Commissioner of Banks, of his acts and proposed finaldistribution, and dissolution.
(2) Upon theCommissioner of Banks' approval of the final report of the receiver, thereceiver shall provide such notice and thereafter shall make such finaldistribution, in such manner as the Commissioner of Banks may direct.
(3) When a finaldistribution has been made except as to any unclaimed funds, the receiver shalldeposit such unclaimed funds with the Commissioner of Banks and shall deliverto the Commissioner of Banks all books and records of the dissolvedassociation.
(4) Upon completion ofthe foregoing procedure, and upon the joint petition of the Commissioner ofBanks and receiver to the superior court, the court may find that theassociation should be dissolved, and following such publication of notice ofdissolution as the court may direct, the court may enter a decree of finalresolution and the association shall thereby be dissolved.
(5) Upon finaldissolution of the association in receivership or at such time as the receivershall be otherwise relieved of his duties, the Commissioner of Banks shallcause an audit to be conducted, during which the receiver shall be available toassist in such. The accounts of the receiver shall then be ruled upon by theCommissioner of Banks and Commission and if approved, the receiver shallthereupon be given a final and complete discharge and release. (1981, c. 282, s. 3; 1987, c.237, s. 4; 2001‑193, s. 16.)
(a) The Commissioner ofBanks with prior approval of the Commission may take custody of the books,records and assets of every kind and character of any association organized andoperated under the provisions of this Chapter for any of the purposeshereinafter enumerated, if it reasonably appears from examinations or fromreports made to the Commissioner of Banks that:
(1) The directors,officers, or liquidators have neglected, failed or refused to take such actionwhich the Commissioner of Banks may deem necessary for the protection of theassociation, or have impeded or obstructed an examination; or
(2) The withdrawablecapital of the association is impaired to the extent that the realizable valueof its assets is insufficient to pay in full its creditors and holders ofwithdrawable accounts; or its liquidity fund or general reserve account isimpaired; or
(3) The business of theassociation is being conducted in a fraudulent, illegal or unsafe manner, orthat the association is in an unsafe or unsound condition to transact business;(any association which, except as authorized in writing by the Commissioner ofBanks, fails to make full payment of any withdrawal when due is in an unsafe orunsound condition to transact business, notwithstanding such provisions of thecertificate of incorporation or such statutes or regulations with respect topayment of withdrawals in event an association does not pay all withdrawals infull); or
(4) The officers,directors, or employees have assumed duties or performed acts in excess ofthose authorized by statute or regulation or charter, or without supplying therequired bond; or,
(5) The association hasexperienced a substantial dissipation of assets or earnings due to anyviolation or violations of statute or regulation, or due to any unsafe orunsound practice or practices; or
(6) The association isinsolvent, or is in imminent danger of insolvency or has suspended its ordinarybusiness transactions due to insufficient funds; or
(7) The association isunable to continue operations.
(b) Unless theCommissioner of Banks finds that such an emergency exists which may result inloss to members, withdrawable account holders, stockholders, or creditors, andwhich requires that he take custody immediately, he shall first give writtennotice to the directors and officers specifying the conditions criticized andallowing a reasonable time in which corrections may be made before a receivershall be appointed as outlined in subsection (d) below.
(c) The purposes forwhich the Commissioner of Banks may take custody of an association includeexamination or further examination; conservation of its assets; restoration ofimpaired capital; the making of any reasonable or equitable adjustment deemednecessary by the Commissioner of Banks under any plan of reorganization.
(d) If the Commissionerof Banks after taking custody of an association, finds that one or more of thereasons for having taken custody continue to exist through the period of hiscustody, with little or no likelihood of amelioration of the situation, then heshall appoint as receiver or co‑receiver any qualified person, firm orcorporation for the purpose of liquidation of the association, which receivershall furnish bond in form, amount and with surety as the Commissioner of Banksmay require. The Commissioner of Banks may appoint the association'swithdrawable account insurance corporation or its nominee as the receiver, andsuch insuring corporation shall be permitted to serve without posting bond.
(e) In the event theCommissioner of Banks appoints a receiver for an association, he shall mail acertified copy of the appointment order by certified mail to the address of theassociation as it shall appear on the records of the Division, and to anyprevious receiver or other legal custodian of the association, and to any courtor other authority to which such previous receiver or other legal custodian issubject. Notice of such appointment shall be published in a newspaper ofgeneral circulation in the county where such association has its principaloffice.
(f) Whenever areceiver for an association is appointed pursuant to subsection (d) above theassociation may within 30 days thereafter bring an action in the Superior Courtof Wake County, for an order requiring the Commissioner of Banks to remove suchreceiver.
(g) The duly appointedand qualified receiver shall take possession promptly of the association forwhich he or it has been so appointed, in accordance with the terms of suchappointment, by service of a certified copy of the Commissioner of Banks'appointment order upon the association at its principal office through theofficer or employee who is present and appears to be in charge. Immediatelyupon taking possession of the association, the receiver shall take possessionand title to books, records and assets of every description of suchassociation. The receiver, by operation of law and without any conveyance orother instrument, act or deed, shall succeed to all the rights, titles, powersand privileges of the association, its members or stockholders, holders ofwithdrawable accounts, its officers and directors or any of them; and to thetitles to the books, records and assets of every description of any previousreceiver or other legal custodian of such association. Such members,stockholders, holders of withdrawable accounts, officers or directors, or anyof them, shall not thereafter, except as hereinafter expressly provided, haveor exercise any such rights, powers or privileges or act in connection with anyassets or property of any nature of the association in receivership: Providedhowever, that any officer, director, member, stockholder, withdrawable accountholder, or borrower of such association shall have the right to communicatewith the Commissioner of Banks with respect to such receivership. TheCommissioner of Banks, with the approval of the Commission, may at any time,direct the receiver to return the association to its previous or a newlyconstituted management. The Commissioner of Banks may provide for a meeting ormeetings of the members or stockholders for any purpose, including, without anylimitation on the generality of the foregoing, the election of directors or anincrease in the number of directors, or both, or the election of an entire newboard of directors; and may provide for a meeting or meetings of the directorsfor any purpose including, without any limitation on the generality of theforegoing, the filling of vacancies on the board, the removal of officers andthe election of new officers, or for any of such purposes. Any such meeting ofmembers or stockholders, or of directors, shall be supervised or conducted by arepresentative of the Commissioner of Banks.
(h) A duly appointedand qualified receiver shall have power and authority to:
(1) Demand, sue for,collect, receive and take into his possession all the goods and chattels,rights and credits, moneys and effects, lands and tenements, books, papers,choses in action, bills, notes, and property of every description of theassociation;
(2) Foreclose mortgages,deeds of trust, and other liens executed to the association to the extent theassociation would have had such right;
(3) Institute suits forthe recovery of any estate, property, damages, or demands existing in favor ofthe association, and he shall, upon his own application, be substituted asparty plaintiff in the place of the association in any suit or proceedingpending at the time of his appointment;
(4) Sell, convey, andassign all the property rights and interest owned by the association;
(5) Appoint agents toserve at his pleasure;
(6) Examine andinvestigate papers and persons, and pass on claims as provided in theregulations as prescribed by the Commissioner of Banks;
(7) Make and carry outagreements with the insuring corporation or with any other financialinstitution for the payment or assumption of the association liabilities, inwhole or in part, and to sell, convey, transfer, pledge, or assign assets assecurity or otherwise and to make guarantees in connection therewith; and
(8) Perform all otheracts which might be done by the employees, officers and directors.
Such powers shall be continued ineffect until liquidation and dissolution or until return of the association toits prior or newly constituted management.
(i) A receiver may atany time during the receivership and prior to final liquidation be removed anda replacement appointed by the Commissioner of Banks.
(j) The Commissionerof Banks may determine that such liquidation proceedings should bediscontinued. He shall then remove the receiver and restore all the rights,powers, and privileges of its members and stockholders, customers, employees,officers and directors, or restore such rights, powers, and privileges to its members,stockholders and customers, and grant such rights, powers and privileges to anewly constituted management, all as of the time of such restoration of theassociation to its management unless another time for such restoration shall bespecified by the Commissioner of Banks. The return of an association to itsmanagement or to a newly constituted management from the possession of areceiver shall, by operation of law and without any conveyance or otherinstrument, act or deed, vest in such association the title to all propertyheld by the receiver in his capacity as receiver for such association.
(k) A receiver may alsobe appointed under the authority of G.S. 1‑502. No judge or court,however, shall appoint a receiver for any State association unless five days'advance notice of the motion, petition or application for appointment of areceiver shall have been given to such association and to the Commissioner ofBanks.
(l ) Following theappointment of a receiver, the Commissioner of Banks shall request the AttorneyGeneral to institute an action in the name of the Commissioner of Banks in thesuperior court against the association for the orderly liquidation anddissolution of the association, and for an injunction to restrain the officers,directors and employees from continuing the operation of the association.
(m) Claims against aState association in receivership shall have the following order of priorityfor payment:
(1) Costs, expenses anddebts of the association incurred on or after the date of the appointment ofthe receiver, including compensation for the receiver;
(2) Claims of holders ofspecial purpose or thrift accounts;
(3) Claims of holders ofwithdrawable accounts;
(4) Claims of generalcreditors;
(5) Claims ofstockholders of a stock association;
(6) All remaining assetsto members and stockholders in an amount proportionate to their holdings as ofthe date of the appointment of the receiver.
(n) All claims of eachclass described within subsection (m) above shall be paid in full so long assufficient assets remain. Members of the class for which the receiver cannotmake payment in full because assets will be depleted during payment to suchclass shall be paid an amount proportionate to their total claims.
(o) The Commissioner ofBanks shall have the authority to direct the payment of claims for which noprovision is herein made, and may direct the payment of claims within a class.The Commissioner of Banks shall have the authority to promulgate rules andregulations governing the payment of claims by an association in receivership.
(p) When all assets ofthe association have been fully liquidated, and all claims and expenses havebeen paid or settled, and the receiver shall recommend a final distribution,the dissolution of the association in receivership shall be accomplished in thefollowing manner:
(1) The receiver shallfile with the Commissioner of Banks a detailed report, in a form to beprescribed by the Commissioner of Banks, of his acts and proposed finaldistribution, and dissolution.
(2) Upon theCommissioner of Banks' approval of the final report of the receiver, thereceiver shall provide such notice and thereafter shall make such finaldistribution, in such manner as the Commissioner of Banks may direct.
(3) When a finaldistribution has been made except as to any unclaimed funds, the receiver shalldeposit such unclaimed funds with the Commissioner of Banks and shall deliverto the Commissioner of Banks all books and records of the dissolvedassociation.
(4) Upon completion ofthe foregoing procedure, and upon the joint petition of the Commissioner ofBanks and receiver to the superior court, the court may find that theassociation should be dissolved, and following such publication of notice ofdissolution as the court may direct, the court may enter a decree of finalresolution and the association shall thereby be dissolved.
(5) Upon finaldissolution of the association in receivership or at such time as the receivershall be otherwise relieved of his duties, the Commissioner of Banks shallcause an audit to be conducted, during which the receiver shall be available toassist in such. The accounts of the receiver shall then be ruled upon by theCommissioner of Banks and Commission and if approved, the receiver shallthereupon be given a final and complete discharge and release. (1981, c. 282, s. 3; 1987, c.237, s. 4; 2001‑193, s. 16.)
