(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 savings bank organizedand operated under this Chapter for any of the purposes enumerated in thissection, if it reasonably appears from examinations or from reports made to theCommissioner of Banks that:
(1) The directors,officers, or liquidators have neglected, failed, or refused to take action thatthe Commissioner of Banks may deem necessary for the protection of the savingsbank or have impeded or obstructed an examination;
(2) The net worth of thesavings bank is impaired to the extent that the realizable value of its assetsis insufficient to pay in full its creditors and holders of deposit accounts;
(3) The business of thesavings bank is being conducted in a fraudulent, illegal, or unsafe manner, orthat the savings bank is in an unsafe or unsound condition to transactbusiness; for purposes of this subdivision, any savings bank that, except asauthorized in writing by the Commissioner of Banks, fails to make full paymentof any withdrawal when due is in an unsafe or unsound condition to transactbusiness, notwithstanding the certificate of incorporation or the statutes orregulations with respect to payment of withdrawals in event a savings bank doesnot pay all withdrawals in full;
(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;
(5) The savings bank hasexperienced a substantial dissipation of assets or earnings due to anyviolation or violation of statute or regulation, or due to any unsafe orunsound practice or practices;
(6) The savings bank isinsolvent, or is in imminent danger of insolvency or has suspended its ordinarybusiness transactions due to insufficient funds; or
(7) The savings bank isunable to continue operations.
(b) Unless theCommissioner of Banks finds that an emergency exists that may result in loss tomembers, deposit account holders, stockholders, or creditors, and that requiresthat the Commissioner of Banks take custody immediately, the Commissioner ofBanks shall first give written notice to the directors and officers specifyingthe conditions criticized and allowing a reasonable time in which correctionsmay be made before a receiver shall be appointed as outlined in subsection (d)of this section.
(c) The purposes forwhich the Commissioner of Banks may take custody of a savings bank includeexamination or further examination, conservation of its assets, restoration ofimpaired capital, and the making of any reasonable or equitable adjustmentdeemed necessary by the Commissioner of Banks under any plan of reorganization.
(d) If the Commissionerof Banks, after taking custody of a savings bank, finds that one or more of thereasons for having taken custody continue to exist through the period ofcustody, with little or no likelihood of amelioration of the situation, thenthe Commissioner of Banks shall appoint as receiver or coreceiver any qualifiedperson, firm, or corporation for the purpose of liquidation of the savingsbank, which receiver shall furnish bond in form, amount, and with surety as theCommissioner of Banks may require. The Commissioner of Banks may appoint theassociation's deposit account insurance corporation or its nominee as thereceiver, and the insuring corporation shall be permitted to serve withoutposting bond.
(e) In the event theCommissioner of Banks appoints a receiver for a savings bank, the Commissionerof Banks shall mail a certified copy of the appointment order by certified mailto the address of the savings bank as it appears on the records of theDivision, and to any previous receiver or other legal custodian of the savingsbank, and to any court or other authority to which the previous receiver orother legal custodian is subject. Notice of the appointment may be published ina newspaper of general circulation in the county where the savings bank has itsprincipal office.
(f) Whenever areceiver for a savings bank is appointed under subsection (d) of this section,the savings bank may within 30 days thereafter bring an action in the SuperiorCourt of Wake County, for an order requiring the Commissioner of Banks toremove the receiver.
(g) The duly appointedand qualified receiver shall take possession promptly of the savings bank forwhich the receiver has been so appointed, in accordance with the terms of theappointment, by service of a certified copy of the Commissioner of Banks'appointment order upon the savings bank at its principal office through theofficer or employee who is present and appears to be in charge. Immediatelyupon taking possession of the savings bank, the receiver shall take possessionand title to books, records, and assets of every description of the savingsbank. The receiver, by operation of law and without any conveyance or otherinstrument, act or deed, shall succeed to all the rights, titles, powers, andprivileges of the savings bank, its members or stockholders, holders of depositaccounts, its officers and directors or any of them; and to the titles to thebooks, records, and assets of every description of any previous receiver orother legal custodian of the savings bank. The members, stockholders, holdersof deposit accounts, officers or directors, or any of them, shall notthereafter, except as expressly provided in this section have or exercise anyrights, powers or privileges or act in connection with any assets or propertyof any nature of the savings bank in receivership. The Commissioner of Banks,with the approval of the Commission, may at any time, direct the receiver toreturn the savings bank to its previous or a newly constituted management. TheCommissioner of Banks may provide for a meeting or meetings of the members orstockholders for any purpose, including 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 the filling of vacancies on the board, the removal ofofficers and the election of new officers, or for any of these purposes. Anymeeting of members or stockholders, or of directors, shall be supervised orconducted by a representative of the Commissioner of Banks.
(h) A duly appointedand qualified receiver may:
(1) Demand, sue for,collect, receive and take into possession all the goods and chattels, rights andcredits, moneys and effects, lands and tenements, books, papers, chooses inaction, bills, notes and property of every description of the savings bank;
(2) Foreclose mortgages,deeds of trust, and other liens executed to the savings bank to the extent thesavings bank would have had this right;
(3) Institute suits forthe recovery of any estate, property, damages, or demands existing in favor ofthe savings bank, and shall, upon the receiver's own application, besubstituted as party plaintiff in the place of the savings bank in any suit orproceeding pending at the time of the receiver's appointment;
(4) Sell, convey, andassign all the property rights and interests owned by the savings bank;
(5) Appoint agents;
(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 savings bank's 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 that might be done by the employees, officers, and directors.
These powers shall becontinued in effect until liquidation and dissolution or until return of thesavings bank to its prior or newly constituted management.
(i) A receiver may, atany time during the receivership and before final liquidation, be removed and areplacement appointed by the Commissioner of Banks.
(j) The Commissionerof Banks may determine that the liquidation proceedings should be discontinued.The Commissioner of Banks shall then remove the receiver and restore all therights, powers, and privileges of its members and stockholders, customers,employees, officers, and directors, or restore these rights, powers, andprivileges to its members, stockholders, and customers, and grant these rights,powers, and privileges to a newly constituted management, all as of the time ofthe restoration of the savings bank to its management unless another time forthe restoration is specified by the Commissioner of Banks. The return of asavings bank to its management or to a newly constituted management from thepossession of a receiver shall, by operation of law and without any conveyanceor other instrument, act or deed, vest in the savings bank the title to allproperty held by the receiver in the capacity as receiver for the savings bank.
(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 savings bank unless five days'advance notice of the motion, petition, or application for appointment of areceiver has been given to the savings bank and to the Commissioner of Banks.
(l ) Following theappointment of a receiver, the Commissioner of Banks may request the AttorneyGeneral to institute an action in the name of the Commissioner of Banks in thesuperior court against the savings bank 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 savings bank.
(m) Claims against theState association in receivership shall have the following order of priorityfor payment:
(1) Costs, expenses, anddebts of the savings bank 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 ofdeposit accounts.
(4) Claims of generalcreditors.
(5) Claims ofstockholders of a stock savings bank.
(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) of this section shall be paid in full solong as sufficient assets remain. Members of the class for which the receivercannot make payment in full because assets will be depleted during payment tothat class shall be paid an amount proportionate to their total claims.
(o) The Commissioner ofBanks may direct the payment of claims for which no provision is made in thissection, and may direct the payment of claims within a class.
(p) When all assets ofthe savings bank have been fully liquidated, and all claims and expenses havebeen paid or settled, and the receiver has recommended a final distribution,the dissolution of the savings bank in receivership shall be accomplished inthe following manner:
(1) The receiver shallfile with the Commissioner of Banks a detailed report, in a form to beprescribed by the Commissioner of Banks, of the receiver's acts and proposedfinal distribution, and dissolution.
(2) Upon theCommissioner of Banks' approval of the final report of the receiver, thereceiver shall provide notice and thereafter shall make the final distribution,in any manner as the Commissioner of Banks may direct.
(3) When a finaldistribution has been made except as to any unclaimed funds, the receiver shalldeposit the unclaimed funds with the Commissioner of Banks and shall deliver tothe Commissioner of Banks all books and records of the dissolved association.
(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 the savingsbank should be dissolved, and following publication of notice of dissolution asthe court may direct, the court may enter a decree of final resolution and thesavings bank shall therefore be dissolved.
(5) Upon finaldissolution of the savings bank in receivership or at any time as the receivershall be otherwise relieved of duties, the Commissioner of Banks shall cause anaudit to be conducted, during which the receiver shall be available to assist.The accounts of the receiver shall then be ruled upon by the Commissioner ofBanks and Commission and if approved, the receiver shall thereupon be given afinal and complete discharge and release. (1991, c. 680, s. 1; 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 savings bank organizedand operated under this Chapter for any of the purposes enumerated in thissection, if it reasonably appears from examinations or from reports made to theCommissioner of Banks that:
(1) The directors,officers, or liquidators have neglected, failed, or refused to take action thatthe Commissioner of Banks may deem necessary for the protection of the savingsbank or have impeded or obstructed an examination;
(2) The net worth of thesavings bank is impaired to the extent that the realizable value of its assetsis insufficient to pay in full its creditors and holders of deposit accounts;
(3) The business of thesavings bank is being conducted in a fraudulent, illegal, or unsafe manner, orthat the savings bank is in an unsafe or unsound condition to transactbusiness; for purposes of this subdivision, any savings bank that, except asauthorized in writing by the Commissioner of Banks, fails to make full paymentof any withdrawal when due is in an unsafe or unsound condition to transactbusiness, notwithstanding the certificate of incorporation or the statutes orregulations with respect to payment of withdrawals in event a savings bank doesnot pay all withdrawals in full;
(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;
(5) The savings bank hasexperienced a substantial dissipation of assets or earnings due to anyviolation or violation of statute or regulation, or due to any unsafe orunsound practice or practices;
(6) The savings bank isinsolvent, or is in imminent danger of insolvency or has suspended its ordinarybusiness transactions due to insufficient funds; or
(7) The savings bank isunable to continue operations.
(b) Unless theCommissioner of Banks finds that an emergency exists that may result in loss tomembers, deposit account holders, stockholders, or creditors, and that requiresthat the Commissioner of Banks take custody immediately, the Commissioner ofBanks shall first give written notice to the directors and officers specifyingthe conditions criticized and allowing a reasonable time in which correctionsmay be made before a receiver shall be appointed as outlined in subsection (d)of this section.
(c) The purposes forwhich the Commissioner of Banks may take custody of a savings bank includeexamination or further examination, conservation of its assets, restoration ofimpaired capital, and the making of any reasonable or equitable adjustmentdeemed necessary by the Commissioner of Banks under any plan of reorganization.
(d) If the Commissionerof Banks, after taking custody of a savings bank, finds that one or more of thereasons for having taken custody continue to exist through the period ofcustody, with little or no likelihood of amelioration of the situation, thenthe Commissioner of Banks shall appoint as receiver or coreceiver any qualifiedperson, firm, or corporation for the purpose of liquidation of the savingsbank, which receiver shall furnish bond in form, amount, and with surety as theCommissioner of Banks may require. The Commissioner of Banks may appoint theassociation's deposit account insurance corporation or its nominee as thereceiver, and the insuring corporation shall be permitted to serve withoutposting bond.
(e) In the event theCommissioner of Banks appoints a receiver for a savings bank, the Commissionerof Banks shall mail a certified copy of the appointment order by certified mailto the address of the savings bank as it appears on the records of theDivision, and to any previous receiver or other legal custodian of the savingsbank, and to any court or other authority to which the previous receiver orother legal custodian is subject. Notice of the appointment may be published ina newspaper of general circulation in the county where the savings bank has itsprincipal office.
(f) Whenever areceiver for a savings bank is appointed under subsection (d) of this section,the savings bank may within 30 days thereafter bring an action in the SuperiorCourt of Wake County, for an order requiring the Commissioner of Banks toremove the receiver.
(g) The duly appointedand qualified receiver shall take possession promptly of the savings bank forwhich the receiver has been so appointed, in accordance with the terms of theappointment, by service of a certified copy of the Commissioner of Banks'appointment order upon the savings bank at its principal office through theofficer or employee who is present and appears to be in charge. Immediatelyupon taking possession of the savings bank, the receiver shall take possessionand title to books, records, and assets of every description of the savingsbank. The receiver, by operation of law and without any conveyance or otherinstrument, act or deed, shall succeed to all the rights, titles, powers, andprivileges of the savings bank, its members or stockholders, holders of depositaccounts, its officers and directors or any of them; and to the titles to thebooks, records, and assets of every description of any previous receiver orother legal custodian of the savings bank. The members, stockholders, holdersof deposit accounts, officers or directors, or any of them, shall notthereafter, except as expressly provided in this section have or exercise anyrights, powers or privileges or act in connection with any assets or propertyof any nature of the savings bank in receivership. The Commissioner of Banks,with the approval of the Commission, may at any time, direct the receiver toreturn the savings bank to its previous or a newly constituted management. TheCommissioner of Banks may provide for a meeting or meetings of the members orstockholders for any purpose, including 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 the filling of vacancies on the board, the removal ofofficers and the election of new officers, or for any of these purposes. Anymeeting of members or stockholders, or of directors, shall be supervised orconducted by a representative of the Commissioner of Banks.
(h) A duly appointedand qualified receiver may:
(1) Demand, sue for,collect, receive and take into possession all the goods and chattels, rights andcredits, moneys and effects, lands and tenements, books, papers, chooses inaction, bills, notes and property of every description of the savings bank;
(2) Foreclose mortgages,deeds of trust, and other liens executed to the savings bank to the extent thesavings bank would have had this right;
(3) Institute suits forthe recovery of any estate, property, damages, or demands existing in favor ofthe savings bank, and shall, upon the receiver's own application, besubstituted as party plaintiff in the place of the savings bank in any suit orproceeding pending at the time of the receiver's appointment;
(4) Sell, convey, andassign all the property rights and interests owned by the savings bank;
(5) Appoint agents;
(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 savings bank's 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 that might be done by the employees, officers, and directors.
These powers shall becontinued in effect until liquidation and dissolution or until return of thesavings bank to its prior or newly constituted management.
(i) A receiver may, atany time during the receivership and before final liquidation, be removed and areplacement appointed by the Commissioner of Banks.
(j) The Commissionerof Banks may determine that the liquidation proceedings should be discontinued.The Commissioner of Banks shall then remove the receiver and restore all therights, powers, and privileges of its members and stockholders, customers,employees, officers, and directors, or restore these rights, powers, andprivileges to its members, stockholders, and customers, and grant these rights,powers, and privileges to a newly constituted management, all as of the time ofthe restoration of the savings bank to its management unless another time forthe restoration is specified by the Commissioner of Banks. The return of asavings bank to its management or to a newly constituted management from thepossession of a receiver shall, by operation of law and without any conveyanceor other instrument, act or deed, vest in the savings bank the title to allproperty held by the receiver in the capacity as receiver for the savings bank.
(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 savings bank unless five days'advance notice of the motion, petition, or application for appointment of areceiver has been given to the savings bank and to the Commissioner of Banks.
(l ) Following theappointment of a receiver, the Commissioner of Banks may request the AttorneyGeneral to institute an action in the name of the Commissioner of Banks in thesuperior court against the savings bank 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 savings bank.
(m) Claims against theState association in receivership shall have the following order of priorityfor payment:
(1) Costs, expenses, anddebts of the savings bank 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 ofdeposit accounts.
(4) Claims of generalcreditors.
(5) Claims ofstockholders of a stock savings bank.
(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) of this section shall be paid in full solong as sufficient assets remain. Members of the class for which the receivercannot make payment in full because assets will be depleted during payment tothat class shall be paid an amount proportionate to their total claims.
(o) The Commissioner ofBanks may direct the payment of claims for which no provision is made in thissection, and may direct the payment of claims within a class.
(p) When all assets ofthe savings bank have been fully liquidated, and all claims and expenses havebeen paid or settled, and the receiver has recommended a final distribution,the dissolution of the savings bank in receivership shall be accomplished inthe following manner:
(1) The receiver shallfile with the Commissioner of Banks a detailed report, in a form to beprescribed by the Commissioner of Banks, of the receiver's acts and proposedfinal distribution, and dissolution.
(2) Upon theCommissioner of Banks' approval of the final report of the receiver, thereceiver shall provide notice and thereafter shall make the final distribution,in any manner as the Commissioner of Banks may direct.
(3) When a finaldistribution has been made except as to any unclaimed funds, the receiver shalldeposit the unclaimed funds with the Commissioner of Banks and shall deliver tothe Commissioner of Banks all books and records of the dissolved association.
(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 the savingsbank should be dissolved, and following publication of notice of dissolution asthe court may direct, the court may enter a decree of final resolution and thesavings bank shall therefore be dissolved.
(5) Upon finaldissolution of the savings bank in receivership or at any time as the receivershall be otherwise relieved of duties, the Commissioner of Banks shall cause anaudit to be conducted, during which the receiver shall be available to assist.The accounts of the receiver shall then be ruled upon by the Commissioner ofBanks and Commission and if approved, the receiver shall thereupon be given afinal and complete discharge and release. (1991, c. 680, s. 1; 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 savings bank organizedand operated under this Chapter for any of the purposes enumerated in thissection, if it reasonably appears from examinations or from reports made to theCommissioner of Banks that:
(1) The directors,officers, or liquidators have neglected, failed, or refused to take action thatthe Commissioner of Banks may deem necessary for the protection of the savingsbank or have impeded or obstructed an examination;
(2) The net worth of thesavings bank is impaired to the extent that the realizable value of its assetsis insufficient to pay in full its creditors and holders of deposit accounts;
(3) The business of thesavings bank is being conducted in a fraudulent, illegal, or unsafe manner, orthat the savings bank is in an unsafe or unsound condition to transactbusiness; for purposes of this subdivision, any savings bank that, except asauthorized in writing by the Commissioner of Banks, fails to make full paymentof any withdrawal when due is in an unsafe or unsound condition to transactbusiness, notwithstanding the certificate of incorporation or the statutes orregulations with respect to payment of withdrawals in event a savings bank doesnot pay all withdrawals in full;
(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;
(5) The savings bank hasexperienced a substantial dissipation of assets or earnings due to anyviolation or violation of statute or regulation, or due to any unsafe orunsound practice or practices;
(6) The savings bank isinsolvent, or is in imminent danger of insolvency or has suspended its ordinarybusiness transactions due to insufficient funds; or
(7) The savings bank isunable to continue operations.
(b) Unless theCommissioner of Banks finds that an emergency exists that may result in loss tomembers, deposit account holders, stockholders, or creditors, and that requiresthat the Commissioner of Banks take custody immediately, the Commissioner ofBanks shall first give written notice to the directors and officers specifyingthe conditions criticized and allowing a reasonable time in which correctionsmay be made before a receiver shall be appointed as outlined in subsection (d)of this section.
(c) The purposes forwhich the Commissioner of Banks may take custody of a savings bank includeexamination or further examination, conservation of its assets, restoration ofimpaired capital, and the making of any reasonable or equitable adjustmentdeemed necessary by the Commissioner of Banks under any plan of reorganization.
(d) If the Commissionerof Banks, after taking custody of a savings bank, finds that one or more of thereasons for having taken custody continue to exist through the period ofcustody, with little or no likelihood of amelioration of the situation, thenthe Commissioner of Banks shall appoint as receiver or coreceiver any qualifiedperson, firm, or corporation for the purpose of liquidation of the savingsbank, which receiver shall furnish bond in form, amount, and with surety as theCommissioner of Banks may require. The Commissioner of Banks may appoint theassociation's deposit account insurance corporation or its nominee as thereceiver, and the insuring corporation shall be permitted to serve withoutposting bond.
(e) In the event theCommissioner of Banks appoints a receiver for a savings bank, the Commissionerof Banks shall mail a certified copy of the appointment order by certified mailto the address of the savings bank as it appears on the records of theDivision, and to any previous receiver or other legal custodian of the savingsbank, and to any court or other authority to which the previous receiver orother legal custodian is subject. Notice of the appointment may be published ina newspaper of general circulation in the county where the savings bank has itsprincipal office.
(f) Whenever areceiver for a savings bank is appointed under subsection (d) of this section,the savings bank may within 30 days thereafter bring an action in the SuperiorCourt of Wake County, for an order requiring the Commissioner of Banks toremove the receiver.
(g) The duly appointedand qualified receiver shall take possession promptly of the savings bank forwhich the receiver has been so appointed, in accordance with the terms of theappointment, by service of a certified copy of the Commissioner of Banks'appointment order upon the savings bank at its principal office through theofficer or employee who is present and appears to be in charge. Immediatelyupon taking possession of the savings bank, the receiver shall take possessionand title to books, records, and assets of every description of the savingsbank. The receiver, by operation of law and without any conveyance or otherinstrument, act or deed, shall succeed to all the rights, titles, powers, andprivileges of the savings bank, its members or stockholders, holders of depositaccounts, its officers and directors or any of them; and to the titles to thebooks, records, and assets of every description of any previous receiver orother legal custodian of the savings bank. The members, stockholders, holdersof deposit accounts, officers or directors, or any of them, shall notthereafter, except as expressly provided in this section have or exercise anyrights, powers or privileges or act in connection with any assets or propertyof any nature of the savings bank in receivership. The Commissioner of Banks,with the approval of the Commission, may at any time, direct the receiver toreturn the savings bank to its previous or a newly constituted management. TheCommissioner of Banks may provide for a meeting or meetings of the members orstockholders for any purpose, including 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 the filling of vacancies on the board, the removal ofofficers and the election of new officers, or for any of these purposes. Anymeeting of members or stockholders, or of directors, shall be supervised orconducted by a representative of the Commissioner of Banks.
(h) A duly appointedand qualified receiver may:
(1) Demand, sue for,collect, receive and take into possession all the goods and chattels, rights andcredits, moneys and effects, lands and tenements, books, papers, chooses inaction, bills, notes and property of every description of the savings bank;
(2) Foreclose mortgages,deeds of trust, and other liens executed to the savings bank to the extent thesavings bank would have had this right;
(3) Institute suits forthe recovery of any estate, property, damages, or demands existing in favor ofthe savings bank, and shall, upon the receiver's own application, besubstituted as party plaintiff in the place of the savings bank in any suit orproceeding pending at the time of the receiver's appointment;
(4) Sell, convey, andassign all the property rights and interests owned by the savings bank;
(5) Appoint agents;
(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 savings bank's 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 that might be done by the employees, officers, and directors.
These powers shall becontinued in effect until liquidation and dissolution or until return of thesavings bank to its prior or newly constituted management.
(i) A receiver may, atany time during the receivership and before final liquidation, be removed and areplacement appointed by the Commissioner of Banks.
(j) The Commissionerof Banks may determine that the liquidation proceedings should be discontinued.The Commissioner of Banks shall then remove the receiver and restore all therights, powers, and privileges of its members and stockholders, customers,employees, officers, and directors, or restore these rights, powers, andprivileges to its members, stockholders, and customers, and grant these rights,powers, and privileges to a newly constituted management, all as of the time ofthe restoration of the savings bank to its management unless another time forthe restoration is specified by the Commissioner of Banks. The return of asavings bank to its management or to a newly constituted management from thepossession of a receiver shall, by operation of law and without any conveyanceor other instrument, act or deed, vest in the savings bank the title to allproperty held by the receiver in the capacity as receiver for the savings bank.
(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 savings bank unless five days'advance notice of the motion, petition, or application for appointment of areceiver has been given to the savings bank and to the Commissioner of Banks.
(l ) Following theappointment of a receiver, the Commissioner of Banks may request the AttorneyGeneral to institute an action in the name of the Commissioner of Banks in thesuperior court against the savings bank 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 savings bank.
(m) Claims against theState association in receivership shall have the following order of priorityfor payment:
(1) Costs, expenses, anddebts of the savings bank 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 ofdeposit accounts.
(4) Claims of generalcreditors.
(5) Claims ofstockholders of a stock savings bank.
(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) of this section shall be paid in full solong as sufficient assets remain. Members of the class for which the receivercannot make payment in full because assets will be depleted during payment tothat class shall be paid an amount proportionate to their total claims.
(o) The Commissioner ofBanks may direct the payment of claims for which no provision is made in thissection, and may direct the payment of claims within a class.
(p) When all assets ofthe savings bank have been fully liquidated, and all claims and expenses havebeen paid or settled, and the receiver has recommended a final distribution,the dissolution of the savings bank in receivership shall be accomplished inthe following manner:
(1) The receiver shallfile with the Commissioner of Banks a detailed report, in a form to beprescribed by the Commissioner of Banks, of the receiver's acts and proposedfinal distribution, and dissolution.
(2) Upon theCommissioner of Banks' approval of the final report of the receiver, thereceiver shall provide notice and thereafter shall make the final distribution,in any manner as the Commissioner of Banks may direct.
(3) When a finaldistribution has been made except as to any unclaimed funds, the receiver shalldeposit the unclaimed funds with the Commissioner of Banks and shall deliver tothe Commissioner of Banks all books and records of the dissolved association.
(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 the savingsbank should be dissolved, and following publication of notice of dissolution asthe court may direct, the court may enter a decree of final resolution and thesavings bank shall therefore be dissolved.
(5) Upon finaldissolution of the savings bank in receivership or at any time as the receivershall be otherwise relieved of duties, the Commissioner of Banks shall cause anaudit to be conducted, during which the receiver shall be available to assist.The accounts of the receiver shall then be ruled upon by the Commissioner ofBanks and Commission and if approved, the receiver shall thereupon be given afinal and complete discharge and release. (1991, c. 680, s. 1; 2001‑193, s. 16.)
