Powers of Commissioner when in possession of business, property and assets. If the Commissioner is in possession of the business, property and assets of an association, whether or not he is liquidating the affairs of the association, the Commissioner may:
1. Pay and discharge any secured claims against the association. No secured claim may be paid in an amount larger than the value of the security at the time of payment.
2. Pay administrative or current expenses incurred before the taking of possession which are necessary or convenient to the orderly or economic liquidation or preservation of the assets, and pay all wages or salaries, in amounts not exceeding such amounts as are normally paid to officers and employees. No salary increases may be proposed or consented to by the Commissioner, conservator or receiver. The number of staff members which are required or needed for the operation of the association must be determined by the Commissioner.
3. Disaffirm any executory contracts, including leases, to which the association is a party, and disaffirm any partially executed contracts, including leases, to the extent that they remain executory. The disaffirmance must be made within 6 months after obtaining knowledge of the existence of the contract or lease.
Last modified: February 26, 2006