Procedure upon taking possession of insured association: Federal Deposit Insurance Corporation as liquidator or coliquidator.
1. The Commissioner may, if he takes possession of any association whose savings accounts are to any extent insured by the Federal Deposit Insurance Corporation, tender to the Federal Deposit Insurance Corporation the appointment as statutory liquidator of the association. If he does not make a tender as sole statutory liquidator, he shall tender to the Federal Deposit Insurance Corporation the appointment as statutory coliquidator to act jointly with the Commissioner. The coliquidatorship may not exist for more than 1 year from the date of tender, at the expiration of which time the Commissioner becomes the sole liquidator except as otherwise provided by this section. The Commissioner shall tender to the Federal Deposit Insurance Corporation the appointment as sole statutory liquidator of the association whenever the corporation has become subrogated to the rights of 90 percent of the liability of the association on savings accounts. If the Federal Deposit Insurance Corporation becomes subrogated as to all the savings accounts in the association, it may then exercise all the powers and privileges conferred upon it by this chapter without court approval.
2. If the Federal Deposit Insurance Corporation accepts the appointment as sole liquidator, it possesses all the powers and privileges of the Commissioner as statutory liquidator of a possessed savings and loan association and is subject to all duties of the Commissioner as sole liquidator, except insofar as the powers and privileges or duties are in conflict with federal laws, and except as otherwise provided in this chapter, unless the association resumes business pursuant to the provisions of this chapter. If the Federal Deposit Insurance Corporation accepts the appointment as coliquidator, it possesses all the powers and privileges jointly with the Commissioner and is subject to the duties jointly with the Commissioner.
3. If the Federal Deposit Insurance Corporation accepts the appointment as coliquidator or liquidator, it shall file its acceptance with the Commissioner and the clerk of the district court. The corporation may act without bond. Upon filing its acceptance of appointment as sole liquidator, the possession of and title to all the assets, business and property of the association vests in the Federal Deposit Insurance Corporation without the execution of any conveyance, assignment, transfer or endorsement. Upon filing its acceptance of appointment as coliquidator, the possession and title vests in the Commissioner and the corporation jointly. If the Federal Deposit Insurance Corporation does not qualify as sole liquidator at or before the time provided for the expiration of the coliquidatorship, the corporation must be wholly divested of the joint title and possession, and the sole title and possession vests in the Commissioner. The vesting of title and possession of the property of the association does not render the property subject to any claims by the federal corporation, except those which are encumbered by it with respect to the association and its property. Whether or not it serves as liquidator or coliquidator, the corporation may make loans on the security of or may purchase with the approval of the court, except as otherwise provided in this chapter, all or any part of the assets of any association, the savings accounts of which are to any extent insured by it. In the event of a purchase, the corporation shall pay a reasonable price.
4. Whether or not the Federal Deposit Insurance Corporation serves as liquidator, whenever it pays or makes available for payment the savings accounts of any association in liquidation which are insured by it, it is subrogated upon the surrender and transfer to it of the savings accounts. The surrender and transfer do not affect any right which the transferor has in any savings accounts which are not paid or made available for payment or any right to participate in the distribution of the net proceeds remaining from the disposition of the assets of the association. The rights of the investors and creditors of the association must be determined in accordance with the applicable provisions of the laws of this state.
Last modified: February 26, 2006