Texas Finance Code - Section 36.204. Contest Of Liquidation
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Texas Lawyer > Finance Code > Texas Finance Code - Section 36.204. Contest Of Liquidation
§ 36.204. CONTEST OF LIQUIDATION. (a) A state bank,
acting through a majority of its directors, managers, or managing
participants, may intervene in an action filed by the banking
commissioner closing a state bank to challenge the banking
commissioner's closing of the bank and to enjoin the banking
commissioner or other receiver from liquidating its assets. The
bank must file the intervention not later than the second business
day after the closing of the bank, excluding legal holidays. The
court may issue an ex parte order restraining the receiver from
liquidating bank assets pending a hearing on the injunction. The
receiver shall comply with the restraining order but may petition
the court for permission to liquidate an asset as necessary to
prevent its loss or diminution pending the outcome of the
injunction.
(b) The court shall hear an action as quickly as possible
and shall give it priority over other business.
(c) The bank or receiver may appeal the court's judgment as
in other civil cases, except that the receiver shall retain all bank
assets pending a final appellate court order even if the banking
commissioner does not prevail in the trial court. If the banking
commissioner prevails in the trial court, liquidation of the bank
may proceed unless the trial court or appellate court orders
otherwise. If liquidation is enjoined or stayed pending appeal,
the trial court retains jurisdiction to permit liquidation of an
asset as necessary to prevent its loss or diminution pending the
outcome of the appeal.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 36.109 36.110 36.111 36.112 36.201 36.202 36.203 36.204 36.205 36.206 36.207 36.208 36.209 36.210 36.211
Last modified: August 10, 2007
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