Code of Alabama - Title 5: Banks and Financial Institutions - Chapter 8A - Liquidation of Banks

• Article 1 Solvent Banks.
• Section 5-8A-1 Liquidation of solvent banks
  Any solvent bank may dissolve under the provisions of Alabama law relating to voluntary dissolution of a business corporation provided that the superintendent has given...
• Article 2 Insolvent Banks.
• Section 5-8A-20 Proceedings of superintendent before banking board as to defaults or misconduct of bank
  Whenever it shall appear to the superintendent that any bank has violated its charter or any law of the state, or is conducting business in...
• Section 5-8A-21 Liquidation of bank by superintendent without assent of Banking Board
  If a majority of the directors of any bank so request in writing and the bank has violated any of the provisions of the banking...
• Section 5-8A-22 Institution of civil action for vacation of charter, liquidation, etc., of bank
  The circuit court of the county in which the principal place of business of the bank is located, sitting without a jury may upon application...
• Section 5-8A-23 Acquisition of possession of property and business of bank by superintendent; notice to holders of bank assets
  The superintendent shall not take possession of the property and business of any bank under the provisions of this chapter unless requested in writing to...
• Section 5-8A-24 Appointment of receiver to liquidate bank
  The superintendent may under his or her hand and official seal appoint a receiver to liquidate and distribute the assets of any bank taken possession...
• Section 5-8A-25 Passage of title to assets, etc., of banking institution to receiver
  Upon the appointment of a receiver to liquidate a bank, the possession of and title to all assets, business and property of such bank of...
• Section 5-8A-26 Use of bank examiner's reports as evidence in liquidation proceedings, etc
  In the event the superintendent takes charge of the business and affairs of any bank as authorized in this chapter or in the event a...
• Section 5-8A-27 Application by bank for injunction against acquisition of possession of business and property by receiver or superintendent
  Whenever the superintendent or a receiver has taken charge of the property or business of any bank, such bank may at any time within 10...
• Section 5-8A-28 Creation of liens against bank after possession by superintendent
  After the superintendent has taken possession of the property and business of a bank as provided in this chapter, no judgment lien, attachment lien, or...
• Section 5-8A-29 Resumption of business of bank
  After the superintendent has taken possession of a bank, the superintendent may permit such bank to resume business upon such conditions as may be approved...
• Section 5-8A-30 Collection of claims of bank, etc
  Upon taking possession of any of the property and business of any bank, the receiver may collect moneys due to such bank and do such...
• Section 5-8A-31 Subrogation of Federal Deposit Insurance Corporation
  Whenever any bank shall have been closed as provided under the laws of this state, and the Federal Deposit Insurance Corporation shall pay or make...
• Section 5-8A-32 Sale, etc., of bad debts and property of bank
  The receiver, by making application to the receivership court, may procure an order to sell or compound all bad or doubtful debts and on like...
• Section 5-8A-33 Negotiation of loans, granting of security, etc., on behalf of closed bank
  (a) The receiver is authorized to borrow money and pledge the assets of a bank in liquidation for protecting and preserving its assets, for paying...
• Section 5-8A-34 Loans from and sale of assets to Federal Deposit Insurance Corporation for bank
  With respect to any bank which is now or may hereafter be closed as provided under the laws of this state, the receiver of such...
• Section 5-8A-35 Assumption or rejection of executory contracts by receiver
  The receiver shall assume or reject an executory contract, including an unexpired lease of real or personal property, within 60 days after appointment, but the...
• Section 5-8A-36 Employment of counsel, expert assistants, etc., in liquidation of bank; compensation of assistants, etc.; court approval of liquidation expenses
  The receiver may employ such counsel and procure such expert assistants and advice as may be necessary in the liquidation and distribution of the assets...
• Section 5-8A-37 Payment of compensation
  When the compensation for the various parties aiding in the liquidation is fixed and approved, the same shall be paid out of the funds of...
• Section 5-8A-38 Deposit of funds collected by receiver
  The money collected by the receiver shall be, from time to time, deposited in one or more banks in this state.
• Section 5-8A-39 Notice for and filing of claims against bank
  The receiver shall cause notice to be given by advertisement in such newspaper as he may direct, once a week for six consecutive weeks, calling...
• Section 5-8A-40 Preferred claims
  In addition to any other laws of this state or of the United States granting priority, any draft or cashier's check issued and drawn against...
• Section 5-8A-41 Inventory of assets of bank; filing list of claims
  Upon taking possession of the property and assets of such bank, the receiver shall make an inventory of the assets of such bank in duplicate,...
• Section 5-8A-42 Objections to claims; unproven or unclaimed deposits
  Objections to any claim or deposit not rejected by the receiver may be made by any party interested by filing a copy of such objections...
• Section 5-8A-43 Rejection of claims
  If the receiver doubts the validity of any claims or deposits, he may reject the same and serve notice of such rejection upon the claimant...
• Section 5-8A-44 Actions upon rejected claims; late claims
  Any action upon a claim so rejected must be brought by filing a complaint in the receivership court by the claimant within six months after...
• Section 5-8A-45 Payment of dividends to creditors
  At any time after the expiration of the date fixed for the presentation of claims, the receiver may, out of the funds remaining in his...
• Section 5-8A-46 Final distribution, termination of receivership and dissolution of bank
  Whenever the receiver shall have paid to each and every depositor and creditor of such bank whose claim or claims as such creditor or depositor...

Last modified: May 3, 2021