General Laws of Massachusetts - Chapter 167 Supervision of Banks - Section 26 Appointment of agents to assist in liquidation and distribution; federal agencies as liquidating agent; subrogation rights

Section 26. The commissioner may, under his hand and official seal, appoint agents to assist him in the duty of liquidation and distribution. The certificates of the appointment of such agents shall be filed in the office of the commissioner and certified copies thereof shall be filed in the office of the clerk of the supreme judicial court. Said commissioner may from time to time authorize such agents to perform such duties connected with said liquidation and distribution as he deems proper. Said commissioner may procure such expert assistance and advice as he considers necessary in the liquidation and distribution of the assets of such bank and he may retain such officers or employees of the bank as he deems necessary. Said commissioner shall require, from a special agent and from such assistants, such security for the faithful discharge of their duty as he deems proper.

Said commissioner may, under his hand and official seal, appoint a federal agency as the liquidating agent of a bank insured by the Federal Deposit Insurance Corporation. Upon its acceptance of the appointment, the agency as liquidating agent shall acquire both legal and equitable title to all of the assets, rights or claims and to all of the real or personal property of the closed bank. The agency as liquidating agent shall have the power to perform all acts and duties of said commissioner in the liquidation of the closed bank. Said commissioner shall petition the supreme judicial court for an order confirming the appointment of the agency as liquidating agent of such bank.

Whenever a federal deposit insurance agency pays or makes available for payment the insured deposit liabilities of a closed bank, it shall become subrogated to all of the rights of the owners of the deposits against the closed bank, whether or not it has become receiver thereof, in the same manner and to the same extent as it would be subrogated in the closing of a national banking association as provided in 12 USC 1811 et seq. For the purposes of this section and section 26A, a federal agency shall mean the Federal Deposit Insurance Corporation, any successor to such corporation, or any other agency or instrumentality of the United States.

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Last modified: September 11, 2015