New Jersey Revised Statutes § 17:9a-271 - Effect Of Possession By Commissioner On Liens; Possession As A Stay

17:9A-271. Effect of possession by commissioner on liens; possession as a stay
A.All levies, judgments, attachments and other liens, upon property obtained through legal proceedings against a bank when it is insolvent and within four months prior to the commissioner's taking possession of its property and business, and any title resulting from enforcement of any such lien, shall be void, except title obtained by a bona fide purchaser for value.

B.While the commissioner is in possession of the property and business of a bank, no person shall acquire a lien or charge on any assets of the bank for any liability of the bank existing at the time of the taking of possession.

C.So long as the commissioner retains possession of the property and business of a bank, and unless otherwise ordered by the Superior Court, upon notice to the commissioner,

(1) no person shall institute a proceeding in any court against the bank, except as authorized by this article, and the running of any statute of limitations shall be suspended so long as the disability imposed by this paragraph remains in effect;

(2) all proceedings pending in any court when the commissioner takes possession shall be stayed; and

(3) no judgment, levy, execution or distraint shall be enforced against the property of the bank.

D.The Superior Court shall have jurisdiction to make such orders as may be necessary to effect the purposes of this section.

L.1948, c.67,s.271; amended 1953, c.17,s.44.

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Last modified: October 11, 2016