Texas Finance Code Title 3, Chapter 36 - Dissolution And Receivership

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 36.001 - Definition
  In this chapter, "administrative expense" means: (1) an expense designated as an administrative expense by Subchapter C or D; (2) court costs and expenses of...
• Texas Section 36.002 - Remedies Exclusive
  (a) Unless the banking commissioner so requests, a court may not: (1) order the closing or suspension of operation of a state bank; or (2)...
• Texas Section 36.003 - Federal Deposit Insurance Corporation As Liquidator
  (a) The banking commissioner without court action may tender a state bank that has been closed for liquidation to the Federal Deposit Insurance Corporation or...
• Texas Section 36.004 - Appointment Of Independent Receiver
  (a) On request of the banking commissioner, the court in which a liquidation proceeding is pending may: (1) appoint an independent receiver; and (2) require...

SUBCHAPTER B VOLUNTARY DISSOLUTION

• Texas Section 36.005 - Succession Of Trust Powers
  (a) If a state bank in the process of voluntary or involuntary dissolution and liquidation is acting as trustee, guardian, executor, administrator, or escrow agent,...
• Texas Section 36.101 - Initiating Voluntary Dissolution
  (a) A state bank may initiate voluntary dissolution and surrender its charter as provided by this subchapter: (1) with the approval of the banking commissioner;...
• Texas Section 36.102 - Filing Resolutions With Banking Commissioner
  After resolutions to dissolve and liquidate a state bank have been adopted by the bank's board and shareholders, a majority of the directors shall verify...
• Texas Section 36.103 - Banking Commissioner Investigation And Consent
  The banking commissioner shall review the documentation submitted under Section 36.102 and conduct any necessary investigation or examination. If the proceedings appear to have been...
• Texas Section 36.104 - Notice Of Pending Dissolution
  (a) A state bank initiating voluntary dissolution shall publish notice of its pending dissolution in a newspaper of general circulation in each community where its...
• Texas Section 36.105 - Safe Deposits And Other Bailments
  (a) A contract between the bank and a person for bailment, of deposit for hire, or for lease of a safe, vault, or box ceases...
• Texas Section 36.106 - Offices To Remain Open
  Unless the banking commissioner directs or consents otherwise, the home office and all branch offices of a state bank initiating voluntary dissolution shall remain open...
• Texas Section 36.107 - Fiduciary Activities
  (a) As soon after publication of the notice of dissolution as is practicable, the bank shall: (1) terminate all fiduciary positions it holds; (2) surrender...
• Texas Section 36.108 - Final Liquidation
  (a) After the bank has taken all of the actions specified by Sections 36.102, 36.105, and 36.107, paid all its debts and obligations, and transferred...
• Texas Section 36.109 - Application Of Law To Bank In Dissolution
  A state bank in the process of voluntary dissolution and liquidation remains subject to this subtitle and Chapters 11 and 12, including provisions for examination...
• Texas Section 36.110 - Authorization Of Deviation From Procedures
  The banking commissioner may authorize a deviation from the procedures for voluntary dissolution in this subchapter if the banking commissioner determines that the interests of...
• Texas Section 36.111 - Closure By Banking Commissioner For Involuntary Dissolution And Liquidation
  The banking commissioner may close a state bank for involuntary dissolution and liquidation under this chapter if the banking commissioner determines that: (1) the voluntary...

SUBCHAPTER C INVOLUNTARY DISSOLUTION AND LIQUIDATION

• Texas Section 36.112 - Application For New Charter
  After a state bank's charter has been voluntarily surrendered and canceled, the bank may not resume business or reopen except on application for and approval...
• Texas Section 36.201 - Action To Close State Bank
  (a) The banking commissioner may close and liquidate a state bank on finding that: (1) the interests of the bank's depositors and creditors are jeopardized...
• Texas Section 36.202 - Notice And Effect Of Closure; Appointment Of Receiver
  (a) After closing a state bank under Section 36.201, the banking commissioner shall place a sign at its main entrance stating that the bank has...
• Texas Section 36.203 - Nature And Duration Of Receivership
  (a) The court may not require a bond from the banking commissioner as receiver. (b) A reference in this chapter to the receiver is a...
• Texas Section 36.204 - Contest Of Liquidation
  (a) A state bank, acting through a majority of its directors, may intervene in an action filed by the banking commissioner closing a state bank...
• Texas Section 36.205 - Notice Of Bank Closing
  (a) As soon as reasonably practicable after initiation of the receivership proceeding, the receiver shall publish notice in a newspaper of general circulation in each...
• Texas Section 36.206 - Inventory
  As soon as reasonably practicable given the state of bank records and the adequacy of staffing, the receiver shall prepare a comprehensive inventory of the...
• Texas Section 36.207 - Receiver's Title And Priority
  (a) The receiver has the title to all the bank's property, contracts, and rights of action, wherever located, beginning on the date the bank is...
• Texas Section 36.208 - Rights Fixed
  The rights and liabilities of the bank in liquidation and of a depositor, creditor, officer, director, employee, shareholder, agent, or other person interested in the...
• Texas Section 36.209 - Depositories
  (a) The receiver may deposit money collected on behalf of the bank estate in: (1) the Texas Treasury Safekeeping Trust Company in accordance with procedures...
• Texas Section 36.210 - Pending Lawsuit
  (a) A judgment or order of a court of this state or of another jurisdiction in an action pending by or against the bank, rendered...
• Texas Section 36.211 - New Lawsuit
  (a) Except as otherwise provided by this section, the court in which the receivership proceeding is pending under this subchapter has exclusive jurisdiction to hear...
• Texas Section 36.212 - Requiring Record Or Other Property In Possession Of Other Person
  (a) Each bank affiliate, officer, director, shareholder, trustee, agent, servant, employee, attorney, attorney-in-fact, or correspondent shall immediately deliver to the receiver, without cost to the...
• Texas Section 36.213 - Injunction In Aid Of Liquidation
  (a) On application by the receiver, the court with or without notice may issue an injunction: (1) restraining a bank officer, director, shareholder, trustee, agent,...
• Texas Section 36.214 - Subpoena
  (a) The receiver may request the court ex parte to issue a subpoena to compel the attendance and testimony of a witness before the receiver...
• Texas Section 36.215 - Executory Contract; Oral Agreement
  (a) Not later than six months after the date the receivership proceeding begins, the receiver may terminate any executory contract to which the bank is...
• Texas Section 36.216 - Preferences
  (a) A transfer of or lien on the property or assets of a state bank is voidable by the receiver if the transfer or lien:...
• Texas Section 36.217 - Employees Of Receiver
  The receiver may employ agents, legal counsel, accountants, appraisers, consultants, and other personnel the receiver considers necessary to assist in the performance of the receiver's...
• Texas Section 36.218 - Disposal Of Property; Settling Of Claim
  (a) In liquidating a bank, the receiver on order of the court entered with or without hearing may: (1) sell all or part of the...
• Texas Section 36.219 - Court Order; Notice And Hearing
  If the court requires notice and hearing before entering an order, the court shall set the time and place of the hearing and prescribe whether...
• Texas Section 36.220 - Receiver's Report; Expenses
  (a) The receiver shall file with the court: (1) a quarterly report showing the operation, receipts, expenditures, and general condition of the bank in liquidation;...
• Texas Section 36.221 - Court-ordered Audit
  The court may order an audit of the books and records of the receiver that relate to the receivership. A report of an audit ordered...
• Texas Section 36.222 - Safe Deposits And Other Bailments
  (a) A contract between the bank and another person for bailment, of deposit for hire, or for lease of a safe, vault, or box ceases...
• Texas Section 36.223 - Fiduciary Activities
  (a) As soon after beginning the receivership proceeding as is practicable, the receiver shall: (1) terminate all fiduciary positions the bank holds; (2) surrender all...
• Texas Section 36.224 - Disposition And Maintenance Of Records
  (a) On approval by the court, the receiver may dispose of records of the bank in liquidation that are obsolete and unnecessary to the continued...
• Texas Section 36.225 - Records Admitted
  (a) A record of a bank in liquidation obtained by the receiver and held in the course of the receivership proceeding or a certified copy...
• Texas Section 36.226 - Resumption Of Business
  (a) A state bank closed under Section 36.201 may not be reopened without the approval of the banking commissioner unless a contest of liquidation under...

SUBCHAPTER D CLAIMS AGAINST RECEIVERSHIP ESTATE

• Texas Section 36.227 - Assets Discovered After Close Of Receivership
  (a) The banking commissioner shall report to the court discovery of an asset having value that: (1) the banking commissioner discovers after the receivership was...
• Texas Section 36.301 - Filing Claim
  (a) This section applies only to a claim by a person, other than a shareholder acting in that capacity, who has a claim against a...
• Texas Section 36.302 - Proof Of Claim
  (a) A proof of claim must be in writing, be signed by the claimant, and include: (1) a statement of the claim; (2) a description...
• Texas Section 36.303 - Judgment As Proof Of Claim
  (a) A judgment entered against a state bank in liquidation before the date the bank was closed for liquidation may not be given higher priority...
• Texas Section 36.304 - Secured Claim
  (a) The owner of a secured claim against a bank in liquidation may: (1) surrender the security and file a claim as a general creditor;...
• Texas Section 36.305 - Unliquidated Or Undetermined Claim
  (a) A claim based on an unliquidated or undetermined demand shall be filed within the period provided by Subchapter C for the filing of a...
• Texas Section 36.306 - Set-off
  (a) Mutual credits and mutual debts shall be set off and only the balance allowed or paid, except that a set-off may not be allowed...
• Texas Section 36.307 - Action On Claim
  (a) Not later than six months after the last day permitted for the filing of claims or a later date allowed by the court, the...
• Texas Section 36.308 - Objection To Approved Claim
  The receiver with court approval shall set a date for objection to an approved claim. On or before that date a depositor, creditor, other claimant,...
• Texas Section 36.309 - Appeal Of Rejected Claim
  (a) The receiver's rejection of a claim may be appealed in the court in which the receivership proceeding is pending. The appeal must be brought...
• Texas Section 36.310 - Payment Of Claim
  (a) Except as expressly provided otherwise by this subchapter or Subchapter C, without the approval of the court the receiver may not make a payment...
• Texas Section 36.311 - Priority Of Claims Against Insured Bank
  The distribution of assets from the estate of a bank the deposits of which are insured by the Federal Deposit Insurance Corporation or its successor...
• Texas Section 36.312 - Priority Of Claims Against Uninsured Bank
  (a) The priority of distribution of assets from the estate of a bank the deposits of which are not insured by the Federal Deposit Insurance...
• Texas Section 36.313 - Excess Assets
  (a) If bank assets remain after the receiver has provided for unclaimed distributions and all of the liabilities of the bank in liquidation, the receiver...
• Texas Section 36.314 - Unclaimed Property
  After completion of the liquidation, any unclaimed property remaining in the hands of the receiver shall be tendered to the comptroller as provided by Chapter...

Last modified: September 28, 2016