N.Y. BNK Law § 618 — New York Code / Act BNK / Article 13 / Section 618
Liquidation and conservation of assets; compromising debts and claims; deposit of moneys collected; preference; superintendent, as liquid...
Status: in_force

§ 618. Liquidation and conservation of assets; compromising debts and\nclaims; deposit of moneys collected; preference; superintendent, as\nliquidator, authorized to borrow on and pledge assets of banks.  1. (a)\nThe superintendent is authorized, upon taking possession of any banking\norganization, to liquidate the affairs thereof and to do all acts and to\nmake such expenditures as in his or her judgment are necessary to\nconserve its assets and business. The superintendent shall proceed to\ncollect the debts due. The superintendent may, upon an order of the\nsupreme court (unless such order is not required pursuant to the\nprovisions of paragraph (b), (c) or (d) of this subdivision), (i) sell,\nassign, compromise, or otherwise dispose of all bad or doubtful debts\nheld by such banking organization, (ii) compromise claims against such\nbanking organization, other than deposit claims, and (iii) sell or\notherwise dispose of all or any of the real and personal property of\nsuch banking organization wherever situated. In case any of the real\nproperty so sold is located in a county in this state other than a\ncounty in which the application to the court for leave to sell is made,\nthe superintendent shall cause a certified copy of such order to be\nfiled in the office of the clerk of the county in which such real\nproperty is located.\n  (b) The superintendent may sell, assign, compromise or otherwise\ndispose of any bad or doubtful debt held by such banking organization\nthe value of which does not exceed fifty thousand dollars upon such\nterms as he or she may deem for the best interests of such banking\norganization without obtaining the approval of the court. For purposes\nof this paragraph, the value of any such bad or doubtful debt shall be\nthe current value thereof as determined by the superintendent in good\nfaith.\n  (c) The superintendent may, when the amount proposed to be paid by the\nsuperintendent in compromise does not exceed fifty thousand dollars,\ncompromise any claim against such banking organization, other than any\ndeposit claim, upon such terms as he or she may deem for the best\ninterests of such banking organization without obtaining the approval of\nthe court.\n  (d) The superintendent may sell or otherwise dispose of any personal\nproperty of such banking organization (other than bad or doubtful debts\nsubject to the provisions of paragraph (b) of this subdivision) the\nvalue of which does not exceed fifty thousand dollars upon such terms as\nhe or she may deem for the best interests of such banking organization\nwithout obtaining the approval of the court. For purposes of this\nparagraph, the value of any such personal property of such banking\norganization shall be (i) in the case of any single class of a security,\nor any commodity, or other property or claim that has a readily\nascertainable market value, such market value, and (ii) in any other\ncase, the current value thereof as determined by the superintendent in\ngood faith.\n  2. The moneys collected by the superintendent shall be: (a) Deposited\non demand, time or otherwise in one or more banks, savings banks or\ntrust companies and, in case of the insolvency or voluntary or\ninvoluntary liquidation of the depositary, such deposits shall be\nentitled to priority of payment on an equality with any other priority\ngiven by this chapter;\n  (b) Deposited on demand, time or otherwise in one or more national\nbanks with its principal office located in this state and with total\nassets exceeding five billion dollars; or\n  (c) Invested in obligations of the United States, or those for which\nthe full faith and credit of the United States is pledged to provide for\nthe payment of interest and principal.\n  3. Upon an order of the supreme court in and for the county in which\nthe principal office of such banking organization is located, the\nsuperintendent is authorized to borrow money and to execute, acknowledge\nand deliver notes or other evidences of indebtedness therefor and to\nsecure the repayment thereof by the mortgage, pledge, assignment in\ntrust or hypothecation of any or all of the property whether real,\npersonal or mixed of such banking organization. Money may be so borrowed\nfor any one or more of the following purposes:\n  (a) Facilitating liquidation;\n  (b) Protecting or preserving the assets in his possession;\n  (c) Declaring and paying dividends to depositors and other creditors;\n  (d) Providing for the expenses of administration and liquidation;\n  (e) Aiding in the reopening or reorganization of such banking\norganization;\n  (f) Aiding in the merger or consolidation of any one or more of such\nbanking organizations which are corporations;\n  (g) Aiding in the sale of all of the assets of any such banking\norganization.\n  The superintendent with the aforesaid order of the supreme court shall\nhave power to take any and all other action necessary and proper to\nconsummate any such loans and to provide for the repayment thereof.\n  The superintendent shall be under no obligation personally or in his\nofficial capacity to repay any loan made pursuant to this subdivision.\nThe obligation for the repayment of any such loan shall be solely the\nobligation of the banking organization receiving the benefit of such\nloan.\n