NY Banking L § 618 (2021)
2021 New York Laws BNK - Banking Article 13 - Merger; Voluntary Dissolution; Superintendent's Taking Possession; Reorganization; Liquidation 618 - Liquidation and Conservation of Assets; Compromising Debts and Claims; Deposit of Moneys Collected; Preference; Superintendent, as Liquidator, Authori

§ 618.  Liquidation and conservation of assets; compromising debts and claims; deposit of  moneys  collected;  preference;  superintendent,  as liquidator,  authorized to borrow on and pledge assets of banks.  1. (a) The superintendent is authorized, upon taking possession of any  banking organization, to liquidate the affairs thereof and to do all acts and to make  such  expenditures  as  in  his  or  her judgment are necessary to conserve its assets and business. The superintendent  shall  proceed  to collect  the  debts  due.  The  superintendent may, upon an order of the supreme court (unless  such  order  is  not  required  pursuant  to  the provisions  of paragraph (b), (c) or (d) of this subdivision), (i) sell, assign, compromise, or otherwise dispose of all bad  or  doubtful  debts held  by  such banking organization, (ii) compromise claims against such banking organization, other than  deposit  claims,  and  (iii)  sell  or otherwise  dispose  of  all  or any of the real and personal property of such banking organization wherever situated. In case  any  of  the  real property  so  sold  is  located  in  a county in this state other than a county in which the application to the court for leave to sell is  made, the  superintendent  shall  cause  a  certified copy of such order to be filed in the office of the clerk  of  the  county  in  which  such  real property is located.  (b)  The  superintendent  may  sell,  assign,  compromise or otherwise dispose of any bad or doubtful debt held by  such  banking  organization the  value  of  which  does  not exceed fifty thousand dollars upon such terms as he or she may deem for  the  best  interests  of  such  banking organization  without  obtaining the approval of the court. For purposes of this paragraph, the value of any such bad or doubtful debt  shall  be the  current  value  thereof as determined by the superintendent in good faith.  (c) The superintendent may, when the amount proposed to be paid by the superintendent in compromise does not  exceed  fifty  thousand  dollars, compromise  any  claim against such banking organization, other than any deposit claim, upon such terms as he  or  she  may  deem  for  the  best interests of such banking organization without obtaining the approval of the court.  (d)  The  superintendent may sell or otherwise dispose of any personal property of such banking organization (other than bad or doubtful  debts subject  to  the  provisions  of  paragraph (b) of this subdivision) the value of which does not exceed fifty thousand dollars upon such terms as he or she may deem for the best interests of such  banking  organization without  obtaining  the  approval  of  the  court.  For purposes of this paragraph, the value of any  such  personal  property  of  such  banking organization shall be (i) in the case of any single class of a security, or  any  commodity,  or  other  property  or  claim  that  has a readily ascertainable market value, such market value, and  (ii)  in  any  other case,  the  current value thereof as determined by the superintendent in good faith.   2. The moneys collected by the superintendent shall be: (a)  Deposited on  demand,  time  or  otherwise  in one or more banks, savings banks or trust  companies  and,  in  case  of  the  insolvency  or  voluntary  or involuntary  liquidation  of  the  depositary,  such  deposits  shall be entitled to priority of payment on an equality with any  other  priority given by this chapter;  (b)  Deposited  on  demand,  time or otherwise in one or more national banks with its principal office located in this  state  and  with  total assets exceeding five billion dollars; or  (c)  Invested  in obligations of the United States, or those for which the full faith and credit of the United States is pledged to provide for the payment of interest and principal.    3. Upon an order of the supreme court in and for the county  in  which the  principal  office  of  such  banking  organization  is located, the superintendent is authorized to borrow money and to execute, acknowledge and deliver notes or other evidences of  indebtedness  therefor  and  to secure  the  repayment  thereof  by  the mortgage, pledge, assignment in trust or hypothecation of any or  all  of  the  property  whether  real, personal or mixed of such banking organization. Money may be so borrowed for any one or more of the following purposes:  (a) Facilitating liquidation;  (b) Protecting or preserving the assets in his possession;  (c) Declaring and paying dividends to depositors and other creditors;  (d) Providing for the expenses of administration and liquidation;  (e)  Aiding  in  the  reopening  or  reorganization  of  such  banking organization;  (f) Aiding in the merger or consolidation of any one or more  of  such banking organizations which are corporations;  (g)  Aiding  in  the  sale  of  all  of the assets of any such banking organization.   The superintendent with the aforesaid order of the supreme court shall have power to take any and all other  action  necessary  and  proper  to consummate any such loans and to provide for the repayment thereof.   The  superintendent  shall be under no obligation personally or in his official capacity to repay any loan made pursuant to  this  subdivision. The  obligation  for  the repayment of any such loan shall be solely the obligation of the banking organization receiving  the  benefit  of  such loan.