CO Code § 11-103-805 (2021)
2021 Colorado Code|Title 11 - Financial Institutions|Article 103 - Organization and Corporate Functions|Part 8 - Liquidation, Dissolution, and Reorganization|§ 11-103-805. Federal Deposit Insurance Corporation or Successor as Liquidator

  The federal deposit insurance corporation, created by section 12B of the “Federal Reserve Act”, as amended, or its successor is authorized to act without bond as liquidator of any banking institution, the deposits in which are to any extent insured by said corporation or its successor pursuant to section 11-103-802.    Pursuant to section 11-103-802, the commissioner, upon order of the banking board, shall tender to said corporation or its successor the appointment as liquidator of such banking institution.    After being notified in writing of the acceptance of such an appointment, the commissioner shall file in the office of the clerk and recorder in the county in which the bank is situated a certificate evidencing the appointment of the federal deposit insurance corporation or its successor. Upon such an appointment, the possession of all the assets, business, and property of such bank of every kind and nature, wheresoever situated, shall be deemed transferred from such bank and the banking board to the federal deposit insurance corporation or its successor. Without the execution of any instruments of conveyance, assignment, transfer, or endorsement, the title to all such assets and property shall be vested in the federal deposit insurance corporation or its successor, and the banking board and the commissioner shall be forever thereafter relieved from all responsibility and liability in respect to the liquidation of such bank; except that the banking board may retain jurisdiction over and responsibility for liquidation of eligible collateral pledged pursuant to the “Public Deposit Protection Act”, article 10.5 of this title, to secure public deposits not insured by the federal deposit insurance corporation or its successor.    If the corporation or its successor accepts said appointment, it has all the powers and privileges provided by the laws of this state with respect to the liquidation of a banking institution, its depositors, and other creditors.      When a state bank is liquidated, after payment of federal deposit insurance, claims for payment shall have the following priority:   Obligations incurred by the banking board, fees and assessments due to the division of banking, and expenses of liquidation, all of which may be covered by a proper reserve of funds;    Claims of depositors having an approved claim against the general liquidating account of the bank;    Claims of general creditors having an approved claim against the general liquidating account of the bank;    Claims otherwise proper that were not filed within the time prescribed by this code;    Approved claims of subordinate creditors; and    Claims of stockholders of the bank.       When a state bank is liquidated, after payment of federal deposit insurance, claims of official custodians of public funds for payment of uninsured public funds pursuant to the “Public Deposit Protection Act”, article 10.5 of this title, shall be governed by the provisions of this subsection (5). In the event that the state bank holds collateral that is pledged for the safekeeping and protection of uninsured public funds on deposit pursuant to article 10.5 of this title, such collateral shall be considered to be held in trust on behalf of the official custodian, and the liquidator shall not use such collateral to pay any claim or liability other than that of the official custodian until all claims for uninsured public funds have been paid. In the event that such collateral is insufficient to pay all claims made by official custodians, the payment of such claims shall be made according to a pro rata formula. Claims by official custodians for payment of uninsured deposits not collateralized pursuant to article 10.5 of this title shall have the same priority as that assigned to depositors under subparagraph (II) of paragraph (a) of this subsection (5).         History. Source: L. 2003: Entire article added with relocations, p. 1106, § 3, effective July 1.    Editor's note:   This section is similar to former § 11-5-105 as it existed prior to 2003.   Cross references:   For the “Federal Reserve Act”, see 12 U.S.C. § 221 et seq.   ANNOTATION   Annotator's note. Since § 11-103-805 is similar to § 11-5-105 as it existed prior to the 2003 recodification of the “Colorado Banking Code”, articles 101 to 109 of title 11, a relevant case construing that provision has been included in the annotations to this section.   Regulatory exclusion contained in directors' and officers' liability insurance policy is contrary to the public policy expressed in state banking law and undermines the authority and responsibility that such law vests in the FDIC as liquidator of a state-chartered insolvent bank for protecting the interests of the bank's depositors, creditors, and stockholders by making equitable payment to them out of the bank's assets as compensation for losses caused by the negligence and breach of fiduciary duty of the bank's former directors. FDIC v. Am. Cas. Co., 841 P.2d 1285 (Colo. 1992).