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Subchapter 001: APPLICABILITY OF CHAPTER; PAYMENTS RESTRAINED TO PRESERVE ASSETS OR PROTECT DEPOSITORS
§ 19101. Applicability to Vermont financial institutions; independent trust companies; state
financial institutions
(a) The provisions of subchapters 1 through 4 of this chapter apply to Vermont financial
institutions. The provisions of subchapters 2, 3, and 4 of this chapter shall also
apply to independent trust companies organized and regulated under chapter 77 of this
title as if they were financial institutions.
(b) The provisions of subchapter 5 of this chapter shall apply to state financial institutions
doing business in this State. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19102. Governor’s proclamation
Whenever it appears to the Governor that the public welfare and the equal protection
of depositors in Vermont financial institutions doing business in this State require
it, he or she may proclaim such bank holidays as in his or her judgment are necessary.
Those holidays, except as otherwise provided in the proclamation, shall not be considered
as business days for the transaction of all banking business, including the demand
or payment of deposits, and shall have the incidents of a legal holiday for the purposes
specified in 9A V.S.A. Article 3. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19103. Business restricted
During holidays and subject to the provisions of the proclamation, the Commissioner,
in addition to all other powers conferred by law, may order any Vermont financial
institution to restrict all or any part of its business, and to limit or postpone
for any length of time the payment of any amount or proportion of the deposits in
savings, commercial, or any other department of the institution, separate and distinct
from the other, as the Commissioner may deem necessary or expedient and may regulate
further payments as to time and amount, as the interest of the public or the financial
institution or the depositors thereof may require. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 305, eff. July 1, 2022.)
§ 19104. Restrictions continued after holidays
After those holidays, the order may be continued in effect as to any particular financial
institution if, in the opinion of the Commissioner, circumstances warrant or require
the continuance and the Governor approves. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19105. Orders as to deposits and debts due financial institution
During those holidays and so long thereafter as the Governor approves, the Commissioner
may issue such orders as to the receipt and payment of deposits by and the creation
and discharge of debts and obligations to or from a Vermont financial institution
under the Commissioner’s supervision as the Commissioner may deem necessary for the
protection and preservation of the public safety and convenience or the equal protection
of those Vermont financial institution’s depositors in view of then existing banking,
business, or other pertinent conditions. Those orders may apply to any Vermont financial
institution as may be necessary for those purposes, and the orders may restrict or
regulate all business or any part of the business of a financial institution affected
thereby, including the time or manner or medium of payment, or limitations on the
amount or percentages of payment of deposits or of debts or obligations, or the investment
or the loaning of money, or the approval and acceptance of security for new loans.
The orders may classify financial institutions or departments thereof or deposits
or assets and liabilities and may vary with the different classes as may be required
for fulfilling the purposes of this section and sections 19102 through 19104 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19106. Withdrawals; rateable share of depositor’s interest
While restrictions are in force on the withdrawal of the deposits in a Vermont mutual
or cooperative financial institution, except those imposed by the financial institution
under the provisions of its internal governance documents, withdrawals shall be counted
as a part of the rateable share of the withdrawing depositor’s interest in the assets
of a mutual or cooperative financial institution to which he or she was entitled at
the time the restrictions were imposed if final liquidation of the financial institution
takes place before all those restrictions are removed. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19107. Publication of orders
Orders under sections 19103 through 19106 of this title may be issued and notice thereof given in such manner as the Commissioner determines
and may be amended, modified, changed, expanded, or revoked in whole or in part whenever
in his or her judgment circumstances warrant or require. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 306, eff. July 1, 2022.)
§ 19108. Appeal; receiver
The propriety and necessity of the orders issued by the Commissioner under sections
19103 through 19107 of this title shall be open to review upon action brought in the usual form by an aggrieved party
within 14 days to the Superior Court of Washington County. No injunction may be issued
without prior notice to the Commissioner, and the court, on motion of the Commissioner,
may appoint a temporary receiver of a financial institution involved in those proceedings. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2017, No. 11, § 7.)
§ 19109. New commercial or savings deposits authorized; withdrawals
The Commissioner, by order, may authorize Vermont financial institutions thereafter
to receive new commercial deposits or new savings deposits, and the new deposits shall
be special deposits and designated as new commercial deposits or new savings deposits,
as the case may be, and shall be segregated from all other deposits. New commercial
deposits shall also be segregated from new savings deposits. They may be invested
only in assets approved by the Commissioner as being sufficiently liquid to be available
when needed to meet any demands on account of those new deposits, which assets shall
not be merged with other assets of the institution, but shall be held in trust for
the security and payment of those new deposits, except that income from those assets,
to the extent authorized by the Commissioner, may be used by the financial institution
for other proper purposes of the institution. The withdrawal of those new deposits
shall not be subject in any respect to restriction or limitation under this section
and sections 19102 through 19108 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19110. Costs and expenses
Costs and expenses incurred by the Commissioner in the exercise of powers given under
sections 19101 through 19109 of this title may be assessed by the Commissioner against the Vermont financial institutions concerned
and, when so assessed, shall be paid by those financial institutions. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
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Subchapter 002: FINANCIAL INSTITUTION CONSERVATORS
§ 19201. Appointment and bonding of conservators
Whenever the Commissioner deems it necessary in order to conserve the assets of a
Vermont financial institution for the benefit of the depositors and other creditors
thereof, the Commissioner may appoint a conservator for the financial institution
and require of the conservator such bond and security as the Commissioner deems proper. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19202. Conservation of assets
Under the direction of the Commissioner, the conservator shall take possession of
the books, records, and assets of every description of the Vermont financial institution
and take such action as may be necessary to conserve the assets thereof pending further
disposition of its business as provided by law. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19203. Powers of conservator
The conservator shall have all the rights, powers, and privileges possessed by receivers
consistent with this subchapter and shall be subject to the obligations and penalties
to which receivers are subject. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19204. Rights of interested parties
During the time the conservator remains in possession of the Vermont financial institution,
the rights of all parties with respect to the institution, subject to the provisions
of law, shall be the same as if a receiver had been appointed therefor. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 307, eff. July 1, 2022.)
§ 19205. Fiduciary powers; appointment of new trustee for trust accounts
The conservator shall have the right to exercise all the fiduciary powers that the
Vermont financial institution had been exercising. However, if all of the beneficiaries,
named in any trust that the financial institution for which the conservator is appointed
was trustee, desire another trustee appointed to administer and manage the trust,
the Probate Division may appoint a new trustee for the trust. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19206. Expenses; salary
All expenses of any such conservatorship shall be paid out of the assets of the financial
institution and shall be a lien thereon that shall be prior to any other lien provided
by law. The conservator shall receive as salary an amount to be fixed by the Governor. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19207. Withdrawals
While the financial institution is in the hands of the conservator appointed by the
Commissioner, the Commissioner may require the conservator to set aside and make available
for withdrawal by depositors and payment to other creditors, on a rateable basis,
such amounts as in the opinion of the Commissioner may safely be used for this purpose.
The conservator may borrow money on the assets of the financial institution to provide
funds for the purposes specified in this section. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 308, eff. July 1, 2022.)
§ 19208. Deposits
(a) In the Commissioner’s discretion, the Commissioner may permit the conservator to receive
deposits, but deposits received while the financial institution is in the hands of
the conservator shall not be subject to any limitation as to payment or withdrawal,
and those deposits shall be segregated and shall not be used to liquidate any indebtedness
of the financial institution existing at the time that a conservator was appointed
to it, or any subsequent indebtedness incurred for the purpose of liquidating any
indebtedness of the financial institution existing at the time the conservator was
appointed.
(b) Deposits so received while the financial institution is in the hands of the conservator
shall be kept on hand in cash, invested in the direct obligations of the United States,
or deposited in financial institutions approved by the Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19209. Termination of conservatorship
If the Commissioner becomes satisfied that it may safely be done and that it would
be in the public interest, in the Commissioner’s discretion, the Commissioner may
terminate the conservatorship and permit the financial institution to resume the transaction
of its business subject to such terms, conditions, restrictions, and limitations as
the Commissioner may prescribe. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19210. Notice to depositors of termination of conservatorship
In case the Commissioner, in the exercise of the Commissioner’s discretion, is satisfied
that it would be in the public interest to terminate the conservatorship either with
or without reorganization, before the conservator shall turn back the affairs of the
Vermont financial institution to its governing body, the Commissioner shall cause
to be published in a newspaper in the city, town, or county in which the financial
institution is located, a notice in form approved by the Commissioner stating the
date on which the affairs of the financial institution will be returned to its governing
body. On the date of the publication of that notice, the conservator shall immediately
send to every person who is a depositor in the financial institution a copy of that
notice by mail, addressed to the last known address of that person as shown by the
records of the financial institution, and the conservator shall send similar notice
in like manner to every person making a deposit in that financial institution under
section 19208 of this title after the date of that newspaper publication and before the time when the affairs
of the financial institution are returned to its governing body. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
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Subchapter 003: RECEIVERSHIP AND DISSOLUTION
§ 19301. Application for receiver; petition to divide losses
If the Commissioner ascertains that a Vermont financial institution is insolvent or
that it is unsafe for it to continue to transact business, the Commissioner shall
apply to the Superior Court of Washington County for the appointment of a receiver
unless, in case of a mutual or cooperative financial institution, the Commissioner
deems it advisable to join with the governing body in a petition to divide the losses
among the depositors as provided in this subchapter. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 309, eff. July 1, 2022.)
§ 19302. Appointment of receiver; notice and hearing
The court shall issue a notice to the treasurer and executive officer of such Vermont
financial institution to appear at a time and place named in the notice and show cause
why a receiver should not be appointed. If sufficient cause is not shown, the court
shall appoint a receiver to take charge of the property and effects of the financial
institution, who shall be subject to the Superior Court. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 310, eff. July 1, 2022.)
§ 19303. Bonding of receiver
The receiver shall give bonds to the State with sufficient surety, in a sum fixed
by the court, for the faithful discharge of his or her duties and for the due accounting
of the monies received by the receiver. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19304. Commissioner as receiver
The Commissioner shall be appointed as such receiver unless the Superior judge is
satisfied that it would be inadvisable for the Commissioner to act in that capacity.
The Commissioner and successors of the Commissioner as receiver shall serve without
compensation other than his or her stated compensation as Commissioner, but the Commissioner
shall be allowed clerical and other expense necessary in the conduct of the receivership.
The court may appoint the Commissioner’s successor in office as receiver. However,
if a change in the receivership, in the judgment of the Superior judge, would be against
the financial interest of those concerned, the court may continue the receiver in
office at such reasonable compensation as the court may determine. If the deposits
of the insolvent financial institution are insured by the Federal Deposit Insurance
Corporation, the Superior judge, in his or her discretion, may appoint as receiver
of the financial institution the Federal Deposit Insurance Corporation to serve without
bonds and without compensation. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19305. Duties and rights of receiver
The receiver shall collect, sue, and receive the debts and demands due and the property
that belong to the Vermont financial institution and shall convert into cash its real
and personal estate and, upon the approval of the Superior judge, may borrow money
and pledge any part or all of the assets of such financial institution as security
for such loan and shall make report to the court of the condition of the trust at
such times as the Superior judge orders. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19306. Federal deposit insurance corporation
If the Federal Deposit Insurance Corporation shall have been appointed receiver of
a closed Vermont financial institution, it may advance, with the consent and approval
of the Superior judge, monies to pay insured deposits or for other proper purposes
and shall have a lien upon all or any part of the assets of such financial institution
as the court may direct for the repayment of such advances, which shall be deemed
to be in the nature of a loan, but provision shall be made in such order to secure
ultimately as large a percentage payment on account of uninsured deposits as would
be finally available for such deposits if such assets were not so pledged. The Federal
Deposit Insurance Corporation, whether or not acting as receiver, may become the purchaser
of any assets of such Vermont financial institution that have been offered for public
bids, under such terms and conditions as the Superior judge may direct, provided that
the purchase be approved by the Superior judge after hearing held on such reasonable
notice by publication or otherwise as the Superior judge may direct. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19307. Subrogation
Whenever any Vermont financial institution shall have been closed, and the Federal
Deposit Insurance Corporation shall pay the insured deposit liabilities of such closed
institution, such corporation, whether or not it shall have become a receiver of such
closed financial institution, shall be subrogated to the extent of such payment to
all rights of the owners of such deposits against such closed financial institution.
The Superior judge shall by order define the manner and extent of such subrogation. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19308. Order
When on hearing and after such reasonable notice as the Superior judge may direct,
any order as to a lien upon assets of a closed Vermont financial institution or of
subrogation to the rights of depositors in the institution made by the judge under
the authority of sections 19304 through 19307 of this title, and provided no objections have been filed within 10 days after the making of the
order, the order shall be binding and effective to the extent necessary to secure
the repayment of monies advanced. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 311, eff. July 1, 2022.)
§ 19309. Limitation on time for proving claims
(a) By order, the Superior judge shall limit the time for creditors of the Vermont financial
institution to present and prove their claims before the receiver.
(b) Within 60 days from the date of such order, the receiver shall cause notice thereof
to be given by publication for three weeks successively in a newspaper printed and
circulated in the county where such Vermont financial institution is located. The
time allowed for creditors to present and prove their claims shall not be less than
six months and may be extended as circumstances require. Claims not presented within
the time limit shall not share in the assets of the Vermont financial institution. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19310. Submission of disallowed claims to Superior judge
Claims presented to the receiver, upon his or her request or upon that of a person
interested in the financial institution, or upon request of a creditor within 20 days
after notice of the disallowance of his or her claim in whole or in part, shall be
submitted to the Superior judge for the purpose of proving the same at such time and
in such manner as the Superior judge orders. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19311. Order to discontinue unauthorized practices
Whenever it appears to the Commissioner from the examination made by him or her, or
from any report made to him or her, that a Vermont financial institution has committed
a violation of its charter or of law, or is conducting its business and affairs in
an unsafe or unauthorized manner, or that it or any of its officers have failed to
comply with all the rules, restrictions, and conditions provided by law, including
the rules and requirements of the Commissioner made in conformity to law, the Commissioner
shall, by a written order delivered to the treasurer of such organization and the
offending officer or officers, direct such organization and such officer or officers
to discontinue such illegal, unsafe, or unauthorized practices or conduct, and to
proceed in strict conformity with the requirements of law. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19312. Failure to comply with Commissioner’s order
If such financial institution or any of its officers refuses or neglects to comply
with such order, the Commissioner may apply to the Superior Court of Washington County
for such an injunction or order against such financial institution and its officers
as the circumstances require. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19313. Authority of court to enforce Commissioner’s order
The court shall issue a notice to the treasurer and president of such financial institution
and to any officer who is alleged in such petition to have failed to proceed in conformity
with the requirements of law to appear at a time and place named in the notice and
show cause why an injunction or proper remedial order should not be issued. If sufficient
cause is not shown, the court shall have power:
(1) to allow such financial institution to continue to transact business in conformity
with the requirements of law subject to such orders, conditions or restrictions as
the evidence in the case and the interests involved shall require; or
(2) if it appears that it is unsafe or inexpedient for such financial institution to continue
to transact business, to appoint a receiver or receivers to take charge of the property
and effects of the financial institution and such receivership shall be subject to
the provisions of this subchapter applicable in case of a receiver appointed on petition
of the Commissioner on ascertainment of a financial institution’s insolvency. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 312, eff. July 1, 2022.)
§ 19314. Accounting and report of receiver
Annually, on or before January 31, and at such other time as may be required by the
Commissioner, so long as the receivership is continued, the receiver of a financial
institution shall make and transmit to the Commissioner a full statement of the affairs
of such institution showing the nature and amount of the assets and liabilities, also
a true account of the expenses incurred and not previously reported, giving the items
thereof. Such report shall be printed with and as a part of the annual report of the
Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19315. Appeal
A person dissatisfied with an order or decree of the Superior judge in any proceeding
arising under this chapter may file an appeal as in other cases. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 313, eff. July 1, 2022.)
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Subchapter 004: REORGANIZATION OR ESTABLISHMENT OF NEW FINANCIAL INSTITUTION
§ 19401. Plan for reopening or establishment of new financial institution
If any Vermont financial institution has been closed by action of the Commissioner
or its governing body and a receiver, either temporary or permanent, appointed or
petitioned for, the depositors thereof, representing not less than 75 percent of the
deposit liability, and with the approval and consent of the Commissioner, may join
in a plan for the reopening or reorganization of the financial institution or the
establishing of a new financial institution, and may select a committee of not more
than 12 depositors to represent them for the purpose of carrying the plan into effect.
However, a depositor who has been notified and does not refuse to give his or her
consent within 15 days of that notification shall be included in reckoning that 75
percent. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19402. Petitioning court for hearing; notice; hearing; approval of plan
(a) Upon receiving the approval of the plan by the Commissioner, the committee or the
Commissioner may petition the Superior Court of Washington County, setting forth the
details of the plan that has been agreed upon and requesting the court to set a day
for hearing thereon. Thereupon the court shall make an order fixing a day for the
hearing of the petition, notice of which shall be given to the depositors and the
holders of equity interests in the financial institution by publication once in each
week for not less than two successive weeks immediately preceding the date of hearing
in some newspaper printed in the county where the financial institution’s principal
place of business is located, or in such other newspaper, having a general circulation
in the county, as the court may direct and by posting a copy of the notice upon the
front door of the financial institution.
(b) The court may adjourn the hearing from time to time and no further notice shall be
required. At the date of hearing, or any adjournment thereof, the court shall take
testimony, and if it appears that it is for the best interests of the depositors that
the plan be approved, the court may make an order approving the same and fixing the
terms and conditions upon which the receivership may be terminated. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19403. Depositor’s objection to plan; receivership continued
If any of the depositors of the Vermont financial institution file written objections
to the approval of the plan and refuse to consent to the plan, the court at the hearing
may direct the receiver to set aside assets of each class of the receivership, in
such amounts and character as the court finds to be just and equitable. Upon such
terms as may be just and equitable, the court shall continue the receivership as to
those assets and those depositors, and direct the receiver to turn over the remainder
of the assets of the financial institution in his or her hands to the new or reorganized
financial institution when directed so to do by the Commissioner, and discharge the
receiver from further liability. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 314, eff. July 1, 2022.)
§ 19404. Deposits of public money
If, in any financial institution referred to in section 19401 of this title, there are deposits of public money belonging to the State or any political subdivision
of the State, the State Treasurer, if the deposit belongs to the State, and the Treasurer
of any political subdivision, by and with the consent of the governing body of the
political subdivision to which any such deposit may belong, may join with other depositors
of the financial institution in a plan for the reopening or reorganizing of the institution
or the establishment of a new financial institution, or the restricting of the withdrawal
of deposits and for that purpose may bind the State or political subdivision, after
being authorized, to limit withdrawals from that deposit over a period of time and
in accordance with the plan as may have been agreed to by the other depositors of
the financial institution joining in the plan. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 315, eff. July 1, 2022.)
§ 19405. Deposits not paid or received; business continued
When a proceeding has been brought under section 19401 of this title, a deposit shall not be paid or received by that financial institution after the
filing of the petition until the final decree of the Superior judge or, unless the
Commissioner, in his or her discretion, and under such orders as the Commissioner
may prescribe and from time to time alter and amend, permits the financial institution
to continue in business pending final decree. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19406. Orders under which financial institution may continue business
Those orders shall provide that deposits received after the petition is filed and
before the final decree shall be kept in cash or invested in such liquid securities
as the Commissioner shall approve and segregated from the prior assets of the financial
institution and shall constitute a fund for the repayment in full of deposits made
after the filing of the petition. Those orders shall further provide that no withdrawal
of prior deposits may be permitted except on such notice and to such specified amounts
and in such specified percentage as the Commissioner determines clearly will not result
in a preference. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19407. Expenses; deposits received after petition filed
The expense of operation between filing of the petition and final decree shall be
apportioned between the original assets and the new assets in such manner as the Superior
judge may deem just. The deposits received between the filing of the petition and
the final decree shall not be reduced by the decree except only to meet those expenses
of operation, if any, or losses incurred with respect to those segregated assets. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 19408. Petition denied; receiver to wind up affairs
If the petition is denied, the Commissioner shall apply for a receiver to wind up
the affairs of the financial institution, as provided in sections 19301 through 19315 of this title. In that case, the deposits, if any, received after petition filed and the resulting
assets shall be administered separately from the other assets and liabilities, and
those assets shall be distributed to the depositors by the receiver as soon as possible
after his or her appointment and without deduction on account of the expense of the
receivership except as provided in section 19407 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 316, eff. July 1, 2022.)