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Can you summarize NHRS Chapter 395?
BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS (Chapters 383 - 397-B) > LIQUIDATION UNDER SUPERVISION OF THE BANK COMMISSIONER
Short Summary
This legal document pertains to the liquidation of institutions under the supervision of the Bank Commissioner in New Hampshire. When an institution reflects negative equity capital based on the most recent examination report conducted by the banking department or a federal deposit insuring agency, the commissioner may file a petition to a justice of the superior court. The justice may then direct the commissioner to take possession of the property and business of the institution until it resumes business or is finally liquidated. Upon completion of the liquidation, the charter of the institution will be vacated. The commissioner is authorized to collect money due to the institution, sell bad or doubtful debts, and sell real and personal property of the institution. The commissioner is also required to make an inventory of the institution’s assets and give notice to all parties holding or having possession of any assets of the institution. No liens or charges can be made against the assets of the institution once the commissioner has taken possession. The commissioner is empowered to prosecute and defend legal proceedings in the name of the institution and may appoint agents and procure expert assistance. The commissioner is not entitled to receive any extra compensation for their services. The compensation of agents, counsel, employees, and assistants, as well as all expenses of supervision and liquidation, shall be fixed by the commissioner and paid out of the funds of the institution. The commissioner is required to publish a notice calling on all persons who may have claims against the institution to present them, and claims presented after the specified time shall only be entitled to share in the distribution to the extent of the assets available. The commissioner is also required to make and file lists of claims presented and provide opportunities for objections to be made. The court may dismiss proceedings upon application by the institution or reduce deposit accounts if the value of the institution’s assets is less than the total amount of its deposits. The document also outlines the priority of payments to be made from the proceeds of the institution’s property in the event of liquidation. The commissioner is required to incorporate a statement on the condition of the institution in their annual report, and records and papers related to the liquidation may be destroyed after 10 years.
Whom does it apply to?
Institutions under the supervision of the Bank Commissioner in New Hampshire
What does it govern?
Liquidation of institutions under the supervision of the Bank Commissioner in New Hampshire
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire