6-395.11. Priority of claims; interest

217 words·~1 min read·/az/title-6/6-395-11

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Claims allowed in a proceeding under this article shall be paid in the following order:

1. Costs and expenses of the administration of the receivership and liquidation.

2. Taxes due to this state.

3. Claims with priority under the laws of this state and under federal law.

4. Claims of creditors that are fully secured including contract claims for interest to the date of payment.

5. Claims of depositors.

6. Claims of general creditors.

7. Claims on obligations that are subordinated to the claims of general creditors.

B. Claims that are approved shall bear interest calculated as provided by law or by judgment from the date that the court grants the deputy director's application for the appointment of a receiver for that bank to the extent that monies are available to pay that interest. If monies are not available to pay interest, the interest shall be prorated. Interest owed shall receive the same priority as the claim on which it accrues, but interest on a claim shall not be paid until all claims within that same class have received payment of the full principal amount of the claim.

C. Any monies remaining after the payment of claims as provided in this section shall be returned to the stockholders of the bank as prescribed by this article.