17:9A-269. Possession by the commissioner; causes; purposes; return

315 words·~1 min read·/nj/title-17/chapter-9a/17-9a-269

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

A. The commissioner may forthwith take possession of the property and business of any bank

(1)Which has failed or refused to comply with the provisions of any order lawfully made by the commissioner; or

(2)Which has failed or refused to submit to an examination as provided by section 260; or

(3)Whose officers or directors, or any of them, willfully impede an examination made pursuant to section 260; or

(4)Which is insolvent; or

(5)Which has suspended its business for want of funds to carry it on; or

(6)Which is, in the opinion of the commissioner, in an unsafe or unsound condition to transact business.

B. Notwithstanding the taking by the commissioner of possession of the property and business of a bank,

(1)Title to all the property of the bank, including property held in fiduciary capacities, shall remain in the bank;

(2)The corporate existence of the bank shall continue unless terminated as provided in this article; and

(3)The stockholders and directors of the bank shall be entitled to meet and the stockholders, directors and officers of the bank shall be entitled to act upon any matter which does not infringe upon the powers granted to the commissioner by this article.

C. The commissioner may retain possession of the property and business of the bank for the purpose of

(1)liquidation,

(2)merger or reorganization, to which end he may call stockholders' meetings, or

(3)assumption of all or part of the bank's liabilities and fiduciary relationships and purchase of all or any part of the bank's assets by one or more other banking institutions. When the commissioner concludes that the cause or causes for his taking possession have been removed or remedied, he may return the property and business of the bank to the management and control of its officers and directors.

L.1948, c. 67,s.269; amended 1976, c.6,s.2.