excess of $20,000 per depositors)1 and other creditors, pay the expenses of administration, distribute the proceeds of such liquidation, and otherwise wind up the affairs of the bank subject to the control of the Board of Directors of the Corporation and under the supervision of the Chief of the Division of Liquidation. After notice by advertisement pursuant to law, depositors having claims in excess of $20,000 per depositor, and other creditors, are permitted to file claims with the liquidator, who transmits such claims to the Division of Liquidation for allowance, classification, and deduction by way of set-offs or counterclaims. Such claims are filed on blanks prescribed from time to time by the Corporation and when allowed are evidenced by receiver's certificates issued by the Division of Liquidation on such forms as are from time to time prescribed by the Corporation. The liquidator receives collections of debts and claims due to the receivership, effects sales of assets, compositions and compromises of debts, and otherwise enforces claims and obligations, owing to the receivership. All proceeds of the liquidation are segregated and are kept separate and apart from the general and other funds of the Corporation. Proposals for the sale of assets, compositions, and compromises are transmitted by the liquidator to the Division of Liquidation, which in turn submits them to the Committee on Liquidations, Loans, and Purchases of Assets and to the Board of Directors of the Corporation for approval; and upon such approval the liquidator, through local counsel, presents the proposals to a court of competent jurisdiction for authorization as provided by 12 U.S.C. 192. Expenses of administration are similarly submitted by the Division of Liquidation for approval by the Board of Directors. Attorney fees are submitted by the Legal Division to the Special Committee for recommendation to and determination by the Board of Directors. Proposals for leasing, engaging brokers or others, independent contractors, extensions or renewals of debts due the receivership, or other contracts, and advances to protect assets, are submitted by 1 Claims for insured deposits up to $20,000 for each depositor are filed with a Claim Agent, appointed by the Board of Directors of the Corporation, who represents the Corporation in its capacity as insurer of deposit (see Part 305 of this subchapter). the liquidator for transmission and recommendation by the Division of Liquidation to the Committee on Liquidations, Loans, and Purchases of Assets and to the Board of Directors for authorization. When sufficient funds have been realized from the liquidation to justify payment of a dividend to creditors, the Division of Liquidation submits a recommendation to the Board of Directors, which orders a ratable dividend to be paid. Dividend checks are drawn by the Division of Liquidation on receivership funds and transmitted to the liquidator for delivery to the claimants who are required to present their receiver's certificates for endorsement thereon and to execute receipts for such dividends. If such claims are paid in full with interest, receivership certificates must be surrendered. If surplus assets remain after payment of dividends to creditors equal to the principal of their respective claims plus interest thereon, a meeting of the shareholders is called pursuant to the provisions of 12 U.S.C. 197, for the purpose of determining whether a shareholders' agent shall be elected or the receivership continued. If the shareholders elect to have a shareholders' agent appointed, then the assets are assigned and delivered to the shareholders' agent upon compliance with the requirements of 12 U.S.C. 197. [15 F.R. 8632, Dec. 6, 1950, as amended at 19 F.R. 1666, Mar. 27, 1954; 35 F.R. 460, Jan. 14, 1970] § 306.3 State bank receiverships. 2 When the Corporation accepts appointment as receiver of an insured State bank the board of directors appoints an agent or liquidator to take possession, on behalf of the Corporation, of the assets, books, and records, and to administer the affairs, of the closed bank. The liquidator as the local representative of the Corporation proceeds, in accordance with the provisions of the applicable law of the State in which the bank is located, and in conformity with the manual of instructions of the Division of Liquidation, to administer the receivership, subject to the control of the board of directors and under the supervision of the Division of Liquidation. [15 F.R. 8633, Dec. 6, 1950, as amended at 19 F.R. 1666, Mar. 27, 1954] 2 Pursuant to the provisions of section 11(e) of the Federal Deposit Insurance Act. § 307.1 Steps to be taken and records to be furnished the Corporation by an insured nonmember bank in liquidation. (a) Whenever a nonmember bank goes into liquidation and its insured status has not been terminated by the board 1 and its deposit liabilities are not assumed by another insured bank, it shall terminate its status as an insured bank in accordance with the provisions of section 8(a) of the Federal Deposit Insurance Act.2 To effect such termination the bank shall adopt a resolution in form substantially as follows: Resolved: (1) That the status of the 1 Board means board of directors of the Federal Deposit Insurance Corporation. 2 Section 8(a) of the Federal Deposit Insurance Act provides, in part, as follows: "Any insured bank (except a national member bank or State member bank) may, upon not less than ninety days' written notice to the Corporation, terminate its status as an insured bank. * ** After the termination of the insured status of any bank * * the insured deposits of each depositor in the bank on the date of such termination, less all subsequent withdrawals from any deposits of such depositor, shall continue for a period of two years to be insured, and the bank shall continue to pay to the Corporation assessments as in the case of an insured bank during such period * *" [Italics supplied.] 3 If the bank desires to fix a later date of termination, it may do so as the law prescribes only the minimum notice period which is ninety (90 days. hereby directed to immediately forward a certified copy of this resolution to the Federal Deposit Insurance Corporation, Washington D.C., 20429, which shall constitute the notice of termination prescribed in section 8(a) of that Act Upon receipt of a certified copy of the aforesaid resolution the Corporation will promptly advise the bank of the date of the receipt thereof, and confirm the date of the termination of its insured status. Thereupon, and prior to the termination date, the bank shall give notice to its depositors of the termination of its insured status. Such notice shall be (1) mailed to each depositor at his last address of record as shown upon the books of the bank, (2) published in not less than two issues of a local newspaper of general circulation, and (3) in form substantially as follows: (Date) Notice to Depositors: Please be advised that the status of the (Name of bank) (City or town) (State) as an insured bank under the provisions of the Federal Deposit Insurance Act, will terminate on ---- day of 19____. You are further advised that your insured deposits in this bank on the date of termination will continue to be insured within the limitations provided by law. (Name of bank) (Address) There may be included in such notice any additional information or advice the bank may deem desirable. Whenever the bank proposes to pay its depositors and, at the direction of the depositors, effects such payment by transferring the deposits to a noninsured bank, the following information shall be added to the notice to depositors prescribed in the above form: You are further advised that your deposits may be transferred to the (Name of noninsured bank) (City or town) (State) upon your direction to this bank and your acknowledgement in writing of the payment of your deposits in full by such transfer. (Name of noninsured bank) is not a member of the Federal Deposit Insurance Corporation and deposits made in it, or transferred to it, will not be insured. (b) The bank shall furnish to the Corporation the following records and information: (1) An affidavit of the mailing and an affidavit of the publication of the notice to depositors. The affidavit of mailing should be executed by the person mailing the notice and should state (i) the date of mailing, (ii) that it was mailed to each depositor at his last address of record as shown on the books of the bank, and (iii) that a copy of the notice as mailed is attached. (2) A certified copy of the resolutions pursuant to which the bank was placed in liquidation and/or any other document or instrument required by law to place the bank in liquidation. (3) The bank shall continue to file certified statements and pay assessments thereon for the period its deposits are insured, as provided by the Federal Deposit Insurance Act: 4 Provided, That after the bank shall have paid in full its deposits liabilities and the assessment to the Corporation required to be paid for the semiannual period in which its deposit liabilities are paid in full, and after it shall, under applicable law, have ceased to have authority to transact a banking business and to have existence, except for the purpose of, and to the extent permitted by law for, winding up its affairs, it shall not be required to file further certified statements nor to pay further assessments. (4) When the deposit liabilities of the bank shall have been paid in full, the bank shall furnish to the Corporation an affidavit executed by two of its officers, which affidavit shall state the fact that the deposit liabilities have been paid in full and give the date of the final payment thereof.5 (5) Where the bank has unclaimed deposits the affidavit to be furnished pursuant to subparagraph (4) of this 4 See footnote 2 to § 307.1(a). 5 The issuance of a draft or officer's check does not constitute the discharge of a deposit liability nor relieve the bank of assessment until such draft or other evidence of payment has been duly presented for payment and has been paid. paragraph, shall further state the amount of such unclaimed deposits and the disposition made of the funds to be held to meet such claims. For assessment purposes, the following will be considered as payment of such unclaimed deposits, viz: (i) The transfer of cash funds in an amount sufficient to pay such unclaimed and unpaid deposits to the public official authorized under the law to receive the same; or (ii) If no provision is made by law for the transfer of funds to a public official, the transfer of cash funds or compensatory assets to an insured bank in an amount sufficient to pay the unclaimed and unpaid deposits in consideration of such insured bank assuming the payment thereof: Provided, That, prior to such transfer, the liquidating bank shall have given notice, as provided in this subparagraph, to the owners of the unclaimed deposits of the intended transfer and a reasonable time shall have elapsed after the giving of such notice to enable the depositors to obtain their deposits. Such notice shall be mailed to each depositor and shall be published in a local newspaper of general circulation. The notice shall advise such depositors of the liquidation of the bank, shall request them to call for and accept payment of their deposits, and shall state the disposition to be made of their deposits upon their failure to promptly claim the same. If such unclaimed and unpaid deposits are disposed of as provided in subdivision (1) of this subparagraph, a certified copy of the public official's receipt issued for such funds shall be furnished to the Corporation. If such unclaimed and unpaid deposits are disposed of as provided in subdivision (ii) of this subparagraph, an affidavit of the publication and of the mailing of the notice to depositors, together with a copy of such notice, and a certified copy of the contract of assumption shall be furnished to the Corporation. (6) The liquidating bank shall advise the Corporation of the date on which the authority or right of the bank to do a banking business shall have terminated and the method or means whereby such termination shall have been effected that is, whether such termination has been effected by the surrender of its charter, by the cancellation of its authority or license to do a banking busi ness by the supervisory authority, or -otherwise." [15 F.R. 8633, Dec. 6, 1950, as amended at 32 F.R. 10561, July 19, 1967] § 307.2 Steps to be taken and records to be furnished the Corporation by a member bank in liquidation (both State and national). (a) Whenever a bank which is a member of the Federal Reserve System goes into liquidation and its insured status has not been terminated by the board' and its deposit liabilities are not assumed by another insured bank, it shall notify its depositors of the date of the termination of its insured status. Such notice shall be in the form prescribed in § 307.1 and shall be given at the time and in the manner therein provided. (b) The bank shall furnish to the Corporation the records and information mentioned in, and comply with the requirements of § 307.1(b). [15 F.R. 8634, Dec. 6, 1950, as amended at 19 F.R. 1666, Mar. 27, 1954; 32 F.R. 10561, July 19, 1967] As the governing law of the various jurisdictions is not uniform in this respect, it is suggested that the applicable statute be consulted and that this Corporation be advised of the manner in which the termination or cancellation of such authority has been effected.' See footnote 1 to § 307.1(a). 8 Section 8(0) of the Federal Deposit Insurance Act provides in part as follows: "Except as provided in subsection (b) of section 4, whenever a member bank shall cease to be a member of the Federal Reserve System, its status as an insured bank shall, without notice or other action by the board of directors, terminate on the date the bank shall cease to be a member of the Federal Reserve System, with like effect as if its insured status had been terminated on said date by the board of directors after proceedings under subsection (a) of this section." Regulations of the Board of Governors of the Federal Reserve System provide (12 CFR 208.10 footnote 12): "A bank's withdrawal from membership in the Federal Reserve System is effective on the date on which the Federal Reserve bank stock held by it is duly cancelled." Section 4(b) of the Federal Deposit Insurance Act provides in part that: "A State bank, resulting from the conversion of an insured national bank, shall continue as an insured bank. A State bank, resulting from the merger or consolidation of insured banks, or from the merger or consolidation of a noninsured bank or institution with an insured State bank, shall continue as an insured bank.” § 307.3 Steps to be taken and records to be furnished the Corporation where deposits are assumed by another insured bank." (a) Whenever the deposit liabilities of an insured bank are assumed by another insured bank, the bank whose deposits are assumed, or the assuming bank as its agent, shall give notice to its depositors of such assumption. Such notice shall be (1) mailed to each depositor at his last address of record as shown upon the books of the bank, (2) published in not less than two issues of a local newspaper of general circulation, and (3) in form substantially as follows: • Section 8(q) of the Federal Deposit Insurance Act provides as follows: "Whenever the liabilities of an insured bank for deposits shall have been assumed by another insured bank or banks, the insured status of the bank whose liabilities are so assumed shall terminate on the date of receipt by the Corporation of satisfactory evidence of such assumption with like effect as if its insured status had been terminated on said date by the Board of Directors after proceedings under subsection (a) of this section: Provided, That if the bank whose liabilities are so assumed gives to its depositors notice of such assumption within thirty days after such assumption takes effect, by publication or by any reasonable means, in accordance with regulations to be prescribed by the Board of Directors, the insurance of its deposits shall terminate at the end of six months from the date such assumption takes effect. Such bank shall be subject to the duties and obligations of an insured bank for the period its deposits are insured: Provided, That if the deposits are assumed by a newly insured bank, the bank whose deposits are assumed shall not be required to pay any assessment upon the deposits which have been so assumed after the semiannual period in which the assumption takes effect." There may be included in such notice any additional information or advice the bank may deem desirable. The bank shall furnish to the Corporation an affidavit of mailing and an affidavit of publication of the notice to depositors. The affidavit of mailing should be in the form prescribed in § 307.1(b) (1). (b) The liquidating bank shall continue to file certified statements and pay assessments thereon for the period its deposits are insured, as provided by the Federal Deposit Insurance Act: Provided, That if the liquidating bank or, the assuming bank as its agent, has given the requisite notice to the depositors of the assumption of the deposit liabilities within 30 days after such assumption takes effect, then the liquidating bank shall file a final certified statement, as provided for in § 304.3 (s) and (t), and shall pay to the Corporation the normal assessment thereon." If the deposits of the liquidating bank are assumed by a newly insured bank, the liquidating bank is not required to file certified statements or pay any assessment upon the deposits so assumed, after the semiannual period in which the assumption takes effect. (c) It is the policy of the Corporation to consider receipt of the following as satisfactory evidence of such assumption: (1) A certified copy of the resolution (i) duly authorizing the bank's officers to enter into a contract for the sale of the bank's assets to another insured bank upon the consideration of the assumption by it of the deposit liabilities, and (ii) duly placing the bank in liquidation; and (2) A certified copy of the assumption agreement, provided it contains an express undertaking by an insured bank to pay the deposit liabilities of the bank going into liquidation. 308.30 Grounds for cease-and-desist orders. Notice of charges and hearing. 308.31 Issuance of order. 308.32 Effective date. 308.33 Temporary cease-and-desist orders. 308.34 Effective date of temporary order. |