Alabama § 5-8A-40 Preferred Claims

Alabama Statutes

§ 5-8A-40 — Preferred Claims

Alabama § 5-8A-40

Title 5Banks and Financial Institutions

Ch. 8ALiquidation of Banks

Art. 2Insolvent Banks

This text of Alabama § 5-8A-40 (Preferred Claims) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 5-8A-40 (2026).

Text

In addition to any other laws of this state or of the United States granting priority, any draft or cashier’s check issued and drawn against actual existing value by any bank prior to its failure or closing and given in payment of clearings and any money paid in the usual course of business to any bank in payment of a draft for the bona fide transfer of funds shall be a preferred claim against the assets of the bank, irrespective of whether the fund representing such item or items can be traced and identified as part of such assets or has been intermingled with or converted into other assets of such failed bank.

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In addition to any other laws of this state or of the United States granting priority, any draft or cashier’s check issued and drawn against actual existing value by any bank prior to its failure or closing and given in payment of clearings and any money paid in the usual course of business to any bank in payment of a draft for the bona fide transfer of funds shall be a preferred claim against the assets of the bank, irrespective of whether the fund representing such item or items can be traced and identified as part of such assets or has been intermingled with or converted into other assets of such failed bank.