§ 28-1-3.1-5 — Receiver; appointment; vesting of title to all assets and right to terminate affairs of institution; liens or claims against property

Indiana § 28-1-3.1-5

• Jurisdiction: Indiana
• Art. 1: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 3.1: Liquidation of Financial Institutions

Text

(a) The department may appoint the receiver
of the closed financial institution. Unless the receiver is the Federal
Deposit Insurance Corporation, the department, upon acceptance of the
appointment of a receiver, shall make immediate application to the
receivership court for confirmation of the receiver. The receivership
court shall approve the department's application if it finds that to do so
would be in the public interest. The application may be acted on by the
receivership court without any notice except that provided in section 4
of this chapter. The receiver shall give a bond the director considers
appropriate. However, a federal deposit insurance agency shall not be
required to post any bond. If the receiver is not a federal deposit
insurance agency, the director may agree to reasonable compensation
for the receiver.
(b) Upon appointment as receiver, title to all assets of the financial
institution vest in the receiver without the execution of any instruments
of conveyance, assignment, transfer, or endorsement. If no other
receiver is appointed as provided in this chapter, the department shall
act as receiver and has all of the powers and duties of a receiver as
provided in this chapter.
(c) Except as otherwise provided, the sole and exclusive right to
liquidate and terminate the affairs of any financial institution is vested
in the receiver appointed under this section, and except as otherwise
provided by law, no other receiver, assignee, trustee, or liquidating
agent shall be appointed by any court or any other person.
(d) After the department has taken possession of the business and
property for any financial institution, no suit, action, or other
proceeding at law or in equity shall be commenced or prosecuted
against the financial institution upon any debt, obligation, claim, or
demand.
(e) No person, firm, limited liability company, corporation, or other
entity holding any of the property or credits of the financial institution
shall have any lien or charge against the property or credits for any
payment, advance, or clearance made after the department has taken
possession. A lien shall not attach to any of the assets or property of the
financial institution by reason of the entry of any judgment recovered
against the institution after the department has taken possession of its
business and property and while the possession continues.
(f) A receiver appointed to liquidate a corporate fiduciary must have
sufficient experience in fiduciary matters.

Legislative History

As added by P.L.141-1984, SEC.2. Amended by P.L.8-1993, SEC.438; P.L.262-1995, SEC.6; P.L.35-2010, SEC.100.