§ 9-B §363-A — Conservation of assets

Maine § 9-B §363-A

• Jurisdiction: Maine
• Title 9-B: FINANCIAL INSTITUTIONS
• Part 3: ORGANIZATION AND STRUCTURE OF FINANCIAL INSTITUTIONS
• Ch. 36: CONSERVATION, LIQUIDATION AND INSOLVENCY

Text

1.
Appointment of conservator.
Whenever, in the judgment of the superintendent, because of unsafe or unsound practice in conducting the business of a financial institution or other potentially hazardous condition, it is necessary to conserve or revalue the assets of the financial institution or to reorganize and put into sound condition the financial institution for the benefit of depositors, beneficiaries of fiduciary accounts, creditors or the public, the superintendent may issue an order describing the unsafe, unsound or other hazardous condition and appointing one or more conservators for the financial institution, who shall endeavor promptly to remedy the condition or conditions stated in the order.
2.
Segregation of assets.
A conservator appointed under subsection 1 may order that there be segregated and set aside investments that in the conservator's judgment are of slow or doubtful value or that, on account of unusual conditions, cannot be converted into cash at their full fair value.
3.
Deposit reductions.
Simultaneously with the reductions taken pursuant to subsection 2, the following actions must be taken by the financial institution.
4.
Sale of segregated investments.
Investments segregated under subsection 2 may be sold or exchanged for other securities or investments by a vote of the members of the governing body of the financial institution but must be sold when so ordered by the conservator or the superintendent. All money received from the sales of or as income from the securities or investments must be entered into a special account and held by the financial institution for the benefit of the depositors or members whose deposits were reduced under subsection 3, to be disposed of as provided in subsection 5.
5.
Repayment of reductions.
The members of the governing body of a financial institution from time to time may, and when directed by the superintendent shall, declare pro rata dividends of money received as provided in subsection 4 to be distributed among the depositors or members whose deposits were reduced under subsection 3, payable to those who would then have been entitled to receive the sums deducted if the sums had continued to be included in the reduced deposits, and payable as other dividends are paid.
6.
Conservator continuing business.
The conservator may continue to operate the financial institution in accordance with the following conditions and limitations.
7.
Replacement conservator.
The superintendent may, without notice or hearing, replace a conservator with another conservator.
8.
Termination of conservatorship.
The superintendent by order may terminate the conservatorship according to this subsection.
9.
Immunity from civil liability.
A person serving as a conservator is immune from any civil liability for acts performed within the scope of the conservator's duties in the same manner and to the same extent as employees of governmental entities are under the Maine Tort Claims Act.
9-A.
Directors not liable.
The members of the board of directors of a financial institution may not be liable to the financial institution's shareholders or creditors for acquiescing in or consenting in good faith to the appointment of a conservator for that financial institution or requiring the financial institution to be acquired by a financial institution holding company or to combine with another financial institution, if grounds exist for appointing a conservator for the financial institution.
10.
Judicial review.
Any person affected adversely by any act or omission of the superintendent or conservator under this section or section 367‑A may bring an action in the Superior Court of Kennebec County seeking an order annulling, altering or modifying the act or enjoining the performance of the act or requiring action to be taken under any provision of this section.

Legislative History

PL 2005, c. 83, §7 (NEW). PL 2009, c. 228, §5 (AMD). PL 2011, c. 559, Pt. A, §6 (AMD).