§ 58-1-72 — Voluntary liquidation and dissolution

A. A state bank may liquidate and dissolve with the approval of the commissioner [director of the financial institutions division of the regulation and licensing department]. The commissioner [director] shall grant approval to liquidate and dissolve if: (1) the proposal to liquidate and dissolve has been approved by a vote of two- thirds of the outstanding voting stock at a meeting called for the purpose of considering that action; and (2) the state bank is solvent and has sufficient liquid assets to pay off depositors and creditors immediately. B. After approval by the commissioner [director], the bank shall: (1) cease to do business forthwith; (2) send by mail, within thirty days of the approval, a notice of liquidation to each depositor, creditor, person interested in funds held as a fiduciary, lessee of a safe deposit box or bailor of property; (3) include with the liquidation notices sent by mail: (a) to all depositors or creditors, a statement of the amount on the books to be due the depositor or creditor, and that, if the amount claimed differs from that stated, a claim must be filed with the bank before a specified date, not earlier than sixty nor later than ninety days thereafter, in accordance with the procedure prescribed in the notice; (b) to all bailors or lessees of safe deposit boxes, a demand that property held by the bank as bailee or in safe deposit boxes be withdrawn within thirty days by the person entitled thereto; (c) to all persons interested in funds held as a fiduciary, a statement that the bank is going to take action to resign the fiduciary position and take action to settle its fiduciary accounts; (4) post the liquidation notice in a conspicuous place on the premises of the bank, and make any publication required by the commissioner [director]; (5) resign all fiduciary positions and take necessary action to settle its fiduciary accounts as soon as practicable; (6) open all safe deposit boxes from which the contents have not been removed within thirty days after demand, deal with the contents in the manner provided for boxes upon which the payment of rental is in default, and transfer the sealed packages containing the contents together with the certified inventories, to the commissioner [director]; (7) transfer to the commissioner [director] any other unclaimed property held by the bank as bailee, together with a certified inventory of such property; (8) pay all lawful claims of creditors and depositors promptly; or (a) if the amount due a creditor or depositor is unclaimed for ninety days after the final distribution, transmit it to the commissioner [director] with an accounting; and (b) if there is a disputed claim, deposit with the commissioner [director] a sum adequate to meet any liability that may be judicially determined; (9) deliver to the commissioner [director] any funds which cannot otherwise be disposed of in the settlement of its fiduciary accounts; (10) return the unearned portion of the rental of all safe deposit boxes to the lessee, or if the lessee cannot be found, to the commissioner [director], with an accounting; and (11) distribute to the stockholders, in accordance with their respective interests, any assets remaining after the discharge of all other obligations, or, if a stockholder cannot be found within ninety days of the final distribution, transmit his share to the commissioner [director]. C. The commissioner [director] shall: (1) retain for one year all unclaimed contents of safe deposit boxes and all unclaimed property which was held by the bank as bailee, unless sooner claimed by the person entitled to it, then sell or otherwise dispose of the property, and transfer the proceeds of any sale or disposition to the state treasurer as abandoned funds; (2) retain for five years any unclaimed distribution to a depositor, creditor, stockholder or person to whom the bank stood in a fiduciary position, unless sooner claimed by the person entitled thereto, and then transfer the funds to the state treasurer as abandoned funds. D. If at any time during the liquidation the commissioner [director] finds that the assets will be insufficient for the full discharge of all obligations, or that completion of the liquidation has been unduly delayed, he may take possession and complete the liquidation in the manner provided in the Banking Act for involuntary liquidations. E. The commissioner [director] may require reports of the progress of liquidation, and, whenever he is satisfied that the liquidation has been properly completed, he shall cancel the certificate of authority to do business and enter an order of dissolution.

Legislative History

1953 Comp., § 48-22-60, enacted by Laws 1963, ch. 305, § 60.