§ 420-J — Liquidation of insured savings and loan associations

New York § 420-J

• Jurisdiction: New York
• Law BNK: Banking
• Art. 10-A: State Savings and Loan Insurance Fund

Text

§ 420-j. Liquidation of insured savings and loan associations. 1. In\nthe event that a savings and loan association is in default, the fund\nmay be appointed by the superintendent as conservator or receiver and as\nsuch, may be authorized by the superintendent (a) to take over the\nassets of and operate such association, (b) to take such action as may\nbe necessary to put it in a sound and solvent condition, (c) to\nnegotiate for a merger with another insured savings and loan\nassociation, (d) to negotiate the organization of a new savings and loan\nassociation to take over its assets, or (e) to proceed to liquidate its\nassets in an orderly manner, whichever shall appear to the\nsuperintendent to be in the public interest. The payment by the fund of\nan insured account in any such association which is in default shall\nentitle the fund to the rights of the holder of such insured account,\nbut shall not affect any right which the holder of such account may have\nin the uninsured portion of his account or any right which he may have\nto participate in the distribution of the net proceeds remaining from\nthe disposition of the assets of such association.\n 2. In order to prevent a default in an insured savings and loan\nassociation or in order to restore an insured association to normal\noperation as an insured savings and loan association, the fund is\nauthorized, in its discretion, to make loans to, purchase the assets of,\nor make a contribution to, an insured savings and loan association or an\ninsured savings and loan association in default; but no contribution\nshall be made to any such association in an amount in excess of that\nwhich the fund finds to be reasonably necessary to save the expense of\nliquidating such association.\n