§ 627 — Dividends to creditors; distributions to stockholders; dissolution; destruction of documents

§ 627. Dividends to creditors; distributions to stockholders;\ndissolution; destruction of documents. 1. At any time after the date\nfixed by the superintendent for the presentation of claims, the\nsuperintendent may, upon an order of the supreme court, declare and pay\nout of the funds remaining in his or her hands after the payment of\nexpenses, one or more dividends to creditors whose claims or accounts\npayable have been accepted or otherwise duly established. If the\nsuperintendent intends to declare and pay more than one dividend to\ncreditors, at the time he or she declares and pays out such first\ndividend to creditors, the superintendent may pay in full those claims\nand accounts payable that were accepted, or otherwise duly established,\nin an amount that is less than one hundred dollars; provided, however,\nthat this sentence shall not be construed as a right to priority of\npayment; and provided further, that if the superintendent will not be\nable to satisfy in full all other creditors with accepted claims or\naccounts payable either in the first or succeeding dividends, then such\npayment may not be made. After a dividend or dividends aggregating one\nhundred per centum of the principal amount of all such claims and\naccounts payable shall have been paid or set apart, and if funds are\navailable therefor, a further dividend or dividends on account of\ninterest accruing, on such claims and accounts payable, subsequent to\nthe commencement of the liquidation may, at the sole discretion of the\nsuperintendent, be paid to the creditors entitled thereto at a rate not\nto exceed four per centum per annum, but nothing herein shall be deemed\nto create any right to interest which would not otherwise accrue or be\npayable. No creditor shall be entitled to receive nor be paid interest\non any dividend or dividends by reason of delay in payment of such\ndividend or dividends. Dividends remaining unclaimed or unpaid in the\nhands of the superintendent for six months after payment of a final\ndividend, shall be deposited as provided in article two of this chapter\nexcept that if, after payment of such a dividend, the liquidation is\ncontinued in accordance with the provisions of subdivision two of this\nsection, then such dividends shall be so deposited simultaneously with\nthe like deposit of unclaimed or unpaid distributive amounts pursuant to\nthe provisions of such subdivision at the expiration of six months after\na final distribution.\n 2. Whenever the superintendent shall have (a) paid to, or set apart\nfor, each creditor of any stock corporation whose claim or account\npayable has been accepted or otherwise duly established, a dividend or\ndividends aggregating the full amount of such claim or account payable\ntogether with interest thereon, and (b) set aside proper reserves for\nclaims and accounts payable in litigation and not finally determined and\nfor such other purposes as in the discretion of the superintendent shall\nbe necessary or desirable, and (c) paid all the expenses of liquidation,\nthe superintendent shall, if there be assets remaining in his or her\nhands, continue the liquidation of the affairs of such corporation and\nafter paying the expenses thereof, distribute the proceeds, together\nwith any part of the foregoing reserves not finally necessary to pay\ncreditors and expenses in full, among the persons equitably entitled\nthereto according to their respective rights and interests and in such\nmanner and upon such notice as may be directed by order of the supreme\ncourt. Any such distributive amounts remaining unpaid or unclaimed in\nthe hands of the superintendent for six months after a final\ndistribution shall be deposited by the superintendent as provided in\narticle two of this chapter.\n 3. Upon the petition by the superintendent showing that the\nliquidation of a corporate banking organization of which he has taken\npossession has been completed and upon such notice as the supreme court\nmay prescribe, the court may, on such terms as justice requires, make an\norder declaring such corporation dissolved and the corporate existence\nthereof terminated. Upon the filing of a certified copy of such order in\nthe office of the superintendent, the existence of such corporation\nshall cease and determine.\n 4. Any records, documents and correspondence of any banking\norganization of which the superintendent has taken possession and any\nrecords, documents and correspondence in the custody of the\nsuperintendent relating to the liquidation of such banking organization\nmay be destroyed or otherwise disposed of at such time or times and in\nsuch manner as the supreme court by order may authorize.\n