§ 19-13-2. Suspension of payment of deposits.
During the period of a banking emergency, the director may, if deemed necessary for
the protection of the public and of the interests of depositors and other creditors
of any or all regulated institutions, order the regulated institutions to suspend
or restrict, in whole or in part, the payment in currency, or by other means, of the
liabilities of the regulated institutions to shareholders, depositors, and other creditors,
except as hereinafter provided. The order shall become effective upon receipt by the
regulated institutions of notice thereof, and shall continue in full force and effect
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§ 19-13-2. Suspension of payment of deposits.
During the period of a banking emergency, the director may, if deemed necessary for
the protection of the public and of the interests of depositors and other creditors
of any or all regulated institutions, order the regulated institutions to suspend
or restrict, in whole or in part, the payment in currency, or by other means, of the
liabilities of the regulated institutions to shareholders, depositors, and other creditors,
except as hereinafter provided. The order shall become effective upon receipt by the
regulated institutions of notice thereof, and shall continue in full force and effect
during the period of banking emergency, until revoked or modified by the director.
Whenever, in the judgment of the director, the condition of emergency, because of
which the order was made, warrants action, the liability, the payment of which has
been suspended or restricted, may be paid by the regulated institution, in whole or
pro rata or in part, upon any terms and conditions and in any form as the director
shall prescribe, provided that acceptance of any such payment, if and so far as not
offered in legal tender, shall be optional with the person entitled to payment of
that liability.