§ 13-5-417 — Insolvency; unsafe condition; receivership

Wyoming § 13-5-417

• Jurisdiction: Wyoming
• Title 13: Banks, Banking and Finance
• Ch. 5: TRUST COMPANIES
• Art. 4: SUPERVISED TRUST COMPANIES

Text

(a) If the commissioner finds a deficiency in capital or
other unsafe or unsound condition of a supervised trust company
that has not been remedied within the time prescribed under an
order of the commissioner issued pursuant to W.S. 13-10-201
through 13-10-209, or if the supervised trust company is
insolvent, the commissioner shall apply to the district court,
in the county in which the principal office of the supervised
trust company is located, to be appointed receiver for the
liquidation or rehabilitation of the supervised trust company.
The expense of the receivership shall be paid out of the assets
of the supervised trust company.
(b) A supervised trust company is insolvent when any of
the following conditions exist:
(i) When the actual cash market value of a supervised
trust company's assets is less than its liabilities;
(ii) When a supervised trust company fails to pay, in
the manner commonly accepted by business practices, its
obligations when due.
(c) A supervised trust company is operating in an unsafe
and unsound condition when any of the following conditions
exist:
(i) A supervised trust company fails to safely manage
its operations and provide fair and equitable services to its
trust customers;
(ii) It fails to effectively manage and monitor its
operational and financial risks.
(d) Title to all of the supervised trust company's assets
shall vest in the commissioner upon appointment by the court
pursuant to subsection (a) of this section of the commissioner
as receiver, without the execution of any instrument of
conveyance, assignment, transfer or endorsement.
(e) Subject to the approval of the appointing court, as
receiver, the commissioner shall have all of the following
powers:
(i) To take possession of all books, records of
account and assets of the supervised trust company;
(ii) To collect debts, claims and judgments belonging
to the supervised trust company and to take any other action
necessary to preserve and liquidate the assets of the supervised
trust company;
(iii) To appoint a special assistant to take charge
of the affairs of the supervised trust company. The special
assistant shall qualify, give bond, and receive compensation in
the same manner as the commissioner acting as a receiver, but
compensation for the special assistant shall be paid by the
supervised trust company being liquidated or rehabilitated;
(iv) To execute in the name of the supervised trust
company any instrument necessary or proper to effectuate the
receiver's powers or perform its duties as receiver;
(v) To initiate, pursue, compromise and defend
litigation involving any right, claim, interest or liability of
the supervised trust company;
(vi) To exercise all fiduciary functions of the
supervised trust company as of the date of appointment as
receiver;
(vii) To borrow money as necessary in the liquidation
of the supervised trust company and to secure those borrowings
by the pledge or mortgage of assets of the supervised trust
company;
(viii) To sell any and all assets, to compromise any
debt, claim, obligation or judgment due to the supervised trust
company, to discontinue any pending action or other proceeding
and to sell or otherwise transfer all or any portion of the
asset or liabilities of the supervised trust company;
(ix) To establish ancillary receivership in any
jurisdiction the receiver determines necessary;
(x) To distribute assets of the supervised trust
company in accordance with court approval after notice to all
claimants, beneficiaries, shareholders or members. Subject to
the approval of the court, the receiver may make periodic and
interim liquidating dividends or payments; and
(xi) To take any other action incident to the powers
set forth above.
(f) If determined by the commissioner to be in the best
interests of both the state and the supervised trust company,
the commissioner may require the supervised trust company to
file a petition under title 11 of the United States Code in lieu
of a receivership under this section. If the commissioner has
been appointed receiver under this section prior to the filing
of a petition under title 11, United States Code, the
commissioner shall be discharged from further duties under the
receivership after the resolution of any jurisdictional issues
at the commencement of a bankruptcy proceeding.