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§19-12-8  Priority of claims – Federally insured financial institutions or credit unions. –


Published: 2015

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TITLE 19

Financial institutions

CHAPTER 19-12

Receivership

SECTION 19-12-8



   § 19-12-8  Priority of claims –

Federally insured financial institutions or credit unions. –

In a receivership, or a conservatorship under chapter 11 of this title, of a

financial institution or credit union whose deposits are insured by the federal

deposit insurance corporation, the national credit union administration or any

other agency or instrumentality of the United States, the allowed expenses and

claims against the financial institution or credit union shall have priority in

receiving distributions, out of the assets of the financial institution or

credit union in the following order:



   (1) The payment of costs and expenses of the administration

of the receivership estate.



   (2) The payment of claims for "deposits", as that term is

defined in 12 U.S.C. § 1813(I), including, but not limited to, the claims

of depositors in a mutual savings bank for return of their deposits.



   (3) Unsecured claims of any local, state, or federal taxing

authority entitled by law to priority in distribution from the receivership or

conservatorship estate, to the extent of such priority.



   (4) Claims of salaried employees of the financial institution

or credit union for wages or salaries earned but unpaid as of the commencement

of the receivership or conservatorship.



   (5) Claims for all other general liabilities not specified

herein.



   (6) Claims otherwise proper that were not filed within the

prescribed time.



   (7) Claims for obligations expressly subordinated to deposits

and general liability claims.



   Any funds remaining shall be paid to the stockholders of the

financial institution or credit union, or, in the case of a mutual financial

institution in which there are no stockholders, to the depositors in proportion

to the respective amounts of their stock or deposits.



   Interest shall be given the same priority as the claim on

which it is based, but no interest shall be paid on any claim until the

principal of all claims within the same class has been paid or adequately

provided for in full.



History of Section.

(P.L. 1995, ch. 82, § 50.)