§ 609. Resumption of business by bank, trust company or industrial\nbank; retirement of certificates; applicability to stock-form savings\nbanks and stock-form savings and loan associations. 1. Any bank, trust\ncompany, stock-form savings bank or stock-form savings and loan\nassociation of which the superintendent has taken possession or which is\noperating under restrictions imposed by duly constituted authority may\nbe permitted by the superintendent, in his discretion and subject to\nsuch conditions as may be approved by him, to resume business in\naccordance with the provisions of this section.\n 2. No bank, trust company or industrial bank permitted by the\nsuperintendent to resume business in accordance with the provisions of\nthis section shall, without previously obtaining the written permission\nof the superintendent, pay, on account of any deposit made or debt\nincurred before such restrictions were imposed or before the\nsuperintendent took possession of such bank, trust company or industrial\nbank, more than that proportion of eighty per centum of the total value\nof its sound assets, as determined by the superintendent, which such\ndeposit or debt bears to the total of the deposits and debts of such\nbank, trust company or industrial bank at the time of resuming business:\nprovided that nothing contained in this section shall affect any\npreference created by any law of this state for the benefit of any\ndepositor or creditor or impair the rights of any secured depositor or\ncreditor in any assets lawfully pledged or assigned as such security.\nFor the purposes of this section, the holder of a judgment against any\nsuch bank, trust company or industrial bank for the payment of money\narising out of a cause of action arising prior to such resumption of\nbusiness, whether such judgment was recovered prior or subsequent to\nsuch resumption of business, shall have the same rights as if he were a\ndepositor having a balance equal to the amount of such judgment at the\ntime such restrictions were imposed or at the time the superintendent\ntook possession of such bank, trust company or industrial bank. The\nsuperintendent shall prepare for each such bank, trust company or\nindustrial bank a list of the assets which, in his judgment, are sound\nand the value thereof as determined by him.\n 3. Such bank, trust company or industrial bank shall, immediately upon\nresuming business, issue to its depositors and creditors non-negotiable\ntransferable certificates, in a form approved by the superintendent,\nrepresenting the part of its deposits and debts which it is not\nauthorized to pay at that time under the provisions of subdivision two\nof this section. Such certificates shall bear interest, if any, at a\nrate not in excess of three per centum per annum.\n 4. The superintendent shall from time to time determine the excess of\nthe value of the sound assets of such bank, trust company or industrial\nbank over the total of the principal amount of such certificates\noutstanding and of the deposits and debts of such bank, trust company or\nindustrial bank not represented by such certificates, including deposits\nmade and debts incurred after resuming business. The amount by which\nsuch excess is greater than the excess of the value of the sound assets\nof such bank, trust company or industrial bank, determined as provided\nin subdivision two of this section, over its total deposits and debts at\nthe time of resuming business may, unless the superintendent\ndisapproves, be paid pro rata on account of the principal due on such\ncertificates or, if the principal has been paid in full, on account of\nthe interest, if any, due thereon. No such bank, trust company or\nindustrial bank shall, without previously obtaining the written\npermission of the superintendent, make any other payment on account of\nthe principal or interest of such certificates.\n 5. No dividends shall be paid on the stock of such bank, trust company\nor indus
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.