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§ 1805. Winding up in voluntary dissolution proceedings

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and Banking

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 7 P.S. Banks and Banking (Refs & Annos)
Banking Code of 1965 (Refs & Annos)
Chapter 18. Voluntary and Involuntary Dissolution; Distribution of Assets upon Insolvency (Refs & Annos)
7 P.S. § 1805
§ 1805. Winding up in voluntary dissolution proceedings
(a) Authority of board--The board of directors shall have full power to wind up and settle the affairs of an institution in voluntary dissolution proceedings.
(b) Notices--Within thirty days after the issuance of an approved certificate of election to dissolve, the institution shall give notice of its dissolution:
(i) by mail to each depositor and creditor (except those as to whom the liability of the institution has been assumed by another institution or national bank pursuant to the plan), including a statement of the amount shown by the books of the institution to be due to such depositor or creditor and a demand that any claim for a greater amount be filed with the institution before a specified date at least sixty days after the date of the notice,
(ii) by mail to each lessee of a safe-deposit box and each customer for whom property is held in safe-deposit (except those as to whom the liability of the institution has been assumed by another institution or national bank pursuant to the plan), including a demand that all property held in a safe-deposit box or held in safe-deposit by the institution be withdrawn by the person entitled thereto before a specified date at least sixty days after the date of the notice,
(iii) by mail to each person interested in funds held in a fiduciary account or other representative capacity,
(iv) by a conspicuous posting at each office of the institution, and
(v) by such publication as the department may prescribe.
(c) Fiduciary accounts--As soon as feasible after the issuance of an approved certificate of election to dissolve, the institution shall resign all fiduciary appointments and take such action as may be necessary to settle its fiduciary accounts.
(d) Payment of claims--All claims of depositors and creditors shall be paid promptly after the date specified in the notice given under subsection (b)(i) of this section. Unearned portions of rentals for safe-deposit boxes shall be rebated to the lessees thereof.
(e) Unclaimed property--Safe-deposit boxes whose contents have not been removed after the date specified in the notice given under subsection (b)(ii) of this section shall be opened under the supervision of the department and the contents placed in sealed packages which, together with unclaimed property held by the institution in safe-deposit, shall be transmitted to the Department of Revenue to be converted into cash and paid into the State Treasury, without escheat. After payment of amounts due to all known depositors and creditors, unclaimed amounts due to depositors and creditors shall be paid through the Department of Revenue into the State Treasury, without escheat.
(f) Distributions to shareholders--Assets remaining after the performance of all obligations of the institution under subsections (c), (d) and (e) of this section shall be distributed to its shareholders according to their respective rights and preferences. Partial distributions to shareholders may be made prior to such time only if, and to the extent, approved by the department.
(g) Reports and examinations--During the course of dissolution proceedings the institution shall make such reports as the department may require and the institution shall continue to be subject to the provisions of this act concerning examinations of institutions until completion of the dissolution of the institution.
(h) Possession by department--If at any time during the course of dissolution proceedings the department finds that the assets of the institution will not be sufficient to discharge its obligations, the department may then or at any time thereafter take possession of the business and property of the institution and complete the dissolution in accordance with the provisions of the Department of Banking Code.1

Credits

1965, Nov. 30, P.L. 847, No. 356, § 1805.

Footnotes

71 P.S. § 733-1 et seq.
7 P.S. § 1805, PA ST 7 P.S. § 1805
Current through 2022 Regular Session Act 121. Some statute sections may be more current, see credits for details.
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