1157.18 [Effective Until 9/13/2010] Dividends - priorities in liquidation.
1157.18 [Effective Until 9/13/2010] Dividends - priorities in liquidation.
As soon as practicable after the expiration of the date fixed for the presentation of claims by creditors of a savings and loan association of whose business and property he has taken possession, the superintendent of savings and loan associations shall, out of the funds or property remaining in his hands after the payment of expenses, declare dividends. Each such dividend shall be paid to such persons, in such manner and amount, and upon such notice as may be directed by the court of common pleas in which the proceedings for the liquidation of such association are pending. Dividends due to shareholders, on claims as depositors or otherwise, shall be withheld by the superintendent to the extent of any liability of such shareholders until it is ascertained that it will not be necessary to enforce such liability by counterclaim or setoff. The court shall make proper provision for unproved and unclaimed deposits and for rejected claims upon which action has been instituted within the period provided for by section 1157.07 of the Revised Code, provided, that in the liquidation of a deposit guaranty association established under former sections 1151.80 to 1151.92 of the Revised Code, the court shall consider in making such provision the availability of other sources of funds to satisfy such rejected claims, including the availability of funds from the savings and loan assurance corporation against which such claims may be asserted. No final dividend shall be paid until after the final disposition of all claims filed. The power conferred by this section to pay dividends is in addition to the power conferred by section 1157.12 of the Revised Code to distribute dividends in cash or otherwise.
In connection with the liquidation of a savings and loan association described in section 1151.081 of the Revised Code, deposits are debts of such associations having the same priority as the claims of the general creditors of the association not having priority over other general creditors of the association and, in addition, shall have the same right to share in the remaining assets of the association, if any, that they would have if they were shares, stock, or stock credits.
Effective Date: 09-09-1988
This section is set out twice. See also § 1157.18, as amended by 128th General Assembly File No. 45, HB 292, § 1, eff. 9/13/2010.
1157.18 [Effective 9/13/2010] When superintendent may take possession
The superintendent of financial institutions may take possession of the property and business of a savings and loan association if the superintendent finds any one or more of the following conditions:
(A) The savings and loan association is in an unsafe or unsound condition to continue the business of banking.
(B) The savings and loan association is insolvent, in that it has ceased to pay its debts in the ordinary course of business, it is incapable of paying its debts as they mature, or it has liabilities in excess of its assets.
(C) The savings and loan association has refused to submit its records or affairs to the inspection or examination of any federal bank regulatory agency or the superintendent.
(D) The savings and loan association has failed to pay its deposits or obligations in accordance with the terms under which the deposits were taken or the obligations were incurred.
(E) A majority of the board of directors of the savings and loan association has requested the superintendent to appoint a receiver to take possession of the savings and loan association for the benefit of account holders, creditors, or shareholders.
(F) The savings and loan association has violated any order of a court or of the superintendent, any statute, rule, or regulation, or its articles of incorporation, and the superintendent determines the continued control of its own affairs threatens injury to any of the public, the banking industry, or the savings and loan association’s depositors or other creditors.
(G) The savings and loan association’s status as an insured institution has been terminated by the federal deposit insurance corporation.
(H) The savings and loan association has an impairment of paid-in capital.
Added by 128th General Assembly File No. 45, HB 292, § 1, eff. 9/13/2010.
Effective Date: 09-09-1988
This section is set out twice. See also § 1157.18, effective until 9/13/2010.