§ 19-13-2 - Suspension of payment of deposits.
SECTION 19-13-2
§ 19-13-2 Suspension of payment ofdeposits. – During the period of a banking emergency the director may, if deemed necessaryfor the protection of the public and of the interests of depositors and othercreditors of any or all regulated institutions, order the regulatedinstitutions to suspend or restrict, in whole or in part, the payment incurrency, or by other means, of the liabilities of the regulated institutionsto shareholders, depositors, and other creditors, except as hereinafterprovided. The order shall become effective upon receipt by the regulatedinstitutions of notice thereof, and shall continue in full force and effectduring the period of banking emergency, until revoked or modified by thedirector. Whenever, in the judgment of the director the condition of emergency,because of which the order was made, warrants action, the liability, thepayment of which has been suspended or restricted, may be paid by the regulatedinstitution, in whole or pro rata or in part, upon any terms and conditions andin any form as the director shall prescribe, provided that acceptance of anysuch payment, if and so far as not offered in legal tender, shall be optionalwith the person entitled to payment of that liability.