Effective 06 Jul 1994, see footnote

369.349. Liquidation by director, procedure. — 1. When the director of the division of finance determines to liquidate an association, the director shall file a petition in the circuit court of the county in which the principal office of the association is located setting forth the facts. If the court finds that under the law the director is entitled to liquidate the association, the court shall thereupon appoint the director as receiver. The director shall cause an inventory of all the assets of the association to be filed with the court and shall cause notice to be given by publication, once a week, for four successive weeks in some newspaper of general circulation published at or near the principal place of business in the state of such association to all persons having claims against the association as creditors, or otherwise, requiring them to present and file their claims and make legal proof thereof at a place and within a time designated in such publication. The time shall be not less than six months after the first publication. Within ten days after the first publication, the director shall cause a copy of such notice to be mailed to all persons whose names appear of record upon the association's books as creditors.

2. All claims, demands, or causes of action of creditors against the association or against any property owned or held by it in trust or otherwise must be presented to the director in writing, verified by the claimant or someone on the claimant's behalf, within the period specified in the notice for the presentation of claims whether or not an action is pending to enforce any such claim or demand. The director shall not approve any claim not so presented and any such claim, demand or cause of action not so presented is forever barred. Upon the expiration of the time fixed for the presentation of claims, the director shall prepare a full and complete schedule of all claims presented specifying by classes those that have been approved and those that have been disapproved and file the same with the court.

3. Not later than five days after the time of filing the schedule of claims with the court, written notice shall be mailed to all claimants whose claims have been rejected. Petition to enforce the payment of or to establish any rejected claim must be filed in the liquidation proceeding and service had upon the director within four months from and after the date of filing of the schedule of claims or all such actions are forever barred.

4. Any account holder without presenting a claim is entitled to any liquidating dividends declared, to the extent and in the proper relative order of priority, on any claim shown by the books of the association to exist in the account holder's favor against the association.

5. Claims of creditors shall bear interest at the rate provided by law on judgments from the date the director takes possession of the business, property and assets of the association.

6. The filing of the petition under subsection 1 operates to stay or dissolve all actions or attachments instituted or levied within thirty days next preceding the taking of possession of such association by the director under section 369.344 or under this section, and pending the process of liquidation, no attachment or execution shall be levied or lien created upon any of the property of the association.

7. In liquidating the affairs of the association, the director may:

(1) Take possession of all property and assets, collect all money due to and claims of the association and give receipt thereof;

(2) Release or reconvey all real or personal property pledged, hypothecated or transferred in trust as security for loan;

(3) Approve and pay all just and equitable claims;

(4) Commence and prosecute all actions and proceedings necessary to enforce liquidation;

(5) Compound bad or doubtful debts or claims, borrow money, sell, convey or transfer real or personal property on order of the court;

(6) In the name of the association, or in the director's own name, prosecute and defend any suit or other legal proceeding;

(7) In the name of the association, or in the director's own name as director, execute, acknowledge, and deliver any and all deeds, assignments, releases and other instruments necessary and proper to effectuate any sale of real or personal property or other transaction in connection with the liquidation of the association. Any deed, assignment, release or other instrument executed pursuant to this section is valid and effectual for all purposes as though it were executed by the officers of such association with the authority of its board of directors; and

(8) With the approval of the court, abandon any bad or doubtful debt or claim on any property of the association.

8. The director may appoint one or more special deputies to assist in the duties of liquidation and distribution and may also employ such special legal counsel, accountants and assistants as may be needed and required and fix their salaries and compensation subject to the approval of the court. All such salaries and compensation and such reasonable and necessary expenses as may be incurred in the liquidation shall be paid by the director from the funds of the association in the director's hands. Such expenses shall include that part of the salary of the director and of the director's deputies, examiners, accountants and other assistants and that part of the general expenses of the director's office as fairly represent, in the opinion of the director, the proportion properly attributable to such liquidation.

9. From the net realization of assets, the director, subject to the approval of the court, shall pay dividends in liquidation to the creditors in order of preference. All remaining assets of a mutual association shall be distributed to the account holders in proportion to the amounts of their respective accounts as of the date liquidation began. All remaining assets of a capital stock association shall be distributed to the stockholders in accordance with their stock ownership.

10. Any money due to but unclaimed by any person shall be deposited with the director. The owner, the owner's heirs or personal representative may claim any funds so deposited by proof of ownership satisfactory to the director at any time within ten years. Earnings on such funds during possession by the director shall be used to defray expenses of the director's office, and the owner, the owner's* heirs and personal representatives shall have no claim thereto. Money not so claimed in ten years shall be delivered to the state treasurer from whom the owner, the owner's heirs or personal representative may claim such funds upon proof of ownership satisfactory to the state treasurer.

11. On the payment of a final dividend in liquidation, the director shall prepare and file with the court a full and final statement of liquidation including a summary of the receipts and disbursements which shall be filed with the court and in the office of the director. After hearing and approval by the court, the liquidation shall be closed. The order of the court approving the final settlement on liquidation shall provide for the destruction or other disposition of the books and records of the association or pertaining to the liquidation of the association, and the court may declare the association dissolved as a corporation. A copy of the order dissolving the association as a corporation shall be filed with the secretary of state.

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(L. 1971 S.B. 3 § 69, A.L. 1982 S.B. 464, A.L. 1994 H.B. 1165)

Effective 7-06-94

*Word "director's" appears in original rolls.