§ 23-38-304 - Duties of receiver or conservator generally -- Dissolution of association.
23-38-304. Duties of receiver or conservator generally -- Dissolution of association.
(a) Before entering upon the duties of his office, the receiver or conservator shall be required by the court to execute to the association good and sufficient bond, conditioned for the faithful discharge of his duties, which bond shall be approved and filed with the chancery court.
(b) (1) If a conservator is appointed for the association, the conservator shall take possession of the association in accordance with the terms of the appointment and shall, at that time, give notice of the chancery court's action to any officer or employee in the home office who appears to be in charge of that office.
(2) On taking possession, the conservator shall immediately take possession of the association's books, records, and assets.
(3) A conservator shall, without further action, succeed to the rights, titles, powers, and privileges of the association and to the rights, powers, and privileges of its members, officers, and directors. No member, officer, or director shall thereafter have or exercise any such right, power, or privilege or act in connection with any of the association's assets or property.
(4) The chancery court may at any time, on proper showing by the Securities Commissioner, direct the conservator to turn over the association to its previous management, new management, or receiver.
(c) (1) If a receiver is appointed, the receiver shall be charged with the collection of all dues, interest, and other charges accruing upon the mortgages, notes, or other claims owing to the association but shall receive no further dues or other payments upon any shares, stock, or certificates issued by the association and shall issue no further shares, stock, or certificates of the association.
(2) The receiver shall pay, and procure the discharge of, all preferred debts and obligations of the association. After paying the necessary legal expenses of his receivership, he shall distribute the balance of the assets from time to time under orders from the chancery court pro rata to the liabilities of the association to the holders of its shares, stock, and certificates in proportion to the sums paid in on its several outstanding shares, stock, and certificates.
(3) To facilitate the work of liquidation of the association, the receiver may, and, on orders from the chancery court to do so, shall, negotiate for the sale and transfer of the mortgages and other assets and property of the association to other corporations or persons, subject always to the vested and accrued rights of the mortgagors. Before the sale or transfer is carried out and consummated, a full report of the negotiations and the proposed terms and conditions of the sale and transfer shall be filed with and approved by the chancery court.
(d) The compensation to be allowed a receiver or conservator under this section shall be an amount reasonable in proportion to the value of the property of the association and shall be fixed by the chancery court. All expenses necessary in carrying out the receivership or conservatorship shall be paid out of the assets of the association as directed by the chancery court.
(e) (1) Upon completion of the duties entrusted to him, the receiver shall prepare a statement to that effect, reciting therein that all the liabilities of the association have been completely discharged as far as its assets will permit and that its assets and property are distributed among all the persons entitled thereto. The statement shall be subscribed and sworn to by the receiver and filed with the chancery court, and a notice of the dissolution shall be published for three (3) successive weeks in a newspaper published in the county where the principal office of the association is located.
(2) Upon the filing of the statement, making publication of notice as aforesaid, and the approval and confirmation of the statement and report by the chancery court, the association shall be deemed liquidated and dissolved.