Sec. 36a-222. Appointment of receiver or conservator for Connecticut banks and credit unions. Requirements. Division within department for liquidating or administering banks or credit unions. Appointm
Sec. 36a-222. Appointment of receiver or conservator for Connecticut banks
and credit unions. Requirements. Division within department for liquidating or
administering banks or credit unions. Appointment of agent. Reports. Salaries,
costs and expenses. Exclusive jurisdiction of Superior Court. Admissibility of records. (a) In all cases in which the appointment of a receiver or conservator for any
Connecticut bank or Connecticut credit union is sought, if it is found that a receiver
or conservator should be appointed, the Superior Court shall appoint as a receiver or
conservator the commissioner or, if requested by the commissioner, the Federal Deposit
Insurance Corporation or the National Credit Union Administration, or their successor
agencies or, if such agencies cannot act as receiver or conservator, an independent receiver or conservator. If the commissioner, the Federal Deposit Insurance Corporation
or the National Credit Union Administration, or their successor agencies, accepts the
appointment as receiver or conservator, no bond shall be required to be posted. If an
independent person accepts the appointment as receiver or conservator, the court shall
require such person to post a suitable bond. The Superior Court may appoint the receiver
or conservator on an ex parte basis upon a sufficient affidavit of the commissioner or
the commissioner's authorized representative indicating reasonable likelihood that an
unsafe or unsound condition exists which is likely to have an adverse effect upon depositors, share account holders, clients or creditors. If an independent receiver or conservator
is appointed, the commissioner shall be a party to the receivership proceeding or conservatorship with standing to initiate or contest any motion, and the views of the commissioner shall be entitled to deference unless they are inconsistent with the plain meaning
of sections 36a-215 to 36a-239, inclusive.
(b) The commissioner may organize a separate division within the Department of
Banking for liquidating or administering the affairs of the banks or credit unions for
which the commissioner is acting as receiver or conservator, and the commissioner
may appoint such employees and retain such consultants as the commissioner deems
necessary for the liquidation or administration of the affairs of such banks or credit
unions. The commissioner may appoint an agent, who shall be an employee of the
Department of Banking and who, in the absence or incapacity of the commissioner and
of the commissioner's deputy, shall have authority to act for or represent the commissioner in all matters pertaining to the duties of the commissioner as the receiver or
conservator of any Connecticut bank or Connecticut credit union. Such agent may execute and sign for the commissioner as the receiver or conservator any documents, instruments or reports necessary in the administration of the receivership or conservatorship.
All legal services required by the commissioner as receiver or conservator or the commissioner's deputy, agent or employees in connection with such receivership proceedings or the administration or reorganization of any such Connecticut bank or Connecticut
credit union shall be performed by the Attorney General. The commissioner shall keep
on file in the commissioner's office an executed copy of each report required to be filed
by the commissioner as receiver or conservator with the clerk of the Superior Court and
shall include a report of each bank or credit union for which the commissioner is acting
as receiver or conservator in the commissioner's annual report to the Governor.
(c) (1) If the commissioner is appointed receiver or conservator, any salaries and
expenses incurred in the liquidation, reorganization or administration of the bank or
credit union shall be paid out of the funds of the bank or credit union, subject to the
approval of the Superior Court. The state shall be reimbursed for any costs or expenses
incurred by the Department of Banking in the liquidation, reorganization or administration of the receivership or conservatorship, and the commissioner may collect from
each such estate in receivership or conservatorship such costs and expenses as, in the
commissioner's opinion, are fair and equitable. Any such costs or expenses so collected
shall be deposited with the State Treasurer and shall be credited to the State Banking
Fund. Any salaries and expenses for legal services provided by the Attorney General
shall be paid out of the funds of the estate in receivership or conservatorship with the
approval of the court. Such salaries and expenses shall be allocated by the commissioner
as nearly as possible to the estate in receivership or conservatorship for which the services were rendered, and the funds in payment of the same shall be deposited with the
State Treasurer and shall be credited to the appropriation for the Attorney General.
(2) If an independent person is appointed receiver or conservator, the cost and expenses incurred in the liquidation, reorganization or administration of the bank or credit
union, including any funds paid by the commissioner to the receiver or conservator
before the bank or credit union was placed in receivership or conservatorship, shall be
paid out of the funds of the bank or credit union, subject to the approval of the court.
(d) Upon the appointment of a receiver pursuant to subsection (a) of this section,
possession of and title to all assets, business and property of the Connecticut bank or
Connecticut credit union shall pass to and vest in the receiver without the execution of
any instruments of conveyance, assignment, transfer or endorsement.
(e) (1) Except as otherwise provided by this subdivision, the superior court in which
a receivership proceeding against a Connecticut bank or Connecticut credit union is
pending has exclusive jurisdiction to hear and determine all actions or proceedings
instituted by or against the bank, credit union or receiver after the receivership proceeding begins. The receiver may file in any jurisdiction an ancillary suit to obtain jurisdiction
or venue over a person or property.
(2) A record of a Connecticut bank or Connecticut credit union obtained by the
receiver and held in the course of the receivership proceeding or a certified copy of the
record under the official seal of the receiver is admissible as evidence in all cases without
proof of correctness or other proof, except the certificate of the receiver that the record
was received from the custody of the bank or credit union or found among its effects.
The receiver may certify the correctness of such record and a record of the receiver's
office, and may certify any fact contained in the record. The record is admissible as
evidence in all cases in which the original would be evidence. The original record or a
certified copy of the record is prima facie evidence of the facts it contains.
(f) (1) A judgment or order of a court of this state or of another jurisdiction in an
action pending by or against a Connecticut bank or Connecticut credit union, rendered
after the date such bank or credit union was placed in receivership, is not binding on
the receiver unless the receiver was made a party to the suit.
(2) Before the first anniversary of the date the Connecticut bank or Connecticut
credit union was placed in receivership, the receiver may not be required to plead to
any suit pending against such bank or credit union in a court in this state on the date
such bank or credit union was placed in receivership and in which the receiver is a proper
plaintiff or defendant.
(P.A. 94-122, S. 97, 340; P.A. 02-73, S. 12; P.A. 04-136, S. 14; P.A. 05-288, S. 199.)
History: P.A. 94-122 effective January 1, 1995; P.A. 02-73 amended Subsecs. (a) and (b) by adding provisions making
section applicable to Connecticut credit unions; P.A. 04-136 replaced former Subsecs. (a) and (b) with new Subsec. (a) re
appointment of a receiver or conservator for any Connecticut bank or Connecticut credit union and requirements re such
appointment, new Subsec. (b) authorizing commissioner to organize separate division within department for liquidating
or administering affairs of banks or credit unions for which commissioner is acting as receiver or conservator, re appointment
and powers of agent, and concerning reports, new Subsec. (c) requiring salaries and expenses incurred in liquidation,
reorganization or administration of bank or credit union to be paid out of funds of bank or credit union, subject to court
approval, and re reimbursement of state for any costs or expenses incurred by department concerning receivership or
conservatorship, new Subsec. (d) requiring possession of and title to all assets, business and property of bank or credit
union to pass to and vest in receiver without execution of any instruments upon appointment of a receiver, new Subsec.
(e) re exclusive jurisdiction of Superior Court and admissibility of records, and new Subsec. (f) re judgments or orders of
court, effective May 12, 2004; P.A. 05-288 made technical changes in Subsec. (c)(2), effective July 13, 2005.