Sec. 36a-235. (Formerly Sec. 36-49). Conditions under which transfers of or liens on property or assets of Connecticut banks and credit unions in receivership are voidable. Personal liability of perso
Sec. 36a-235. (Formerly Sec. 36-49). Conditions under which transfers of or
liens on property or assets of Connecticut banks and credit unions in receivership
are voidable. Personal liability of persons who implemented or benefited from
voidable transfers or liens. Issuance or levy of execution before final judgment
prohibited. (a)(1) A transfer of or lien on the property or assets of a Connecticut bank
or Connecticut credit union in receivership is voidable by the receiver if the transfer or
lien: (A) Was made or created: (i) Four months before the date such bank or credit union
is placed in receivership, or (ii) one year before the date such bank or credit union is
placed in receivership if the receiving creditor was at the time an affiliate, officer, director
or principal shareholder of such bank or credit union; (B) was made or created with the
intent of giving to a creditor or depositor, or enabling a creditor or depositor to obtain,
a greater percentage of the claimant's debt than is given or obtained by another claimant
of the same class; and (C) is accepted by a creditor or depositor having reasonable cause
to believe that a preference will occur.
(2) Each Connecticut bank or Connecticut credit union officer, director, manager,
shareholder, trustee, agent, employee, attorney-in-fact or correspondent, or other person
acting on behalf of such bank or credit union, who has participated in implementing a
voidable transfer or lien, and each person receiving property or the benefit of property
of such bank or credit union as a result of the voidable transfer or lien, is personally
liable for the property or benefit received and shall account to the receiver for the benefit
of the clients, depositors and creditors of such bank or credit union.
(3) The receiver may avoid a transfer of or lien on the property or assets of a Connecticut bank or Connecticut credit union that a client, creditor, depositor or shareholder of
such bank or credit union could have avoided and may recover the property transferred
or its value from the person to whom it was transferred, or from a person who has
received it unless the transferee or recipient was a bona fide holder for value before the
date such bank or credit union was placed in receivership.
(b) No execution shall be issued or levied against any Connecticut bank or Connecticut credit union, or its property, before final judgment, including the exhaustion of all
appeals, in any proceeding brought against such bank or credit union in any court in
this or any other state.
(1949 Rev., S. 5774; P.A. 78-121, S. 33, 113; P.A. 88-65, S. 28; P.A. 91-189, S. 12, 13; P.A. 94-122, S. 110, 340; P.A.
02-73, S. 24; P.A. 04-136, S. 25.)
History: P.A. 78-121 removed private bankers and building associations from purview of section; P.A. 88-65 deleted
a reference to industrial banks; P.A. 91-189 designated existing section as Subsec. (a) and added Subsec. (b) prohibiting
issuance or levy of execution before final judgment; P.A. 94-122 made technical changes, effective January 1, 1995; Sec.
36-49 transferred to Sec. 36a-235 in 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 Subsec. (a) with new Subsec. (a) specifying conditions
under which transfers of or liens on the property or assets of a Connecticut bank or credit union in receivership are voidable,
providing for personal liability of a person who participated in implementing a voidable transfer or lien and each person
receiving property or the benefit of property of such bank or credit union as a result of the voidable transfer or lien, and
allowing receiver to avoid a transfer of or lien on the property or assets of a bank or credit union that a client, creditor,
depositor or shareholder could have avoided and recover the property transferred or its value unless the transferee or
recipient was a bona fide holder for value before the date such bank or credit union was placed in receivership, effective
May 12, 2004.
Annotation to former section 36-49:
Intent to give a preference to a favored depositor will be inferred under certain circumstances. 116 C. 335.