Sec. 36a-237. (Formerly Sec. 36-51). Distribution of assets of any Connecticut bank, trust bank or uninsured bank. Order of priority. Distribution of assets of a Connecticut credit union in event of l
Sec. 36a-237. (Formerly Sec. 36-51). Distribution of assets of any Connecticut
bank, trust bank or uninsured bank. Order of priority. Distribution of assets of a
Connecticut credit union in event of liquidation. Sequence of distribution. (a) The
assets of any Connecticut bank, other than a trust bank or uninsured bank, in the possession of a receiver shall be distributed in the following order of priority: (1) All fees and
assessments due the commissioner; (2) the charges and expenses of settling such bank's
affairs; (3) all deposits; (4) all other liabilities; (5) any liquidation account; and (6) in
the case of a capital stock Connecticut bank, the claims of shareholders or, in the case
of a mutual savings bank or mutual savings and loan association, the claims of depositors
in proportion to their respective deposits.
(b) (1) The assets of a trust bank or an uninsured bank shall be distributed in the
following order of priority: (A) All fees and assessments due the commissioner; (B)
administrative expenses; (C) approved claims of owners of secured trust funds on deposit
to the extent of the value of the security as provided in subsection (d) of section 36a-237f; (D) approved claims of secured creditors to the extent of the value of the security
as provided in subsection (d) of section 36a-237f; (E) approved claims by beneficiaries
of insufficient commingled fiduciary money or missing fiduciary property and approved
claims of clients of the trust bank or uninsured bank; (F) other approved claims of
depositors and general creditors not falling within a higher priority under this subdivision, including unsecured claims for taxes and debts due the federal government or a
state or local government; (G) approved claims of a type described by subparagraphs
(A) to (F), inclusive, of this subdivision that were not filed within the period prescribed
by sections 36a-215 to 36a-239, inclusive; and (H) claims of capital note or debenture
holders or holders of similar obligations and proprietary claims of shareholders or other
owners according to the terms established by issue, class or series.
(2) As used in this subsection, "administrative expense" means (A) any expense
designated as an administrative expense by sections 36a-231 and 36a-237h; (B) any
charge or expense of settling the affairs of the bank, including court costs and expenses
of operation and liquidation of the bank's estate; (C) wages owed to an employee of the
bank for services rendered within three months before the date the bank was placed in
receivership and not exceeding two thousand dollars to each employee; (D) current
wages owed to an employee of the bank whose services are retained by the receiver for
services rendered after the date the bank is placed in receivership; and (E) an unpaid
expense of supervision or conservatorship of the bank before it was placed in receivership.
(c) In the event of liquidation of a Connecticut credit union, the assets of the Connecticut credit union or the proceeds from any disposition of the assets shall be applied
and distributed in the following sequence: (1) All fees and assessments due the commissioner; (2) claims of secured creditors up to the value of their collateral; (3) the costs
and expenses of liquidation; (4) the wages due the employees of the Connecticut credit
union; (5) the costs and expenses incurred by creditors in successfully opposing the
release of the Connecticut credit union from certain debts as allowed by the commissioner; (6) all taxes owed to the United States or any other governmental unit; (7) all
other debts owed to the United States or any other governmental unit; (8) claims of
general creditors and secured creditors to the extent that their claims exceed the value
of their collateral; (9) claims of members, to the extent of uninsured share accounts, and
the organization that insured the share accounts of the Connecticut credit union; (10)
in the event of liquidation of a Connecticut credit union that is a corporate Connecticut
credit union, as defined in section 36a-435b, membership capital, and then paid-in capital; and (11) in the event of liquidation of a Connecticut credit union that has received
a low-income designation from the National Credit Union Administration under 12 CFR
701.34, as from time to time amended, any outstanding secondary capital accounts.
(d) The holders of claims in any class set forth in this section shall not receive any
distribution until the holders of claims in all classes having a higher priority under this
section are paid in full. If the assets of any such Connecticut bank or Connecticut credit
union are insufficient to pay in full all of the claims in a particular class, the assets shall
be distributed to each claimant within such class on a pro rata basis.
(1949 Rev., S. 5776; P.A. 78-121, S. 34, 113; P.A. 88-65, S. 29; P.A. 91-126, S. 1, 2; P.A. 92-89, S. 2, 20; P.A. 94-122, S. 112, 340; P.A. 02-73, S. 25; P.A. 04-136, S. 26; P.A. 05-288, S. 201.)
History: P.A. 78-121 removed building associations from Subsec. (3) and deleted Subsec. (5) re property of private
bankers; P.A. 88-65 deleted Subsec. (4) re property of industrial banks; P.A. 91-126 relettered Subsecs. (1), (2) and (3) to
read (a), (b) and (c), respectively, and renumbered the Subdivs. therein, changed "appropriated ratably to the payment of"
to read "distributed in the following order of priority" in each Subsec., changed state bank and trust company to capital
stock bank organized under the laws of this state, added Subsec. (a)(6) re claims of stockholders, changed savings bank
to mutual savings bank organized under the laws of this state and added "including deposits" and "in proportion to their
respective deposits" in Subsec. (b), changed savings and loan association to savings and loan association organized under
the laws of this state, except a capital stock savings and loan association and added "including deposits" in Subsec. (c),
and added Subsec. (d) re distribution to holders of claims; P.A. 92-89 provided that all fees and assessments due the
commissioner shall be first in order of priority in the event of distribution by a receiver; P.A. 94-122 consolidated the
priority provisions for payment of claims in case of bank failure for all banks, deleted Subsecs. (b) and (c) and renumbered
former Subsec. (d) as Subsec. (b), and made technical changes, effective January 1, 1995; Sec. 36-51 transferred to Sec.
36a-237 in 1995; P.A. 02-73 added new Subsec. (b) re application and sequence of distribution of assets of Connecticut
credit union in the event of liquidation, redesignated existing Subsec. (b) as Subsec. (c) and deleted "capital stock" and
"mutual savings bank or mutual savings and loan association" and added "Connecticut credit union" in Subsec. (c); P.A.
04-136 amended Subsec. (a) to replace "avails of the property" with "assets" and to insert "other than a trust bank or
uninsured bank", added new Subsec. (b) re distribution of assets of a trust bank or uninsured bank and definition of
"administrative expense", redesignated existing Subsecs. (b) and (c) as new Subsecs. (c) and (d), respectively, and amended
Subsec. (d) to substitute "assets" for "avails of the property" and "avails", effective May 12, 2004; P.A. 05-288 made a
technical change in Subsec. (c)(9), effective July 13, 2005.
Annotations to former section 36-51:
Rights of depositors in savings department of trust company; set-off, interest and notes deposited for collection discussed. 88 C. 185. State franchise tax claim held on parity in receivership with expenses of settling affairs. 113 C. 662.
"Creditors" of private banker include both depositors and those who have delivered money for transmission. 114 C. 661.
No set-off for depositor as to note held as asset of savings department; exception where loan was made by commercial
department and note was subsequently transferred as addition to assets of savings department. 115 C. 6. No priority as
trust for checks forwarded by another bank for collection and charged against drawers' accounts. Id., 12. Savings department
depositors entitled to have segregated funds applied ratably; if such funds are insufficient, unpaid balance of savings
deposits stands on parity with commercial deposits. There is no preference over other savings deposits for trust funds
deposited in fiduciary's own savings department. Id., 24. Distinction between general and special deposits. Id., 31. Savings
depositors not entitled to preferred share in income from segregated fund. Id., 368. No set-off for note held as investment
of savings department, whose maker has pledged his savings passbook. Id., 372. History of this section; it modifies common
law by putting deposits of the state on parity with those of other depositors. Id., 393. Such claims are classified under "all
other liabilities". 116 C. 609. Depositor of check for collection only can recover in full if proceeds can be traced. 117 C.
411. Where checks are credited subject to payment and depositor has immediate right to draw, general deposit is created
without preference. Id. Quaere as to whether statement on deposit slip that bank acts only as collecting agent has effect of
according preference over deposits. Id., 416. Private banker is trustee as to funds obtained from items forwarded for
collection and remaining segregated in banker's hands. Id., 472. Where private banker improperly surrendered bills of
lading without obtaining payment of drafts, liability of banker is for conversion, and there is no preference under this
statute. Id., 477. Issuance to depositor of bank's own check for whole or portion of deposit does not terminate status of
depositor until check is paid. 118 C. 586.