Sec. 36a-428k. Voluntary liquidation of business and property of state branches and state agencies.
Sec. 36a-428k. Voluntary liquidation of business and property of state
branches and state agencies. (a) Any foreign bank which (1) has been licensed to
establish and maintain a state branch or state agency in this state the assets of which in
this state exceed the liabilities of its state branches or state agencies in this state, including
any such foreign bank whose license has expired or been surrendered or revoked, and
(2) intends to cease transacting the business of any of its state branches or state agencies
in this state, shall commence proceedings for the voluntary liquidation of the business
and property in this state of such state branches or state agencies, provided, no such
proceedings shall be commenced while the commissioner is in possession of such business and property in this state unless such foreign bank shall have first received the
written approval of the commissioner. In any such liquidation, the claims of creditors
of such foreign bank arising out of transactions entered into by such creditors with the
foreign bank's state branches or state agencies in this state shall be accorded the same
preference accorded to similar claims in a liquidation under section 36a-428n.
(b) To effect such a voluntary liquidation, a foreign bank shall file with the commissioner a written notice of its intention to liquidate together with a plan of liquidation.
The notice shall specify the date of commencement of the liquidation, and on or before
such date such foreign bank shall cease to transact business at such state branches or
agencies.
(c) The commissioner may approve the plan and issue an order prescribing the
notice to be given to (1) creditors whose claims arise out of transactions with such
branches or agencies, and (2) owners of personal property in the custody or possession
of such branches or agencies, to present their claims for payment.
(d) When such foreign bank has given the notice prescribed by the commissioner
under subsection (c) of this section, it shall proceed with the liquidation in accordance
with the plan. Upon completion of the liquidation, such foreign bank shall make a verified statement from its books of the names of all creditors and owners of personal property described in subsection (c) of this section who have not claimed or have not received
the amounts due them, and shall file such statement with the commissioner together
with all identifying information, including, in the case of unclaimed proceeds of any
sale of personal property, a list of the articles sold, the prices obtained therefor and the
amount deducted and retained from the proceeds. Such foreign bank shall thereupon
pay such unclaimed amounts to the commissioner as trustee for the persons entitled to
receive them.
(e) If the commissioner shall at any time find that any of the reasons enumerated
in section 36a-428n for taking possession of the business and property in this state of a
foreign bank exists, the commissioner may take possession of the business and property
in this state of such foreign bank in accordance with section 36a-428n, notwithstanding
that such foreign bank may have previously commenced proceedings for voluntary liquidation under this section. As used in this section, "business and property in this state"
shall have the same meaning as provided in subsection (a) of section 36a-428n.
(P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; Oct. Sp. Sess. P.A. 94-1, S. 12, 21; P.A. 95-220, S.
4-6; P.A. 97-160, S. 6, 7.)
History: Oct. Sp. Sess. P.A. 94-1, S. 12, effective January 1, 1995. (Revisor's note: P.A. 88-230, P.A. 90-98 and P.A.
93-142 authorized substitution of "judicial district of Hartford" for "judicial district of Hartford-New Britain" in the public
and special acts of 1994 regular and special sessions, effective September 1, 1996); P.A. 95-220 changed the effective
date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 97-160 amended Subsec.
(a) to require written approval of commissioner for liquidation proceeding when commissioner is in possession of business
and property and to add provisions re preferences for claims of creditors, amended Subsec. (e) to authorize the commissioner
to take possession of business and property in accordance with Sec. 36a-428n for any reasons enumerated in Sec. 36a-428n, to redefine "business and property in this state", and to delete former provisions re taking possession of business
and property, and deleted former Subsec. (f) re application for show cause order, effective June 24, 1997.