Section 10-110.1 - Final determination of insurable loss.
§ 10-110.1. Final determination of insurable loss.
(a) Duty of Fund Director.- Upon final liquidation of a member association, the Fund Director shall:
(1) Subject to subsection (b) of this section, determine the amount of insurable loss in the manner established by the rules and regulations of the Fund; and
(2) Make provision for the payment or assumption of any insurable loss to each depositor less any payments made to, or accounts made available to, a depositor under subsection (c) of this section.
(b) Limitation on determination.- The determination of insurable loss under subsection (a) (1) of this section shall occur no later than 4 years from the date a member association is placed in receivership.
(c) Cash payments or issuance of obligations.- Subject to any other conditions established under law, if the Fund Director is reasonably satisfied that an insurable loss will be incurred upon final liquidation, in order to facilitate the payment of deposit insurance to depositors of a member association and to reasonably reduce the administrative costs of a liquidation, including demands on any hardship withdrawal plan, the Fund may, either upon final liquidation or earlier, and either from available moneys in the Fund or from any other State funds advanced to the Fund for that purpose:
(1) Make a cash payment or payments or issue an obligation under a contract with one or more insured institutions with respect to the making available of insured accounts in an amount equal to all or any portion of the depositors' savings accounts to any or all of the depositors of a member association in receivership;
(2) Make a cash payment or payments, in an amount equal to all or any portion of the depositors' savings accounts, to any or all of the depositors of a member association in receivership; or
(3) Both.
(d) Subrogation.- Upon making a cash payment pursuant to a contract under subsection (c) (1) of this section or directly to a depositor under subsection (c) (2) of this section, or otherwise in satisfaction of its insurance obligation with respect to any depositor, the Fund shall be subrogated to all rights of the depositor, including its rights against the assets of the member association, its shareholders, directors, or officers, to the extent of the payment.
(e) Proof of entitlement of subrogee.- In proving its entitlement as a subrogee in any action, the Fund need only show proof of:
(1) Reimbursement of a savings account holder, in part or in full, under this title; or
(2) The making of payments or a capital contribution or the issuance of its obligations to an entity that assumes savings deposit or share account liabilities of a member association.
[1986, ch. 12, § 2; 1987, ch. 11, § 1.]