§ 19-12-8 - Priority of claims – Federally insured financial institutions or credit unions.
SECTION 19-12-8
§ 19-12-8 Priority of claims –Federally insured financial institutions or credit unions. – In a receivership, or a conservatorship under chapter 11 of this title, of afinancial institution or credit union whose deposits are insured by the federaldeposit insurance corporation, the national credit union administration or anyother agency or instrumentality of the United States, the allowed expenses andclaims against the financial institution or credit union shall have priority inreceiving distributions, out of the assets of the financial institution orcredit union in the following order:
(1) The payment of costs and expenses of the administrationof the receivership estate.
(2) The payment of claims for "deposits", as that term isdefined in 12 U.S.C. § 1813(I), including, but not limited to, the claimsof depositors in a mutual savings bank for return of their deposits.
(3) Unsecured claims of any local, state, or federal taxingauthority entitled by law to priority in distribution from the receivership orconservatorship estate, to the extent of such priority.
(4) Claims of salaried employees of the financial institutionor credit union for wages or salaries earned but unpaid as of the commencementof the receivership or conservatorship.
(5) Claims for all other general liabilities not specifiedherein.
(6) Claims otherwise proper that were not filed within theprescribed time.
(7) Claims for obligations expressly subordinated to depositsand general liability claims.
Any funds remaining shall be paid to the stockholders of thefinancial institution or credit union, or, in the case of a mutual financialinstitution in which there are no stockholders, to the depositors in proportionto the respective amounts of their stock or deposits.
Interest shall be given the same priority as the claim onwhich it is based, but no interest shall be paid on any claim until theprincipal of all claims within the same class has been paid or adequatelyprovided for in full.