§ 19-12-9 - Payment of certain priority claims.
SECTION 19-12-9
§ 19-12-9 Payment of certain priorityclaims. – (a) In receivership proceedings under this chapter, distributions on account ofpriority claims described in § 19-12-7(a)(1), (a)(2), (a)(3) and/or (a)(4)shall be made to the persons or entities entitled to them as soon as sufficientfunds are available to the receiver, subject, however, to § 19-12-7(b).The holders of claims entitled to priority under § 19-12-7(a)(2), (a)(3)and/or (a)(4) are relieved of the necessity of filing claims with the receiver.
(b) On the recommendation of the receiver, the court mayapprove a sale or other transfer of all or any part of the assets of thefinancial institution or credit union for consideration sufficient to pay infull or in part the liabilities of the financial institution or credit unionwhich are entitled to priority in distribution pursuant to § 19-12-7(a).The consideration for the transfer, whether in the form of immediate funds orthe issuance of deferred obligations, as shall be distributed in accordancewith § 19-12-7 in any manner and at any time or times as shall berecommended by the receiver, in a distribution plan as provided in the order ofthe court approving the transfer.
(2) If the transferee which assumes deposit liabilities of afinancial institution or credit union entitled to priority under §19-12-7(a)(3) and/or (a)(4) in a transfer so approved is a financialinstitution or credit union authorized by law to receive deposits and itsdeposits, including the assumed deposits of the financial institution or creditunion, are protected by federal deposit insurance, the court, on therecommendation of the receiver, may approve the transfer of assets andassumption of liabilities, in which case the priority claims of depositorswhose claims were so assumed will be deemed to have been adequately providedfor and the priority granted the claims satisfied. If the transferee is anentity, including any corporate entity specially chartered by the Rhode Islandgeneral assembly to acquire assets or assume any deposit liabilities of thefinancial institution or credit union in receivership under this chapter, thatassumes all or part of the deposit liabilities of a financial institution orcredit union not as deposits in an operating depository institution, but asliabilities to be paid out of the assets acquired, the court, based on therecommendation of the receiver and the best interests of the depositors whosepriority claims are to be paid or assumed by the transferee, may approve thetransfer and the transferee's plan of distribution, including provisionstherein that would be authorized under § 19-12-7(b), in which case theclaims entitled to priority pursuant to § 19-12-7(a)(3) and/or (a)(4)shall be deemed to have been provided for and satisfied to the extent they havebeen assumed by the transferee.
(c) A transferee who assumes or pays any claim entitled topriority pursuant to § 19-12-7(a)(2), (a)(3) and/or (a)(4) pursuant to anorder entered by the court under subsection (b) shall be subrogated to theclaim and priority position of the employees and depositors whose claims havebeen so assumed or paid.