New Hampshire Revised Statutes 384-F:43 – Seizure of Foreign Bank’s Property and Business; Liquidation
Current as of: 2023 | Check for updates
|
Other versions
I. If the commissioner finds that any of the factors set forth in N.H. Rev. Stat. § 384-F:41 are true with respect to any foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency and that it is necessary for the protection of the interests of the creditors of such foreign bank‘s business in this state or for the protection of the public interest that he or she take immediate possession of the property and business of the foreign bank, the commissioner may by order forthwith take possession of the property and business of the foreign bank in this state and retain possession until the foreign bank resumes business in this state or is finally liquidated. The foreign bank may, with the consent of the commissioner, resume business in this state upon such conditions as the commissioner may prescribe under rules adopted pursuant to RSA 541-A, or by order.
II. At any time within 10 days after the commissioner has taken possession of the property and business of a foreign bank pursuant to paragraph I, such foreign bank may apply to the court of county in which the primary office of the foreign bank is located in this state for an order requiring the commissioner to show cause why he or she should not be enjoined from continuing such possession. The court may, upon good cause being shown, direct the commissioner to refrain from further proceedings and to surrender such possession. The judgment of the court having jurisdiction over any proceedings under this paragraph may be appealed by the commissioner or by the foreign bank in the manner provided by law for appeals from a judgment of a county court. Where the commissioner appeals the judgment of a county court, such appeal shall operate as a stay of the judgment and a reinstatement of the commissioner’s possession. The commissioner shall not be required to post any bond.
III. Whenever the commissioner takes possession of the property and business of a foreign bank pursuant to paragraph I, he or she shall conserve or liquidate the property and business of such foreign bank pursuant to the laws of this state as if the foreign bank were a New Hampshire state bank, with absolute preference and priority given to the creditors of such foreign bank arising out of transactions with, and recorded on the books of, its New Hampshire state branch or New Hampshire state agency over the creditors of such foreign bank’s offices located outside this state.
IV. When the commissioner has completed the liquidation of the property and business of a foreign bank, the commissioner shall transfer any remaining assets to such foreign bank in accordance with such orders as the court may issue. However, in case the foreign bank has an office in another state of the United States which is in liquidation and the assets of such office appear to be insufficient to pay in full the creditors of that office, the court shall order the commissioner to transfer to the liquidator of that office such amount of any such remaining assets as appears to be necessary to cover such insufficiency; if there are 2 or more such offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to the offices, the court shall order the commissioner to distribute the remaining assets among the liquidators of such offices in such manner as the court finds equitable.
V. As an alternative to the procedures set forth in paragraphs I-IV of this section, the commissioner may follow the procedures for liquidation in RSA 395.
II. At any time within 10 days after the commissioner has taken possession of the property and business of a foreign bank pursuant to paragraph I, such foreign bank may apply to the court of county in which the primary office of the foreign bank is located in this state for an order requiring the commissioner to show cause why he or she should not be enjoined from continuing such possession. The court may, upon good cause being shown, direct the commissioner to refrain from further proceedings and to surrender such possession. The judgment of the court having jurisdiction over any proceedings under this paragraph may be appealed by the commissioner or by the foreign bank in the manner provided by law for appeals from a judgment of a county court. Where the commissioner appeals the judgment of a county court, such appeal shall operate as a stay of the judgment and a reinstatement of the commissioner’s possession. The commissioner shall not be required to post any bond.
Terms Used In New Hampshire Revised Statutes 384-F:43
- Agency: when used in reference to an office of a foreign bank, shall have the same meaning as set forth in section 1(b)(1) of the federal International Banking Act (12 U. See New Hampshire Revised Statutes 384-F:2
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- bank: as used in this chapter shall not in any event include a foreign bank or a branch or agency of a foreign bank. See New Hampshire Revised Statutes 384-F:2
- Branch: when used in reference to an office of a foreign bank, shall have the same meaning as set forth in section 1(b)(3) of the federal International Banking Act (12 U. See New Hampshire Revised Statutes 384-F:2
- Commissioner: means the New Hampshire bank commissioner. See New Hampshire Revised Statutes 384-F:2
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Foreign bank: means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, that engages directly in the business of banking. See New Hampshire Revised Statutes 384-F:2
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- New Hampshire state agency: when used in reference to an office of a foreign bank, shall mean an agency of a foreign bank that is located in this state and licensed pursuant to the provisions of this chapter. See New Hampshire Revised Statutes 384-F:2
- New Hampshire state bank: means a bank organized under the laws of New Hampshire. See New Hampshire Revised Statutes 384-F:2
- New Hampshire state branch: when used in reference to an office of a foreign bank, shall mean a branch of a foreign bank that is located in this state and licensed pursuant to the provisions of this chapter. See New Hampshire Revised Statutes 384-F:2
- State: has the same meaning as is set forth in section 3(a)(3) of the Federal Deposit Insurance Act (12 U. See New Hampshire Revised Statutes 384-F:2
- United States: when used in a geographical sense, means the several states, the District of Columbia, Puerto Rico, Guam, American Samoa, the American Virgin Islands, the Trust Territory of the Pacific Islands, and any other territory of the United States; and, when used in a political sense, means the federal government of the United States. See New Hampshire Revised Statutes 384-F:2
III. Whenever the commissioner takes possession of the property and business of a foreign bank pursuant to paragraph I, he or she shall conserve or liquidate the property and business of such foreign bank pursuant to the laws of this state as if the foreign bank were a New Hampshire state bank, with absolute preference and priority given to the creditors of such foreign bank arising out of transactions with, and recorded on the books of, its New Hampshire state branch or New Hampshire state agency over the creditors of such foreign bank’s offices located outside this state.
IV. When the commissioner has completed the liquidation of the property and business of a foreign bank, the commissioner shall transfer any remaining assets to such foreign bank in accordance with such orders as the court may issue. However, in case the foreign bank has an office in another state of the United States which is in liquidation and the assets of such office appear to be insufficient to pay in full the creditors of that office, the court shall order the commissioner to transfer to the liquidator of that office such amount of any such remaining assets as appears to be necessary to cover such insufficiency; if there are 2 or more such offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to the offices, the court shall order the commissioner to distribute the remaining assets among the liquidators of such offices in such manner as the court finds equitable.
V. As an alternative to the procedures set forth in paragraphs I-IV of this section, the commissioner may follow the procedures for liquidation in RSA 395.