Kentucky Statutes 286.3-872 – Order of payment of claims
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(1) All claims against the bank’s estate, approved by a court of competent jurisdiction, shall be paid in the following order:
(a) The actual and necessary administration expenses of the liquidation; (b) Claims given priority under other provisions of state or federal law; (c) General liabilities;
(d) Debt subordinated to the claims of depositors and general creditors; and
(e) Equity capital securities.
(2) No interest on any claim shall be paid until all claimants within the above-named classes have received the full principal amount of their claims.
(3) All accepted or approved claims within the same class shall be paid pro rata and without preference. Each secured creditor shall be entitled to prove for, and receive dividends upon, his claim to the extent that such claim exceeds the value of the property securing it.
Effective: July 13, 1984
History: Created 1984 Ky. Acts ch. 324, sec. 52, effective July 13, 1984.
Formerly codified as KRS § 287.872.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286.
(a) The actual and necessary administration expenses of the liquidation; (b) Claims given priority under other provisions of state or federal law; (c) General liabilities;
Terms Used In Kentucky Statutes 286.3-872
- Dividends: means a distribution of money, stock, or other property to shareholders of a corporation. See Kentucky Statutes 286.3-010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- 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.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
(d) Debt subordinated to the claims of depositors and general creditors; and
(e) Equity capital securities.
(2) No interest on any claim shall be paid until all claimants within the above-named classes have received the full principal amount of their claims.
(3) All accepted or approved claims within the same class shall be paid pro rata and without preference. Each secured creditor shall be entitled to prove for, and receive dividends upon, his claim to the extent that such claim exceeds the value of the property securing it.
Effective: July 13, 1984
History: Created 1984 Ky. Acts ch. 324, sec. 52, effective July 13, 1984.
Formerly codified as KRS § 287.872.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286.