Louisiana Revised Statutes 6:872 – Involuntary dissolution; generally
Terms Used In Louisiana Revised Statutes 6:872
- Association: means a savings association, thrift institution, homestead, building and loan association, savings and loan association, or society, including both capital stock and mutual associations. See Louisiana Revised Statutes 6:703
- Commissioner: means the commissioner of financial institutions, of the state of Louisiana, in his capacity as supervisor of associations. See Louisiana Revised Statutes 6:703
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Enrolled bill: The final copy of a bill or joint resolution which has passed both chambers in identical form. It is printed on parchment paper, signed by appropriate officials, and submitted to the President/Governor for signature.
- Impaired condition: means a condition in which the assets of an association in the aggregate do not have a fair value equal to the aggregate amount of liabilities of the association. See Louisiana Revised Statutes 6:703
A.(1) Whenever it appears:
(a) That any association has violated its charter;
(b) That its officers or directors have violated any law regulating the operation of such institutions;
(c) That the association is in an impaired condition;
(d) That the institution has been unable for any period of twelve months to meet in full the demands made upon it for withdrawals or has been unable for a like period to earn reasonable profits;
(2) Whenever the commissioner has reason to conclude:
(a) That any such association is in an unsound or unsafe condition to transact the business for which it was organized, or
(b) That it is unsafe or inexpedient for it to continue its business,
the commissioner may at once close the association and take possession until final liquidation or other disposition of its affairs, as provided for in this Chapter.
B. Moreover, in all cases where any association is in such condition that it is subject to being taken over for liquidation by the commissioner, and the members or stockholders vote to dissolve the corporation, it shall be taken over for liquidation by the commissioner. In that case, the action of the members or stockholders voting dissolution is sufficient authority for the commissioner to close the association at once and take possession of its books, property, and affairs, and retain possession until its affairs are finally liquidated.
C. However, as long as any of the accounts of the association remain insured as provided in La. Rev. Stat. 6:731(F), the commissioner may not take over for liquidating the association on the ground that it has been unable for any period of twelve months to meet in full the demands made upon it for withdrawals or has been unable for a like period to earn reasonable profits. In addition, no association shall be liquidated involuntarily and none of its property shall be seized when it is not in an impaired condition and the alleged wrongdoing can be otherwise corrected as provided in this Chapter or as* otherwise as provided by law.
Acts 1970, No. 234, §1. Acts 1983, No. 675, §1.
*SO IN ENROLLED BILL.