TITLE 26

BANKS AND BANKING

CHAPTER 10

CLOSING AND LIQUIDATION OF BANKS

26-1001.  Grounds for closing bank. Whenever it shall appear to the department of finance that:

(1)  Any bank has violated its charter or any law of this state; or

(2)  Has violated any general rule or regulation of the director, made in accordance with law, or any special lawful order, direction or requirement of the director, directed to any particular bank; or

(3)  That the capital of any bank is impaired or for any reason is below the amount required by law and has not been made good after fifteen (15) days’ notice, as provided by law, or without such notice, in the event a majority of the board of directors of such bank notify the director in writing that the same cannot be made good within fifteen (15) days; or

(4)  That such bank cannot meet or has failed to meet any of its liabilities as they become due in the regular course of business; or

(5)  That its reserve has fallen below the amount required by law and it has failed to make good such reserve within fifteen (15) days after being requested to do so by the director, or, without such notice, if a majority of the directors, in writing, notify the director that such reserve cannot be made good within fifteen (15) days, or if it is continually allowing its reserve to fall below the required amount; or

(6)  That it is conducting business in an unsafe and unauthorized manner, or is in an unsafe or unsound condition; or

(7)  It has refused to submit its papers, books and records to the inspection of the director or his authorized agent or representative; or

(8)  That any director or officer of such bank has refused to be examined on oath touching the affairs or business of any bank insofar as such relate to the solvency of the bank or matters having to do with the supervision of the director.

The director himself, or his duly authorized agent upon express authority from the director, may in his discretion, close said bank and take possession of all the books, records, assets and business of every description of such bank, and hold the same and retain possession thereof until such bank shall be authorized by him to resume business,or its operations or liquidation be turned over to the Federal Deposit Insurance Corporation as provided in this chapter, or its affairs be liquidated as herein provided, and he shall do so in cases where a bank comes into his hands voluntarily.

The powers and authority conferred on the director by this section, except in cases of voluntary surrender, shall be considered as discretionary and not as mandatory, and so long as the director acts in good faith in the matter, neither he nor his deputies shall be held liable civilly or criminally or upon their official bonds in any action taken thereunder or for any failure to act thereunder.

History:

[26-1001, added 1979, ch. 41, sec. 2, p. 102.]