Sec. 36a-219. (Formerly Sec. 36-32). Restraining order. Appointment of conservator. (a) Whenever, in the opinion of the commissioner or the governing board, or
in the case of a Connecticut credit union service organization the commissioner or the
governing board, managers or general partners, it may be necessary to preserve assets
or protect depositors, share account holders or clients, the commissioner may issue a
temporary order restraining any Connecticut bank, out-of-state bank that maintains in
this state a branch, as defined in section 36a-410, to the extent of its operations in this
state, Connecticut credit union or out-of-state credit union that maintains in this state a
branch, as defined in section 36a-435b, to the extent of its operations in this state, or
Connecticut credit union service organization from paying out any funds or receiving
moneys for deposit, for certificates of indebtedness or for payment on accounts, or, in
the case of a Connecticut bank, Connecticut credit union or Connecticut credit union
service organization, appoint a conservator, until a hearing before the superior court of
the judicial district of Hartford. The court may, upon application of the commissioner
or upon application of the governing board of any such Connecticut bank, out-of-state
bank, Connecticut credit union or out-of-state credit union, or the governing board,
managers or general partners of any such Connecticut credit union service organization,
issue an order restraining any such bank, credit union or credit union service organization
from declaring or paying any dividends or from paying out any funds of such bank,
credit union or credit union service organization for such time as the court deems necessary. Such order shall be in writing directed to such bank, credit union or credit union
service organization and a copy of the order attested and hand-delivered by the commissioner to the president, chief executive officer, secretary, or treasurer of any such bank
or credit union, or in the case of a Connecticut credit union service organization, to the
president, chief executive officer, secretary, treasurer, a manager or general partner of
any such credit union service organization, or in the case of an out-of-state bank, or out-of-state credit union, to its agent, shall be sufficient notice thereof. Before issuing such
restraining order, the court shall cause reasonable notice to be given to such bank, credit
union or credit union service organization. Notice to the president, chief executive officer, secretary, treasurer or agent of any such bank or credit union, an agent of any
such out-of-state bank or out-of-state credit union, or president, chief executive officer,
secretary, treasurer, manager or general partner of any such credit union service organization shall be notice to such bank, credit union or credit union service organization.
Notice may be waived by any such president, chief executive officer, treasurer, secretary,
manager, general partner or agent.
(b) Before the governing board of any such Connecticut bank, out-of-state bank,
Connecticut credit union or out-of-state credit union, or the governing board, managers
or general partners of any such Connecticut credit union service organization applies
to the court for such restraining order, notice shall be given in writing to the commissioner of its intention to so apply at least ten days before such application is made. If,
in the opinion of the commissioner or such governing board, managers or general partners, such order should be revoked or modified, the court may, on application of the
commissioner or such governing board, managers or general partners, revoke or modify
the original order, and notice of such revocation or modification shall be given to the
bank, credit union or credit union service organization affected thereby in the same
manner as in the case of the original order.
(1949 Rev., S. 5757; P.A. 78-121, S. 22, 113; P.A. 88-65, S. 17; 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S.
4, 7, 8; P.A. 94-122, S. 94, 340; P.A. 95-155, S. 18, 29; 95-220, S. 4-6; P.A. 02-73, S. 10; P.A. 04-136, S. 12.)
History: P.A. 78-121 removed private bankers and building associations from purview of section; P.A. 88-65 narrowed
the application of the section by deleting a reference to industrial banks; P.A. 94-122 allowed the commissioner to appoint
a temporary conservator for a failing bank, effective January 1, 1995 (Revisor's note: P.A. 88-230, P.A. 90-98 and P.A.
93-142 authorized substitution of "judicial district of Hartford" for "judicial district of Hartford-New Britain" in public
and special acts of the 1994 regular and special sessions, effective September 1, 1996); Sec. 36-32 transferred to Sec. 36a-219 in 1995; P.A. 95-155 added references to out-of-state banks and amended Subsec. (a) by restricting the appointment of
conservators to Connecticut banks and by adding "secretary" re the order requirement and "agent" re the notice requirement,
effective June 27, 1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1,
1998, effective July 1, 1995; P.A. 02-73 amended Subsecs. (a) and (b) by adding provisions making section applicable to
Connecticut credit unions, out-of-state credit unions maintaining a branch in this state and Connecticut credit union service
organizations, and making technical and conforming changes; P.A. 04-136 amended Subsec. (a) to insert reference to
"clients", effective May 12, 2004.
Annotations to former section 36-32:
Effect of restraining orders. 113 C. 671; 115 C. 324; id., 371; 117 C. 278.
Sec. 36a-220. (Formerly Sec. 36-34). Application for injunction, receiver or
conservator in case of forfeited charter or certificate of authority, fraud, unsafe
business practices, dissipation of assets, insolvency or termination of insurance of
insurable accounts or deposits. (a) If it appears to the commissioner that (1) the charter
of any Connecticut bank or out-of-state bank that maintains in this state a branch, as
defined in section 36a-410, or the certificate of authority of any Connecticut credit union
or out-of-state credit union that maintains in this state a branch, as defined in section
36a-435b, is forfeited, (2) the public is in danger of being defrauded by such bank or
credit union, it is unsafe or unsound for such bank or credit union to continue business
or its assets are being dissipated, (3) such bank or credit union is insolvent, is in danger
of imminent insolvency or that its capital is not adequate to support the level of risk, or
(4) the Federal Deposit Insurance Corporation, National Credit Union Administration
or their successor agencies have terminated insurance of the insurable accounts or deposits of such bank, unless such Connecticut bank has filed an application with the commissioner to convert to an uninsured bank pursuant to section 36a-139b, or credit union,
the commissioner shall apply to the superior court for the judicial district of Hartford
or the judicial district in which the main office of such bank or credit union is located
for an injunction restraining such bank or credit union from conducting business or, in
the case of a Connecticut bank or Connecticut credit union, for the appointment of a
conservator or for a receiver to wind up its affairs.
(b) The court may take one or more of the following actions: (1) Grant such injunction or appoint such receiver, or both, (2) appoint such conservator, or (3) in the case
of a Connecticut bank or Connecticut credit union, declare the charter of such bank or
certificate of authority of such credit union to be null and void after reasonable notice
to such bank or credit union. Nothing in this section shall be construed as affecting any
provision of sections 36a-218 and 36a-219.
(1949 Rev., S. 5759; P.A. 78-280, S. 2, 127; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 91-357, S. 7, 78; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 95, 340; P.A. 95-155, S. 19, 29; 95-220, S. 4-6; P.A. 02-47, S. 14; 02-73, S. 11; P.A. 04-136, S. 13.)
History: P.A. 78-280 substituted "judicial district" for "county"; P.A. 91-357 deleted obsolete language re judge of the
superior court; P.A. 94-122 allowed the commissioner to apply to either the superior court in Hartford-New Britain or
where a bank's main office is located for appointment of a permanent conservator and added as grounds for the appointment
of a conservator or receiver a forfeited bank charter or terminated FDIC insurance, effective January 1, 1995 (Revisor's
note: P.A. 88-230, P.A. 90-98 and P.A. 93-142 authorized substitution of "judicial district of Hartford" for "judicial district
of Hartford-New Britain" in public and special acts of the 1994 regular and special sessions, effective September 1, 1996);
Sec. 36-34 transferred to Sec. 36a-220 in 1995; P.A. 95-155 added references to certain out-of-state banks, restricted to
Connecticut banks the applications for appointment of a conservator in Subsec. (a), restricted the null-and-void provision
in Subsec. (b) to Connecticut banks, and made technical changes in Subsec. (a), effective June 27, 1995; P.A. 95-220
changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 02-47 amended Subsec. (a)(4) by adding provision re Connecticut bank that has filed an application to convert to an uninsured
bank; P.A. 02-73 amended Subsecs. (a) and (b) by adding provisions making section applicable to Connecticut credit
unions and out-of-state credit unions maintaining a branch in this state; P.A. 04-136 amended Subsec. (a)(3) to insert
provision re bank or credit union in danger of imminent insolvency or having inadequate capital to support the level of
risk, effective May 12, 2004.
Annotation to former section 36-34:
Cited. 115 C. 534.
Sec. 36a-221. (Formerly Sec. 36-35). Appointment of receiver or conservator
on petition of shareholders. A receiver or conservator for any capital stock Connecticut
bank whose capital is impaired may be appointed by the superior court for the judicial
district of Hartford or the judicial district in which the main office of such bank is located,
on the petition of the holders of a majority of the shares of its capital stock, if the court
finds that the interests of the shareholders so require.
(1949 Rev., S. 5760; P.A. 78-280, S. 2, 127; P.A. 88-65, S. 19; 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 91-357, S.
8, 78; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 96, 340; P.A. 95-220, S. 4-6.)
History: P.A. 78-280 substituted "judicial district" for "county"; P.A. 88-65 deleted a reference to industrial banks;
P.A. 91-357 made technical changes; P.A. 94-122 authorized courts to appoint receivers and conservators for all capital
stock Connecticut banks with impaired capital on the petition of a majority of stockholders and allowed such appointment
to be made by the Hartford-New Britain superior court, effective January 1, 1995 (Revisor's note: P.A. 88-230, P.A. 90-98 and P.A. 93-142 authorized substitution of "judicial district of Hartford" for "judicial district of Hartford-New Britain"
in public and special acts of the 1994 regular and special sessions, effective September 1, 1996); Sec. 36-35 transferred
to Sec. 36a-221 in 1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1,
1998, effective July 1, 1995.
Annotations to former section 36-35:
Appointment of receiver of national banking association by state court. 76 C. 252; 204 U.S. 1. National bank may be
sued in state court even after appointment of receiver. 14 Wall. 383. Cited. 115 C. 534; 116 C. 629. See note to Sec. 33-383.
Sec. 36a-221a. Duties of receivers of trust banks and uninsured banks. (a)(1)
The receiver of a trust bank or uninsured bank shall, as soon after the receiver's appointment as is practicable, terminate all fiduciary positions the bank holds, surrender all
property held by the bank as a fiduciary and settle the fiduciary accounts. With the
approval of the Superior Court, the receiver of a trust bank or uninsured bank shall
release all segregated and identifiable fiduciary property held by the bank to one or
more successor fiduciaries, and may sell one or more fiduciary accounts to one or more
successor fiduciaries on terms that appear to be in the best interest of the bank's estate
and the persons interested in the property or fiduciary accounts.
(2) Upon the sale or transfer of fiduciary property or a fiduciary account, the successor fiduciary shall be automatically substituted without further action and without any
order of any court. Prior to the effective date of substitution of the successor fiduciary,
the receiver shall mail notice of such substitution to each person to whom such bank
provides periodic reports of fiduciary activity. The notice shall include: (A) The name
of such bank, (B) the name of the successor fiduciary, and (C) the effective date of the
substitution of the successor fiduciary. The provisions of section 45a-245a shall not
apply to the substitution of a fiduciary under this section.
(b) A successor fiduciary shall have all of the rights, powers, duties and obligations
of such bank and shall be deemed to be named, nominated or appointed as fiduciary in
any will, trust, court order or similar written document or instrument that names, nominates or appoints such bank as fiduciary, whether executed before or after the successor
fiduciary is substituted, provided the successor fiduciary shall have no obligations or
liabilities under this section for any acts, actions, inactions or events occurring prior to
the effective date of the substitution.
(c) If commingled fiduciary money held by the trust bank or uninsured bank as
trustee is insufficient to satisfy all fiduciary claims to the commingled money, the receiver shall distribute such money pro rata to all fiduciary claimants of such money
based on their proportionate interest.
(d) For the purpose of this section, "successor fiduciary" has the meaning given to
that term in section 45a-245a.
(P.A. 04-136, S. 29.)
History: P.A. 04-136 effective May 12, 2004.
Sec. 36a-222. Appointment of receiver or conservator for Connecticut banks
and credit unions. Requirements. Division within department for liquidating or
administering banks or credit unions. Appointment of agent. Reports. Salaries,
costs and expenses. Exclusive jurisdiction of Superior Court. Admissibility of records. (a) In all cases in which the appointment of a receiver or conservator for any
Connecticut bank or Connecticut credit union is sought, if it is found that a receiver
or conservator should be appointed, the Superior Court shall appoint as a receiver or
conservator the commissioner or, if requested by the commissioner, the Federal Deposit
Insurance Corporation or the National Credit Union Administration, or their successor
agencies or, if such agencies cannot act as receiver or conservator, an independent receiver or conservator. If the commissioner, the Federal Deposit Insurance Corporation
or the National Credit Union Administration, or their successor agencies, accepts the
appointment as receiver or conservator, no bond shall be required to be posted. If an
independent person accepts the appointment as receiver or conservator, the court shall
require such person to post a suitable bond. The Superior Court may appoint the receiver
or conservator on an ex parte basis upon a sufficient affidavit of the commissioner or
the commissioner's authorized representative indicating reasonable likelihood that an
unsafe or unsound condition exists which is likely to have an adverse effect upon depositors, share account holders, clients or creditors. If an independent receiver or conservator
is appointed, the commissioner shall be a party to the receivership proceeding or conservatorship with standing to initiate or contest any motion, and the views of the commissioner shall be entitled to deference unless they are inconsistent with the plain meaning
of sections 36a-215 to 36a-239, inclusive.
(b) The commissioner may organize a separate division within the Department of
Banking for liquidating or administering the affairs of the banks or credit unions for
which the commissioner is acting as receiver or conservator, and the commissioner
may appoint such employees and retain such consultants as the commissioner deems
necessary for the liquidation or administration of the affairs of such banks or credit
unions. The commissioner may appoint an agent, who shall be an employee of the
Department of Banking and who, in the absence or incapacity of the commissioner and
of the commissioner's deputy, shall have authority to act for or represent the commissioner in all matters pertaining to the duties of the commissioner as the receiver or
conservator of any Connecticut bank or Connecticut credit union. Such agent may execute and sign for the commissioner as the receiver or conservator any documents, instruments or reports necessary in the administration of the receivership or conservatorship.
All legal services required by the commissioner as receiver or conservator or the commissioner's deputy, agent or employees in connection with such receivership proceedings or the administration or reorganization of any such Connecticut bank or Connecticut
credit union shall be performed by the Attorney General. The commissioner shall keep
on file in the commissioner's office an executed copy of each report required to be filed
by the commissioner as receiver or conservator with the clerk of the Superior Court and
shall include a report of each bank or credit union for which the commissioner is acting
as receiver or conservator in the commissioner's annual report to the Governor.
(c) (1) If the commissioner is appointed receiver or conservator, any salaries and
expenses incurred in the liquidation, reorganization or administration of the bank or
credit union shall be paid out of the funds of the bank or credit union, subject to the
approval of the Superior Court. The state shall be reimbursed for any costs or expenses
incurred by the Department of Banking in the liquidation, reorganization or administration of the receivership or conservatorship, and the commissioner may collect from
each such estate in receivership or conservatorship such costs and expenses as, in the
commissioner's opinion, are fair and equitable. Any such costs or expenses so collected
shall be deposited with the State Treasurer and shall be credited to the State Banking
Fund. Any salaries and expenses for legal services provided by the Attorney General
shall be paid out of the funds of the estate in receivership or conservatorship with the
approval of the court. Such salaries and expenses shall be allocated by the commissioner
as nearly as possible to the estate in receivership or conservatorship for which the services were rendered, and the funds in payment of the same shall be deposited with the
State Treasurer and shall be credited to the appropriation for the Attorney General.
(2) If an independent person is appointed receiver or conservator, the cost and expenses incurred in the liquidation, reorganization or administration of the bank or credit
union, including any funds paid by the commissioner to the receiver or conservator prior
to the bank or credit union being placed in receivership or conservatorship, shall be paid
out of the funds of the bank or credit union, subject to the approval of the court.
(d) Upon the appointment of a receiver pursuant to subsection (a) of this section,
possession of and title to all assets, business and property of the Connecticut bank or
Connecticut credit union shall pass to and vest in the receiver without the execution of
any instruments of conveyance, assignment, transfer or endorsement.
(e) (1) Except as otherwise provided by this subdivision, the superior court in which
a receivership proceeding against a Connecticut bank or Connecticut credit union is
pending has exclusive jurisdiction to hear and determine all actions or proceedings
instituted by or against the bank, credit union or receiver after the receivership proceeding begins. The receiver may file in any jurisdiction an ancillary suit to obtain jurisdiction
or venue over a person or property.
(2) A record of a Connecticut bank or Connecticut credit union obtained by the
receiver and held in the course of the receivership proceeding or a certified copy of the
record under the official seal of the receiver is admissible as evidence in all cases without
proof of correctness or other proof, except the certificate of the receiver that the record
was received from the custody of the bank or credit union or found among its effects.
The receiver may certify the correctness of such record and a record of the receiver's
office, and may certify any fact contained in the record. The record is admissible as
evidence in all cases in which the original would be evidence. The original record or a
certified copy of the record is prima facie evidence of the facts it contains.
(f) (1) A judgment or order of a court of this state or of another jurisdiction in an
action pending by or against a Connecticut bank or Connecticut credit union, rendered
after the date such bank or credit union was placed in receivership, is not binding on
the receiver unless the receiver was made a party to the suit.
(2) Before the first anniversary of the date the Connecticut bank or Connecticut
credit union was placed in receivership, the receiver may not be required to plead to
any suit pending against such bank or credit union in a court in this state on the date
such bank or credit union was placed in receivership and in which the receiver is a proper
plaintiff or defendant.
(P.A. 94-122, S. 97, 340; P.A. 02-73, S. 12; P.A. 04-136, S. 14.)
History: P.A. 94-122 effective January 1, 1995; P.A. 02-73 amended Subsecs. (a) and (b) by adding provisions making
section applicable to Connecticut credit unions; P.A. 04-136 replaced former Subsecs. (a) and (b) with new Subsec. (a) re
appointment of a receiver or conservator for any Connecticut bank or Connecticut credit union and requirements re such
appointment, new Subsec. (b) authorizing commissioner to organize separate division within department for liquidating
or administering affairs of banks or credit unions for which commissioner is acting as receiver or conservator, re appointment
and powers of agent, and concerning reports, new Subsec. (c) requiring salaries and expenses incurred in liquidation,
reorganization or administration of bank or credit union to be paid out of funds of bank or credit union, subject to court
approval, and re reimbursement of state for any costs or expenses incurred by department concerning receivership or
conservatorship, new Subsec. (d) requiring possession of and title to all assets, business and property of bank or credit
union to pass to and vest in receiver without execution of any instruments upon appointment of a receiver, new Subsec.
(e) re exclusive jurisdiction of Superior Court and admissibility of records, and new Subsec. (f) re judgments or orders of
court, effective May 12, 2004.
Sec. 36a-223. (Formerly Sec. 36-36). Duties of conservators and receivers for
Connecticut banks and credit unions. Powers. (a) The duty of the conservator shall
be to carry on the business of the Connecticut bank or Connecticut credit union, to
preserve and conserve the assets and property of the bank or credit union, and to put
such bank or credit union in a safe and sound condition.
(b) The duty of the receiver shall be to place the Connecticut bank or Connecticut
credit union in liquidation and proceed to realize upon the assets of such bank or credit
union, having due regard for the conditions of credit in the locality of such bank or credit
union.
(c) A receiver or conservator appointed pursuant to subsection (a) of section 36a-222 shall have the following powers: (1) To take possession of the books, records and
assets of every description of the Connecticut bank or Connecticut credit union and
collect all debts due and claims belonging to it; (2) to sue and defend all rights and
claims involving the bank or credit union; (3) to exercise any and all fiduciary functions
of the bank or credit union as of the date of the commencement of the receivership or
conservatorship; (4) to borrow such sums of money as may be necessary or desirable
in the performance of the duties of the receiver or conservator, and in connection therewith, to secure such borrowings by the pledge, hypothecation or mortgage of the assets
of the bank or credit union; (5) subject to the approval of the appointing court, unless
such approval is not required under subsection (d) of this section, to sell or otherwise
dispose of any and all real and personal property of the bank or credit union; sell, assign,
compromise, or otherwise dispose of all bad or doubtful debts; and compromise all
doubtful claims for or against the bank or credit union; (6) to exercise all of the power
and authority of the corporators, shareholders, directors, trustees, officers, depositors,
share account holders and clients of such bank or credit union in carrying out the duty
of the receiver or conservator; (7) to exercise such other powers and duties as may be
reasonably necessary or desirable to effectively and efficiently perform the functions
of receiver or conservator in accordance with federal and state banking and credit union
laws and regulations.
(d) Notwithstanding the provisions of subsection (c) of this section, in all cases in
which the commissioner is appointed receiver or conservator, the commissioner, without
the approval of the appointing court, may, upon such terms as the commissioner deems
in the best interest of the Connecticut bank or Connecticut credit union: (1) Sell, assign,
compromise or otherwise dispose of any bad or doubtful debt held by the bank or credit
union, the value of which does not exceed fifty thousand dollars; (2) compromise any
claim, other than a deposit claim, against the bank or credit union when the amount
proposed to be paid in compromise does not exceed fifty thousand dollars, provided no
claim in favor of the bank or credit union against any director, trustee or other officer
for breach or neglect of official duty shall be compromised without the approval of the
court; and (3) sell or otherwise dispose of any personal property of the bank or credit
union the value of which does not exceed fifty thousand dollars. For purposes of this
subsection, the value of any bad or doubtful debt shall be its current value, as determined
by the commissioner in good faith, and the value of any personal property shall be (A)
in the case of any single class of a security or any commodity, or other property or claim
that has a readily ascertainable market value, such market value, and (B) in any other
case, its current value as determined by the commissioner in good faith.
(1949 Rev., S. 5761; P.A. 76-2, S. 1, 5; P.A. 77-614, S. 161, 610; P.A. 78-121, S. 24, 113; P.A. 80-482, S. 244, 345,
348; P.A. 87-9, S. 2, 3; P.A. 88-65, S. 20; P.A. 91-357, S. 9, 78; P.A. 94-122, S. 98, 340; P.A. 02-73, S. 13; P.A. 03-153,
S. 1; P.A. 04-136, S. 15.)
History: P.A. 76-2 added provisions re appointment of FDIC or FSLIC as receiver, made appointment of employee of
commissioner's office as agent in receivership or liquidation proceedings optional rather than mandatory and allowed
appointment of other appropriate person as agent, substituted state banking fund for "appropriation for the bank commissioner", specified that FDIC and FSLIC need not post bond and added Subsecs. (b) and (c) re receiver's powers and duties;
P.A. 77-614 replaced bank commissioner with banking commissioner and made banking department a division within the
department of business regulation, effective January 1, 1979; P.A. 78-121 removed private bankers and building associations from purview of section; P.A. 80-482 restored banking division as independent department and abolished the department of business regulation; (Revisor's note: Pursuant to P.A. 87-9 banking commissioner and department were changed
to commissioner and department of banking); P.A. 88-65 deleted references to industrial banks; P.A. 91-357 deleted
references to the Federal Savings and Loan Insurance Corporation from Subsec. (a), added references to the Resolution
Trust Corporation to Subsec. (a) and deleted obsolete language re judge of the superior court from Subsec. (a); P.A. 94-122 made technical procedural changes to reflect the authorization of conservatorships, effective January 1, 1995; Sec.
36-36 transferred to Sec. 36a-223 in 1995; P.A. 02-73 amended Subsecs. (a), (b) and (c) by adding provisions making
section applicable to Connecticut credit unions and share account holders, replacing references to the Resolution Trust
Corporation with references to the National Credit Union Administration and making conforming changes; P.A. 03-153
amended Subsec. (a) by rephrasing provisions re appointment of commissioner, Federal Deposit Insurance Corporation
and National Credit Union Administration as receiver or conservator and providing for appointment of another competent
person if extraordinary circumstances exist, amended Subsec. (c)(5) by providing exception when approval not required
under Subsec. (d) and giving receiver or conservator power to sell, assign or otherwise dispose of bad or doubtful debts
and to compromise all doubtful claims for or against bank or credit union, and added Subsec. (d) re powers of commissioner,
as receiver or conservator, which are not subject to approval of appointing court, effective June 26, 2003; P.A. 04-136
replaced former Subsecs. (a) and (b) with new Subsecs. (a) and (b) specifying the duties of the conservator and the receiver
of a Connecticut bank or Connecticut credit union, amended Subsec. (c) to insert reference to "clients" in Subdiv. (6) and
to replace "subsection (a) of this section" with "subsection (a) of section 36a-222", and amended Subsec. (d) to make a
technical change, effective May 12, 2004.
Annotation to former section 36-36:
Former provision relating to special assistants to attorney general construed. 133 C. 334.
Sec. 36a-224. (Formerly Sec. 36-37). Refinancing or reorganization of Connecticut banks and credit unions in receivership. Upon recommendation of the receiver and with the approval of the court having jurisdiction, any Connecticut bank or
Connecticut credit union placed in receivership may be reopened and may resume business and such receiver, upon the application of any depositor, shareholder, share account
holder, client or creditor thereof, shall present to the court having jurisdiction, for the
court's approval, any plan of refinancing or reorganization which has been submitted
to the receiver by such depositor, share account holder, client, shareholder or creditor.
Any authorized committee of shareholders, share account holders, depositors or clients
may, with the approval of the superior court having jurisdiction, examine the records
of such bank or credit union for which they appear, in the possession of the receiver,
for the purpose of preparing a plan of refinancing or reorganization of such bank or
credit union. After submitting such proposed plan to the court having jurisdiction, the
receiver shall be subject to such orders as are made by the court respecting such plan.
(1949 Rev., S. 5762; P.A. 78-121, S. 25, 113; P.A. 88-65, S. 21; P.A. 91-357, S. 10, 78; P.A. 94-122, S. 99, 340; P.A.
02-73, S. 14; P.A. 04-136, S. 16.)
History: P.A. 78-121 removed building associations from purview of section; P.A. 88-65 deleted a reference to industrial
banks; P.A. 91-357 deleted obsolete language re judge of the superior court; P.A. 94-122 made technical changes, effective
January 1, 1995; Sec. 36-37 transferred to Sec. 36a-224 in 1995; P.A. 02-73 added provisions making section applicable
to Connecticut credit unions and share account holders; P.A. 04-136 inserted references to "client" or "clients", eliminated
reference to commissioner as the receiver and substituted "receiver" for "commissioner", effective May 12, 2004.
Sec. 36a-225. (Formerly Sec. 36-38). Limitation of time for presenting claims
to receiver. Receiver to publish notice in newspaper and mail individual notice to
depositors, clients, creditors and safe deposit box holders. (a) The Superior Court,
upon appointing a receiver of any Connecticut bank, other than a trust bank or an uninsured bank, or Connecticut credit union, shall limit the time within which all claims
against the bank or credit union may be presented to the receiver, and the court may,
upon cause shown, extend such time and shall cause such public notice of such limitation
or extension of time to be given as it deems reasonable and just. All claims not presented
to the receiver within the period limited shall be forever barred, except that any claim
for a deposit or share account, as shown by the depositor's or share account holder's
passbook, certificate of deposit, statement or other evidence of deposit or the records
of such bank or credit union, shall be allowed by the receiver.
(b) (1) As soon as reasonably practicable after appointment of a receiver of a trust
bank or an uninsured bank, the receiver shall publish notice, in a newspaper of general
circulation in each town in which an office of such bank is located, stating that: (A)
The bank has been placed in receivership; (B) the depositors, clients and creditors are
required to present their claims for payment on or before a specific date and at a specified
place; and (C) all safe deposit box holders and bailors of property left with the bank are
required to remove their property no later than a specified date. The dates that the receiver
selects may not be earlier than the one hundred twenty-first day after the date of the
notice, and shall allow: (i) The affairs of the bank to be wound up as quickly as feasible;
and (ii) depositors, clients, creditors, safe deposit box holders and bailors of property
adequate time for presentation of claims, withdrawal of accounts, and redemption of
property. The receiver may adjust the dates with the approval of the court and with or
without republication of notice if the receiver determines that additional time is needed
for any such presentation, withdrawal or redemption.
(2) As soon as reasonably practicable, given the state of the bank's records and the
adequacy of staffing, the receiver shall mail to each of the bank's known depositors,
clients, creditors, safe deposit box holders and bailors of property left with the bank, at
the mailing address shown on the bank's records, an individual notice containing the
information required in the notice provided in subdivision (1) of this subsection, and
specific information pertinent to the account or property of the addressee. The receiver
of a trust bank or uninsured bank may require a fiduciary claimant to file a proof of
claim if the records of such bank are insufficient to identify the claimant's interest.
(1949 Rev., S. 5763; P.A. 78-121, S. 26, 113; P.A. 88-65, S. 22; P.A. 94-122, S. 100, 340; P.A. 02-73, S. 15; P.A. 04-136, S. 17.)
History: P.A. 78-121 removed private bankers and building associations from purview of section; P.A. 88-65 deleted
a reference to industrial banks; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-38 transferred to
Sec. 36a-225 in 1995; P.A. 02-73 added provisions making section applicable to Connecticut credit unions, share accounts
and share account holders; P.A. 04-136 designated existing provisions as Subsec. (a) and amended same by inserting "other
than a trust bank or an uninsured bank", and added Subsec. (b) specifying requirements re publication of notice by receiver
in newspaper of general circulation in each town in which an office of the trust bank or uninsured bank is located and
mailing of individual notice by receiver to each of the bank's known depositors, clients, creditors, safe deposit box holders
and bailors of property left with the bank, effective May 12, 2004.
Sec. 36a-226. (Formerly Sec. 36-39). Duties of receiver re inventory and appraisal of assets of Connecticut banks and credit unions in receivership. Conversion
of assets. Deposit of money. The receiver shall, as soon after the receiver's appointment
as is practicable, make and return to the court an inventory and appraisal of the assets
of the Connecticut bank or Connecticut credit union or estate in receivership, verified
by oath according to the receiver's best knowledge, information and belief, and shall,
from time to time thereafter, make and return such additional or supplementary inventories and valuations, and render such reports of the receiver's actions and statements of
accounts, as are necessary for the information of the court or as are required by the
order of the court. The receiver shall hold all the assets which come into the receiver's
possession as such receiver, subject to the order of the court, and shall convert such assets
into money with all reasonable dispatch. The receiver shall deposit money collected on
behalf of such bank or credit union in a bank, Connecticut credit union, federal credit
union, an out-of-state bank that maintains in this state a branch, as defined in section
36a-410, or an out-of-state credit union that maintains in this state a branch, as defined
in section 36a-435b. In cases of doubt or difficulty the receiver may, upon written application, ask the advice of the court as to the manner in which the receiver shall execute
the receiver's trust. The court may, from time to time, on its own motion, or on complaint
of any interested party, make all necessary and proper orders as to the proceedings and
actions of the receiver.
(1949 Rev., S. 5764; P.A. 94-122, S. 101, 340; P.A. 02-73, S. 16; P.A. 03-153, S. 2; P.A. 04-136, S. 18.)
History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-39 transferred to Sec. 36a-226 in
1995; P.A. 02-73 added provisions making section applicable to Connecticut credit unions; P.A. 03-153 substituted "in
accordance with section 36a-223" for provisions re sale, disposition and conveyance of assets and compromising of claims,
effective June 26, 2003; P.A. 04-136 deleted "in accordance with section 36a-223" and required receiver to deposit money
collected on behalf of bank or credit union in a bank, Connecticut credit union, federal credit union, out-of-state bank that
maintains a branch in this state or out-of-state credit union that maintains a branch in this state, effective May 12, 2004.
Annotation to former section 36-39:
Court may authorize receiver to borrow from Reconstruction Finance Corporation to pay dividend to savings depositors.
115 C. 530. See note to Sec. 33-383.
Sec. 36a-226a. Termination of contracts for bailment, deposit for hire or lease
of safes, vaults or safe deposit boxes. Duties of receiver when property not removed.
(a) A contract between a trust bank or uninsured bank in receivership and another person
for bailment, of deposit for hire, or for the lease of a safe, vault or safe deposit box
terminates on the date specified for removal of property in the notices that were published
and mailed in accordance with section 36a-225 or a later date approved by the receiver
or the Superior Court. A person who has paid rental or storage charges for a period
extending beyond the date designated for removal of property has a claim against such
bank's estate for a refund of the unearned amount paid.
(b) If the property is not removed by the date the contract terminates, the receiver
shall inventory the property. In making the inventory, the receiver may open a safe, vault
or safe deposit box, or any package, parcel, or receptacle in the custody or possession of
the receiver. The property shall be marked to identify, to the extent possible, its owner
or the person who left it with the bank. After all property belonging to others that is in
the receiver's custody and control has been inventoried, the receiver shall compile a list
that is divided for each office of the bank that received property that remains unclaimed.
The receiver shall publish, in a newspaper of general circulation in each town in which
the bank had an office that received property that remains unclaimed, the list and the
names of the owners of the property as shown in the bank's records. The published
notice shall specify a procedure for claiming the property unless the court, on application
of the receiver, approves an alternate procedure.
(P.A. 04-136, S. 28.)
History: P.A. 04-136 effective May 12, 2004.
Sec. 36a-227. (Formerly Sec. 36-40). Dissolution of attachments and levies.
Posting of notice of injunction or appointment of receiver. (a) All attachments of,
or against, the estate of any Connecticut bank or Connecticut credit union, made within
sixty days of the date of filing of any complaint seeking the appointment of a receiver
pursuant to sections 36a-215 to 36a-239, inclusive, and all levies of execution upon
the estate thereof not completed within such time period, except such levies made in
pursuance of attachments which are not hereby invalidated, shall be dissolved, upon the
appointment of a receiver.
(b) Immediately after the granting of an injunction or appointment of a receiver
pursuant to sections 36a-215 to 36a-239, inclusive, the commissioner shall place a notice
of such injunction or appointment at the main entrance of the bank or credit union and
thereafter no judgment lien, attachment lien or any voluntary lien shall attach to any
asset of such bank or credit union. No director, officer, member of senior management,
as defined in section 36a-435b, or agent of such bank or credit union shall thereafter
have the authority to act on behalf of such bank or credit union or to convey, transfer,
assign, pledge, mortgage or encumber any assets of such bank or credit union. Any
attempt by any director, officer, member of senior management or agent of such bank
or credit union to convey, transfer, assign, pledge, mortgage or encumber any asset of
such bank or credit union or to create any lien on such bank or credit union or to prefer
any depositor, share account holder, client or creditor of such bank or credit union after
the posting of such notice or in contemplation thereof shall be void. A correspondent
bank of a bank or credit union in receivership may not pay an item drawn on the account
of such bank or credit union that is presented for payment after the correspondent has
received actual notice of the granting of the injunction or appointment of the receiver
unless it previously certified the item for payment.
(1949 Rev., S. 5765; P.A. 76-2, S. 2, 5; P.A. 77-614, S. 161, 587, 610; P.A. 78-121, S. 27, 113; 78-303, S. 85, 136;
P.A. 87-9, S. 2, 3; P.A. 88-65, S. 23; P.A. 94-122, S. 102, 340; P.A. 02-73, S. 17; P.A. 04-136, S. 19.)
History: P.A. 76-2 included savings banks in Subsec. (a) and added Subsec. (b) re notice of injunction or appointment
and effect of notice; P.A. 77-614 and P.A. 78-303 replaced bank commissioner with banking commissioner, effective
January 1, 1979; P.A. 78-121 removed private bankers and building associations from purview of section; (Revisor's note:
Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking");
P.A. 88-65 deleted references to industrial banks; P.A. 94-122 made technical changes, effective January 1, 1995; Sec.
36-40 transferred to Sec. 36a-227 in 1995; P.A. 02-73 amended Subsecs. (a) and (b) by adding provisions making section
applicable to Connecticut credit unions, members of senior management and share account holders; P.A. 04-136 amended
Subsecs. (a) and (b) to incorporate references to Secs. 36a-221a, 36a-226a and 36a-237f to 36a-237h, inclusive, and inserted
in Subsec. (b) reference to "client" and provision prohibiting correspondent bank of a bank or credit union in receivership
from paying item drawn on the account of such bank or credit union that is presented for payment after correspondent has
received actual notice of granting of injunction or appointment of receiver unless it previously certified the item for payment,
effective May 12, 2004.