{"data":{"id":"us-ok/okla.-stat.-tit.-18-18-381.74","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 18, § 18-381.74","heading":"Taking possession by Commissioner","body":"A. Except as otherwise provided in this act, the State Banking\n\nCommissioner may take possession of a state-chartered savings and\n\nloan association, if the Commissioner determines that:\n\n1. The business of the association is being conducted in an\n\nunlawful or unsound manner;\n\n2. The association does not have funds available to pay all\n\nwithdrawals of savings deposits when due or is otherwise unable to\n\ncontinue normal operations;\n\n3. The examination of the association has been obstructed or\n\nimpeded; or\n\n4. The association is operating in violation of provisions of\n\nthis act despite written notice to discontinue such violation.\n\nB. 1. The Commissioner may take possession of any state-\n\nchartered savings association by posting upon the premises of such\n\nassociation a notice reciting that possession is being assumed\n\npursuant to the provisions of this section and stating when\n\npossession shall be deemed effective. Possession may become\n\neffective no earlier than the posting of the notice. A copy of the\n\nnotice shall be filed in the district court of the county where the\n\nassociation is located. The Commissioner shall notify, if\n\napplicable, the appropriate district offices of the Director of the\n\nOffice of Thrift Supervision and the Federal Deposit Insurance\n\nCorporation of taking possession of the association.\n\n2. a. Once possession is effective the Commissioner shall be\n\nvested with the full and exclusive power of management\n\nand control, including the power to:\n\n(1) continue or discontinue the business of the\n\nassociation,\n\n(2) stop or limit the payment of the obligations of\n\nthe association,\n\n(3) employ any necessary assistants, including legal\n\ncounsel,\n\n(4) execute any instrument in the name of the\n\nassociation as Commissioner in charge of\n\nliquidation,\n\n(5) commence, defend or conduct in the name of the\n\nassociation any action or proceeding to which it\n\nmay be a party,\n\n(6) enforce the liabilities of stockholders, officers\n\nand directors of the association,\n\n(7) terminate possession by restoring the assets of\n\nthe association to its board of directors, and\n\n(8) reorganize or liquidate the association in\n\naccordance with this act.\n\nb. As soon as practicable after taking possession the\n\nCommissioner shall make an inventory of the assets of\n\nthe association and file a copy thereof with the\n\ndistrict court where the notice of possession was\n\nfiled.\n\n3. While the Commissioner is in possession there shall be a\n\npostponement of six (6) months after the effective date of\n\npossession, of the date upon which any period of limitation fixed by\n\nstatute or agreement would otherwise expire on a claim or right of\n\naction of the association, or upon which a review must be taken or a\n\npleading or other document must be filed by the association in any\n\npending action or proceeding.\n\n4. a. The Commissioner, within two (2) days after taking\n\npossession of a stock association, shall call a\n\nspecial meeting of the stockholders to allow the\n\nstockholders to retain the incumbent board of\n\ndirectors or to elect a newly constituted board of\n\ndirectors, who may represent the stockholders in the\n\nliquidation proceedings and observe, assist and\n\nprotect the interests of the stockholders.\n\nb. The board of directors of the association is\n\nauthorized to bring all necessary legal actions for\n\nand on behalf of the stockholders and to pay\n\nattorney's fees in a reasonable amount, if such action\n\nbenefits the liquidating account of the failed\n\nassociation.\n\nc. The board of directors, as authorized by the\n\nstockholders, shall represent the stockholders in the\n\ndistrict court in which the notice of possession was\n\nfiled by the Commissioner, as to all matters affecting\n\nthe association.\n\n5. The association shall continue to exist as a body corporate\n\nfor all purposes, except for the purpose of continuing the business\naccount of the failed\n\nassociation.\n\nc. The board of directors, as authorized by the\n\nstockholders, shall represent the stockholders in the\n\ndistrict court in which the notice of possession was\n\nfiled by the Commissioner, as to all matters affecting\n\nthe association.\n\n5. The association shall continue to exist as a body corporate\n\nfor all purposes, except for the purpose of continuing the business\n\nfor which the association was organized, and may function to assist\n\nthe Commissioner or to protect the stockholders' interests in the\n\nassets of the liquidating account.\n\nC. 1. If the Commissioner determines that an emergency exists\n\nwhich may result in serious losses to the depositors of an\n\nassociation, he may take possession of the association without a\n\nprior hearing. Within ten (10) days after the Commissioner has\n\ntaken possession any interested person may appeal such action\n\npursuant to the provisions of Section 207 of Title 6 of the Oklahoma\n\nStatutes.\n\n2. If the Commissioner determines that liquidation of the\n\nassociation is warranted, notice of such determination shall be\n\ngiven to such directors, stockholders, depositors and creditors of\n\nthe association as the Commissioner may prescribe. The notice shall\n\nbe by restricted delivery to the directors and stockholders at their\n\nlast-known address as shown on the records of the association, and\n\nnotice to the depositors and creditors shall be published in a\n\nnewspaper of general circulation in the county where the main office\n\nof such association is located. Any objection to such determination\n\nby a person directly affected thereby shall be appealed pursuant to\n\nthe provisions of Section 207 of Title 6 of the Oklahoma Statutes.\n\nUnless within ten (10) days after the date of publication an order\n\nis issued staying the liquidation or unless the Commissioner tenders\n\nto the Federal Deposit Insurance Corporation the appointment as\n\nliquidator pursuant to Section 381.77 of this title, the\n\nCommissioner shall liquidate the association after providing a bond\n\nexecuted by a surety company authorized to do business in this\n\nstate, for the benefit of the people of this state, for the faithful\n\ndischarge of the duties of the Commissioner in connection with such\n\nliquidation and the accounting for all monies coming into the\n\npossession of the Commissioner. The cost of such bond shall be paid\n\nfrom the assets of the association. Suit may be maintained on such\n\nbond by any person injured by a breach of the conditions thereof.\n\n3. After the Commissioner takes possession of an association\n\npursuant to the provisions of this section, the stockholders thereof\n\nmay repair its credit, restore or substitute its reserves, and\n\notherwise improve its condition so that it is qualified to do a\n\ngeneral savings and loan business as provided for by law. Such\n\nassociation shall not reopen its business until the Commissioner\n\nissues written permission therefor after an investigation of the\n\naffairs of the association and a determination that the board of\n\ndirectors of the association has complied with all applicable laws,\n\nthat the association's credit and funds are in all respects\n\nrepaired, and its reserves restored or sufficiently substituted, and\n\nthat it again should be permitted to reopen for business. Written\n\npermission to reopen to do a general savings and loan business shall\n\nbe issued in the same manner as is provided by law for granting\n\npermission to do business after incorporation.\n\n4. If the Commissioner determines that reorganization of the\n\nassociation is warranted or if the Supreme Court, after staying the\n\nliquidation of the association, orders such reorganization, the\n\nCommissioner, after according a hearing to all interested persons,\n\nshall enter an order proposing a reorganization plan. A copy of the\n\nplan shall be sent to each depositor and creditor who will not\n\nreceive full payment of their claim under the plan, together with\nassociation is warranted or if the Supreme Court, after staying the\n\nliquidation of the association, orders such reorganization, the\n\nCommissioner, after according a hearing to all interested persons,\n\nshall enter an order proposing a reorganization plan. A copy of the\n\nplan shall be sent to each depositor and creditor who will not\n\nreceive full payment of their claim under the plan, together with\n\nnotice that, unless the plan is disapproved, within fifteen (15)\n\ndays after the date of the mailing of the plan, in writing by\n\npersons holding one-third (1/3) or more of the aggregate amount of\n\nsuch claims, the Commissioner shall proceed to effect the\n\nreorganization. A department, agency, or political subdivision of\n\nthis state holding a claim which will not be paid in full is\n\nauthorized to participate in the reorganization as any other\n\ncreditor.\n\n5. a. Notwithstanding any other provision to the contrary,\n\nthe Commissioner, upon taking possession of an\n\nassociation, may immediately liquidate said\n\nassociation without giving prior notice to the\n\ndirectors, stockholders, depositors and creditors of\n\nsuch association, if it is determined by order of the\n\ndistrict court where notice of possession was filed\n\nthat the immediate liquidation of the association is\n\nnecessary to protect the interests of the depositors\n\nof the association and is otherwise in the public\n\ninterest.\n\nb. In proceeding with the immediate liquidation of the\n\nassociation, the Commissioner, in order to facilitate\n\nthe assumption of the deposit liabilities of the\n\nclosed insured association by another association, may\n\nborrow monies from the Federal Deposit Insurance\n\nCorporation and pledge some or all of the assets of\n\nthe closed insured association as security for such\n\nborrowing or may sell some or all of the assets of the\n\nclosed insured association to the Federal Deposit\n\nInsurance Corporation.\n\n6. Once the Commissioner takes possession of an association for\n\npurposes of liquidation, neither the ten-day periods provided by\n\nsubsection C of this section nor the pendency of any proceeding for\n\nreview of the action of the Commissioner shall operate to defer,\n\ndelay, impede or prevent the payment by the Federal Deposit\n\nInsurance Corporation of the insured deposits of an insured\n\nassociation.\n\n7. The Commissioner shall make available to the Federal Deposit\n\nInsurance Corporation such facilities in or of an insured\n\nassociation and such books, records and other relevant data of the\n\ninsured association as may be necessary or appropriate to enable the\n\nFederal Deposit Insurance Corporation to pay the insured deposits in\n\nthe insured association as provided in this subsection. The Federal\n\nDeposit Insurance Corporation, its directors, officers, agents, and\n\nemployees, and the Commissioner, and the agents and employees of the\n\nCommissioner, shall be free from any liability to the insured\n\nassociation, its directors, stockholders, and creditors, for any\n\naction relating to the payment of insured deposits.\n\nD. No judgment, lien, or attachment shall be executed upon any\n\nasset of the association while it is in the possession of the\n\nCommissioner. The Commissioner, in connection with a liquidation or\n\nreorganization may:\n\n1. Vacate and void any lien or attachment, other than an\n\nattorney's or mechanic's lien, obtained upon any asset of the\n\nassociation during the Commissioner's possession or within four (4)\n\nmonths prior to commencement thereof, except liens created by the\n\nCommissioner while in possession; and\n\n2. Void any transfer of an asset of the association made after\n\nor in contemplation of its insolvency with intent to effect a\n\npreference.\n\nE. The Commissioner may borrow money in the name of the\n\nassociation and may pledge its assets as security for a loan.\n\nF. All necessary and reasonable expenses of the Commissioner\nr while in possession; and\n\n2. Void any transfer of an asset of the association made after\n\nor in contemplation of its insolvency with intent to effect a\n\npreference.\n\nE. The Commissioner may borrow money in the name of the\n\nassociation and may pledge its assets as security for a loan.\n\nF. All necessary and reasonable expenses of the Commissioner\n\nrelating to the possession of an association and of its\n\nreorganization or liquidation shall be defrayed from the assets of\n\nthe association. Compensation to liquidating agents and employees\n\nshall not be in excess of amounts which such individuals would be\n\nentitled to in their regular employment or for like services\n\nrendered within the area of the insolvent association, and in no\n\nevent shall a liquidating agent be paid a monthly salary or wage\n\nfrom the assets of the association in excess of the amount of the\n\nmonthly salary of the highest paid official of the insolvent\n\nassociation. Any attorney's fee allowed to an attorney representing\n\nthe liquidating agent shall not exceed the reasonable amount charged\n\nby other attorneys of similar competence for like services in\n\nregular employment of an attorney in the area of the association.","path":["OK Code","Title 18"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os18.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"b4350eed70e61cf9616b8872e7366a3a02e23014d91bdc22eb7426ce481b8734","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-18-18-381.73","next":"us-ok/okla.-stat.-tit.-18-18-381.75"},"notice":"GroundRules: Original legal text. Not legal advice."}