{"data":{"id":"us-ok/okla.-stat.-tit.-6-6-1202","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 6, § 6-1202","heading":"Involuntary liquidation by Commissioner - Reorganization","body":"A. Possession of Commissioner - Hearing. Except as otherwise\n\nprovided in this Code, only the State Banking Commissioner may take\n\npossession of a bank, if, after a hearing before the Banking Board,\n\nthe Board shall find:\n\n1. That it is insolvent;\n\n2. The bank's capital is impaired, and has not been corrected\n\nas provided in Section 220 of this title, or is otherwise in an\n\nunsound condition;\n\n3. The bank's business is being conducted in an unlawful or\n\nunsound manner;\n\n4. The bank is unable to continue normal operations; or\n\n5. That examination of the bank has been obstructed or impeded.\n\nB. Notice of possession - Powers and duties of Commissioner -\n\nTolling of limitations.\n\n1. The Commissioner shall take possession by posting upon the\n\npremises a notice reciting that the Commissioner is assuming\n\npossession pursuant to this Code and the time, not earlier than the\n\nposting of the notice, when the Commissioner's possession shall be\n\ndeemed to commence. A copy of the notice shall be filed in the\n\ndistrict court in the county in which the institution is located.\n\nProvided, if the Federal Deposit Insurance Corporation is appointed\n\nas liquidator pursuant to the provisions of Section 1205 of this\n\ntitle, such notice shall not be filed. When notice of possession is\n\nnot required to be filed in the district court, references in\n\nArticle XII of this title to additional filings, notices, orders, or\n\napprovals, except approvals by the Board of the Commissioner’s\n\nactions, shall not apply to the Commissioner’s possession or to the\n\nliquidation by the Federal Deposit Insurance Corporation. The\n\nCommissioner shall notify the Federal Reserve Bank of the district\n\nof taking possession of any state bank which is a member of the\n\nFederal Reserve System, and shall notify the Federal Deposit\n\nInsurance Corporation of taking possession of any state bank which\n\nis a member of the Federal Deposit Insurance Corporation.\n\n2. When the Commissioner has taken possession of a state bank,\n\nthe Commissioner shall be vested with the full and exclusive power\n\nof management and control, including the power to continue or to\n\ndiscontinue the business, to stop or to limit the payment of its\n\nobligations, to employ any necessary assistants, including legal\n\ncounsel, to execute any instrument in the name of the bank as\n\nCommissioner of Banking in charge of liquidation, to commence,\n\ndefend and conduct in its name any action or proceeding to which it\n\nmay be a party, to enforce the liabilities of the stockholders,\n\nofficers and directors, to terminate the Commissioner's possession\n\nby restoring the assets of the bank to its board of directors and to\n\nreorganize or liquidate the bank in accordance with the Code. As\n\nsoon as practicable after taking possession the Commissioner shall\n\nmake an inventory of the assets and file a copy thereof with the\n\ncourt in which the notice of possession was filed.\n\n3. When the Commissioner is in possession and while the\n\nCommissioner's possession continues there shall be a postponement\n\nuntil six (6) months after such taking, of the date upon which any\n\nperiod of limitation fixed by statute or agreement would otherwise\n\nexpire on a claim or right of action of the bank, or upon which a\n\nreview must be taken or a pleading or other document must be filed\n\nby the bank in any pending action or proceeding.\n\n4. The Commissioner shall, within two (2) days after taking\n\npossession, call and give five (5) days' notice by mail to\n\nstockholders of the bank at their last-known address of a special\n\nmeeting for the purpose of allowing the stockholders to designate\n\nthe board of directors as the representative of the stockholders or\n\nto allow the election of a new board of directors if the\n\nstockholders should so determine. Such board of directors are\n\nauthorized to represent the stockholders in the liquidation\n\nprocedures herein, to observe, assist and protect the interest of\nss of a special\n\nmeeting for the purpose of allowing the stockholders to designate\n\nthe board of directors as the representative of the stockholders or\n\nto allow the election of a new board of directors if the\n\nstockholders should so determine. Such board of directors are\n\nauthorized to represent the stockholders in the liquidation\n\nprocedures herein, to observe, assist and protect the interest of\n\nthe stockholders.\n\na. The board of directors of the bank are authorized to\n\nbring all necessary legal actions for and on behalf of\n\nthe stockholders and to pay attorney's fee in a\n\nreasonable amount, if such action benefits the\n\nliquidating account of the insolvent bank.\n\nb. 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 has\n\nbeen filed by the Commissioner, as to all matters\n\naffecting the bank.\n\n5. The corporate entity of the bank shall continue to exist and\n\nmay function for all purposes, except as to the assets of and\n\nactivities as a banking institution under a charter, and may\n\nfunction to assist the Commissioner or to protect the stockholders'\n\ninterest in the assets of the liquidating account.\n\nC. Omission of hearing - Application to vacate possession -\n\nLiquidation - Notice thereof - Objection - Bond of Commissioner -\n\nReorganization - Immediate liquidation of state banks.\n\n1. If in the opinion of the Commissioner an emergency exists\n\nwhich may result in serious losses to the depositors, the\n\nCommissioner may take possession of a state bank without a prior\n\nhearing. Unless liquidation of the bank has been tendered to the\n\nFederal Deposit Insurance Corporation, within ten (10) days after\n\nthe Commissioner has taken possession any interested person may file\n\nan application with the Board for an order vacating such possession.\n\nThe Board shall grant the application if it finds that the action of\n\nthe Commissioner was unwarranted or without sufficient cause.\n\n2. If the Commissioner shall determine to liquidate the bank,\n\nthe Commissioner shall give such notice of the Commissioner's\n\ndetermination to the directors, stockholders, depositors and\n\ncreditors as the Board may prescribe. Such notice shall be by\n\nrestricted delivery to the directors and stockholders at their last-\n\nknown address as shown on the records of the bank and notice to the\n\ndepositors and creditors shall be published in a legal newspaper\n\npublished in the city or town where such bank is located, or if\n\nthere be no legal newspaper published in such city or town then in a\n\nlegal newspaper having the greatest paid circulation within such\n\ncity or town. Any objection to such determination by a person\n\ndirectly affected shall be filed with the Board within ten (10) days\n\nafter such notice is mailed or published. Unless within ten (10)\n\ndays thereafter the Board issues an order staying the liquidation or\n\nunless the Board directs the Commissioner to tender to the Federal\n\nDeposit Insurance Corporation the appointment as liquidator under\n\nthis section, the Commissioner shall proceed to liquidate the\n\ninstitution, upon first providing a bond executed by some surety\n\ncompany authorized to do business in this state, running to the\n\npeople of the State of Oklahoma, which meets with the approval of\n\nthe Board, for the faithful discharge of the duties of the\n\nCommissioner, in connection with such liquidation and the accounting\n\nfor all monies coming into the hands of the Commissioner. The cost\n\nof such bond shall be paid from the assets of the bank. Suit may be\n\nmaintained on such bond by any person injured by a breach of\n\nconditions thereof.\n\n3. After the Commissioner shall have taken possession of any\n\nbank which is subject to the provisions of this act, the\n\nstockholders thereof may repair its credit, restore or substitute\n\nits reserves, and otherwise place it in condition so that it is\nsuch bond shall be paid from the assets of the bank. Suit may be\n\nmaintained on such bond by any person injured by a breach of\n\nconditions thereof.\n\n3. After the Commissioner shall have taken possession of any\n\nbank which is subject to the provisions of this act, the\n\nstockholders thereof may repair its credit, restore or substitute\n\nits reserves, and otherwise place it in condition so that it is\n\nqualified to do a general banking business as before it was taken\n\npossession of by the Commissioner; but such bank shall not be\n\npermitted to reopen its business until the Commissioner, after a\n\ncareful investigation of its affairs, is of the opinion that its\n\nstockholders have complied with the laws, that the bank's credit and\n\nfunds are in all respects repaired, and its reserve restored or\n\nsufficiently substituted, and that it should be permitted again to\n\nreopen for business; whereupon the Commissioner is authorized to\n\nissue written permission for reopening of the bank in the same\n\nmanner as permission to do business is granted after the\n\nincorporation thereof, and thereupon the bank may be reopened to do\n\na general banking business.\n\n4. If the Commissioner determines to reorganize the bank or if\n\nthe Board, after staying its liquidation, orders such\n\nreorganization, the Commissioner, after according a hearing to all\n\ninterested persons, shall enter an order proposing a reorganization\n\nplan. A copy of the plan shall be sent to each depositor and\n\ncreditor who will not receive payment of the claim of the depositor\n\nor creditor in full under the plan, together with notice that,\n\nunless within fifteen (15) days the plan is disapproved in writing\n\nby persons holding one-third (1/3) or more of the aggregate amount\n\nof such claims, the Commissioner will 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 as any other creditor.\n\n5. Notwithstanding any other provision of this chapter, the\n\nCommissioner, upon taking possession of a state bank, may\n\nimmediately proceed to liquidate the bank, without giving prior\n\nnotice to the directors, stockholders, depositors and creditors, if\n\nit is determined by order of the court in which notice of possession\n\nhas been filed that:\n\na. the actions of the Commissioner have the approval of\n\nthe Board, and\n\nb. the immediate liquidation of the bank is necessary to\n\nprotect the interests of its depositors and is\n\notherwise in the public interest.\n\nIn the proceeding with the immediate liquidation of the bank as\n\naforesaid, the Commissioner, in order to facilitate the assumption\n\nof the deposit liabilities of the closed bank by another bank, may\n\nborrow moneys from the Federal Deposit Insurance Corporation and\n\npledge some or all of the assets of the closed bank as security for\n\nsuch borrowing or the Commissioner may sell some or all of the\n\nassets of the closed bank to the Federal Deposit Insurance\n\nCorporation. When notice of possession has not been filed in the\n\ndistrict court, the provisions of this paragraph are satisfied by an\n\norder of the Board approving the actions of the Commissioner and an\n\norder of the Board directing the appointment of the Federal Deposit\n\nInsurance Corporation as liquidator.\n\n6. When the Commissioner has taken possession of a state bank\n\nfor the purpose of liquidation, neither the ten-day periods provided\n\nby paragraphs 1 and 2 of this subsection nor the pendency of any\n\nproceeding for review of the Commissioner's action shall operate to\n\ndefer, delay, impede or prevent the payment by the Federal Deposit\n\nInsurance Corporation of the insured deposits in the bank.\n\nThe Commissioner shall make available to the Federal Deposit\n\nInsurance Corporation such facilities in or of the bank and such\n\nbooks, records and other relevant data of the bank as may be\nndency of any\n\nproceeding for review of the Commissioner's action shall operate to\n\ndefer, delay, impede or prevent the payment by the Federal Deposit\n\nInsurance Corporation of the insured deposits in the bank.\n\nThe Commissioner shall make available to the Federal Deposit\n\nInsurance Corporation such facilities in or of the bank and such\n\nbooks, records and other relevant data of the bank as may be\n\nnecessary or appropriate to enable the Federal Deposit Insurance\n\nCorporation to pay the insured deposits as aforesaid, and the\n\nFederal Deposit Insurance Corporation, its directors, officers,\n\nagents and employees, and the Commissioner, the agents and employees\n\nof the Commissioner, shall be free from any liability to the bank,\n\nits directors, stockholders and creditors, for any action taken in\n\nconnection herewith.\n\nD. Execution upon bank assets prohibited - Vacation of liens\n\nand transfer of assets.\n\n1. No judgment, lien or attachment shall be executed upon any\n\nasset of the bank while it is in the possession of the Commissioner.\n\nUpon the election of the Commissioner in connection with a\n\nliquidation or reorganization:\n\na. any lien or attachment, other than an attorney's or\n\nmechanic's lien, obtained upon any asset of the bank\n\nduring the Commissioner's possession or within four\n\n(4) months prior to commencement thereof shall be\n\nvacated and voided except liens created by the\n\nCommissioner while in possession, and\n\nb. any transfer of an asset of the bank made after or in\n\ncontemplation of its insolvency with intent to effect\n\na preference shall be voided.\n\n2. The provisions of this subsection shall not be construed to\n\nauthorize the Commissioner to vacate or void any lien or attachment\n\nobtained by a Federal Reserve Bank upon any asset of the bank or to\n\nvoid any transfer of an asset of the bank to such Federal Reserve\n\nBank.\n\nE. Power to borrow money and pledge bank's assets. With the\n\napproval of the Board, the Commissioner may borrow money in the name\n\nof the bank and may pledge its assets as security for the loan.\n\nF. Commissioner's expenses - Payable out of bank's assets. All\n\nnecessary and reasonable expenses of the Commissioner's possession\n\nof a bank and of its reorganization or liquidation shall be defrayed\n\nfrom the assets thereof, including but not limited to any necessary\n\nfees or other expenses incurred through the office of the county\n\nclerk. Compensation to liquidating agents and employees must not be\n\nin excess of amounts which such individuals would be entitled to in\n\ntheir regular employment or for like services rendered within the\n\narea of the insolvent bank, and in no event shall a liquidating\n\nagent be paid a monthly salary or wage from the assets of the bank\n\nin excess of the amount of the monthly salary of the highest-paid\n\nofficial of the insolvent bank. The attorney's fee allowed to an\n\nattorney representing the liquidating agent shall not exceed the\n\namount for like services in regular employment of an attorney in the\n\narea of the bank.","path":["OK Code","Title 6"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os6.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"34a7de7a1daacfc4cd240e4d5ea3e450064e595cc83e19c74cff33dcadf20669","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-6-6-1201","next":"us-ok/okla.-stat.-tit.-6-6-1203"},"notice":"GroundRules: Original legal text. Not legal advice."}