{"data":{"id":"us-ok/okla.-stat.-tit.-6-6-1204","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 6, § 6-1204","heading":"Liquidation by Commissioner - Procedure","body":"A. Sale of assets - Compromise and payment of claims. In\n\nliquidating a state bank the Commissioner may exercise any power\n\nthereof but he shall not, without the approval of the court in which\n\nnotice of possession has been filed:\n\n(1) Sell any asset of the bank having a value in excess of Five\n\nHundred Dollars ($500.00) or such larger sum as may be determined by\n\nthe court not exceeding One Hundred Thousand Dollars ($100,000.00);\n\n(2) Compromise or release any claim if the amount of the claim\n\nexceeds Five Hundred Dollars ($500.00), exclusive of interest or\n\nsuch larger sum as may be determined by the court not exceeding One\n\nHundred Thousand Dollars ($100,000.00); and\n\n(3) Make any payment on any claim, other than a claim upon an\n\nobligation incurred by the Commissioner, before preparing and filing\n\na schedule of his determinations in accordance with this title.\n\nB. Lease of lands for oil and gas - Royalty - Manner of making\n\nlease - Dispensing with notice. The Commissioner is hereby\n\nauthorized and empowered to lease for oil and/or gas purposes any\n\nland vested in the Commissioner as assets of insolvent state banks.\n\nIn making or executing any such lease the Commissioner shall\n\nretain and reserve a royalty of not less than one-eighth of the oil\n\nand/or gas produced from said land. Said lease shall be made in the\n\nsame manner as now provided for the sale of other assets of state\n\nbanks in the possession of the Commissioner.\n\nC. Termination of bank's executory contracts. Within six (6)\n\nmonths of the commencement of liquidation, the Commissioner may by\n\nhis election terminate any executory contract, including but not\n\nlimited to contracts for services or advertising, to which the state\n\nbank is a party or any obligation of the bank as a lessee. A lessor\n\nwho receives at least sixty (60) days' notice of the Commissioner's\n\nelection to terminate the lease shall have no claim for rent other\n\nthan rent accrued to the date of termination nor for damages for\n\nsuch termination, except on building or bank premises the lessor may\n\nreceive damages not to exceed one (1) year's rent as provided in\n\nsuch lease.\n\nD. Termination of banks' fiduciary positions. As soon after\n\nthe commencement of liquidation as is practicable, the Commissioner\n\nshall take the necessary steps to terminate all fiduciary positions\n\nheld by the state bank and take such action as may be necessary to\n\nsurrender all property held by the bank as a fiduciary and to settle\n\nits fiduciary accounts. Such fiduciary accounts may be transferred\n\nto another qualified corporate fiduciary in the same community by\n\nthe Commissioner without assent of the parties, and notice of such\n\ntransfer must be given by registered mail to the parties, and the\n\nmanner of succession of trust powers and successor trustees shall\n\nfollow the same procedure as set out in Section 1018 of this title.\n\nE. Subrogation of insuring agency of United States. The right\n\nof any agency of the United States insuring deposits to be\n\nsubrogated to the rights of depositors upon payment of their claims\n\nshall not be less extensive than the law of the United States\n\nrequires as a condition of the authority to issue such insurance or\n\nmake such payments to depositors of national banks.\n\nF. Notice to depositors, creditors and safe deposit box\n\nlessees. Immediately on taking charge and within ten (10) days\n\nafter taking possession, the Commissioner shall send notice of the\n\nliquidation to each known depositor, creditor and lessee of a safe\n\ndeposit box and bailor of property held by the bank at the address\n\nshown on the books of the institution. The notice shall also be\n\npublished in a newspaper of general circulation in the county in\n\nwhich the institution is located once a week for three (3)\n\nsuccessive weeks. The Commissioner shall send with each notice a\nof a safe\n\ndeposit box and bailor of property held by the bank at the address\n\nshown on the books of the institution. The notice shall also be\n\npublished in a newspaper of general circulation in the county in\n\nwhich the institution is located once a week for three (3)\n\nsuccessive weeks. The Commissioner shall send with each notice a\n\nstatement of the amount shown on the books of the institution to be\n\nthe claim of the depositor or creditor, with all setoffs and any\n\namounts due to the bank. The notice shall demand that property held\n\nby the bank as bailee or in a safe deposit box be withdrawn by the\n\nperson entitled thereto; and the claim of a depositor or creditor,\n\nif the amount claimed differs from that stated in the notice to be\n\ndue, be filed with the Commissioner within sixty (60) days from the\n\ndate of the first publication of the notice of the taking of\n\npossession given by the Commissioner, in accordance with the\n\nprocedure prescribed in the notice. The failure of any depositor,\n\ncreditor or claimant to receive a notice, or observe the published\n\nnotice of the taking of possession by the Commissioner, shall not\n\nrelieve such claimant of the obligation to file a claim, if the\n\namount thereof differs from the amount found by the Commissioner.\n\nIf no claim is filed by the claimant in the time specified, then the\n\ndetermination of the Commissioner shall be final and shall\n\nconstitute the claim of that claimant.\n\nG. Disposition of contents of unclaimed safe deposit boxes.\n\nSafe deposit boxes, the contents of which have not been removed\n\nbefore the date specified, shall be opened by the Commissioner.\n\nSealed packages containing the contents of such box, with a\n\ncertificate of inventory of contents, together with any unclaimed\n\nproperty held by the bank as bailee and certified inventories\n\nthereof, shall be held by the Commissioner and administered in\n\naccordance with the provisions of the Uniform Unclaimed Property\n\nAct, Section 651 et seq. of Title 60 of the Oklahoma Statutes.\n\nH. Determination of claims - Time therefor - Notification. The\n\nCommissioner shall:\n\n(1) As soon as practical and within one hundred twenty (120)\n\ndays from date of first publication of the notice of taking\n\npossession, determine the amount, if any, owing to each known\n\ncreditor or depositor and the priority class of his claim under this\n\ntitle, and file such determination in the court in which notice of\n\npossession was filed;\n\n(2) As soon as practical and within sixty (60) days from the\n\ndate of filing, reject any claim if he doubts the validity thereof;\n\nand\n\n(3) Notify each person whose claim has not been allowed in\n\nfull, by mailing to his last-known address, as shown on the records\n\nof the bank, a notice of the time when and the place where the\n\nschedule of determinations will be available for inspection and the\n\ndate when the Commissioner will file his schedule in court.\n\nI. Disposition of contested claims. Within twenty (20) days\n\nafter the filing of the Commissioner's schedule, any creditor,\n\ndepositor or stockholder may file an objection to any determination\n\nmade which adversely affects such objector. Any objections so filed\n\nshall be heard and determined by the court. The objection shall be,\n\nby the clerk of such district court, entered upon the docket of said\n\ncourt under the same number as other proceedings in connection with\n\nthe liquidation of the insolvent bank. The Commissioner and\n\ninterested claimants as the court determines shall be notified of\n\nsuch objection upon a ten-day notice and the matter shall be tried\n\nde novo. No person having a claim against an insolvent bank shall\n\nmaintain action thereon except as herein provided.\n\nJ. Partial distribution of allowed claims. After filing his\n\nschedule the Commissioner shall, after establishing proper reserves\nCommissioner and\n\ninterested claimants as the court determines shall be notified of\n\nsuch objection upon a ten-day notice and the matter shall be tried\n\nde novo. No person having a claim against an insolvent bank shall\n\nmaintain action thereon except as herein provided.\n\nJ. Partial distribution of allowed claims. After filing his\n\nschedule the Commissioner shall, after establishing proper reserves\n\nfor the payment of costs, expenses of liquidation and disputed\n\nclaims, pay to any agency of the United States insuring deposits in\n\nthe insolvent bank such sum as may be then available but not\n\nexceeding the amount paid out by such agency as such an insurer of\n\ndeposits and accounts. The Commissioner may, from time to time,\n\nalso make partial distribution to the holders of claims which are\n\nundisputed or have been allowed by the court, in the order of their\n\npriority as herein provided. The court supervising the liquidation\n\nshall direct, as soon as practicable after the establishment of an\n\nadequate and proper reserve for payment of disputed claims, costs\n\nand expenses of liquidation, that the Commissioner make a\n\nsubstantial partial pro rata distribution as will not interfere with\n\norderly liquidation, to the holders of undisputed claims and those\n\nallowed by the court in the order of their priority, to the extent\n\nthat there remains only the determination and settlement of disputed\n\nclaims and the procedures of the final accounting and final\n\ndistribution to be made by the Commissioner as herein provided.\n\nK. Priority of claims - Payment - Cancellation - Claims when\n\nbarred.\n\n(1) The following claims shall have priority in the order\n\nherein specified:\n\n(a) obligations incurred by the Commissioner, fees and\n\nassessments due to the Department, and all expenses of\n\nliquidation, all of which may be covered by a proper\n\nreserve of funds,\n\n(b) the depositors having an approved claim against the\n\ngeneral liquidating account of the bank,\n\n(c) the general creditors having an approved claim against\n\nthe general liquidating account of the bank,\n\n(d) the claims otherwise proper which were not filed\n\nwithin the time prescribed herein, and\n\n(e) the stockholders of the bank;\n\nFor purposes of determining priority of claims, federal funds sold\n\nto the failed institution shall be considered deposits of the\n\nselling bank in the failed institution.\n\n(2) No claim shall be entitled to interest thereon if it be\n\npaid within six (6) months after the first publication of notice of\n\nthe taking of possession by the Commissioners; if paid after such\n\nperiod, then the unpaid balance of the claim shall be credited with\n\ninterest at the rate of six percent (6%) per annum from the\n\nexpiration of the said six (6) months until paid or finally canceled\n\nby exhaustion of all assets;\n\n(3) All distributions declared in accordance herewith, which\n\nshall not be claimed within one (1) year, shall be canceled upon the\n\norder of the district court having jurisdiction of the liquidation\n\nof such insolvent bank, and the proceeds thereof returned to the\n\ngeneral liquidating account of such insolvent bank. Provided, that\n\nnotice of the application of the Commissioner to the district court\n\nfor permission to cancel such unclaimed distributions shall be given\n\nby publication for two (2) successive weeks in a newspaper of\n\ngeneral circulation in the county where the insolvent bank is\n\nlocated. The notice shall describe the unclaimed distributions\n\nsought to be canceled, giving the name and location of the insolvent\n\nbank, the name of the payee and the amount and shall recite the\n\nCommissioner has filed an application in the designated district\n\ncourt for cancellation of such distributions and shall refer to the\n\napplication for further particulars; and\nre the insolvent bank is\n\nlocated. The notice shall describe the unclaimed distributions\n\nsought to be canceled, giving the name and location of the insolvent\n\nbank, the name of the payee and the amount and shall recite the\n\nCommissioner has filed an application in the designated district\n\ncourt for cancellation of such distributions and shall refer to the\n\napplication for further particulars; and\n\n(4) Any assets remaining after all partial distributions, after\n\nall claims have been paid, or ample provisions for reserves are made\n\nfor payment thereof by the court, shall be distributed to the\n\nstockholders in accordance with their respective interests.\n\nL. Disposition of unclaimed funds other than distributions.\n\nUnclaimed funds, other than unclaimed distributions, remaining after\n\ncompletion of the liquidation shall be retained by the Commissioner\n\nwho shall administer them in accordance with the Uniform Unclaimed\n\nProperty Act, Section 651 et seq. of Title 60 of the Oklahoma\n\nStatutes.\n\nM. Annual reports - Final account - Release of Commissioner -\n\nCancellation of charter.\n\n(1) During the liquidation procedure the Commissioner and his\n\nagents and employees shall make a verified annual account, giving in\n\ndetail a statement of all receipts and disbursements made from the\n\nassets in their possession. A copy of the annual report shall be\n\nfiled with the court of the county and a hearing held thereon.\n\nInterested parties and the Board of Directors of the insolvent bank\n\nshall be given such notice as the court directs of the hearing and\n\nshall make such objections as they shall desire to the account;\n\nhowever, the failure to object at an annual hearing shall not\n\nprejudice the right of any claimant or interested party to object to\n\nitems of expense and proceedings in the liquidation upon the final\n\naccount;\n\n(2) When the assets have been distributed in accordance with\n\nthis title, except unclaimed funds and content of safe deposit boxes\n\nheld by the Commissioner, the Commissioner shall file a final\n\naccount with the court. Notice of hearing upon the final account\n\nshall be given of not less than ten (10) days nor more than thirty\n\n(30) days, by registered or certified mail, to all interested\n\npersons and to the board of directors of the insolvent bank and the\n\nnotice shall be published for two (2) successive weeks in some\n\nnewspaper of general circulation published in the county, showing\n\nthe nature of the hearing, the date and time of the hearing and that\n\nsuch account is for final settlement of liquidating account of such\n\ninsolvent bank;\n\n(3) The final account shall reflect all the acts of the\n\nCommissioner as supported by annual reports and such necessary items\n\nto support the account, including distribution of such remaining\n\ncash to the stockholders in accordance with their interests and all\n\nother assets to the board of directors of the bank as liquidating\n\nagents for the stockholders under the Oklahoma General Corporation\n\nAct;\n\n(4) The court shall hear all matters touching upon the final\n\naccount, allow, reduce or reject any item of expense, and determine\n\nall matters before it. Any person aggrieved by the judgment of the\n\ncourt may appeal as in any other civil action; and\n\n(5) Upon approval of the final account as settled by the court,\n\nthe Commissioner shall be relieved of liability in connection with\n\nthe liquidation and shall cancel the charter upon the record of the\n\nDepartment.","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":"4531ffccf8729f5e60e036f7bd92f582c6f0dff8e48498bc457a972e9aec4e15","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-6-6-1203","next":"us-ok/okla.-stat.-tit.-6-6-1205"},"notice":"GroundRules: Original legal text. Not legal advice."}