SB 2102 Summary

• Creates new chapter 6-07.2 establishing comprehensive procedures for the Department of Financial Institutions to take possession of and liquidate troubled financial institutions (banks and credit unions).

• Allows the commissioner to take possession when an institution is insolvent, operating unsafely, conducting fraudulent business, impaired capital, unable to pay deposits, or violating regulations and other specified conditions.

• Establishes a receiver appointment process with power to liquidate assets, collect debts, sell property, reject contracts, and distribute claims in priority order (administration expenses, prioritized claims, deposits, general liabilities, subordinated debt, equity).

• Requires claimants against closed institutions to present claims within 180 days; rejected claims can be appealed to court within 60 days, with any claims not pursued becoming permanently disallowed.

• Repeals the previous chapter 6-07 and amends multiple sections to update cross-references and add hearing procedures allowing institutions to request board review within ten days of emergency cease and desist orders or prompt corrective action orders.