2005 Illinois Code - 205 ILCS 105/ Illinois Savings and Loan Act of 1985. Article 10 - Involuntary Liquidation
(205 ILCS 105/Art. 10 heading)
ARTICLE 10.
INVOLUNTARY LIQUIDATION
(205 ILCS 105/10‑1) (from Ch. 17, par. 3310‑1)
Sec. 10‑1.
Commissioner to appoint receiver.
If the Commissioner, after taking custody of an association under the
Section of this Act concerning Commissioner's Authority to Take Custody,
finds that any one or more of the reasons for taking custody continues to
exist through the period of his custody, then he shall appoint any
qualified person, firm or corporation as receiver or coreceiver of such
association or trust for the purpose of liquidation. In the case of an
insured association, he may appoint the insurance corporation or its
nominee as such receiver or as a coreceiver; and the insurance corporation
may be permitted to serve without bond. The receiver shall take possession
of and title to the books, records and assets of every description of the
association or trust.
(Source: P.A. 84‑543.)
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(205 ILCS 105/10‑2) (from Ch. 17, par. 3310‑2)
Sec. 10‑2.
Filing of complaint by Attorney General.
After appointing a receiver, the Commissioner shall direct the Attorney
General to file a complaint in the name of the Commissioner in the circuit
court of the county in which such association or trust is located and
against the association or trustees or liquidators, as the case may be, for
the orderly liquidation and dissolution of the association or trust and for
an injunction restraining the officers, directors, trustees or
liquidators, from continuing the operation of the association or trust. No
complaint shall be filed nor shall other proceedings be commenced in any
court for the dissolution or winding up of the affairs of the association
or trust except in the name of and by authority of the Commissioner
represented by the Attorney General.
(Source: P.A. 84‑543.)
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(205 ILCS 105/10‑3) (from Ch. 17, par. 3310‑3)
Sec. 10‑3.
Receiver's powers; court supervision.
Upon order of the court in which the Commissioner's complaint for
dissolution and winding up of the affairs of the association has been
filed, the receiver shall have the power and shall be charged with the
duties and responsibilities as follows:
(a) To sell and compound all bad or doubtful debts on such terms as the
court shall direct;
(b) To sell the real and personal property of the association on such
terms as the court shall direct;
(c) To petition the court for authority to borrow money to protect
assets or to facilitate liquidation and distribution and to pledge assets
as security therefor, which petition shall be heard by the court upon such
notice to all parties in interest as the court shall direct, and such loans
may be obtained and assets pledged as security therefor upon such terms and
conditions as may be deemed expedient and necessary;
(d) To make and carry out agreements with the insurance corporation or
with any other financial institution for the payment or assumption of the
association's liabilities, in whole or in part, and to sell, convey,
transfer, pledge or assign assets as security or otherwise, and to make
guaranties in connection therewith; and
(e) To prepare and mail reports on the progress of the receivership to
the members of the association, which reports shall be issued
semi‑annually, or at more frequent intervals as determined by the
Commissioner, with the first report being due not later than 6 months
from the date of the receiver's appointment.
(Source: P.A. 84‑543.)
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(205 ILCS 105/10‑4) (from Ch. 17, par. 3310‑4)
Sec. 10‑4.
Expenses of receivership.
All expenses
incurred by reason of receivership,
including compensation to such receiver, accountants or clerical
assistants, and reasonable attorneys' fees, approved by the court,
shall be paid out of the assets of such association or trust.
(Source: P.A. 84‑543.)
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(205 ILCS 105/10‑5) (from Ch. 17, par. 3310‑5)
Sec. 10‑5.
Notice to creditors.
The receiver shall cause notice to be published calling on all persons
who may have claims against such association or trust to present the same
to such receiver and to make legal proof thereof, and the said claims shall
be presented to the court, and the allowance or disallowance of such claims
by the court in connection with said proceedings shall be deemed an
adjudication in a court of competent jurisdiction. After the expiration of
the time specified in such publication, the receiver shall file with the
Commissioner and with the clerk of the court a correct list of all
creditors and all members of the association or beneficiaries of the trust,
as shown by the books and records, who have not presented their claims, and
the amount of their respective claims, after allowing all just credits,
deductions and setoffs as shown by the books and records. Such claims so
filed shall be deemed proven, unless objections are filed thereto by any
parties interested therein within such time as shall be fixed by the court
and such notice of application for adjudication of such claims shall be
given as the court may direct.
(Source: P.A. 84‑543.)
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(205 ILCS 105/10‑6) (from Ch. 17, par. 3310‑6)
Sec. 10‑6.
Distribution by receiver.
Claims having a preference in law shall be given preference in payment;
except that no payment of less than $10.00 need be made until
final distribution. No distribution shall be made on claims for capital
until such preferred creditors have been paid or provided for in full, or
during the pendency of any suit unless sufficient funds are segregated to
pay any judgment which may be rendered in such suit. At any time after the
expiration of the published claim date and from time to time, the receiver
may make ratable distribution on all such claims as may have been proven to
the satisfaction of the receiver, or adjudicated in a court of competent
jurisdiction. Final distribution shall be made in accordance with the next
succeeding Section of this Article.
(Source: P.A. 84‑543.)
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(205 ILCS 105/10‑7) (from Ch. 17, par. 3310‑7)
Sec. 10‑7.
Final
distribution and dissolution by court.
When all assets have been liquidated and all claims and expenses have
been paid except for the final distribution, dissolution of the association
shall be accomplished in the following manner:
(a) The receiver shall file with the court the final report of his or her acts
and proposed final distribution;
(b) Upon the court's approval of the final report, the receiver shall
give such notice, and thereafter shall make final distribution, in such
manner as the court may direct;
(c) When final distribution has been made except as to any unclaimed
money, the receiver shall deposit such unclaimed money with the
Commissioner and shall deliver to the Commissioner all books of account and
other records, in the manner and for the purpose prescribed in the Section
of this Act concerning Final Distribution and Dissolution by Commissioner; and
(d) Upon completion of the foregoing procedure, and upon the petition of
the Commissioner (represented by the Attorney General) and the receiver,
the court may find that the association or trust should be dissolved; and
after such publication of notice of dissolution as the court may direct,
the court may enter a judgment of dissolution.
(Source: P.A. 84‑1308.)
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