2013 New York Consolidated Laws
BNK - Banking
Article 13 - (600 - 634) MERGER; VOLUNTARY DISSOLUTION; SUPERINTENDENT'S TAKING POSSESSION; REORGANIZATION; LIQUIDATION
627 - Dividends to creditors; distributions to stockholders; dissolution; destruction of documents.

 
    § 627.   Dividends   to   creditors;  distributions  to  stockholders;
  dissolution; destruction of documents. 1. At any  time  after  the  date
  fixed  by  the  superintendent  for  the  presentation  of  claims,  the
  superintendent may, upon an order of the supreme court, declare and  pay
  out  of  the  funds  remaining  in his or her hands after the payment of
  expenses, one or more dividends to creditors whose  claims  or  accounts
  payable  have  been  accepted  or  otherwise  duly  established.  If the
  superintendent intends to declare and pay  more  than  one  dividend  to
  creditors,  at  the  time  he  or  she  declares and pays out such first
  dividend to creditors, the superintendent may pay in full  those  claims
  and  accounts payable that were accepted, or otherwise duly established,
  in an amount that is less than one hundred dollars;  provided,  however,
  that  this  sentence  shall  not  be construed as a right to priority of
  payment; and provided further, that if the superintendent  will  not  be
  able  to  satisfy  in  full  all other creditors with accepted claims or
  accounts payable either in the first or succeeding dividends, then  such
  payment  may  not be made. After a dividend or dividends aggregating one
  hundred per centum of the  principal  amount  of  all  such  claims  and
  accounts  payable  shall  have  been paid or set apart, and if funds are
  available therefor, a  further  dividend  or  dividends  on  account  of
  interest  accruing,  on  such claims and accounts payable, subsequent to
  the commencement of the liquidation may, at the sole discretion  of  the
  superintendent,  be paid to the creditors entitled thereto at a rate not
  to exceed four per centum per annum, but nothing herein shall be  deemed
  to  create  any right to interest which would not otherwise accrue or be
  payable. No creditor shall be entitled to receive nor be  paid  interest
  on  any  dividend  or  dividends  by  reason of delay in payment of such
  dividend or dividends. Dividends remaining unclaimed or  unpaid  in  the
  hands  of  the  superintendent  for  six months after payment of a final
  dividend, shall be deposited as provided in article two of this  chapter
  except  that  if,  after  payment of such a dividend, the liquidation is
  continued in accordance with the provisions of subdivision two  of  this
  section,  then  such dividends shall be so deposited simultaneously with
  the like deposit of unclaimed or unpaid distributive amounts pursuant to
  the provisions of such subdivision at the expiration of six months after
  a final distribution.
    2. Whenever the superintendent shall have (a) paid to,  or  set  apart
  for,  each  creditor  of  any  stock  corporation whose claim or account
  payable has been accepted or otherwise duly established, a  dividend  or
  dividends  aggregating  the full amount of such claim or account payable
  together with interest thereon, and (b) set aside  proper  reserves  for
  claims and accounts payable in litigation and not finally determined and
  for such other purposes as in the discretion of the superintendent shall
  be necessary or desirable, and (c) paid all the expenses of liquidation,
  the  superintendent  shall,  if  there be assets remaining in his or her
  hands, continue the liquidation of the affairs of such  corporation  and
  after  paying  the  expenses  thereof, distribute the proceeds, together
  with any part of the foregoing reserves not  finally  necessary  to  pay
  creditors  and  expenses  in  full, among the persons equitably entitled
  thereto according to their respective rights and interests and  in  such
  manner  and  upon such notice as may be directed by order of the supreme
  court. Any such distributive amounts remaining unpaid  or  unclaimed  in
  the   hands   of  the  superintendent  for  six  months  after  a  final
  distribution shall be deposited by the  superintendent  as  provided  in
  article two of this chapter.
    3.   Upon   the  petition  by  the  superintendent  showing  that  the
  liquidation of a corporate banking organization of which  he  has  taken
  possession  has been completed and upon such notice as the supreme court

  may prescribe, the court may, on such terms as justice requires, make an
  order declaring such corporation dissolved and the  corporate  existence
  thereof terminated. Upon the filing of a certified copy of such order in
  the  office  of  the  superintendent,  the existence of such corporation
  shall cease and determine.
    4.  Any  records,  documents  and  correspondence   of   any   banking
  organization  of  which  the superintendent has taken possession and any
  records,  documents  and  correspondence   in   the   custody   of   the
  superintendent  relating to the liquidation of such banking organization
  may be destroyed or otherwise disposed of at such time or times  and  in
  such manner as the supreme court by order may authorize.