2019 US Virgin Islands Code
Title 9 - Banking
Chapter 13 - Receivership and Liquidation
§ 153. Dissolution and liquidation
Causes for dissolution
(a) Banks shall be dissolved because of the expiration of the term fixed for their duration, or because one-third or more of the capital of the corporation has been lost, or by resolution of the holders of two-thirds of the capital stock, adopted at a meeting specially called for that purpose as herein provided.
Notice to Banking Board; publication of notice to creditors
(b) Whenever it is decided to place a bank in liquidation it shall be the duty of the Board of Directors to cause the fact to be certified by its president, manager, agent or cashier to the Banking Board, and to cause the daily publication of a notice, for a period of two months, in a newspaper published in the judicial division in which the bank is located, if there is any such newspaper, said notice to be to the effect that the bank is in liquidation and notifying its creditors to present to the bank their claims for payment.
Powers during liquidation
(c) During the period of liquidation of a bank, the directors thereof shall make no new contracts or obligations unless authorized to do so by the Banking Board, their powers being limited, as liquidators, to the collection of debts, extinguishment of obligations as they mature, and performance of such operations as may then be pending.
Inventory; balance
(d) Within thirty days after the beginning of the period of liquidation of a bank, the liquidators thereof shall take an inventory of the assets and liabilities, and shall strike a balance, a copy of which shall be sent by mail to the Banking Board and to each stockholder, and shall submit the same to a general meeting of stockholders for their examination.
Bond and compensation of liquidators
(e) Before entering into the discharge of their duties as such, the liquidators shall furnish such bond as may be fixed by the Banking Board, and the stockholders shall fix the compensation to be paid to the said liquidators for their services.
Monthly balances; publication
(f) The liquidators shall make a monthly balance of the condition of the liquidation, and the last of said balances shall be published every six months in a newspaper of general circulation in each judicial division of the United States Virgin Islands.
Liability of liquidators
(g) Said liquidators shall be answerable to the stockholders for any loss that the bank may suffer through fraud or negligence in the discharge of their duties.
Dividends
(h) As soon as the condition of the liquidation shall permit of the declaration of one or more partial dividends of 10 percent of the capital of the bank, the liquidators shall make the apportionment and payment thereof to the stockholders. The final dividend may be less than 10 percent.
Rights of stockholders
(i) Stockholders shall have the right to demand from the liquidators any information of interest to them as to the liquidation and pending operations of the bank; but they may not demand a distribution of the capital of the bank until all the obligations thereof shall have been satisfied, or the amount of the said obligations has been provided for in a manner satisfactory to the Banking Board, if the same cannot be paid in cash.
Meetings of stockholders
(j) During the term of liquidation of a bank, the provisions of its bylaws shall be observed as regards calling regular and special general meetings of stockholders for the purpose of reporting the progress of the liquidation and taking such action as may be deemed best for the interest of all concerned.
Books and papers
(k) The books and papers of a bank in liquidation shall remain under the custody of the liquidators until the full liquidation and settlement with each and every person interested in any way in the assets thereof has been made, after which they shall be finally filed as the Banking Board may direct.
Foreign banks excepted
(l) This section shall not apply to foreign banks.
