Section 36A: Appointment of conservator; powers and duties; compensation; termination; equity jurisdiction of supreme court
Section 36A. In addition to all other powers conferred upon the commissioner by law, whenever said commissioner considers it necessary to conserve the assets of any bank for the benefit of the depositors and creditors thereof, said commissioner may, under his hand and official seal, appoint a conservator for such bank, and require of such conservator such bond and security as said commissioner may consider proper.
A certificate of the appointment of such conservator shall forthwith be filed in the office of said commissioner. The conservator, with the approval of said commissioner, may procure such expert assistance and advice as necessary in the administration of the affairs of such bank and with like approval may retain such of the officers and employees of such bank as said conservator considers necessary.
The conservator, under the direction and subject to the control of said commissioner, shall take possession forthwith of the property and business of such bank and take such action necessary to carry on its business and to conserve its assets, pending further disposition thereof, as provided by law.
Upon taking possession of the property and business of a bank, the conservator shall forthwith give notice thereof to all persons holding or having possession of any assets of such bank. No bank, trust company, association, firm or individual, knowing that a conservator has taken such possession, or having been notified thereof as aforesaid, shall have a lien or charge for any payment advance or clearance thereafter made, or liability thereafter incurred, against any of the assets of the bank of whose property and business the conservator shall have taken possession as aforesaid, except as otherwise provided in this section.
During the time such conservator remains in possession of such bank the rights of all parties with respect thereto shall, subject to the other provisions of this section, be the same as if said commissioner had taken possession of such bank.
Such conservator, subject to such orders, rules and regulations as may be prescribed from time to time by said commissioner, may collect moneys due to the bank, and do all acts necessary to continue its business or to conserve its assets. Such conservator shall collect all debts due and claims belonging to it, and with the approval of the commissioner, may sell or compound all bad or doubtful debts, and on like approval may sell all, or any part of, the real and personal property of the bank on such terms as said commissioner shall approve; and, in the name of such bank may take a mortgage on such real property from a bona fide purchaser to secure the whole or a part of the purchase price, upon such terms and for such periods as said commissioner may approve.
To execute and perform the powers and duties conferred upon him, the conservator may, in the name of any such bank prosecute and defend all suits and other legal proceedings and may, in the name of the bank, execute, acknowledge and deliver all deeds, assignments, releases and other instruments necessary and proper to effectuate any sale of real or personal property or any compromise approved by the commissioner; and any deed or other instrument executed pursuant to the authority hereby given, shall be valid and effective for all purposes to the same extent as though executed by the officers of the bank by authority of its board of directors or of its stockholders.
Such conservator, and his assistants, shall be subject to all the penalties, and except as provided in this section to all other provisions of law, to which agents appointed by said commissioner for the purpose of liquidating the affairs of a bank are subject.
While a bank in the hands of a conservator, said commissioner may require the conservator to set aside and make available for withdrawal by depositors and for payment to other creditors such amounts or proportions of their deposits or claims in any department thereof as said commissioner may deem necessary or expedient and may authorize the conservator to receive new deposits, as provided in section 3 of chapter 59 of the acts of 1933.
Whenever any bank shall have resumed business with or without a reorganization, or whenever said commissioner shall have taken possession of its property or business as provided in section 22 of chapter 167, the provisions of section 3 of chapter 59 of the acts of 1933 with respect to the segregation of new deposits received under this section shall no longer apply and the deposits received thereunder shall be disposed of in such manner as said commissioner shall direct, unless the owner of any such deposit, within 15 days after notice given by the conservator or the commissioner in such manner as said commissioner shall prescribe, shall have withdrawn the same.
The compensation of the conservator and of counsel, employees and assistants and all other expenses of such conservatorship, including costs and expenses incurred by said commissioner in relation to such bank, shall be fixed by said commissioner and approved by the governor and paid out of the funds of such bank; provided, however, that the compensation paid the conservator shall in no event be at a higher rate than the highest salary established in said bank and that the total payroll of the bank at the time of the appointment of the conservator shall not be increased by reason of such compensation; and provided, further, that said commissioner may, subject to approval of the governor, upon the written request of any such bank increase the compensation of the conservator for good cause to an amount not to exceed an additional 50 per cent of the compensation paid to the chief executive officer of that bank.
If said commissioner is satisfied that it may be safely done and that it would be in the public interest, he may terminate the conservatorship and permit such bank to resume business subject to such terms, conditions, restrictions or limitations as he may prescribe.
Nothing contained in this section shall, unless otherwise expressly provided herein, be deemed to abridge any power or authority to take possession of a bank conferred upon said commissioner by this chapter or any power or authority conferred by any other provision of law.
The supreme judicial court, or any justice thereof, shall have jurisdiction in equity to enforce the provisions of this section, and to act upon all applications and in all proceedings thereunder.