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| 1.__Appointment of conservator.__Whenever, in the judgment of the | | superintendent, because of unsafe or unsound practice in conducting | | the business of a financial institution or other potentially | | hazardous condition, it is necessary to conserve or revalue the | | assets of the financial institution or to reorganize and put into | | sound condition the financial institution for the benefit of | | depositors, beneficiaries of fiduciary accounts, creditors or the | | public, the superintendent may issue an order describing the | | unsafe, unsound or other hazardous condition and appointing one or | | more conservators for the financial institution, who shall endeavor | | promptly to remedy the condition or conditions stated in the order. |
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| | | A.__The superintendent may require a bond as the | | superintendent determines proper and issue orders as | | necessary to carry out the provisions of this section.__The | | superintendent may appoint a deputy superintendent or other | | person, including the federal corporation insuring the | | financial institution's accounts pursuant to section 422, as | | conservator. |
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| | | B.__A conservator, in addition to the powers set forth | | elsewhere in this chapter and other powers authorized in an | | order of the superintendent, has all the rights, powers, | | privileges and authority possessed by the officers, | | governing body, corporators, members and investors of the | | financial institution, including the power to remove any | | officer or member of the governing body if the order of | | removal is approved in writing by the superintendent.__The | | conservator may, in the name of the financial institution: |
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| | | (1)__Prosecute and defend all suits and other legal | | proceedings; and |
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| | | (2)__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 | | superintendent.__Any deed or other instrument executed | | pursuant to this subparagraph is valid and effective | | for all purposes to the same extent as though fully | | authorized by the financial institution. |
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| | | C.__If a deputy superintendent or other employee of the bureau is | | appointed conservator, no additional compensation need be paid, | | but any reasonable and necessary expenses as conservator, | | including expenses for assistants and counsel, must be paid by | | the financial institution.__If a person other than an employee of | | the bureau is appointed |
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