LD 949
pg. 6
Page 5 of 14 An Act To Enhance the Supervisory Powers of the Department of Professional and ... Page 7 of 14
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LR 444
Item 1

 
4.__Sale of segregated investments.__Investments segregated under
subsection 2 may be sold or exchanged for other securities or
investments by a vote of the members of the governing body of the
financial institution but must be sold when so ordered by the
conservator or the superintendent.__All money received from the
sales of or as income from the securities or investments must be
entered into a special account and held by the financial
institution for the benefit of the depositors or members whose
deposits were reduced under subsection 3, to be disposed of as
provided in subsection 5.

 
5.__Repayment of reductions.__ The members of the governing
body of a financial institution from time to time may, and when
directed by the superintendent shall, declare pro rata dividends
of money received as provided in subsection 4 to be distributed
among the depositors or members whose deposits were reduced under
subsection 3, payable to those who would then have been entitled
to receive the sums deducted if the sums had continued to be
included in the reduced deposits, and payable as other dividends
are paid.

 
A.__Any depositor or member whose deposit was reduced, any
holder of a certificate issued pursuant to subsection 3,
paragraph B or the financial institution may file a
complaint with the superintendent after one year from the
date of the reduction for an order of distribution whenever
the condition of the financial institution, taking into
account the rights of creditors and of preferred
stockholders, if any, warrants the payment.

 
B.__The superintendent may at any time declare the repayment
under paragraph A to be final.

 
6.__Conservator continuing business.__The conservator may
continue to operate the financial institution in accordance with
the following conditions and limitations.

 
A.__All depositors, members and investors of the financial
institution may continue to make payments to the financial
institution in accordance with the terms and conditions of
their contracts.

 
B.__The conservator may set aside and make available for
withdrawal by depositors or members and payment to other
creditors on a ratable basis the amounts as in the opinion
of the superintendent may safely be used for that purpose.

 
C.__The conservator may receive deposits under the following
limitations.__The deposits:


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