LIQUIDATION
NY EN a national bank is to be placed in liquidation, the
Comptroller should be notified, as the initial step, so that the
proper blanks and instructions may be furnished. It is then cus-
tomary to call a meeting of the shareholders, and before liquidation
proceedings may go farther, the proposal must receive the affirma-
tive vote of the owners of two-thirds of the bank’s stock.
After the adoption of the resolution for liquidation, the directors
cause notice of the fact to be certified, under seal of the bank, to the
Comptroller by the president or cashier. Also, notice of the pro-
posed liquidation, requesting creditors to present their claims against
the bank for payment, must appear for a period of two months in a
newspaper published in New York City, and also in a newspaper
published in the place where the bank is located. Weekly papers may
be used.
Lawful money to provide for the redemption of circulation must
be deposited with the Treasurer of the United States within six
months from the date of liquidation.
These requirements having been met, Federal law ceases to gov-
ern, and the affairs of the bank pass into the hands of its shareholders,
for settlement in whatever legal way may be deemed advisable. It
is usual, however, for the shareholders to appoint a liquidating agent
or committee, and to require the agent or committee to render semi-
annual reports to the Comptroller showing the progress of the liquida-
tion until it is completed. Forms for these reports are furnished by the
Comptroller’s office, and although this office has no authority to
compel rendering of such reports, it is obviously to the advantage of
all parties concerned that an official record of the liquidation pro-
reedings should be on file.
Officers of a bank in liquidation have no authority to bind the
shareholders except in transactions arising directly from the closing
of the bank’s affairs, unless such authority is expressly conferred
by the shareholders.
Any shareholder who is dissatisfied with the manner in which the
liquidation is being conducted, may go into court and ask for the
appointment of a receiver.
LR
