§ 53-383. Collection of debts and claims; Commissioner succeeds to all property of the State trust company. - North Carolina Statutes

§ 53‑383.  Collection ofdebts and claims; Commissioner succeeds to all property of the State trustcompany.

(a)        Upon takingpossession of the assets and business of any State trust company, theCommissioner is authorized to collect all money due the State trust company andto do any other acts necessary to conserve its assets and property. TheCommissioner shall collect all debts due and claims belonging to the Statetrust company, and by order of the court may sell, compromise, or compound anybad or doubtful debt or claim or sell the real and personal property of theState trust company on any terms provided by the order. Where the sale is madeunder power contained in any mortgage or lien bond or other paper wherein thetitle is retained for sale and the terms of sale set out, sale may be madeunder that authority.

(b)        Upon takingpossession of any State trust company under the provisions of this section, theCommissioner shall have the possession and the right to the possession of allthe property, assets, choses in action, rights, and privileges of the Statetrust company. The property rights and privileges shall vest in theCommissioner absolutely for the purpose of liquidating, selling, or conveyingthe property rights and privileges, together with all other incidental rights,privileges, and powers necessary for the right of conveyance and sale.

(c)        Upon takingpossession of any State trust company under the provisions of this section, theCommissioner shall administer each account of the State trust company on atemporary basis until either (i) a successor to the State trust company isappointed or the account is terminated in the manner provided by the terms ofits governing instrument consistent with applicable law, or by applicable lawin the absence of a provision in the governing instrument, or (ii)  theCommissioner has granted the State trust company permission to resume businessunder the provisions of G.S. 53‑381. The Commissioner may takeappropriate steps for the appointment of successors or termination of accountsas the Commissioner deems necessary as to some or all of the accounts of theState trust company. If the governing instrument or other applicable law do notprescribe methods for appointing successors, or if the methods prescribed areunfeasible, the applicable law for appointment of a successor shall be as setforth in G.S. 53‑399.

(d)        The officers anddirectors of any State trust company that is in the possession of theCommissioner under this Part shall not exercise any powers declared by thisSubpart to be vested in the Commissioner. (2001‑263, s. 1.)