Printable Format9-1906. Receiver to take charge of assets; order of payment. (a) A receiver appointed pursuant to K.S.A. 9-1905, and amendments thereto, other than the federal deposit insurance corporation, shall take charge of any bank or trust company and all of the bank's or trust company's assets and property, and liquidate the affairs and business thereof for the benefit of the depositors, creditors and stockholders of the bank or trust company. The receiver may sell all the property of the bank or trust company upon such terms as the district court of the county where the bank or trust company is located shall approve. The receiver shall pay over all moneys received to the creditors and depositors of such bank or trust company.
(b) In distributing assets of the bank or trust company in payment of its liabilities, the order of payment, in the event its assets are insufficient to pay in full all of its liabilities, shall be by category as follows:
(1) The costs and expenses of the receivership and real and personal property taxes assessed against the bank or trust company pursuant to applicable law;
(2) claims which are secured or given priority by applicable law;
(3) claims of unsecured depositors;
(4) all other claims exclusive of claims on capital notes and debentures; and
(5) claims on capital notes and debentures.
Should the assets be insufficient for the payment in full of all claims within a category, such claims shall be paid in the order provided by other applicable law or, in the absence of such applicable law, pro rata.
History: L. 1947, ch. 102, § 114; L. 1985, ch. 59, § 1; L. 1988, ch. 63, § 1; L. 1993, ch. 7, § 6; L. 2015, ch. 38, § 121; L. 2016, ch. 54, § 54; July 1.
Source or prior law:
9-130.
Attorney General's Opinions:
Definitions; supervised lender; supervised financial organization. 84-11.
Dissolution; insolvency; receiver in charge of assets; distribution. 85-112.
Liability of FDIC for personal property taxes owed at time state bank failed. 86-67.
Authority of FDIC as receiver of a failed bank. 86-80.
Powers; K.S.A. 9-525 and 9-526. 86-134.
Insolvency — receiver to take charge of assets; order of payment. 88-163.
CASE ANNOTATIONS
1. District court dismissed action of insolvent bank's borrowers for lack of standing hereunder; issue not considered on appeal. Thompson v. Federal Deposit Ins. Corp., 241 Kan. 328, 329, 736 P.2d 914 (1987).
2. Debtor barred from setting off amount of promissory note by amount insolvent bank owed in letter of credit. Federal Deposit Ins. Corp. v. Miller, 659 F. Supp. 388, 390 (1987).
3. Debtor of failed bank not entitled to "setoff" by unsecured debt owed him by bank. Federal Deposit Ins. Corp. v. Miller, 671 F. Supp. 1286, 1290 (1987).
4. Fact defendants were stockholders as well as directors of failed bank did not prevent FDIC from bringing suit. Federal Deposit Ins. Corp. v. Ashley, 754 F. Supp. 179, 182 (1990).
5. Whether FDIC's failure to approve bank merger was a breach of duty imposed by state law examined. In re Liquidation of Cedar Vale State Bank, 257 Kan. 497, 501, 506, 894 P.2d 816 (1995).