Colorado § 11-103-807 - Enforcement of directors' liability.

§ 11-103-807. Enforcement of directors' liability.

Among its other powers, the federal deposit insurance corporation, in the performance of its powers and duties as such liquidator, has the right and power, upon the order of a court of record of competent jurisdiction, to enforce the individual liability of the directors of any such banking institution.

Source: L. 2003: Entire article added with relocations, p. 1108, § 3, effective July 1.

Editor's note: This section is similar to former § 11-5-107 as it existed prior to 2003.

ANNOTATION

Annotator's note. Since § 11-103-807 is similar to § 11-5-107 as it existed prior to the 2003 recodification of the "Colorado Banking Code", articles 101 to 109 of title 11, relevant cases construing that provision have been included in the annotations to this section.

This section applies only when the FDIC is acting as a liquidator or receiver. It did not apply after the court substituted FDIC-corporate as plaintiff in place of FDIC-receiver. FDIC v. Isham, 777 F. Supp. 828 (D. Colo. 1991).

General statutory mandate to collect and distribute assets of failed banks is insufficient to establish a public policy regulating the nature and extent of insurance coverage on claims of the bank such as to render an exclusion of claims asserted by the federal deposit insurance corporation void as against public policy. FDIC v. Bowen, 824 P.2d 41 (Colo. App. 1991).

Regulatory exclusion contained in directors' and officers' liability insurance policy is contrary to the public policy expressed in state banking law and undermines the authority and responsibility that such law vests in the FDIC as liquidator of a state-chartered insolvent bank for protecting the interests of the bank's depositors, creditors, and stockholders by making equitable payment to them out of the bank's assets as compensation for losses caused by the negligence and breach of fiduciary duty of the bank's former directors. FDIC v. Am. Cas. Co., 841 P.2d 1285 (Colo. 1992).