Mississippi § 81-25-171 - Authority of commissioner to seize property.

§ 81-25-171. Authority of commissioner to seize property.

If the commissioner finds that any of the factors set forth in Section 81-25-167 are true with respect to any foreign bank which is licensed to establish and maintain a Mississippi state branch or Mississippi state agency and that it is necessary for the protection of the interests of the creditors of such foreign bank’s business in the State of Mississippi or for the protection of the public interest that he or she take immediate possession of the property and business of the foreign bank, the commissioner may by order forthwith take possession of the property and business of the foreign bank in the State of Mississippi and retain possession until the foreign bank resumes business in the State of Mississippi or is finally liquidated. The foreign bank may, with the consent of the commissioner resume business in the State of Mississippi upon such conditions as the commissioner may prescribe by regulation or order. At any time within ten (10) days after the commissioner has taken possession of the property and business of a foreign bank pursuant to subsection (1) of this section, such foreign bank may petition the Chancery Court of Hinds County, Mississippi, for an order requiring the commissioner to show cause why he or she should not be enjoined from continuing such possession. The court may, upon good cause being shown, direct the commissioner to refrain from further proceedings and to surrender such possession. The judgment of the court may be appealed by the commissioner or by the foreign bank in the manner provided by law for appeals from a judgment of Chancery Court of the State of Mississippi. Where the commissioner appeals the judgment of the court, such appeal shall operate as a stay of the judgment and a reinstatement of the commissioner’s possession. The commissioner shall not be required to post any bond. Whenever the commissioner takes possession of the property and business of a foreign bank pursuant to subsection (1) of this section, he or she shall conserve or liquidate the property and business of such foreign bank pursuant to the laws of the State of Mississippi as if the foreign bank were a Mississippi state bank, with absolute preference and priority given to the creditors of such foreign bank arising out of transactions with, and recorded on the books of, its Mississippi state branch or Mississippi state agency over the creditors of such foreign bank’s offices located outside the State of Mississippi. When the commissioner has completed the liquidation of the property and business of a foreign bank, the commissioner shall transfer any remaining assets to such foreign bank in accordance with such orders as the court may issue. However, in case the foreign bank has an office in another state of the United States which is in liquidation and the assets of such office appear to be insufficient to pay in full the creditors of that office, the court shall order the commissioner to transfer to the liquidator of that office such amount of any such remaining assets as appears to be necessary to cover such insufficiency; if there are two (2) or more such offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to the offices, the court shall order the commissioner to distribute the remaining assets among the liquidators of such offices in such manner as the court finds equitable.