New Jersey § 17:9-45

§ 17:9-45.

When the commissioner determines that an event of default has occurred, he shall proceed

in the following manner: a. Within 20 days after the occurrence of the event of default, he shall ascertain

the amount of public funds on deposit in the defaulting depository as disclosed by

its records and the amount thereof covered by federal deposit insurance and certify

the amounts thereof to each affected governmental unit; b. Within 10 days after receipt of such certification, each such governmental unit

shall furnish to the commissioner verified statements of its public deposits in such

defaulting depository as disclosed by its records; c. Upon receipt of such certificate and statements, he shall ascertain and fix the

amount of such public funds on deposit in such defaulting depository, net after deduction

of any deposit insurance; d. He shall ascertain the amount derived or to be derived from the liquidation of

the collateral maintained by the defaulting depository pursuant to section 4 of this

act, and shall distribute such proceeds pro rata among the governmental units affected

to the extent necessary to satisfy the net deposit liabilities to such governmental

units; e. If the proceeds of the sale of the collateral of a defaulting depository which

is a State bank, a national bank , a savings bank , or a credit union are insufficient to pay in full the net deposit liability of such depository to all

affected governmental units, he shall assess the deficiency against all other such

public depositories having public funds on deposit as of the occurrence of the event

of default in the proportion that the maximum liability of each such other public

depository bears to the aggregate of the maximum liabilities of all such other depositories,

but no such assessment shall exceed the maximum liability of any such other depository; f. If the proceeds of the sale of the collateral of a defaulting depository which

is an association are insufficient to pay in full the net deposit liability of such

depository to all affected governmental units, he shall assess the deficiency against

all such other public depositories having public funds on deposit as of the occurrence

of the event of default in the proportion that the maximum liability of each such

other public depository bears to the aggregate of the maximum liabilities of all such

other depositories, but no such assessment shall exceed the maximum liability of any

such other depository; g. Assessments so made by the commissioner shall be payable on the fifth day following

the demand therefor by the commissioner. On default of such payment by any such other public depository, the commissioner

shall take possession of and liquidate so much of the eligible collateral maintained

by such depository as shall be necessary to satisfy the assessment so made. If the proceeds of the liquidation of the eligible security are insufficient to

pay such assessment in full, the commissioner may sue to recover the amount of the

deficiency within the limits of the depository's maximum liability. h. All sums so collected by the commissioner shall be paid by him to the governmental

units having deposits in the defaulting depository in the proportion that the net

deposit liability to each such governmental unit bears to the aggregate of the net

deposit liabilities to all such governmental units; i. No State bank, national bank , savings bank , or credit union shall be liable with respect to the occurrence of an event of default of an association,

and no association shall be liable with respect to the occurrence of an event of default

of a State bank, a national bank , a savings bank , or a credit union .