New Jersey § 17:9a-272

§ 17:9a-272.

A. While in possession of the business and property of a bank, the commissioner may,

in the name of the bank (1) Continue the business of the bank in all its aspects, including, in the case of

a qualified bank, the exercise of its fiduciary and agency powers; except that the

commissioner may not (a) Make loans other than loans for which there are outstanding commitments and loans

wholly or partly renewing obligations to the bank outstanding when possession is taken; (b) Invest the funds of the bank or of any fiduciary account other than in obligations

of the United States or of this State, or in obligations unconditionally guaranteed

both as to principal and interest by the United States or this State; (c) Permit withdrawals from or charges against the account of a depositor, except

to the extent that deposits are made after the commissioner takes possession; or (d) Pay claims of creditors, other than depositors, arising prior to the taking of

possession, except as provided in sections two hundred eighty-four and two hundred

eighty-six; 1 (2) Demand, sue for, collect, receive, and take into his possession all the bank's

real and personal property, including the power to sue for and recover any property

transferred in fraud of the bank's creditors; (3) Compound and settle with any of the bank's debtors or creditors, or with persons

having possession of its property, or in any way responsible to the bank, and extend

the time for payment of any obligation owing to the bank, upon such terms and conditions

as he shall deem just and beneficial to the bank; (4) Make or allow proper set-offs; (5) Sell, assign, transfer, or convey all or any part of the real and personal property

of the bank; (6) Prosecute or defend any action or proceeding to which the bank is a party; (7) Execute, acknowledge, and deliver any deed, assignment, release, agreement, warrant

to cancel a mortgage or other lien, or other instrument necessary or appropriate to

effect any sale of real or personal property, or to compromise or compound any claim,

or to restore to any person any property deposited or transferred as security for

the payment of a debt or the performance of an obligation, upon the payment of the

debt or the performance of the obligation, or which is necessary or appropriate to

effect any other power which the commissioner is authorized to exercise in respect

to the business and property of such bank. Any deed or other instrument so executed and delivered shall be valid and effectual

for all purposes as though executed and delivered by the officers of the bank by authority

of its board of directors; (8) Do all acts necessary or appropriate to conserve the property and business of

the bank. B. The commissioner shall have the power, while in possession of the property and

business of a bank, to subpena any person to testify concerning the property and business

of the bank, as in the manner provided in sections two hundred sixty and two hundred

sixty-one. 2 Any person so subpenaed shall be subject to the provisions of sections two hundred

sixty-two and two hundred sixty-three. 3 C. While in possession of the business and property of a bank pursuant to Section

269, subsection A of this act, 4 the commissioner may, upon application to the Superior Court, Chancery Division,

and without notice to or approval of the stockholders of said bank, enter into a plan

or agreement in the name of said bank whereby all or any part of said bank's liabilities

and fiduciary relationships would be assumed by one or more banking institutions and

all or any part of said bank's assets and business would be purchased by one or more

banking institutions. To facilitate the consummation of such plan or agreement, the commissioner may,

in the name of said bank, borrow money from the Federal Deposit Insurance Corporation

and pledge or assign all or any part of said bank's assets as security for the money

so borrowed; sell all or any part of said bank's assets, real or personal, to one

or more banking institutions or to the Federal Deposit Insurance Corporation; and

transfer to another banking institution all or any part of the money borrowed from

the Federal Deposit Insurance Corporation in consideration of such banking institution's

agreement to assume and pay the liabilities and fiduciary relationships of the bank

in whose name the commissioner is acting. D. While in possession of the property and business of a bank, the commissioner may

offer to the Federal Deposit Insurance Corporation, or its successor, appointment

as receiver of such bank. In the event the Federal Deposit Insurance Corporation, or its successor, accepts

such appointment, it shall have and be authorized to exercise all rights, powers and

privileges now possessed or hereafter granted to the commissioner by this article;

it shall have all rights, powers and privileges now possessed or hereafter granted

to a receiver by the laws of this State; and it shall be under the exclusive jurisdiction

of the Superior Court. 1

N.J.S.A. §§ 17:9A-284, 17:9A-286. 2

N.J.S.A. §§ 17:9A-260, 17:9A-261. 3

N.J.S.A. §§ 17:9A-262, 17:9A-263. 4

N.J.S.A. § 17:9A-269.