New York Laws
Article 13 - Merger; Voluntary Dissolution; Superintendent's Taking Possession; Reorganization; Liquidation
627 - Dividends to Creditors; Distributions to Stockholders; Dissolution; Destruction of Documents.

§ 627. Dividends to creditors; distributions to stockholders;
dissolution; destruction of documents. 1. At any time after the date
fixed by the superintendent for the presentation of claims, the
superintendent may, upon an order of the supreme court, declare and pay
out of the funds remaining in his or her hands after the payment of
expenses, one or more dividends to creditors whose claims or accounts
payable have been accepted or otherwise duly established. If the
superintendent intends to declare and pay more than one dividend to
creditors, at the time he or she declares and pays out such first
dividend to creditors, the superintendent may pay in full those claims
and accounts payable that were accepted, or otherwise duly established,
in an amount that is less than one hundred dollars; provided, however,
that this sentence shall not be construed as a right to priority of
payment; and provided further, that if the superintendent will not be
able to satisfy in full all other creditors with accepted claims or
accounts payable either in the first or succeeding dividends, then such
payment may not be made. After a dividend or dividends aggregating one
hundred per centum of the principal amount of all such claims and
accounts payable shall have been paid or set apart, and if funds are
available therefor, a further dividend or dividends on account of
interest accruing, on such claims and accounts payable, subsequent to
the commencement of the liquidation may, at the sole discretion of the
superintendent, be paid to the creditors entitled thereto at a rate not
to exceed four per centum per annum, but nothing herein shall be deemed
to create any right to interest which would not otherwise accrue or be
payable. No creditor shall be entitled to receive nor be paid interest
on any dividend or dividends by reason of delay in payment of such
dividend or dividends. Dividends remaining unclaimed or unpaid in the
hands of the superintendent for six months after payment of a final
dividend, shall be deposited as provided in article two of this chapter
except that if, after payment of such a dividend, the liquidation is
continued in accordance with the provisions of subdivision two of this
section, then such dividends shall be so deposited simultaneously with
the like deposit of unclaimed or unpaid distributive amounts pursuant to
the provisions of such subdivision at the expiration of six months after
a final distribution.

2. Whenever the superintendent shall have (a) paid to, or set apart
for, each creditor of any stock corporation whose claim or account
payable has been accepted or otherwise duly established, a dividend or
dividends aggregating the full amount of such claim or account payable
together with interest thereon, and (b) set aside proper reserves for
claims and accounts payable in litigation and not finally determined and
for such other purposes as in the discretion of the superintendent shall
be necessary or desirable, and (c) paid all the expenses of liquidation,
the superintendent shall, if there be assets remaining in his or her
hands, continue the liquidation of the affairs of such corporation and
after paying the expenses thereof, distribute the proceeds, together
with any part of the foregoing reserves not finally necessary to pay
creditors and expenses in full, among the persons equitably entitled
thereto according to their respective rights and interests and in such
manner and upon such notice as may be directed by order of the supreme
court. Any such distributive amounts remaining unpaid or unclaimed in
the hands of the superintendent for six months after a final
distribution shall be deposited by the superintendent as provided in
article two of this chapter.

3. Upon the petition by the superintendent showing that the
liquidation of a corporate banking organization of which he has taken
possession has been completed and upon such notice as the supreme court

may prescribe, the court may, on such terms as justice requires, make an
order declaring such corporation dissolved and the corporate existence
thereof terminated. Upon the filing of a certified copy of such order in
the office of the superintendent, the existence of such corporation
shall cease and determine.

4. Any records, documents and correspondence of any banking
organization of which the superintendent has taken possession and any
records, documents and correspondence in the custody of the
superintendent relating to the liquidation of such banking organization
may be destroyed or otherwise disposed of at such time or times and in
such manner as the supreme court by order may authorize.