Preservation of Assets; Proceedings in Lieu of Attachment, Execution, or Repossession

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Financial Institutions
  5. Provisions Applicable to Department of Banking and Finance and Financial Institutions Generally
  6. Claims, Priorities, and Accounting in Receiverships
  7. Preservation of Assets; Proceedings in Lieu of Attachment, Execution, or Repossession

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  1. The status of all parties shall become fixed on the date the department takes possession of a financial institution. No corporation or person shall thereafter acquire any lien or charge against the financial institution for so long as it remains in receivership, provided that nothing in this Code section or elsewhere in this chapter shall be construed to impair any preferred claim arising pursuant to Code Section 11-4-214.
  2. No execution, attachment, or repossession (whether by action or otherwise) shall issue or be proceeded with against any assets owned by or in the custody or possession of a financial institution in receivership. In lieu of the right to issue an attachment or execution against assets of or lawfully in the possession or custody of the financial institution, a plaintiff may proceed by giving written notice of his claim to the department or to the deputy receiver of such financial institution; and he shall thereafter prove his claim in the regular manner prescribed by this chapter. If, in filing its account, the department rejects the claimed right to execution or attachment, the court shall adjudicate the matter as in the case of other disputed claims.

(Ga. L. 1919, p. 135, art. 7, § 3; Code 1933, § 13-803; Code 1933, § 41A-801, enacted by Ga. L. 1974, p. 705, § 1.)

RESEARCH REFERENCES

C.J.S.

- 9 C.J.S., Banks and Banking, § 181.

ALR.

- Deposits on interest as waiver of state's priority, 42 A.L.R. 1296.

Trust or preference in assets of insolvent bank in respect of proceeds of collection as affected by notice or instructions with respect to collection, 90 A.L.R. 6.

Bank conservators, 107 A.L.R. 1431.

Rights and preferences in respect of assets of insolvent bank as affected by its division into departments, 114 A.L.R. 680.

Payment of depositor's debt to insolvent bank against which deposit might otherwise have been set off as affecting depositor's equivalent rights, 139 A.L.R. 723; 162 A.L.R. 1175.


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