Liability of Receiver Where Bank Fails

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Where funds are in the hands of a receiver pending a final disposition, the receiver may deposit the funds into a bank or trust company which is insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, or successor entities. If the receiver fails to utilize such an insured bank or trust company, he shall be personally liable for any resulting loss.

(Civil Code 1895, § 4909; Civil Code 1910, § 5484; Code 1933, § 55-310.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 66 Am. Jur. 2d, Receivers, § 295.

C.J.S.

- 75 C.J.S., Receivers, § 190 et seq.

ALR.

- Receiver's personal liability for negligence in failing to care for or maintain property in receivership, 20 A.L.R.3d 967.


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