Virgin Islands preferred creditor

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In any proceedings to wind up an insolvent depository, the government is a preferred creditor. Where a bond has been given by a depository the government may proceed either as a preferred creditor against the assets of the insolvent depository or as the obligee on the surety bond against the surety thereon or against both as the Governor deems advisable. If the government receives or recovers any amount of its claim from the surety, the latter is not, by reason thereof, subrogated to the claim of the government against the assets of the insolvent depository as a preferred creditor.


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