AI-assisted research summary: A conservator who has taken control of a state bank gets broad power to manage the bank, take its property, collect debts, handle litigation, borrow money, dispose of burdensome interests, and, with court approval for some actions, sell property or end the conservatorship.
§385. Conservator's power to manage and control bank When a conservator has taken control of a state bank, he shall be vested with the full and exclusive power of management and control, including the power: (1) To take possession of all books, records, and assets of the bank. (2) To collect all debts, claims, and judgments belonging to the bank and to do such other acts as are necessary to preserve and liquidate its assets. (3) To execute in the name of the bank any instrument necessary and proper to effectuate its powers or perform its duties as conservator. (4) To initiate, pursue, and defend litigation involving any right, claim, interest, or liability of the bank. (5) To exercise any and all fiduciary functions of the bank as of the date of appointment as conservator. (6) To borrow money as necessary in the conservatorship of the bank and to secure such borrowings by the pledge or mortgage of bank assets; the repayment of money borrowed under this Subsection and interest thereon shall be considered an expense of administration. (7) To abandon or convey title to any holder of a mortgage, privilege, lien, or other security interest against property in which the bank has an interest whenever the conservator determines that to continue to claim such interest is burdensome and of no advantage to the bank, its depositors, creditors, or stockholders. (8) Subject to the approval of the receivership court, to sell any and all movable and immovable property, to compromise any debt, claim, or judgment due to the bank, and to discontinue any action or other proceeding pending therefor. (9) To terminate the conservatorship by restoring the bank to its board of directors or to commence a receivership of the state bank in accordance with Part II of this Subchapter. Acts 1984, No. 719, §1, eff. Jan. 1, 1985.