§ 26–642. Voluntary dissolutions; involuntary dissolutions and liquidations.

(a) An international banking corporation that proposes to terminate the operation in the District of Columbia of an international branch, an international agency, or an international representative office in the District of Columbia shall comply with all procedures as the Commissioner may prescribe, by regulation, to ensure an orderly cessation of activities in a manner that is not harmful to the public interest and shall surrender its license to the Commissioner or its right to maintain an office in the District of Columbia, as applicable.

(b)(1) If an international banking corporation licensed to maintain an international branch, an international agency, or an international representative office in the District of Columbia is dissolved or its authority or existence is otherwise terminated or canceled in the jurisdiction of its incorporation, the international banking corporation shall deliver, within 10 days thereafter, to the Commissioner a certificate of the official responsible for records of banking corporations of the jurisdiction of incorporation of the international banking corporation attesting to the occurrence of this event or a certified copy of an order or decree of a court of the jurisdiction directing the dissolution of the international banking corporation, the termination of its existence, or the cancellation of its authority. The filing of the certificate, order, or decree shall have the same effect as the revocation of the license of the international banking corporation as provided in this chapter. The Commissioner shall serve as agent of the international banking corporation upon whom process may be served in an action based upon a liability or obligation incurred by the international banking corporation within the District of Columbia before the filing of the certificate, order, or decree. The Commissioner shall promptly cause a copy of the process to be mailed by registered or certified mail, return receipt requested, to the international banking corporation at its office address as it appears on the records of the Department.

(2)(A) The Commissioner may, at the Commissioner’s discretion, take possession of the business and property in the District of Columbia of a international banking corporation that has been licensed to operate in the District of Columbia upon finding that (i) the corporation’s international branch or agency operating in the District of Columbia has violated any law, (ii) has neglected or refused to comply with the terms of a duly issued order of the Commissioner, (iii) is insolvent, will imminently become insolvent, or is transacting business in an unsound, unsafe, or unauthorized manner such that the corporation is threatened with imminent insolvency, or (iv) the corporation is in liquidation at its domicile or elsewhere. Title to the business and property shall vest by operation of law in the Commissioner upon taking possession. Thereafter, the Commissioner shall liquidate or otherwise deal with such business and property in accordance with the provisions of this chapter and any other laws relating to the liquidation of banking corporations within the District of Columbia.

(B)(i) Upon the Commissioner’s taking possession of the business and property in the District of Columbia of the banking office of an international banking corporation whose deposit liabilities in the District of Columbia are not insured by the Federal Deposit Insurance Corporation, the amounts deposited under this chapter shall become the property of the Commissioner, free and clear of any and all liens and other claims, and shall be held in trust for the depositors of such banking office. The Commissioner may, without regard to any priorities, preferences, or adverse claims and without obtaining the approval of a court, sell the property and, as soon as practicable, distribute the proceeds to the depositors on a pro rata basis; provided, that no depositor shall receive an amount in excess of his account balance.

(ii) For purposes of this subparagraph, the term “depositor” shall not include any other office or branch of, or a wholly-owned (except for a nominal number of directors’ shares) subsidiary of, the international banking corporation, but shall include a person to whom such banking office is indebted by virtue of money or its equivalent received by the banking office for which it has:

(I) Given credit, or is obligated to give credit, to a time or demand deposit or which is evidenced by a check or draft against a deposit account and certified by the banking office;

(II) Issued a letter of credit for cash or a traveler’s check on which the banking office is primarily liable; or

(III) Issued an outstanding draft (including advice or authorization to charge the banking office’s balance at another bank), cashier’s check or money order, or other officer’s check.