1157.18 Dividends - priorities in liquidation.

As soon as practicable after the expiration of the date fixed for the presentation of claims by creditors of a savings and loan association of whose business and property he has taken possession, the superintendent of savings and loan associations shall, out of the funds or property remaining in his hands after the payment of expenses, declare dividends. Each such dividend shall be paid to such persons, in such manner and amount, and upon such notice as may be directed by the court of common pleas in which the proceedings for the liquidation of such association are pending. Dividends due to shareholders, on claims as depositors or otherwise, shall be withheld by the superintendent to the extent of any liability of such shareholders until it is ascertained that it will not be necessary to enforce such liability by counterclaim or setoff. The court shall make proper provision for unproved and unclaimed deposits and for rejected claims upon which action has been instituted within the period provided for by section 1157.07 of the Revised Code, provided, that in the liquidation of a deposit guaranty association established under former sections 1151.80 to 1151.92 of the Revised Code, the court shall consider in making such provision the availability of other sources of funds to satisfy such rejected claims, including the availability of funds from the savings and loan assurance corporation against which such claims may be asserted. No final dividend shall be paid until after the final disposition of all claims filed. The power conferred by this section to pay dividends is in addition to the power conferred by section 1157.12 of the Revised Code to distribute dividends in cash or otherwise.

In connection with the liquidation of a savings and loan association described in section 1151.081 of the Revised Code, deposits are debts of such associations having the same priority as the claims of the general creditors of the association not having priority over other general creditors of the association and, in addition, shall have the same right to share in the remaining assets of the association, if any, that they would have if they were shares, stock, or stock credits.

Effective Date: 09-09-1988