Banking Emergencies and Compliance with Federal Laws.

Ala. Code tit. 5, ch. 10A

in effect

Ala. Code § 5-10A-1 Authorization or Direction of Banks to Postpone Paying Liabilities, Segregate Deposits and Assets, Renew Loans, Etc.

5-10A-1. Authorization or Direction of Banks to Postpone Paying Liabilities, Segregate Deposits and Assets, Renew Loans, Etc. The superintendent with the concurrence of not less than two other members of the Banking Board, or any three members of the Banking Board without action by said superintendent, are hereby authorized and empowered, in addition to all other powers now conferred by law upon the superintendent or the Banking Board, or both, whenever in their judgment the circumstances warrant it, to authorize or direct any and all banks: (1) To postpone for any length of time the payment of any proportion of deposit or other liabilities, demand and savings account liabilities and certificate of deposit liabilities to any individual, firm, corporation or entity as said state officials may deem necessary and expedient, to be determined by them according to any facts and conditions which in their opinion, for emergency or other reasons, require such action in each particular instance; (2) To receive deposits to be classified by said state officials under rules and regulations as extended or modified under this chapter from time to time, each class of which shall be segregated from any other class, shall be subject only to such restrictions or limitations, if any, as may be imposed by said state officials and may be invested in such character of investments as may be authorized or approved from time to time by said state officials; (3) To segregate particular assets for or towards the liquidation and discharge of particular deposit or other liabilities, or any specified percentage thereof, of said bank without proceeding with a receivership liquidation, under such rules and regulations with respect thereto as said state officials may deem proper for the protection of interested parties and, in such cases, to continue the operation of the business; and (4) To make and renew loans from time to time in the ordinary course of banking business out of any assets available therefor. (Acts 1980, No. 80-658, §5-10-1.)

Ala. Code § 5-10A-2 Promulgation of Rules and Regulations; Requirements of Reports, Etc., Generally.

5-10A-2. Promulgation of Rules and Regulations; Requirements of Reports, Etc., Generally. The superintendent with the concurrence of not less than two members of the Banking Board, or any three members of the Banking Board without action by said superintendent may authorize and empower any bank to act under the provisions of this chapter, and they are empowered to make and adopt such rules and regulations from time to time and to extend, modify, suspend or terminate any part thereof from time to time as they may deem proper for the protection of interested parties and to require such periodical and other reports in detail with respect to operation under such rules and regulations as they may see fit. (Acts 1980, No. 80-658, §5-10-2.)

Ala. Code § 5-10A-3 Declaration of Banking Holidays; Promulgation of Emergency Rules or Regulations.

5-10A-3. Declaration of Banking Holidays; Promulgation of Emergency Rules or Regulations. Whenever, in the opinion of the superintendent it shall be deemed that an emergency exists, the superintendent with the concurrence of not less than two other members of the Banking Board, or any three members of the Banking Board without action by said superintendent, shall be authorized to declare and put into effect a bank holiday for such period as he or they may deem necessary or to promulgate or approve such emergency rules or regulations with respect to banking business, practices and transactions within the state or within any community or locality therein as shall, in his or their opinion, be deemed necessary. Such rules and regulations shall continue in force for such period as may be fixed by him or them in promulgating the same and until modified, suspended or terminated as provided in this chapter. (Acts 1980, No. 80-658, §5-10-3.)

Ala. Code § 5-10A-4 Extension, Etc., of Banking Holiday or Emergency Rules or Regulations.

5-10A-4. Extension, Etc., of Banking Holiday or Emergency Rules or Regulations. Any such bank holiday or any such rule or regulation may be extended, modified, suspended or terminated by the superintendent with the concurrence of not less than two other members of the Banking Board or by any three members of the Banking Board without action by said superintendent by signing and filing their written direction to that effect with the superintendent who shall thereupon forthwith proclaim and give effect to the same. (Acts 1980, No. 80-658, §5-10-4.)

Ala. Code § 5-10A-5 Sections 5-10A-1 through 5-10A-4 Applicable Only in Emergencies; Duration of Emergency Action.

5-10A-5. Sections 5-10A-1 through 5-10A-4 Applicable Only in Emergencies; Duration of Emergency Action. The provisions of Sections 5-10A-1 through 5-10A-4 authorize actions to be taken during an emergency. Any action taken pursuant to these sections shall be reported to the Banking Board and shall automatically terminate upon the expiration of 120 days unless such action is approved during that period by a majority of the Banking Board. (Acts 1980, No. 80-658, §5-10-5.)

Ala. Code § 5-10A-6 Operation of Banks Under Federal Laws.

5-10A-6. Operation of Banks Under Federal Laws. Any bank may do any and all things necessary or desirable to permit it to operate under the provisions of any act of Congress of the United States now or hereafter enacted. (Acts 1980, No. 80-658, §5-10-7.)

Ala. Code § 5-10A-7 Payment of Expenses of Bank Operating Without Receivership Liquidation.

5-10A-7. Payment of Expenses of Bank Operating Without Receivership Liquidation. Whenever, pursuant to any provision of this chapter, any bank is authorized to do any one or more of the things specified in this chapter without receivership liquidation, its operating expenses, including compensation to officers and employees, shall be payable as a first charge against all of its assets, subject to such proration thereof and such limitations as may be placed thereon from time to time by any rules and regulations made and adopted and extended or modified from time to time as in this chapter provided. Any such rules and regulations may permit any bank to make charges for any banking service performed by it, and it shall be lawful for any bank to charge accordingly for services not in excess of the amount authorized by such rules and regulations. (Acts 1980, No. 80-658, §5-10-8.)

Ala. Code § 5-10A-8 Segregation of Assets - Manner of Segregation Generally; Distribution of Segregated Assets Upon Receivership Liquidation of Bank.

5-10A-8. Segregation of Assets - Manner of Segregation Generally; Distribution of Segregated Assets Upon Receivership Liquidation of Bank. Whenever pursuant to any provision of state or federal law or of any rule or regulation by any state or federal authority made or adopted pursuant thereto or whenever pursuant to contractual arrangement any bank is under duty or obligation to segregate particular assets for or towards the liquidation or discharge of particular liabilities or specified percentages of particular liabilities, such assets shall be segregated in such manner as to provide for the pro rata application of the proceeds thereof from time to time to the particular liabilities or percentage of particular liabilities for the purpose of which they are segregated without preference or priority of one liability over another and in accordance with the amounts of such particular liabilities as of the date of such segregation. Upon any receivership liquidation of any bank, the particular assets so segregated and any then remaining proceeds of any thereof shall, subject to expenses of liquidation, be distributable pro rata toward the particular liabilities or percentage of particular liabilities on account of which segregated, with proper adjustment for previous payments therefrom. (Acts 1980, No. 80-658, §5-10-9.)

Ala. Code § 5-10A-9 Segregation of Assets - Manners of Segregation.

5-10A-9. Segregation of Assets - Manners of Segregation. Whenever pursuant to any provision of state or federal law or of any rule or regulation by any state or federal authority made or adopted pursuant thereto, or whenever pursuant to contractual arrangement any bank is under duty or obligation to segregate particular items or assets separate and apart from other items or assets, the same may be either segregated specifically and in kind in the possession of the bank but commingled within the class or amount for the purpose of which they are segregated, or converted into a deposit account separate from any general or other deposit account of such bank with a Federal Reserve Bank or branch thereof, created and organized under an act of Congress of the United States approved December 23, 1913, known as the Federal Reserve Act, as amended, or with any governmental agency hereafter created by act of Congress of the United States authorized to receive such deposit accounts but commingled in such account within the class or amount for the purpose of which such deposit is made, or converted into a deposit account separate from any general or other deposit account of such bank with any one or more other banks or with any one or more banks doing business outside of the state and members of the Federal Reserve System or any governmental agency hereafter created by act of Congress of the United States authorized to receive such deposit accounts but commingled in such account within the class or amount for the purpose of which such deposit is made, or either or any one or more of the foregoing. Any such segregation shall be sufficient if made in any one or more of the manners above specified at or as of the close of business on any banking day. (Acts 1980, No. 80-658, §5-10-10.)

Ala. Code § 5-10A-10 Segregation of Assets - Commingling of Items in Classes of Deposits.

5-10A-10. Segregation of Assets - Commingling of Items in Classes of Deposits. Within any class of deposits in any bank for the purpose of which class particular assets are segregated, the separate items may be mingled and commingled. (Acts 1980, No. 80-658, §5-10-11.)

Ala. Code § 5-10A-11 Segregation of Assets - Adjustments; Identification of Segregated Items.

5-10A-11. Segregation of Assets - Adjustments; Identification of Segregated Items. Whenever any bank is required to segregate particular assets under any rule or regulation promulgated or extended or modified under this chapter, it shall accomplish such segregation as promptly as reasonably possible and shall at and as of the close of business on each banking day adjust such segregation to the additions thereto and withdrawals therefrom in accordance with rules and regulations promulgated, extended or modified from time to time under this chapter. Transfer orders as of the close of business each banking day shall be sufficient for the purposes of any such segregation or adjustment thereof. Any segregation made in accordance with the provisions of this chapter or in accordance with any rule or regulation promulgated, extended or modified under this chapter shall be sufficient identification of the items included in such segregation for all purposes. (Acts 1980, No. 80-658, §5-10-12.)

Ala. Code § 5-10A-12 Discharge of Deposits of Script, Clearinghouse Certificates or Emergency Currency.

5-10A-12. Discharge of Deposits of Script, Clearinghouse Certificates or Emergency Currency. Any deposit of script, clearinghouse certificates or emergency currency in any form or of any order on any such deposit shall be dischargeable in whole or in part either in kind or in legal tender of the United States of a value no greater than the current exchange value of the script, clearinghouse certificates or emergency currency originally deposited at the time of the payment at the option of the bank accepting such deposit. Any other deposit shall be dischargeable when and as entitled to payment thereof or on account thereof only in legal tender of the United States as fixed by the laws of the United States in force and effect at the time of payment thereof or of payment on account thereof. (Acts 1980, No. 80-658, §5-10-13.)

Ala. Code § 5-10A-13 Issuance and Reissuance of Script, Clearinghouse Certificates or Emergency Currency.

5-10A-13. Issuance and Reissuance of Script, Clearinghouse Certificates or Emergency Currency. The superintendent with the concurrence of not less than two other members of the Banking Board, or any three members of the Banking Board without action by said superintendent may from time to time authorize any bank singly or by groups, to issue and reissue from time to time script, certificates, clearinghouse certificates or emergency currency in such form, under such restrictions and conditions, entitled to such lien on specific security therefor or without such lien and entitled to such rights and privileges as said state officials may authorize, approve or direct. The issue and reissue thereof shall be lawful and subject to no civil or criminal penalties or interest charges or taxation or additions of any kind thereto, notwithstanding any contrary provisions of the laws of this state. (Acts 1980, No. 80-658, §5-10-14.)

Ala. Code § 5-10A-14 Issuance of Notes or Certificates of Indebtedness as Evidence of Compensation for Services or Labor During Banking Emergency.

5-10A-14. Issuance of Notes or Certificates of Indebtedness as Evidence of Compensation for Services or Labor During Banking Emergency. Where a banking emergency has been proclaimed by the superintendent and until such time as such emergency is declared to have ended by proclamation of the superintendent, it shall be lawful for the state or any political subdivision thereof and for merchants, manufacturers, public utilities and other business establishments in this state, whether conducted by an individual or individuals or under corporate charter, with the approval of the superintendent to issue as evidence of compensation for services or labor notes or certificates of indebtedness to their employees in convenient denominations, payable not more than 90 days after such proclamation shall be made, and none thereof shall be subject to any civil or criminal penalties or interest charges or taxation or additions thereto of any kind notwithstanding any contrary provisions of the laws of this state. The right of the state or any political subdivision thereof to issue notes in anticipation of the collection of taxes under any law now in force and effect shall not be impaired or affected by the provisions of this section. (Acts 1980, No. 80-658, §5-10-15.)

Ala. Code § 5-10A-15 Authorization and Approval of Reorganization of Bank Without Receivership Liquidation.

5-10A-15. Authorization and Approval of Reorganization of Bank Without Receivership Liquidation. The superintendent with the concurrence of not less than two other members of the Banking Board or any three members of the Banking Board without action by said superintendent are hereby further authorized and empowered to approve and authorize any bank to reorganize its business and affairs, without receivership liquidation, to such extent as may be deemed by them proper, and any reorganization so approved and authorized shall be lawful and effective; provided, that in no case shall the paid-in capital stock be permitted thereby to be reduced below the minimum amount now required by law. (Acts 1980, No. 80-658, §5-10-16.)

Ala. Code § 5-10A-16 Compliance with Chapter, Federal Laws, Etc., Not to Entail Liability.

5-10A-16. Compliance with Chapter, Federal Laws, Etc., Not to Entail Liability. No bank nor any surety or guarantor of any bank shall suffer any penalty or liability for damages or increase of liability or be in default, nor shall any maker, endorser, guarantor or other party or person be released from liability or obligation or be in default by reason of a bank’s compliance with any action of any state official authorized or ratified by this chapter or compliance with any act of Congress of the United States now or hereafter enacted or with any rule or regulation promulgated by duly constituted officials of the United States. (Acts 1980, No. 80-658, §5-10-18.)

Ala. Code § 5-10A-17 Officers Not to Incur Liability or Penalties for Compliance with Orders of Superintendent, Federal Laws, Etc.

5-10A-17. Officers Not to Incur Liability or Penalties for Compliance with Orders of Superintendent, Federal Laws, Etc. No public officer or surety on his official bond shall suffer any penalty or liability for damages or increase of liability or be in default by reason of any failure on his part to perform any act or duty where such failure is due to compliance by any bank with any order or requirement of the superintendent or the Banking Board authorized or ratified by this chapter or with any act of Congress of the United States now or hereafter enacted or with any rule or regulation promulgated by duly constituted officials of the United States. (Acts 1980, No. 80-658, §5-10-19.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026