(205 ILCS 620/6-11)
(from Ch. 17, par. 1556-11)
Upon the order of the court wherein the
Commissioner's complaint for the dissolution or winding up of the
affairs of the corporate fiduciary was filed, the receiver for
the corporate fiduciary shall have the power and authority and is
charged with the duties and responsibilities as follows:
(1) The receiver may sell and compound all bad and doubtful
debts on such terms as the court shall direct.
(2) The receiver may sell the real and personal property of
the corporate fiduciary, as distinguished from the real and personal
property of the beneficiaries of such fiduciary relations, on such terms
as the court shall direct.
(3) The receiver may petition the court for the authority to
borrow money, and to pledge the assets of the corporate fiduciary
as security therefor, whereupon the practice and procedure shall
be as follows:
(a) Upon the filing of such petition the court shall
set a date for the hearing of such petition and shall prescribe
the form and manner of the notice to be given to the officers,
stockholders, creditors and other persons interested in such
(b) Upon such hearing, any officer, stockholder,
creditor or person interested shall have the right to be heard.
(c) If the court grants such authority, then the
receiver may borrow money and issue evidences of indebtedness
therefor, and may secure the payment of such loan by the
mortgage, pledge, transfer in trust or hypothecation of any or
all property and assets of such corporate fiduciary, whether
real, personal, or mixed, superior to any charge thereon for the
expenses of liquidation.
(d) Such loan may be obtained in such amounts upon
such terms and conditions, and with provisions for repayment as
may be deemed necessary or expedient.
(e) Such loan may be obtained for the purpose of
facilitating liquidation, protecting or preserving the assets,
expediting the making of distributions to depositors and other
creditors, providing for the expenses of administration and
liquidation, aiding in the reopening or reorganization of such
corporate fiduciary or its merger or consolidation with another
corporate fiduciary, or in the sale of its assets.
(f) The receiver shall be under no personal obligation
to repay any such loan and shall have authority to take any
action necessary or proper to consummate such loan and to provide
for the repayment thereof, and may, when required, give bond for
the faithful performance of all undertakings in connection
(g) Prior to petitioning the court for authority to
make any such loan, the receiver may make application for or
negotiate any loan subject to obtaining an order of the court
approving the same.
(4) The receiver may make and carry out agreements with other
corporate fiduciaries, banks, or with the United States or any
agency thereof for the payment or assumption of the corporate
fiduciary's liabilities, in whole or in part, and the receiver may
transfer assets and make guaranties in connection therewith.
(5) After the expiration of 4 weeks after the first
publication of the Commissioner's notice as provided in Section
6-9, the receiver shall file with the court a correct list of all
creditors of the corporate fiduciary, as shown by its books, who
have not presented their claims and the amount of their
respective claims after allowing all just credits, deductions and
set-offs as shown by the books of the corporate fiduciary. Such
claims so filed shall be deemed proven, unless objections are
filed thereto by a party or parties interested therein within
such time as is fixed by the court.
(6) At the termination of the receiver's
administration, the receiver shall petition the court for the entry of a judgment of
dissolution. After a hearing upon such notice as the court may
prescribe, the court may enter a judgment of dissolution
whereupon the corporate fiduciary's corporate existence shall be terminated
and the receivership concluded.
(Source: P.A. 86-754.)