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O.C.G.A. § 7-1-173 — Bringing or defending actions | Georgia Code
O.C.G.A. § 7-1-173 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 7 BANKING AND FINANCE

Section 1. Financial Institutions, 7-1-1 through 7-1-1021.

ARTICLE 1 PROVISIONS APPLICABLE TO DEPARTMENT OF BANKING AND FINANCE AND FINANCIAL INSTITUTIONS GENERALLY

7-1-173. Bringing or defending actions.

  1. For the purpose of executing any of the powers and performing any of the duties respectively conferred or imposed upon it, as receiver, by this chapter, the department may, in its name as receiver of such financial institution, prosecute any action at law or in equity in any court of this state or of any other state or in any federal court, whether or not such action is pending on behalf of the financial institution at the time it takes possession. It may likewise defend any action at law or in equity pending against the financial institution at the time it takes possession. The department may, in its name as receiver of a corporation, institute and maintain any action which any director, officer, or such corporation or any shareholder or creditor thereof could have instituted or maintained.
  2. Notwithstanding the provisions of other laws to the contrary, the statute of limitations on all causes of action which may accrue to any financial institution over whose affairs the department is receiver shall be extended for a period of six months.

(Ga. L. 1922, p. 63, § 1; Code 1933, § 13-808; Code 1933, § 41A-724, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1984, p. 949, § 2.)

JUDICIAL DECISIONS

Constitutionality.

- See Shannon v. Mobley, 166 Ga. 430, 143 S.E. 582 (1928).

Section is confined to matters relating to bank's assets.

- Statute does not give to superintendent of banks (now department of banking and finance) any authority to prosecute any cause of action which is vested by law in the bank or in the bank's stockholders or the creditors thereof. The section is in terms confined to such matters as relate to the assets of bank as such, debts and liabilities due to the bank in the bank's corporate capacity. Hines v. Wilson, 164 Ga. 888, 139 S.E. 802 (1927).

Action against directors causing insolvency lies by superintendent (now department), not by stockholders. Hinton v. Mobley, 167 Ga. 60, 144 S.E. 738 (1928).

Tax lien on realty.

- Realty sold by department pursuant to court order carries with the realty any outstanding tax lien. Stephens v. First Nat'l Bank, 166 Ga. 380, 143 S.E. 386 (1928).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Banks and Financial Institutions, § 1083.

C.J.S.

- 9 C.J.S., Banks and Banking, §§ 617, 632, 633.

ALR.

- Right of creditors or stockholders of insolvent bank in charge of liquidating officer who refuses or fails to enforce liability of third persons to bank, to maintain action for that purpose, and conditions of such right, 97 A.L.R. 169; 116 A.L.R. 783.

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This Georgia Code resource is curated by Georgia Bar member Graham W. Syfert, a personal injury and workers' compensation attorney admitted in Georgia (State Bar of Georgia No. 881027, since 2006) and Florida. For legal consultation, call 904-383-7448.