Chapter 397: Regulation of Banks in Emergencies

Whenever it shall appear to the governor that the welfare of the state or any section thereof, or the welfare and security of banks and other institutions under the supervision of the bank commissioner, hereinafter referred to as banks, or their depositors or shareholders so require, he may proclaim that a banking emergency exists and that any bank or banks shall be subject to special regulation as hereinafter provided until the governor, by proclamation, declares the period of such banking emergency terminated. The governor may likewise declare such legal bank holidays as in his judgment such an emergency may require.

During the period of any banking emergency so proclaimed, the bank commissioner, hereinafter called the commissioner, in addition to all other powers conferred upon him by law, shall have authority to order any one or more banks to restrict all or any part of their business and to limit or postpone for any length of time the payment of any amount or proportion of the deposits in any of the departments thereof as he may deem necessary or expedient and may further regulate payments therefrom as to time and amount, as in his opinion the interest of the public or of such bank or banks or the depositors thereof may require, and may make such further orders and regulations in respect to the business of such bank or banks as in his opinion the interest of the public or of such bank or banks or the depositors thereof may require, and any order or orders made by him hereunder may be amended, changed, extended, or revoked, in whole or in part, whenever in his judgment circumstances warrant or require. After the termination of any such banking emergency, any such order may be continued in effect as to any particular bank or banks as aforesaid if in the judgment of the commissioner circumstances warrant or require and the governor approves.

The commissioner may by order authorize any bank or banks to receive new deposits under such special rules and regulations as in the opinion of the commissioner the interest of the public or of such bank or banks or the depositors thereof may require.

The commissioner may by order authorize any bank or banks to receive new deposits, which new deposits shall be special deposits and designated as such, shall be segregated from all other deposits and may be invested only in assets approved by the commissioner as being sufficiently liquid to be available when needed to meet any demands on account of such special deposits, which assets shall not be merged with other assets but shall be held in trust for the security and payment of such special deposits, except that income from such assets may to the extent authorized by the commissioner be used by the bank for other proper purposes of the institution, and the withdrawal of such special deposits shall not be subject in any respect to restriction or limitation under this chapter.

Whenever the commissioner shall make any order hereunder, he shall adopt rules, pursuant to RSA 541-A, for the protection of any bank or banks subject thereto or the depositors thereof, and any person violating any provision of such a rule shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.

All laws inconsistent herewith shall be suspended during the period of any banking emergency.