Chapter VII Takeover and Termination Article 64 of the Law of People's Republic of China (PRC) City on Commercial Banks When a commercial bank has or may have a credit crisis, which seriously affects the interests of depositors, the People's Bank of China may take over the bank. The purpose of the takeover is to take necessary measures against the commercial banks that have been taken over, so as to protect the interests of depositors and restore the normal operating capacity of commercial banks. The relationship between creditor's rights and debts of the commercial bank that has been taken over will not change due to the takeover.
Article 65 The takeover shall be decided and implemented by the People's Bank of China. The takeover decision of the People's Bank of China shall include the following contents:
(1) The name of the commercial bank to be taken over;
(2) reasons for taking over;
(3) take over the organization;
(4) Time limit for taking over. The takeover decision shall be announced by the People's Bank of China. Article 66 The takeover shall begin from the date when the takeover decision is implemented. From the date of takeover, the takeover organization shall exercise the management right of the commercial bank.
Article 67 Upon the expiration of the takeover period, the People's Bank of China may decide to extend it, but the longest takeover period shall not exceed two years.
Article 68 The acquisition shall be terminated under any of the following circumstances:
(1) The time limit stipulated in the takeover decision expires or the takeover extension decided by the People's Bank of China expires;
(two) before the expiration of the takeover period, the commercial bank has resumed its normal operating capacity;
(3) Before the expiration of the takeover period, the commercial bank is merged or declared bankrupt according to law.
Article 69 If a commercial bank needs to be dissolved due to separation, merger or reasons for dissolution as stipulated in the articles of association, it shall apply to the People's Bank of China, and attach the reasons for dissolution and a debt settlement plan for paying the principal and interest of deposits. It is dissolved after being approved by the People's Bank of China. When a commercial bank is dissolved, a liquidation group shall be established in accordance with the law to carry out liquidation, and the principal and interest of deposits and other debts shall be repaid in time according to liquidation plan. The People's Bank of China supervises the liquidation process.
Article 70 If a commercial bank is revoked due to the revocation of its business license, the People's Bank of China shall promptly organize the establishment of a liquidation group to carry out liquidation, and timely repay the principal and interest of deposits and other debts according to liquidation plan.
Article 71 If a commercial bank fails to pay its due debts, it shall be declared bankrupt by the people's court according to law with the consent of the People's Bank of China. Where a commercial bank is declared bankrupt, the people's court shall organize the People's Bank of China and other relevant departments and personnel to set up a liquidation group to carry out liquidation. When a commercial bank goes bankrupt and liquidates, after paying liquidation expenses, wages owed to employees and labor insurance expenses, priority should be given to paying the principal and interest of personal savings deposits.
Article 72 A commercial bank is terminated due to dissolution, cancellation and bankruptcy.
In short, if there is a problem with the bank, the central bank will supervise it without worrying about bankruptcy. The above is the situation in China. If a bank fails in the United States, it will apply for bankruptcy protection first. Generally, another company will buy it, and then the buying company will be responsible for all the original creditor's rights and debts.