Gordon, 040733 PAAGO, AGO 78

• Case Date: April 07, 1933
• Court: Pennsylvania

Honorable William D. Gordon, AGO 78 Opinion no. 78 Pennsylvania Attorney General Opinions Opinion of the Attorney General April 7, 1933          Banking- Institutions—Institutions under supervision of Secretary of Banking— Extent of control—Deferred payment plan—Time and demand deposits—Act of March, 8, 1933, P. L. 0.          All funds deposited in an institution under supervision of the Secretary of Banking, after it has availed itself of the provisions of legislation permitting postponement of payments to depositors shall be returned to those who have deposited them, even though the institution close its doors and its affairs be liquidated.          Institutions may operate on the deferred payment plan only on such terms as the Secretary of Banking shall impose, and as shall be proper and necessary in carrying out the provisions of the legislation and in protecting the depositors of such institution.          Honorable William D. Gordon, Secretary of Banking, Harrisburg, Pennsylvania.          Sir: You have asked to be advised regarding various matters arising under the provisions of Act No. 6 of the present session of the General Assembly, approved March 8, 1933, permitting institutions under your supervision under certain conditions to defer payments to depositors.          1. You first inquire whether, if an institution has availed itself of the privileges of the act and at a later date is taken into possession by you, deposits made during the time it was operating under the act may be mingled with its general assets and liquidated on the same ^K«sis as deposits received prior to the time it took advantage of the act.          Act No. 6 has two specific purposes. It is intended, first, to enable State banks and trust companies to refuse to honor depositors' demands for withdrawal without suffering the penalty of being closed and liquidated, and, second, to assure persons and corporations making deposits in such institutions that their money will be segregated and made available for payment at any and all times on demand.          Section 1 of the act gives the Secretary of Banking the power to authorize institutions under his supervision to postpone the payment of time and demand deposits and

"To receive new deposits, which shall be segregated from deposits previously made and invested in liquid assets as defined by the Secretary. All such new deposits shall be available exclusively for the benefit of new depositors until such

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