§ 680 Creditor Claims Deadline

Key Takeaways

•If you have a claim against a licensee (like a company or person with a special license), you must tell the commissioner in writing within 4 months after they announce that creditors should come forward.
•If you don’t tell them in time, you might lose your chance to get paid, unless you’re a customer and your claim is already written in their records.
•If the commissioner doesn’t believe your claim is valid, they can say no and tell you by mail or in person. You then have 3 months to take them to court if you disagree.

Example

Imagine you lent money to a local bank that has a special license, and they didn’t pay you back. The bank goes out of business, and the commissioner announces that anyone owed money should come forward.

You have 4 months to write to the commissioner and say, 'The bank owes me $500.' If you wait longer, you might not get your money back. If the commissioner says, 'I don’t believe you,' they’ll mail you a letter, and you then have 3 months to sue them if you want to fight for your money.

All claims of every kind against the licensee or against any property owned or held by the licensee shall be presented to the commissioner in writing verified by the claimant or someone on his or her behalf within four months of the date of the first publication of the notice to creditors. Any claim, other than the claim of a customer whose claim appears upon the books or records of the licensee, not presented within the four months’ period shall be forever barred and any claim of a customer whose claim appears upon the books or records of the licensee that is not so presented prior to the date of the filing of the petition of the commissioner with the court for approval of the payment of the final dividend shall be forever barred except as to any moneys remaining after all debts for which claims were duly filed have been paid in full with interest. If the commissioner doubts the validity of any claim, he or she may reject the claim and serve notice of the rejection upon the claimant either by mail or personally. An affidavit of the mailing or personal service of the notice shall be prima facie evidence of the receipt thereof and shall be filed with the commissioner. Any action upon a rejected claim shall be brought within three months after the date of mailing or personal service of the notice of rejection. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Key Takeaways

•If you have a claim against a licensee (like a company or person with a special license), you must tell the commissioner in writing within 4 months after they announce that creditors should come forward.
•If you don’t tell them in time, you might lose your chance to get paid, unless you’re a customer and your claim is already written in their records.
•If the commissioner doesn’t believe your claim is valid, they can say no and tell you by mail or in person. You then have 3 months to take them to court if you disagree.

Key Takeaways

Example

Key Terms

References

§ 680 Creditor Claims Deadline

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References