Receiving Deposits in Failing Bank; Defined and Punished

(a) As used in this Section, financial institution means a bank, insurance company, credit union, building and loan association, investment trust or other organization held out to the public as a place of deposit of funds or medium of savings or collective investment. (b) An officer, manager or other person directing or participating in the direction of a financial institution commits a misdemeanor if he receives or permits the receipt of a deposit, premium payment or other investment in the institution knowing that: (1) due to financial difficulties the institution is about to suspend operations or go into receivership or reorganization; and (2) the person making the deposit or other payment is unaware of the precarious situation of the institution. SOURCE: G.P.C. § 562; *M.P.C. §§ 223.0(2), 22412; N.J. § 2C:21-14. CROSS-REFERENCES: §§ 30810, Govt. Code (As amended by P.L. 13-187:197 (June 28, 1976)) “Banking Code”. COMMENT: This Section parallels precisely similar provisions in the Banking Code, except that this Section omits any special penalty or fraudulent intent. Further, § 30810 has been amended to make this crime a felony where the value of the deposit exceeds $1,000. Since the amending legislation, P.L. 13-187 is intended as a companion to this Criminal and Correctional Code, it is obvious that neither Section supersedes to the other.