New York State Superintendent of Banks Neil D. Levin is seeking court approval to pay a 25% dividend to holders of subordinated debt of a former check-clearing company that failed two years ago.

A ruling is anticipated today.

If approved by state Supreme Court Justice Beatrice Shainswit as expected, the payout will bring the total distribution to Nationar's creditors to more than $316 million.

Nationar, a back-office processor and trust company owned by the state's savings banks, was seized by state regulators in February 1995 after its struggling financial condition prompted a run on its deposits.

Regulators have spent the past two years selling off its remaining assets and paying back creditors.

Mr. Levin's announcement comes just weeks after all other approved Nationar creditors received the full amount of their claims.

- Jonathan D. Epstein

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