§ 1821. — Insurance Funds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1821]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1821. Insurance Funds
(a) Deposit insurance
(1) Insured amounts payable.--
(A) In general.--The Corporation shall insure the deposits of
all insured depository institutions as provided in this chapter.
(B) Net amount of insured deposit.--The net amount due to any
depositor at an insured depository institution shall not exceed
$100,000 as determined in accordance with subparagraphs (C) and (D).
(C) Aggregation of deposits.--For the purpose of determining the
net amount due to any depositor under subparagraph (B), the
Corporation shall aggregate the amounts of all deposits in the
insured depository institution which are maintained by a depositor
in the same capacity and the same right for the benefit of the
depositor either in the name of the depositor or in the name of any
other person, other than any amount in a trust fund described in
paragraph (1) or (2) of section 1817(i) of this title or any funds
described in section 1817(i)(3) of this title.
(D) Coverage on pro rata or ``pass-through'' basis.--
(i) In general.--Except as provided in clause (ii), for the
purpose of determining the amount of insurance due under
subparagraph (B), the Corporation shall provide deposit
insurance coverage with respect to deposits accepted by any
insured depository institution on a pro rata or ``pass-through''
basis to a participant in or beneficiary of an employee benefit
plan (as defined in subsection (a)(8)(B)(ii) of this section),
including any eligible deferred compensation plan described in
section 457 of title 26.
(ii) Exception.--After the end of the 1-year period
beginning on December 19, 1991, the Corporation shall not
provide insurance coverage on a pro rata or ``pass-through''
basis pursuant to clause (i) with respect to deposits accepted
by any insured depository institution which, at the time such
deposits are accepted, may not accept brokered deposits under
section 1831f of this title.
(iii) Coverage under certain circumstances.--Clause (ii)
shall not apply with respect to any deposit accepted by an
insured depository institution described in such clause if, at
the time the deposit is accepted--
(I) the institution meets each applicable capital
standard; and
(II) the depositor receives a written statement from the
institution that such deposits at such institution are
eligible for insurance coverage on a pro rata or ``pass-
through'' basis.
(2)(A) Notwithstanding any limitation in this chapter or in any
other provision of law relating to the amount of deposit insurance
available for the account of any one depositor, in the case of a
depositor who is--
(i) an officer, employee, or agent of the United States having
official custody of public funds and lawfully investing or
depositing the same in time and savings deposits in an insured
depository institution;
(ii) an officer, employee, or agent of any State of the United
States, or of any county, municipality, or political subdivision
thereof having official custody of public funds and lawfully
investing or depositing the same in time and savings deposits in an
insured depository institution in such State;
(iii) an officer, employee, or agent of the District of Columbia
having official custody of public funds and lawfully investing or
depositing the same in time and savings deposits in an insured
depository institution in the District of Columbia;
(iv) an officer, employee, or agent of the Commonwealth of
Puerto Rico, of the Virgin Islands, of American Samoa, of the Trust
Territory of the Pacific Islands, or of Guam, or of any county,
municipality, or political subdivision thereof having official
custody of public funds and lawfully investing or depositing the
same in time and savings deposits in an insured depository
institution in the Commonwealth of Puerto Rico, the Virgin Islands,
American Samoa, the Trust Territory of the Pacific Islands, or Guam,
respectively; or
(v) an officer, employee, or agent of any Indian tribe (as
defined in section 1452(c) of title 25) or agency thereof having
official custody of tribal funds and lawfully investing or
depositing the same in time and savings deposits in an insured
depository institution;
such depositor shall, for the purpose of determining the amount of
insured deposits under this subsection, be deemed a depositor in such
custodial capacity separate and distinct from any other officer,
employee, or agent of the United States or any public unit referred to
in clause (ii), (iii), (iv), or (v) and the deposit of any such
depositor shall be insured in an amount not to exceed $100,000 per
account in an amount not to exceed $100,000 per account.\1\
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\1\ So in original. The second occurrence of the phrase ``in an
amount not to exceed $100,000 per account'' probably should not appear.
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(B) The Corporation may limit the aggregate amount of funds that may
be invested or deposited in deposits in any insured depository
institution by any depositor referred to in subparagraph (A) of this
paragraph on the basis of the size of any such bank \2\ in terms of its
assets: Provided, however, such limitation may be exceeded by the
pledging of acceptable securities to the depositor referred to in
subparagraph (A) of this paragraph when and where required.
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\2\ So in original. Probably should be ``depository institution''.
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(3) Certain retirement accounts.--
(A) In general.--Notwithstanding any limitation in this chapter
relating to the amount of deposit insurance available for the
account of any 1 depositor, deposits in an insured depository
institution made in connection with--
(i) any individual retirement account described in section
408(a) of title 26;
(ii) subject to the exception contained in paragraph
(1)(D)(ii), any eligible deferred compensation plan described in
section 457 of title 26; and
(iii) any individual account plan defined in section
1002(34) of title 29, and any plan described in section 401(d)
of title 26, to the extent that participants and beneficiaries
under such plan have the right to direct the investment of
assets held in individual accounts maintained on their behalf by
the plan,
shall be aggregated and insured in an amount not to exceed $100,000
per participant per insured depository institution.
(B) Amounts taken into account.--For purposes of subparagraph
(A), the amount aggregated for insurance coverage under this
paragraph shall consist of the present vested and ascertainable
interest of each participant under the plan, excluding any remainder
interest created by, or as a result of, the plan.
(4) General provisions relating to funds.--
(A) Maintenance and use of funds.--The Bank Insurance Fund
established under paragraph (5) and the Savings Association
Insurance Fund established under paragraph (6) shall each be--
(i) maintained and administered by the Corporation;
(ii) maintained separately and not commingled; and
(iii) used by the Corporation to carry out its insurance
purposes in the manner provided in this subsection.
(B) Limitation on use.--Notwithstanding any provision of law
other than section 1823(c)(4)(G) of this title, the Bank Insurance
Fund and the Savings Association Insurance Fund shall not be used in
any manner to benefit any shareholder or affiliate (other than an
insured depository institution that receives assistance in
accordance with the provisions of this chapter) of--
(i) any insured depository institution for which the
Corporation or the Resolution Trust Corporation has been
appointed conservator or receiver, in connection with any type
of resolution by the Corporation or the Resolution Trust
Corporation;
(ii) any other insured depository institution in default or
in danger of default, in connection with any type of resolution
by the Corporation or the Resolution Trust Corporation; or
(iii) any insured depository institution, in connection with
the provision of assistance under this section or section 1823
of this title with respect to such institution, except that this
clause shall not prohibit any assistance to any insured
depository institution that is not in default, or that is not in
danger of default, that is acquiring (as defined in section
1823(f)(8)(B) of this title) another insured depository
institution.
(5) Bank insurance fund.--
(A) Establishment.--There is established a fund to be known as
the Bank Insurance Fund.
(B) Transfer to fund.--On August 9, 1989, the Permanent
Insurance Fund shall be dissolved and all assets and liabilities of
the Permanent Insurance Fund shall be transferred to the Bank
Insurance Fund.
(C) Uses.--The Bank Insurance Fund shall be available to the
Corporation for use with respect to Bank Insurance Fund members.
(D) Deposits.--All amounts assessed against Bank Insurance Fund
members by the Corporation shall be deposited into the Bank
Insurance Fund.
(6) Savings association insurance fund.--
(A) Establishment.--There is established a fund to be known as
the Savings Association Insurance Fund.
(B) Uses.--The Savings Association Insurance Fund shall be
available to the Corporation for use with respect to Savings
Association Insurance Fund members.
(C) Deposits.--All amounts assessed against Savings Association
Insurance Fund members which are not required for the Financing
Corporation, the Resolution Funding Corporation, or the FSLIC
Resolution Fund shall be deposited in the Savings Association
Insurance Fund.
(D) Treasury payments to fund.--To the extent of the
availability of amounts provided in appropriation Acts and subject
to subparagraphs (E) and (G), the Secretary of the Treasury shall
pay to the Savings Association Insurance Fund such amounts as may be
needed to pay losses incurred by the Fund in fiscal years 1994
through 1998.
(E) Certification conditions on availability of funding.--No
amount appropriated for payments by the Secretary of the Treasury in
accordance with subparagraph (D) for any fiscal year may be expended
unless the Chairperson of the Board of Directors certifies to the
Congress, at any time before the beginning of or during such fiscal
year, that--
(i) such amount is needed to pay for losses which have been
incurred or can reasonably be expected to be incurred by the
Savings Association Insurance Fund;
(ii) the Board of Directors has determined that--
(I) Savings Association Insurance Fund members, in the
aggregate, are unable to pay additional semiannual
assessments under section 1817(b) of this title at the
assessment rates which would be required in order to cover,
from such additional assessments, losses which have been
incurred or can reasonably be expected to be incurred by the
Fund without adversely affecting the ability of such members
to raise and maintain capital or to maintain the members'
assessment base; and
(II) an increase in the assessment rates for Savings
Association Insurance Fund members to cover such losses
could reasonably be expected to result in greater losses to
the Government;
(iii) the Board of Directors has determined that--
(I) Savings Association Insurance Fund members, in the
aggregate, are unable to pay additional semiannual
assessments under section 1817(b) of this title at the
assessment rates which would be required in order to meet
the repayment schedule required under section 1824(c) of
this title for any amount borrowed under section 1824(a) of
this title to cover losses which have been incurred or can
reasonably be expected to be incurred by the Fund without
adversely affecting the ability of such members to raise and
maintain capital or to maintain the members' assessment
base; and
(II) an increase in the assessment rates for Savings
Association Insurance Fund members to meet any such
repayment schedule could reasonably be expected to result in
greater losses to the Government;
(iv) as of the date of certification, the Corporation has in
effect procedures designed to ensure that the activities of the
Savings Association Insurance Fund and the affairs of any
Savings Association Insurance Fund member for which a
conservator or receiver has been appointed are conducted in an
efficient manner and the Corporation is in compliance with such
procedures;
(v) with respect to the most recent audit of the Savings
Association Insurance Fund by the Comptroller General of the
United States before the date of the certification--
(I) the Corporation has taken or is taking appropriate
action to implement any recommendation made by the
Comptroller General; or
(II) no corrective action is necessary or appropriate;
(vi) the Corporation has provided for the appointment of a
chief financial officer who--
(I) does not have other operating responsibilities;
(II) will report directly to the Chairperson of the
Corporation; and
(III) will have such authority and duties of chief
financial officers under section 902 of title 31 as the
Board of Directors of the Corporation determines to be
appropriate with respect to the Corporation;
(vii) the Corporation has provided for the appointment of a
senior officer whose responsibilities shall include setting
uniform standards for contracting and contracting enforcement in
connection with the administration of the Fund;
(viii) the Corporation is implementing the minority outreach
provisions mandated by section 1833e of this title;
(ix) the Corporation has provided for the appointment of a
senior attorney, at the assistant general counsel level or
above, responsible for professional liability cases; and
(x) the Corporation has improved the management of legal
services by--
(I) utilizing staff counsel when such utilization would
provide the same level of quality in legal services as the
use of outside counsel at the same or a lower estimated
cost; and
(II) employing outside counsel only if the use of
outside counsel would provide the most practicable,
efficient, and cost-effective resolution to the action and
only under a negotiated fee, contingent fee, or
competitively bid fee agreement.
(F) Availability of rtc funding.--At any time before the end of
the 2-year period beginning on the date of the termination of the
Resolution Trust Corporation, the Secretary of the Treasury shall
provide, out of funds appropriated to the Resolution Trust
Corporation pursuant to section 1441a(i)(3) of this title and not
expended by the Resolution Trust Corporation, to the Savings
Association Insurance Fund, for any year such amounts as are needed
by the Fund and are not needed by the Resolution Trust Corporation,
if the Chairperson of the Board of Directors has certified to the
Congress that--
(i) such amount is needed to pay for losses which have been
incurred or can reasonably be expected to be incurred by the
Savings Association Insurance Fund;
(ii) the Board of Directors has determined that--
(I) Savings Association Insurance Fund members, in the
aggregate, are unable to pay additional semiannual
assessments under section 1817(b) of this title at the
assessment rates which would be required in order to cover,
from such additional assessments, losses which have been
incurred or can reasonably be expected to be incurred by the
Savings Association Insurance Fund without adversely
affecting the ability of such members to raise and maintain
capital or to maintain the members' assessment base; and
(II) an increase in the assessment rates for Savings
Association Insurance Fund members to cover such losses
could reasonably be expected to result in greater losses to
the Government;
(iii) the Board of Directors has determined that--
(I) Savings Association Insurance Fund members, in the
aggregate, are unable to pay additional semiannual
assessments under section 1817(b) of this title at the
assessment rates which would be required in order to meet
the repayment schedule required under section 1824(c) of
this title for any amount borrowed under section 1824(a) of
this title to cover losses which have been incurred or can
reasonably be expected to be incurred by the Savings
Association Insurance Fund without adversely affecting the
ability of such members to raise and maintain capital or to
maintain such members' assessment base; and
(II) an increase in the assessment rates for Savings
Association Insurance Fund members to meet any such
repayment schedule could reasonably be expected to result in
greater losses to the Government;
(iv) the Corporation has provided for the appointment of a
chief financial officer who--
(I) does not have other operating responsibilities;
(II) will report directly to the Chairperson of the
Corporation; and
(III) will have such authority and duties of chief
financial officers under section 902 of title 31 as the
Board of Directors of the Corporation determines to be
appropriate with respect to the Corporation;
(v) the Corporation has provided for the appointment of a
senior officer whose responsibilities shall include setting
uniform standards for contracting and contracting enforcement in
connection with the administration of the Fund;
(vi) the Corporation is implementing the minority outreach
provisions mandated by section 1833e of this title;
(vii) the Corporation has provided for the appointment of a
senior attorney, at the assistant general counsel level or
above, responsible for professional liability cases; and
(viii) the Corporation has improved the management of legal
services by--
(I) utilizing staff counsel when such utilization would
provide the same level of quality in legal services as the
use of outside counsel at the same or a lower estimated
cost; and
(II) employing outside counsel only if the use of
outside counsel would provide the most practicable,
efficient, and cost-effective resolution to the action and
only under a negotiated fee, contingent fee, or
competitively bid fee agreement.
(G) Exception to subparagraph (d).--Notwithstanding subparagraph
(D), no payment may be made pursuant to such subparagraphs after the
Savings Association Insurance Fund achieves a reserve ratio of 1.25
percent.
(H) Appearance upon request.--The Secretary of the Treasury and
the Chairperson of the Board of Directors of the Federal Deposit
Insurance Corporation shall appear before the Committee on Banking,
Finance and Urban Affairs of the House of Representatives or the
Committee on Banking, Housing, and Urban Affairs of the Senate, upon
the request of the chairman of the committee, to report on any
certification made to the Congress under subparagraph (E) or (F).
(I) Borrowing authority.--
(i) In general.--The Corporation may borrow from the Federal
home loan banks, with the concurrence of the Federal Housing
Finance Board, such funds as the Corporation considers necessary
for the use of the Savings Association Insurance Fund.
(ii) Terms and conditions.--Any loan from any Federal home
loan bank under clause (i) to the Savings Association Insurance
Fund shall--
(I) bear a rate of interest of not less than such bank's
current marginal cost of funds, taking into account the
maturities involved;
(II) be adequately secured, as determined by the Federal
Housing Finance Board;
(III) be a direct liability of such Fund; and
(IV) be subject to the limitations of section 1825(c) of
this title.
(J) Authorization of appropriations.--Subject to subparagraph
(E), there are authorized to be appropriated to the Secretary of the
Treasury, such sums as may be necessary to carry out the provisions
of subparagraph (D) for fiscal years 1994 through 1998, except that
the aggregate amount appropriated pursuant to this authorization may
not exceed $8,000,000,000.
(K) Return to treasury.--If the aggregate amount of funds
transferred to the Savings Association Insurance Fund under
subparagraph (D) or (F) exceeds the amount needed to cover losses
incurred by the Fund, such excess amount shall be deposited in the
general fund of the Treasury.
(7) Provisions applicable to maintenance of accounts.--
(A) Corporation's authority.--Any provision of this chapter
forbidding the commingling of the Bank Insurance Fund with the
Savings Association Insurance Fund, or requiring the separate
maintenance of the Bank Insurance Fund and the Savings Association
Insurance Fund, is not intended--
(i) to limit or impair the authority of the Corporation to
use the same facilities and resources in the course of
conducting supervisory, regulatory, conservatorship,
receivership, or liquidation functions with respect to banks and
savings associations, or to integrate such functions; or
(ii) to limit or impair the Corporation's power to combine
assets or liabilities belonging to banks and savings
associations in conservatorship or receivership for managerial
purposes, or to limit or impair the Corporation's power to
dispose of such assets or liabilities on an aggregate basis.
(B) Accounting requirements.--
(i) Accounting for use of facilities and resources.--The
Corporation shall keep a full and complete accounting of all
costs and expenses associated with the use of any facility or
resource used in the course of any function specified in
subparagraph (A)(i) and shall allocate, in the manner provided
in subparagraph (C), any such costs and expenses incurred by the
Corporation--
(I) with respect to Bank Insurance Fund members to the
Bank Insurance Fund; and
(II) with respect to Savings Association Insurance Fund
members to the Savings Association Insurance Fund.
(ii) Accounting for holding and managing assets and
liabilities.--The Corporation shall keep a full and complete
accounting of all costs and expenses associated with the holding
and management of any asset or liability specified in
subparagraph (A)(ii).
(iii) Accounting for disposition of assets and
liabilities.--The Corporation shall keep a full and complete
accounting of all expenses and receipts associated with the
disposition of any asset or liability specified in subparagraph
(A)(ii).
(iv) Allocation of cost, expenses and receipts.--The
Corporation shall allocate any cost, expense, and receipt
described in clause (ii) or clause (iii) which is associated
with any asset or liability belonging to--
(I) any Bank Insurance Fund member to the Bank Insurance
Fund; and
(II) any Savings Association Insurance Fund member to
the Savings Association Insurance Fund.
(C) Allocation of administrative expenses.--Any personnel,
administrative, or other overhead expense of the Corporation shall
be allocated--
(i) fully to the Bank Insurance Fund, if the expense was
incurred directly as a result of the Corporation's
responsibilities solely with respect to Bank Insurance Fund
members;
(ii) fully to the Savings Association Insurance Fund, if the
expense was incurred directly as a result of the Corporation's
responsibilities solely with respect to Savings Association
Insurance Fund members;
(iii) between the Bank Insurance Fund and the Savings
Association Insurance Fund, in amounts reflecting the relative
degree to which the expense was incurred as a result of the
activities of Bank Insurance Fund and Savings Association
Insurance Fund members; or
(iv) between the Bank Insurance Fund and the Savings
Association Insurance Fund, in amounts reflecting the relative
total assets as of the end of the preceding calendar year of
Bank Insurance Fund members and Savings Association Insurance
Fund members, to the extent that the Board of Directors is
unable to make a determination under clause (i), (ii), or (iii).
(8) Certain investment contracts not treated as insured deposits.--
(A) In general.--A liability of an insured depository
institution shall not be treated as an insured deposit if the
liability arises under any insured depository institution investment
contract between any insured depository institution and any employee
benefit plan which expressly permits benefit-responsive withdrawals
or transfers.
(B) Definitions.--For purposes of subparagraph (A)--
(i) Benefit-responsive withdrawals or transfers.--The term
``benefit-responsive withdrawals or transfers'' means any
withdrawal or transfer of funds (consisting of any portion of
the principal and any interest credited at a rate guaranteed by
the insured depository institution investment contract) during
the period in which any guaranteed rate is in effect, without
substantial penalty or adjustment, to pay benefits provided by
the employee benefit plan or to permit a plan participant or
beneficiary to redirect the investment of his or her account
balance.
(ii) Employee benefit plan.--The term ``employee benefit
plan''--
(I) has the meaning given to such term in section
1002(3) of title 29; and
(II) includes any plan described in section 401(d) of
title 26.
(b) Liquidation as closing of depository institution
For the purposes of this chapter an insured depository institution
shall be deemed to have been closed on account of inability to meet the
demands of its depositors in any case in which it has been closed for
the purpose of liquidation without adequate provision being made for
payment of its depositors.
(c) Appointment of Corporation as conservator or receiver
(1) In general
Notwithstanding any other provision of Federal law, the law of
any State, or the constitution of any State, the Corporation may
accept appointment and act as conservator or receiver for any
insured depository institution upon appointment in the manner
provided in paragraph (2) or (3).
(2) Federal depository institutions
(A) Appointment
(i) Conservator
The Corporation may, at the discretion of the
supervisory authority, be appointed conservator of any
insured Federal depository institution or District bank and
the Corporation may accept such appointment.
(ii) Receiver
The Corporation shall be appointed receiver, and shall
accept such appointment, whenever a receiver is appointed
for the purpose of liquidation or winding up the affairs of
an insured Federal depository institution or District bank
by the appropriate Federal banking agency, notwithstanding
any other provision of Federal law (other than section 1441a
of this title) or the code of law for the District of
Columbia.
(B) Additional powers
In addition to and not in derogation of the powers conferred
and the duties imposed by this section on the Corporation as
conservator or receiver, the Corporation, to the extent not
inconsistent with such powers and duties, shall have any other
power conferred on or any duty (which is related to the exercise
of such power) imposed on a conservator or receiver for any
Federal depository institution under any other provision of law.
(C) Corporation not subject to any other agency
When acting as conservator or receiver pursuant to an
appointment described in subparagraph (A), the Corporation shall
not be subject to the direction or supervision of any other
agency or department of the United States or any State in the
exercise of the Corporation's rights, powers, and privileges.
(D) Depository institution in conservatorship subject to banking
agency supervision
Notwithstanding subparagraph (C), any Federal depository
institution for which the Corporation has been appointed
conservator shall remain subject to the supervision of the
appropriate Federal banking agency.
(3) Insured State depository institutions
(A) Appointment by appropriate State supervisor
Whenever the authority having supervision of any insured
State depository institution (other than a District depository
institution) appoints a conservator or receiver for such
institution and tenders appointment to the Corporation, the
Corporation may accept such appointment.
(B) Additional powers
In addition to the powers conferred and the duties related
to the exercise of such powers imposed by State law on any
conservator or receiver appointed under the law of such State
for an insured State depository institution, the Corporation, as
conservator or receiver pursuant to an appointment described in
subparagraph (A), shall have the powers conferred and the duties
imposed by this section on the Corporation as conservator or
receiver.
(C) Corporation not subject to any other agency
When acting as conservator or receiver pursuant to an
appointment described in subparagraph (A), the Corporation shall
not be subject to the direction or supervision of any other
agency or department of the United States or any State in the
exercise of its rights, powers, and privileges.
(D) Depository institution in conservatorship subject to banking
agency supervision
Notwithstanding subparagraph (C), any insured State
depository institution for which the Corporation has been
appointed conservator shall remain subject to the supervision of
the appropriate State bank or savings association supervisor.
(4) Appointment of Corporation by the Corporation
Except as otherwise provided in section 1441a of this title and
notwithstanding any other provision of Federal law, the law of any
State, or the constitution of any State, the Corporation may appoint
itself as sole conservator or receiver of any insured State
depository institution if--
(A) the Corporation determines--
(i) that--
(I) a conservator, receiver, or other legal
custodian has been appointed for such institution;
(II) such institution has been subject to the
appointment of any such conservator, receiver, or
custodian for a period of at least 15 consecutive days;
and
(III) 1 or more of the depositors in such
institution is unable to withdraw any amount of any
insured deposit; or
(ii) that such institution has been closed by or under
the laws of any State; and
(B) the Corporation determines that 1 or more of the grounds
specified in paragraph (5)--
(i) existed with respect to such institution at the
time--
(I) the conservator, receiver, or other legal
custodian was appointed; or
(II) such institution was closed; or
(ii) exist at any time--
(I) during the appointment of the conservator,
receiver, or other legal custodian; or
(II) while such institution is closed.
(5) Grounds for appointing conservator or receiver
The grounds for appointing a conservator or receiver (which may
be the Corporation) for any insured depository institution are as
follows:
(A) Assets insufficient for obligations.--The institution's
assets are less than the institution's obligations to its
creditors and others, including members of the institution.
(B) Substantial dissipation.--Substantial dissipation of
assets or earnings due to--
(i) any violation of any statute or regulation; or
(ii) any unsafe or unsound practice.
(C) Unsafe or unsound condition.--An unsafe or unsound
condition to transact business.
(D) Cease and desist orders.--Any willful violation of a
cease-and-desist order which has become final.
(E) Concealment.--Any concealment of the institution's
books, papers, records, or assets, or any refusal to submit the
institution's books, papers, records, or affairs for inspection
to any examiner or to any lawful agent of the appropriate
Federal banking agency or State bank or savings association
supervisor.
(F) Inability to meet obligations.--The institution is
likely to be unable to pay its obligations or meet its
depositors' demands in the normal course of business.
(G) Losses.--The institution has incurred or is likely to
incur losses that will deplete all or substantially all of its
capital, and there is no reasonable prospect for the institution
to become adequately capitalized (as defined in section 1831o(b)
of this title) without Federal assistance.
(H) Violations of law.--Any violation of any law or
regulation, or any unsafe or unsound practice or condition that
is likely to--
(i) cause insolvency or substantial dissipation of
assets or earnings;
(ii) weaken the institution's condition; or
(iii) otherwise seriously prejudice the interests of the
institution's depositors or the deposit insurance fund.
(I) Consent.--The institution, by resolution of its board of
directors or its shareholders or members, consents to the
appointment.
(J) Cessation of insured status.--The institution ceases to
be an insured institution.
(K) Undercapitalization.--The institution is
undercapitalized (as defined in section 1831o(b) of this title),
and--
(i) has no reasonable prospect of becoming adequately
capitalized (as defined in that section);
(ii) fails to become adequately capitalized when
required to do so under section 1831o(f)(2)(A) of this
title;
(iii) fails to submit a capital restoration plan
acceptable to that agency within the time prescribed under
section 1831o(e)(2)(D) of this title; or
(iv) materially fails to implement a capital restoration
plan submitted and accepted under section 1831o(e)(2) of
this title.
(L) The institution--
(i) is critically undercapitalized, as defined in
section 1831o(b) of this title; or
(ii) otherwise has substantially insufficient capital.
(M) Money laundering offense.--The Attorney General notifies
the appropriate Federal banking agency or the Corporation in
writing that the insured depository institution has been found
guilty of a criminal offense under section 1956 or 1957 of title
18 or section 5322 or 5324 of title 31.
(6) Appointment by Director of the Office of Thrift
Supervision
(A) Conservator
The Corporation or the Resolution Trust Corporation may, at
the discretion of the Director of the Office of Thrift
Supervision, be appointed conservator and the Corporation may
accept any such appointment.
(B) Receiver
Whenever the Director of the Office of Thrift Supervision
appoints a receiver under the provisions of subparagraph (A) or
(C) of section 1464(d)(2) of this title for the purpose of
liquidation or winding up any savings association's affairs--
(i) before such date as is determined by the Chairperson
of the Thrift Depositor Protection Oversight Board under
section 1441a(b)(3)(A)(ii) of this title, the Resolution
Trust Corporation shall be appointed;
(ii) on or after the date determined by the Chairperson
of the Thrift Depositor Protection Oversight Board under
section 1441a(b)(3)(A)(ii) of this title, the Resolution
Trust Corporation shall be appointed if the Resolution Trust
Corporation had been placed in control of the depository
institution at any time before such date; and
(iii) on or after the date determined by the Chairperson
of the Thrift Depositor Protection Oversight Board under
section 1441a(b)(3)(A)(ii) of this title, the Corporation
shall be appointed unless the Resolution Trust Corporation
is required to be appointed under clause (ii).
(7) Judicial review
If the Corporation appoints itself as conservator or receiver
under paragraph (4), the insured State depository institution may,
within 30 days thereafter, bring an action in the United States
district court for the judicial district in which the home office of
such institution is located, or in the United States District Court
for the District of Columbia, for an order requiring the Corporation
to remove itself as such conservator or receiver, and the court
shall, upon the merits, dismiss such action or direct the
Corporation to remove itself as such conservator or receiver.
(8) Replacement of conservator of State depository
institution
(A) In general
In the case of any insured State depository institution for
which the Corporation appointed itself as conservator pursuant
to paragraph (4), the Corporation may, without any requirement
of notice, hearing, or other action, replace itself as
conservator with itself as receiver of such institution.
(B) Replacement treated as removal of incumbent
The replacement of a conservator with a receiver under
subparagraph (A) shall be treated as the removal of the
Corporation as conservator.
(C) Right of review of original appointment not affected
The replacement of a conservator with a receiver under
subparagraph (A) shall not affect any right of the insured State
depository institution to obtain review, pursuant to paragraph
(7), of the original appointment of the conservator.
(9) Appropriate Federal banking agency may appoint
Corporation as conservator or receiver for insured
State depository institution to carry out section
1831o
(A) In general
The appropriate Federal banking agency may appoint the
Corporation as sole receiver (or, subject to paragraph (11),
sole conservator) of any insured State depository institution,
after consultation with the appropriate State supervisor, if the
appropriate Federal banking agency determines that--
(i) 1 or more of the grounds specified in subparagraphs
(K) and (L) of paragraph (5) exist with respect to that
institution; and
(ii) the appointment is necessary to carry out the
purpose of section 1831o of this title.
(B) Nondelegation
The appropriate Federal banking agency shall not delegate
any action under subparagraph (A).
(10) Corporation may appoint itself as conservator or
receiver for insured depository institution to
prevent loss to deposit insurance fund
The Board of Directors may appoint the Corporation as sole
conservator or receiver of an insured depository institution, after
consultation with the appropriate Federal banking agency and the
appropriate State supervisor (if any), if the Board of Directors
determines that--
(A) 1 or more of the grounds specified in any subparagraph
of paragraph (5) exist with respect to the institution; and
(B) the appointment is necessary to reduce--
(i) the risk that the deposit insurance fund would incur
a loss with respect to the insured depository institution,
or
(ii) any loss that the deposit insurance fund is
expected to incur with respect to that institution.
(11) Appropriate Federal banking agency shall not appoint
conservator under certain provisions without giving
Corporation opportunity to appoint receiver
The appropriate Federal banking agency shall not appoint a
conservator for an insured depository institution under subparagraph
(K) or (L) of paragraph (5) without the Corporation's consent unless
the agency has given the Corporation 48 hours notice of the agency's
intention to appoint the conservator and the grounds for the
appointment.
(12) Directors not liable for acquiescing in appointment of
conservator or receiver
The members of the board of directors of an insured depository
institution shall not be liable to the institution's shareholders or
creditors for acquiescing in or consenting in good faith to--
(A) the appointment of the Corporation or the Resolution
Trust Corporation as conservator or receiver for that
institution; or
(B) an acquisition or combination under section
1831o(f)(2)(A)(iii) of this title.
(13) Additional powers
In any case in which the Corporation is appointed conservator or
receiver under paragraph (4), (6), (9), or (10) for any insured
State depository institution--
(A) this section shall apply to the Corporation as
conservator or receiver in the same manner and to the same
extent as if that institution were a Federal depository
institution for which the Corporation had been appointed
conservator or receiver; and
(B) the Corporation as receiver of the institution may--
(i) liquidate the institution in an orderly manner; and
(ii) make any other disposition of any matter concerning
the institution, as the Corporation determines is in the
best interests of the institution, the depositors of the
institution, and the Corporation.
(d) Powers and duties of Corporation as conservator or receiver
(1) Rulemaking authority of Corporation
The Corporation may prescribe such regulations as the
Corporation determines to be appropriate regarding the conduct of
conservatorships or receiverships.
(2) General powers
(A) Successor to institution
The Corporation shall, as conservator or receiver, and by
operation of law, succeed to--
(i) all rights, titles, powers, and privileges of the
insured depository institution, and of any stockholder,
member, accountholder, depositor, officer, or director of
such institution with respect to the institution and the
assets of the institution; and
(ii) title to the books, records, and assets of any
previous conservator or other legal custodian of such
institution.
(B) Operate the institution
The Corporation may (subject to the provisions of section
1831q of this title), as conservator or receiver--
(i) take over the assets of and operate the insured
depository institution with all the powers of the members or
shareholders, the directors, and the officers of the
institution and conduct all business of the institution;
(ii) collect all obligations and money due the
institution;
(iii) perform all functions of the institution in the
name of the institution which are consistent with the
appointment as conservator or receiver; and
(iv) preserve and conserve the assets and property of
such institution.
(C) Functions of institution's officers, directors, and
shareholders
The Corporation may, by regulation or order, provide for the
exercise of any function by any member or stockholder, director,
or officer of any insured depository institution for which the
Corporation has been appointed conservator or receiver.
(D) Powers as conservator
The Corporation may, as conservator, take such action as may
be--
(i) necessary to put the insured depository institution
in a sound and solvent condition; and
(ii) appropriate to carry on the business of the
institution and preserve and conserve the assets and
property of the institution.
(E) Additional powers as receiver
The Corporation may (subject to the provisions of section
1831q of this title), as receiver, place the insured depository
institution in liquidation and proceed to realize upon the
assets of the institution, having due regard to the conditions
of credit in the locality.
(F) Organization of new institutions
The Corporation may, as receiver--
(i) with respect to savings associations and by
application to the Director of the Office of Thrift
Supervision, organize a new Federal savings association to
take over such assets or such liabilities as the Corporation
may determine to be appropriate; and
(ii) with respect to any insured bank, organize a new
national bank under subsection (m) of this section or a
bridge bank under subsection (n) of this section.
(G) Merger; transfer of assets and liabilities
(i) In general
The Corporation may, as conservator or receiver--
(I) merge the insured depository institution with
another insured depository institution; or
(II) subject to clause (ii), transfer any asset or
liability of the institution in default (including
assets and liabilities associated with any trust
business) without any approval, assignment, or consent
with respect to such transfer.
(ii) Approval by appropriate Federal banking agency
No transfer described in clause (i)(II) may be made to
another depository institution (other than a new bank or a
bridge bank established pursuant to subsection (m) or (n) of
this section) without the approval of the appropriate
Federal banking agency for such institution.
(H) Payment of valid obligations
The Corporation, as conservator or receiver, shall pay all
valid obligations of the insured depository institution in
accordance with the prescriptions and limitations of this
chapter.
(I) Subpoena authority
(i) In general
The Corporation may, as conservator, receiver, or
exclusive manager and for purposes of carrying out any
power, authority, or duty with respect to an insured
depository institution (including determining any claim
against the institution and determining and realizing upon
any asset of any person in the course of collecting money
due the institution), exercise any power established under
section 1818(n) of this title, and the provisions of such
section shall apply with respect to the exercise of any such
power under this subparagraph in the same manner as such
provisions apply under such section.
(ii) Authority of Board of Directors
A subpoena or subpoena duces tecum may be issued under
clause (i) only by, or with the written approval of, the
Board of Directors or their designees (or, in the case of a
subpoena or subpoena duces tecum issued by the Resolution
Trust Corporation under this subparagraph and section
1441a(b)(4) \3\ of this title, only by, or with the written
approval of, the Board of Directors of such Corporation or
their designees).
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(iii) Rule of construction
This subsection shall not be construed as limiting any
rights that the Corporation, in any capacity, might
otherwise have under section 1820(c) of this title.
(J) Incidental powers
The Corporation may, as conservator or receiver--
(i) exercise all powers and authorities specifically
granted to conservators or receivers, respectively, under
this chapter and such incidental powers as shall be
necessary to carry out such powers; and
(ii) take any action authorized by this chapter,
which the Corporation determines is in the best interests of the
depository institution, its depositors, or the Corporation.
(K) Utilization of private sector
In carrying out its responsibilities in the management and
disposition of assets from insured depository institutions, as
conservator, receiver, or in its corporate capacity, the
Corporation shall utilize the services of private persons,
including real estate and loan portfolio asset management,
property management, auction marketing, legal, and brokerage
services, only if such services are available in the private
sector and the Corporation determines utilization of such
services is the most practicable, efficient, and cost effective.
(3) Authority of receiver to determine claims
(A) In general
The Corporation may, as receiver, determine claims in
accordance with the requirements of this subsection and
regulations prescribed under paragraph (4).
(B) Notice requirements
The receiver, in any case involving the liquidation or
winding up of the affairs of a closed depository institution,
shall--
(i) promptly publish a notice to the depository
institution's creditors to present their claims, together
with proof, to the receiver by a date specified in the
notice which shall be not less than 90 days after the
publication of such notice; and
(ii) republish such notice approximately 1 month and 2
months, respectively, after the publication under clause
(i).
(C) Mailing required
The receiver shall mail a notice similar to the notice
published under subparagraph (B)(i) at the time of such
publication to any creditor shown on the institution's books--
(i) at the creditor's last address appearing in such
books; or
(ii) upon discovery of the name and address of a
claimant not appearing on the institution's books within 30
days after the discovery of such name and address.
(4) Rulemaking authority relating to determination of claims
(A) In general
The Corporation may prescribe regulations regarding the
allowance or disallowance of claims by the receiver and
providing for administrative determination of claims and review
of such determination.
(B) Final settlement payment procedure
(i) In general
In the handling of receiverships of insured depository
institutions, to maintain essential liquidity and to prevent
financial disruption, the Corporation may, after the
declaration of an institution's insolvency, settle all
uninsured and unsecured claims on the receivership with a
final settlement payment which shall constitute full payment
and disposition of the Corporation's obligations to such
claimants.
(ii) Final settlement payment
For purposes of clause (i), a final settlement payment
shall be payment of an amount equal to the product of the
final settlement payment rate and the amount of the
uninsured and unsecured claim on the receivership; and
(iii) Final settlement payment rate
For purposes of clause (ii), the final settlement
payment rate shall be a percentage rate reflecting an
average of the Corporation's receivership recovery
experience, determined by the Corporation in such a way that
over such time period as the Corporation may deem
appropriate, the Corporation in total will receive no more
or less than it would have received in total as a general
creditor standing in the place of insured depositors in each
specific receivership.
(iv) Corporation authority
The Corporation may undertake such supervisory actions
and promulgate such regulations as may be necessary to
assure that the requirements of this section can be
implemented with respect to each insured depository
institution in the event of its insolvency.
(5) Procedures for determination of claims
(A) Determination period
(i) In general
Before the end of the 180-day period beginning on the
date any claim against a depository institution is filed
with the Corporation as receiver, the Corporation shall
determine whether to allow or disallow the claim and shall
notify the claimant of any determination with respect to
such claim.
(ii) Extension of time
The period described in clause (i) may be extended by a
written agreement between the claimant and the Corporation.
(iii) Mailing of notice sufficient
The requirements of clause (i) shall be deemed to be
satisfied if the notice of any determination with respect to
any claim is mailed to the last address of the claimant
which appears--
(I) on the depository institution's books;
(II) in the claim filed by the claimant; or
(III) in documents submitted in proof of the claim.
(iv) Contents of notice of disallowance
If any claim filed under clause (i) is disallowed, the
notice to the claimant shall contain--
(I) a statement of each reason for the disallowance;
and
(II) the procedures available for obtaining agency
review of the determination to disallow the claim or
judicial determination of the claim.
(B) Allowance of proven claims
The receiver shall allow any claim received on or before the
date specified in the notice published under paragraph (3)(B)(i)
by the receiver from any claimant which is proved to the
satisfaction of the receiver.
(C) Disallowance of claims filed after end of filing period
(i) In general
Except as provided in clause (ii), claims filed after
the date specified in the notice published under paragraph
(3)(B)(i) shall be disallowed and such disallowance shall be
final.
(ii) Certain exceptions
Clause (i) shall not apply with respect to any claim
filed by any claimant after the date specified in the notice
published under paragraph (3)(B)(i) and such claim may be
considered by the receiver if--
(I) the claimant did not receive notice of the
appointment of the receiver in time to file such claim
before such date; and
(II) such claim is filed in time to permit payment
of such claim.
(D) Authority to disallow claims
(i) In general
The receiver may disallow any portion of any claim by a
creditor or claim of security, preference, or priority which
is not proved to the satisfaction of the receiver.
(ii) Payments to less than fully secured creditors
In the case of a claim of a creditor against an insured
depository institution which is secured by any property or
other asset of such institution, any receiver appointed for
any insured depository institution--
(I) may treat the portion of such claim which
exceeds an amount equal to the fair market value of such
property or other asset as an unsecured claim against
the institution; and
(II) may not make any payment with respect to such
unsecured portion of the claim other than in connection
with the disposition of all claims of unsecured
creditors of the institution.
(iii) Exceptions
No provision of this paragraph shall apply with respect
to--
(I) any extension of credit from any Federal home
loan bank or Federal Reserve bank to any insured
depository institution; or
(II) any security interest in the assets of the
institution securing any such extension of credit.
(E) No judicial review of determination pursuant to subparagraph
(D)
No court may review the Corporation's determination pursuant
to subparagraph (D) to disallow a claim.
(F) Legal effect of filing
(i) Statute of limitation tolled
For purposes of any applicable statute of limitations,
the filing of a claim with the receiver shall constitute a
commencement of an action.
(ii) No prejudice to other actions
Subject to paragraph (12), the filing of a claim with
the receiver shall not prejudice any right of the claimant
to continue any action which was filed before the
appointment of the receiver.
(6) Provision for agency review or judicial determination of
claims
(A) In general
Before the end of the 60-day period beginning on the earlier
of--
(i) the end of the period described in paragraph
(5)(A)(i) with respect to any claim against a depository
institution for which the Corporation is receiver; or
(ii) the date of any notice of disallowance of such
claim pursuant to paragraph (5)(A)(i),
the claimant may request administrative review of the claim in
accordance with subparagraph (A) or (B) of paragraph (7) or file
suit on such claim (or continue an action commenced before the
appointment of the receiver) in the district or territorial
court of the United States for the district within which the
depository institution's principal place of business is located
or the United States District Court for the District of Columbia
(and such court shall have jurisdiction to hear such claim).
(B) Statute of limitations
If any claimant fails to--
(i) request administrative review of any claim in
accordance with subparagraph (A) or (B) of paragraph (7); or
(ii) file suit on such claim (or continue an action
commenced before the appointment of the receiver),
before the end of the 60-day period described in subparagraph
(A), the claim shall be deemed to be disallowed (other than any
portion of such claim which was allowed by the receiver) as of
the end of such period, such disallowance shall be final, and
the claimant shall have no further rights or remedies with
respect to such claim.
(7) Review of claims
(A) Administrative hearing
If any claimant requests review under this subparagraph in
lieu of filing or continuing any action under paragraph (6) and
the Corporation agrees to such request, the Corporation shall
consider the claim after opportunity for a hearing on the
record. The final determination of the Corporation with respect
to such claim shall be subject to judicial review under chapter
7 of title 5.
(B) Other review procedures
(i) In general
The Corporation shall also establish such alternative
dispute resolution processes as may be appropriate for the
resolution of claims filed under paragraph (5)(A)(i).
(ii) Criteria
In establishing alternative dispute resolution
processes, the Corporation shall strive for procedures which
are expeditious, fair, independent, and low cost.
(iii) Voluntary binding or nonbinding procedures
The Corporation may establish both binding and
nonbinding processes, which may be conducted by any
government or private party, but all parties, including the
claimant and the Corporation, must agree to the use of the
process in a particular case.
(iv) Consideration of incentives
The Corporation shall seek to develop incentives for
claimants to participate in the alternative dispute
resolution process.
(8) Expedited determination of claims
(A) Establishment required
The Corporation shall establish a procedure for expedited
relief outside of the routine claims process established under
paragraph (5) for claimants who--
(i) allege the existence of legally valid and
enforceable or perfected security interests in assets of any
depository institution for which the Corporation has been
appointed receiver; and
(ii) allege that irreparable injury will occur if the
routine claims procedure is followed.
(B) Determination period
Before the end of the 90-day period beginning on the date
any claim is filed in accordance with the procedures established
pursuant to subparagraph (A), the Corporation shall--
(i) determine--
(I) whether to allow or disallow such claim; or
(II) whether such claim should be determined
pursuant to the procedures established pursuant to
paragraph (5); and
(ii) notify the claimant of the determination, and if
the claim is disallowed, provide a statement of each reason
for the disallowance and the procedure for obtaining agency
review or judicial determination.
(C) Period for filing or renewing suit
Any claimant who files a request for expedited relief shall
be permitted to file a suit, or to continue a suit filed before
the appointment of the receiver, seeking a determination of the
claimant's rights with respect to such security interest after
the earlier of--
(i) the end of the 90-day period beginning on the date
of the filing of a request for expedited relief; or
(ii) the date the Corporation denies the claim.
(D) Statute of limitations
If an action described in subparagraph (C) is not filed, or
the motion to renew a previously filed suit is not made, before
the end of the 30-day period beginning on the date on which such
action or motion may be filed in accordance with subparagraph
(B), the claim shall be deemed to be disallowed as of the end of
such period (other than any portion of such claim which was
allowed by the receiver), such disallowance shall be final, and
the claimant shall have no further rights or remedies with
respect to such claim.
(E) Legal effect of filing
(i) Statute of limitation tolled
For purposes of any applicable statute of limitations,
the filing of a claim with the receiver shall constitute a
commencement of an action.
(ii) No prejudice to other actions
Subject to paragraph (12), the filing of a claim with
the receiver shall not prejudice any right of the claimant
to continue any action which was filed before the
appointment of the receiver.
(9) Agreement as basis of claim
(A) Requirements
Except as provided in subparagraph (B), any agreement which
does not meet the requirements set forth in section 1823(e) of
this title shall not form the basis of, or substantially
comprise, a claim against the receiver or the Corporation.
(B) Exception to contemporaneous execution requirement
Notwithstanding section 1823(e)(2) \4\ of this title, any
agreement relating to an extension of credit between a Federal
home loan bank or Federal Reserve bank and any insured
depository institution which was executed before the extension
of credit by such bank to such institution shall be treated as
having been executed contemporaneously with such extension of
credit for purposes of subparagraph (A).
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(10) Payment of claims
(A) In general
The receiver may, in the receiver's discretion and to the
extent funds are available, pay creditor claims which are
allowed by the receiver, approved by the Corporation pursuant to
a final determination pursuant to paragraph (7) or (8), or
determined by the final judgment of any court of competent
jurisdiction in such manner and amounts as are authorized under
this chapter.
(B) Payment of dividends on claims
The receiver may, in the receiver's sole discretion, pay
dividends on proved claims at any time, and no liability shall
attach to the Corporation (in such Corporation's corporate
capacity or as receiver), by reason of any such payment, for
failure to pay dividends to a claimant whose claim is not proved
at the time of any such payment.
(C) Rulemaking authority of Corporation
The Corporation may prescribe such rules, including
definitions of terms, as it deems appropriate to establish a
single uniform interest rate for or to make payments of post
insolvency interest to creditors holding proven claims against
the receivership estates of insured Federal or State depository
institutions following satisfaction by the receiver of the
principal amount of all creditor claims.
(11) Depositor preference
(A) In general
Subject to section 1815(e)(2)(C) of this title, amounts
realized from the liquidation or other resolution of any insured
depository institution by any receiver appointed for such
institution shall be distributed to pay claims (other than
secured claims to the extent of any such security) in the
following order of priority:
(i) Administrative expenses of the receiver.
(ii) Any deposit liability of the institution.
(iii) Any other general or senior liability of the
institution (which is not a liability described in clause
(iv) or (v)).
(iv) Any obligation subordinated to depositors or
general creditors (which is not an obligation described in
clause (v)).
(v) Any obligation to shareholders or members arising as
a result of their status as shareholders or members
(including any depository institution holding company or any
shareholder or creditor of such company).
(B) Effect on State law
(i) In general
The provisions of subparagraph (A) shall not supersede
the law of any State except to the extent such law is
inconsistent with the provisions of such subparagraph, and
then only to the extent of the inconsistency.
(ii) Procedure for determination of inconsistency
Upon the Corporation's own motion or upon the request of
any person with a claim described in subparagraph (A) or any
State which is submitted to the Corporation in accordance
with procedures which the Corporation shall prescribe, the
Corporation shall determine whether any provision of the law
of any State is inconsistent with any provision of
subparagraph (A) and the extent of any such inconsistency.
(iii) Judicial review
The final determination of the Corporation under clause
(ii) shall be subject to judicial review under chapter 7 of
title 5.
(C) Accounting report
Any distribution by the Corporation in connection with any
claim described in subparagraph (A)(v) shall be accompanied by
the accounting report required under paragraph (15)(B).
(12) Suspension of legal actions
(A) In general
After the appointment of a conservator or receiver for an
insured depository institution, the conservator or receiver may
request a stay for a period not to exceed--
(i) 45 days, in the case of any conservator; and
(ii) 90 days, in the case of any receiver,
in any judicial action or proceeding to which such institution
is or becomes a party.
(B) Grant of stay by all courts required
Upon receipt of a request by any conservator or receiver
pursuant to subparagraph (A) for a stay of any judicial action
or proceeding in any court with jurisdiction of such action or
proceeding, the court shall grant such stay as to all parties.
(13) Additional rights and duties
(A) Prior final adjudication
The Corporation shall abide by any final unappealable
judgment of any court of competent jurisdiction which was
rendered before the appointment of the Corporation as
conservator or receiver.
(B) Rights and remedies of conservator or receiver
In the event of any appealable judgment, the Corporation as
conservator or receiver shall--
(i) have all the rights and remedies available to the
insured depository institution (before the appointment of
such conservator or receiver) and the Corporation in its
corporate capacity, including removal to Federal court and
all appellate rights; and
(ii) not be required to post any bond in order to pursue
such remedies.
(C) No attachment or execution
No attachment or execution may issue by any court upon
assets in the possession of the receiver.
(D) Limitation on judicial review
Except as otherwise provided in this subsection, no court
shall have jurisdiction over--
(i) any claim or action for payment from, or any action
seeking a determination of rights with respect to, the
assets of any depository institution for which the
Corporation has been appointed receiver, including assets
which the Corporation may acquire from itself as such
receiver; or
(ii) any claim relating to any act or omission of such
institution or the Corporation as receiver.
(E) Disposition of assets
In exercising any right, power, privilege, or authority as
conservator or receiver in connection with any sale or
disposition of assets of any insured depository institution for
which the Corporation has been appointed conservator or
receiver, including any sale or disposition of assets acquired
by the Corporation under section 1823(d)(1) of this title, the
Corporation shall conduct its operations in a manner which--
(i) maximizes the net present value return from the sale
or disposition of such assets;
(ii) minimizes the amount of any loss realized in the
resolution of cases;
(iii) ensures adequate competition and fair and
consistent treatment of offerors;
(iv) prohibits discrimination on the basis of race, sex,
or ethnic groups in the solicitation and consideration of
offers; and
(v) maximizes the preservation of the availability and
affordability of residential real property for low- and
moderate-income individuals.
(14) Statute of limitations for actions brought by
conservator or receiver
(A) In general
Notwithstanding any provision of any contract, the
applicable statute of limitations with regard to any action
brought by the Corporation as conservator or receiver shall be--
(i) in the case of any contract claim, the longer of--
(I) the 6-year period beginning on the date the
claim accrues; or
(II) the period applicable under State law; and
(ii) in the case of any tort claim (other than a claim
which is subject to section 1441a(b)(14) of this title), the
longer of--
(I) the 3-year period beginning on the date the
claim accrues; or
(II) the period applicable under State law.
(B) Determination of the date on which a claim accrues
For purposes of subparagraph (A), the date on which the
statute of limitations begins to run on any claim described in
such subparagraph shall be the later of--
(i) the date of the appointment of the Corporation as
conservator or receiver; or
(ii) the date on which the cause of action accrues.
(C) Revival of expired State causes of action
(i) In general
In the case of any tort claim described in clause (ii)
for which the statute of limitation applicable under State
law with respect to such claim has expired not more than 5
years before the appointment of the Corporation as
conservator or receiver, the Corporation may bring an action
as conservator or receiver on such claim without regard to
the expiration of the statute of limitation applicable under
State law.
(ii) Claims described
A tort claim referred to in clause (i) is a claim
arising from fraud, intentional misconduct resulting in
unjust enrichment, or intentional misconduct resulting in
substantial loss to the institution.
(15) Accounting and recordkeeping requirements
(A) In general
The Corporation as conservator or receiver shall, consistent
with the accounting and reporting practices and procedures
established by the Corporation, maintain a full accounting of
each conservatorship and receivership or other disposition of
institutions in default.
(B) Annual accounting or report
With respect to each conservatorship or receivership to
which the Corporation was appointed, the Corporation shall make
an annual accounting or report, as appropriate, available to the
Secretary of the Treasury, the Comptroller General of the United
States, and the authority which appointed the Corporation as
conservator or receiver.
(C) Availability of reports
Any report prepared pursuant to subparagraph (B) shall be
made available by the Corporation upon request to any
shareholder of the depository institution for which the
Corporation was appointed conservator or receiver or any other
member of the public.
(D) Recordkeeping requirement
After the end of the 6-year period beginning on the date the
Corporation is appointed as receiver of an insured depository
institution, the Corporation may destroy any records of such
institution which the Corporation, in the Corporation's
discretion, determines to be unnecessary unless directed not to
do so by a court of competent jurisdiction or governmental
agency, or prohibited by law.
(16) Contracts with State housing finance authorities
(A) In general
The Corporation may enter into contracts with any State
housing finance authority for the sale of mortgage-related
assets (as such terms are defined in section 1441a-1 of this
title) of any depository institution in default (including
assets and liabilities associated with any trust business), such
contracts to be effective in accordance with their terms without
any further approval, assignment, or consent with respect
thereto.
(B) Factors to consider
In evaluating the disposition of mortgage related assets to
any State housing finance authority the Corporation shall
consider--
(i) the State housing finance authority's ability to
acquire and service current, delinquent, and defaulted
mortgage related assets;
(ii) the State housing finance authority's ability to
further national housing policies;
(iii) the State housing finance authority's sensitivity
to the impact of the sale of mortgage related assets upon
the State and local communities;
(iv) the costs to the Federal Government associated with
alternative ownership or disposition of the mortgage related
assets;
(v) the minimization of future guaranties which may be
required of the Federal Government;
(vi) the maximization of mortgage related asset values;
and
(vii) the utilization of institutions currently
established in mortgage related asset market activities.
(17) Fraudulent transfers
(A) In general
The Corporation, as conservator or receiver for any insured
depository institution, and any conservator appointed by the
Comptroller of the Currency or the Director of the Office of
Thrift Supervision may avoid a transfer of any interest of an
institution-affiliated party, or any person who the Corporation
or conservator determines is a debtor of the institution, in
property, or any obligation incurred by such party or person,
that was made within 5 years of the date on which the
Corporation or conservator was appointed conservator or receiver
if such party or person voluntarily or involuntarily made such
transfer or incurred such liability with the intent to hinder,
delay, or defraud the insured depository institution, the
Corporation or other conservator, or any other appropriate
Federal banking agency.
(B) Right of recovery
To the extent a transfer is avoided under subparagraph (A),
the Corporation or any conservator described in such
subparagraph may recover, for the benefit of the insured
depository institution, the property transferred, or, if a court
so orders, the value of such property (at the time of such
transfer) from--
(i) the initial transferee of such transfer or the
institution-affiliated party or person for whose benefit
such transfer was made; or
(ii) any immediate or mediate transferee of any such
initial transferee.
(C) Rights of transferee or obligee
The Corporation or any conservator described in subparagraph
(A) may not recover under subparagraph (B) from--
(i) any transferee that takes for value, including
satisfaction or securing of a present or antecedent debt, in
good faith; or
(ii) any immediate or mediate good faith transferee of
such transferee.
(D) Rights under this paragraph
The rights under this paragraph of the Corporation and any
conservator described in subparagraph (A) shall be superior to
any rights of a trustee or any other party (other than any party
which is a Federal agency) under title 11.
(18) Attachment of assets and other injunctive relief
Subject to paragraph (19), any court of competent jurisdiction
may, at the request of--
(A) the Corporation (in the Corporation's capacity as
conservator or receiver for any insured depository institution
or in the Corporation's corporate capacity with respect to any
asset acquired or liability assumed by the Corporation under
this section or section 1822 or 1823 of this title); or
(B) any conservator appointed by the Comptroller of the
Currency or the Director of the Office of Thrift Supervision,
issue an order in accordance with Rule 65 of the Federal Rules of
Civil Procedure, including an order placing the assets of any person
designated by the Corporation or such conservator under the control
of the court and appointing a trustee to hold such assets.
(19) Standards
(A) Showing
Rule 65 of the Federal Rules of Civil Procedure shall apply
with respect to any proceeding under paragraph (18) without
regard to the requirement of such rule that the applicant show
that the injury, loss, or damage is irreparable and immediate.
(B) State proceeding
If, in the case of any proceeding in a State court, the
court determines that rules of civil procedure available under
the laws of such State provide substantially similar protections
to such party's right to due process as Rule 65 (as modified
with respect to such proceeding by subparagraph (A)), the relief
sought by the Corporation or a conservator pursuant to paragraph
(18) may be requested under the laws of such State.
(20) Treatment of claims arising from breach of contracts
executed by the receiver or conservator
Notwithstanding any other provision of this subsection, any
final and unappealable judgment for monetary damages entered against
a receiver or conservator for an insured depository institution for
the breach of an agreement executed or approved by such receiver or
conservator after the date of its appointment shall be paid as an
administrative expense of the receiver or conservator. Nothing in
this paragraph shall be construed to limit the power of a receiver
or conservator to exercise any rights under contract or law,
including to terminate, breach, cancel, or otherwise discontinue
such agreement.
(e) Provisions relating to contracts entered into before appointment of
conservator or receiver
(1) Authority to repudiate contracts
In addition to any other rights a conservator or receiver may
have, the conservator or receiver for any insured depository
institution may disaffirm or repudiate any contract or lease--
(A) to which such institution is a party;
(B) the performance of which the conservator or receiver, in
the conservator's or receiver's discretion, determines to be
burdensome; and
(C) the disaffirmance or repudiation of which the
conservator or receiver determines, in the conservator's or
receiver's discretion, will promote the orderly administration
of the institution's affairs.
(2) Timing of repudiation
The conservator or receiver appointed for any insured depository
institution in accordance with subsection (c) of this section shall
determine whether or not to exercise the rights of repudiation under
this subsection within a reasonable period following such
appointment.
(3) Claims for damages for repudiation
(A) In general
Except as otherwise provided in subparagraph (C) and
paragraphs (4), (5), and (6), the liability of the conservator
or receiver for the disaffirmance or repudiation of any contract
pursuant to paragraph (1) shall be--
(i) limited to actual direct compensatory damages; and
(ii) determined as of--
(I) the date of the appointment of the conservator
or receiver; or
(II) in the case of any contract or agreement
referred to in paragraph (8), the date of the
disaffirmance or repudiation of such contract or
agreement.
(B) No liability for other damages
For purposes of subparagraph (A), the term ``actual direct
compensatory damages'' does not include--
(i) punitive or exemplary damages;
(ii) damages for lost profits or opportunity; or
(iii) damages for pain and suffering.
(C) Measure of damages for repudiation of financial contracts
In the case of any qualified financial contract or agreement
to which paragraph (8) applies, compensatory damages shall be--
(i) deemed to include normal and reasonable costs of
cover or other reasonable measures of damages utilized in
the industries for such contract and agreement claims; and
(ii) paid in accordance with this subsection and
subsection (i) of this section except as otherwise
specifically provided in this section.
(4) Leases under which the institution is the lessee
(A) In general
If the conservator or receiver disaffirms or repudiates a
lease under which the insured depository institution was the
lessee, the conservator or receiver shall not be liable for any
damages (other than damages determined pursuant to subparagraph
(B)) for the disaffirmance or repudiation of such lease.
(B) Payments of rent
Notwithstanding subparagraph (A), the lessor under a lease
to which such subparagraph applies shall--
(i) be entitled to the contractual rent accruing before
the later of the date--
(I) the notice of disaffirmance or repudiation is
mailed; or
(II) the disaffirmance or repudiation becomes
effective,
unless the lessor is in default or breach of the terms of the
lease;
(ii) have no claim for damages under any acceleration
clause or other penalty provision in the lease; and
(iii) have a claim for any unpaid rent, subject to all
appropriate offsets and defenses, due as of the date of the
appointment which shall be paid in accordance with this
subsection and subsection (i) of this section.
(5) Leases under which the institution is the lessor
(A) In general
If the conservator or receiver repudiates an unexpired
written lease of real property of the insured depository
institution under which the institution is the lessor and the
lessee is not, as of the date of such repudiation, in default,
the lessee under such lease may either--
(i) treat the lease as terminated by such repudiation;
or
(ii) remain in possession of the leasehold interest for
the balance of the term of the lease unless the lessee
defaults under the terms of the lease after the date of such
repudiation.
(B) Provisions applicable to lessee remaining in possession
If any lessee under a lease described in subparagraph (A)
remains in possession of a leasehold interest pursuant to clause
(ii) of such subparagraph--
(i) the lessee--
(I) shall continue to pay the contractual rent
pursuant to the terms of the lease after the date of the
repudiation of such lease;
(II) may offset against any rent payment which
accrues after the date of the repudiation of the lease,
any damages which accrue after such date due to the
nonperformance of any obligation of the insured
depository institution under the lease after such date;
and
(ii) the conservator or receiver shall not be liable to
the lessee for any damages arising after such date as a
result of the repudiation other than the amount of any
offset allowed under clause (i)(II).
(6) Contracts for the sale of real property
(A) In general
If the conservator or receiver repudiates any contract
(which meets the requirements of each paragraph of section
1823(e) of this title) for the sale of real property and the
purchaser of such real property under such contract is in
possession and is not, as of the date of such repudiation, in
default, such purchaser may either--
(i) treat the contract as terminated by such
repudiation; or
(ii) remain in possession of such real property.
(B) Provisions applicable to purchaser remaining in possession
If any purchaser of real property under any contract
described in subparagraph (A) remains in possession of such
property pursuant to clause (ii) of such subparagraph--
(i) the purchaser--
(I) shall continue to make all payments due under
the contract after the date of the repudiation of the
contract; and
(II) may offset against any such payments any
damages which accrue after such date due to the
nonperformance (after such date) of any obligation of
the depository institution under the contract; and
(ii) the conservator or receiver shall--
(I) not be liable to the purchaser for any damages
arising after such date as a result of the repudiation
other than the amount of any offset allowed under clause
(i)(II);
(II) deliver title to the purchaser in accordance
with the provisions of the contract; and
(III) have no obligation under the contract other
than the performance required under subclause (II).
(C) Assignment and sale allowed
(i) In general
No provision of this paragraph shall be construed as
limiting the right of the conservator or receiver to assign
the contract described in subparagraph (A) and sell the
property subject to the contract and the provisions of this
paragraph.
(ii) No liability after assignment and sale
If an assignment and sale described in clause (i) is
consummated, the conservator or receiver shall have no
further liability under the contract described in
subparagraph (A) or with respect to the real property which
was the subject of such contract.
(7) Provisions applicable to service contracts
(A) Services performed before appointment
In the case of any contract for services between any person
and any insured depository institution for which the Corporation
has been appointed conservator or receiver, any claim of such
person for services performed before the appointment of the
conservator or the receiver shall be--
(i) a claim to be paid in accordance with subsections
(d) and (i) of this section; and
(ii) deemed to have arisen as of the date the
conservator or receiver was appointed.
(B) Services performed after appointment and prior to
repudiation
If, in the case of any contract for services described in
subparagraph (A), the conservator or receiver accepts
performance by the other person before the conservator or
receiver makes any determination to exercise the right of
repudiation of such contract under this section--
(i) the other party shall be paid under the terms of the
contract for the services performed; and
(ii) the amount of such payment shall be treated as an
administrative expense of the conservatorship or
receivership.
(C) Acceptance of performance no bar to subsequent repudiation
The acceptance by any conservator or receiver of services
referred to in subparagraph (B) in connection with a contract
described in such subparagraph shall not affect the right of the
conservator or receiver to repudiate such contract under this
section at any time after such performance.
(8) Certain qualified financial contracts
(A) Rights of parties to contracts
Subject to paragraph (10) of this subsection and
notwithstanding any other provision of this chapter (other than
subsection (d)(9) of this section and section 1823(e) of this
title), any other Federal law, or the law of any State, no
person shall be stayed or prohibited from exercising--
(i) any right to cause the termination or liquidation of
any qualified financial contract with an insured depository
institution which arises upon the appointment of the
Corporation as receiver for such institution at any time
after such appointment;
(ii) any right under any security arrangement relating
to any contract or agreement described in clause (i); or
(iii) any right to offset or net out any termination
value, payment amount, or other transfer obligation arising
under or in connection with 1 or more contracts and
agreements described in clause (i), including any master
agreement for such contracts or agreements.
(B) Applicability of other provisions
Subsection (d)(12) of this section shall apply in the case
of any judicial action or proceeding brought against any
receiver referred to in subparagraph (A), or the insured
depository institution for which such receiver was appointed, by
any party to a contract or agreement described in subparagraph
(A)(i) with such institution.
(C) Certain transfers not avoidable
(i) In general
Notwithstanding paragraph (11), the Corporation, whether
acting as such or as conservator or receiver of an insured
depository institution, may not avoid any transfer of money
or other property in connection with any qualified financial
contract with an insured depository institution.
(ii) Exception for certain transfers
Clause (i) shall not apply to any transfer of money or
other property in connection with any qualified financial
contract with an insured depository institution if the
Corporation determines that the transferee had actual intent
to hinder, delay, or defraud such institution, the creditors
of such institution, or any conservator or receiver
appointed for such institution.
(D) Certain contracts and agreements defined
For purposes of this subsection--
(i) Qualified financial contract
The term ``qualified financial contract'' means any
securities contract, commodity contract, forward contract,
repurchase agreement, swap agreement, and any similar
agreement that the Corporation determines by regulation to
be a qualified financial contract for purposes of this
paragraph.
(ii) Securities contract
The term ``securities contract''--
(I) has the meaning given to such term in section
741 of title 11, except that the term ``security'' (as
used in such section) shall be deemed to include any
mortgage loan, any mortgage-related security (as defined
in section 78c(a)(41) of title 15), and any interest in
any mortgage loan or mortgage-related security; and
(II) does not include any participation in a
commercial mortgage loan unless the Corporation
determines by regulation, resolution, or order to
include any such participation within the meaning of
such term.
(iii) Commodity contract
The term ``commodity contract'' has the meaning given to
such term in section 761 of title 11.
(iv) Forward contract
The term ``forward contract'' has the meaning given to
such term in section 101 of title 11.
(v) Repurchase agreement
The term ``repurchase agreement''--
(I) has the meaning given to such term in section
101 of title 11, except that the items (as described in
such section) which may be subject to any such agreement
shall be deemed to include mortgage-related securities
(as such term is defined in section 78c(a)(41) of title
15), any mortgage loan, and any interest in any mortgage
loan; and
(II) does not include any participation in a
commercial mortgage loan unless the Corporation
determines by regulation, resolution, or order to
include any such participation within the meaning of
such term.
(vi) Swap agreement
The term ``swap agreement''--
(I) means any agreement, including the terms and
conditions incorporated by reference in any such
agreement, which is a rate swap agreement, basis swap,
commodity swap, forward rate agreement, interest rate
future, interest rate option purchased, forward foreign
exchange agreement, rate cap agreement, rate floor
agreement, rate collar agreement, currency swap
agreement, cross-currency rate swap agreement, currency
future, or currency option purchased or any other
similar agreement, and
(II) includes any combination of such agreements and
any option to enter into any such agreement.
(vii) Treatment of master agreement as 1 swap
agreement
Any master agreement for any agreements described in
clause (vi)(I) together with all supplements to such master
agreement shall be treated as 1 swap agreement.
(viii) Transfer
The term ``transfer'' has the meaning given to such term
in section 101 of title 11.
(E) Certain protections in event of appointment of conservator
Notwithstanding any other provision of this chapter (other
than paragraph (12) of this subsection, subsection (d)(9) of
this section, and section 1823(e) of this title), any other
Federal law, or the law of any State, no person shall be stayed
or prohibited from exercising--
(i) any right such person has to cause the termination,
liquidation, or acceleration of any qualified financial
contract with a depository institution in a conservatorship
based upon a default under such financial contract which is
enforceable under applicable noninsolvency law;
(ii) any right under any security arrangement relating
to such qualified financial contracts; or
(iii) any right to offset or net out any termination
values, payment amounts, or other transfer obligations
arising under or in connection with such qualified financial
contracts.
(9) Transfer of qualified financial contracts
In making any transfer of assets or liabilities of a depository
institution in default which includes any qualified financial
contract, the conservator or receiver for such depository
institution shall either--
(A) transfer to 1 depository institution (other than a
depository institution in default)--
(i) all qualified financial contracts between--
(I) any person or any affiliate of such person; and
(II) the depository institution in default;
(ii) all claims of such person or any affiliate of such
person against such depository institution under any such
contract (other than any claim which, under the terms of any
such contract, is subordinated to the claims of general
unsecured creditors of such institution);
(iii) all claims of such depository institution against
such person or any affiliate of such person under any such
contract; and
(iv) all property securing any claim described in clause
(ii) or (iii) under any such contract; or
(B) transfer none of the financial contracts, claims, or
property referred to in subparagraph (A) (with respect to such
person and any affiliate of such person).
(10) Notification of transfer
(A) In general
If--
(i) the conservator or receiver for an insured
depository institution in default makes any transfer of the
assets and liabilities of such institution; and
(ii) the transfer includes any qualified financial
contract,
the conservator or receiver shall use such conservator's or
receiver's best efforts to notify any person who is a party to
any such contract of such transfer by 12:00, noon (local time)
on the business day following such transfer.
(B) ``Business day'' defined
For purposes of this paragraph, the term ``business day''
means any day other than any Saturday, Sunday, or any day on
which either the New York Stock Exchange or the Federal Reserve
Bank of New York is closed.
(11) Certain security interests not avoidable
No provision of this subsection shall be construed as permitting
the avoidance of any legally enforceable or perfected security
interest in any of the assets of any depository institution except
where such an interest is taken in contemplation of the
institution's insolvency or with the intent to hinder, delay, or
defraud the institution or the creditors of such institution.
(12) Authority to enforce contracts
(A) In general
The conservator or receiver may enforce any contract, other
than a director's or officer's liability insurance contract or a
depository institution bond, entered into by the depository
institution notwithstanding any provision of the contract
providing for termination, default, acceleration, or exercise of
rights upon, or solely by reason of, insolvency or the
appointment of a conservator or receiver.
(B) Certain rights not affected
No provision of this paragraph may be construed as impairing
or affecting any right of the conservator or receiver to enforce
or recover under a director's or officer's liability insurance
contract or depository institution bond under other applicable
law.
(13) Exception for Federal Reserve and Federal home loan
banks
No provision of this subsection shall apply with respect to--
(A) any extension of credit from any Federal home loan bank
or Federal Reserve bank to any insured depository institution;
or
(B) any security interest in the assets of the institution
securing any such extension of credit.
(14) Selling credit card accounts receivable
(A) Notification required
An undercapitalized insured depository institution (as
defined in section 1831o of this title) shall notify the
Corporation in writing before entering into an agreement to sell
credit card accounts receivable.
(B) Waiver by Corporation
The Corporation may at any time, in its sole discretion and
upon such terms as it may prescribe, waive its right to
repudiate an agreement to sell credit card accounts receivable
if the Corporation--
(i) determines that the waiver is in the best interests
of the deposit insurance fund; and
(ii) provides a written waiver to the selling
institution.
(C) Effect of waiver on successors
(i) In general
If, under subparagraph (B), the Corporation has waived
its right to repudiate an agreement to sell credit card
accounts receivable--
(I) any provision of the agreement that restricts
solicitation of a credit card customer of the selling
institution, or the use of a credit card customer list
of the institution, shall bind any receiver or
conservator of the institution; and
(II) the Corporation shall require any acquirer of
the selling institution, or of substantially all of the
selling institution's assets or liabilities, to agree to
be bound by a provision described in subclause (I) as if
the acquirer were the selling institution.
(ii) Exception
Clause (i)(II) does not--
(I) restrict the acquirer's authority to offer any
product or service to any person identified without
using a list of the selling institution's customers in
violation of the agreement;
(II) require the acquirer to restrict any
preexisting relationship between the acquirer and a
customer; or
(III) apply to any transaction in which the acquirer
acquires only insured deposits.
(D) Waiver not actionable
The Corporation shall not, in any capacity, be liable to any
person for damages resulting from the waiver of or failure to
waive the Corporation's right under this section to repudiate
any contract or lease, including an agreement to sell credit
card accounts receivable. No court shall issue any order
affecting any such waiver or failure to waive.
(E) Other authority not affected
This paragraph does not limit any other authority of the
Corporation to waive the Corporation's right to repudiate an
agreement or lease under this section.
(15) Certain credit card customer lists protected
(A) In general
If any insured depository institution sells credit card
accounts receivable under an agreement negotiated at arm's
length that provides for the sale of the institution's credit
card customer list, the Corporation shall prohibit any party to
a transaction with respect to the institution under this section
or section 1823 of this title from using the list, except as
permitted under the agreement.
(B) Fraudulent transactions excluded
Subparagraph (A) does not limit the Corporation's authority
to repudiate any agreement entered into with the intent to
hinder, delay, or defraud the institution, the institution's
creditors, or the Corporation.
(f) Payment of insured deposits
(1) In general
In case of the liquidation of, or other closing or winding up of
the affairs of, any insured depository institution, payment of the
insured deposits in such institution shall be made by the
Corporation as soon as possible, subject to the provisions of
subsection (g) of this section, either by cash or by making
available to each depositor a transferred deposit in a new insured
depository institution in the same community or in another insured
depository institution in an amount equal to the insured deposit of
such depositor, except that--
(A) all payments made pursuant to this section on account of
a closed Bank Insurance Fund member shall be made only from the
Bank Insurance Fund, and
(B) all payments made pursuant to this section on account of
a closed Savings Association Insurance Fund member shall be made
only from the Savings Association Insurance Fund.
(2) Proof of claims
The Corporation, in its discretion, may require proof of claims
to be filed and may approve or reject such claims for insured
deposits.
(3) Resolution of disputes
(A) Resolutions in accordance with Corporation regulations
In the case of any disputed claim relating to any insured
deposit or any determination of insurance coverage with respect
to any deposit, the Corporation may resolve such disputed claim
in accordance with regulations prescribed by the Corporation
establishing procedures for resolving such claims.
(B) Adjudication of claims
If the Corporation has not prescribed regulations
establishing procedures for resolving disputed claims, the
Corporation may require the final determination of a court of
competent jurisdiction before paying any such claim.
(4) Review of Corporation's determination
Final determination made by the Corporation shall be reviewable
in accordance with chapter 7 of title 5 by the United States Court
of Appeals for the District of Columbia or the court of appeals for
the Federal judicial circuit where the principal place of business
of the depository institution is located.
(5) Statute of limitations
Any request for review of a final determination by the
Corporation shall be filed with the appropriate circuit court of
appeals not later than 60 days after such determination is ordered.
(g) Subrogation of Corporation
(1) In general
Notwithstanding any other provision of Federal law, the law of
any State, or the constitution of any State, the Corporation, upon
the payment to any depositor as provided in subsection (f) of this
section in connection with any insured depository institution or
insured branch described in such subsection or the assumption of any
deposit in such institution or branch by another insured depository
institution pursuant to this section or section 1823 of this title,
shall be subrogated to all rights of the depositor against such
institution or branch to the extent of such payment or assumption.
(2) Dividends on subrogated amounts
The subrogation of the Corporation under paragraph (1) with
respect to any insured depository institution shall include the
right on the part of the Corporation to receive the same dividends
from the proceeds of the assets of such institution and recoveries
on account of stockholders' liability as would have been payable to
the depositor on a claim for the insured deposit, but such depositor
shall retain such claim for any uninsured or unassumed portion of
the deposit.
(3) Waiver of certain claims
With respect to any bank which closes after May 25, 1938, the
Corporation shall waive, in favor only of any person against whom
stockholders' individual liability may be asserted, any claim on
account of such liability in excess of the liability, if any, to the
bank or its creditors, for the amount unpaid upon such stock in such
bank; but any such waiver shall be effected in such manner and on
such terms and conditions as will not increase recoveries or
dividends on account of claims to which the Corporation is not
subrogated.
(4) Applicability of State law
Subject to subsection (d)(11) of this section, if the
Corporation is appointed pursuant to subsection (c)(3) of this
section, or determines not to invoke the authority conferred in
subsection (c)(4) of this section, the rights of depositors and
other creditors of any State depository institution shall be
determined in accordance with the applicable provisions of State
law.
(h) Conditions applicable to resolution proceedings
(1) Consideration of local economic impact required
The Corporation shall fully consider the adverse economic impact
on local communities, including businesses and farms, of actions to
be taken by it during the administration and liquidation of loans of
a depository institution in default.
(2) Actions to alleviate adverse economic impact to be
considered
The actions which the Corporation shall consider include the
release of proceeds from the sale of products and services for
family living and business expenses and shortening the undue length
of the decisionmaking process for the acceptance of offers of
settlement contingent upon third party financing.
(3) Guidelines required
The Corporation shall adopt and publish procedures and
guidelines to minimize adverse economic effects caused by its
actions on individual debtors in the community.
(4) Financial services industry impact analysis
After the appointment of the Corporation as conservator or
receiver for any insured depository institution and before taking
any action under this section or section 1823 of this title in
connection with the resolution of such institution, the Corporation
shall--
(A) evaluate the likely impact of the means of resolution,
and any action which the Corporation may take in connection with
such resolution, on the viability of other insured depository
institutions in the same community; and
(B) take such evaluation into account in determining the
means for resolving the institution and establishing the terms
and conditions for any such action.
(i) Valuation of claims in default
(1) In general
Notwithstanding any other provision of Federal law or the law of
any State and regardless of the method which the Corporation
determines to utilize with respect to an insured depository
institution in default or in danger of default, including
transactions authorized under subsection (n) of this section and
section 1823(c) of this title, this subsection shall govern the
rights of the creditors (other than insured depositors) of such
institution.
(2) Maximum liability
The maximum liability of the Corporation, acting as receiver or
in any other capacity, to any person having a claim against the
receiver or the insured depository institution for which such
receiver is appointed shall equal the amount such claimant would
have received if the Corporation had liquidated the assets and
liabilities of such institution without exercising the Corporation's
authority under subsection (n) of this section or section 1823 of
this title.
(3) Additional payments authorized
(A) In general
The Corporation may, in its discretion and in the interests
of minimizing its losses, use its own resources to make
additional payments or credit additional amounts to or with
respect to or for the account of any claimant or category of
claimants. Notwithstanding any other provision of Federal or
State law, or the constitution of any State, the Corporation
shall not be obligated, as a result of having made any such
payment or credited any such amount to or with respect to or for
the account of any claimant or category of claimants, to make
payments to any other claimant or category of claimants.
(B) Source of funds
If the depository institution in default is a Bank Insurance
Fund member, the Corporation may only make such payments out of
funds held in the Bank Insurance Fund. If the depository
institution in default is a Savings Association Insurance Fund
member, the Corporation may only make such payments out of funds
held in the Savings Association Insurance Fund.
(C) Manner of payment
The Corporation may make the payments or credit the amounts
specified in subparagraphs (A) and (B) directly to the claimants
or may make such payments or credit such amounts to an open
insured depository institution to induce such institution to
accept liability for such claims.
(j) Limitation on court action
Except as provided in this section, no court may take any action,
except at the request of the Board of Directors by regulation or order,
to restrain or affect the exercise of powers or functions of the
Corporation as a conservator or a receiver.
(k) Liability of directors and officers
A director or officer of an insured depository institution may be
held personally liable for monetary damages in any civil action by, on
behalf of, or at the request or direction of the Corporation, which
action is prosecuted wholly or partially for the benefit of the
Corporation--
(1) acting as conservator or receiver of such institution,
(2) acting based upon a suit, claim, or cause of action
purchased from, assigned by, or otherwise conveyed by such receiver
or conservator, or
(3) acting based upon a suit, claim, or cause of action
purchased from, assigned by, or otherwise conveyed in whole or in
part by an insured depository institution or its affiliate in
connection with assistance provided under section 1823 of this
title,
for gross negligence, including any similar conduct or conduct that
demonstrates a greater disregard of a duty of care (than gross
negligence) including intentional tortious conduct, as such terms are
defined and determined under applicable State law. Nothing in this
paragraph shall impair or affect any right of the Corporation under
other applicable law.
(l) Damages
In any proceeding related to any claim against an insured depository
institution's director, officer, employee, agent, attorney, accountant,
appraiser, or any other party employed by or providing services to an
insured depository institution, recoverable damages determined to result
from the improvident or otherwise improper use or investment of any
insured depository institution's assets shall include principal losses
and appropriate interest.
(m) New banks
(1) Organization authorized
As soon as possible after the default of an insured bank, the
Corporation, if it finds that it is advisable and in the interest of
the depositors of the insured bank in default or the public shall
organize a new national bank in the same community as the bank in
default to assume the insured deposits of such bank in default and
otherwise to perform temporarily the functions hereinafter provided
for.
(2) Articles of association
The articles of association and the organization certificate of
the new bank shall be executed by representatives designated by the
Corporation.
(3) Capital stock
No capital stock need be paid in by the Corporation.
(4) Executive officer
The new bank shall not have a board of directors, but shall be
managed by an executive officer appointed by the Board of Directors
of the Corporation who shall be subject to its directions.
(5) Subject to laws relating to national banks
In all other respects the new bank shall be organized in
accordance with the then existing provisions of law relating to the
organization of national banking associations.
(6) New deposits
The new bank may, with the approval of the Corporation, accept
new deposits which shall be subject to withdrawal on demand and
which, except where the new bank is the only bank in the community,
shall not exceed $100,000 from any depositor.
(7) Insured status
The new bank, without application to or approval by the
Corporation, shall be an insured depository institution and shall
maintain on deposit with the Federal Reserve bank of its district
reserves in the amount required by law for member banks, but it
shall not be required to subscribe for stock of the Federal Reserve
bank.
(8) Investments
Funds of the new bank shall be kept on hand in cash, invested in
obligations of the United States or obligations guaranteed as to
principal and interest by the United States, or deposited with the
Corporation, any Federal Reserve bank, or, to the extent of the
insurance coverage on any such deposit, an insured depository
institution.
(9) Conduct of business
The new bank, unless otherwise authorized by the Comptroller of
the Currency, shall transact business only as authorized by this
chapter and as may be incidental to its organization.
(10) Exempt status
Notwithstanding any other provision of Federal or State law, the
new bank, its franchise, property, and income shall be exempt from
all taxation now or hereafter imposed by the United States, by any
territory, dependency, or possession thereof, or by any State,
county, municipality, or local taxing authority.
(11) Transfer of deposits
(A) Upon the organization of a new bank, the Corporation shall
promptly make available to it an amount equal to the estimated
insured deposits of such bank in default plus the estimated amount
of the expenses of operating the new bank, and shall determine as
soon as possible the amount due each depositor for the depositor's
insured deposit in the bank in default, and the total expenses of
operation of the new bank.
(B) Upon such determination, the amounts so estimated and made
available shall be adjusted to conform to the amounts so determined.
(12) Earnings
Earnings of the new bank shall be paid over or credited to the
Corporation in such adjustment.
(13) Losses
If any new bank, during the period it continues its status as
such, sustains any losses with respect to which it is not
effectively protected except by reason of being an insured bank, the
Corporation shall furnish to it additional funds in the amount of
such losses.
(14) Payment of insured deposits
(A) The new bank shall assume as transferred deposits the
payment of the insured deposits of such bank in default to each of
its depositors.
(B) Of the amounts so made available, the Corporation shall
transfer to the new bank, in cash, such sums as may be necessary to
enable it to meet its expenses of operation and immediate cash
demands on such transferred deposits, and the remainder of such
amounts shall be subject to withdrawal by the new bank on demand.
(15) Issuance of stock
(A) Whenever in the judgment of the Board of Directors it is
desirable to do so, the Corporation shall cause capital stock of the
new bank to be offered for sale on such terms and conditions as the
Board of Directors shall deem advisable in an amount sufficient, in
the opinion of the Board of Directors, to make possible the conduct
of the business of the new bank on a sound basis, but in no event
less than that required by section 51 \5\ of this title for the
organization of a national bank in the place where such new bank is
located.
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(B) The stockholders of the insured bank in default shall be
given the first opportunity to purchase any shares of common stock
so offered.
(16) Issuance of certificate
Upon proof that an adequate amount of capital stock in the new
bank has been subscribed and paid for in cash, the Comptroller of
the Currency shall require the articles of association and the
organization certificate to be amended to conform to the
requirements for the organization of a national bank, and
thereafter, when the requirements of law with respect to the
organization of a national bank have been complied with, the
Comptroller of the Currency shall issue to the bank a certificate of
authority to commence business, and thereupon the bank shall cease
to have the status of a new bank, shall be managed by directors
elected by its own shareholders, may exercise all the powers granted
by law, and shall be subject to all provisions of law relating to
national banks. Such bank shall thereafter be an insured national
bank, without certification to or approval by the Corporation.
(17) Transfer to other institution
If the capital stock of the new bank is not offered for sale, or
if an adequate amount of capital for such new bank is not subscribed
and paid for, the Board of Directors may offer to transfer its
business to any insured depository institution in the same community
which will take over its assets, assume its liabilities, and pay to
the Corporation for such business such amount as the Board of
Directors may deem adequate; or the Board of Directors in its
discretion may change the location of the new bank to the office of
the Corporation or to some other place or may at any time wind up
its affairs as herein provided.
(18) Winding up
Unless the capital stock of the new bank is sold or its assets
are taken over and its liabilities are assumed by an insured
depository institution as above provided within 2 years after the
date of its organization, the Corporation shall wind up the affairs
of such bank, after giving such notice, if any, as the Comptroller
of the Currency may require, and shall certify to the Comptroller of
the Currency the termination of the new bank. Thereafter the
Corporation shall be liable for the obligations of such bank and
shall be the owner of its assets.
(19) Applicability of certain laws
The provisions of sections 181 and 182 of this title shall not
apply to a new bank under this subsection.
(n) Bridge banks
(1) Organization
(A) Purpose
When 1 or more insured banks are in default, or when the
Corporation anticipates that 1 or more insured banks may become
in default, the Corporation may, in its discretion, organize,
and the Office of the Comptroller of the Currency shall charter,
1 or more national banks with respect thereto with the powers
and attributes of national banking associations, subject to the
provisions of this subsection, to be referred to as bridge
banks.
(B) Authorities
Upon the granting of a charter to a bridge bank, the bridge
bank may--
(i) assume such deposits of such insured bank or banks
that is or are in default or in danger of default as the
Corporation may, in its discretion, determine to be
appropriate, except that if any insured deposits of a bank
are assumed, all insured deposits of that bank shall be
assumed by the bridge bank or another insured depository
institution;
(ii) assume such other liabilities (including
liabilities associated with any trust business) of such
insured bank or banks that is or are in default or in danger
of default as the Corporation may, in its discretion,
determine to be appropriate;
(iii) purchase such assets (including assets associated
with any trust business) of such insured bank or banks that
is or are in default or in danger of default as the
Corporation may, in its discretion, determine to be
appropriate; and
(iv) perform any other temporary function which the
Corporation may, in its discretion, prescribe in accordance
with this chapter.
(C) Articles of association
The articles of association and organization certificate of
a bridge bank as approved by the Corporation shall be executed
by 3 representatives designated by the Corporation.
(D) Interim directors
A bridge bank shall have an interim board of directors
consisting of not fewer than 5 nor more than 10 members
appointed by the Corporation.
(E) National bank
A bridge bank shall be organized as a national bank.
(2) Chartering
(A) Conditions
A national bank may be chartered by the Comptroller of the
Currency as a bridge bank only if the Board of Directors
determines that--
(i) the amount which is reasonably necessary to operate
such bridge bank will not exceed the amount which is
reasonably necessary to save the cost of liquidating,
including paying the insured accounts of, 1 or more insured
banks in default or in danger of default with respect to
which the bridge bank is chartered;
(ii) the continued operation of such insured bank or
banks in default or in danger of default with respect to
which the bridge bank is chartered is essential to provide
adequate banking services in the community where each such
bank in default or in danger of default is located; or
(iii) the continued operation of such insured bank or
banks in default or in danger of default with respect to
which the bridge bank is chartered is in the best interest
of the depositors of such bank or banks in default or in
danger of default or the public.
(B) Insured national bank
A bridge bank shall be an insured bank from the time it is
chartered as a national bank.
(C) Bridge bank treated as being in default for certain purposes
A bridge bank shall be treated as an insured bank in default
at such times and for such purposes as the Corporation may, in
its discretion, determine.
(D) Management
A bridge bank, upon the granting of its charter, shall be
under the management of a board of directors consisting of not
fewer than 5 nor more than 10 members appointed by the
Corporation.
(E) Bylaws
The board of directors of a bridge bank shall adopt such
bylaws as may be approved by the Corporation.
(3) Transfer of assets and liabilities
(A) In general
(i) Transfer upon grant of charter
Upon the granting of a charter to a bridge bank pursuant
to this subsection, the Corporation, as receiver, or any
other receiver appointed with respect to any insured bank in
default with respect to which the bridge bank is chartered
may transfer any assets and liabilities of such bank in
default to the bridge bank in accordance with paragraph (1).
(ii) Subsequent transfers
At any time after a charter is granted to a bridge bank,
the Corporation, as receiver, or any other receiver
appointed with respect to an insured bank in default may
transfer any assets and liabilities of such insured bank in
default as the Corporation may, in its discretion, determine
to be appropriate in accordance with paragraph (1).
(iii) Treatment of trust business
For purposes of this paragraph, the trust business,
including fiduciary appointments, of any insured bank in
default is included among its assets and liabilities.
(iv) Effective without approval
The transfer of any assets or liabilities, including
those associated with any trust business, of an insured bank
in default transferred to a bridge bank shall be effective
without any further approval under Federal or State law,
assignment, or consent with respect thereto.
(B) Intent of Congress regarding continuing operations
It is the intent of the Congress that, in order to prevent
unnecessary hardship or losses to the customers of any insured
bank in default with respect to which a bridge bank is
chartered, especially creditworthy farmers, small businesses,
and households, the Corporation should--
(i) continue to honor commitments made by the bank in
default to creditworthy customers, and
(ii) not interrupt or terminate adequately secured loans
which are transferred under subparagraph (A) and are being
repaid by the debtor in accordance with the terms of the
loan instrument.
(4) Powers of bridge banks
Each bridge bank chartered under this subsection shall have all
corporate powers of, and be subject to the same provisions of law
as, a national bank, except that--
(A) the Corporation may--
(i) remove the interim directors and directors of a
bridge bank;
(ii) fix the compensation of members of the interim
board of directors and the board of directors and senior
management, as determined by the Corporation in its
discretion, of a bridge bank; and
(iii) waive any requirement established under section
71, 72, 73, 74, or 75 of this title (relating to directors
of national banks) or section 71a of this title which would
otherwise be applicable with respect to directors of a
bridge bank by operation of paragraph (2)(B);
(B) the Corporation may indemnify the representatives for
purposes of paragraph (1)(B) and the interim directors,
directors, officers, employees, and agents of a bridge bank on
such terms as the Corporation determines to be appropriate;
(C) no requirement under section 51 \6\ of this title or any
other provision of law relating to the capital of a national
bank shall apply with respect to a bridge bank;
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(D) the Comptroller of the Currency may establish a
limitation on the extent to which any person may become indebted
to a bridge bank without regard to the amount of the bridge
bank's capital or surplus;
(E)(i) the board of directors of a bridge bank shall elect a
chairperson who may also serve in the position of chief
executive officer, except that such person shall not serve
either as chairperson or as chief executive officer without the
prior approval of the Corporation; and
(ii) the board of directors of a bridge bank may appoint a
chief executive officer who is not also the chairperson, except
that such person shall not serve as chief executive officer
without the prior approval of the Corporation;
(F) a bridge bank shall not be required to purchase stock of
any Federal Reserve bank;
(G) the Comptroller of the Currency shall waive any
requirement for a fidelity bond with respect to a bridge bank at
the request of the Corporation;
(H) any judicial action to which a bridge bank becomes a
party by virtue of its acquisition of any assets or assumption
of any liabilities of a bank in default shall be stayed from
further proceedings for a period of up to 45 days at the request
of the bridge bank;
(I) no agreement which tends to diminish or defeat the
right, title or interest of a bridge bank in any asset of an
insured bank in default acquired by it shall be valid against
the bridge bank unless such agreement--
(i) is in writing,
(ii) was executed by such insured bank in default and
the person or persons claiming an adverse interest
thereunder, including the obligor, contemporaneously with
the acquisition of the asset by such insured bank in
default,
(iii) was approved by the board of directors of such
insured bank in default or its loan committee, which
approval shall be reflected in the minutes of said board or
committee, and
(iv) has been, continuously from the time of its
execution, an official record of such insured bank in
default;
(J) notwithstanding section 1823(e)(2) of this title, any
agreement relating to an extension of credit between a Federal
home loan bank or Federal Reserve bank and any insured
depository institution which was executed before the extension
of credit by such bank to such depository institution shall be
treated as having been executed contemporaneously with such
extension of credit for purposes of subparagraph (I); and
(K) except with the prior approval of the Corporation, a
bridge bank may not, in any transaction or series of
transactions, issue capital stock or be a party to any merger,
consolidation, disposition of assets or liabilities, sale or
exchange of capital stock, or similar transaction, or change its
charter.
(5) Capital
(A) No capital required
The Corporation shall not be required to--
(i) issue any capital stock on behalf of a bridge bank
chartered under this subsection; or
(ii) purchase any capital stock of a bridge bank, except
that notwithstanding any other provision of Federal or State
law, the Corporation may purchase and retain capital stock
of a bridge bank in such amounts and on such terms as the
Corporation, in its discretion, determines to be
appropriate.
(B) Operating funds in lieu of capital
Upon the organization of a bridge bank, and thereafter, as
the Board of Directors may, in its discretion, determine to be
necessary or advisable, the Corporation may make available to
the bridge bank, upon such terms and conditions and in such form
and amounts as the Corporation may in its discretion determine,
funds for the operation of the bridge bank in lieu of capital.
(C) Authority to issue capital stock
Whenever the Board of Directors determines it is advisable
to do so, the Corporation shall cause capital stock of a bridge
bank to be issued and offered for sale in such amounts and on
such terms and conditions as the Corporation may, in its
discretion, determine.
(6) No Federal status
(A) Agency status
A bridge bank is not an agency, establishment, or
instrumentality of the United States.
(B) Employee status
Representatives for purposes of paragraph (1)(B), interim
directors, directors, officers, employees, or agents of a bridge
bank are not, solely by virtue of service in any such capacity,
officers or employees of the United States. Any employee of the
Corporation or of any Federal instrumentality who serves at the
request of the Corporation as a representative for purposes of
paragraph (1)(B), interim director, director, officer, employee,
or agent of a bridge bank shall not--
(i) solely by virtue of service in any such capacity
lose any existing status as an officer or employee of the
United States for purposes of title 5 or any other provision
of law, or
(ii) receive any salary or benefits for service in any
such capacity with respect to a bridge bank in addition to
such salary or benefits as are obtained through employment
with the Corporation or such Federal instrumentality.
(7) Assistance authorized
The Corporation may, in its discretion, provide assistance under
section 1823(c) of this title to facilitate any transaction
described in clause (i), (ii), or (iii) of paragraph (10)(A) with
respect to any bridge bank in the same manner and to the same extent
as such assistance may be provided under such section with respect
to an insured bank in default, or to facilitate a bridge bank's
acquisition of any assets or the assumption of any liabilities of an
insured bank in default.
(8) Acquisition
(A) In general
The responsible agency shall notify the Attorney General of
any transaction involving the merger or sale of a bridge bank
requiring approval under section 1828(c) of this title and if a
report on competitive factors is requested within 10 days, such
transaction may not be consummated before the 5th calendar day
after the date of approval by the responsible agency with
respect thereto. If the responsible agency has found that it
must act immediately to prevent the probable failure of 1 of the
banks involved, the preceding sentence does not apply and the
transaction may be consummated immediately upon approval by the
agency.
(B) By out-of-State holding company
Any depository institution, including an out-of-State
depository institution, or any out-of-State depository
institution holding company may acquire and retain the capital
stock or assets of, or otherwise acquire and retain a bridge
bank if the bridge bank at any time had assets aggregating
$500,000,000 or more, as determined by the Corporation on the
basis of the bridge bank's reports of condition or on the basis
of the last available reports of condition of any insured bank
in default, which institution has been acquired, or whose assets
have been acquired, by the bridge bank. The acquiring entity may
acquire the bridge bank only in the same manner and to the same
extent as such entity may acquire an insured bank in default
under section 1823(f)(2) of this title.
(9) Duration of bridge bank
Subject to paragraphs (11) and (12), the status of a bridge bank
as such shall terminate at the end of the 2-year period following
the date it was granted a charter. The Board of Directors may, in
its discretion, extend the status of the bridge bank as such for 3
additional 1-year periods.
(10) Termination of bridge bank status
The status of any bridge bank as such shall terminate upon the
earliest of--
(A) the merger or consolidation of the bridge bank with a
depository institution that is not a bridge bank;
(B) at the election of the Corporation, the sale of a
majority of the capital stock of the bridge bank to an entity
other than the Corporation and other than another bridge bank;
(C) the sale of 80 percent, or more, of the capital stock of
the bridge bank to an entity other than the Corporation and
other than another bridge bank;
(D) at the election of the Corporation, either the
assumption of all or substantially all of the deposits and other
liabilities of the bridge bank by a depository institution
holding company or a depository institution that is not a bridge
bank, or the acquisition of all or substantially all of the
assets of the bridge bank by a depository institution holding
company, a depository institution that is not a bridge bank, or
other entity as permitted under applicable law; and
(E) the expiration of the period provided in paragraph (9),
or the earlier dissolution of the bridge bank as provided in
paragraph (12).
(11) Effect of termination events
(A) Merger or consolidation
A bridge bank that participates in a merger or consolidation
as provided in paragraph (10)(A) shall be for all purposes a
national bank with all the rights, powers, and privileges
thereof, and such merger or consolidation shall be conducted in
accordance with, and shall have the effect provided in, the
provisions of applicable law.
(B) Charter conversion
Following the sale of a majority of the capital stock of the
bridge bank as provided in paragraph (10)(B), the Corporation
may amend the charter of the bridge bank to reflect the
termination of the status of the bridge bank as such, whereupon
the bank shall remain a national bank, with all of the rights,
powers, and privileges thereof, subject to all laws and
regulations applicable thereto.
(C) Sale of stock
Following the sale of 80 percent or more of the capital
stock of a bridge bank as provided in paragraph (10)(C), the
bank shall remain a national bank, with all of the rights,
powers, and privileges thereof, subject to all laws and
regulations applicable thereto.
(D) Assumption of liabilities and sale of assets
Following the assumption of all or substantially all of the
liabilities of the bridge bank, or the sale of all or
substantially all of the assets of the bridge bank, as provided
in paragraph (10)(D), at the election of the Corporation the
bridge bank may retain its status as such for the period
provided in paragraph (9).
(E) Effect on holding companies
A depository institution holding company acquiring a bridge
bank under section 1823(f) of this title, paragraph (8)(B) (or
any predecessor provision), or both provisions, shall not be
impaired or adversely affected by the termination of the status
of a bridge bank as a result of subparagraph (A), (B), (C), or
(D) of paragraph (10), and shall be entitled to the rights and
privileges provided in section 1823(f) of this title.
(F) Amendments to charter
Following the consummation of a transaction described in
subparagraph (A), (B), (C), or (D) of paragraph (10), the
charter of the resulting institution shall be amended to reflect
the termination of bridge bank status, if appropriate.
(12) Dissolution of bridge bank
(A) In general
Notwithstanding any other provision of State or Federal law,
if the bridge bank's status as such has not previously been
terminated by the occurrence of an event specified in
subparagraph (A), (B), (C), or (D) of paragraph (10)--
(i) the Board of Directors may, in its discretion,
dissolve a bridge bank in accordance with this paragraph at
any time; and
(ii) the Board of Directors shall promptly commence
dissolution proceedings in accordance with this paragraph
upon the expiration of the 2-year period following the date
the bridge bank was chartered, or any extension thereof, as
provided in paragraph (9).
(B) Procedures
The Comptroller of the Currency shall appoint the
Corporation receiver for a bridge bank upon certification by the
Board of Directors to the Comptroller of the Currency of its
determination to dissolve the bridge bank. The Corporation as
such receiver shall wind up the affairs of the bridge bank in
conformity with the provisions of law relating to the
liquidation of closed national banks. With respect to any such
bridge bank, the Corporation as such receiver shall have all the
rights, powers, and privileges and shall perform the duties
related to the exercise of such rights, powers, or privileges
granted by law to a receiver of any insured depository
institution and notwithstanding any other provision of law in
the exercise of such rights, powers, and privileges the
Corporation shall not be subject to the direction or supervision
of any State agency or other Federal agency.
(13) Multiple bridge banks
Subject to paragraph (1)(B)(i), the Corporation may, in the
Corporation's discretion, organize 2 or more bridge banks under this
subsection to assume any deposits of, assume any other liabilities
of, and purchase any assets of a single bank in default.
(o) Supervisory records
In addition to the requirements of section 1817(a)(2) of this title
to provide to the Corporation copies of reports of examination and
reports of condition, whenever the Corporation has been appointed as
receiver for an insured depository institution, the appropriate Federal
banking agency shall make available all supervisory records to the
receiver which may be used by the receiver in any manner the receiver
determines to be appropriate.
(p) Certain sales of assets prohibited
(1) Persons who engaged in improper conduct with, or caused
losses to, depository institutions
The Corporation shall prescribe regulations which, at a minimum,
shall prohibit the sale of assets of a failed institution by the
Corporation to--
(A) any person who--
(i) has defaulted, or was a member of a partnership or
an officer or director of a corporation that has defaulted,
on 1 or more obligations the aggregate amount of which
exceed $1,000,000, to such failed institution;
(ii) has been found to have engaged in fraudulent
activity in connection with any obligation referred to in
clause (i); and
(iii) proposes to purchase any such asset in whole or in
part through the use of the proceeds of a loan or advance of
credit from the Corporation or from any institution for
which the Corporation has been appointed as conservator or
receiver;
(B) any person who participated, as an officer or director
of such failed institution or of any affiliate of such
institution, in a material way in transactions that resulted in
a substantial loss to such failed institution;
(C) any person who has been removed from, or prohibited from
participating in the affairs of, such failed institution
pursuant to any final enforcement action by an appropriate
Federal banking agency; or
(D) any person who has demonstrated a pattern or practice of
defalcation regarding obligations to such failed institution.
(2) Convicted debtors
Except as provided in paragraph (3), any person who--
(A) has been convicted of an offense under section 215, 656,
657, 1005, 1006, 1007, 1008,\7\ 1014, 1032, 1341, 1343, or 1344
of title 18 or of conspiring to commit such an offense,
affecting any insured depository institution for which any
conservator or receiver has been appointed; and
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(B) is in default on any loan or other extension of credit
from such insured depository institution which, if not paid,
will cause substantial loss to the institution, any deposit
insurance fund, the Corporation, the FSLIC Resolution Fund, or
the Resolution Trust Corporation,
may not purchase any asset of such institution from the conservator
or receiver.
(3) Settlement of claims
Paragraphs (1) and (2) shall not apply to the sale or transfer
by the Corporation of any asset of any insured depository
institution to any person if the sale or transfer of the asset
resolves or settles, or is part of the resolution or settlement,
of--
(A) 1 or more claims that have been, or could have been,
asserted by the Corporation against the person; or
(B) obligations owed by the person to any insured depository
institution, the FSLIC Resolution Fund, the Resolution Trust
Corporation, or the Corporation.
(4) ``Default'' defined
For purposes of this subsection, the term ``default'' means a
failure to comply with the terms of a loan or other obligation to
such an extent that the property securing the obligation is
foreclosed upon.
(q) Expedited procedures for certain claims
(1) Time for filing notice of appeal
The notice of appeal of any order, whether interlocutory or
final, entered in any case brought by the Corporation against an
insured depository institution's director, officer, employee, agent,
attorney, accountant, or appraiser or any other person employed by
or providing services to an insured depository institution shall be
filed not later than 30 days after the date of entry of the order.
The hearing of the appeal shall be held not later than 120 days
after the date of the notice of appeal. The appeal shall be decided
not later than 180 days after the date of the notice of appeal.
(2) Scheduling
Consistent with section 1657 of title 18,\8\ a court of the
United States shall expedite the consideration of any case brought
by the Corporation against an insured depository institution's
director, officer, employee, agent, attorney, accountant, or
appraiser or any other person employed by or providing services to
an insured depository institution. As far as practicable the court
shall give such case priority on its docket.
---------------------------------------------------------------------------
\8\ So in original. Probably should be ``title 28,''.
---------------------------------------------------------------------------
(3) Judicial discretion
The court may modify the schedule and limitations stated in
paragraphs (1) and (2) in a particular case, based on a specific
finding that the ends of justice that would be served by making such
a modification would outweigh the best interest of the public in
having the case resolved expeditiously.
(r) Foreign investigations
The Corporation and the Resolution Trust Corporation, as conservator
or receiver of any insured depository institution and for purposes of
carrying out any power, authority, or duty with respect to an insured
depository institution--
(1) may request the assistance of any foreign banking authority
and provide assistance to any foreign banking authority in
accordance with section 1818(v) of this title; and
(2) may each maintain an office to coordinate foreign
investigations or investigations on behalf of foreign banking
authorities.
(s) Prohibition on entering secrecy agreements and protective orders
The Corporation may not enter into any agreement or approve any
protective order which prohibits the Corporation from disclosing the
terms of any settlement of an administrative or other action for damages
or restitution brought by the Corporation in its capacity as conservator
or receiver for an insured depository institution.
(t) Agencies may share information without waiving privilege
(1) In general
A covered agency shall not be deemed to have waived any
privilege applicable to any information by transferring that
information to or permitting that information to be used by--
(A) any other covered agency, in any capacity; or
(B) any other agency of the Federal Government (as defined
in section 6 of title 18).
(2) Definitions
For purposes of this subsection:
(A) Covered agency
The term ``covered agency'' means any of the following:
(i) Any appropriate Federal banking agency.
(ii) The Resolution Trust Corporation.
(iii) The Farm Credit Administration.
(iv) The Farm Credit System Insurance Corporation.
(v) The National Credit Union Administration.
(vi) The General Accounting Office.
(B) Privilege
The term ``privilege'' includes any work-product, attorney-
client, or other privilege recognized under Federal or State
law.
(3) Rule of construction
Paragraph (1) shall not be construed as implying that any person
waives any privilege applicable to any information because paragraph
(1) does not apply to the transfer or use of that information.
(u) Purchase rights of tenants
(1) Notice
Except as provided in paragraph (3), the Corporation may make
available for sale a 1- to 4-family residence (including a
manufactured home) to which the Corporation acquires title only
after the Corporation has provided the household residing in the
property notice (in writing and mailed to the property) of the
availability of such property and the preference afforded such
household under paragraph (2).
(2) Preference
In selling such a property, the Corporation shall give
preference to any bona fide offer made by the household residing in
the property, if--
(A) such offer is substantially similar in amount to other
offers made within such period (or expected by the Corporation
to be made within such period);
(B) such offer is made during the period beginning upon the
Corporation making such property available and of a reasonable
duration, as determined by the Corporation based on the normal
period for sale of such properties; and
(C) the household making the offer complies with any other
requirements applicable to purchasers of such property,
including any downpayment and credit requirements.
(3) Exceptions
Paragraphs (1) and (2) shall not apply to--
(A) any residence transferred in connection with the
transfer of substantially all of the assets of an insured
depository institution for which the Corporation has been
appointed conservator or receiver;
(B) any eligible single family property (as such term is
defined in section 1831q(p) of this title; or
(C) any residence for which the household occupying the
residence was the mortgagor under a mortgage on such residence
and to which the Corporation acquired title pursuant to default
on such mortgage.
(v) Preference for sales for homeless families
Subject to subsection (u) of this section, in selling any real
property (other than eligible residential property and eligible
condominium property, as such terms are defined in section 1831q(p) of
this title) to which the Corporation acquires title, the Corporation
shall give preference among offers to purchase the property that will
result in the same net present value proceeds, to any offer that would
provide for the property to be used, during the remaining useful life of
the property, to provide housing or shelter for homeless persons (as
such term is defined in section 11302 of title 42) or homeless families.
(w) Preferences for sales of certain commercial real properties
(1) Authority
In selling any eligible commercial real properties of the
Corporation, the Corporation shall give preference, among offers to
purchase the property that will result in the same net present value
proceeds, to any offer--
(A) that is made by a public agency or nonprofit
organization; and
(B) under which the purchaser agrees that the property shall
be used, during the remaining useful life of the property, for
offices and administrative purposes of the purchaser to carry
out a program to acquire residential properties to provide (i)
homeownership and rental housing opportunities for very-low-,
low-, and moderate-income families, or (ii) housing or shelter
for homeless persons (as such term is defined in section 11302
of title 42) or homeless families.
(2) Definitions
For purposes of this subsection, the following definitions shall
apply:
(A) Eligible commercial real property
The term ``eligible commercial real property'' means any
property (i) to which the Corporation acquires title, and (ii)
that the Corporation, in the discretion of the Corporation,
determines is suitable for use for the location of offices or
other administrative functions involved with carrying out a
program referred to in paragraph (1)(B).
(B) Nonprofit organization and public agency
The terms ``nonprofit organization'' and ``public agency''
have the same meanings as in section 1831q(p) of this title.
(Sept. 21, 1950, ch. 967, Sec. 2[11], 64 Stat. 884; Pub. L. 89-695,
title III, Sec. 301(c), (d), Oct. 16, 1966, 80 Stat. 1055; Pub. L. 91-
151, title I, Sec. 7(a)(3), (4), Dec. 23, 1969, 83 Stat. 375; Pub. L.
93-495, title I, Secs. 101(a)(3), 102(a)(3), (4), Oct. 28, 1974, 88
Stat. 1500, 1502; Pub. L. 95-369, Sec. 6(c)(17)-(22), Sept. 17, 1978, 92
Stat. 619; Pub. L. 95-630, title XIV, Sec. 1401(a), Nov. 10, 1978, 92
Stat. 3712; Pub. L. 96-153, title III, Sec. 323(a), Dec. 21, 1979, 93
Stat. 1120; Pub. L. 96-221, title III, Sec. 308(a)(1)(C), (D), Mar. 31,
1980, 94 Stat. 147; Pub. L. 97-110, title I, Sec. 103(c), Dec. 26, 1981,
95 Stat. 1514; Pub. L. 97-320, title I, Sec. 113(j), (k), Oct. 15, 1982,
96 Stat. 1474; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095;
Pub. L. 100-86, title V, Secs. 503(a), 507, Aug. 10, 1987, 101 Stat.
629, 634; Pub. L. 101-73, title II, Secs. 201(a), 211-214, title IX,
Sec. 909, Aug. 9, 1989, 103 Stat. 187, 218-246, 477; Pub. L. 101-647,
title XXV, Secs. 2521(a)(1), 2526(a), 2527(a), 2528(a), 2532(b),
2534(a), Nov. 29, 1990, 104 Stat. 4863, 4875, 4877, 4880, 4882; Pub. L.
102-233, title I, Sec. 102, title II, Sec. 202(a), (b), title III,
Sec. 302(a), Dec. 12, 1991, 105 Stat. 1761, 1766, 1767; Pub. L. 102-242,
title I, Secs. 123(a), 133(a), (e), 141(b), (d), 161(a), (e), title II,
Sec. 241(c)(1), title III, Sec. 311(a)(1), (b)(1), (2), (5)(B), (C),
title IV, Secs. 416, 426, 446, Dec. 19, 1991, 105 Stat. 2252, 2270,
2272, 2277, 2285, 2286, 2331, 2363, 2364, 2366, 2376, 2378, 2382; Pub.
L. 102-550, title XV, Secs. 1501(a), 1544, title XVI, Secs. 1603(e)(1),
1604(c)(2), 1606(c), 1611(b), Oct. 28, 1992, 106 Stat. 4044, 4069, 4081,
4083, 4088, 4090; Pub. L. 103-66, title III, Sec. 3001(a), (b), Aug. 10,
1993, 107 Stat. 336; Pub. L. 103-204, Secs. 3(d), 4(b), 8(a)-(f), (i),
11, 15(b), 16(b), 17(b), 20, 27(b), 38(b), Dec. 17, 1993, 107 Stat.
2379, 2380, 2384-2389, 2399-2401, 2404, 2410, 2416; Pub. L. 103-325,
title III, Sec. 325, title IV, Sec. 411(c)(2)(A), title VI,
Sec. 602(a)(21)-(33), Sept. 23, 1994, 108 Stat. 2228, 2253, 2289; Pub.
L. 103-328, title II, Sec. 201(a), Sept. 29, 1994, 108 Stat. 2368; Pub.
L. 103-394, title V, Sec. 501(c)(2), Oct. 22, 1994, 108 Stat. 4143; Pub.
L. 104-208, div. A, title II, Secs. 2602, 2704(d)(1)-(3), (6)(C),
(14)(H), (I), 2705, Sept. 30, 1996, 110 Stat. 3009-469, 3009-487, 3009-
488, 3009-492, 3009-495; Pub. L. 104-316, title I, Sec. 106(i), Oct. 19,
1996, 110 Stat. 3831; Pub. L. 106-102, title I, Sec. 117, title VII,
Sec. 736(a), (b)(2), Nov. 12, 1999, 113 Stat. 1372, 1479; Pub. L. 106-
400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675; Pub. L. 106-569, title XII,
Sec. 1222, Dec. 27, 2000, 114 Stat. 3036.)
References in Text
The date of the termination of the Resolution Trust Corporation,
referred to in subsec. (a)(6)(F), is provided for in section 1441a(m) of
this title.
Section 1441a(b)(4) of this title, referred to in subsec.
(d)(2)(I)(ii), was in the original ``section 21A(b)(4)'', which has been
translated as reading ``section 21A(b)(4) of the Federal Home Loan Bank
Act'', to reflect the probable intent of Congress.
Section 1823(e)(2) of this title, referred to in subsec. (d)(9)(B),
was redesignated section 1823(e)(1)(B) of this title by Pub. L. 103-325,
title III, Sec. 317(1), Sept. 23, 1994, 108 Stat. 2223.
The Federal Rules of Civil Procedure, referred to in subsec.
(d)(18), (19), are set out in the Appendix to Title 28, Judiciary and
Judicial Procedure.
Section 51 of this title, referred to in subsecs. (m)(15)(A) and
(n)(4)(C), was repealed by Pub. L. 106-569, title XII, Sec. 1233(c),
Dec. 27, 2000, 114 Stat. 3037.
Section 1008 of title 18, referred to in subsec. (p)(2)(A), was
repealed by Pub. L. 101-73, title IX, Sec. 961(g)(1), Aug. 9, 1989, 103
Stat. 500.
Prior Provisions
Section is derived from subsec. (l) of former section 264 of this
title. See Codification note set out under section 1811 of this title.
Amendments
2000--Subsec. (d)(10)(C). Pub. L. 106-569 added subpar. (C).
Subsecs. (v), (w)(1)(B)(ii). Pub. L. 106-400 made technical
amendment to references in original act which appear in text as
references to section 11302 of title 42.
1999--Subsec. (a)(4)(B). Pub. L. 106-102, Sec. 117, substituted ``to
benefit any shareholder or affiliate (other than an insured depository
institution that receives assistance in accordance with the provisions
of this chapter) of'' for ``to benefit any shareholder of'' in
introductory provisions.
Subsec. (a)(5). Pub. L. 106-102, Sec. 736(b)(2), amended Pub. L.
104-208, Sec. 2704(d)(4), (6)(C). See 1996 Amendment notes below.
Subsec. (a)(6). Pub. L. 106-102, Sec. 736(b)(2)(B), amended Pub. L.
104-208, Sec. 2704(d)(6)(C)(i). See 1996 Amendment note below.
Subsec. (a)(6)(L). Pub. L. 106-102, Sec. 736(a), struck out heading
and text of subpar. (L). Text read as follows:
``(i) Establishment.--If, on January 1, 1999, the reserve ratio of
the Savings Association Insurance Fund exceeds the designated reserve
ratio, there is established a Special Reserve of the Savings Association
Insurance Fund, which shall be administered by the Corporation and shall
be invested in accordance with section 1823(a) of this title.
``(ii) Amounts in special reserve.--If, on January 1, 1999, the
reserve ratio of the Savings Association Insurance Fund exceeds the
designated reserve ratio, the amount by which the reserve ratio exceeds
the designated reserve ratio shall be placed in the Special Reserve of
the Savings Association Insurance Fund established by clause (i).
``(iii) Limitation.--The Corporation shall not provide any
assessment credit, refund, or other payment from any amount in the
Special Reserve of the Savings Association Insurance Fund.
``(iv) Emergency use of special reserve.--Notwithstanding clause
(iii), the Corporation may, in its sole discretion, transfer amounts
from the Special Reserve of the Savings Association Insurance Fund to
the Savings Association Insurance Fund for the purposes set forth in
paragraph (4), only if--
``(I) the reserve ratio of the Savings Association Insurance
Fund is less than 50 percent of the designated reserve ratio; and
``(II) the Corporation expects the reserve ratio of the Savings
Association Insurance Fund to remain at less than 50 percent of the
designated reserve ratio for each of the next 4 calendar quarters.
``(v) Exclusion of special reserve in calculating reserve ratio.--
Notwithstanding any other provision of law, any amounts in the Special
Reserve of the Savings Association Insurance Fund shall be excluded in
calculating the reserve ratio of the Savings Association Insurance
Fund.''
Subsec. (a)(7), (8). Pub. L. 106-102, Sec. 736(b)(2)(B), (C),
amended Pub. L. 104-208, Sec. 2704(d)(6)(C). See 1996 Amendment notes
below.
1996--Subsec. (a)(4). Pub. L. 104-208, Sec. 2704(d)(1)(C), which
directed substitution of ``Establishment of the Deposit Insurance Fund''
for ``General provisions relating to funds'' in heading, was not
executed. See Effective Date of 1996 Amendment note below.
Subsec. (a)(4)(A) to (C). Pub. L. 104-208, Sec. 2704(d)(1)(A), (B),
(2), which directed striking out subpar. (A), redesignating subpar. (B)
as (C) and substituting ``Deposit Insurance Fund'' for ``Bank Insurance
Fund and the Savings Association Insurance Fund'' in introductory
provisions, and adding new subpars. (A) and (B), was not executed. See
Effective Date of 1996 Amendment note below.
Subsec. (a)(4)(D). Pub. L. 104-208, Sec. 2704(d)(3), which directed
adding subpar. (D), was not executed. See Effective Date of 1996
Amendment note below.
Subsec. (a)(5). Pub. L. 104-208, Sec. 2704(d)(6)(C), as amended by
Pub. L. 106-102, Sec. 736(b)(2)(B), (C), which directed striking out
par. (5) and redesignating par. (8) as (5), was not executed. See
Effective Date of 1996 Amendment note below.
Pub. L. 104-208, Sec. 2704(d)(4), which directed general amendment
of par. (5), was repealed by Pub. L. 106-102, Sec. 736(b)(2)(A).
Subsec. (a)(6). Pub. L. 104-208, Sec. 2704(d)(6)(C)(i), as amended
by Pub. L. 106-102, Sec. 736(b)(2)(B), which directed striking out par.
(6), was not executed. See Effective Date of 1996 Amendment note below.
Subsec. (a)(6)(L). Pub. L. 104-208, Sec. 2705, added subpar. (L).
Subsec. (a)(7), (8). Pub. L. 104-208, Sec. 2704(d)(6)(C), as amended
by Pub. L. 106-102, Sec. 736(b)(2)(B), (C), which directed striking out
par. (7) and redesignating par. (8) as (5), was not executed. See
Effective Date of 1996 Amendment note below.
Subsec. (d)(20). Pub. L. 104-208, Sec. 2602, added par. (20).
Subsec. (f)(1). Pub. L. 104-208, Sec. 2704(d)(14)(H), which directed
substitution of a period for ``, except that--'' and subpars. (A) and
(B), was not executed. See Effective Date of 1996 Amendment note below.
Subsec. (i)(3). Pub. L. 104-208, Sec. 2704(d)(14)(I), which directed
striking out subpar. (B) and redesignating subpar. (C) as (B) and
substituting ``subparagraph (A)'' for ``subparagraphs (A) and (B)'', was
not executed. See Effective Date of 1996 Amendment note below.
Subsec. (t)(2)(A)(vi). Pub. L. 104-316 added cl. (vi).
1994--Subsec. (a)(4). Pub. L. 103-325, Sec. 602(a)(21), substituted
``provisions'' for ``Provisions'' in heading.
Subsec. (c)(5)(M). Pub. L. 103-325, Sec. 411(c)(2)(A), substituted
``section 5322 or 5324 of title 31'' for ``section 5322 of title 31''.
Subsec. (d)(2)(B)(iii). Pub. L. 103-325, Sec. 602(a)(22),
substituted ``are consistent'' for ``is consistent''.
Subsec. (d)(8)(B)(ii). Pub. L. 103-325, Sec. 602(a)(23), inserted
``provide'' before ``a statement''.
Subsec. (d)(14)(B). Pub. L. 103-325, Sec. 602(a)(24), substituted
``statute of limitations'' for ``statute of limitation''.
Subsec. (d)(14)(C). Pub. L. 103-328 added subpar. (C).
Subsec. (d)(16)(B)(iv). Pub. L. 103-325, Sec. 602(a)(25),
substituted ``disposition'' for ``dispositions''.
Subsec. (e)(8)(D). Pub. L. 103-394 substituted ``section 741'' for
``section 741(7)'' in cl. (ii)(I), ``section 761'' for ``section
761(4)'' in cl. (iii), ``section 101'' for ``section 101(24)'' in cl.
(iv), ``section 101'' for ``section 101(41)'' in cl. (v)(I), and
``section 101'' for ``section 101(50)'' in cl. (viii).
Subsec. (e)(8)(D)(v)(I). Pub. L. 103-325, Sec. 602(a)(26),
substituted ``title 15),'' for ``title 15,''.
Subsec. (e)(12)(B). Pub. L. 103-325, Sec. 602(a)(27), substituted
``director's or officer's'' for ``directors or officers''.
Subsec. (e)(14), (15). Pub. L. 103-325, Sec. 325, added pars. (14)
and (15).
Subsec. (f)(3)(A). Pub. L. 103-325, Sec. 602(a)(28), substituted
``with'' for ``to'' in heading.
Subsec. (i)(3)(A). Pub. L. 103-325, Sec. 602(a)(29), substituted
``other claimant or category of claimants'' for ``other claimant or
category or claimants'' in second sentence.
Subsec. (n)(4)(E)(i). Pub. L. 103-325, Sec. 602(a)(30), inserted
``and'' at end.
Subsec. (n)(12)(A). Pub. L. 103-325, Sec. 602(a)(31), substituted
``subparagraph'' for ``subparagraphs''.
Subsec. (q)(1). Pub. L. 103-325, Sec. 602(a)(32), substituted
``held'' for ``decided'' in second sentence.
Subsec. (u)(3)(B). Pub. L. 103-325, Sec. 602(a)(33), substituted
``section 1831q(p) of this title'' for ``subsection (c)(9)''.
1993--Subsec. (a)(1)(C). Pub. L. 103-204, Sec. 38(b), substituted
``paragraph (1) or (2) of section 1817(i) of this title or any funds
described in section 1817(i)(3) of this title'' for ``section 1817(i)(1)
of this title''.
Subsec. (a)(4). Pub. L. 103-204, Sec. 11, substituted ``Provisions''
for ``provision'' in heading, and amended text generally. Prior to
amendment, text read as follows: ``The Bank Insurance Fund established
under paragraph (5) and the Savings Association Insurance Fund
established under paragraph (6) shall each be--
``(A) maintained and administered by the Corporation;
``(B) maintained separately and not commingled; and
``(C) used by the Corporation to carry out its insurance
purposes in the manner provided in this subsection.''
Subsec. (a)(6)(D) to (F). Pub. L. 103-204, Sec. 8(a)-(c), amended
subpars. (D) to (F) generally. Prior to amendment, subpars. (D) to (F)
related to the availability of funds for administrative expenses,
Treasury payments to the Fund, and Treasury payments to maintain the net
worth of the Fund, respectively.
Subsec. (a)(6)(G). Pub. L. 103-204, Sec. 8(i), substituted
``subparagraph (D)'' for ``subparagraphs (E) and (F)'' in heading and
text.
Subsec. (a)(6)(H). Pub. L. 103-204, Sec. 8(d), amended subpar. (H)
generally. Prior to amendment, subpar. (H) read as follows:
``Discretionary rtc payments.--If amounts available to the Savings
Association Insurance Fund for purposes other than the payment of
administrative expenses are insufficient for the Savings Association
Insurance Fund to carry out the purposes of this chapter, the
Corporation may request the Resolution Trust Corporation to provide, and
the Thrift Depositor Protection Oversight Board of the Resolution Trust
Corporation (in the discretion of the Thrift Depositor Protection
Oversight Board) may pay, such amount as may be needed for such
purposes.''
Subsec. (a)(6)(J). Pub. L. 103-204, Sec. 8(e), substituted ``Subject
to subparagraph (E), there are'' for ``There are'' and ``of subparagraph
(D) for fiscal years 1994 through 1998, except that the aggregate amount
appropriated pursuant to this authorization may not exceed
$8,000,000,000.'' for ``of this paragraph, except that--
``(i) the annual amount appropriated under subparagraph (F)
shall not exceed $2,000,000,000 in either fiscal year 1992 or fiscal
year 1993; and
``(ii) the cumulative amount appropriated under subparagraph (F)
for fiscal years 1992 through 2000 shall not exceed
$16,000,000,000.''
Subsec. (a)(6)(K). Pub. L. 103-204, Sec. 8(f), added subpar. (K).
Subsec. (c)(6)(B)(i). Pub. L. 103-204, Sec. 27(b)(1), substituted
``such date as is determined by the Chairperson of the Thrift Depositor
Protection Oversight Board under section 1441a(b)(3)(A)(ii) of this
title'' for ``October 1, 1993''.
Subsec. (c)(6)(B)(ii). Pub. L. 103-204, Sec. 27(b)(2), (3),
substituted ``on or after the date determined by the Chairperson of the
Thrift Depositor Protection Oversight Board under section
1441a(b)(3)(A)(ii) of this title'' for ``after September 30, 1993'' and
``before such date'' for ``on or before such date''.
Subsec. (c)(6)(B)(iii). Pub. L. 103-204, Sec. 27(b)(2), substituted
``on or after the date determined by the Chairperson of the Thrift
Depositor Protection Oversight Board under section 1441a(b)(3)(A)(ii) of
this title'' for ``after September 30, 1993''.
Subsec. (c)(13). Pub. L. 103-66, Sec. 3001(b)(1), in subpar. (A)
struck out ``subject to subparagraph (B),'' before ``this section
shall'' and inserted ``and'' at end, redesignated subpar. (C) as (B),
and struck out former subpar. (B) which read as follows: ``the
Corporation shall apply the law of the State in which the institution is
chartered insofar as that law gives the claims of depositors priority
over those of other creditors or claimants; and''.
Subsec. (d)(2)(K). Pub. L. 103-204, Sec. 3(d), inserted ``legal,''
after ``auction marketing,'' and substituted ``only if'' for ``if'' and
``the most practicable'' for ``practicable''.
Subsec. (d)(11). Pub. L. 103-66, Sec. 3001(a), amended par. (11)
generally, substituting present provisions for former provisions
relating to distribution of assets, which consisted of a subpar. (A)
relating to subrogated claims and claims of uninsured depositors and
other creditors and a subpar. (B) relating to distribution to
shareholders of amounts remaining after payment of all other claims and
expenses.
Subsec. (d)(14)(A)(ii). Pub. L. 103-204, 4(b), inserted ``(other
than a claim which is subject to section 1441a(b)(14) of this title)''
after ``any tort claim''.
Subsec. (g)(4). Pub. L. 103-66, Sec. 3001(b)(2), substituted
``Subject to subsection (d)(11) of this section, if'' for ``If''.
Subsec. (p). Pub. L. 103-204, Sec. 20, in heading, substituted
``Certain sales of assets prohibited'' for ``Certain convicted debtors
prohibited from purchasing assets'', added par. (1), redesignated former
pars. (1) and (2) as pars. (2) and (3), respectively, in par. (2)
substituted ``paragraph (3)'' for ``paragraph (2)'' and ``person'' for
``individual'', in par. (3) substituted ``Paragraphs (1) and (2)'' for
``Paragraph (1)'' and ``person'' for ``individual'', wherever appearing,
and added par. (4).
Subsec. (u). Pub. L. 103-204, Sec. 15(b), added subsec. (u).
Subsec. (v). Pub. L. 103-204, Sec. 16(b), added subsec. (v).
Subsec. (w). Pub. L. 103-204, Sec. 17(b), added subsec. (w).
1992--Subsec. (c)(5)(M). Pub. L. 102-550, Sec. 1501(a), added
subpar. (M).
Subsec. (c)(6)(B). Pub. L. 102-550, Sec. 1611(b)(2), substituted
``subparagraph (A) or (C) of section 1464(d)(2) of this title'' for
``subparagraph (C) or (F) of section 1464(d)(2) of this title''.
Pub. L. 102-550, Sec. 1611(b)(1), substituted ``subparagraph (C) or
(F) of section 1464(d)(2) of this title'' for ``section 1464(d)(2)(C) of
this title''.
Subsec. (d)(2)(B), (E). Pub. L. 102-550, Sec. 1604(c)(2), made
technical amendment to reference to section 1831q of this title to
reflect change in reference to corresponding section of original act.
Subsec. (d)(4)(A). Pub. L. 102-550, Sec. 1606(c), substituted
``determination'' for ``determinations'' after ``administrative''.
Subsec. (d)(5)(D)(iii)(I). Pub. L. 102-550, Sec. 1603(e)(1),
substituted ``insured depository institution'' for ``institution
described in paragraph (3)(A)''.
Subsec. (t). Pub. L. 102-550, Sec. 1544, added subsec. (t).
1991--Subsec. (a)(1). Pub. L. 102-242, Sec. 311(b)(1), added par.
(1) and struck out former par. (1) which read as follows: ``The
Corporation shall insure the deposits of all insured depository
institutions as provided in this chapter. The maximum amount of the
insured deposit of any depositor shall be $100,000.''
Subsec. (a)(2)(A). Pub. L. 102-242, Sec. 311(b)(5)(B), in closing
provisions, substituted ``such depositor shall, for the purpose of
determining the amount of insured deposits under this subsection, be
deemed a depositor in such custodial capacity separate and distinct from
any other officer, employee, or agent of the United States or any public
unit referred to in clause (ii), (iii), (iv), or (v) and the deposit of
any such depositor shall be insured in an amount not to exceed $100,000
per account'' for ``his deposit shall be insured'' before ``in an amount
not to exceed $100,000 per account.''
Subsec. (a)(2)(B). Pub. L. 102-242, Sec. 311(b)(5)(C), substituted
``(B)'' for ``(b)'' as subpar. designation.
Subsec. (a)(3). Pub. L. 102-242, Sec. 311(b)(2), amended par. (3)
generally. Prior to amendment, par. (3) read as follows:
``Notwithstanding any limitation in this chapter or in any other
provision of law relating to the amount of deposit insurance available
for the account of any one depositor, time and savings deposits in an
insured depository institution made pursuant to a pension or profit-
sharing plan described in section 401(d) of title 26, or made in the
form of individual retirement accounts as described in section 408(a) of
title 26, shall be insured in the amount of $100,000 per account. As to
any plan qualifying under section 401(d) or section 408(a) of title 26,
the term `per account' means the present vested and ascertainable
interest of each beneficiary under the plan, excluding any remainder
interest created by, or as a result of, the plan.''
Subsec. (a)(6)(E). Pub. L. 102-233, Sec. 202(a), substituted
``1993'' for ``1992'' and ``2000'' for ``1999''.
Subsec. (a)(6)(J). Pub. L. 102-233, Sec. 202(b), substituted
``1992'' for ``1991'' and ``1993'' for ``1992'' in cl. (i), and ``1992''
for ``1991'' and ``2000'' for ``1999'' in cl. (ii).
Subsec. (a)(8). Pub. L. 102-242, Sec. 311(a)(1), added par. (8).
Subsec. (c)(5). Pub. L. 102-242, Sec. 133(a), amended par. (5)
generally, revising and restating as subpars. (A) to (L) provisions of
former subpars. (A) to (H).
Subsec. (c)(6)(B). Pub. L. 102-233, Sec. 102, amended subpar. (B)
generally. Prior to amendment, subpar. (B) read as follows: ``Whenever
the Director of the Office of Thrift Supervision appoints a receiver
under the provisions of section 1464(d)(2)(C) of this title for the
purpose of liquidation or winding up any savings association's affairs--
``(i) during the 3-year period beginning on August 9, 1989, the
Resolution Trust Corporation shall be appointed; and
``(ii) after the end of the 3-year period referred to in clause
(i), the Corporation shall be appointed.''
Subsec. (c)(9). Pub. L. 102-242, Sec. 133(e), amended par. (9)
generally. Prior to amendment, par. (9) read as follows: ``In any case
in which the Corporation is appointed conservator or receiver pursuant
to paragraph (4) or (6)--
``(A) the provisions of this section shall be applicable to the
Corporation, as conservator or receiver of any insured State
depository institution in the same manner and to the same extent as
if such institution were a Federal depository institution for which
the Corporation had been appointed conservator or receiver; and
``(B) the Corporation as receiver of any insured State
depository institution may--
``(i) liquidate such institution in an orderly manner; and
``(ii) make such other disposition of any matter concerning
such institution as the Corporation determines is in the best
interests of the institution, the depositors of such
institution, and the Corporation.''
Subsec. (c)(10) to (13). Pub. L. 102-242, Sec. 133(e), added pars.
(10) to (13).
Subsec. (d)(2)(B). Pub. L. 102-242, Sec. 241(c)(1)(A), inserted
``(subject to the provisions of section 1831q of this title)'' before
comma in introductory provisions.
Subsec. (d)(2)(E). Pub. L. 102-242, Sec. 241(c)(1)(B), inserted
``(subject to the provisions of section 1831q of this title)'' before
first comma.
Subsec. (d)(2)(K). Pub. L. 102-242, Sec. 426, added subpar. (K).
Subsec. (d)(3)(A). Pub. L. 102-242, Sec. 161(a)(1), substituted
``paragraph (4)'' for ``paragraph (4)(A)''.
Subsec. (d)(4). Pub. L. 102-242, Sec. 416, amended par. (4)
generally. Prior to amendment, par. (4) read as follows: ``The
Corporation may prescribe regulations regarding the allowance or
disallowance of claims by the receiver and providing for administrative
determination of claims and review of such determination.''
Subsec. (d)(5)(D). Pub. L. 102-242, Sec. 141(b), amended subpar. (D)
generally. Prior to amendment, subpar. (D) read as follows: ``The
receiver may disallow any portion of any claim by a creditor or claim of
security, preference, or priority which is not proved to the
satisfaction of the receiver.''
Subsec. (d)(11)(B). Pub. L. 102-242, Sec. 161(a)(2), substituted
``paragraph (15)(B)'' for ``paragraph (14)(C)''.
Subsec. (d)(13)(E). Pub. L. 102-242, Sec. 123(a), added subpar. (E).
Subsec. (e)(3)(C)(ii), (4)(B)(iii). Pub. L. 102-242, Sec. 161(a)(3),
(4), substituted ``subsection (i)'' for ``subsection (k)''.
Subsec. (e)(8)(A), (E). Pub. L. 102-242, Sec. 161(a)(5), substituted
``subsection (d)(9) of this section'' for ``subsections (d)(9) and
(i)(4)(I) of this section''.
Subsec. (h). Pub. L. 102-242, Sec. 141(d)(2), substituted
``resolution'' for ``liquidation'' in heading.
Subsec. (h)(4). Pub. L. 102-242, Sec. 141(d)(1), added par. (4).
Subsec. (i)(3)(A). Pub. L. 102-242, Sec. 161(e), substituted
``Notwithstanding any other provision of Federal or State law, or the
constitution of any State, the'' for ``The''.
Subsec. (n)(9). Pub. L. 102-242, Sec. 161(a)(6), substituted
``paragraphs (11) and (12)'' for ``paragraphs (11) and (13)''.
Subsec. (n)(11)(D). Pub. L. 102-242, Sec. 161(a)(7), substituted
``paragraph (9)'' for ``paragraph (8)''.
Subsec. (s). Pub. L. 102-242, Sec. 446, added subsec. (s).
1990--Subsec. (d)(2)(I), (J). Pub. L. 101-647, Sec. 2534(a), added
subpar. (I) and redesignated former subpar. (I) as (J).
Subsec. (d)(17). Pub. L. 101-647, Sec. 2528(a), added par. (17).
Subsec. (d)(18), (19). Pub. L. 101-647, Sec. 2521(a)(1), added pars.
(18) and (19).
Subsec. (p). Pub. L. 101-647, Sec. 2526(a), added subsec. (p).
Subsec. (q). Pub. L. 101-647, Sec. 2527, added subsec. (q).
Subsec. (r). Pub. L. 101-647, Sec. 2532(b), added subsec. (r).
1989--Subsec. (a)(1). Pub. L. 101-73, Sec. 211(1), added par. (1)
and struck out former par. (1) which read as follows: ``The Temporary
Federal Deposit Insurance Fund and the Fund for Mutuals heretofore
created pursuant to the provisions of section 12B of the Federal Reserve
Act, as amended, are consolidated into a Permanent Insurance Fund for
insuring deposits, and the assets therein shall be held by the
Corporation for the uses and purposes of the Corporation: Provided, That
the obligations to and rights of the Corporation, depositors, banks, and
other persons arising out of any event or transaction prior to September
21, 1950, shall remain unimpaired. On and after August 23, 1935, the
Corporation shall insure the deposits of all insured banks as provided
in this chapter: Provided further, That the insurance shall apply only
to deposits of insured banks which have been made available since March
10, 1933, for withdrawal in the usual course of the banking business:
Provided further, That if any insured bank shall, without the consent of
the Corporation, release or modify restrictions on or deferments of
deposits which had not been made available for withdrawal in the usual
course of the banking business on or before August 23, 1935, such
deposits shall not be insured. Except as provided in paragraph (2), the
maximum amount of the insured deposit of any depositor shall be
$100,000.''
Subsec. (a)(2)(A). Pub. L. 101-73, Sec. 201(a), substituted
``insured depository institution'' for ``insured bank'' wherever
appearing.
Subsec. (a)(2)(B). Pub. L. 101-73, Sec. 211(2), struck out ``time
and savings'' after ``deposited in''.
Pub. L. 101-73, Sec. 201(a), substituted ``insured depository
institution'' for ``insured bank''.
Subsec. (a)(3). Pub. L. 101-73, Sec. 201(a), substituted ``insured
depository institution'' for ``insured bank''.
Subsec. (a)(4) to (7). Pub. L. 101-73, Sec. 211(3), added pars. (4)
to (7).
Subsec. (b). Pub. L. 101-73, Sec. 201(a), substituted ``insured
depository institution'' for ``insured bank''.
Subsec. (c). Pub. L. 101-73, Sec. 212(a), added subsec. (c) and
struck out former subsec. (c) which related to Corporation as receiver.
Subsec. (d). Pub. L. 101-73, Sec. 212(a), added subsec. (d) and
struck out former subsec. (d) which related to powers and duties of
Corporation as receiver.
Subsec. (e). Pub. L. 101-73, Sec. 212(a), added subsec. (e) and
struck out former subsec. (e) which related to Corporation as receiver
of State banks.
Subsec. (f). Pub. L. 101-73, Sec. 212(a), added subsec. (f) and
struck out former subsec. (f) which related to payment of insured
deposits of closed insured bank or insured branch of a foreign bank.
Subsec. (g). Pub. L. 101-73, Sec. 212(a), added subsec. (g) and
struck out former subsec. (g) which related to subrogation rights of
Corporation in the case of a closed national bank, insured branch of a
foreign bank, District bank, or closed insured Federal savings bank.
Subsec. (h). Pub. L. 101-73, Sec. 212(a), added subsec. (h) and
struck out former subsec. (h) which related to organization, etc., of
new national banks upon closing of insured banks. See subsec. (m) of
this section.
Subsec. (i). Pub. L. 101-73, Sec. 212(a), added subsec. (i) and
struck out former subsec. (i) which related to establishment, etc., of
bridge banks. See subsec. (n) of this section.
Subsec. (j). Pub. L. 101-73, Sec. 212(a), added subsec. (j) and
struck out former subsec. (j) which related to conditions applicable to
liquidation proceedings.
Subsecs. (k), (l). Pub. L. 101-73, Sec. 212(a), added subsecs. (k)
and (l).
Subsec. (m). Pub. L. 101-73, Sec. 213, added subsec. (m).
Subsec. (n). Pub. L. 101-73, Sec. 214, added subsec. (n).
Subsec. (o). Pub. L. 101-73, Sec. 909, added subsec. (o).
1987--Subsec. (h). Pub. L. 100-86, Sec. 503(a)(1), (2), designated
existing provisions as par. (1) and redesignated former subsecs. (i) to
(l) as pars. (2) to (5), respectively.
Subsec. (i). Pub. L. 100-86, Sec. 503(a)(2), (3), added subsec. (i).
Former subsec. (i) redesignated subsec. (h)(2) of this section.
Subsec. (j). Pub. L. 100-86, Secs. 503(a)(2), 507, added subsec.
(j). Former subsec. (j) redesignated subsec. (h)(3) of this section.
Subsecs. (k), (l). Pub. L. 100-86, Sec. 503(a)(2), redesignated
subsecs. (k) and (l) as pars. (4) and (5), respectively, of subsec. (h).
1986--Subsec. (a)(3). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954'' wherever appearing,
which for purposes of codification was translated as ``title 26'' thus
requiring no change in text.
1982--Subsec. (c). Pub. L. 97-320, Sec. 113(j), inserted provision
relating to appointment of Corporation as receiver for an insured
Federal savings bank by Federal Home Loan Bank Board.
Subsec. (g). Pub. L. 97-320, Sec. 113(k), inserted ``or closed
insured Federal savings bank,'' after ``foreign bank, or District
bank,''.
1981--Subsec. (a)(2)(A)(iv). Pub. L. 97-110 inserted ``the Trust
Territory of the Pacific Islands,'' after ``Virgin Islands, American
Samoa,'' and ``of the Trust Territory of the Pacific Islands,'' after
``of American Samoa,''.
1980--Subsec. (a)(1). Pub. L. 96-221, Sec. 308(a)(1)(C), substituted
``$100,000'' for ``$40,000''.
Subsec. (i). Pub. L. 96-221, Sec. 308(a)(1)(D), substituted
``$100,000'' for ``$40,000''.
1979--Subsec. (a)(2)(A)(v). Pub. L. 96-153 added cl. (v).
1978--Subsec. (a)(3). Pub. L. 95-630 added par. (3).
Subsec. (c). Pub. L. 95-369, Sec. 6(c)(17), inserted ``insured
Federal branch of a foreign bank'' after ``any insured national bank''.
Subsec. (e). Pub. L. 95-369, Sec. 6(c)(18), (19), inserted ``or any
insured branch (other than a Federal branch) of a foreign bank'' after
``(except a District bank)'', and substituted ``such insured State bank
or insured branch of a foreign bank'' for ``such insured State bank''.
Subsec. (f). Pub. L. 95-369, Sec. 6(c)(20), inserted ``or insured
branch of a foreign bank'' after ``Whenever an insured bank''.
Subsec. (g). Pub. L. 95-369, Sec. 6(c)(21), (22), inserted ``insured
branch of a foreign bank'' after ``In the case of a closed national
bank'', and substituted ``In the case of any closed insured bank or
closed insured branch of a foreign bank, such subrogation'' for ``In the
case of any closed insured bank, such subrogation''.
1974--Subsec. (a). Pub. L. 93-495, Secs. 101(a)(3), 102(a)(3),
redesignated existing provisions as par. (1), inserted exception
relating to applicability of par. (2), substituted ``$40,000'' for
``$20,000', and added par. (2).
Subsec. (i). Pub. L. 93-495, Sec. 102(a)(4), substituted ``$40,000''
for ``$20,000''.
1969--Subsec. (a). Pub. L. 91-151, Sec. 7(a)(3), substituted $20,000
for $15,000 in last sentence.
Subsec. (i). Pub. L. 91-151, Sec. 7(a)(4), substituted $20,000 for
$15,000 in fifth sentence.
1966--Subsec. (a). Pub. L. 89-695, Sec. 301(c), substituted in last
sentence ``$15,000'' for ``$10,000'' and struck out ``: And provided
further, That in the case of banks closing prior to September 21, 1950,
the maximum amount of the insured deposit of any depositor shall be
$5,000''.
Subsec. (i). Pub. L. 89-695, Sec. 301(d), substituted ``$15,000''
for ``$10,000'' in fifth sentence.
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Oversight Board redesignated Thrift Depositor Protection Oversight
Board, effective Feb. 1, 1992, see section 302(a) of Pub. L. 102-233,
set out as a note under section 1441a of this title. Thrift Depositor
Protection Oversight Board abolished, see section 14(a)-(d) of Pub. L.
105-216, set out as a note under section 1441a of this title.
Effective Date of 1999 Amendment
Amendment by section 117 of Pub. L. 106-102 effective 120 days after
Nov. 12, 1999, see section 161 of Pub. L. 106-102, set out as a note
under section 24 of this title.
Pub. L. 106-102, title VII, Sec. 736(c), Nov. 12, 1999, 113 Stat.
1479, provided that: ``This section [amending this section and
provisions set out as a note under this section] and the amendments made
by this section shall become effective on the date of the enactment of
this Act [Nov. 12, 1999].''
Effective Date of 1996 Amendment
Section 2704(c) of div. A of Pub. L. 104-208 provided that: ``This
section [amending this section and sections 24, 338a, 347b, 1431, 1441a,
1441b, 1464, 1467a, 1723i, 1735f-14, 1813, 1815 to 1817, 1821a, 1823 to
1825, 1827, 1828, 1831a, 1831e, 1831m, 1831o, 1833a, 1834, 1841, and
3341 of this title and section 905 of Title 2, The Congress, repealing
section 1831h of this title, and enacting provisions set out as notes
under this section] and the amendments made by this section shall become
effective on January 1, 1999, if no insured depository institution is a
savings association on that date.''
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under Title 11, Bankruptcy,
before Oct. 22, 1994, see section 702 of Pub. L. 103-394, set out as a
note under section 101 of Title 11.
Effective Date of 1993 Amendment
Section 3001(c) of Pub. L. 103-66 provided that: ``The amendments
made by this section [amending this section] shall apply with respect to
insured depository institutions for which a receiver is appointed after
the date of the enactment of this Act [Aug. 10, 1993].''
Effective Date of 1992 Amendment
Amendment by section 1501(a) of Pub. L. 102-550 effective Dec. 20,
1992, see section 1501(c) of Pub. L. 102-550, set out as a note under
section 1786 of this title.
Amendment by sections 1603(e)(1), 1604(c)(2), and 1606(c) of Pub. L.
102-550 effective as if included in the Federal Deposit Insurance
Corporation Improvement Act of 1991, Pub. L. 102-242, as of Dec. 19,
1991, except that where amendment is to any provision of law added or
amended by Pub. L. 102-242 effective after Dec. 19, 1992, then amendment
by Pub. L. 102-550 effective on effective date of amendment by Pub. L.
102-242, see section 1609 of Pub. L. 102-550, set out as a note under
section 191 of this title.
Section 1611(b)(2) of Pub. L. 102-550 provided that the amendment
made by that section is effective one year after Dec. 19, 1991.
Effective Date of 1991 Amendment
Amendment by section 133(a), (e) of Pub. L. 102-242 effective 1 year
after Dec. 19, 1991, see section 133(g) of Pub. L. 102-242, set out as a
note under section 191 of this title.
Section 311(c) of Pub. L. 102-242 provided that:
``(1) In general.--Except as provided in paragraph (2), the
amendments made by subsection (a) and paragraphs (2) and (3) of
subsection (b) [amending this section and section 1817 of this title]
shall take effect at the end of the 2-year period beginning on the date
of the enactment of this Act [Dec. 19, 1991].
``(2) Application to time deposits.--
``(A) Certain deposits excluded.--Except with respect to the
amendment referred to in paragraph (3), the amendments made by
subsections (a) and (b) [amending this section and sections 1813 and
1817 of this title] shall not apply to any time deposit which--
``(i) was made before the date of enactment of this Act
[Dec. 19, 1991]; and
``(ii) matures after the end of the 2-year period referred
to in paragraph (1).
``(B) Rollovers and renewals treated as new deposit.--Any
renewal or rollover of a time deposit described in subparagraph (A)
after the date of the enactment of this Act shall be treated as a
new deposit which is not described in such subparagraph.
``(3) Effective date for amendment relating to certain employee
plans.--
``(A) Section 11(a)(1)(B) of the Federal Deposit Insurance Act
[12 U.S.C. 1821(a)(1)(B)] (as amended by subsection (b)(1) of this
section) shall take effect on the earlier of--
``(i) the date of the enactment of this Act [Dec. 19, 1991];
or
``(ii) January 1, 1992.
``(B) Section 11(a)(3)(A) of the Federal Deposit Insurance Act
(as amended by subsection (b)(2) of this section) shall take effect
on the earlier of the dates described in clauses (i) and (ii) of
subparagraph (A) with respect to plans described in clause (ii) of
such section.''
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-221 effective Mar. 31, 1980, see section
308(e) of Pub. L. 96-221, set out as a note under section 1817 of this
title.
Amendment by section 308(a)(1) of Pub. L. 96-221 not applicable to
any claim arising out of the closing of a bank prior to the effective
date of section 308 of Pub L. 96-221, see section 308(a)(2) of Pub. L.
96-221, set out as a note under section 1813 of this title.
Effective Date of 1979 Amendment
Amendment by Pub. L. 96-153 applicable only to claims arising after
Dec. 21, 1979, with respect to a closing of a bank, etc., see section
323(e) of Pub. L. 96-153, set out as an Effective and Termination Dates
of 1979 Amendment note under section 1757 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-630 effective Nov. 10, 1978, see section
1402 of Pub. L. 95-630, set out as a note under section 1787 of this
title.
Effective Date of 1974 Amendment
Amendment by sections 101(a)(3) and 102(a)(3), (4) of Pub. L. 93-495
effective on thirtieth day beginning after Oct. 28, 1974, and amendment
by section 102(a)(3), (4) of Pub. L. 93-495 not applicable to any claim
arising out of the closing of any bank prior to such effective date, see
sections 101(g) and 102(a)(3), (4) of Pub. L. 93-495, set out as a note
under section 1813 of this title.
Effective Date of 1969 Amendment
Amendment by Pub. L. 91-151 not applicable to any claim arising out
of the closing of a bank where such closing took place prior to Dec. 23,
1969, see section 7(b) of Pub. L. 91-151, set out as a note under
section 1813 of this title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89-695 not applicable to any claim arising out
of the closing of a bank where such closing is prior to Oct. 16, 1966,
see section 301(e) of Pub. L. 89-695, set out as a note under section
1813 of this title.
Regulations
Section 311(b)(4) of Pub. L. 102-242 provided that:
``(A) Review of coverage.--For the purpose of prescribing
regulations, during the 1-year period beginning on the date of the
enactment of this Act [Dec. 19, 1991], the Board of Directors shall
review the capacities and rights in which deposit accounts are
maintained and for which deposit insurance coverage is provided by the
Corporation.
``(B) Regulations.--After the end of the 1-year period referred to
in subparagraph (A), the Board of Directors may prescribe regulations
that provide for separate insurance coverage for the different
capacities and rights in which deposit accounts are maintained if a
determination is made by the Board of Directors that such separate
insurance coverage is consistent with--
``(i) the purpose of protecting small depositors and limiting
the undue expansion of deposit insurance coverage; and
``(ii) the insurance provisions of the Federal Deposit Insurance
Act [12 U.S.C. 1811 et seq.].
``(C) Delayed effective date for regulations.--No regulation
prescribed under subparagraph (B) may take effect before the 2-year
period beginning on the date of the enactment of this Act [Dec. 19,
1991].''
Termination of Trust Territory of the Pacific Islands
For termination of Trust Territory of the Pacific Islands, see note
set out preceding section 1681 of Title 48, Territories and Insular
Possessions.
Merger of BIF and SAIF
Pub. L. 104-208, div. A, title II, Sec. 2704(a), (b), Sept. 30,
1996, 110 Stat. 3009-486, as amended by Pub. L. 106-102, title VII,
Sec. 736(b)(1), Nov. 12, 1999, 113 Stat. 1479, provided that the Bank
Insurance Fund and the Savings Association Insurance Fund were to be
merged into the Deposit Insurance Fund, that all assets and liabilities
of the Bank Insurance Fund and the Savings Association Insurance Fund
were to be transferred to the Deposit Insurance Fund, and that the
separate existence of the Bank Insurance Fund and the Savings
Association Insurance Fund was to cease. See Effective Date of 1996
Amendment note above.
GAO Report
Section 8(g) of Pub. L. 103-204 provided that: ``Not later than 60
days after receipt of any certification submitted pursuant to
subparagraph (E) or (F) of section 11(a)(6) of the Federal Deposit
Insurance Act [12 U.S.C. 1821(a)(6)], the Comptroller General shall
transmit a report to the Congress evaluating any such certification.''
Single Agency for Real Property Disposition
Section 26(b) of Pub. L. 103-204 provided that:
``(1) Study.--The Comptroller General of the United States shall
conduct a study to determine the feasibility and effectiveness of
establishing a single Federal agency responsible for selling and
otherwise disposing of real property owned or held by the Department of
Housing and Urban Development, the Farmers Home Administration of the
Department of Agriculture, the Federal Deposit Insurance Corporation,
and the Resolution Trust Corporation. The study shall examine the real
property disposition procedures of such agencies and corporations,
analyze the feasibility of consolidating such procedures through such
single agency, and determine the characteristics and authority necessary
for any such single agency to efficiently carry out such disposition
activities.
``(2) Report.--Not later than 12 months after the date of enactment
of this Act [Dec. 17, 1993], the Comptroller General shall submit a
report to the Congress on the study required under paragraph (1), which
shall describe any findings under the study and contain any
recommendations of the Comptroller General for the establishment of such
single agency.''
Exemptions for Certain Transactions
Section 37 of Pub. L. 103-204 provided that:
``(a) Transactions Involving Certain Institutions.--Section
11(a)(4)(B) of the Federal Deposit Insurance Act [12 U.S.C.
1821(a)(4)(B)] shall not prohibit assistance from the Bank Insurance
Fund that otherwise meets all the criteria established in section 13(c)
of such Act [12 U.S.C. 1823(c)] from being provided to an insured
depository institution that became wholly-owned, either directly or
through a wholly-owned subsidiary, by an entity or instrumentality of a
State government during the period beginning on January 1, 1992, and
ending on the date of enactment of this Act [Dec. 17, 1993].
``(b) Transactions Involving the FDIC as Receiver.--Notwithstanding
the extension, pursuant to section 27 [12 U.S.C. 1831d], of the
Resolution Trust Corporation's jurisdiction to be appointed conservator
or receiver of certain savings associations after September 30, 1993, no
provision of this Act [see Short Title of 1993 Amendment note set out
under section 1421 of this title] or any amendment made by this Act
shall invalidate or otherwise affect--
``(1) any appointment of the Federal Deposit Insurance
Corporation as receiver for any savings association that became
effective before the date of enactment of this Act; or
``(2) any action taken by the Federal Deposit Insurance
Corporation as such receiver before, on, or after such date of
enactment.''
Informational Study
Section 311(d) of Pub. L. 102-242 provided that:
``(1) In general.--The Federal Deposit Insurance Corporation, in
conjunction with such consultants and technical experts as the
Corporation determines to be appropriate, shall conduct a study of the
cost and feasibility of tracking the insured and uninsured deposits of
any individual and the exposure, under any Act of Congress or any
regulation of any appropriate Federal banking agency, of the Federal
Government with respect to all insured depository institutions.
``(2) Analysis of costs and benefits.--The study under paragraph (1)
shall include detailed, technical analysis of the costs and benefits
associated with the least expensive way to implement the system.
``(3) Specific factors to be studied.--As part of the study under
paragraph (1), the Corporation shall investigate, review, and evaluate--
``(A) the data systems that would be required to track deposits
in all insured depository institutions;
``(B) the reporting burdens of such tracking on individual
depository institutions;
``(C) the systems which exist or which would be required to be
developed to aggregate such data on an accurate basis;
``(D) the implications such tracking would have for individual
privacy; and
``(E) the manner in which systems would be administered and
enforced.
``(4) Federal reserve board survey.--As part of the informational
study required under paragraph (1), the Board of Governors of the
Federal Reserve System shall conduct, in conjunction with other Federal
departments and agencies as necessary, a survey of the ownership of
deposits held by individuals including the dollar amount of deposits
held, the type of deposit accounts held, and the type of financial
institutions in which the deposit accounts are held.
``(5) Analysis by fdic.--The results of the survey under paragraph
(4) shall be provided to the Federal Deposit Insurance Corporation
before the end of the 1-year period beginning on the date of the
enactment of this Act [Dec. 19, 1991] for analysis and inclusion in the
informational study.
``(6) Report to congress.--Before the end of the 18-month period
beginning on the date of the enactment of this Act, the Federal Deposit
Insurance Corporation shall submit to the Congress a report containing a
detailed statement of findings made and conclusions drawn from the study
conducted under this section, including such recommendations for
administrative and legislative action as the Corporation determines to
be appropriate.''
Continuation of Health Plan Coverage in Cases of Failed Financial
Institutions
Section 451 of Pub. L. 102-242, as amended by Pub. L. 102-550, title
XVI, Sec. 1606(g)(1), Oct. 28, 1992, 106 Stat. 4088, provided that:
``(a) Continuation Coverage.--The Federal Deposit Insurance
Corporation--
``(1) shall, in its capacity as a successor of a failed
depository institution (whether acting directly or through any
bridge bank), have the same obligation to provide a group health
plan meeting the requirements of section 602 of the Employee
Retirement Income Security Act of 1974 [29 U.S.C. 1162] (relating to
continuation coverage requirements of group health plans) with
respect to former employees of such institution as such institution
would have had but for its failure, and
``(2) shall require that any successor described in subsection
(b)(1)(B)(iii) provide a group health plan with respect to former
employees of such institution in the same manner as the failed
depository institution would have been required to provide but for
its failure.
``(b) Definitions.--For purposes of this section--
``(1) Successor.--An entity is a successor of a failed
depository institution during any period if--
``(A) such entity holds substantially all of the assets or
liabilities of such institution, and
``(B) such entity is--
``(i) the Federal Deposit Insurance Corporation,
``(ii) any bridge bank, or
``(iii) an entity that acquires such assets or
liabilities from the Federal Deposit Insurance Corporation
or a bridge bank.
``(2) Failed depository institution.--The term `failed
depository institution' means any depository institution (as defined
in section 3(c) of the Federal Deposit Insurance Act [12 U.S.C.
1813(c)]) for which a receiver has been appointed.
``(3) Bridge bank.--The term `bridge bank' has the meaning given
such term by section 3(i)(2) of the Federal Deposit Insurance Act
[12 U.S.C. 1812(i)(2)].
``(c) No premium costs imposed on fdic.--Subsection (a) shall not be
construed as requiring the Federal Deposit Insurance Corporation to
incur, by reason of this section, any obligation for any premium under
any group health plan referred to in such subsection.
``(d) Effective Date.--This section shall apply to plan years
beginning on or after the date of the enactment of this Act [Dec. 19,
1991], regardless of whether the qualifying event under section 603 of
the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1163]
occurred before, on, or after such date.''
Definitions
Section 2710 of div. A of Pub. L. 104-208 provided that: ``For
purposes of this subtitle [subtitle G (Secs. 2701-2711) of title II of
div. A of Pub. L. 104-208, see Short Title of 1996 Amendment note set
out under section 1811 of this title], the following definitions shall
apply:
``(1) Bank insurance fund.--The term `Bank Insurance Fund' means
the fund established pursuant to section (11)(a)(5)(A) of the
Federal Deposit Insurance Act [12 U.S.C. 1821(a)(5)(A)], as that
section existed on the day before the date of enactment of this Act
[Sept. 30, 1996].
``(2) BIF member, saif member.--The terms `Bank Insurance Fund
member' and `Savings Association Insurance Fund member' have the
same meanings as in section 7(l) of the Federal Deposit Insurance
Act [12 U.S.C. 1817(l)].
``(3) Various banking terms.--The terms `bank', `Board of
Directors', `Corporation', `deposit', `insured depository
institution', `Federal savings association', `savings association',
`State savings bank', and `State depository institution' have the
same meanings as in section 3 of the Federal Deposit Insurance Act
[12 U.S.C. 1813].
``(4) Deposit insurance fund.--The term `Deposit Insurance Fund'
means the fund established under section 11(a)(4) of the Federal
Deposit Insurance Act [12 U.S.C. 1821(a)(4)] (as amended by section
2704(d) of this subtitle).
``(5) Depository institution holding company.--The term
`depository institution holding company' has the same meaning as in
section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813].
``(6) Designated reserve ratio.--The term `designated reserve
ratio' has the same meaning as in section 7(b)(2)(A)(iv) of the
Federal Deposit Insurance Act [12 U.S.C. 1817(b)(2)(A)(iv)].
``(7) SAIF.--The term `Savings Association Insurance Fund' means
the fund established pursuant to section 11(a)(6)(A) of the Federal
Deposit Insurance Act [12 U.S.C. 1821(a)(6)(A)], as that section
existed on the day before the date of enactment of this Act [Sept.
30, 1996].
``(8) SAIF-assessable deposit.--The term `SAIF-assessable
deposit'--
``(A) means a deposit that is subject to assessment for
purposes of the Savings Association Insurance Fund under the
Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]
(including a deposit that is treated as insured by the Savings
Association Insurance Fund under section 5(d)(3) of the Federal
Deposit Insurance Act [12 U.S.C. 1815(d)(3)]); and
``(B) includes any deposit described in subparagraph (A)
which is assumed after March 31, 1995, if the insured depository
institution, the deposits of which are assumed, is not an
insured depository institution when the special assessment is
imposed under section 2702(a) [12 U.S.C. 1817 note].''
Section Referred to in Other Sections
This section is referred to in sections 191, 197, 203, 248, 1441a,
1464, 1813, 1818, 1822, 1823, 1831r-1 of this title; title 11 section
783; title 15 section 6712; title 15 section 6712; title 18 section
1032; title 26 sections 414, 597.
