§ 203. — Appointment of conservator.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC203]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER XIV--BANK CONSERVATION ACT
Sec. 203. Appointment of conservator
(a) Appointment
The Comptroller of the Currency may, without prior notice or
hearings, appoint a conservator (which may be the Federal Deposit
Insurance Corporation) to the possession and control of a bank whenever
the Comptroller of the Currency determines that 1 or more of the grounds
specified in section 11(c)(5) of the Federal Deposit Insurance Act [12
U.S.C. 1821(c)(5)] exist.
(b) Judicial review
(1) In general
Not later than 20 days after the initial appointment of a
conservator pursuant to this section, the bank may bring an action
in the United States district court for the judicial district in
which the home office of such bank is located, or in the United
States District Court for the District of Columbia, for an order
requiring the Comptroller to terminate the appointment of the
conservator, and the court, upon the merits, shall dismiss such
action or shall direct the Comptroller to terminate the appointment
of such conservator. The Comptroller's decision to appoint a
conservator pursuant to this section shall be set aside only if the
court finds that such decision was arbitrary, capricious, an abuse
of discretion, or otherwise not in accordance with law.
(2) Stay
The conservator may request that any judicial action or
proceeding to which the conservator or the bank is or may become a
party be stayed for a period of up to 45 days after the appointment
of the conservator. Upon petition, the court shall grant such stay
as to all parties.
(3) Actions and orders
Except as otherwise provided in this subsection, no court may
take any action regarding the removal of a conservator, or restrain,
or affect the exercise of powers or functions of a conservator. A
court, upon application by the Comptroller, shall have jurisdiction
to enforce an order of the Comptroller relating to--
(A) the conservatorship and the bank in conservatorship, or
(B) restraining or affecting the exercise of powers or
functions of a conservator.
(c) Additional grounds for appointment
In addition to the foregoing provisions, the Comptroller may appoint
a conservator for a bank if--
(1) the bank, by an affirmative vote of a majority of its board
of directors or by an affirmative vote of a majority of its
shareholders, consents to such appointment, or
(2) the Federal Deposit Insurance Corporation terminates the
bank's status as an insured bank.
The appointment of a conservator pursuant to this subsection shall not
be subject to review.
(d) Exclusive authority
The Comptroller shall have exclusive power and jurisdiction to
appoint a conservator for a bank. Whenever the Comptroller appoints a
conservator for any bank, the Comptroller may appoint the Federal
Deposit Insurance Corporation conservator for such bank. The Federal
Deposit Insurance Corporation, as such conservator, shall have all the
powers granted under the Federal Deposit Insurance Act [12 U.S.C. 1811
et seq.], and (when not inconsistent therewith) any other rights,
powers, and privileges possessed by conservators of banks under this Act
and any other provision of law. The Comptroller may also appoint another
person as conservator, who shall be subject to the provisions of this
Act.
(e) Replacement of conservator
The Comptroller may, without notice or hearing, replace a
conservator with another conservator. Such replacement shall not affect
the bank's right under subsection (b) of this section to obtain judicial
review of the Comptroller's original decision to appoint a conservator.
(Mar. 9, 1933, ch. 1, title II, Sec. 203, 48 Stat. 2; Pub. L. 101-73,
title VIII, Sec. 802, Aug. 9, 1989, 103 Stat. 442; Pub. L. 102-242,
title I, Sec. 133(c), Dec. 19, 1991, 105 Stat. 2271.)
References in Text
The Federal Deposit Insurance Act, referred to in subsec. (d), is
act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended, which is
classified generally to chapter 16 (Sec. 1811 et seq.) of this title.
For complete classification of this Act to the Code, see Short Title
note set out under section 1811 of this title and Tables.
This Act, referred to in subsec. (d), is act Mar. 9, 1933, ch. 1, 48
Stat. 1, as amended, popularly known as the Emergency Banking and Bank
Conservation Act, which is classified to sections 51a, 51b, 51c, 51d, 95
to 95b, 201 to 212, 248, 347b, 347c, 347d, 445 of this title and to
section 5 of Title 50, Appendix, War and National Defense.
Section 51d of this title was repealed by act June 30, 1947, ch.
166, title II, Sec. 206(b), (o), 61 Stat. 208. For effect of the repeal
on outstanding debentures held by banks, see References in Text note set
out under section 51b-1 of this title.
Amendments
1991--Subsec. (a). Pub. L. 102-242 amended subsec. (a) generally,
substituting present provisions for provisions which specified
circumstances under which Comptroller could appoint conservator.
1989--Pub. L. 101-73 amended section generally, changing structure
of section from a single unlettered paragraph to one consisting of
subsections (a) to (e).
Effective Date of 1991 Amendment
Amendment by 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.
Exception as to Transfer of Functions
Functions vested by any provision of law in Comptroller of the
Currency, referred to in this section, not included in transfer of
functions to Secretary of the Treasury, see note set out under section 1
of this title.
Conservators of State Banks
Ex. Ord. No. 6080, Mar. 18, 1933, provided for appointment of
conservators of State banks under certain regulations.
