§ 205. — Termination of conservatorship.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC205]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER XIV--BANK CONSERVATION ACT
Sec. 205. Termination of conservatorship
(a) General rule
At any time the Comptroller \1\ becomes satisfied that it may safely
be done and that it would be in the public interest, the Comptroller
(with the agreement of the Board of Directors of the Federal Deposit
Insurance Corporation when the Corporation has been appointed
conservator) may--
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\1\ So in original. Probably should be ``Comptroller of the
Currency''.
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(1) terminate the conservatorship and permit the involved bank
to resume the transaction of its business subject to such terms,
conditions, and limitations as the Comptroller may prescribe; or
(2) terminate the conservatorship upon a sale, merger,
consolidation, purchase and assumption, change in control, or
voluntary dissolution and liquidation of the involved bank.
(b) Other grounds for termination
The Comptroller also may terminate the conservatorship upon the
appointment of a receiver pursuant to section 191 of this title.
(c) Enforcement under Federal Deposit Insurance Act
Such terms, conditions, and limitations as may be prescribed under
subsection (a)(1) of this section shall be enforceable under the
provisions of section 8(i) of the Federal Deposit Insurance Act [12
U.S.C. 1818(i)], to the same extent as an order issued pursuant to
section 8(b) of the Federal Deposit Insurance Act [12 U.S.C. 1818(b)]
which has become final. 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 order. An action for judicial review of the terms, conditions, and
limitations may not be commenced later than 20 days from the date of the
termination of the conservatorship or the imposition of the order,
whichever is later.
(d) Action upon termination
(1) In general
Upon termination of the conservatorship under subsection (a)(2)
of this section, the Federal Deposit Insurance Corporation, as
conservator, or when another person is appointed conservator, such
other person, shall conclude the affairs of the conservatorship in
accordance with paragraph (2).
(2) Deposit and distribution of proceeds
(A) Within 180 days of the sale, merger, consolidation, purchase
and assumption, change in control, or voluntary dissolution and
liquidation, the conservator shall deposit all net proceeds received
from the transaction, less any outstanding expenses of the
conservatorship, with the United States district court for the
judicial district in which the home office of such bank is located
and shall cause notice to be published for three consecutive months
and notify by mail all known and remaining creditors and
shareholders. Within 60 days thereafter, any depositor, creditor, or
other claimant of the bank, or any shareholder of the bank may bring
an action in interpleader in that court for distribution of the
proceeds. The district court shall distribute such funds equitably.
If no such action is instituted within one year after the date the
funds are deposited with the district court, title to such net
proceeds shall revert to the United States and the district court
shall remit the funds to the Treasury of the United States.
(B) The conservator shall be deemed to have discharged all
responsibility of the conservatorship upon the deposit of the
proceeds with the district court and giving the required
notifications.
(Mar. 9, 1933, ch. 1, title II, Sec. 205, 48 Stat. 3; Pub. L. 101-73,
title VIII, Sec. 804, Aug. 9, 1989, 103 Stat. 443.)
References in Text
The Federal Deposit Insurance Act, referred to in subsec. (c), 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.
Amendments
1989--Pub. L. 101-73 amended section generally. Prior to amendment,
section read as follows: ``If the Comptroller of the Currency becomes
satisfied that it may safely be done and that it would be in the public
interest, he may, in his discretion, terminate the conservatorship and
permit such bank to resume the transaction of its business subject to
such terms, conditions, restrictions and limitations as he may
prescribe.''
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.
