§ 206. — Conservator; powers and duties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC206]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER XIV--BANK CONSERVATION ACT
Sec. 206. Conservator; powers and duties
(a) General powers
A conservator shall have all the powers of the shareholders,
directors, and officers of the bank and may operate the bank in its own
name unless the Comptroller \1\ in the order of appointment limits the
conservator's authority.
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\1\ So in original. Probably should be ``Comptroller of the
Currency''.
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(b) Subject to rules of Comptroller
The conservator shall be subject to such rules, regulations, and
orders as the Comptroller from time to time deems appropriate; and,
except as otherwise specifically provided in such rules, regulations, or
orders or in section 209 of this title, shall have the same rights and
privileges and be subject to the same duties, restrictions, penalties,
conditions, and limitations as apply to directors, officers, or
employees of a national bank.
(c) Payment of depositors and creditors
The Comptroller may require the conservator to set aside and make
available for withdrawal by depositors and payment to other creditors
such amounts as in the opinion of the Comptroller may safely be used for
that purpose. All depositors and creditors who are similarly situated
shall be treated in the same manner.
(d) Compensation of conservator and employees
The conservator and professional employees appointed to represent or
assist the conservator shall not be paid amounts greater than are
payable to employees of the Federal Government for similar services,
except that the Comptroller of the Currency may authorize payment at
higher rates (but not in excess of rates prevailing in the private
sector), if the Comptroller determines that paying such higher rates is
necessary in order to recruit and retain competent personnel.
(e) Expenses
All expenses of any such conservatorship shall be paid by the bank
and shall be a lien upon the bank which shall be prior to any other
lien.
(Mar. 9, 1933, ch. 1, title II, Sec. 206, 48 Stat. 3; Pub. L. 101-73,
title VIII, Sec. 805, Aug. 9, 1989, 103 Stat. 445.)
Amendments
1989--Pub. L. 101-73 amended section generally. Prior to amendment,
section read as follows: ``While such bank is in the hands of the
conservator appointed by the Comptroller of the Currency, the
Comptroller may require the conservator to set aside and make available
for withdrawal by depositors and payment to other creditors, on a
ratable basis, such amounts as in the opinion of the Comptroller may
safely be used for this purpose; and the Comptroller may, in his
discretion, permit the conservator to receive deposits, but deposits
received while the bank is in the hands of the conservator shall not be
subject to any limitation as to payment or withdrawal, and such deposits
shall be segregated and shall not be used to liquidate any indebtedness
of such bank existing at the time that a conservator was appointed for
it, or any subsequent indebtedness incurred for the purpose of
liquidating any indebtedness of such bank existing at the time such
conservator was appointed. Such deposits received while the bank is in
the hands of the conservator shall be kept on hand in cash, invested in
the direct obligations of the United States, or deposited with a Federal
reserve bank. The Federal reserve banks are authorized to open and
maintain separate deposit accounts for such purpose, or for the purpose
of receiving deposits from State officials in charge of State banks
under similar circumstances.''
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.
Section Referred to in Other Sections
This section is referred to in title 5 section 5373.
