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12 U.S.C. § 4401 — Findings and purpose
Federal law — U.S. Code and appendices · legal_authorities
The Congress finds that—
(1) many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations;
(2) the efficient processing of such transactions is essential to a smoothly functioning economy;
(3) such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;
(4) such netting procedures would reduce the systemic risk within the banking system and financial markets; and
(5) the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.
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Source file: Laws/federal/codes/united-states-code/title-12/section-4401-findings-and-purpose--80c5bd4c77.md
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Source location: Title 12, Chapter 45, § 4401; chapter-045-payment-system-risk-reduction.md
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The Congress finds that—
(1) many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations;
(2) the efficient processing of such transactions is essential to a smoothly functioning economy;
(3) such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;
(4) such netting procedures would reduce the systemic risk within the banking system and financial markets; and
(5) the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment of Corporation** There is hereby established a Federal Deposit Insurance Corporation (hereinafter referred to as the “Corporation”) which shall insure, as hereinafter provided, the deposits of all banks and savings associations which are entitled to the benefits of insurance under this chapter, and which shall have the powers hereinafter granted.
**(b) Asset disposition division**
(1) **Establishment** — The Corporation shall have a separate division of asset disposition.
(2) **Management** — The division of asset disposition shall have an administrator who shall be appointed by the Board of Directors.
(3) **Responsibilities of division** — The division of asset disposition shall carry out all of the responsibilities of the Corporation under this chapter relating to the liquidation of insured depository institutions and the disposition of assets of such institutions.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1811
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Federal law — U.S. Code and appendices · legal_authorities
**(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 the standard maximum deposit insurance amount as determined in accordance with subparagraphs (C), (D), (E) and (F) and paragraph (3).
(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1817/i&num=0&edition=prelim) or any funds described in [section 1817(i)(3) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1817/i/3&num=0&edition=prelim).
(D) *Coverage for certain employee benefit plan deposits*
(i) *Pass-through insurance* — The Corporation shall provide pass-through deposit insurance for the deposits of any employee benefit plan.
(ii) *Prohibition on acceptance of benefit plan deposits* — An insured depository institution that is not well capitalized or adequately capitalized may not accept employee benefit plan deposits.
(iii) *Definitions* — For purposes of this subparagraph, the following definitions shall apply:
(I) *Capital standards* — The terms “well ca
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1821
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Powers and authorities**
(1) **General powers**
(A) *Successor to covered financial company* — The Corporation shall, upon appointment as receiver for a covered financial company under this subchapter, succeed to—
(i) all rights, titles, powers, and privileges of the covered financial company and its assets, and of any stockholder, member, officer, or director of such company; and
(ii) title to the books, records, and assets of any previous receiver or other legal custodian of such covered financial company.
(B) *Operation of the covered financial company during the period of orderly liquidation* — The Corporation, as receiver for a covered financial company, may—
(i) take over the assets of and operate the covered financial company with all of the powers of the members or shareholders, the directors, and the officers of the covered financial company, and conduct all business of the covered financial company;
(ii) collect all obligations and money owed to the covered financial company;
(iii) perform all functions of the covered financial company, in the name of the covered financial company;
(iv) manage the assets and property of the covered financial company, consistent with maximization of the value of the assets in the context of the orderly liquidation; and
(v) provide by contract for assistance in fulfilling any function, activity, action, or duty of the Corporation as receiver.
(C) *Functions of covered financial company officers, directors, and shareholders* — The Corporation may provide for the exercise of any function by any member or stockholder, director, or officer of any covered financial company for which the Corporation has been appointed as receiver under this subchapter.
(D) *Additional powers as rec
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5393
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Federal law — U.S. Code and appendices · legal_authorities
Page 1633
TITLE 12—BANKS AND BANKING
§ 4402
1 See References in Text note below.
Sec.
4402.
Definitions.
4403.
Bilateral netting.
4404.
Clearing organization netting.
4405.
Preemption.
4406.
Relationship to other payments systems.
4406a.
Treatment of contracts with uninsured na-
tional banks, uninsured Federal branches
and agencies, certain uninsured State mem-
ber banks, and Edge Act corporations.
4407.
National emergencies.
SUBCHAPTER II—MULTILATERAL CLEARING
ORGANIZATIONS
4421, 4422. Repealed.
SUBCHAPTER I—BILATERAL AND
CLEARING ORGANIZATION NETTING
§ 4401. Findings and purpose
The Congress finds that—
(1) many financial institutions engage daily
in thousands of transactions with other finan-
cial institutions directly and through clearing
organizations;
(2) the efficient processing of such trans-
actions is essential to a smoothly functioning
economy;
(3) such transactions can be processed most
efficiently if, consistent with applicable con-
tractual terms, obligations among financial
institutions are netted;
(4) such netting procedures would reduce the
systemic risk within the banking system and
financial markets; and
(5) the effectiveness of such netting proce-
dures can be assured only if they are recog-
nized as valid and legally binding in the event
of the closing of a financial institution par-
ticipating in the netting procedures.
(Pub. L. 102–242, title IV, § 401, Dec. 19, 1991, 105
Stat. 2371.)
Statutory Notes and Related Subsidiaries
SEPARABILITY
If any provision of Pub. L. 102–242 or any application
of any provision thereof to any person or circumstance
is held invalid, the remainder of Pub. L. 102–242 and the
application of any remaining provision of such Act to
any other person or circumstance not to be affected
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 4401
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