12 U.S.C. § 5389 — Rulemaking; non-conflicting law

Page 1881 TITLE 12—BANKS AND BANKING § 5390 case commenced under the Bankruptcy Code), and upon notice to SIPC (with respect to a cov- ered broker or dealer) and no such case or pro- ceeding may be commenced with respect to a covered financial company at any time while the orderly liquidation is pending. (b) Revesting of assets Effective as of the date of appointment of the Corporation as receiver, the assets of a covered financial company shall, to the extent they have vested in any entity other than the covered fi- nancial company as a result of any case or pro- ceeding commenced with respect to the covered financial company under the Bankruptcy Code, the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), or any similar provision of State liquidation or insolvency law applicable to the covered financial company, revest in the covered financial company. (c) Limitation Notwithstanding subsections (a) and (b), any order entered or other relief granted by a bank- ruptcy court prior to the date of appointment of the Corporation as receiver shall continue with the same validity as if an orderly liquidation had not been commenced. (Pub. L. 111–203, title II, § 208, July 21, 2010, 124 Stat. 1459.) Editorial Notes REFERENCES IN TEXT The Securities Investor Protection Act of 1970, re- ferred to in subsecs. (a) and (b), is Pub. L. 91–598, Dec. 30, 1970, 84 Stat. 1636, which is classified generally to chapter 2B–1 (§ 78aaa et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78aaa of Title 15 and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 5389. Rulemaking; non-conflicting law The Corporation shall, in consultation with the Council, prescribe such rules or regulations as the Corporation considers necessary or appro- priate to implement this subchapter, including rules and regulations with respect to the rights, interests, and priorities of creditors, counterparties, security entitlement holders, or other persons with respect to any covered finan- cial company or any assets or other property of or held by such covered financial company, and address the potential for conflicts of interest be- tween or among individual receiverships estab- lished under this subchapter or under the Fed- eral Deposit Insurance Act [12 U.S.C. 1811 et seq.]. To the extent possible, the Corporation shall seek to harmonize applicable rules and reg- ulations promulgated under this section with the insolvency laws that would otherwise apply to a covered financial company. (Pub. L. 111–203, title II, § 209, July 21, 2010, 124 Stat. 1460.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this title’’, meaning title II of Pub. L. 111–203, July 21, 2010, 124 Stat. 1442, which is classified principally to this subchapter. For complete classification of title II to the Code, see Tables. The Federal Deposit Insurance Act, referred to in text, is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 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. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 5390. Powers and duties of the Corporation (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 privi- leges of the covered financial company and its assets, and of any stockholder, mem- ber, officer, or director of such company; and (ii) title to the books, records, and assets of any previous receiver or other legal cus- todian of such covered financial company. (B) Operation of the covered financial com- pany during the period of orderly liq- uidation 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 share- holders, the directors, and the officers of the covered financial company, and con- duct 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 cov- ered financial company; (iv) manage the assets and property of the covered financial company, consistent with maximization of the value of the as- sets in the context of the orderly liquida- tion; 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 exer- cise of any function by any member or stockholder, director, or officer of any cov- ered financial company for which the Cor- poration has been appointed as receiver under this subchapter.