11 U.S.C. § 781 — Definitions

Page 225 TITLE 11—BANKRUPTCY § 783 1 See References in Text note below. the priority of any unsecured claim it may have after the exercise of such rights. (Added Pub. L. 109–8, title IX, § 907(l), Apr. 20, 2005, 119 Stat. 181.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title. SUBCHAPTER V—CLEARING BANK LIQUIDATION § 781. Definitions For purposes of this subchapter, the following definitions shall apply: (1) BOARD.—The term ‘‘Board’’ means the Board of Governors of the Federal Reserve System. (2) DEPOSITORY INSTITUTION.—The term ‘‘de- pository institution’’ has the same meaning as in section 3 of the Federal Deposit Insurance Act. (3) CLEARING BANK.—The term ‘‘clearing bank’’ means an uninsured State member bank, or a corporation organized under section 25A of the Federal Reserve Act, which oper- ates, or operates as, a multilateral clearing or- ganization pursuant to section 409 1 of the Fed- eral Deposit Insurance Corporation Improve- ment Act of 1991. (Added Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(5)(B)], Dec. 21, 2000, 114 Stat. 2763, 2763A–394.) Editorial Notes REFERENCES IN TEXT Section 3 of the Federal Deposit Insurance Act, re- ferred to in par. (2), is classified to section 1813 of Title 12, Banks and Banking. Section 25A of the Federal Reserve Act, referred to in par. (3), popularly known as the Edge Act, is classified to subchapter II (§ 611 et seq.) of chapter 6 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 611 of Title 12 and Tables. Section 409 of the Federal Deposit Insurance Corpora- tion Improvement Act of 1991, referred to in par. (3), which was classified to section 4422 of Title 12, Banks and Banking, was repealed by Pub. L. 111–203, title VII, § 740, July 21, 2010, 124 Stat. 1729. § 782. Selection of trustee (a) IN GENERAL.— (1) APPOINTMENT.—Notwithstanding any other provision of this title, the conservator or receiver who files the petition shall be the trustee under this chapter, unless the Board designates an alternative trustee. (2) SUCCESSOR.—The Board may designate a successor trustee if required. (b) AUTHORITY OF TRUSTEE.—Whenever the Board appoints or designates a trustee, chapter 3 and sections 704 and 705 of this title shall apply to the Board in the same way and to the same extent that they apply to a United States trust- ee. (Added Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(5)(B)], Dec. 21, 2000, 114 Stat. 2763, 2763A–394.) § 783. Additional powers of trustee (a) DISTRIBUTION OF PROPERTY NOT OF THE ES- TATE.—The trustee under this subchapter has power to distribute property not of the estate, including distributions to customers that are mandated by subchapters III and IV of this chap- ter. (b) DISPOSITION OF INSTITUTION.—The trustee under this subchapter may, after notice and a hearing— (1) sell the clearing bank to a depository in- stitution or consortium of depository institu- tions (which consortium may agree on the al- location of the clearing bank among the con- sortium); (2) merge the clearing bank with a deposi- tory institution; (3) transfer contracts to the same extent as could a receiver for a depository institution under paragraphs (9) and (10) of section 11(e) of the Federal Deposit Insurance Act; (4) transfer assets or liabilities to a deposi- tory institution; and (5) transfer assets and liabilities to a bridge depository institution as provided in para- graphs (1), (3)(A), (5), and (6) of section 11(n) of the Federal Deposit Insurance Act, paragraphs (9) through (13) of such section, and subpara- graphs (A) through (H) and subparagraph (K) of paragraph (4) of such section 11(n), except that— (A) the bridge depository institution to which such assets or liabilities are trans- ferred shall be treated as a clearing bank for the purpose of this subsection; and (B) any references in any such provision of law to the Federal Deposit Insurance Cor- poration shall be construed to be references to the appointing agency and that references to deposit insurance shall be omitted. (c) CERTAIN TRANSFERS INCLUDED.—Any ref- erence in this section to transfers of liabilities includes a ratable transfer of liabilities within a priority class. (Added Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(5)(B)], Dec. 21, 2000, 114 Stat. 2763, 2763A–395; amended Pub. L. 110–289, div. A, title VI, § 1604(b)(3), July 30, 2008, 122 Stat. 2829.) Editorial Notes REFERENCES IN TEXT Section 11 of the Federal Deposit Insurance Act, re- ferred to in subsec. (b)(3), (5), is classified to section 1821 of Title 12, Banks and Banking. AMENDMENTS 2008—Subsec. (b)(5). Pub. L. 110–289, which directed amendment of this section by substituting ‘‘bridge de- pository institution’’ for ‘‘bridge bank’’, was executed by making the substitution in introductory provisions and subpar. (A) of subsec. (b)(5), to reflect the probable intent of Congress.