12 U.S.C. § 203 — Appointment of conservator

Page 68 TITLE 12—BANKS AND BANKING § 199 Statutory Notes and Related Subsidiaries APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 199. Approval of request Such request, if approved by the Comptroller of the Currency, shall be, together with the cer- tificate of facts in the case, and his rec- ommendation as to the amount of money which, in his judgment, should be so used and em- ployed, submitted to the Secretary of the Treas- ury, and if the same shall likewise be approved by him, the request shall be by the Comptroller of the Currency allowed, and notice thereof, with copies of the request, certificate of facts, and indorsement of approvals, shall be filed with the Treasurer of the United States. (Mar. 29, 1886, ch. 28, § 2, 24 Stat. 8.) Statutory Notes and Related Subsidiaries APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. § 200. Payment Whenever any such request shall be allowed as hereinbefore provided, the said Comptroller of the Currency shall be, and is, empowered to draw upon and from such funds of any such trust as may be deposited with the Treasurer of the United States for the benefit of the bank in in- terest, to the amount as may be recommended and allowed and for the purpose for which such allowance was made: Provided, however, That all payments to be made for or on account of the purchase of any such property and under any such allowance shall be made by the Comp- troller of the Currency direct, with the approval of the Secretary of the Treasury, for such pur- pose only and in such manner as he may deter- mine and order. (Mar. 29, 1886, ch. 28, § 3, 24 Stat. 8.) Statutory Notes and Related Subsidiaries APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. SUBCHAPTER XIV—BANK CONSERVATION ACT § 201. Short title This subchapter may be cited as the ‘‘Bank Conservation Act.’’ (Mar. 9, 1933, ch. 1, title II, § 201, 48 Stat. 2.) § 202. Definitions As used in this subchapter, the term ‘‘bank’’ means any national banking association or any other financial institution chartered or licensed under Federal law and subject to the supervision of the Comptroller of the Currency; the term ‘‘voluntary dissolution and liquidation’’ means a transaction pursuant to section 181 of this title that involves the assumption of the bank’s in- sured deposit liabilities and the sale of the bank, or of control of the bank, as a going concern; and the term ‘‘State’’ means any State, Terri- tory, or possession of the United States, and the Canal Zone. (Mar. 9, 1933, ch. 1, title II, § 202, 48 Stat. 2; Pub. L. 101–73, title VIII, § 801, Aug. 9, 1989, 103 Stat. 441; Pub. L. 109–351, title VII, § 725(b), Oct. 13, 2006, 120 Stat. 2001; Pub. L. 109–356, title I, § 123(b), Oct. 16, 2006, 120 Stat. 2028.) Editorial Notes REFERENCES IN TEXT For definition of Canal Zone, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Inter- course. AMENDMENTS 2006—Pub. L. 109–351 and 109–356 amended section identically, substituting ‘‘means any national’’ for ‘‘means (1) any national’’ and striking out ‘‘, and (2) any bank or trust company located in the District of Columbia and operating under the supervision of the Comptroller of the Currency’’ before first semicolon. 1989—Pub. L. 101–73, § 801(1), in cl. (1), extended term ‘‘bank’’ to include any financial institution chartered or licensed under Federal law and subject to super- vision of Comptroller of the Currency. Pub. L. 101–73, § 801(2), in cl. (2), inserted definition of term ‘‘voluntary dissolution and liquidation’’. § 203. Appointment of conservator (a) Appointment The Comptroller of the Currency may, without prior notice or hearings, appoint a conservator (which may be the Federal Deposit Insurance Corporation) to the possession and control of a bank whenever the Comptroller of the Currency determines that 1 or more of the grounds speci- fied in section 11(c)(5) of the Federal Deposit In- surance Act [12 U.S.C. 1821(c)(5)] exist. (b) Judicial review (1) In general Not later than 20 days after the initial ap- pointment of a conservator pursuant to this section, 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 Page 69 TITLE 12—BANKS AND BANKING § 204 the appointment of the conservator, and the court, upon the merits, shall dismiss such ac- tion or shall direct the Comptroller to termi- nate the appointment of such conservator. The Comptroller’s decision to appoint a conser- vator pursuant to this section shall be set aside only if the court finds that such decision was arbitrary, capricious, an abuse of discre- tion, or otherwise not in accordance with law. (2) Stay The conservator may request that any judi- cial action or proceeding to which the conser- vator or the bank is or may become a party be stayed for a period of up to 45 days after the appointment of the conservator. Upon peti- tion, the court shall grant such stay as to all parties. (3) Actions and orders Except as otherwise provided in this sub- section, no court may take any action regard- ing the removal of a conservator, or restrain, or affect the exercise of powers or functions of a conservator. A court, upon application by the Comptroller, shall have jurisdiction to en- force an order of the Comptroller relating to— (A) the conservatorship and the bank in conservatorship, or (B) restraining or affecting the exercise of powers or functions of a conservator. (c) Additional grounds for appointment In addition to the foregoing provisions, the Comptroller may appoint a conservator for a bank if— (1) the bank, by an affirmative vote of a ma- jority of its board of directors or by an affirm- ative vote of a majority of its shareholders, consents to such appointment, or (2) the Federal Deposit Insurance Corpora- tion terminates the bank’s status as an in- sured bank. The appointment of a conservator pursuant to this subsection shall not be subject to review. (d) Exclusive authority The Comptroller shall have exclusive power and jurisdiction to appoint a conservator for a bank. Whenever the Comptroller appoints a con- servator for any bank, the Comptroller may ap- point the Federal Deposit Insurance Corporation conservator for such bank. The Federal Deposit Insurance Corporation, as such conservator, shall have all the powers granted under the Fed- eral Deposit Insurance Act [12 U.S.C. 1811 et seq.], and (when not inconsistent therewith) any other rights, powers, and privileges possessed by conservators of banks under this Act and any other provision of law. The Comptroller may also appoint another person as conservator, who shall be subject to the provisions of this Act. (e) Replacement of conservator The Comptroller may, without notice or hear- ing, replace a conservator with another conser- vator. Such replacement shall not affect the bank’s right under subsection (b) to obtain judi- cial review of the Comptroller’s original deci- sion to appoint a conservator. (Mar. 9, 1933, ch. 1, title II, § 203, 48 Stat. 2; Pub. L. 101–73, title VIII, § 802, Aug. 9, 1989, 103 Stat. 442; Pub. L. 102–242, title I, § 133(c), Dec. 19, 1991, 105 Stat. 2271.) Editorial Notes REFERENCES IN TEXT The Federal Deposit Insurance Act, referred to in subsec. (d), 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. This Act, referred to in subsec. (d), is act Mar. 9, 1933, ch. 1, 48 Stat. 1, popularly known as the Emergency Banking and Bank Conservation Act, which is classi- fied to sections 51a, 51b, 51c, 51d, 95, 201 to 212, 248, 347b, 347c, 347d, 445 of this title and to section 4305 of Title 50, War and National Defense, and classified as a note under section 4305 of Title 50. Section 51d of this title was repealed by act June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208. For effect of the repeal on outstanding debentures held by banks, see References in Text note set out under section 51b–1 of this title. AMENDMENTS 1991—Subsec. (a). Pub. L. 102–242 amended subsec. (a) generally, substituting present provisions for provi- sions which specified circumstances under which Comp- troller could appoint conservator. 1989—Pub. L. 101–73 amended section generally, changing structure of section from a single unlettered paragraph to one consisting of subsections (a) to (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1991 AMENDMENT Amendment by Pub. L. 102–242 effective 1 year after Dec. 19, 1991, see section 133(g) of Pub. L. 102–242, set out as a note under section 191 of this title. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. CONSERVATORS OF STATE BANKS Ex. Ord. No. 6080, Mar. 18, 1933, provided for appoint- ment of conservators of State banks under certain reg- ulations. § 204. Examinations The Comptroller of the Currency (in consulta- tion with the Board of Directors of the Federal Deposit Insurance Corporation when the Cor- poration is appointed conservator) is authorized to examine and supervise the bank in con- servatorship as long as the bank continues to operate as a going concern. The Comptroller may use reports and other information provided by the Federal Deposit Insurance Corporation for this purpose. (Mar. 9, 1933, ch. 1, title II, § 204, 48 Stat. 3; Pub. L. 101–73, title VIII, § 803, Aug. 9, 1989, 103 Stat. 443.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘The Comp-