12 U.S.C. § 1821 — Insurance Funds

Page 1040 TITLE 12—BANKS AND BANKING § 1821 (6) Registered investment company The term ‘‘registered investment company’’ means an investment company that is reg- istered with the Commission under the Invest- ment Company Act of 1940 [15 U.S.C. 80a–1 et seq.]. (7) Savings and loan holding company The term ‘‘savings and loan holding com- pany’’ has the meaning given the term in sec- tion 1467a(a)(1)(D) of this title. (Pub. L. 106–102, title I, § 115, Nov. 12, 1999, 113 Stat. 1371.) Editorial Notes REFERENCES IN TEXT The Investment Company Act of 1940, referred to in subsec. (d)(6), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a–51 of Title 15 and Tables. CODIFICATION Section was enacted as part of the Gramm-Leach-Bli- ley Act, and not as part of the Federal Deposit Insur- ance Act which comprises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days after Nov. 12, 1999, see sec- tion 161 of Pub. L. 106–102, set out as an Effective Date of 1999 Amendment note under section 24 of this title. § 1821. Insurance Funds (a) Deposit insurance (1) Insured amounts payable (A) In general The Corporation shall insure the deposits of all insured depository institutions as pro- vided in this chapter. (B) Net amount of insured deposit The net amount due to any depositor at an insured depository institution shall not ex- ceed the standard maximum deposit insur- ance 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 subpara- graph (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 para- graph (1) or (2) of section 1817(i) of this title or any funds described in section 1817(i)(3) of this title. (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 capital- ized 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 capitalized’’ and ‘‘ade- quately capitalized’’ have the same meanings as in section 1831o of this title. (II) Employee benefit plan The term ‘‘employee benefit plan’’ has the same meaning as in paragraph (5)(B)(ii), and includes any eligible de- ferred compensation plan described in section 457 of title 26. (III) Pass-through deposit insurance The term ‘‘pass-through deposit insur- ance’’ means, with respect to an em- ployee benefit plan, deposit insurance coverage based on the interest of each participant, in accordance with regula- tions issued by the Corporation. (E) Standard maximum deposit insurance amount defined For purposes of this chapter, the term ‘‘standard maximum deposit insurance amount’’ means $250,000, adjusted as pro- vided under subparagraph (F) after March 31, 2010. Notwithstanding any other provision of law, the increase in the standard maximum deposit insurance amount to $250,000 shall apply to depositors in any institution for which the Corporation was appointed as re- ceiver or conservator on or after January 1, 2008, and before October 3, 2008. The Corpora- tion shall take such actions as are necessary to carry out the requirements of this section with respect to such depositors, without re- gard to any time limitations under this chapter. In implementing this and the pre- ceding 2 sentences, any payment on a de- posit claim made by the Corporation as re- ceiver or conservator to a depositor above the standard maximum deposit insurance amount in effect at the time of the appoint- ment of the Corporation as receiver or con- servator shall be deemed to be part of the net amount due to the depositor under sub- paragraph (B). (F) Inflation adjustment (i) In general By April 1 of 2010, and the 1st day of each subsequent 5-year period, the Board of Di- rectors and the National Credit Union Ad- ministration Board shall jointly consider the factors set forth under clause (v), and, upon determining that an inflation adjust- ment is appropriate, shall jointly prescribe the amount by which the standard max- imum deposit insurance amount and the standard maximum share insurance amount (as defined in section 1787(k) of Page 1041 TITLE 12—BANKS AND BANKING § 1821 this title) applicable to any depositor at an insured depository institution shall be increased by calculating the product of— (I) $100,000; and (II) the ratio of the published annual value of the Personal Consumption Ex- penditures Chain-Type Price Index (or any successor index thereto), published by the Department of Commerce, for the calendar year preceding the year in which the adjustment is calculated under this clause, to the published an- nual value of such index for the calendar year preceding April 1, 2006. The values used in the calculation under subclause (II) shall be, as of the date of the calculation, the values most recently pub- lished by the Department of Commerce. (ii) Rounding If the amount determined under clause (ii) for any period is not a multiple of $10,000, the amount so determined shall be rounded down to the nearest $10,000. (iii) Publication and report to the Congress Not later than April 5 of any calendar year in which an adjustment is required to be calculated under clause (i) to the stand- ard maximum deposit insurance amount and the standard maximum share insur- ance amount under such clause, the Board of Directors and the National Credit Union Administration Board shall— (I) publish in the Federal Register the standard maximum deposit insurance amount, the standard maximum share insurance amount, and the amount of coverage under paragraph (3)(A) and sec- tion 1787(k)(3) of this title, as so cal- culated; and (II) jointly submit a report to the Con- gress containing the amounts described in subclause (I). (iv) 6-month implementation period Unless an Act of Congress enacted before July 1 of the calendar year in which an ad- justment is required to be calculated under clause (i) provides otherwise, the in- crease in the standard maximum deposit insurance amount and the standard max- imum share insurance amount shall take effect on January 1 of the year imme- diately succeeding such calendar year. (v) Inflation adjustment consideration In making any determination under clause (i) to increase the standard max- imum deposit insurance amount and the standard maximum share insurance amount, the Board of Directors and the National Credit Union Administration Board shall jointly consider— (I) the overall state of the Deposit In- surance Fund and the economic condi- tions affecting insured depository insti- tutions; (II) potential problems affecting in- sured depository institutions; or (III) whether the increase will cause the reserve ratio of the fund to fall below 1.15 percent of estimated insured depos- its. (2) Government depositors (A) In general Notwithstanding any limitation in this chapter or in any other provision of law re- lating to the amount of deposit insurance available to any 1 depositor— (i) a government depositor shall, for the purpose of determining the amount of in- sured deposits under this subsection, be deemed to be a depositor separate and dis- tinct from any other officer, employee, or agent of the United States or any public unit referred to in subparagraph (B); and (ii) except as provided in subparagraph (C), the deposits of a government depositor shall be insured in an amount equal to the standard maximum deposit insurance amount (as determined under paragraph (1)). (B) Government depositor In this paragraph, the term ‘‘government depositor’’ means a depositor that is— (i) an officer, employee, or agent of the United States having official custody of public funds and lawfully investing or de- positing the same in time and savings de- posits in an insured depository institution; (ii) an officer, employee, or agent of any State of the United States, or of any coun- ty, municipality, or political subdivision thereof having official custody of public funds and lawfully investing or depositing the same in time and savings deposits in an insured depository institution in such State; (iii) an officer, employee, or agent of the District of Columbia having official cus- tody of public funds and lawfully investing or depositing the same in time and savings deposits in an insured depository institu- tion in the District of Columbia; (iv) an officer, employee, or agent of the Commonwealth of Puerto Rico, of the Vir- gin Islands, of American Samoa, of the Trust Territory of the Pacific Islands, or of Guam, or of any county, municipality, or political subdivision thereof having offi- cial custody of public funds and lawfully investing or depositing the same in time and savings deposits in an insured deposi- tory institution in the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, or Guam, respectively; or (v) an officer, employee, or agent of any Indian tribe (as defined in section 1452(c) of title 25) or agency thereof having official custody of tribal funds and lawfully invest- ing or depositing the same in time and savings deposits in an insured depository institution. (C) Authority to limit deposits The Corporation may limit the aggregate amount of funds that may be invested or de- posited in deposits in any insured depository institution by any government depositor on Page 1042 TITLE 12—BANKS AND BANKING § 1821 1 So in original. Probably should be ‘‘depository institution’’. the basis of the size of any such bank 1 in terms of its assets: Provided, however, such limitation may be exceeded by the pledging of acceptable securities to the government depositor when and where required. (3) Certain retirement accounts (A) In general Notwithstanding any limitation in this chapter relating to the amount of deposit in- surance available for the account of any 1 depositor, deposits in an insured depository institution made in connection with— (i) any individual retirement account de- scribed in section 408(a) of title 26; (ii) subject to the exception contained in paragraph (1)(D)(ii), any eligible deferred compensation plan described in section 457 of title 26; and (iii) any individual account plan defined in section 1002(34) of title 29, and any plan described in section 401(d) of title 26, to the extent that participants and bene- ficiaries under such plan have the right to direct the investment of assets held in in- dividual accounts maintained on their be- half by the plan, shall be aggregated and insured in an amount not to exceed $250,000 (which amount shall be subject to inflation adjustments as provided in paragraph (1)(F), except that $250,000 shall be substituted for $100,000 wherever such term appears in such para- graph) per participant per insured deposi- tory institution. (B) Amounts taken into account For purposes of subparagraph (A), the amount aggregated for insurance coverage under this paragraph shall consist of the present vested and ascertainable interest of each participant under the plan, excluding any remainder interest created by, or as a result of, the plan. (4) Deposit Insurance Fund (A) Establishment There is established the Deposit Insurance Fund, which the Corporation shall— (i) maintain and administer; (ii) use to carry out its insurance pur- poses, in the manner provided by this sub- section; and (iii) invest in accordance with section 1823(a) of this title. (B) Uses The Deposit Insurance Fund shall be avail- able to the Corporation for use with respect to insured depository institutions the depos- its of which are insured by the Deposit In- surance Fund. (C) Limitation on use Notwithstanding any provision of law other than section 1823(c)(4)(G) of this title, the Deposit Insurance Fund shall not be used in any manner to benefit any shareholder or affiliate (other than an insured depository institution that receives assistance in ac- cordance with the provisions of this chapter) of— (i) any insured depository institution for which the Corporation has been appointed conservator or receiver, in connection with any type of resolution by the Cor- poration; (ii) any other insured depository institu- tion in default or in danger of default, in connection with any type of resolution by the Corporation; or (iii) any insured depository institution, in connection with the provision of assist- ance under this section or section 1823 of this title with respect to such institution, except that this clause shall not prohibit any assistance to any insured depository institution that is not in default, or that is not in danger of default, that is acquiring (as defined in section 1823(f)(8)(B) of this title) another insured depository institu- tion. (D) Deposits All amounts assessed against insured de- pository institutions by the Corporation shall be deposited into the Deposit Insurance Fund. (5) Certain investment contracts not treated as insured deposits (A) In general A liability of an insured depository insti- tution shall not be treated as an insured de- posit if the liability arises under any insured depository institution investment contract between any insured depository institution and any employee benefit plan which ex- pressly permits benefit-responsive with- drawals or transfers. (B) Definitions For purposes of subparagraph (A)— (i) Benefit-responsive withdrawals or transfers The term ‘‘benefit-responsive with- drawals or transfers’’ means any with- drawal or transfer of funds (consisting of any portion of the principal and any inter- est credited at a rate guaranteed by the in- sured depository institution investment contract) during the period in which any guaranteed rate is in effect, without sub- stantial penalty or adjustment, to pay benefits provided by the employee benefit plan or to permit a plan participant or beneficiary to redirect the investment of his or her account balance. (ii) Employee benefit plan The term ‘‘employee benefit plan’’— (I) has the meaning given to such term in section 1002(3) of title 29; and (II) includes any plan described in sec- tion 401(d) of title 26. (b) Liquidation as closing of depository institu- tion For the purposes of this chapter an insured de- pository institution shall be deemed to have been closed on account of inability to meet the Page 1043 TITLE 12—BANKS AND BANKING § 1821 demands of its depositors in any case in which it has been closed for the purpose of liquidation without adequate provision being made for pay- ment of its depositors. (c) Appointment of Corporation as conservator or receiver (1) In general Notwithstanding any other provision of Fed- eral law, the law of any State, or the constitu- tion of any State, the Corporation may accept appointment and act as conservator or re- ceiver for any insured depository institution upon appointment in the manner provided in paragraph (2) or (3). (2) Federal depository institutions (A) Appointment (i) Conservator The Corporation may, at the discretion of the supervisory authority, be appointed conservator of any insured Federal deposi- tory institution and the Corporation may accept such appointment. (ii) Receiver The Corporation shall be appointed re- ceiver, and shall accept such appointment, whenever a receiver is appointed for the purpose of liquidation or winding up the affairs of an insured Federal depository in- stitution by the appropriate Federal bank- ing agency, notwithstanding any other provision of Federal law. (B) Additional powers In addition to and not in derogation of the powers conferred and the duties imposed by this section on the Corporation as conser- vator or receiver, the Corporation, to the ex- tent not inconsistent with such powers and duties, shall have any other power conferred on or any duty (which is related to the exer- cise of such power) imposed on a conservator or receiver for any Federal depository insti- tution under any other provision of law. (C) Corporation not subject to any other agency When acting as conservator or receiver pursuant to an appointment described in subparagraph (A), the Corporation shall not be subject to the direction or supervision of any other agency or department of the United States or any State in the exercise of the Corporation’s rights, powers, and privi- leges. (D) Depository institution in conservatorship subject to banking agency supervision Notwithstanding subparagraph (C), any Federal depository institution for which the Corporation has been appointed conservator shall remain subject to the supervision of the appropriate Federal banking agency. (3) Insured State depository institutions (A) Appointment by appropriate State super- visor Whenever the authority having super- vision of any insured State depository insti- tution appoints a conservator or receiver for such institution and tenders appointment to the Corporation, the Corporation may ac- cept such appointment. (B) Additional powers In addition to the powers conferred and the duties related to the exercise of such powers imposed by State law on any conser- vator or receiver appointed under the law of such State for an insured State depository institution, the Corporation, as conservator or receiver pursuant to an appointment de- scribed in subparagraph (A), shall have the powers conferred and the duties imposed by this section on the Corporation as conser- vator or receiver. (C) Corporation not subject to any other agency When acting as conservator or receiver pursuant to an appointment described in subparagraph (A), the Corporation shall not be subject to the direction or supervision of any other agency or department of the United States or any State in the exercise of its rights, powers, and privileges. (D) Depository institution in conservatorship subject to banking agency supervision Notwithstanding subparagraph (C), any in- sured State depository institution for which the Corporation has been appointed conser- vator shall remain subject to the supervision of the appropriate State bank or savings as- sociation supervisor. (4) Appointment of Corporation by the Cor- poration Notwithstanding any other provision of Fed- eral law, the law of any State, or the constitu- tion of any State, the Corporation may ap- point itself as sole conservator or receiver of any insured State depository institution if— (A) the Corporation determines— (i) that— (I) a conservator, receiver, or other legal custodian has been appointed for such institution; (II) such institution has been subject to the appointment of any such conser- vator, receiver, or custodian for a period of at least 15 consecutive days; and (III) 1 or more of the depositors in such institution is unable to withdraw any amount of any insured deposit; or (ii) that such institution has been closed by or under the laws of any State; and (B) the Corporation determines that 1 or more of the grounds specified in paragraph (5)— (i) existed with respect to such institu- tion at the time— (I) the conservator, receiver, or other legal custodian was appointed; or (II) such institution was closed; or (ii) exist at any time— (I) during the appointment of the con- servator, receiver, or other legal custo- dian; or (II) while such institution is closed. Page 1044 TITLE 12—BANKS AND BANKING § 1821 (5) Grounds for appointing conservator or re- ceiver The grounds for appointing a conservator or receiver (which may be the Corporation) for any insured depository institution are as fol- lows: (A) ASSETS INSUFFICIENT FOR OBLIGA- TIONS.—The institution’s assets are less than the institution’s obligations to its creditors and others, including members of the insti- tution. (B) SUBSTANTIAL DISSIPATION.—Substantial dissipation of assets or earnings due to— (i) any violation of any statute or regu- lation; or (ii) any unsafe or unsound practice. (C) UNSAFE OR UNSOUND CONDITION.—An un- safe or unsound condition to transact busi- ness. (D) CEASE AND DESIST ORDERS.—Any willful violation of a cease-and-desist order which has become final. (E) CONCEALMENT.—Any concealment of the institution’s books, papers, records, or assets, or any refusal to submit the institu- tion’s books, papers, records, or affairs for inspection to any examiner or to any lawful agent of the appropriate Federal banking agency or State bank or savings association supervisor. (F) INABILITY TO MEET OBLIGATIONS.—The institution is likely to be unable to pay its obligations or meet its depositors’ demands in the normal course of business. (G) LOSSES.—The institution has incurred or is likely to incur losses that will deplete all or substantially all of its capital, and there is no reasonable prospect for the insti- tution to become adequately capitalized (as defined in section 1831o(b) of this title) with- out Federal assistance. (H) VIOLATIONS OF LAW.—Any violation of any law or regulation, or any unsafe or un- sound practice or condition that is likely to— (i) cause insolvency or substantial dis- sipation of assets or earnings; (ii) weaken the institution’s condition; or (iii) otherwise seriously prejudice the in- terests of the institution’s depositors or the Deposit Insurance Fund. (I) CONSENT.—The institution, by resolu- tion of its board of directors or its share- holders or members, consents to the ap- pointment. (J) CESSATION OF INSURED STATUS.—The in- stitution ceases to be an insured institution. (K) UNDERCAPITALIZATION.—The institu- tion is undercapitalized (as defined in sec- tion 1831o(b) of this title), and— (i) has no reasonable prospect of becom- ing adequately capitalized (as defined in that section); (ii) fails to become adequately capital- ized when required to do so under section 1831o(f)(2)(A) of this title; (iii) fails to submit a capital restoration plan acceptable to that agency within the time prescribed under section 1831o(e)(2)(D) of this title; or (iv) materially fails to implement a cap- ital restoration plan submitted and ac- cepted under section 1831o(e)(2) of this title. (L) The institution— (i) is critically undercapitalized, as de- fined in section 1831o(b) of this title; or (ii) otherwise has substantially insuffi- cient capital. (M) MONEY LAUNDERING OFFENSE.—The At- torney General notifies the appropriate Fed- eral banking agency or the Corporation in writing that the insured depository institu- tion has been found guilty of a criminal of- fense under section 1956 or 1957 of title 18 or section 5322 or 5324 of title 31. (6) Appointment by Comptroller of the Cur- rency (A) Conservator The Corporation may, at the discretion of the Comptroller of the Currency, be ap- pointed conservator and the Corporation may accept any such appointment. (B) Receiver The Corporation may, at the discretion of the Comptroller of the Currency, be ap- pointed receiver and the Corporation may accept any such appointment. (7) Judicial review If the Corporation is appointed (including the appointment of the Corporation as re- ceiver by the Board of Directors) as conser- vator or receiver of a depository institution under paragraph (4), (9), or (10), the depository institution may, not later than 30 days there- after, bring an action in the United States dis- trict court for the judicial district in which the home office of such depository institution is located, or in the United States District Court for the District of Columbia, for an order requiring the Corporation to be removed as the conservator or receiver (regardless of how such appointment was made), and the court shall, upon the merits, dismiss such ac- tion or direct the Corporation to be removed as the conservator or receiver. (8) Replacement of conservator of State deposi- tory institution (A) In general In the case of any insured State depository institution for which the Corporation ap- pointed itself as conservator pursuant to paragraph (4), the Corporation may, without any requirement of notice, hearing, or other action, replace itself as conservator with itself as receiver of such institution. (B) Replacement treated as removal of in- cumbent The replacement of a conservator with a receiver under subparagraph (A) shall be treated as the removal of the Corporation as conservator. (C) Right of review of original appointment not affected The replacement of a conservator with a receiver under subparagraph (A) shall not af- Page 1045 TITLE 12—BANKS AND BANKING § 1821 fect any right of the insured State deposi- tory institution to obtain review, pursuant to paragraph (7), of the original appointment of the conservator. (9) Appropriate Federal banking agency may appoint Corporation as conservator or re- ceiver for insured State depository institu- tion to carry out section 1831o (A) In general The appropriate Federal banking agency may appoint the Corporation as sole receiver (or, subject to paragraph (11), sole conser- vator) of any insured State depository insti- tution, after consultation with the appro- priate State supervisor, if the appropriate Federal banking agency determines that— (i) 1 or more of the grounds specified in subparagraphs (K) and (L) of paragraph (5) exist with respect to that institution; and (ii) the appointment is necessary to carry out the purpose of section 1831o of this title. (B) Nondelegation The appropriate Federal banking agency shall not delegate any action under subpara- graph (A). (10) Corporation may appoint itself as conser- vator or receiver for insured depository in- stitution to prevent loss to Deposit Insur- ance Fund The Board of Directors may appoint the Cor- poration as sole conservator or receiver of an insured depository institution, after consulta- tion with the appropriate Federal banking agency and the appropriate State supervisor (if any), if the Board of Directors determines that— (A) 1 or more of the grounds specified in any subparagraph of paragraph (5) exist with respect to the institution; and (B) the appointment is necessary to re- duce— (i) the risk that the Deposit Insurance Fund would incur a loss with respect to the insured depository institution, or (ii) any loss that the Deposit Insurance Fund is expected to incur with respect to that institution. (11) Appropriate Federal banking agency shall not appoint conservator under certain pro- visions without giving Corporation oppor- tunity to appoint receiver The appropriate Federal banking agency shall not appoint a conservator for an insured depository institution under subparagraph (K) or (L) of paragraph (5) without the Corpora- tion’s consent unless the agency has given the Corporation 48 hours notice of the agency’s in- tention to appoint the conservator and the grounds for the appointment. (12) Directors not liable for acquiescing in ap- pointment of conservator or receiver The members of the board of directors of an insured depository institution shall not be lia- ble to the institution’s shareholders or credi- tors for acquiescing in or consenting in good faith to— (A) the appointment of the Corporation as conservator or receiver for that institution; or (B) an acquisition or combination under section 1831o(f)(2)(A)(iii) of this title. (13) Additional powers In any case in which the Corporation is ap- pointed conservator or receiver under para- graph (4), (6), (9), or (10) for any insured State depository institution— (A) this section shall apply to the Corpora- tion as conservator or receiver in the same manner and to the same extent as if that in- stitution were a Federal depository institu- tion for which the Corporation had been ap- pointed conservator or receiver; and (B) the Corporation as receiver of the in- stitution may— (i) liquidate the institution in an orderly manner; and (ii) make any other disposition of any matter concerning the institution, as the Corporation determines is in the best in- terests of the institution, the depositors of the institution, and the Corporation. (d) Powers and duties of Corporation as conser- vator or receiver (1) Rulemaking authority of Corporation The Corporation may prescribe such regula- tions as the Corporation determines to be ap- propriate regarding the conduct of conservatorships or receiverships. (2) General powers (A) Successor to institution The Corporation shall, as conservator or receiver, and by operation of law, succeed to— (i) all rights, titles, powers, and privi- leges of the insured depository institution, and of any stockholder, member, accountholder, depositor, officer, or direc- tor of such institution with respect to the institution and the assets of the institu- tion; and (ii) title to the books, records, and assets of any previous conservator or other legal custodian of such institution. (B) Operate the institution The Corporation may (subject to the provi- sions of section 1831q of this title), as conser- vator or receiver— (i) take over the assets of and operate the insured depository institution with all the powers of the members or share- holders, the directors, and the officers of the institution and conduct all business of the institution; (ii) collect all obligations and money due the institution; (iii) perform all functions of the institu- tion in the name of the institution which are consistent with the appointment as conservator or receiver; and (iv) preserve and conserve the assets and property of such institution. (C) Functions of institution’s officers, direc- tors, and shareholders The Corporation may, by regulation or order, provide for the exercise of any func- Page 1046 TITLE 12—BANKS AND BANKING § 1821 2 See References in Text note below. tion by any member or stockholder, direc- tor, or officer of any insured depository in- stitution for which the Corporation has been appointed conservator or receiver. (D) Powers as conservator The Corporation may, as conservator, take such action as may be— (i) necessary to put the insured deposi- tory institution in a sound and solvent condition; and (ii) appropriate to carry on the business of the institution and preserve and con- serve the assets and property of the insti- tution. (E) Additional powers as receiver The Corporation may (subject to the provi- sions of section 1831q of this title), as re- ceiver, place the insured depository institu- tion in liquidation and proceed to realize upon the assets of the institution, having due regard to the conditions of credit in the locality. (F) Organization of new institutions The Corporation may, as receiver, with re- spect to any insured depository institution, organize a new depository institution under subsection (m) or a bridge depository insti- tution under subsection (n). (G) Merger; transfer of assets and liabilities (i) In general The Corporation may, as conservator or receiver— (I) merge the insured depository insti- tution with another insured depository institution; or (II) subject to clause (ii), transfer any asset or liability of the institution in de- fault (including assets and liabilities as- sociated with any trust business) with- out any approval, assignment, or consent with respect to such transfer. (ii) Approval by appropriate Federal bank- ing agency No transfer described in clause (i)(II) may be made to another depository insti- tution (other than a new depository insti- tution or a bridge depository institution established pursuant to subsection (m) or (n)) without the approval of the appro- priate Federal banking agency for such in- stitution. (H) Payment of valid obligations The Corporation, as conservator or re- ceiver, shall pay all valid obligations of the insured depository institution in accordance with the prescriptions and limitations of this chapter. (I) Subpoena authority (i) In general The Corporation may, as conservator, re- ceiver, or exclusive manager and for pur- poses of carrying out any power, author- ity, or duty with respect to an insured de- pository institution (including deter- mining any claim against the institution and determining and realizing upon any asset of any person in the course of col- lecting money due the institution), exer- cise any power established under section 1818(n) of this title, and the provisions of such section shall apply with respect to the exercise of any such power under this subparagraph in the same manner as such provisions apply under such section. (ii) Authority of Board of Directors A subpoena or subpoena duces tecum may be issued under clause (i) only by, or with the written approval of, the Board of Directors or their designees (or, in the case of a subpoena or subpoena duces tecum issued by the Resolution Trust Corpora- tion under this subparagraph and section 1441a(b)(4) 2 of this title, only by, or with the written approval of, the Board of Di- rectors of such Corporation or their des- ignees). (iii) Rule of construction This subsection shall not be construed as limiting any rights that the Corporation, in any capacity, might otherwise have under section 1820(c) of this title. (J) Incidental powers The Corporation may, as conservator or receiver— (i) exercise all powers and authorities specifically granted to conservators or re- ceivers, respectively, under this chapter and such incidental powers as shall be nec- essary to carry out such powers; and (ii) take any action authorized by this chapter, which the Corporation determines is in the best interests of the depository institution, its depositors, or the Corporation. (K) Utilization of private sector In carrying out its responsibilities in the management and disposition of assets from insured depository institutions, as conser- vator, receiver, or in its corporate capacity, the Corporation shall utilize the services of private persons, including real estate and loan portfolio asset management, property management, auction marketing, legal, and brokerage services, only if such services are available in the private sector and the Cor- poration determines utilization of such serv- ices is the most practicable, efficient, and cost effective. (3) Authority of receiver to determine claims (A) In general The Corporation may, as receiver, deter- mine claims in accordance with the require- ments of this subsection and regulations prescribed under paragraph (4). (B) Notice requirements The receiver, in any case involving the liq- uidation or winding up of the affairs of a closed depository institution, shall— (i) promptly publish a notice to the de- pository institution’s creditors to present Page 1047 TITLE 12—BANKS AND BANKING § 1821 their claims, together with proof, to the receiver by a date specified in the notice which shall be not less than 90 days after the publication of such notice; and (ii) republish such notice approximately 1 month and 2 months, respectively, after the publication under clause (i). (C) Mailing required The receiver shall mail a notice similar to the notice published under subparagraph (B)(i) at the time of such publication to any creditor shown on the institution’s books— (i) at the creditor’s last address appear- ing in such books; or (ii) upon discovery of the name and ad- dress of a claimant not appearing on the institution’s books within 30 days after the discovery of such name and address. (4) Rulemaking authority relating to deter- mination of claims (A) In general The Corporation may prescribe regulations regarding the allowance or disallowance of claims by the receiver and providing for ad- ministrative determination of claims and re- view of such determination. (B) Final settlement payment procedure (i) In general In the handling of receiverships of in- sured depository institutions, to maintain essential liquidity and to prevent financial disruption, the Corporation may, after the declaration of an institution’s insolvency, settle all uninsured and unsecured claims on the receivership with a final settlement payment which shall constitute full pay- ment and disposition of the Corporation’s obligations to such claimants. (ii) Final settlement payment For purposes of clause (i), a final settle- ment payment shall be payment of an amount equal to the product of the final settlement payment rate and the amount of the uninsured and unsecured claim on the receivership; and (iii) Final settlement payment rate For purposes of clause (ii), the final set- tlement payment rate shall be a percent- age rate reflecting an average of the Cor- poration’s receivership recovery experi- ence, determined by the Corporation in such a way that over such time period as the Corporation may deem appropriate, the Corporation in total will receive no more or less than it would have received in total as a general creditor standing in the place of insured depositors in each specific receivership. (iv) Corporation authority The Corporation may undertake such su- pervisory actions and promulgate such regulations as may be necessary to assure that the requirements of this section can be implemented with respect to each in- sured depository institution in the event of its insolvency. (5) Procedures for determination of claims (A) Determination period (i) In general Before the end of the 180-day period be- ginning on the date any claim against a depository institution is filed with the Corporation as receiver, the Corporation shall determine whether to allow or dis- allow the claim and shall notify the claim- ant of any determination with respect to such claim. (ii) Extension of time The period described in clause (i) may be extended by a written agreement between the claimant and the Corporation. (iii) Mailing of notice sufficient The requirements of clause (i) shall be deemed to be satisfied if the notice of any determination with respect to any claim is mailed to the last address of the claimant which appears— (I) on the depository institution’s books; (II) in the claim filed by the claimant; or (III) in documents submitted in proof of the claim. (iv) Contents of notice of disallowance If any claim filed under clause (i) is dis- allowed, the notice to the claimant shall contain— (I) a statement of each reason for the disallowance; and (II) the procedures available for ob- taining agency review of the determina- tion to disallow the claim or judicial de- termination of the claim. (B) Allowance of proven claims The receiver shall allow any claim re- ceived on or before the date specified in the notice published under paragraph (3)(B)(i) by the receiver from any claimant which is proved to the satisfaction of the receiver. (C) Disallowance of claims filed after end of filing period (i) In general Except as provided in clause (ii), claims filed after the date specified in the notice published under paragraph (3)(B)(i) shall be disallowed and such disallowance shall be final. (ii) Certain exceptions Clause (i) shall not apply with respect to any claim filed by any claimant after the date specified in the notice published under paragraph (3)(B)(i) and such claim may be considered by the receiver if— (I) the claimant did not receive notice of the appointment of the receiver in time to file such claim before such date; and (II) such claim is filed in time to per- mit payment of such claim. (D) Authority to disallow claims (i) In general The receiver may disallow any portion of any claim by a creditor or claim of secu- Page 1048 TITLE 12—BANKS AND BANKING § 1821 rity, preference, or priority which is not proved to the satisfaction of the receiver. (ii) Payments to less than fully secured creditors In the case of a claim of a creditor against an insured depository institution which is secured by any property or other asset of such institution, any receiver ap- pointed for any insured depository institu- tion— (I) may treat the portion of such claim which exceeds an amount equal to the fair market value of such property or other asset as an unsecured claim against the institution; and (II) may not make any payment with respect to such unsecured portion of the claim other than in connection with the disposition of all claims of unsecured creditors of the institution. (iii) Exceptions No provision of this paragraph shall apply with respect to— (I) any extension of credit from any Federal home loan bank or Federal Re- serve bank to any insured depository in- stitution; or (II) any security interest in the assets of the institution securing any such ex- tension of credit. (E) No judicial review of determination pur- suant to subparagraph (D) No court may review the Corporation’s de- termination pursuant to subparagraph (D) to disallow a claim. (F) Legal effect of filing (i) Statute of limitation tolled For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action. (ii) No prejudice to other actions Subject to paragraph (12), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the appoint- ment of the receiver. (6) Provision for agency review or judicial de- termination of claims (A) In general Before the end of the 60-day period begin- ning on the earlier of— (i) the end of the period described in paragraph (5)(A)(i) with respect to any claim against a depository institution for which the Corporation is receiver; or (ii) the date of any notice of disallow- ance of such claim pursuant to paragraph (5)(A)(i), the claimant may request administrative re- view of the claim in accordance with sub- paragraph (A) or (B) of paragraph (7) or file suit on such claim (or continue an action commenced before the appointment of the receiver) in the district or territorial court of the United States for the district within which the depository institution’s principal place of business is located or the United States District Court for the District of Co- lumbia (and such court shall have jurisdic- tion to hear such claim). (B) Statute of limitations If any claimant fails to— (i) request administrative review of any claim in accordance with subparagraph (A) or (B) of paragraph (7); or (ii) file suit on such claim (or continue an action commenced before the appoint- ment of the receiver), before the end of the 60-day period described in subparagraph (A), the claim shall be deemed to be disallowed (other than any por- tion of such claim which was allowed by the receiver) as of the end of such period, such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim. (7) Review of claims (A) Administrative hearing If any claimant requests review under this subparagraph in lieu of filing or continuing any action under paragraph (6) and the Cor- poration agrees to such request, the Cor- poration shall consider the claim after op- portunity for a hearing on the record. The final determination of the Corporation with respect to such claim shall be subject to ju- dicial review under chapter 7 of title 5. (B) Other review procedures (i) In general The Corporation shall also establish such alternative dispute resolution processes as may be appropriate for the resolution of claims filed under paragraph (5)(A)(i). (ii) Criteria In establishing alternative dispute reso- lution processes, the Corporation shall strive for procedures which are expedi- tious, fair, independent, and low cost. (iii) Voluntary binding or nonbinding pro- cedures The Corporation may establish both binding and nonbinding processes, which may be conducted by any government or private party, but all parties, including the claimant and the Corporation, must agree to the use of the process in a par- ticular case. (iv) Consideration of incentives The Corporation shall seek to develop in- centives for claimants to participate in the alternative dispute resolution process. (8) Expedited determination of claims (A) Establishment required The Corporation shall establish a proce- dure for expedited relief outside of the rou- tine claims process established under para- graph (5) for claimants who— (i) allege the existence of legally valid and enforceable or perfected security in- terests in assets of any depository institu- Page 1049 TITLE 12—BANKS AND BANKING § 1821 tion for which the Corporation has been appointed receiver; and (ii) allege that irreparable injury will occur if the routine claims procedure is followed. (B) Determination period Before the end of the 90-day period begin- ning on the date any claim is filed in accord- ance with the procedures established pursu- ant to subparagraph (A), the Corporation shall— (i) determine— (I) whether to allow or disallow such claim; or (II) whether such claim should be de- termined pursuant to the procedures es- tablished pursuant to paragraph (5); and (ii) notify the claimant of the determina- tion, and if the claim is disallowed, pro- vide a statement of each reason for the disallowance and the procedure for obtain- ing agency review or judicial determina- tion. (C) Period for filing or renewing suit Any claimant who files a request for expe- dited relief shall be permitted to file a suit, or to continue a suit filed before the ap- pointment of the receiver, seeking a deter- mination of the claimant’s rights with re- spect to such security interest after the ear- lier of— (i) the end of the 90-day period beginning on the date of the filing of a request for ex- pedited relief; or (ii) the date the Corporation denies the claim. (D) Statute of limitations If an action described in subparagraph (C) is not filed, or the motion to renew a pre- viously filed suit is not made, before the end of the 30-day period beginning on the date on which such action or motion may be filed in accordance with subparagraph (B), the claim shall be deemed to be disallowed as of the end of such period (other than any portion of such claim which was allowed by the re- ceiver), such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim. (E) Legal effect of filing (i) Statute of limitation tolled For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action. (ii) No prejudice to other actions Subject to paragraph (12), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the appoint- ment of the receiver. (9) Agreement as basis of claim (A) Requirements Except as provided in subparagraph (B), any agreement which does not meet the re- quirements set forth in section 1823(e) of this title shall not form the basis of, or substan- tially comprise, a claim against the receiver or the Corporation. (B) Exception to contemporaneous execution requirement Notwithstanding section 1823(e)(2) 2 of this title, any agreement relating to an exten- sion of credit between a Federal home loan bank or Federal Reserve bank and any in- sured depository institution which was exe- cuted before the extension of credit by such bank to such institution shall be treated as having been executed contemporaneously with such extension of credit for purposes of subparagraph (A). (10) Payment of claims (A) In general The receiver may, in the receiver’s discre- tion and to the extent funds are available, pay creditor claims which are allowed by the receiver, approved by the Corporation pursu- ant to a final determination pursuant to paragraph (7) or (8), or determined by the final judgment of any court of competent ju- risdiction in such manner and amounts as are authorized under this chapter. (B) Payment of dividends on claims The receiver may, in the receiver’s sole discretion, pay dividends on proved claims at any time, and no liability shall attach to the Corporation (in such Corporation’s cor- porate capacity or as receiver), by reason of any such payment, for failure to pay divi- dends to a claimant whose claim is not proved at the time of any such payment. (C) Rulemaking authority of Corporation The Corporation may prescribe such rules, including definitions of terms, as it deems appropriate to establish a single uniform in- terest rate for or to make payments of post insolvency interest to creditors holding proven claims against the receivership es- tates of insured Federal or State depository institutions following satisfaction by the re- ceiver of the principal amount of all creditor claims. (11) Depositor preference (A) In general Subject to section 1815(e)(2)(C) of this title, amounts realized from the liquidation or other resolution of any insured depository institution by any receiver appointed for such institution shall be distributed to pay claims (other than secured claims to the ex- tent of any such security) in the following order of priority: (i) Administrative expenses of the re- ceiver. (ii) Any deposit liability of the institu- tion. (iii) Any other general or senior liability of the institution (which is not a liability described in clause (iv) or (v)). (iv) Any obligation subordinated to de- positors or general creditors (which is not an obligation described in clause (v)). (v) Any obligation to shareholders or members arising as a result of their status Page 1050 TITLE 12—BANKS AND BANKING § 1821 as shareholders or members (including any depository institution holding company or any shareholder or creditor of such com- pany). (B) Effect on State law (i) In general The provisions of subparagraph (A) shall not supersede the law of any State except to the extent such law is inconsistent with the provisions of such subparagraph, and then only to the extent of the inconsist- ency. (ii) Procedure for determination of incon- sistency Upon the Corporation’s own motion or upon the request of any person with a claim described in subparagraph (A) or any State which is submitted to the Corpora- tion in accordance with procedures which the Corporation shall prescribe, the Cor- poration shall determine whether any pro- vision of the law of any State is incon- sistent with any provision of subparagraph (A) and the extent of any such inconsist- ency. (iii) Judicial review The final determination of the Corpora- tion under clause (ii) shall be subject to ju- dicial review under chapter 7 of title 5. (C) Accounting report Any distribution by the Corporation in connection with any claim described in sub- paragraph (A)(v) shall be accompanied by the accounting report required under para- graph (15)(B). (12) Suspension of legal actions (A) In general After the appointment of a conservator or receiver for an insured depository institu- tion, the conservator or receiver may re- quest a stay for a period not to exceed— (i) 45 days, in the case of any conser- vator; and (ii) 90 days, in the case of any receiver, in any judicial action or proceeding to which such institution is or becomes a party. (B) Grant of stay by all courts required Upon receipt of a request by any conser- vator or receiver pursuant to subparagraph (A) for a stay of any judicial action or pro- ceeding in any court with jurisdiction of such action or proceeding, the court shall grant such stay as to all parties. (13) Additional rights and duties (A) Prior final adjudication The Corporation shall abide by any final unappealable judgment of any court of com- petent jurisdiction which was rendered be- fore the appointment of the Corporation as conservator or receiver. (B) Rights and remedies of conservator or re- ceiver In the event of any appealable judgment, the Corporation as conservator or receiver shall— (i) have all the rights and remedies available to the insured depository institu- tion (before the appointment of such con- servator or receiver) and the Corporation in its corporate capacity, including re- moval to Federal court and all appellate rights; and (ii) not be required to post any bond in order to pursue such remedies. (C) No attachment or execution No attachment or execution may issue by any court upon assets in the possession of the receiver. (D) Limitation on judicial review Except as otherwise provided in this sub- section, no court shall have jurisdiction over— (i) any claim or action for payment from, or any action seeking a determina- tion of rights with respect to, the assets of any depository institution for which the Corporation has been appointed receiver, including assets which the Corporation may acquire from itself as such receiver; or (ii) any claim relating to any act or omission of such institution or the Cor- poration as receiver. (E) Disposition of assets In exercising any right, power, privilege, or authority as conservator or receiver in connection with any sale or disposition of assets of any insured depository institution for which the Corporation has been ap- pointed conservator or receiver, including any sale or disposition of assets acquired by the Corporation under section 1823(d)(1) of this title, the Corporation shall conduct its operations in a manner which— (i) maximizes the net present value re- turn from the sale or disposition of such assets; (ii) minimizes the amount of any loss re- alized in the resolution of cases; (iii) ensures adequate competition and fair and consistent treatment of offerors; (iv) prohibits discrimination on the basis of race, sex, or ethnic groups in the solici- tation and consideration of offers; and (v) maximizes the preservation of the availability and affordability of residential real property for low- and moderate-in- come individuals. (14) Statute of limitations for actions brought by conservator or receiver (A) In general Notwithstanding any provision of any con- tract, the applicable statute of limitations with regard to any action brought by the Corporation as conservator or receiver shall be— (i) in the case of any contract claim, the longer of— (I) the 6-year period beginning on the date the claim accrues; or (II) the period applicable under State law; and (ii) in the case of any tort claim (other than a claim which is subject to section 1441a(b)(14) 2 of this title), the longer of— Page 1051 TITLE 12—BANKS AND BANKING § 1821 (I) the 3-year period beginning on the date the claim accrues; or (II) the period applicable under State law. (B) Determination of the date on which a claim accrues For purposes of subparagraph (A), the date on which the statute of limitations begins to run on any claim described in such subpara- graph shall be the later of— (i) the date of the appointment of the Corporation as conservator or receiver; or (ii) the date on which the cause of action accrues. (C) Revival of expired State causes of action (i) In general In the case of any tort claim described in clause (ii) for which the statute of limita- tion applicable under State law with re- spect to such claim has expired not more than 5 years before the appointment of the Corporation as conservator or receiver, the Corporation may bring an action as con- servator or receiver on such claim without regard to the expiration of the statute of limitation applicable under State law. (ii) Claims described A tort claim referred to in clause (i) is a claim arising from fraud, intentional mis- conduct resulting in unjust enrichment, or intentional misconduct resulting in sub- stantial loss to the institution. (15) Accounting and recordkeeping require- ments (A) In general The Corporation as conservator or receiver shall, consistent with the accounting and re- porting practices and procedures established by the Corporation, maintain a full account- ing of each conservatorship and receivership or other disposition of institutions in de- fault. (B) Annual accounting or report With respect to each conservatorship or receivership to which the Corporation was appointed, the Corporation shall make an annual accounting or report, as appropriate, available to the Secretary of the Treasury, the Comptroller General of the United States, and the authority which appointed the Corporation as conservator or receiver. (C) Availability of reports Any report prepared pursuant to subpara- graph (B) shall be made available by the Cor- poration upon request to any shareholder of the depository institution for which the Cor- poration was appointed conservator or re- ceiver or any other member of the public. (D) Recordkeeping requirement (i) In general Except as provided in clause (ii), after the end of the 6-year period beginning on the date the Corporation is appointed as receiver of an insured depository institu- tion, the Corporation may destroy any records of such institution which the Cor- poration, in the Corporation’s discretion, determines to be unnecessary unless di- rected not to do so by a court of competent jurisdiction or governmental agency, or prohibited by law. (ii) Old records Notwithstanding clause (i), the Corpora- tion may destroy records of an insured de- pository institution which are at least 10 years old as of the date on which the Cor- poration is appointed as the receiver of such depository institution in accordance with clause (i) at any time after such ap- pointment is final, without regard to the 6- year period of limitation contained in clause (i). (16) Contracts with State housing finance au- thorities (A) In general The Corporation may enter into contracts with any State housing finance authority for the sale of mortgage-related assets (as such terms are defined in section 1441a–1 of this title) of any depository institution in de- fault (including assets and liabilities associ- ated with any trust business), such contracts to be effective in accordance with their terms without any further approval, assign- ment, or consent with respect thereto. (B) Factors to consider In evaluating the disposition of mortgage related assets to any State housing finance authority the Corporation shall consider— (i) the State housing finance authority’s ability to acquire and service current, de- linquent, and defaulted mortgage related assets; (ii) the State housing finance authority’s ability to further national housing poli- cies; (iii) the State housing finance authority’s sensitivity to the impact of the sale of mortgage related assets upon the State and local communities; (iv) the costs to the Federal Government associated with alternative ownership or disposition of the mortgage related assets; (v) the minimization of future guaran- ties which may be required of the Federal Government; (vi) the maximization of mortgage re- lated asset values; and (vii) the utilization of institutions cur- rently established in mortgage related asset market activities. (17) Fraudulent transfers (A) In general The Corporation, as conservator or re- ceiver for any insured depository institu- tion, and any conservator appointed by the Comptroller of the Currency may avoid a transfer of any interest of an institution-af- filiated party, or any person who the Cor- poration or conservator determines is a debtor of the institution, in property, or any obligation incurred by such party or person, that was made within 5 years of the date on Page 1052 TITLE 12—BANKS AND BANKING § 1821 which the Corporation or conservator was appointed conservator or receiver if such party or person voluntarily or involuntarily made such transfer or incurred such liability with the intent to hinder, delay, or defraud the insured depository institution, the Cor- poration or other conservator, or any other appropriate Federal banking agency. (B) Right of recovery To the extent a transfer is avoided under subparagraph (A), the Corporation or any conservator described in such subparagraph may recover, for the benefit of the insured depository institution, the property trans- ferred, or, if a court so orders, the value of such property (at the time of such transfer) from— (i) the initial transferee of such transfer or the institution-affiliated party or per- son for whose benefit such transfer was made; or (ii) any immediate or mediate transferee of any such initial transferee. (C) Rights of transferee or obligee The Corporation or any conservator de- scribed in subparagraph (A) may not recover under subparagraph (B) from— (i) any transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith; or (ii) any immediate or mediate good faith transferee of such transferee. (D) Rights under this paragraph The rights under this paragraph of the Corporation and any conservator described in subparagraph (A) shall be superior to any rights of a trustee or any other party (other than any party which is a Federal agency) under title 11. (18) Attachment of assets and other injunctive relief Subject to paragraph (19), any court of com- petent jurisdiction may, at the request of— (A) the Corporation (in the Corporation’s capacity as conservator or receiver for any insured depository institution or in the Cor- poration’s corporate capacity with respect to any asset acquired or liability assumed by the Corporation under this section or section 1822 or 1823 of this title); or (B) any conservator appointed by the Comptroller of the Currency, issue an order in accordance with Rule 65 of the Federal Rules of Civil Procedure, includ- ing an order placing the assets of any person designated by the Corporation or such conser- vator under the control of the court and ap- pointing a trustee to hold such assets. (19) Standards (A) Showing Rule 65 of the Federal Rules of Civil Proce- dure shall apply with respect to any pro- ceeding under paragraph (18) without regard to the requirement of such rule that the ap- plicant show that the injury, loss, or damage is irreparable and immediate. (B) State proceeding If, in the case of any proceeding in a State court, the court determines that rules of civil procedure available under the laws of such State provide substantially similar pro- tections to such party’s right to due process as Rule 65 (as modified with respect to such proceeding by subparagraph (A)), the relief sought by the Corporation or a conservator pursuant to paragraph (18) may be requested under the laws of such State. (20) Treatment of claims arising from breach of contracts executed by the receiver or con- servator Notwithstanding any other provision of this subsection, any final and unappealable judg- ment for monetary damages entered against a receiver or conservator for an insured deposi- tory institution for the breach of an agree- ment executed or approved by such receiver or conservator after the date of its appointment shall be paid as an administrative expense of the receiver or conservator. Nothing in this paragraph shall be construed to limit the power of a receiver or conservator to exercise any rights under contract or law, including to terminate, breach, cancel, or otherwise dis- continue such agreement. (e) Provisions relating to contracts entered into before appointment of conservator or re- ceiver (1) Authority to repudiate contracts In addition to any other rights a conservator or receiver may have, the conservator or re- ceiver for any insured depository institution may disaffirm or repudiate any contract or lease— (A) to which such institution is a party; (B) the performance of which the conser- vator or receiver, in the conservator’s or re- ceiver’s discretion, determines to be burden- some; and (C) the disaffirmance or repudiation of which the conservator or receiver deter- mines, in the conservator’s or receiver’s dis- cretion, will promote the orderly adminis- tration of the institution’s affairs. (2) Timing of repudiation The conservator or receiver appointed for any insured depository institution in accord- ance with subsection (c) shall determine whether or not to exercise the rights of repudi- ation under this subsection within a reason- able period following such appointment. (3) Claims for damages for repudiation (A) In general Except as otherwise provided in subpara- graph (C) and paragraphs (4), (5), and (6), the liability of the conservator or receiver for the disaffirmance or repudiation of any con- tract pursuant to paragraph (1) shall be— (i) limited to actual direct compensatory damages; and (ii) determined as of— (I) the date of the appointment of the conservator or receiver; or (II) in the case of any contract or agreement referred to in paragraph (8), Page 1053 TITLE 12—BANKS AND BANKING § 1821 the date of the disaffirmance or repudi- ation of such contract or agreement. (B) No liability for other damages For purposes of subparagraph (A), the term ‘‘actual direct compensatory damages’’ does not include— (i) punitive or exemplary damages; (ii) damages for lost profits or oppor- tunity; or (iii) damages for pain and suffering. (C) Measure of damages for repudiation of fi- nancial contracts In the case of any qualified financial con- tract or agreement to which paragraph (8) applies, compensatory damages shall be— (i) deemed to include normal and reason- able costs of cover or other reasonable measures of damages utilized in the indus- tries for such contract and agreement claims; and (ii) paid in accordance with this sub- section and subsection (i) except as other- wise specifically provided in this section. (4) Leases under which the institution is the lessee (A) In general If the conservator or receiver disaffirms or repudiates a lease under which the insured depository institution was the lessee, the conservator or receiver shall not be liable for any damages (other than damages deter- mined pursuant to subparagraph (B)) for the disaffirmance or repudiation of such lease. (B) Payments of rent Notwithstanding subparagraph (A), the lessor under a lease to which such subpara- graph applies shall— (i) be entitled to the contractual rent ac- cruing before the later of the date— (I) the notice of disaffirmance or repu- diation is mailed; or (II) the disaffirmance or repudiation becomes effective, unless the lessor is in default or breach of the terms of the lease; (ii) have no claim for damages under any acceleration clause or other penalty provi- sion in the lease; and (iii) have a claim for any unpaid rent, subject to all appropriate offsets and de- fenses, due as of the date of the appoint- ment which shall be paid in accordance with this subsection and subsection (i). (5) Leases under which the institution is the lessor (A) In general If the conservator or receiver repudiates an unexpired written lease of real property of the insured depository institution under which the institution is the lessor and the lessee is not, as of the date of such repudi- ation, in default, the lessee under such lease may either— (i) treat the lease as terminated by such repudiation; or (ii) remain in possession of the leasehold interest for the balance of the term of the lease unless the lessee defaults under the terms of the lease after the date of such re- pudiation. (B) Provisions applicable to lessee remaining in possession If any lessee under a lease described in subparagraph (A) remains in possession of a leasehold interest pursuant to clause (ii) of such subparagraph— (i) the lessee— (I) shall continue to pay the contrac- tual rent pursuant to the terms of the lease after the date of the repudiation of such lease; (II) may offset against any rent pay- ment which accrues after the date of the repudiation of the lease, any damages which accrue after such date due to the nonperformance of any obligation of the insured depository institution under the lease after such date; and (ii) the conservator or receiver shall not be liable to the lessee for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause (i)(II). (6) Contracts for the sale of real property (A) In general If the conservator or receiver repudiates any contract (which meets the requirements of each paragraph of section 1823(e) of this title) for the sale of real property and the purchaser of such real property under such contract is in possession and is not, as of the date of such repudiation, in default, such purchaser may either— (i) treat the contract as terminated by such repudiation; or (ii) remain in possession of such real property. (B) Provisions applicable to purchaser re- maining in possession If any purchaser of real property under any contract described in subparagraph (A) remains in possession of such property pur- suant to clause (ii) of such subparagraph— (i) the purchaser— (I) shall continue to make all pay- ments due under the contract after the date of the repudiation of the contract; and (II) may offset against any such pay- ments any damages which accrue after such date due to the nonperformance (after such date) of any obligation of the depository institution under the con- tract; and (ii) the conservator or receiver shall— (I) not be liable to the purchaser for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause (i)(II); (II) deliver title to the purchaser in ac- cordance with the provisions of the con- tract; and (III) have no obligation under the con- tract other than the performance re- quired under subclause (II). Page 1054 TITLE 12—BANKS AND BANKING § 1821 3 So in original. Probably should be followed by ‘‘or’’. (C) Assignment and sale allowed (i) In general No provision of this paragraph shall be construed as limiting the right of the con- servator or receiver to assign the contract described in subparagraph (A) and sell the property subject to the contract and the provisions of this paragraph. (ii) No liability after assignment and sale If an assignment and sale described in clause (i) is consummated, the conservator or receiver shall have no further liability under the contract described in subpara- graph (A) or with respect to the real prop- erty which was the subject of such con- tract. (7) Provisions applicable to service contracts (A) Services performed before appointment In the case of any contract for services be- tween any person and any insured depository institution for which the Corporation has been appointed conservator or receiver, any claim of such person for services performed before the appointment of the conservator or the receiver shall be— (i) a claim to be paid in accordance with subsections (d) and (i); and (ii) deemed to have arisen as of the date the conservator or receiver was appointed. (B) Services performed after appointment and prior to repudiation If, in the case of any contract for services described in subparagraph (A), the conser- vator or receiver accepts performance by the other person before the conservator or re- ceiver makes any determination to exercise the right of repudiation of such contract under this section— (i) the other party shall be paid under the terms of the contract for the services performed; and (ii) the amount of such payment shall be treated as an administrative expense of the conservatorship or receivership. (C) Acceptance of performance no bar to sub- sequent repudiation The acceptance by any conservator or re- ceiver of services referred to in subpara- graph (B) in connection with a contract de- scribed in such subparagraph shall not affect the right of the conservator or receiver to repudiate such contract under this section at any time after such performance. (8) Certain qualified financial contracts (A) Rights of parties to contracts Subject to paragraphs (9) and (10) of this subsection and notwithstanding any other provision of this chapter (other than sub- section (d)(9) of this section and section 1823(e) of this title), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising— (i) any right such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with an insured depository institution which arises upon the appointment of the Corporation as receiver for such institution at any time after such appointment; (ii) any right under any security agree- ment or arrangement or other credit en- hancement related to one or more quali- fied financial contracts described in clause (i); 3 (iii) any right to offset or net out any termination value, payment amount, or other transfer obligation arising under or in connection with 1 or more contracts and agreements described in clause (i), includ- ing any master agreement for such con- tracts or agreements. (B) Applicability of other provisions Subsection (d)(12) shall apply in the case of any judicial action or proceeding brought against any receiver referred to in subpara- graph (A), or the insured depository institu- tion for which such receiver was appointed, by any party to a contract or agreement de- scribed in subparagraph (A)(i) with such in- stitution. (C) Certain transfers not avoidable (i) In general Notwithstanding paragraph (11), section 91 of this title or any other Federal or State law relating to the avoidance of preferential or fraudulent transfers, the Corporation, whether acting as such or as conservator or receiver of an insured de- pository institution, may not avoid any transfer of money or other property in connection with any qualified financial contract with an insured depository insti- tution. (ii) Exception for certain transfers Clause (i) shall not apply to any transfer of money or other property in connection with any qualified financial contract with an insured depository institution if the Corporation determines that the trans- feree had actual intent to hinder, delay, or defraud such institution, the creditors of such institution, or any conservator or re- ceiver appointed for such institution. (D) Certain contracts and agreements de- fined For purposes of this subsection, the fol- lowing definitions shall apply: (i) Qualified financial contract The term ‘‘qualified financial contract’’ means any securities contract, commodity contract, forward contract, repurchase agreement, swap agreement, and any simi- lar agreement that the Corporation deter- mines by regulation, resolution, or order to be a qualified financial contract for pur- poses of this paragraph. (ii) Securities contract The term ‘‘securities contract’’— (I) means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, any interest Page 1055 TITLE 12—BANKS AND BANKING § 1821 4 So in original. The semicolon probably should be preceded by an additional closing parenthesis. in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein (in- cluding any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, cer- tificate of deposit, mortgage loan, inter- est, group or index, or option, and in- cluding any repurchase or reverse repur- chase transaction on any such security, certificate of deposit, mortgage loan, in- terest, group or index, or option (wheth- er or not such repurchase or reverse re- purchase transaction is a ‘‘repurchase agreement’’, as defined in clause (v)); (II) does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan unless the Corporation determines by regulation, resolution, or order to in- clude any such agreement within the meaning of such term; (III) means any option entered into on a national securities exchange relating to foreign currencies; (IV) means the guarantee (including by novation) by or to any securities clear- ing agency of any settlement of cash, se- curities, certificates of deposit, mort- gage loans or interests therein, group or index of securities, certificates of de- posit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or option on any of the foregoing, including any option to purchase or sell any such secu- rity, certificate of deposit, mortgage loan, interest, group or index, or option (whether or not such settlement is in connection with any agreement or trans- action referred to in subclauses (I) through (XII) (other than subclause (II)); 4 (V) means any margin loan; (VI) means any extension of credit for the clearance or settlement of securities transactions; (VII) means any loan transaction cou- pled with a securities collar transaction, any prepaid securities forward trans- action, or any total return swap trans- action coupled with a securities sale transaction; (VIII) means any other agreement or transaction that is similar to any agree- ment or transaction referred to in this clause; (IX) means any combination of the agreements or transactions referred to in this clause; (X) means any option to enter into any agreement or transaction referred to in this clause; (XI) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), (IV), (V), (VI), (VII), (VIII), (IX), or (X), to- gether with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause, except that the master agree- ment shall be considered to be a securi- ties contract under this clause only with respect to each agreement or transaction under the master agreement that is re- ferred to in subclause (I), (III), (IV), (V), (VI), (VII), (VIII), (IX), or (X); and (XII) means any security agreement or arrangement or other credit enhance- ment related to any agreement or trans- action referred to in this clause, includ- ing any guarantee or reimbursement ob- ligation in connection with any agree- ment or transaction referred to in this clause. (iii) Commodity contract The term ‘‘commodity contract’’ means— (I) with respect to a futures commis- sion merchant, a contract for the pur- chase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade; (II) with respect to a foreign futures commission merchant, a foreign future; (III) with respect to a leverage trans- action merchant, a leverage transaction; (IV) with respect to a clearing organi- zation, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or com- modity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization; (V) with respect to a commodity op- tions dealer, a commodity option; (VI) any other agreement or trans- action that is similar to any agreement or transaction referred to in this clause; (VII) any combination of the agree- ments or transactions referred to in this clause; (VIII) any option to enter into any agreement or transaction referred to in this clause; (IX) a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agree- ment, without regard to whether the master agreement provides for an agree- ment or transaction that is not a com- modity contract under this clause, ex- cept that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or (X) any security agreement or arrange- ment or other credit enhancement re- Page 1056 TITLE 12—BANKS AND BANKING § 1821 5 So in original. The comma probably should not appear. lated to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause. (iv) Forward contract The term ‘‘forward contract’’ means— (I) a contract (other than a commodity contract) for the purchase, sale, or trans- fer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward con- tract trade, or product or byproduct thereof, with a maturity date more than 2 days after the date the contract is en- tered into, including,5 a repurchase or re- verse repurchase transaction (whether or not such repurchase or reverse repur- chase transaction is a ‘‘repurchase agree- ment’’, as defined in clause (v)), consign- ment, lease, swap, hedge transaction, de- posit, loan, option, allocated trans- action, unallocated transaction, or any other similar agreement; (II) any combination of agreements or transactions referred to in subclauses (I) and (III); (III) any option to enter into any agreement or transaction referred to in subclause (I) or (II); (IV) a master agreement that provides for an agreement or transaction referred to in subclauses (I), (II), or (III), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause, ex- cept that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), or (III); or (V) any security agreement or arrange- ment or other credit enhancement re- lated to any agreement or transaction referred to in subclause (I), (II), (III), or (IV), including any guarantee or reim- bursement obligation in connection with any agreement or transaction referred to in any such subclause. (v) Repurchase agreement The term ‘‘repurchase agreement’’ (which definition also applies to a reverse repurchase agreement)— (I) means an agreement, including re- lated terms, which provides for the transfer of one or more certificates of de- posit, mortgage-related securities (as such term is defined in the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.]), mortgage loans, interests in mort- gage-related securities or mortgage loans, eligible bankers’ acceptances, qualified foreign government securities or securities that are direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States against the transfer of funds by the transferee of such certifi- cates of deposit, eligible bankers’ accept- ances, securities, mortgage loans, or in- terests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement; (II) does not include any repurchase obligation under a participation in a commercial mortgage loan unless the Corporation determines by regulation, resolution, or order to include any such participation within the meaning of such term; (III) means any combination of agree- ments or transactions referred to in sub- clauses (I) and (IV); (IV) means any option to enter into any agreement or transaction referred to in subclause (I) or (III); (V) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement pro- vides for an agreement or transaction that is not a repurchase agreement under this clause, except that the master agreement shall be considered to be a re- purchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), or (IV); and (VI) means any security agreement or arrangement or other credit enhance- ment related to any agreement or trans- action referred to in subclause (I), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction re- ferred to in any such subclause. For purposes of this clause, the term ‘‘qualified foreign government security’’ means a security that is a direct obliga- tion of, or that is fully guaranteed by, the central government of a member of the Or- ganization for Economic Cooperation and Development (as determined by regulation or order adopted by the appropriate Fed- eral banking authority). (vi) Swap agreement The term ‘‘swap agreement’’ means— (I) any agreement, including the terms and conditions incorporated by reference in any such agreement, which is an in- terest rate swap, option, future, or for- ward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap; a spot, same day- tomorrow, tomorrow-next, forward, or Page 1057 TITLE 12—BANKS AND BANKING § 1821 other foreign exchange, precious metals, or other commodity agreement; a cur- rency swap, option, future, or forward agreement; an equity index or equity swap, option, future, or forward agree- ment; a debt index or debt swap, option, future, or forward agreement; a total re- turn, credit spread or credit swap, op- tion, future, or forward agreement; a commodity index or commodity swap, option, future, or forward agreement; weather swap, option, future, or forward agreement; an emissions swap, option, future, or forward agreement; or an in- flation swap, option, future, or forward agreement; (II) any agreement or transaction that is similar to any other agreement or transaction referred to in this clause and that is of a type that has been, is pres- ently, or in the future becomes, the sub- ject of recurrent dealings in the swap or other derivatives markets (including terms and conditions incorporated by reference in such agreement) and that is a forward, swap, future, option, or spot transaction on one or more rates, cur- rencies, commodities, equity securities or other equity instruments, debt securi- ties or other debt instruments, quan- titative measures associated with an oc- currence, extent of an occurrence, or contingency associated with a financial, commercial, or economic consequence, or economic or financial indices or meas- ures of economic or financial risk or value; (III) any combination of agreements or transactions referred to in this clause; (IV) any option to enter into any agreement or transaction referred to in this clause; (V) a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), or (IV), to- gether with all supplements to any such master agreement, without regard to whether the master agreement contains an agreement or transaction that is not a swap agreement under this clause, ex- cept that the master agreement shall be considered to be a swap agreement under this clause only with respect to each agreement or transaction under the mas- ter agreement that is referred to in sub- clause (I), (II), (III), or (IV); and (VI) any security agreement or ar- rangement or other credit enhancement related to any agreements or trans- actions referred to in subclause (I), (II), (III), (IV), or (V), including any guar- antee or reimbursement obligation in connection with any agreement or trans- action referred to in any such subclause. Such term is applicable for purposes of this subsection only and shall not be con- strued or applied so as to challenge or af- fect the characterization, definition, or treatment of any swap agreement under any other statute, regulation, or rule, in- cluding the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000 [7 U.S.C. 27 to 27f], the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(47)]) and the Commodity Ex- change Act [7 U.S.C. 1 et seq.]. (vii) Treatment of master agreement as one agreement Any master agreement for any contract or agreement described in any preceding clause of this subparagraph (or any master agreement for such master agreement or agreements), together with all supple- ments to such master agreement, shall be treated as a single agreement and a single qualified financial contract. If a master agreement contains provisions relating to agreements or transactions that are not themselves qualified financial contracts, the master agreement shall be deemed to be a qualified financial contract only with respect to those transactions that are themselves qualified financial contracts. (viii) Transfer The term ‘‘transfer’’ means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or with an inter- est in property, including retention of title as a security interest and foreclosure of the depository institution’s equity of re- demption. (ix) Person The term ‘‘person’’ includes any govern- mental entity in addition to any entity in- cluded in the definition of such term in section 1 of title 1. (E) Certain protections in event of appoint- ment of conservator Notwithstanding any other provision of this chapter (other than subsections (d)(9) and (e)(10) of this section, and section 1823(e) of this title), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising— (i) any right such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with a depository institution in a conservatorship based upon a default under such financial contract which is enforceable under appli- cable noninsolvency law; (ii) any right under any security agree- ment or arrangement or other credit en- hancement related to one or more quali- fied financial contracts described in clause (i); 3 (iii) any right to offset or net out any termination values, payment amounts, or other transfer obligations arising under or in connection with such qualified financial contracts. (F) Clarification No provision of law shall be construed as limiting the right or power of the Corpora- tion, or authorizing any court or agency to limit or delay, in any manner, the right or power of the Corporation to transfer any Page 1058 TITLE 12—BANKS AND BANKING § 1821 qualified financial contract in accordance with paragraphs (9) and (10) of this sub- section or to disaffirm or repudiate any such contract in accordance with subsection (e)(1) of this section. (G) Walkaway clauses not effective (i) In general Notwithstanding the provisions of sub- paragraphs (A) and (E), and sections 4403 and 4404 of this title, no walkaway clause shall be enforceable in a qualified financial contract of an insured depository institu- tion in default. (ii) Limited suspension of certain obliga- tions In the case of a qualified financial con- tract referred to in clause (i), any payment or delivery obligations otherwise due from a party pursuant to the qualified financial contract shall be suspended from the time the receiver is appointed until the earlier of— (I) the time such party receives notice that such contract has been transferred pursuant to subparagraph (A); or (II) 5:00 p.m. (eastern time) on the busi- ness day following the date of the ap- pointment of the receiver. (iii) Walkaway clause defined For purposes of this subparagraph, the term ‘‘walkaway clause’’ means any provi- sion in a qualified financial contract that suspends, conditions, or extinguishes a payment obligation of a party, in whole or in part, or does not create a payment obli- gation of a party that would otherwise exist, solely because of such party’s status as a nondefaulting party in connection with the insolvency of an insured deposi- tory institution that is a party to the con- tract or the appointment of or the exercise of rights or powers by a conservator or re- ceiver of such depository institution, and not as a result of a party’s exercise of any right to offset, setoff, or net obligations that exist under the contract, any other contract between those parties, or applica- ble law. (H) Recordkeeping requirements The Corporation, in consultation with the appropriate Federal banking agencies, may prescribe regulations requiring more de- tailed recordkeeping by any insured deposi- tory institution with respect to qualified fi- nancial contracts (including market valu- ations) only if such insured depository insti- tution is in a troubled condition (as such term is defined by the Corporation pursuant to section 1831i of this title). (9) Transfer of qualified financial contracts (A) In general In making any transfer of assets or liabil- ities of a depository institution in default which includes any qualified financial con- tract, the conservator or receiver for such depository institution shall either— (i) transfer to one financial institution, other than a financial institution for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency pro- ceeding— (I) all qualified financial contracts be- tween any person or any affiliate of such person and the depository institution in default; (II) all claims of such person or any af- filiate of such person against such depos- itory institution under any such con- tract (other than any claim which, under the terms of any such contract, is subor- dinated to the claims of general unse- cured creditors of such institution); (III) all claims of such depository insti- tution against such person or any affil- iate of such person under any such con- tract; and (IV) all property securing or any other credit enhancement for any contract de- scribed in subclause (I) or any claim de- scribed in subclause (II) or (III) under any such contract; or (ii) transfer none of the qualified finan- cial contracts, claims, property or other credit enhancement referred to in clause (i) (with respect to such person and any af- filiate of such person). (B) Transfer to foreign bank, foreign finan- cial institution, or branch or agency of a foreign bank or financial institution In transferring any qualified financial con- tracts and related claims and property under subparagraph (A)(i), the conservator or re- ceiver for the depository institution shall not make such transfer to a foreign bank, fi- nancial institution organized under the laws of a foreign country, or a branch or agency of a foreign bank or financial institution un- less, under the law applicable to such bank, financial institution, branch or agency, to the qualified financial contracts, and to any netting contract, any security agreement or arrangement or other credit enhancement related to one or more qualified financial contracts, the contractual rights of the par- ties to such qualified financial contracts, netting contracts, security agreements or arrangements, or other credit enhancements are enforceable substantially to the same ex- tent as permitted under this section. (C) Transfer of contracts subject to the rules of a clearing organization In the event that a conservator or receiver transfers any qualified financial contract and related claims, property, and credit en- hancements pursuant to subparagraph (A)(i) and such contract is cleared by or subject to the rules of a clearing organization, the clearing organization shall not be required to accept the transferee as a member by vir- tue of the transfer. (D) Definitions For purposes of this paragraph, the term ‘‘financial institution’’ means a broker or dealer, a depository institution, a futures commission merchant, or any other institu- Page 1059 TITLE 12—BANKS AND BANKING § 1821 tion, as determined by the Corporation by regulation to be a financial institution, and the term ‘‘clearing organization’’ has the same meaning as in section 4402 of this title. (10) Notification of transfer (A) In general If— (i) the conservator or receiver for an in- sured depository institution in default makes any transfer of the assets and li- abilities of such institution; and (ii) the transfer includes any qualified fi- nancial contract, the conservator or receiver shall notify any person who is a party to any such contract of such transfer by 5:00 p.m. (eastern time) on the business day following the date of the appointment of the receiver in the case of a receivership, or the business day following such transfer in the case of a conservator- ship. (B) Certain rights not enforceable (i) Receivership A person who is a party to a qualified fi- nancial contract with an insured deposi- tory institution may not exercise any right that such person has to terminate, liquidate, or net such contract under para- graph (8)(A) of this subsection or section 4403 or 4404 of this title, solely by reason of or incidental to the appointment of a re- ceiver for the depository institution (or the insolvency or financial condition of the depository institution for which the receiver has been appointed)— (I) until 5:00 p.m. (eastern time) on the business day following the date of the appointment of the receiver; or (II) after the person has received no- tice that the contract has been trans- ferred pursuant to paragraph (9)(A). (ii) Conservatorship A person who is a party to a qualified fi- nancial contract with an insured deposi- tory institution may not exercise any right that such person has to terminate, liquidate, or net such contract under para- graph (8)(E) of this subsection or section 4403 or 4404 of this title, solely by reason of or incidental to the appointment of a con- servator for the depository institution (or the insolvency or financial condition of the depository institution for which the conservator has been appointed). (iii) Notice For purposes of this paragraph, the Cor- poration as receiver or conservator of an insured depository institution shall be deemed to have notified a person who is a party to a qualified financial contract with such depository institution if the Corporation has taken steps reasonably calculated to provide notice to such person by the time specified in subparagraph (A). (C) Treatment of bridge depository institu- tions The following institutions shall not be considered to be a financial institution for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency pro- ceeding for purposes of paragraph (9): (i) A bridge depository institution. (ii) A depository institution organized by the Corporation, for which a conservator is appointed either— (I) immediately upon the organization of the institution; or (II) at the time of a purchase and as- sumption transaction between the depos- itory institution and the Corporation as receiver for a depository institution in default. (D) ‘‘Business day’’ defined For purposes of this paragraph, the term ‘‘business day’’ means any day other than any Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed. (11) Disaffirmance or repudiation of qualified financial contracts In exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which an insured depository institution is a party, the conservator or receiver for such in- stitution shall either— (A) disaffirm or repudiate all qualified fi- nancial contracts between— (i) any person or any affiliate of such person; and (ii) the depository institution in default; or (B) disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph (A) (with respect to such per- son or any affiliate of such person). (12) Certain security interests not avoidable No provision of this subsection shall be con- strued as permitting the avoidance of any le- gally enforceable or perfected security inter- est in any of the assets of any depository insti- tution except where such an interest is taken in contemplation of the institution’s insol- vency or with the intent to hinder, delay, or defraud the institution or the creditors of such institution. (13) Authority to enforce contracts (A) In general The conservator or receiver may enforce any contract, other than a director’s or offi- cer’s liability insurance contract or a depos- itory institution bond, entered into by the depository institution notwithstanding any provision of the contract providing for ter- mination, default, acceleration, or exercise of rights upon, or solely by reason of, insol- vency or the appointment of or the exercise of rights or powers by a conservator or re- ceiver. (B) Certain rights not affected No provision of this paragraph may be con- strued as impairing or affecting any right of the conservator or receiver to enforce or re- Page 1060 TITLE 12—BANKS AND BANKING § 1821 cover under a director’s or officer’s liability insurance contract or depository institution bond under other applicable law. (C) Consent requirement (i) In general Except as otherwise provided by this sec- tion or section 1825 of this title, no person may exercise any right or power to termi- nate, accelerate, or declare a default under any contract to which the depository insti- tution is a party, or to obtain possession of or exercise control over any property of the institution or affect any contractual rights of the institution, without the con- sent of the conservator or receiver, as ap- propriate, during the 45-day period begin- ning on the date of the appointment of the conservator, or during the 90-day period beginning on the date of the appointment of the receiver, as applicable. (ii) Certain exceptions No provision of this subparagraph shall apply to a director or officer liability in- surance contract or a depository institu- tion bond, to the rights of parties to cer- tain qualified financial contracts pursuant to paragraph (8), or to the rights of parties to netting contracts pursuant to subtitle A of title IV of the Federal Deposit Insur- ance Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.), or shall be con- strued as permitting the conservator or re- ceiver to fail to comply with otherwise en- forceable provisions of such contract. (iii) Rule of construction Nothing in this subparagraph shall be construed to limit or otherwise affect the applicability of title 11. (14) Exception for Federal Reserve and Federal home loan banks No provision of this subsection shall apply with respect to— (A) any extension of credit from any Fed- eral home loan bank or Federal Reserve bank to any insured depository institution; or (B) any security interest in the assets of the institution securing any such extension of credit. (15) Selling credit card accounts receivable (A) Notification required An undercapitalized insured depository in- stitution (as defined in section 1831o of this title) shall notify the Corporation in writing before entering into an agreement to sell credit card accounts receivable. (B) Waiver by Corporation The Corporation may at any time, in its sole discretion and upon such terms as it may prescribe, waive its right to repudiate an agreement to sell credit card accounts re- ceivable if the Corporation— (i) determines that the waiver is in the best interests of the Deposit Insurance Fund; and (ii) provides a written waiver to the sell- ing institution. (C) Effect of waiver on successors (i) In general If, under subparagraph (B), the Corpora- tion has waived its right to repudiate an agreement to sell credit card accounts re- ceivable— (I) any provision of the agreement that restricts solicitation of a credit card cus- tomer of the selling institution, or the use of a credit card customer list of the institution, shall bind any receiver or conservator of the institution; and (II) the Corporation shall require any acquirer of the selling institution, or of substantially all of the selling institu- tion’s assets or liabilities, to agree to be bound by a provision described in sub- clause (I) as if the acquirer were the sell- ing institution. (ii) Exception Clause (i)(II) does not— (I) restrict the acquirer’s authority to offer any product or service to any per- son identified without using a list of the selling institution’s customers in viola- tion of the agreement; (II) require the acquirer to restrict any preexisting relationship between the acquirer and a customer; or (III) apply to any transaction in which the acquirer acquires only insured depos- its. (D) Waiver not actionable The Corporation shall not, in any capac- ity, be liable to any person for damages re- sulting from the waiver of or failure to waive the Corporation’s right under this sec- tion to repudiate any contract or lease, in- cluding an agreement to sell credit card ac- counts receivable. No court shall issue any order affecting any such waiver or failure to waive. (E) Other authority not affected This paragraph does not limit any other authority of the Corporation to waive the Corporation’s right to repudiate an agree- ment or lease under this section. (16) Certain credit card customer lists pro- tected (A) In general If any insured depository institution sells credit card accounts receivable under an agreement negotiated at arm’s length that provides for the sale of the institution’s credit card customer list, the Corporation shall prohibit any party to a transaction with respect to the institution under this section or section 1823 of this title from using the list, except as permitted under the agreement. (B) Fraudulent transactions excluded Subparagraph (A) does not limit the Cor- poration’s authority to repudiate any agree- ment entered into with the intent to hinder, delay, or defraud the institution, the institu- tion’s creditors, or the Corporation. (17) Savings clause The meanings of terms used in this sub- section are applicable for purposes of this sub- Page 1061 TITLE 12—BANKS AND BANKING § 1821 section only, and shall not be construed or ap- plied so as to challenge or affect the charac- terization, definition, or treatment of any similar terms under any other statute, regula- tion, or rule, including the Gramm-Leach-Bli- ley Act, the Legal Certainty for Bank Prod- ucts Act of 2000 [7 U.S.C. 27 to 27f], the securi- ties laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(47)]), and the Commodity Ex- change Act [7 U.S.C. 1 et seq.]. (f) Payment of insured deposits (1) In general In case of the liquidation of, or other closing or winding up of the affairs of, any insured de- pository institution, payment of the insured deposits in such institution shall be made by the Corporation as soon as possible, subject to the provisions of subsection (g), either by cash or by making available to each depositor a transferred deposit in a new insured deposi- tory institution in the same community or in another insured depository institution in an amount equal to the insured deposit of such depositor. (2) Proof of claims The Corporation, in its discretion, may re- quire proof of claims to be filed and may ap- prove or reject such claims for insured depos- its. (3) Resolution of disputes A determination by the Corporation regard- ing any claim for insurance coverage shall be treated as a final determination for purposes of this section. In its discretion, the Corpora- tion may promulgate regulations prescribing procedures for resolving any disputed claim relating to any insured deposit or any deter- mination of insurance coverage with respect to any deposit. (4) Review of Corporation determination A final determination made by the Corpora- tion regarding any claim for insurance cov- erage shall be a final agency action reviewable in accordance with chapter 7 of title 5 by the United States district court for the Federal ju- dicial district where the principal place of business of the depository institution is lo- cated. (5) Statute of limitations Any request for review of a final determina- tion by the Corporation regarding any claim for insurance coverage shall be filed with the appropriate United States district court not later than 60 days after the date on which such determination is issued. (g) Subrogation of Corporation (1) In general Notwithstanding any other provision of Fed- eral law, the law of any State, or the constitu- tion of any State, the Corporation, upon the payment to any depositor as provided in sub- section (f) in connection with any insured de- pository institution or insured branch de- scribed in such subsection or the assumption of any deposit in such institution or branch by another insured depository institution pursu- ant to this section or section 1823 of this title, shall be subrogated to all rights of the deposi- tor against such institution or branch to the extent of such payment or assumption. (2) Dividends on subrogated amounts The subrogation of the Corporation under paragraph (1) with respect to any insured de- pository institution shall include the right on the part of the Corporation to receive the same dividends from the proceeds of the assets of such institution and recoveries on account of stockholders’ liability as would have been payable to the depositor on a claim for the in- sured deposit, but such depositor shall retain such claim for any uninsured or unassumed portion of the deposit. (3) Waiver of certain claims With respect to any bank which closes after May 25, 1938, the Corporation shall waive, in favor only of any person against whom stock- holders’ individual liability may be asserted, any claim on account of such liability in ex- cess of the liability, if any, to the bank or its creditors, for the amount unpaid upon such stock in such bank; but any such waiver shall be effected in such manner and on such terms and conditions as will not increase recoveries or dividends on account of claims to which the Corporation is not subrogated. (4) Applicability of State law Subject to subsection (d)(11), if the Corpora- tion is appointed pursuant to subsection (c)(3), or determines not to invoke the authority con- ferred in subsection (c)(4), the rights of deposi- tors and other creditors of any State deposi- tory institution shall be determined in accord- ance with the applicable provisions of State law. (h) Conditions applicable to resolution pro- ceedings (1) Consideration of local economic impact re- quired The Corporation shall fully consider the ad- verse economic impact on local communities, including businesses and farms, of actions to be taken by it during the administration and liquidation of loans of a depository institution in default. (2) Actions to alleviate adverse economic im- pact to be considered The actions which the Corporation shall consider include the release of proceeds from the sale of products and services for family living and business expenses and shortening the undue length of the decisionmaking proc- ess for the acceptance of offers of settlement contingent upon third party financing. (3) Guidelines required The Corporation shall adopt and publish pro- cedures and guidelines to minimize adverse economic effects caused by its actions on indi- vidual debtors in the community. (4) Financial services industry impact analysis After the appointment of the Corporation as conservator or receiver for any insured deposi- Page 1062 TITLE 12—BANKS AND BANKING § 1821 tory institution and before taking any action under this section or section 1823 of this title in connection with the resolution of such in- stitution, the Corporation shall— (A) evaluate the likely impact of the means of resolution, and any action which the Corporation may take in connection with such resolution, on the viability of other insured depository institutions in the same community; and (B) take such evaluation into account in determining the means for resolving the in- stitution and establishing the terms and conditions for any such action. (i) Valuation of claims in default (1) In general Notwithstanding any other provision of Fed- eral law or the law of any State and regardless of the method which the Corporation deter- mines to utilize with respect to an insured de- pository institution in default or in danger of default, including transactions authorized under subsection (n) and section 1823(c) of this title, this subsection shall govern the rights of the creditors (other than insured depositors) of such institution. (2) Maximum liability The maximum liability of the Corporation, acting as receiver or in any other capacity, to any person having a claim against the receiver or the insured depository institution for which such receiver is appointed shall equal the amount such claimant would have received if the Corporation had liquidated the assets and liabilities of such institution without exer- cising the Corporation’s authority under sub- section (n) of this section or section 1823 of this title. (3) Additional payments authorized (A) In general The Corporation may, in its discretion and in the interests of minimizing its losses, use its own resources to make additional pay- ments or credit additional amounts to or with respect to or for the account of any claimant or category of claimants. Notwith- standing any other provision of Federal or State law, or the constitution of any State, the Corporation shall not be obligated, as a result of having made any such payment or credited any such amount to or with respect to or for the account of any claimant or cat- egory of claimants, to make payments to any other claimant or category of claim- ants. (B) Manner of payment The Corporation may make the payments or credit the amounts specified in subpara- graph (A) directly to the claimants or may make such payments or credit such amounts to an open insured depository institution to induce such institution to accept liability for such claims. (j) Limitation on court action Except as provided in this section, no court may take any action, except at the request of the Board of Directors by regulation or order, to restrain or affect the exercise of powers or func- tions of the Corporation as a conservator or a receiver. (k) Liability of directors and officers A director or officer of an insured depository institution may be held personally liable for monetary damages in any civil action by, on be- half of, or at the request or direction of the Cor- poration, which action is prosecuted wholly or partially for the benefit of the Corporation— (1) acting as conservator or receiver of such institution, (2) acting based upon a suit, claim, or cause of action purchased from, assigned by, or oth- erwise conveyed by such receiver or conser- vator, or (3) acting based upon a suit, claim, or cause of action purchased from, assigned by, or oth- erwise conveyed in whole or in part by an in- sured depository institution or its affiliate in connection with assistance provided under sec- tion 1823 of this title, for gross negligence, including any similar con- duct or conduct that demonstrates a greater dis- regard of a duty of care (than gross negligence) including intentional tortious conduct, as such terms are defined and determined under applica- ble State law. Nothing in this paragraph shall impair or affect any right of the Corporation under other applicable law. (l) Damages In any proceeding related to any claim against an insured depository institution’s director, offi- cer, employee, agent, attorney, accountant, ap- praiser, or any other party employed by or pro- viding services to an insured depository institu- tion, recoverable damages determined to result from the improvident or otherwise improper use or investment of any insured depository institu- tion’s assets shall include principal losses and appropriate interest. (m) New depository institutions (1) Organization authorized As soon as possible after the default of an in- sured depository institution, the Corporation, if it finds that it is advisable and in the inter- est of the depositors of the insured depository institution in default or the public shall orga- nize a new national bank or Federal savings association in the same community as the in- sured depository institution in default to as- sume the insured deposits of such depository institution in default and otherwise to per- form temporarily the functions hereinafter provided for. (2) Articles of association The articles of association and the organiza- tion certificate of the new depository institu- tion shall be executed by representatives des- ignated by the Corporation. (3) Capital stock No capital stock need be paid in by the Cor- poration. (4) Executive officer The new depository institution shall not have a board of directors, but shall be man- Page 1063 TITLE 12—BANKS AND BANKING § 1821 aged by an executive officer appointed by the Board of Directors of the Corporation who shall be subject to its directions. (5) Subject to laws relating to national banks In all other respects the new depository in- stitution shall be organized in accordance with the then existing provisions of law relat- ing to the organization of national banking as- sociations. (6) New deposits The new depository institution may, with the approval of the Corporation, accept new deposits which shall be subject to withdrawal on demand and which, except where the new depository institution is the only depository institution in the community, shall not exceed an amount equal to the standard maximum deposit insurance amount from any depositor. (7) Insured status The new depository institution, without ap- plication to or approval by the Corporation, shall be an insured depository institution and shall maintain on deposit with the Federal Re- serve bank of its district reserves in the amount required by law for member banks, but it shall not be required to subscribe for stock of the Federal Reserve bank. (8) Investments Funds of the new depository institution shall be kept on hand in cash, invested in obli- gations of the United States or obligations guaranteed as to principal and interest by the United States, or deposited with the Corpora- tion, any Federal Reserve bank, or, to the ex- tent of the insurance coverage on any such de- posit, an insured depository institution. (9) Conduct of business The new depository institution, unless oth- erwise authorized by the Comptroller of the Currency, shall transact business only as au- thorized by this chapter and as may be inci- dental to its organization. (10) Exempt status Notwithstanding any other provision of Fed- eral or State law, the new depository institu- tion, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any terri- tory, dependency, or possession thereof, or by any State, county, municipality, or local tax- ing authority. (11) Transfer of deposits (A) Upon the organization of a new deposi- tory institution, the Corporation shall promptly make available to it an amount equal to the estimated insured deposits of such depository institution in default plus the estimated amount of the expenses of operating the new depository institution, and shall de- termine as soon as possible the amount due each depositor for the depositor’s insured de- posit in the insured depository institution in default, and the total expenses of operation of the new depository institution. (B) Upon such determination, the amounts so estimated and made available shall be ad- justed to conform to the amounts so deter- mined. (12) Earnings Earnings of the new depository institution shall be paid over or credited to the Corpora- tion in such adjustment. (13) Losses If any new depository institution, during the period it continues its status as such, sustains any losses with respect to which it is not effec- tively protected except by reason of being an insured depository institution, the Corpora- tion shall furnish to it additional funds in the amount of such losses. (14) Payment of insured deposits (A) The new depository institution shall as- sume as transferred deposits the payment of the insured deposits of such depository insti- tution in default to each of its depositors. (B) Of the amounts so made available, the Corporation shall transfer to the new deposi- tory institution, in cash, such sums as may be necessary to enable it to meet its expenses of operation and immediate cash demands on such transferred deposits, and the remainder of such amounts shall be subject to with- drawal by the new depository institution on demand. (15) Issuance of stock (A) Whenever in the judgment of the Board of Directors it is desirable to do so, the Cor- poration shall cause capital stock of the new depository institution to be offered for sale on such terms and conditions as the Board of Di- rectors shall deem advisable in an amount suf- ficient, in the opinion of the Board of Direc- tors, to make possible the conduct of the busi- ness of the new depository institution on a sound basis. (B) The stockholders of the insured deposi- tory institution in default shall be given the first opportunity to purchase any shares of common stock so offered. (16) Issuance of certificate Upon proof that an adequate amount of cap- ital stock in the new depository institution has been subscribed and paid for in cash, the Comptroller of the Currency,5 shall require the articles of association and the organization certificate to be amended to conform to the requirements for the organization of a na- tional bank or Federal savings association, and thereafter, when the requirements of law with respect to the organization of a national bank or Federal savings association have been complied with, the Comptroller of the Cur- rency,5 shall issue to the depository institu- tion a certificate of authority to commence business, and thereupon the depository insti- tution shall cease to have the status of a new depository institution, shall be managed by di- rectors elected by its own shareholders, may exercise all the powers granted by law, and shall be subject to all provisions of law relat- ing to national banks or Federal savings asso- ciations. Such depository institution shall thereafter be an insured national bank or Fed- eral savings association, without certification to or approval by the Corporation. Page 1064 TITLE 12—BANKS AND BANKING § 1821 (17) Transfer to other institution If the capital stock of the new depository in- stitution is not offered for sale, or if an ade- quate amount of capital for such new deposi- tory institution is not subscribed and paid for, the Board of Directors may offer to transfer its business to any insured depository institu- tion in the same community which will take over its assets, assume its liabilities, and pay to the Corporation for such business such amount as the Board of Directors may deem adequate; or the Board of Directors in its dis- cretion may change the location of the new depository institution to the office of the Cor- poration or to some other place or may at any time wind up its affairs as herein provided. (18) Winding up Unless the capital stock of the new deposi- tory institution is sold or its assets are taken over and its liabilities are assumed by an in- sured depository institution as above provided within 2 years after the date of its organiza- tion, the Corporation shall wind up the affairs of such depository institution, after giving such notice, if any, as the Comptroller of the Currency,5 may require, and shall certify to the Comptroller of the Currency,5 the termi- nation of the new depository institution. Thereafter the Corporation shall be liable for the obligations of such depository institution and shall be the owner of its assets. (19) Applicability of certain laws The provisions of sections 181 and 182 of this title shall not apply to a new depository insti- tution under this subsection. (n) Bridge depository institutions (1) Organization (A) Purpose When 1 or more insured depository institu- tions are in default, or when the Corporation anticipates that 1 or more insured deposi- tory institutions may become in default, the Corporation may, in its discretion, organize, and the Office of the Comptroller of the Cur- rency, with respect to 1 or more insured banks or 1 or more insured savings associa- tions, shall charter, 1 or more national banks or Federal savings associations, as ap- propriate, with respect thereto with the powers and attributes of national banking associations or Federal savings associations, as applicable, subject to the provisions of this subsection, to be referred to as ‘‘bridge depository institutions’’. (B) Authorities Upon the granting of a charter to a bridge depository institution, the bridge depository institution may— (i) assume such deposits of such insured depository institution or institutions that is or are in default or in danger of default as the Corporation may, in its discretion, determine to be appropriate; (ii) assume such other liabilities (includ- ing liabilities associated with any trust business) of such insured depository insti- tution or institutions that is or are in de- fault or in danger of default as the Cor- poration may, in its discretion, determine to be appropriate; (iii) purchase such assets (including as- sets associated with any trust business) of such insured depository institution or in- stitutions that is or are in default or in danger of default as the Corporation may, in its discretion, determine to be appro- priate; and (iv) perform any other temporary func- tion which the Corporation may, in its dis- cretion, prescribe in accordance with this chapter. (C) Articles of association The articles of association and organiza- tion certificate of a bridge depository insti- tution as approved by the Corporation shall be executed by 3 representatives designated by the Corporation. (D) Interim directors A bridge depository institution shall have an interim board of directors consisting of not fewer than 5 nor more than 10 members appointed by the Corporation. (E) National bank or Federal savings associa- tion A bridge depository institution shall be or- ganized as a national bank, in the case of 1 or more insured banks, and as a Federal sav- ings association, in the case of 1 or more in- sured savings associations. (2) Chartering (A) Conditions A national bank or Federal savings asso- ciation may be chartered by the Comptroller of the Currency as a bridge depository insti- tution only if the Board of Directors deter- mines that— (i) the amount which is reasonably nec- essary to operate such bridge depository institution will not exceed the amount which is reasonably necessary to save the cost of liquidating, including paying the insured accounts of, 1 or more insured de- pository institutions in default or in dan- ger of default with respect to which the bridge depository institution is chartered; (ii) the continued operation of such in- sured depository institution or institu- tions in default or in danger of default with respect to which the bridge deposi- tory institution is chartered is essential to provide adequate banking services in the community where each such depository in- stitution in default or in danger of default is located; or (iii) the continued operation of such in- sured depository institution or institu- tions in default or in danger of default with respect to which the bridge deposi- tory institution is chartered is in the best interest of the depositors of such deposi- tory institution or institutions in default or in danger of default or the public. (B) Insured national bank or Federal savings association A bridge depository institution shall be an insured depository institution from the time Page 1065 TITLE 12—BANKS AND BANKING § 1821 6 So in original. Probably should be ‘‘Bridge depository institu- tion’’. 7 So in original. Probably should be ‘‘bridge depository institu- tions’’. it is chartered as a national bank or Federal savings association. (C) Bridge bank 6 treated as being in default for certain purposes A bridge depository institution shall be treated as an insured depository institution in default at such times and for such pur- poses as the Corporation may, in its discre- tion, determine. (D) Management A bridge depository institution, upon the granting of its charter, shall be under the management of a board of directors con- sisting of not fewer than 5 nor more than 10 members appointed by the Corporation. (E) Bylaws The board of directors of a bridge deposi- tory institution shall adopt such bylaws as may be approved by the Corporation. (3) Transfer of assets and liabilities (A) In general (i) Transfer upon grant of charter Upon the granting of a charter to a bridge depository institution pursuant to this subsection, the Corporation, as re- ceiver, or any other receiver appointed with respect to any insured depository in- stitution in default with respect to which the bridge depository institution is char- tered may transfer any assets and liabil- ities of such depository institution in de- fault to the bridge depository institution in accordance with paragraph (1). (ii) Subsequent transfers At any time after a charter is granted to a bridge depository institution, the Cor- poration, as receiver, or any other receiver appointed with respect to an insured de- pository institution in default may trans- fer any assets and liabilities of such in- sured depository institution in default as the Corporation may, in its discretion, de- termine to be appropriate in accordance with paragraph (1). (iii) Treatment of trust business For purposes of this paragraph, the trust business, including fiduciary appoint- ments, of any insured depository institu- tion in default is included among its assets and liabilities. (iv) Effective without approval The transfer of any assets or liabilities, including those associated with any trust business, of an insured depository institu- tion in default transferred to a bridge de- pository institution shall be effective without any further approval under Fed- eral or State law, assignment, or consent with respect thereto. (B) Intent of Congress regarding continuing operations It is the intent of the Congress that, in order to prevent unnecessary hardship or losses to the customers of any insured depos- itory institution in default with respect to which a bridge depository institution is chartered, especially creditworthy farmers, small businesses, and households, the Cor- poration should— (i) continue to honor commitments made by the depository institution in default to creditworthy customers, and (ii) not interrupt or terminate ade- quately secured loans which are trans- ferred under subparagraph (A) and are being repaid by the debtor in accordance with the terms of the loan instrument. (4) Powers of bridge banks 7 Each bridge depository institution chartered under this subsection shall have all corporate powers of, and be subject to the same provi- sions of law as, a national bank or Federal savings association, as appropriate, except that— (A) the Corporation may— (i) remove the interim directors and di- rectors of a bridge depository institution; (ii) fix the compensation of members of the interim board of directors and the board of directors and senior management, as determined by the Corporation in its discretion, of a bridge depository institu- tion; and (iii) waive any requirement established under section 71, 72, 73, 74, or 75 of this title (relating to directors of national banks) or section 71a of this title which would otherwise be applicable with respect to directors of a bridge depository institu- tion by operation of paragraph (2)(B); (B) the Corporation may indemnify the representatives for purposes of paragraph (1)(B) and the interim directors, directors, officers, employees, and agents of a bridge depository institution on such terms as the Corporation determines to be appropriate; (C) no requirement under any provision of law relating to the capital of a national bank shall apply with respect to a bridge de- pository institution; (D) the Comptroller of the Currency may establish a limitation on the extent to which any person may become indebted to a bridge depository institution without regard to the amount of the bridge depository institu- tion’s capital or surplus; (E)(i) the board of directors of a bridge de- pository institution shall elect a chairperson who may also serve in the position of chief executive officer, except that such person shall not serve either as chairperson or as chief executive officer without the prior ap- proval of the Corporation; and (ii) the board of directors of a bridge de- pository institution may appoint a chief ex- ecutive officer who is not also the chair- person, except that such person shall not serve as chief executive officer without the prior approval of the Corporation; (F) a bridge depository institution shall not be required to purchase stock of any Federal Reserve bank; Page 1066 TITLE 12—BANKS AND BANKING § 1821 (G) the Comptroller of the Currency shall waive any requirement for a fidelity bond with respect to a bridge depository institu- tion at the request of the Corporation; (H) any judicial action to which a bridge depository institution becomes a party by virtue of its acquisition of any assets or as- sumption of any liabilities of a depository institution in default shall be stayed from further proceedings for a period of up to 45 days at the request of the bridge depository institution; (I) no agreement which tends to diminish or defeat the right, title or interest of a bridge depository institution in any asset of an insured depository institution in default acquired by it shall be valid against the bridge depository institution unless such agreement— (i) is in writing, (ii) was executed by such insured deposi- tory institution in default and the person or persons claiming an adverse interest thereunder, including the obligor, contem- poraneously with the acquisition of the asset by such insured depository institu- tion in default, (iii) was approved by the board of direc- tors of such insured depository institution in default or its loan committee, which ap- proval shall be reflected in the minutes of said board or committee, and (iv) has been, continuously from the time of its execution, an official record of such insured depository institution in de- fault; (J) notwithstanding section 1823(e)(2) of this title, any agreement relating to an ex- tension of credit between a Federal home loan bank or Federal Reserve bank and any insured depository institution which was ex- ecuted before the extension of credit by such bank to such depository institution shall be treated as having been executed contem- poraneously with such extension of credit for purposes of subparagraph (I); and (K) except with the prior approval of the Corporation, a bridge depository institution may not, in any transaction or series of transactions, issue capital stock or be a party to any merger, consolidation, disposi- tion of assets or liabilities, sale or exchange of capital stock, or similar transaction, or change its charter. (5) Capital (A) No capital required The Corporation shall not be required to— (i) issue any capital stock on behalf of a bridge depository institution chartered under this subsection; or (ii) purchase any capital stock of a bridge depository institution, except that notwithstanding any other provision of Federal or State law, the Corporation may purchase and retain capital stock of a bridge depository institution in such amounts and on such terms as the Cor- poration, in its discretion, determines to be appropriate. (B) Operating funds in lieu of capital Upon the organization of a bridge deposi- tory institution, and thereafter, as the Board of Directors may, in its discretion, de- termine to be necessary or advisable, the Corporation may make available to the bridge depository institution, upon such terms and conditions and in such form and amounts as the Corporation may in its dis- cretion determine, funds for the operation of the bridge depository institution in lieu of capital. (C) Authority to issue capital stock Whenever the Board of Directors deter- mines it is advisable to do so, the Corpora- tion shall cause capital stock of a bridge de- pository institution to be issued and offered for sale in such amounts and on such terms and conditions as the Corporation may, in its discretion, determine. (D) Capital levels A bridge depository institution shall not be considered an undercapitalized depository institution or a critically undercapitalized depository institution for purposes of sec- tion 347b(b) of this title. (6) No Federal status (A) Agency status A bridge depository institution is not an agency, establishment, or instrumentality of the United States. (B) Employee status Representatives for purposes of paragraph (1)(B), interim directors, directors, officers, employees, or agents of a bridge depository institution are not, solely by virtue of serv- ice in any such capacity, officers or employ- ees of the United States. Any employee of the Corporation or of any Federal instru- mentality who serves at the request of the Corporation as a representative for purposes of paragraph (1)(B), interim director, direc- tor, officer, employee, or agent of a bridge depository institution shall not— (i) solely by virtue of service in any such capacity lose any existing status as an of- ficer or employee of the United States for purposes of title 5 or any other provision of law, or (ii) receive any salary or benefits for service in any such capacity with respect to a bridge depository institution in addi- tion to such salary or benefits as are ob- tained through employment with the Cor- poration or such Federal instrumentality. (7) Assistance authorized The Corporation may, in its discretion, pro- vide assistance under section 1823(c) of this title to facilitate any transaction described in clause (i), (ii), or (iii) of paragraph (10)(A) with respect to any bridge depository institution in the same manner and to the same extent as such assistance may be provided under such section with respect to an insured depository institution in default, or to facilitate a bridge depository institution’s acquisition of any as- sets or the assumption of any liabilities of an insured depository institution in default. Page 1067 TITLE 12—BANKS AND BANKING § 1821 8 So in original. (8) Acquisition (A) In general The responsible agency shall notify the Attorney General of any transaction involv- ing the merger or sale of a bridge depository institution requiring approval under section 1828(c) of this title and if a report on com- petitive factors is requested within 10 days, such transaction may not be consummated before the 5th calendar day after the date of approval by the responsible agency with re- spect thereto. If the responsible agency has found that it must act immediately to pre- vent the probable failure of 1 of the deposi- tory institutions involved, the preceding sentence does not apply and the transaction may be consummated immediately upon ap- proval by the agency. (B) By out-of-State holding company Any depository institution, including an out-of-State depository institution, or any out-of-State depository institution holding company may acquire and retain the capital stock or assets of, or otherwise acquire and retain a bridge depository institution if the bridge depository institution at any time had assets aggregating $500,000,000 or more, as determined by the Corporation on the basis of the bridge depository institution’s reports of condition or on the basis of the last available reports of condition of any in- sured depository institution in default, which institution has been acquired, or whose assets have been acquired, by the bridge depository institution. The acquiring entity may acquire the bridge depository in- stitution only in the same manner and to the same extent as such entity may acquire an insured depository institution in default under section 1823(f)(2) of this title. (9) Duration of bridge depository institution Subject to paragraphs (11) and (12), the sta- tus of a bridge depository institution as such shall terminate at the end of the 2-year period following the date it was granted a charter. The Board of Directors may, in its discretion, extend the status of the bridge depository in- stitution as such for 3 additional 1-year peri- ods. (10) Termination of bridge depository institu- tion status The status of any bridge depository institu- tion as such shall terminate upon the earliest of— (A) the merger or consolidation of the bridge depository institution with a deposi- tory institution that is not a bridge deposi- tory institution; (B) at the election of the Corporation, the sale of a majority of the capital stock of the bridge depository institution to an entity other than the Corporation and other than another bridge depository institution; (C) the sale of 80 percent, or more, of the capital stock of the bridge depository insti- tution to an entity other than the Corpora- tion and other than another bridge deposi- tory institution; (D) at the election of the Corporation, ei- ther the assumption of all or substantially all of the deposits and other liabilities of the bridge depository institution by a depository institution holding company or a depository institution that is not a bridge depository institution, or the acquisition of all or sub- stantially all of the assets of the bridge de- pository institution by a depository institu- tion holding company, a depository institu- tion that is not a bridge depository institu- tion, or other entity as permitted under ap- plicable law; and (E) the expiration of the period provided in paragraph (9), or the earlier dissolution of the bridge depository institution as provided in paragraph (12). (11) Effect of termination events (A) Merger or consolidation A bridge depository institution that par- ticipates in a merger or consolidation as provided in paragraph (10)(A) shall be for all purposes a national bank or a Federal sav- ings association, as the case may be, with all the rights, powers, and privileges thereof, and such merger or consolidation shall be conducted in accordance with, and shall have the effect provided in, the provisions of applicable law. (B) Charter conversion Following the sale of a majority of the capital stock of the bridge depository insti- tution as provided in paragraph (10)(B), the Corporation may amend the charter of the bridge depository institution to reflect the termination of the status of the bridge de- pository institution as such, whereupon the depository institution shall remain a na- tional bank or a Federal savings association, as the case may be,,8 with all of the rights, powers, and privileges thereof, subject to all laws and regulations applicable thereto. (C) Sale of stock Following the sale of 80 percent or more of the capital stock of a bridge depository in- stitution as provided in paragraph (10)(C), the depository institution shall remain a na- tional bank or a Federal savings association, as the case may be,,8 with all of the rights, powers, and privileges thereof, subject to all laws and regulations applicable thereto. (D) Assumption of liabilities and sale of as- sets Following the assumption of all or sub- stantially all of the liabilities of the bridge depository institution, or the sale of all or substantially all of the assets of the bridge depository institution, as provided in para- graph (10)(D), at the election of the Corpora- tion the bridge depository institution may retain its status as such for the period pro- vided in paragraph (9). (E) Effect on holding companies A depository institution holding company acquiring a bridge depository institution Page 1068 TITLE 12—BANKS AND BANKING § 1821 under section 1823(f) of this title, paragraph (8)(B) (or any predecessor provision), or both provisions, shall not be impaired or ad- versely affected by the termination of the status of a bridge depository institution as a result of subparagraph (A), (B), (C), or (D) of paragraph (10), and shall be entitled to the rights and privileges provided in section 1823(f) of this title. (F) Amendments to charter Following the consummation of a trans- action described in subparagraph (A), (B), (C), or (D) of paragraph (10), the charter of the resulting institution shall be amended to reflect the termination of bridge depository institution status, if appropriate. (12) Dissolution of bridge depository institu- tion (A) In general Notwithstanding any other provision of State or Federal law, if the bridge deposi- tory institution’s status as such has not pre- viously been terminated by the occurrence of an event specified in subparagraph (A), (B), (C), or (D) of paragraph (10)— (i) the Board of Directors may, in its dis- cretion, dissolve a bridge depository insti- tution in accordance with this paragraph at any time; and (ii) the Board of Directors shall prompt- ly commence dissolution proceedings in accordance with this paragraph upon the expiration of the 2-year period following the date the bridge depository institution was chartered, or any extension thereof, as provided in paragraph (9). (B) Procedures The Comptroller of the Currency shall ap- point the Corporation as receiver for a bridge depository institution upon certifi- cation by the Board of Directors to the Comptroller of the Currency of its deter- mination to dissolve the bridge depository institution. The Corporation as such re- ceiver shall wind up the affairs of the bridge depository institution in conformity with the provisions of law relating to the liquida- tion of closed national banks or Federal sav- ings associations, as appropriate. With re- spect to any such bridge depository institu- tion, the Corporation as such receiver shall have all the rights, powers, and privileges and shall perform the duties related to the exercise of such rights, powers, or privileges granted by law to a receiver of any insured depository institution and notwithstanding any other provision of law in the exercise of such rights, powers, and privileges the Cor- poration shall not be subject to the direction or supervision of any State agency or other Federal agency. (13) Multiple bridge depository institutions Subject to paragraph (1)(B)(i), the Corpora- tion may, in the Corporation’s discretion, or- ganize 2 or more bridge depository institutions under this subsection to assume any deposits of, assume any other liabilities of, and pur- chase any assets of a single depository institu- tion in default. (o) Supervisory records In addition to the requirements of section 1817(a)(2) of this title to provide to the Corpora- tion copies of reports of examination and re- ports of condition, whenever the Corporation has been appointed as receiver for an insured de- pository institution, the appropriate Federal banking agency shall make available all super- visory records to the receiver which may be used by the receiver in any manner the receiver de- termines to be appropriate. (p) Certain sales of assets prohibited (1) Persons who engaged in improper conduct with, or caused losses to, depository insti- tutions The Corporation shall prescribe regulations which, at a minimum, shall prohibit the sale of assets of a failed institution by the Corpora- tion to— (A) any person who— (i) has defaulted, or was a member of a partnership or an officer or director of a corporation that has defaulted, on 1 or more obligations the aggregate amount of which exceed $1,000,000, to such failed in- stitution; (ii) has been found to have engaged in fraudulent activity in connection with any obligation referred to in clause (i); and (iii) proposes to purchase any such asset in whole or in part through the use of the proceeds of a loan or advance of credit from the Corporation or from any institu- tion for which the Corporation has been appointed as conservator or receiver; (B) any person who participated, as an offi- cer or director of such failed institution or of any affiliate of such institution, in a ma- terial way in transactions that resulted in a substantial loss to such failed institution; (C) any person who has been removed from, or prohibited from participating in the af- fairs of, such failed institution pursuant to any final enforcement action by an appro- priate Federal banking agency; or (D) any person who has demonstrated a pattern or practice of defalcation regarding obligations to such failed institution. (2) Convicted debtors Except as provided in paragraph (3), any per- son who— (A) has been convicted of an offense under section 215, 656, 657, 1005, 1006, 1007, 1008,2 1014, 1032, 1341, 1343, or 1344 of title 18 or of conspiring to commit such an offense, affect- ing any insured depository institution for which any conservator or receiver has been appointed; and (B) is in default on any loan or other ex- tension of credit from such insured deposi- tory institution which, if not paid, will cause substantial loss to the institution, the Deposit Insurance Fund, or the Corporation, may not purchase any asset of such institu- tion from the conservator or receiver. (3) Settlement of claims Paragraphs (1) and (2) shall not apply to the sale or transfer by the Corporation of any Page 1069 TITLE 12—BANKS AND BANKING § 1821 9 So in original. Probably should be ‘‘title 28,’’. 10 So in original. Probably should be preceded by ‘‘The’’. asset of any insured depository institution to any person if the sale or transfer of the asset resolves or settles, or is part of the resolution or settlement, of— (A) 1 or more claims that have been, or could have been, asserted by the Corporation against the person; or (B) obligations owed by the person to any insured depository institution or the Cor- poration. (4) ‘‘Default’’ defined For purposes of this subsection, the term ‘‘default’’ means a failure to comply with the terms of a loan or other obligation to such an extent that the property securing the obliga- tion is foreclosed upon. (q) Expedited procedures for certain claims (1) Time for filing notice of appeal The notice of appeal of any order, whether interlocutory or final, entered in any case brought by the Corporation against an insured depository institution’s director, officer, em- ployee, agent, attorney, accountant, or ap- praiser or any other person employed by or providing services to an insured depository in- stitution shall be filed not later than 30 days after the date of entry of the order. The hear- ing of the appeal shall be held not later than 120 days after the date of the notice of appeal. The appeal shall be decided not later than 180 days after the date of the notice of appeal. (2) Scheduling Consistent with section 1657 of title 18,9 a court of the United States shall expedite the consideration of any case brought by the Cor- poration against an insured depository institu- tion’s director, officer, employee, agent, attor- ney, accountant, or appraiser or any other per- son employed by or providing services to an insured depository institution. As far as prac- ticable the court shall give such case priority on its docket. (3) Judicial discretion The court may modify the schedule and lim- itations stated in paragraphs (1) and (2) in a particular case, based on a specific finding that the ends of justice that would be served by making such a modification would out- weigh the best interest of the public in having the case resolved expeditiously. (r) Foreign investigations The Corporation, as conservator or receiver of any insured depository institution and for pur- poses of carrying out any power, authority, or duty with respect to an insured depository insti- tution— (1) may request the assistance of any foreign banking authority and provide assistance to any foreign banking authority in accordance with section 1818(v) of this title; and (2) may each maintain an office to coordi- nate foreign investigations or investigations on behalf of foreign banking authorities. (s) Prohibition on entering secrecy agreements and protective orders The Corporation may not enter into any agreement or approve any protective order which prohibits the Corporation from disclosing the terms of any settlement of an administra- tive or other action for damages or restitution brought by the Corporation in its capacity as conservator or receiver for an insured deposi- tory institution. (t) Agencies may share information without waiving privilege (1) In general A covered agency, in any capacity, shall not be deemed to have waived any privilege appli- cable to any information by transferring that information to or permitting that information to be used by— (A) any other covered agency, in any ca- pacity; or (B) any other agency of the Federal Gov- ernment (as defined in section 6 of title 18). (2) Definitions For purposes of this subsection: (A) Covered agency The term ‘‘covered agency’’ means any of the following: (i) Any Federal banking agency. (ii) The Farm Credit Administration. (iii) The Farm Credit System Insurance Corporation. (iv) The National Credit Union Adminis- tration. (v) The Government Accountability Of- fice. (vi) The Bureau of Consumer Financial Protection. (vii) Federal 10 Housing Finance Agency. (B) Privilege The term ‘‘privilege’’ includes any work- product, attorney-client, or other privilege recognized under Federal or State law. (3) Rule of construction Paragraph (1) shall not be construed as im- plying that any person waives any privilege applicable to any information because para- graph (1) does not apply to the transfer or use of that information. (u) Purchase rights of tenants (1) Notice Except as provided in paragraph (3), the Cor- poration may make available for sale a 1- to 4- family residence (including a manufactured home) to which the Corporation acquires title only after the Corporation has provided the household residing in the property notice (in writing and mailed to the property) of the availability of such property and the pref- erence afforded such household under para- graph (2). (2) Preference In selling such a property, the Corporation shall give preference to any bona fide offer made by the household residing in the prop- erty, if— (A) such offer is substantially similar in amount to other offers made within such pe- riod (or expected by the Corporation to be made within such period); Page 1070 TITLE 12—BANKS AND BANKING § 1821 (B) such offer is made during the period be- ginning upon the Corporation making such property available and of a reasonable dura- tion, as determined by the Corporation based on the normal period for sale of such properties; and (C) the household making the offer com- plies with any other requirements applicable to purchasers of such property, including any downpayment and credit requirements. (3) Exceptions Paragraphs (1) and (2) shall not apply to— (A) any residence transferred in connec- tion with the transfer of substantially all of the assets of an insured depository institu- tion for which the Corporation has been ap- pointed conservator or receiver; (B) any eligible single family property (as such term is defined in section 1831q(p) of this title; or (C) any residence for which the household occupying the residence was the mortgagor under a mortgage on such residence and to which the Corporation acquired title pursu- ant to default on such mortgage. (v) Preference for sales for homeless families Subject to subsection (u), in selling any real property (other than eligible residential prop- erty and eligible condominium property, as such terms are defined in section 1831q(p) of this title) to which the Corporation acquires title, the Corporation shall give preference among of- fers to purchase the property that will result in the same net present value proceeds, to any offer that would provide for the property to be used, during the remaining useful life of the property, to provide housing or shelter for homeless persons (as such term is defined in sec- tion 11302 of title 42) or homeless families. (w) Preferences for sales of certain commercial real properties (1) Authority In selling any eligible commercial real prop- erties of the Corporation, the Corporation shall give preference, among offers to purchase the property that will result in the same net present value proceeds, to any offer— (A) that is made by a public agency or non- profit organization; and (B) under which the purchaser agrees that the property shall be used, during the re- maining useful life of the property, for of- fices and administrative purposes of the pur- chaser to carry out a program to acquire res- idential properties to provide (i) homeowner- ship and rental housing opportunities for very-low-, low-, and moderate-income fami- lies, or (ii) housing or shelter for homeless persons (as such term is defined in section 11302 of title 42) or homeless families. (2) Definitions For purposes of this subsection, the fol- lowing definitions shall apply: (A) Eligible commercial real property The term ‘‘eligible commercial real prop- erty’’ means any property (i) to which the Corporation acquires title, and (ii) that the Corporation, in the discretion of the Cor- poration, determines is suitable for use for the location of offices or other administra- tive functions involved with carrying out a program referred to in paragraph (1)(B). (B) Nonprofit organization and public agency The terms ‘‘nonprofit organization’’ and ‘‘public agency’’ have the same meanings as in section 1831q(p) of this title. (Sept. 21, 1950, ch. 967, § 2[11], 64 Stat. 884; Pub. L. 89–695, title III, § 301(c), (d), Oct. 16, 1966, 80 Stat. 1055; Pub. L. 91–151, title I, § 7(a)(3), (4), Dec. 23, 1969, 83 Stat. 375; Pub. L. 93–495, title I, §§ 101(a)(3), 102(a)(3), (4), Oct. 28, 1974, 88 Stat. 1500, 1502; Pub. L. 95–369, § 6(c)(17)–(22), Sept. 17, 1978, 92 Stat. 619; Pub. L. 95–630, title XIV, § 1401(a), Nov. 10, 1978, 92 Stat. 3712; Pub. L. 96–153, title III, § 323(a), Dec. 21, 1979, 93 Stat. 1120; Pub. L. 96–221, title III, § 308(a)(1)(C), (D), Mar. 31, 1980, 94 Stat. 147; Pub. L. 97–110, title I, § 103(c), Dec. 26, 1981, 95 Stat. 1514; Pub. L. 97–320, title I, § 113(j), (k), Oct. 15, 1982, 96 Stat. 1474; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–86, title V, §§ 503(a), 507, Aug. 10, 1987, 101 Stat. 629, 634; Pub. L. 101–73, title II, §§ 201(a), 211–214, title IX, § 909, Aug. 9, 1989, 103 Stat. 187, 218–246, 477; Pub. L. 101–647, title XXV, §§ 2521(a)(1), 2526(a), 2527(a), 2528(a), 2532(b), 2534(a), Nov. 29, 1990, 104 Stat. 4863, 4875, 4877, 4880, 4882; Pub. L. 102–233, title I, § 102, title II, § 202(a), (b), title III, § 302(a), Dec. 12, 1991, 105 Stat. 1761, 1766, 1767; Pub. L. 102–242, title I, §§ 123(a), 133(a), (e), 141(b), (d), 161(a), (e), title II, § 241(c)(1), title III, § 311(a)(1), (b)(1), (2), (5)(B), (C), title IV, §§ 416, 426, 446, Dec. 19, 1991, 105 Stat. 2252, 2270, 2272, 2277, 2285, 2286, 2331, 2363, 2364, 2366, 2376, 2378, 2382; Pub. L. 102–550, title XV, §§ 1501(a), 1544, title XVI, §§ 1603(e)(1), 1604(c)(2), 1606(c), 1611(b), Oct. 28, 1992, 106 Stat. 4044, 4069, 4081, 4083, 4088, 4090; Pub. L. 103–66, title III, § 3001(a), (b), Aug. 10, 1993, 107 Stat. 336; Pub. L. 103–204, §§ 3(d), 4(b), 8(a)–(f), (i), 11, 15(b), 16(b), 17(b), 20, 27(b), 38(b), Dec. 17, 1993, 107 Stat. 2379, 2380, 2384–2389, 2399–2401, 2404, 2410, 2416; Pub. L. 103–325, title III, § 325, title IV, § 411(c)(2)(A), title VI, § 602(a)(21)–(33), Sept. 23, 1994, 108 Stat. 2228, 2253, 2289; Pub. L. 103–328, title II, § 201(a), Sept. 29, 1994, 108 Stat. 2368; Pub. L. 103–394, title V, § 501(c)(2), Oct. 22, 1994, 108 Stat. 4143; Pub. L. 104–208, div. A, title II, §§ 2602, 2704(d)(1)–(4), (6)(C), (14)(H), (I), 2705, Sept. 30, 1996, 110 Stat. 3009–469, 3009–487, 3009–488, 3009–492, 3009–495; Pub. L. 104–316, title I, § 106(i), Oct. 19, 1996, 110 Stat. 3831; Pub. L. 106–102, title I, § 117, title VII, § 736(a), (b)(2), Nov. 12, 1999, 113 Stat. 1372, 1479; Pub. L. 106–400, § 2, Oct. 30, 2000, 114 Stat. 1675; Pub. L. 106–569, title XII, § 1222, Dec. 27, 2000, 114 Stat. 3036; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 108–386, § 8(a)(4), Oct. 30, 2004, 118 Stat. 2231; Pub. L. 109–8, title IX, §§ 901(a)(1), (b)(1), (c)(1), (d)(1), (e)(1), (f)(1), (g)(1), (h)(1), (i)(1), 902(a), 903(a), 904(a), 905(a), 908(a), Apr. 20, 2005, 119 Stat. 146, 147, 149, 151, 152, 155, 157–160, 165, 166, 183; Pub. L. 109–171, title II, §§ 2102(b), 2103(a)–(c), Feb. 8, 2006, 120 Stat. 9, 11; Pub. L. 109–173, §§ 2(a), (c)(1), 8(a)(11)–(14), Feb. 15, 2006, 119 Stat. 3601, 3602, 3611, 3612; Pub. L. 109–351, title VII, §§ 701(b), 718(a), 721(a), 722(a), 724, Oct. 13, 2006, 120 Stat. 1985, 1997–1999, 2001; Pub. L. 109–390, §§ 2(a)(1), (b)(1), (c)(1), 3(a), 6(a), Dec. 12, Page 1071 TITLE 12—BANKS AND BANKING § 1821 2006, 120 Stat. 2692–2694, 2698; Pub. L. 110–289, div. A, title I, § 1161(i), title VI, § 1604(a), (c), (d), July 30, 2008, 122 Stat. 2781, 2826, 2829; Pub. L. 111–203, title III, §§ 335(a), 343(a)(1), (3), 363(5), July 21, 2010, 124 Stat. 1540, 1544, 1552; Pub. L. 111–343, § 1(a), Dec. 29, 2010, 124 Stat. 3609; Pub. L. 112–215, § 1(1), Dec. 20, 2012, 126 Stat. 1589.) Editorial Notes REFERENCES IN TEXT Section 1441a(b)(4) of this title, referred to in subsec. (d)(2)(I)(ii), was in the original ‘‘section 21A(b)(4)’’, which has been translated as reading ‘‘section 21A(b)(4) of the Federal Home Loan Bank Act’’, to reflect the probable intent of Congress. Section 1441a of this title was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. Section 1823(e)(2) of this title, referred to in subsec. (d)(9)(B), was redesignated section 1823(e)(1)(B) of this title by Pub. L. 103–325, title III, § 317(1), Sept. 23, 1994, 108 Stat. 2223. Section 1441a(b)(14) of this title, referred to in subsec. (d)(14)(A)(ii), was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. The Federal Rules of Civil Procedure, referred to in subsec. (d)(18), (19), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure. The Securities Exchange Act of 1934, referred to in subsec. (e)(8)(D)(v)(I), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see sec- tion 78a of Title 15 and Tables. The Gramm-Leach-Bliley Act, referred to in subsec. (e)(8)(D)(vi), (17), is Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338. For complete classification of this Act to the Code, see Short Title of 1999 Amendment note set out under section 1811 of this title and Tables. The Legal Certainty for Bank Products Act of 2000, referred to in subsec. (e)(8)(D)(vi), (17), is title IV of H.R. 5660, as enacted by Pub. L. 106–554, § 1(a)(5), Dec. 21, 2000, 114 Stat. 2763, 2763A–457, which is classified to sec- tions 27 to 27f of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title of 2000 Amendment note set out under section 1 of Title 7 and Tables. The Commodity Exchange Act, referred to in subsec. (e)(8)(D)(vi), (17), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Ta- bles. The Federal Deposit Insurance Corporation Improve- ment Act of 1991, referred to in subsec. (e)(13)(C)(ii), is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236. Subtitle A of title IV of the Act is classified generally to sub- chapter I (§ 4401 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under sec- tion 1811 of this title and Tables. Section 1008 of title 18, referred to in subsec. (p)(2)(A), was repealed by Pub. L. 101–73, title IX, § 961(g)(1), Aug. 9, 1989, 103 Stat. 500. CODIFICATION Amendments to subsec. (m) of this section by section 1604(a)(4)(J)(ii) of Pub. L. 110–289 were executed before amendments by section 1604(a)(4)(E) of Pub. L. 110–289, to reflect the probable intent of Congress. Amendments to subsec. (n) of this section by section 1604(a)(5)(I) of Pub. L. 110–289 were executed before amendments by section 1604(a)(5)(E) and (G) of Pub. L. 110–289, to reflect the probable intent of Congress. Amendments to subsec. (n) of this section by section 1604(a)(5)(O)(iv) and (P)(ii) of Pub. L. 110–289 were exe- cuted before amendments by section 1604(a)(5)(D) of Pub. L. 110–289, to reflect the probable intent of Con- gress. PRIOR PROVISIONS Section is derived from subsec. (l) of former section 264 of this title. See Codification note set out under section 1811 of this title. AMENDMENTS 2012—Subsec. (t)(2)(A)(vi). Pub. L. 112–215 added cl. (vi). 2010—Subsec. (a)(1)(B). Pub. L. 111–203, § 343(a)(3)(A)(i), substituted ‘‘The net amount’’ for ‘‘(i) IN GENERAL.— Subject to clause (ii), the net amount’’. Pub. L. 111–203, § 343(a)(1)(A), designated existing pro- visions as cl. (i), inserted heading, substituted ‘‘Subject to clause (ii), the net amount’’ for ‘‘The net amount’’, and added cls. (ii) and (iii). Subsec. (a)(1)(B)(ii). Pub. L. 111–203, § 343(a)(3)(A)(ii), struck out cl. (ii) which related to insurance for non- interest-bearing transaction accounts. Subsec. (a)(1)(B)(iii). Pub. L. 111–343 substituted ‘‘means—’’ for ‘‘means a deposit’’ in introductory pro- visions, inserted ‘‘(I) a deposit’’ before ‘‘or account maintained’’, redesignated former subcls. (I) to (III) as items (aa) to (cc) of subcl. (I), and added subcl. (II). Pub. L. 111–203, § 343(a)(3)(A)(ii), struck out cl. (iii), which defined ‘‘noninterest-bearing transaction ac- count’’. Subsec. (a)(1)(C). Pub. L. 111–203, § 343(a)(3)(B), sub- stituted ‘‘subparagraph (B)’’ for ‘‘subparagraph (B)(i)’’. Pub. L. 111–203, § 343(a)(1)(B), substituted ‘‘subpara- graph (B)(i)’’ for ‘‘subparagraph (B)’’. Subsec. (a)(1)(E). Pub. L. 111–203, § 335(a), substituted ‘‘$250,000,’’ for ‘‘$100,000,’’ and inserted at the end ‘‘Not- withstanding any other provision of law, the increase in the standard maximum deposit insurance amount to $250,000 shall apply to depositors in any institution for which the Corporation was appointed as receiver or conservator on or after January 1, 2008, and before Oc- tober 3, 2008. The Corporation shall take such actions as are necessary to carry out the requirements of this section with respect to such depositors, without regard to any time limitations under this chapter. In imple- menting this and the preceding 2 sentences, any pay- ment on a deposit claim made by the Corporation as re- ceiver or conservator to a depositor above the standard maximum deposit insurance amount in effect at the time of the appointment of the Corporation as receiver or conservator shall be deemed to be part of the net amount due to the depositor under subparagraph (B).’’ Subsec. (c)(2)(A)(ii). Pub. L. 111–203, § 363(5)(A)(i), struck out ‘‘(other than section 1441a of this title)’’ be- fore period at end. Subsec. (c)(4). Pub. L. 111–203, § 363(5)(A)(ii), sub- stituted ‘‘Notwithstanding’’ for ‘‘Except as otherwise provided in section 1441a of this title and notwith- standing’’ in introductory provisions. Subsec. (c)(6). Pub. L. 111–203, § 363(5)(A)(iii)(I), sub- stituted ‘‘Comptroller of the Currency’’ for ‘‘Director of the Office of Thrift Supervision’’ in heading. Subsec. (c)(6)(A). Pub. L. 111–203, § 363(5)(A)(iii)(II), struck out ‘‘or the Resolution Trust Corporation’’ be- fore ‘‘may, at the discretion’’ and substituted ‘‘Comp- troller of the Currency’’ for ‘‘Director of the Office of Thrift Supervision’’. Subsec. (c)(6)(B). Pub. L. 111–203, § 363(5)(A)(iii)(III), amended subpar. (B) generally. Prior to amendment, subpar. (B) related to appointment of the Corporation or the Resolution Trust Corporation as receiver under subpar. (A) or (C) of section 1464(d)(2) of this title for the purpose of liquidation or winding up any savings association’s affairs. Subsec. (c)(12)(A). Pub. L. 111–203, § 363(5)(A)(iv), struck out ‘‘or the Resolution Trust Corporation’’ be- fore ‘‘as conservator’’. Subsec. (d)(17)(A), (18)(B). Pub. L. 111–203, § 363(5)(B), struck out ‘‘or the Director of the Office of Thrift Su- pervision’’ after ‘‘Comptroller of the Currency’’. Subsec. (m)(9), (16), (18). Pub. L. 111–203, § 363(5)(C), struck out ‘‘or the Director of the Office of Thrift Su- pervision, as appropriate’’ after ‘‘Comptroller of the Currency’’ wherever appearing. Page 1072 TITLE 12—BANKS AND BANKING § 1821 Subsec. (n)(1)(A). Pub. L. 111–203, § 363(5)(D)(i), sub- stituted ‘‘insured banks or’’ for ‘‘insured banks, or the Director of the Office of Thrift Supervision, with re- spect to’’ and ‘‘applicable,’’ for ‘‘applicable,,’’. Subsec. (n)(2)(A). Pub. L. 111–203, § 363(5)(D)(ii), struck out ‘‘or the Director of the Office of Thrift Super- vision’’ before ‘‘as a bridge’’ in introductory provisions. Subsec. (n)(4)(D), (G). Pub. L. 111–203, § 363(5)(D)(iii), (iv), struck out ‘‘and the Director of the Office of Thrift Supervision, as appropriate,’’ after ‘‘Comptroller of the Currency’’. Subsec. (n)(12)(B). Pub. L. 111–203, § 363(5)(D)(v), in- serted ‘‘as’’ after ‘‘shall appoint the Corporation’’ and struck out ‘‘or the Director of the Office of Thrift Su- pervision, as appropriate,’’ after ‘‘Comptroller of the Currency’’ in two places. Subsec. (p)(2)(B). Pub. L. 111–203, § 363(5)(E)(i), sub- stituted ‘‘or the Corporation,’’ for ‘‘the Corporation, the FSLIC Resolution Fund, or the Resolution Trust Corporation,’’. Subsec. (p)(3)(B). Pub. L. 111–203, § 363(5)(E)(ii), struck out ‘‘, the FSLIC Resolution Fund, the Resolution Trust Corporation,’’ before ‘‘or the Corporation.’’ Subsec. (r). Pub. L. 111–203, § 363(5)(F), struck out ‘‘and the Resolution Trust Corporation’’ before ‘‘, as conservator’’ in introductory provisions. 2008—Subsec. (d)(2)(F). Pub. L. 110–289, § 1604(a)(1)(A), substituted ‘‘as receiver, with respect to any insured depository institution, organize a new depository insti- tution under subsection (m) or a bridge depository in- stitution under subsection (n).’’ for ‘‘as receiver— ‘‘(i) with respect to savings associations and by ap- plication to the Director of the Office of Thrift Su- pervision, organize a new Federal savings association to take over such assets or such liabilities as the Cor- poration may determine to be appropriate; and ‘‘(ii) with respect to any insured bank, organize a new national bank under subsection (m) of this sec- tion or a bridge bank under subsection (n) of this sec- tion.’’ Subsec. (d)(2)(G)(ii). Pub. L. 110–289, § 1604(a)(1)(B), substituted ‘‘new depository institution or a bridge de- pository institution’’ for ‘‘new bank or a bridge bank’’. Subsec. (e)(10)(C). Pub. L. 110–289, § 1604(a)(2), sub- stituted ‘‘bridge depository institutions’’ for ‘‘bridge banks’’ in heading. Subsec. (e)(10)(C)(i). Pub. L. 110–289, § 1604(a)(3), sub- stituted ‘‘bridge depository institution’’ for ‘‘bridge bank’’. Subsec. (m). Pub. L. 110–289, § 1604(a)(4)(A)–(E), sub- stituted ‘‘depository institutions’’ for ‘‘banks’’ in head- ing, ‘‘the insured depository institution in default to’’ for ‘‘the bank in default to’’ in par. (1), ‘‘the insured de- pository institution in default, and’’ for ‘‘the bank in default, and’’ in par. (11), ‘‘insured depository institu- tion’’ for ‘‘insured bank’’ wherever appearing in pars. (1), (11)(A), (13), and (15)(B), and ‘‘new depository insti- tution’’ for ‘‘new bank’’ and ‘‘such depository institu- tion’’ for ‘‘such bank’’ wherever appearing in text. See Codification note above. Subsec. (m)(1). Pub. L. 110–289, § 1604(a)(4)(F), inserted ‘‘or Federal savings association’’ after ‘‘national bank’’. Subsec. (m)(6). Pub. L. 110–289, § 1604(a)(4)(G), sub- stituted ‘‘only depository institution’’ for ‘‘only bank’’. Subsec. (m)(9). Pub. L. 110–289, § 1604(a)(4)(H), inserted ‘‘or the Director of the Office of Thrift Supervision, as appropriate’’ after ‘‘Comptroller of the Currency’’. Subsec. (m)(15)(A). Pub. L. 110–289, § 1604(a)(4)(I), struck out ‘‘, but in no event less than that required by section 51 of this title for the organization of a national bank in the place where such new bank is located’’ be- fore period at end. Subsec. (m)(16). Pub. L. 110–289, § 1604(a)(4)(j)(iii)–(v), inserted ‘‘or Federal savings association’’ after ‘‘na- tional bank’’ wherever appearing and ‘‘or Federal sav- ings associations’’ after ‘‘national banks’’ and sub- stituted ‘‘Such depository institution’’ for ‘‘Such bank’’. Pub. L. 110–289, § 1604(a)(4)(J)(ii), substituted ‘‘the de- pository institution’’ for ‘‘the bank’’ in two places. See Codification note above. Pub. L. 110–289, § 1604(a)(4)(J)(i), inserted ‘‘or the Di- rector of the Office of Thrift Supervision, as appro- priate,’’ after ‘‘Comptroller of the Currency’’ in two places. Subsec. (m)(18). Pub. L. 110–289, § 1604(a)(4)(K), in- serted ‘‘or the Director of the Office of Thrift Super- vision, as appropriate,’’ after ‘‘Comptroller of the Cur- rency’’ in two places. Subsec. (n). Pub. L. 110–289, § 1604(a)(5)(A)–(I), in head- ing substituted ‘‘depository institutions’’ for ‘‘banks’’ and in text substituted, wherever appearing, ‘‘bridge depository institution’’ for ‘‘bridge bank’’, ‘‘bridge de- pository institutions’’ for ‘‘bridge banks’’ except in par. (1)(A), ‘‘bridge depository institution’s’’ for ‘‘bridge bank’s’’, ‘‘insured depository institution’’ for ‘‘insured bank’’ in pars. (2), (3), (4)(I), (7), and (8)(B), ‘‘insured de- pository institutions’’ for ‘‘insured banks’’, ‘‘such de- pository institution’’ for ‘‘such bank’’ except in par. (4)(J), ‘‘the depository institution’’ for ‘‘the bank’’, and ‘‘depository institution or institutions’’ for ‘‘bank or banks’’. See Codification note above. Subsec. (n)(1)(A). Pub. L. 110–289, § 1604(a)(5)(J), in- serted ‘‘, with respect to 1 or more insured banks, or the Director of the Office of Thrift Supervision, with respect to 1 or more insured savings associations,’’ after ‘‘Comptroller of the Currency’’, ‘‘or Federal sav- ings associations, as appropriate,’’ after ‘‘national banks’’, and ‘‘or Federal savings associations, as appli- cable,’’ after ‘‘banking associations’’, and substituted ‘‘as ‘bridge depository institutions’ ’’ for ‘‘as bridge banks’’. Subsec. (n)(1)(B)(i). Pub. L. 110–289, § 1604(c), struck out ‘‘, except that if any insured deposits are assumed, all insured deposits shall be assumed by the bridge bank or another insured depository institution’’ before semicolon at end. Pub. L. 110–289, § 1604(a)(5)(K), struck out ‘‘of a bank’’ after ‘‘any insured deposits’’ and ‘‘of that bank’’ after ‘‘all insured deposits’’. Subsec. (n)(1)(E). Pub. L. 110–289, § 1604(a)(5)(L), (M), inserted ‘‘or Federal savings association’’ after ‘‘Na- tional bank’’ in heading and ‘‘, in the case of 1 or more insured banks, and as a Federal savings association, in the case of 1 or more insured savings associations’’ after ‘‘national bank’’ in text. Subsec. (n)(2)(A). Pub. L. 110–289, § 1604(a)(5)(N)(i), (ii), inserted ‘‘or Federal savings association’’ after ‘‘na- tional bank’’ and ‘‘or the Director of the Office of Thrift Supervision’’ after ‘‘Comptroller of the Cur- rency’’ in introductory provisions. Subsec. (n)(2)(B). Pub. L. 110–289, § 1604(a)(5)(N)(i), (iii), inserted ‘‘or Federal savings association’’ after ‘‘national bank’’ in heading and introductory provi- sions. Subsec. (n)(4). Pub. L. 110–289, § 1604(a)(5)(O)(i), in- serted ‘‘or Federal savings association, as appropriate’’ after ‘‘national bank’’ in introductory provisions. Subsec. (n)(4)(C). Pub. L. 110–289, § 1604(a)(5)(O)(ii), substituted ‘‘under any’’ for ‘‘under section 51 of this title or any other’’. Subsec. (n)(4)(D). Pub. L. 110–289, § 1604(a)(5)(O)(iv), substituted ‘‘depository institution’s’’ for ‘‘bank’s’’. See Codification note above. Pub. L. 110–289, § 1604(a)(5)(O)(iii), inserted ‘‘and the Director of the Office of Thrift Supervision, as appro- priate,’’ after ‘‘Comptroller of the Currency’’. Subsec. (n)(4)(G). Pub. L. 110–289, § 1604(a)(5)(O)(iii), inserted ‘‘and the Director of the Office of Thrift Super- vision, as appropriate,’’ after ‘‘Comptroller of the Cur- rency’’. Subsec. (n)(4)(H). Pub. L. 110–289, § 1604(a)(5)(O)(v), substituted ‘‘a depository institution in default’’ for ‘‘a bank in default’’. Subsec. (n)(5)(D). Pub. L. 110–289, § 1604(d), added sub- par. (D). Subsec. (n)(8)(A). Pub. L. 110–289, § 1604(a)(5)(P)(i), sub- stituted ‘‘the depository institutions’’ for ‘‘the banks’’. Subsec. (n)(8)(B). Pub. L. 110–289, § 1604(a)(5)(P)(ii), substituted ‘‘depository institution’s’’ for ‘‘bank’s’’. See Codification note above. Page 1073 TITLE 12—BANKS AND BANKING § 1821 Subsec. (n)(9), (10). Pub. L. 110–289, § 1604(a)(5)(Q), sub- stituted ‘‘bridge depository institution’’ for ‘‘bridge bank’’ in heading. Subsec. (n)(11)(A) to (C). Pub. L. 110–289, § 1604(a)(5)(R), inserted ‘‘or a Federal savings associa- tion, as the case may be,’’ after ‘‘national bank’’. Subsec. (n)(12). Pub. L. 110–289, § 1604(a)(5)(Q), sub- stituted ‘‘bridge depository institution’’ for ‘‘bridge bank’’ in heading. Subsec. (n)(12)(B). Pub. L. 110–289, § 1604(a)(5)(S), in- serted ‘‘or the Director of the Office of Thrift Super- vision, as appropriate,’’ after ‘‘Comptroller of the Cur- rency’’ in two places and ‘‘or Federal savings associa- tions, as appropriate’’ after ‘‘national banks’’. Subsec. (n)(13). Pub. L. 110–289, § 1604(a)(5)(Q), (T), sub- stituted ‘‘bridge depository institutions’’ for ‘‘bridge banks’’ in heading and ‘‘single depository institution’’ for ‘‘single bank’’ in text. Subsec. (t)(2)(A)(vii). Pub. L. 110–289, § 1161(i), added cl. (vii). 2006—Subsec. (a)(1)(B). Pub. L. 109–171, § 2103(a)(1), added subpar. (B) and struck out heading and text of former subpar. (B). Text read as follows: ‘‘The net amount due to any depositor at an insured depository institution shall not exceed $100,000 as determined in accordance with subparagraphs (C) and (D).’’ Subsec. (a)(1)(D). Pub. L. 109–171, § 2103(b), amended heading and text of subpar. (D) generally. Prior to amendment, subpar. (D) provided that for the purpose of determining the amount of insurance due under sub- par. (B), the Corporation was to provide deposit insur- ance coverage with respect to deposits accepted by any insured depository institution on a pro rata or ‘‘pass- through’’ basis to a participant in or beneficiary of an employee benefit plan, including any eligible deferred compensation plan described in section 457 of title 26. Subsec. (a)(1)(E), (F). Pub. L. 109–171, § 2103(a)(2), added subpars. (E) and (F). Subsec. (a)(2). Pub. L. 109–173, § 2(a), inserted par. (2) heading and substituted subpar. (A) and heading and in- troductory provisions of subpar. (B) for introductory provisions of former subpar. (A) which related to excep- tion to limitation relating to the amount of deposit in- surance available for the account of any one depositor, struck out concluding provisions of former subpar. (A) which related to the status of certain depositors under former provisions, redesignated former subpar. (B) as (C), inserted heading, and substituted ‘‘government de- positor’’ for ‘‘depositor referred to in subparagraph (A) of this paragraph’’ in two places. Subsec. (a)(3)(A). Pub. L. 109–171, § 2103(c), in con- cluding provisions substituted ‘‘$250,000 (which amount shall be subject to inflation adjustments as provided in paragraph (1)(F), except that $250,000 shall be sub- stituted for $100,000 wherever such term appears in such paragraph)’’ for ‘‘$100,000’’. Subsec. (a)(4). Pub. L. 109–173, § 8(a)(11)(B), added par. (4) and struck out former par. (4) which set out general provisions relating to the Bank Insurance Fund and the Savings Association Insurance Fund. Pub. L. 109–171, § 2102(b), repealed Pub. L. 104–208, § 2704(d)(1)–(3). See 1996 Amendment notes below. Subsec. (a)(5) to (8). Pub. L. 109–173, § 8(a)(11)(C), (D), redesignated par. (8) as (5) and struck out former pars. (5) to (7), which related to the establishment and oper- ations of the Bank Insurance Fund and Savings Asso- ciation Insurance Fund and provisions applicable to maintenance of accounts. Pub. L. 109–171, § 2102(b), repealed Pub. L. 104–208, § 2704(d)(6)(C). See 1996 Amendment notes below. Subsec. (c)(5)(H)(iii). Pub. L. 109–173, § 8(a)(11)(A), sub- stituted ‘‘Deposit Insurance Fund’’ for ‘‘deposit insur- ance fund’’. Subsec. (c)(7). Pub. L. 109–351, § 701(b), reenacted head- ing without change and amended text generally. Prior to amendment, text read as follows: ‘‘If the Corporation appoints itself as conservator or receiver under para- graph (4), the insured State depository institution may, within 30 days thereafter, bring an action in the United States district court for the judicial district in which the home office of such institution is located, or in the United States District Court for the District of Colum- bia, for an order requiring the Corporation to remove itself as such conservator or receiver, and the court shall, upon the merits, dismiss such action or direct the Corporation to remove itself as such conservator or receiver.’’ Subsec. (c)(10). Pub. L. 109–173, § 8(a)(11)(A), sub- stituted ‘‘Deposit Insurance Fund’’ for ‘‘deposit insur- ance fund’’ in heading and cls. (i) and (ii) of subpar. (B). Subsec. (d)(15)(D). Pub. L. 109–351, § 722(a), designated existing provisions as cl. (i), inserted heading, sub- stituted ‘‘Except as provided in clause (ii), after the end of the 6-year period’’ for ‘‘After the end of the 6-year period’’, and added cl. (ii). Subsec. (e)(8)(D)(ii)(I). Pub. L. 109–390, § 2(a)(1)(A), substituted ‘‘a mortgage loan,’’ for ‘‘a mortgage loan, or’’ after ‘‘certificate of deposit,’’ and inserted before semicolon at end ‘‘(whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agree- ment’, as defined in clause (v))’’. Subsec. (e)(8)(D)(ii)(IV). Pub. L. 109–390, § 2(a)(1)(B), inserted ‘‘(including by novation)’’ after ‘‘the guar- antee’’ and ‘‘(whether or not such settlement is in con- nection with any agreement or transaction referred to in subclauses (I) through (XII) (other than subclause (II))’’ before semicolon at end. Subsec. (e)(8)(D)(ii)(VI) to (VIII). Pub. L. 109–390, § 2(a)(1)(D), (E), added subcls. (VI) and (VII) and redesig- nated former subcl. (VI) as (VIII). Former subcls. (VII) and (VIII) redesignated (IX) and (X), respectively. Subsec. (e)(8)(D)(ii)(IX). Pub. L. 109–390, § 2(a)(1)(D), redesignated subcl. (VII) as (IX). Former subcl. (IX) re- designated (XI). Pub. L. 109–390, § 2(a)(1)(C), substituted ‘‘(VIII), (IX), or (X)’’ for ‘‘or (VIII)’’ in two places. Subsec. (e)(8)(D)(ii)(X) to (XII). Pub. L. 109–390, § 2(a)(1)(D), redesignated subcls. (VIII) to (X) as (X) to (XII), respectively. Subsec. (e)(8)(D)(iv)(I). Pub. L. 109–390, § 2(b)(1), sub- stituted ‘‘or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in clause (v))’’ for ‘‘transaction, reverse repurchase transaction’’. Subsec. (e)(8)(D)(vi). Pub. L. 109–390, § 2(c)(1)(C), sub- stituted in concluding provisions ‘‘the Gramm-Leach- Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act’’ for ‘‘the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securi- ties Investor Protection Act of 1970, the Commodity Exchange Act, the Gramm-Leach-Bliley Act, and the Legal Certainty for Bank Products Act of 2000’’. Subsec. (e)(8)(D)(vi)(I). Pub. L. 109–390, § 2(c)(1)(A), substituted ‘‘, precious metals, or other commodity’’ for ‘‘or precious metals’’ and ‘‘weather swap, option, fu- ture, or forward agreement; an emissions swap, option, future, or forward agreement; or an inflation swap, op- tion, future, or forward agreement’’ for ‘‘or a weather swap, weather derivative, or weather option’’. Subsec. (e)(8)(D)(vi)(II). Pub. L. 109–390, § 2(c)(1)(B), in- serted ‘‘or other derivatives’’ after ‘‘dealings in the swap’’ and substituted ‘‘future, option, or spot trans- action’’ for ‘‘future, or option’’. Subsec. (e)(8)(D)(ix). Pub. L. 109–390, § 3(a), added cl. (ix). Subsec. (e)(8)(G)(ii), (iii). Pub. L. 109–390, § 6(a), added cls. (ii) and (iii) and struck out former cl. (ii) which de- fined walkaway clause. Subsec. (e)(13)(C). Pub. L. 109–351, § 718(a), added sub- par. (C). Subsec. (e)(15)(B)(i). Pub. L. 109–173, § 8(a)(11)(A), sub- stituted ‘‘Deposit Insurance Fund’’ for ‘‘deposit insur- ance fund’’. Subsec. (f)(1). Pub. L. 109–173, § 8(a)(12), substituted period at end for ‘‘, except that— Page 1074 TITLE 12—BANKS AND BANKING § 1821 ‘‘(A) all payments made pursuant to this section on account of a closed Bank Insurance Fund member shall be made only from the Bank Insurance Fund, and ‘‘(B) all payments made pursuant to this section on account of a closed Savings Association Insurance Fund member shall be made only from the Savings Association Insurance Fund.’’ Pub. L. 109–171, § 2102(b), repealed Pub. L. 104–208, § 2704(d)(14)(H). See 1996 Amendment note below. Subsec. (f)(3) to (5). Pub. L. 109–351, § 721(a), added pars. (3) to (5) and struck out former pars. (3) to (5) which related to resolution of disputes, review of Cor- poration’s determination, and statute of limitations, respectively. Subsec. (i)(3)(B), (C). Pub. L. 109–173, § 8(a)(13), redes- ignated subpar. (C) as (B), substituted ‘‘subparagraph (A)’’ for ‘‘subparagraphs (A) and (B)’’, and struck out heading and text of former subpar. (B). Text read as fol- lows: ‘‘If the depository institution in default is a Bank Insurance Fund member, the Corporation may only make such payments out of funds held in the Bank In- surance Fund. If the depository institution in default is a Savings Association Insurance Fund member, the Corporation may only make such payments out of funds held in the Savings Association Insurance Fund.’’ Pub. L. 109–171, § 2102(b), repealed Pub. L. 104–208, § 2704(d)(14)(I). See 1996 Amendment note below. Subsec. (m)(6). Pub. L. 109–173, § 2(c)(1), substituted ‘‘an amount equal to the standard maximum deposit in- surance amount’’ for ‘‘$100,000’’. Subsec. (p)(2)(B). Pub. L. 109–173, § 8(a)(11)(A), (14), substituted ‘‘the Deposit Insurance Fund’’ for ‘‘any de- posit insurance fund’’. Subsec. (t)(1). Pub. L. 109–351, § 724(1), inserted ‘‘, in any capacity,’’ after ‘‘A covered agency’’ in introduc- tory provisions. Subsec. (t)(2)(A)(i). Pub. L. 109–351, § 724(2)(A), struck out ‘‘appropriate’’ before ‘‘Federal banking agency’’. Subsec. (t)(2)(A)(ii) to (vi). Pub. L. 109–351, § 724(2)(B), (C), redesignated cls. (iii) to (vi) as (ii) to (v), respec- tively, and struck out former cl. (ii) which read as fol- lows: ‘‘The Resolution Trust Corporation.’’ 2005—Subsec. (e)(8)(A). Pub. L. 109–8, § 901(h)(1)(A), substituted ‘‘paragraphs (9) and (10)’’ for ‘‘paragraph (10)’’ in introductory provisions and ‘‘such person has to cause the termination, liquidation, or acceleration’’ for ‘‘to cause the termination or liquidation’’ in cl. (i), added cl. (ii), and struck out former cl. (ii) which read as follows: ‘‘any right under any security arrangement relating to any contract or agreement described in clause (i); or’’. Subsec. (e)(8)(C)(i). Pub. L. 109–8, § 901(i)(1), inserted ‘‘section 91 of this title or any other Federal or State law relating to the avoidance of preferential or fraudu- lent transfers,’’ before ‘‘the Corporation’’. Subsec. (e)(8)(D). Pub. L. 109–8, § 901(a)(1)(A), sub- stituted ‘‘subsection, the following definitions shall apply:’’ for ‘‘subsection—’’ in introductory provisions. Subsec. (e)(8)(D)(i). Pub. L. 109–8, § 901(a)(1)(B), in- serted ‘‘, resolution, or order’’ after ‘‘any similar agreement that the Corporation determines by regula- tion’’. Subsec. (e)(8)(D)(ii). Pub. L. 109–8, § 901(b)(1), reen- acted heading without change and amended text gen- erally. Prior to amendment, text read as follows: ‘‘The term ‘securities contract’— ‘‘(I) has the meaning given to such term in section 741 of title 11, except that the term ‘security’ (as used in such section) shall be deemed to include any mort- gage loan, any mortgage-related security (as defined in section 78c(a)(41) of title 15), and any interest in any mortgage loan or mortgage-related security; and ‘‘(II) does not include any participation in a com- mercial mortgage loan unless the Corporation deter- mines by regulation, resolution, or order to include any such participation within the meaning of such term.’’ Subsec. (e)(8)(D)(iii). Pub. L. 109–8, § 901(c)(1), reen- acted heading without change and amended text gen- erally. Prior to amendment, text read as follows: ‘‘The term ‘commodity contract’ has the meaning given to such term in section 761 of title 11.’’ Subsec. (e)(8)(D)(iv). Pub. L. 109–8, § 901(d)(1), reen- acted heading without change and amended text gen- erally. Prior to amendment, text read as follows: ‘‘The term ‘forward contract’ has the meaning given to such term in section 101 of title 11.’’ Subsec. (e)(8)(D)(v). Pub. L. 109–8, § 901(e)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ‘‘The term ‘repurchase agreement’— ‘‘(I) has the meaning given to such term in section 101 of title 11, except that the items (as described in such section) which may be subject to any such agreement shall be deemed to include mortgage-re- lated securities (as such term is defined in section 78c(a)(41) of title 15), any mortgage loan, and any in- terest in any mortgage loan; and ‘‘(II) does not include any participation in a com- mercial mortgage loan unless the Corporation deter- mines by regulation, resolution, or order to include any such participation within the meaning of such term.’’ Subsec. (e)(8)(D)(vi). Pub. L. 109–8, § 901(f)(1), reen- acted heading without change and amended text gen- erally. Prior to amendment, text read as follows: ‘‘The term ‘swap agreement’— ‘‘(I) means any agreement, including the terms and conditions incorporated by reference in any such agreement, which is a rate swap agreement, basis swap, commodity swap, forward rate agreement, in- terest rate future, interest rate option purchased, for- ward foreign exchange agreement, rate cap agree- ment, rate floor agreement, rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency future, or currency option pur- chased or any other similar agreement, and ‘‘(II) includes any combination of such agreements and any option to enter into any such agreement.’’ Subsec. (e)(8)(D)(vii). Pub. L. 109–8, § 905(a), amended heading and text of cl. (vii) generally. Prior to amend- ment, text read as follows: ‘‘Any master agreement for any agreements described in clause (vi)(I) together with all supplements to such master agreement shall be treated as 1 swap agreement.’’ Subsec. (e)(8)(D)(viii). Pub. L. 109–8, § 901(g)(1), reen- acted heading without change and amended text gen- erally. Prior to amendment, text read as follows: ‘‘The term ‘transfer’ has the meaning given to such term in section 101 of title 11.’’ Subsec. (e)(8)(E). Pub. L. 109–8, § 902(a)(1)(A), sub- stituted ‘‘other than subsections (d)(9) and (e)(10)’’ for ‘‘other than paragraph (12) of this subsection, sub- section (d)(9)’’ in introductory provisions. Subsec. (e)(8)(E)(ii). Pub. L. 109–8, § 901(h)(1)(B), added cl. (ii) and struck out former cl. (ii) which read as fol- lows: ‘‘any right under any security arrangement relat- ing to such qualified financial contracts; or’’. Subsec. (e)(8)(F), (G). Pub. L. 109–8, § 902(a)(1)(B), added subpars. (F) and (G). Subsec. (e)(8)(H). Pub. L. 109–8, § 908(a), added subpar. (H). Subsec. (e)(9). Pub. L. 109–8, § 903(a)(1), reenacted heading without change and amended text generally. Prior to amendment, text related to transfer of quali- fied financial contracts, claims, and property of a de- pository institution in default. Subsec. (e)(10)(A). Pub. L. 109–8, § 903(a)(2), substituted concluding provisions for former concluding provisions which read as follows: ‘‘the conservator or receiver shall use such conservator’s or receiver’s best efforts to notify any person who is a party to any such contract of such transfer by 12:00, noon (local time) on the busi- ness day following such transfer.’’ Subsec. (e)(10)(B) to (D). Pub. L. 109–8, § 903(a)(3), added subpars. (B) and (C) and redesignated former sub- par. (B) as (D). Subsec. (e)(11). Pub. L. 109–8, § 904(a)(2), added par. (11). Former par. (11) redesignated (12). Page 1075 TITLE 12—BANKS AND BANKING § 1821 Subsec. (e)(12). Pub. L. 109–8, § 904(a)(1), redesignated par. (11) as (12). Former par. (12) redesignated (13). Subsec. (e)(12)(A). Pub. L. 109–8, § 902(a)(2), inserted ‘‘or the exercise of rights or powers by’’ after ‘‘the ap- pointment of’’. Subsec. (e)(13) to (16). Pub. L. 109–8, § 904(a)(1), redes- ignated pars. (12) to (15) as (13) to (16), respectively. Subsec. (e)(17). Pub. L. 109–8, § 904(a)(3), added par. (17). 2004—Subsec. (c)(2)(A)(i). Pub. L. 108–386, § 8(a)(4)(A), struck out ‘‘or District bank’’ after ‘‘Federal deposi- tory institution’’. Subsec. (c)(2)(A)(ii). Pub. L. 108–386, § 8(a)(4)(B), struck out ‘‘or District bank’’ after ‘‘Federal deposi- tory institution’’ and ‘‘or the code of law for the Dis- trict of Columbia’’ before period at end. Subsec. (c)(3)(A). Pub. L. 108–386, § 8(a)(4)(C), struck out ‘‘(other than a District depository institution)’’ after ‘‘State depository institution’’. Subsec. (t)(2)(A)(vi). Pub. L. 108–271 substituted ‘‘Gov- ernment Accountability Office’’ for ‘‘General Account- ing Office’’. 2000—Subsec. (d)(10)(C). Pub. L. 106–569 added subpar. (C). Subsecs. (v), (w)(1)(B)(ii). Pub. L. 106–400 made tech- nical amendment to references in original act which appear in text as references to section 11302 of title 42. 1999—Subsec. (a)(4)(B). Pub. L. 106–102, § 117, sub- stituted ‘‘to benefit any shareholder or affiliate (other than an insured depository institution that receives as- sistance in accordance with the provisions of this chap- ter) of’’ for ‘‘to benefit any shareholder of’’ in introduc- tory provisions. Subsec. (a)(5). Pub. L. 106–102, § 736(b)(2), amended Pub. L. 104–208, § 2704(d)(4), (6)(C). See 1996 Amendment notes below. Subsec. (a)(6). Pub. L. 106–102, § 736(b)(2)(B), amended Pub. L. 104–208, § 2704(d)(6)(C)(i). See 1996 Amendment note below. Subsec. (a)(6)(L). Pub. L. 106–102, § 736(a), struck out heading and text of subpar. (L). Text read as follows: ‘‘(i) ESTABLISHMENT.—If, on January 1, 1999, the re- serve ratio of the Savings Association Insurance Fund exceeds the designated reserve ratio, there is estab- lished a Special Reserve of the Savings Association In- surance Fund, which shall be administered by the Cor- poration and shall be invested in accordance with sec- tion 1823(a) of this title. ‘‘(ii) AMOUNTS IN SPECIAL RESERVE.—If, on January 1, 1999, the reserve ratio of the Savings Association Insur- ance Fund exceeds the designated reserve ratio, the amount by which the reserve ratio exceeds the des- ignated reserve ratio shall be placed in the Special Re- serve of the Savings Association Insurance Fund estab- lished by clause (i). ‘‘(iii) LIMITATION.—The Corporation shall not provide any assessment credit, refund, or other payment from any amount in the Special Reserve of the Savings Asso- ciation Insurance Fund. ‘‘(iv) EMERGENCY USE OF SPECIAL RESERVE.—Notwith- standing clause (iii), the Corporation may, in its sole discretion, transfer amounts from the Special Reserve of the Savings Association Insurance Fund to the Sav- ings Association Insurance Fund for the purposes set forth in paragraph (4), only if— ‘‘(I) the reserve ratio of the Savings Association In- surance Fund is less than 50 percent of the designated reserve ratio; and ‘‘(II) the Corporation expects the reserve ratio of the Savings Association Insurance Fund to remain at less than 50 percent of the designated reserve ratio for each of the next 4 calendar quarters. ‘‘(v) EXCLUSION OF SPECIAL RESERVE IN CALCULATING RESERVE RATIO.—Notwithstanding any other provision of law, any amounts in the Special Reserve of the Sav- ings Association Insurance Fund shall be excluded in calculating the reserve ratio of the Savings Association Insurance Fund.’’ Subsec. (a)(7), (8). Pub. L. 106–102, § 736(b)(2)(B), (C), amended Pub. L. 104–208, § 2704(d)(6)(C). See 1996 Amend- ment notes below. 1996—Subsec. (a)(4). Pub. L. 104–208, § 2704(d)(1)(C), which directed substitution of ‘‘Establishment of the Deposit Insurance Fund’’ for ‘‘General provisions relat- ing to funds’’ in heading, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (a)(4)(A) to (C). Pub. L. 104–208, § 2704(d)(1)(A), (B), (2), which directed striking out subpar. (A), redes- ignating subpar. (B) as (C) and substituting ‘‘Deposit Insurance Fund’’ for ‘‘Bank Insurance Fund and the Savings Association Insurance Fund’’ in introductory provisions, and adding new subpars. (A) and (B), was re- pealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (a)(4)(D). Pub. L. 104–208, § 2704(d)(3), which di- rected adding subpar. (D), was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (a)(5). Pub. L. 104–208, § 2704(d)(6)(C), as amended by Pub. L. 106–102, § 736(b)(2)(B), (C), which di- rected striking out par. (5) and redesignating par. (8) as (5), was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Pub. L. 104–208, § 2704(d)(4), which directed general amendment of par. (5), was repealed by Pub. L. 106–102, § 736(b)(2)(A). Subsec. (a)(6). Pub. L. 104–208, § 2704(d)(6)(C)(i), as amended by Pub. L. 106–102, § 736(b)(2)(B), which di- rected striking out par. (6), was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (a)(6)(L). Pub. L. 104–208, § 2705, added subpar. (L). Subsec. (a)(7), (8). Pub. L. 104–208, § 2704(d)(6)(C), as amended by Pub. L. 106–102, § 736(b)(2)(B), (C), which di- rected striking out par. (7) and redesignating par. (8) as (5), was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (d)(20). Pub. L. 104–208, § 2602, added par. (20). Subsec. (f)(1). Pub. L. 104–208, § 2704(d)(14)(H), which directed substitution of a period for ‘‘, except that—’’ and subpars. (A) and (B), was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (i)(3)(B), (C). Pub. L. 104–208, § 2704(d)(14)(I), which directed striking out subpar. (B) and redesig- nating subpar. (C) as (B) and substituting ‘‘subpara- graph (A)’’ for ‘‘subparagraphs (A) and (B)’’, was re- pealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (t)(2)(A)(vi). Pub. L. 104–316 added cl. (vi). 1994—Subsec. (a)(4). Pub. L. 103–325, § 602(a)(21), sub- stituted ‘‘PROVISIONS’’ for ‘‘PROVISIONS’’ in heading. Subsec. (c)(5)(M). Pub. L. 103–325, § 411(c)(2)(A), sub- stituted ‘‘section 5322 or 5324 of title 31’’ for ‘‘section 5322 of title 31’’. Subsec. (d)(2)(B)(iii). Pub. L. 103–325, § 602(a)(22), sub- stituted ‘‘are consistent’’ for ‘‘is consistent’’. Subsec. (d)(8)(B)(ii). Pub. L. 103–325, § 602(a)(23), in- serted ‘‘provide’’ before ‘‘a statement’’. Subsec. (d)(14)(B). Pub. L. 103–325, § 602(a)(24), sub- stituted ‘‘statute of limitations’’ for ‘‘statute of limita- tion’’. Subsec. (d)(14)(C). Pub. L. 103–328 added subpar. (C). Subsec. (d)(16)(B)(iv). Pub. L. 103–325, § 602(a)(25), sub- stituted ‘‘disposition’’ for ‘‘dispositions’’. Subsec. (e)(8)(D). Pub. L. 103–394 substituted ‘‘section 741’’ for ‘‘section 741(7)’’ in cl. (ii)(I), ‘‘section 761’’ for ‘‘section 761(4)’’ in cl. (iii), ‘‘section 101’’ for ‘‘section 101(24)’’ in cl. (iv), ‘‘section 101’’ for ‘‘section 101(41)’’ in cl. (v)(I), and ‘‘section 101’’ for ‘‘section 101(50)’’ in cl. (viii). Subsec. (e)(8)(D)(v)(I). Pub. L. 103–325, § 602(a)(26), sub- stituted ‘‘title 15),’’ for ‘‘title 15,’’. Subsec. (e)(12)(B). Pub. L. 103–325, § 602(a)(27), sub- stituted ‘‘director’s or officer’s’’ for ‘‘directors or offi- cers’’. Page 1076 TITLE 12—BANKS AND BANKING § 1821 Subsec. (e)(14), (15). Pub. L. 103–325, § 325, added pars. (14) and (15). Subsec. (f)(3)(A). Pub. L. 103–325, § 602(a)(28), sub- stituted ‘‘WITH’’ for ‘‘TO’’ in heading. Subsec. (i)(3)(A). Pub. L. 103–325, § 602(a)(29), sub- stituted ‘‘other claimant or category of claimants’’ for ‘‘other claimant or category or claimants’’ in second sentence. Subsec. (n)(4)(E)(i). Pub. L. 103–325, § 602(a)(30), in- serted ‘‘and’’ at end. Subsec. (n)(12)(A). Pub. L. 103–325, § 602(a)(31), sub- stituted ‘‘subparagraph’’ for ‘‘subparagraphs’’. Subsec. (q)(1). Pub. L. 103–325, § 602(a)(32), substituted ‘‘held’’ for ‘‘decided’’ in second sentence. Subsec. (u)(3)(B). Pub. L. 103–325, § 602(a)(33), sub- stituted ‘‘section 1831q(p) of this title’’ for ‘‘subsection (c)(9)’’. 1993—Subsec. (a)(1)(C). Pub. L. 103–204, § 38(b), sub- stituted ‘‘paragraph (1) or (2) of section 1817(i) of this title or any funds described in section 1817(i)(3) of this title’’ for ‘‘section 1817(i)(1) of this title’’. Subsec. (a)(4). Pub. L. 103–204, § 11, substituted ‘‘PRO- VISIONS’’ for ‘‘PROVISION’’ in heading, and amended text generally. Prior to amendment, text read as follows: ‘‘The Bank Insurance Fund established under para- graph (5) and the Savings Association Insurance Fund established under paragraph (6) shall each be— ‘‘(A) maintained and administered by the Corpora- tion; ‘‘(B) maintained separately and not commingled; and ‘‘(C) used by the Corporation to carry out its insur- ance purposes in the manner provided in this sub- section.’’ Subsec. (a)(6)(D) to (F). Pub. L. 103–204, § 8(a)–(c), amended subpars. (D) to (F) generally. Prior to amend- ment, subpars. (D) to (F) related to the availability of funds for administrative expenses, Treasury payments to the Fund, and Treasury payments to maintain the net worth of the Fund, respectively. Subsec. (a)(6)(G). Pub. L. 103–204, § 8(i), substituted ‘‘subparagraph (D)’’ for ‘‘subparagraphs (E) and (F)’’ in heading and text. Subsec. (a)(6)(H). Pub. L. 103–204, § 8(d), amended sub- par. (H) generally. Prior to amendment, subpar. (H) read as follows: ‘‘DISCRETIONARY RTC PAYMENTS.—If amounts available to the Savings Association Insur- ance Fund for purposes other than the payment of ad- ministrative expenses are insufficient for the Savings Association Insurance Fund to carry out the purposes of this chapter, the Corporation may request the Reso- lution Trust Corporation to provide, and the Thrift De- positor Protection Oversight Board of the Resolution Trust Corporation (in the discretion of the Thrift De- positor Protection Oversight Board) may pay, such amount as may be needed for such purposes.’’ Subsec. (a)(6)(J). Pub. L. 103–204, § 8(e), substituted ‘‘Subject to subparagraph (E), there are’’ for ‘‘There are’’ and ‘‘of subparagraph (D) for fiscal years 1994 through 1998, except that the aggregate amount appro- priated pursuant to this authorization may not exceed $8,000,000,000.’’ for ‘‘of this paragraph, except that— ‘‘(i) the annual amount appropriated under subpara- graph (F) shall not exceed $2,000,000,000 in either fis- cal year 1992 or fiscal year 1993; and ‘‘(ii) the cumulative amount appropriated under subparagraph (F) for fiscal years 1992 through 2000 shall not exceed $16,000,000,000.’’ Subsec. (a)(6)(K). Pub. L. 103–204, § 8(f), added subpar. (K). Subsec. (c)(6)(B)(i). Pub. L. 103–204, § 27(b)(1), sub- stituted ‘‘such date as is determined by the Chair- person of the Thrift Depositor Protection Oversight Board under section 1441a(b)(3)(A)(ii) of this title’’ for ‘‘October 1, 1993’’. Subsec. (c)(6)(B)(ii). Pub. L. 103–204, § 27(b)(2), (3), sub- stituted ‘‘on or after the date determined by the Chair- person of the Thrift Depositor Protection Oversight Board under section 1441a(b)(3)(A)(ii) of this title’’ for ‘‘after September 30, 1993’’ and ‘‘before such date’’ for ‘‘on or before such date’’. Subsec. (c)(6)(B)(iii). Pub. L. 103–204, § 27(b)(2), sub- stituted ‘‘on or after the date determined by the Chair- person of the Thrift Depositor Protection Oversight Board under section 1441a(b)(3)(A)(ii) of this title’’ for ‘‘after September 30, 1993’’. Subsec. (c)(13). Pub. L. 103–66, § 3001(b)(1), in subpar. (A) struck out ‘‘subject to subparagraph (B),’’ before ‘‘this section shall’’ and inserted ‘‘and’’ at end, redesig- nated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: ‘‘the Corporation shall apply the law of the State in which the institution is char- tered insofar as that law gives the claims of depositors priority over those of other creditors or claimants; and’’. Subsec. (d)(2)(K). Pub. L. 103–204, § 3(d), inserted ‘‘legal,’’ after ‘‘auction marketing,’’ and substituted ‘‘only if’’ for ‘‘if’’ and ‘‘the most practicable’’ for ‘‘prac- ticable’’. Subsec. (d)(11). Pub. L. 103–66, § 3001(a), amended par. (11) generally, substituting present provisions for former provisions relating to distribution of assets, which consisted of a subpar. (A) relating to subrogated claims and claims of uninsured depositors and other creditors and a subpar. (B) relating to distribution to shareholders of amounts remaining after payment of all other claims and expenses. Subsec. (d)(14)(A)(ii). Pub. L. 103–204, 4(b), inserted ‘‘(other than a claim which is subject to section 1441a(b)(14) of this title)’’ after ‘‘any tort claim’’. Subsec. (g)(4). Pub. L. 103–66, § 3001(b)(2), substituted ‘‘Subject to subsection (d)(11), if’’ for ‘‘If’’. Subsec. (p). Pub. L. 103–204, § 20, in heading, sub- stituted ‘‘CERTAIN SALES OF ASSETS PROHIBITED’’ for ‘‘CERTAIN CONVICTED DEBTORS PROHIBITED FROM PUR- CHASING ASSETS’’, added par. (1), redesignated former pars. (1) and (2) as pars. (2) and (3), respectively, in par. (2) substituted ‘‘paragraph (3)’’ for ‘‘paragraph (2)’’ and ‘‘person’’ for ‘‘individual’’, in par. (3) substituted ‘‘Paragraphs (1) and (2)’’ for ‘‘Paragraph (1)’’ and ‘‘per- son’’ for ‘‘individual’’, wherever appearing, and added par. (4). Subsec. (u). Pub. L. 103–204, § 15(b), added subsec. (u). Subsec. (v). Pub. L. 103–204, § 16(b), added subsec. (v). Subsec. (w). Pub. L. 103–204, § 17(b), added subsec. (w). 1992—Subsec. (c)(5)(M). Pub. L. 102–550, § 1501(a), added subpar. (M). Subsec. (c)(6)(B). Pub. L. 102–550, § 1611(b)(2), sub- stituted ‘‘subparagraph (A) or (C) of section 1464(d)(2) of this title’’ for ‘‘subparagraph (C) or (F) of section 1464(d)(2) of this title’’. Pub. L. 102–550, § 1611(b)(1), substituted ‘‘subparagraph (C) or (F) of section 1464(d)(2) of this title’’ for ‘‘section 1464(d)(2)(C) of this title’’. Subsec. (d)(2)(B), (E). Pub. L. 102–550, § 1604(c)(2), made technical amendment to reference to section 1831q of this title to reflect change in reference to cor- responding section of original act. Subsec. (d)(4)(A). Pub. L. 102–550, § 1606(c), substituted ‘‘determination’’ for ‘‘determinations’’ after ‘‘adminis- trative’’. Subsec. (d)(5)(D)(iii)(I). Pub. L. 102–550, § 1603(e)(1), substituted ‘‘insured depository institution’’ for ‘‘insti- tution described in paragraph (3)(A)’’. Subsec. (t). Pub. L. 102–550, § 1544, added subsec. (t). 1991—Subsec. (a)(1). Pub. L. 102–242, § 311(b)(1), added par. (1) and struck out former par. (1) which read as fol- lows: ‘‘The Corporation shall insure the deposits of all insured depository institutions as provided in this chapter. The maximum amount of the insured deposit of any depositor shall be $100,000.’’ Subsec. (a)(2)(A). Pub. L. 102–242, § 311(b)(5)(B), in clos- ing provisions, substituted ‘‘such depositor shall, for the purpose of determining the amount of insured de- posits under this subsection, be deemed a depositor in such custodial capacity separate and distinct from any other officer, employee, or agent of the United States or any public unit referred to in clause (ii), (iii), (iv), or (v) and the deposit of any such depositor shall be in- sured in an amount not to exceed $100,000 per account’’ for ‘‘his deposit shall be insured’’ before ‘‘in an amount not to exceed $100,000 per account.’’ Page 1077 TITLE 12—BANKS AND BANKING § 1821 Subsec. (a)(2)(B). Pub. L. 102–242, § 311(b)(5)(C), sub- stituted ‘‘(B)’’ for ‘‘(b)’’ as subpar. designation. Subsec. (a)(3). Pub. L. 102–242, § 311(b)(2), amended par. (3) generally. Prior to amendment, par. (3) read as fol- lows: ‘‘Notwithstanding any limitation in this chapter or in any other provision of law relating to the amount of deposit insurance available for the account of any one depositor, time and savings deposits in an insured depository institution made pursuant to a pension or profit-sharing plan described in section 401(d) of title 26, or made in the form of individual retirement ac- counts as described in section 408(a) of title 26, shall be insured in the amount of $100,000 per account. As to any plan qualifying under section 401(d) or section 408(a) of title 26, the term ‘per account’ means the present vest- ed and ascertainable interest of each beneficiary under the plan, excluding any remainder interest created by, or as a result of, the plan.’’ Subsec. (a)(6)(E). Pub. L. 102–233, § 202(a), substituted ‘‘1993’’ for ‘‘1992’’ and ‘‘2000’’ for ‘‘1999’’. Subsec. (a)(6)(J). Pub. L. 102–233, § 202(b), substituted ‘‘1992’’ for ‘‘1991’’ and ‘‘1993’’ for ‘‘1992’’ in cl. (i), and ‘‘1992’’ for ‘‘1991’’ and ‘‘2000’’ for ‘‘1999’’ in cl. (ii). Subsec. (a)(8). Pub. L. 102–242, § 311(a)(1), added par. (8). Subsec. (c)(5). Pub. L. 102–242, § 133(a), amended par. (5) generally, revising and restating as subpars. (A) to (L) provisions of former subpars. (A) to (H). Subsec. (c)(6)(B). Pub. L. 102–233, § 102, amended sub- par. (B) generally. Prior to amendment, subpar. (B) read as follows: ‘‘Whenever the Director of the Office of Thrift Supervision appoints a receiver under the provi- sions of section 1464(d)(2)(C) of this title for the purpose of liquidation or winding up any savings association’s affairs— ‘‘(i) during the 3-year period beginning on August 9, 1989, the Resolution Trust Corporation shall be ap- pointed; and ‘‘(ii) after the end of the 3-year period referred to in clause (i), the Corporation shall be appointed.’’ Subsec. (c)(9). Pub. L. 102–242, § 133(e), amended par. (9) generally. Prior to amendment, par. (9) read as fol- lows: ‘‘In any case in which the Corporation is ap- pointed conservator or receiver pursuant to paragraph (4) or (6)— ‘‘(A) the provisions of this section shall be applica- ble to the Corporation, as conservator or receiver of any insured State depository institution in the same manner and to the same extent as if such institution were a Federal depository institution for which the Corporation had been appointed conservator or re- ceiver; and ‘‘(B) the Corporation as receiver of any insured State depository institution may— ‘‘(i) liquidate such institution in an orderly man- ner; and ‘‘(ii) make such other disposition of any matter concerning such institution as the Corporation de- termines is in the best interests of the institution, the depositors of such institution, and the Corpora- tion.’’ Subsec. (c)(10) to (13). Pub. L. 102–242, § 133(e), added pars. (10) to (13). Subsec. (d)(2)(B). Pub. L. 102–242, § 241(c)(1)(A), in- serted ‘‘(subject to the provisions of section 1831q of this title)’’ before comma in introductory provisions. Subsec. (d)(2)(E). Pub. L. 102–242, § 241(c)(1)(B), in- serted ‘‘(subject to the provisions of section 1831q of this title)’’ before first comma. Subsec. (d)(2)(K). Pub. L. 102–242, § 426, added subpar. (K). Subsec. (d)(3)(A). Pub. L. 102–242, § 161(a)(1), sub- stituted ‘‘paragraph (4)’’ for ‘‘paragraph (4)(A)’’. Subsec. (d)(4). Pub. L. 102–242, § 416, amended par. (4) generally. Prior to amendment, par. (4) read as follows: ‘‘The Corporation may prescribe regulations regarding the allowance or disallowance of claims by the receiver and providing for administrative determination of claims and review of such determination.’’ Subsec. (d)(5)(D). Pub. L. 102–242, § 141(b), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: ‘‘The receiver may disallow any portion of any claim by a creditor or claim of security, pref- erence, or priority which is not proved to the satisfac- tion of the receiver.’’ Subsec. (d)(11)(B). Pub. L. 102–242, § 161(a)(2), sub- stituted ‘‘paragraph (15)(B)’’ for ‘‘paragraph (14)(C)’’. Subsec. (d)(13)(E). Pub. L. 102–242, § 123(a), added sub- par. (E). Subsec. (e)(3)(C)(ii), (4)(B)(iii). Pub. L. 102–242, § 161(a)(3), (4), substituted ‘‘subsection (i)’’ for ‘‘sub- section (k)’’. Subsec. (e)(8)(A), (E). Pub. L. 102–242, § 161(a)(5), sub- stituted ‘‘subsection (d)(9) of this section’’ for ‘‘sub- sections (d)(9) and (i)(4)(I) of this section’’. Subsec. (h). Pub. L. 102–242, § 141(d)(2), substituted ‘‘RESOLUTION’’ for ‘‘LIQUIDATION’’ in heading. Subsec. (h)(4). Pub. L. 102–242, § 141(d)(1), added par. (4). Subsec. (i)(3)(A). Pub. L. 102–242, § 161(e), substituted ‘‘Notwithstanding any other provision of Federal or State law, or the constitution of any State, the’’ for ‘‘The’’. Subsec. (n)(9). Pub. L. 102–242, § 161(a)(6), substituted ‘‘paragraphs (11) and (12)’’ for ‘‘paragraphs (11) and (13)’’. Subsec. (n)(11)(D). Pub. L. 102–242, § 161(a)(7), sub- stituted ‘‘paragraph (9)’’ for ‘‘paragraph (8)’’. Subsec. (s). Pub. L. 102–242, § 446, added subsec. (s). 1990—Subsec. (d)(2)(I), (J). Pub. L. 101–647, § 2534(a), added subpar. (I) and redesignated former subpar. (I) as (J). Subsec. (d)(17). Pub. L. 101–647, § 2528(a), added par. (17). Subsec. (d)(18), (19). Pub. L. 101–647, § 2521(a)(1), added pars. (18) and (19). Subsec. (p). Pub. L. 101–647, § 2526(a), added subsec. (p). Subsec. (q). Pub. L. 101–647, § 2527, added subsec. (q). Subsec. (r). Pub. L. 101–647, § 2532(b), added subsec. (r). 1989—Subsec. (a)(1). Pub. L. 101–73, § 211(1), added par. (1) and struck out former par. (1) which read as follows: ‘‘The Temporary Federal Deposit Insurance Fund and the Fund for Mutuals heretofore created pursuant to the provisions of section 12B of the Federal Reserve Act, as amended, are consolidated into a Permanent In- surance Fund for insuring deposits, and the assets therein shall be held by the Corporation for the uses and purposes of the Corporation: Provided, That the ob- ligations to and rights of the Corporation, depositors, banks, and other persons arising out of any event or transaction prior to September 21, 1950, shall remain unimpaired. On and after August 23, 1935, the Corpora- tion shall insure the deposits of all insured banks as provided in this chapter: Provided further, That the in- surance shall apply only to deposits of insured banks which have been made available since March 10, 1933, for withdrawal in the usual course of the banking busi- ness: Provided further, That if any insured bank shall, without the consent of the Corporation, release or mod- ify restrictions on or deferments of deposits which had not been made available for withdrawal in the usual course of the banking business on or before August 23, 1935, such deposits shall not be insured. Except as pro- vided in paragraph (2), the maximum amount of the in- sured deposit of any depositor shall be $100,000.’’ Subsec. (a)(2)(A). Pub. L. 101–73, § 201(a), substituted ‘‘insured depository institution’’ for ‘‘insured bank’’ wherever appearing. Subsec. (a)(2)(B). Pub. L. 101–73, § 211(2), struck out ‘‘time and savings’’ after ‘‘deposited in’’. Pub. L. 101–73, § 201(a), substituted ‘‘insured deposi- tory institution’’ for ‘‘insured bank’’. Subsec. (a)(3). Pub. L. 101–73, § 201(a), substituted ‘‘in- sured depository institution’’ for ‘‘insured bank’’. Subsec. (a)(4) to (7). Pub. L. 101–73, § 211(3), added pars. (4) to (7). Subsec. (b). Pub. L. 101–73, § 201(a), substituted ‘‘in- sured depository institution’’ for ‘‘insured bank’’. Subsec. (c). Pub. L. 101–73, § 212(a), added subsec. (c) and struck out former subsec. (c) which related to Cor- poration as receiver. Page 1078 TITLE 12—BANKS AND BANKING § 1821 Subsec. (d). Pub. L. 101–73, § 212(a), added subsec. (d) and struck out former subsec. (d) which related to pow- ers and duties of Corporation as receiver. Subsec. (e). Pub. L. 101–73, § 212(a), added subsec. (e) and struck out former subsec. (e) which related to Cor- poration as receiver of State banks. Subsec. (f). Pub. L. 101–73, § 212(a), added subsec. (f) and struck out former subsec. (f) which related to pay- ment of insured deposits of closed insured bank or in- sured branch of a foreign bank. Subsec. (g). Pub. L. 101–73, § 212(a), added subsec. (g) and struck out former subsec. (g) which related to sub- rogation rights of Corporation in the case of a closed national bank, insured branch of a foreign bank, Dis- trict bank, or closed insured Federal savings bank. Subsec. (h). Pub. L. 101–73, § 212(a), added subsec. (h) and struck out former subsec. (h) which related to or- ganization, etc., of new national banks upon closing of insured banks. See subsec. (m) of this section. Subsec. (i). Pub. L. 101–73, § 212(a), added subsec. (i) and struck out former subsec. (i) which related to es- tablishment, etc., of bridge banks. See subsec. (n) of this section. Subsec. (j). Pub. L. 101–73, § 212(a), added subsec. (j) and struck out former subsec. (j) which related to con- ditions applicable to liquidation proceedings. Subsecs. (k), (l). Pub. L. 101–73, § 212(a), added subsecs. (k) and (l). Subsec. (m). Pub. L. 101–73, § 213, added subsec. (m). Subsec. (n). Pub. L. 101–73, § 214, added subsec. (n). Subsec. (o). Pub. L. 101–73, § 909, added subsec. (o). 1987—Subsec. (h). Pub. L. 100–86, § 503(a)(1), (2), des- ignated existing provisions as par. (1) and redesignated former subsecs. (i) to (l) as pars. (2) to (5), respectively. Subsec. (i). Pub. L. 100–86, § 503(a)(2), (3), added subsec. (i). Former subsec. (i) redesignated subsec. (h)(2) of this section. Subsec. (j). Pub. L. 100–86, §§ 503(a)(2), 507, added sub- sec. (j). Former subsec. (j) redesignated subsec. (h)(3) of this section. Subsecs. (k), (l). Pub. L. 100–86, § 503(a)(2), redesig- nated subsecs. (k) and (l) as pars. (4) and (5), respec- tively, of subsec. (h). 1986—Subsec. (a)(3). Pub. L. 99–514 substituted ‘‘Inter- nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’ wherever appearing, which for purposes of codi- fication was translated as ‘‘title 26’’ thus requiring no change in text. 1982—Subsec. (c). Pub. L. 97–320, § 113(j), inserted pro- vision relating to appointment of Corporation as re- ceiver for an insured Federal savings bank by Federal Home Loan Bank Board. Subsec. (g). Pub. L. 97–320, § 113(k), inserted ‘‘or closed insured Federal savings bank,’’ after ‘‘foreign bank, or District bank,’’. 1981—Subsec. (a)(2)(A)(iv). Pub. L. 97–110 inserted ‘‘the Trust Territory of the Pacific Islands,’’ after ‘‘Vir- gin Islands, American Samoa,’’ and ‘‘of the Trust Terri- tory of the Pacific Islands,’’ after ‘‘of American Samoa,’’. 1980—Subsec. (a)(1). Pub. L. 96–221, § 308(a)(1)(C), sub- stituted ‘‘$100,000’’ for ‘‘$40,000’’. Subsec. (i). Pub. L. 96–221, § 308(a)(1)(D), substituted ‘‘$100,000’’ for ‘‘$40,000’’. 1979—Subsec. (a)(2)(A)(v). Pub. L. 96–153 added cl. (v). 1978—Subsec. (a)(3). Pub. L. 95–630 added par. (3). Subsec. (c). Pub. L. 95–369, § 6(c)(17), inserted ‘‘insured Federal branch of a foreign bank’’ after ‘‘any insured national bank’’. Subsec. (e). Pub. L. 95–369, § 6(c)(18), (19), inserted ‘‘or any insured branch (other than a Federal branch) of a foreign bank’’ after ‘‘(except a District bank)’’, and substituted ‘‘such insured State bank or insured branch of a foreign bank’’ for ‘‘such insured State bank’’. Subsec. (f). Pub. L. 95–369, § 6(c)(20), inserted ‘‘or in- sured branch of a foreign bank’’ after ‘‘Whenever an in- sured bank’’. Subsec. (g). Pub. L. 95–369, § 6(c)(21), (22), inserted ‘‘in- sured branch of a foreign bank’’ after ‘‘In the case of a closed national bank’’, and substituted ‘‘In the case of any closed insured bank or closed insured branch of a foreign bank, such subrogation’’ for ‘‘In the case of any closed insured bank, such subrogation’’. 1974—Subsec. (a). Pub. L. 93–495, §§ 101(a)(3), 102(a)(3), redesignated existing provisions as par. (1), inserted ex- ception relating to applicability of par. (2), substituted ‘‘$40,000’’ for ‘‘$20,000’, and added par. (2). Subsec. (i). Pub. L. 93–495, § 102(a)(4), substituted ‘‘$40,000’’ for ‘‘$20,000’’. 1969—Subsec. (a). Pub. L. 91–151, § 7(a)(3), substituted $20,000 for $15,000 in last sentence. Subsec. (i). Pub. L. 91–151, § 7(a)(4), substituted $20,000 for $15,000 in fifth sentence. 1966—Subsec. (a). Pub. L. 89–695, § 301(c), substituted in last sentence ‘‘$15,000’’ for ‘‘$10,000’’ and struck out ‘‘: And provided further, That in the case of banks clos- ing prior to September 21, 1950, the maximum amount of the insured deposit of any depositor shall be $5,000’’. Subsec. (i). Pub. L. 89–695, § 301(d), substituted ‘‘$15,000’’ for ‘‘$10,000’’ in fifth sentence. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. Oversight Board redesignated Thrift Depositor Pro- tection Oversight Board, effective Feb. 1, 1992, see sec- tion 302(a) of Pub. L. 102–233, formerly set out as a note under section 1441a of this title. Thrift Depositor Pro- tection Oversight Board abolished, see section 14(a)–(d) of Pub. L. 105–216, formerly set out as a note under sec- tion 1441a of this title. EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–343, § 1(b), Dec. 29, 2010, 124 Stat. 3609, pro- vided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect on December 31, 2010.’’ Amendment by section 335(a) of Pub. L. 111–203 effec- tive 1 day after July 21, 2010, except as otherwise pro- vided, see section 4 of Pub. L. 111–203, set out as an Ef- fective Date note under section 5301 of this title. Pub. L. 111–203, title III, § 343(a)(2), July 21, 2010, 124 Stat. 1544, provided that: ‘‘The amendments made by paragraph (1) [amending this section] shall take effect on December 31, 2010.’’ Pub. L. 111–203, title III, § 343(a)(3), July 21, 2010, 124 Stat. 1544, provided that the amendment made by sec- tion 343(a)(3) is effective Jan. 1, 2013. Amendment by section 363(5) of Pub. L. 111–203 effec- tive on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–390 not applicable to any cases commenced under Title 11, Bankruptcy, or to ap- pointments made under any Federal or State law, be- fore Dec. 12, 2006, see section 7 of Pub. L. 109–390, set out as a note under section 101 of Title 11. Amendment by subsection 701(b) of Pub. L. 109–351 ap- plicable with respect to conservators or receivers ap- pointed on or after Oct. 13, 2006, see section 701(c) of Pub. L. 109–351, set out as a note under section 191 of this title. Amendment by section 2(a), (c)(1) of Pub. L. 109–173 effective Apr. 1, 2006, see section 2(e) of Pub. L. 109–173, set out as a note under section 1785 of this title. Page 1079 TITLE 12—BANKS AND BANKING § 1821 Amendment by section 8(a)(11)–(14) of Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by section 2102(b) of Pub. L. 109–171 effec- tive no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note below. Pub. L. 109–171, title II, § 2103(d), Feb. 8, 2006, 120 Stat. 12, provided that: ‘‘This section [amending this section] and the amendments made by this section shall take ef- fect on the date the final regulations required under section 9(a)(2) [probably means section 2109(a)(2) of Pub. L. 109–171, set out as a Regulations note under sec- tion 1817 of this title] take effect [Apr. 1, 2006, see 71 F.R. 14629].’’ EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such ef- fective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11. EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–386 effective Oct. 30, 2004, and, except as otherwise provided, applicable with re- spect to fiscal year 2005 and each succeeding fiscal year, see sections 8(i) and 9 of Pub. L. 108–386, set out as notes under section 321 of this title. EFFECTIVE DATE OF 1999 AMENDMENT Amendment by section 117 of Pub. L. 106–102 effective 120 days after Nov. 12, 1999, see section 161 of Pub. L. 106–102, set out as a note under section 24 of this title. Pub. L. 106–102, title VII, § 736(c), Nov. 12, 1999, 113 Stat. 1479, provided that: ‘‘This section [amending this section and provisions set out as a note under this sec- tion] and the amendments made by this section shall become effective on the date of the enactment of this Act [Nov. 12, 1999].’’ EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–208, div. A, title II, § 2704(c), Sept. 30, 1996, 110 Stat. 3009–487, which provided that section 2704 of div. A of Pub. L. 104–208 (amending this section, sec- tions 24, 338a, 347b, 1431, 1441a, 1441b, 1464, 1467a, 1723i, 1735f–14, 1813, 1815 to 1817, 1821a, 1823 to 1825, 1827, 1828, 1831a, 1831e, 1831m, 1831o, 1833a, 1834, 1841, and 3341 of this title, and section 905 of Title 2, The Congress, re- pealing section 1831h of this title, and enacting provi- sions set out as notes under this section) was to become effective on Jan. 1, 1999, if no insured depository insti- tution was a savings association on that date, was re- pealed by Pub. L. 109–171, title II, § 2102(b), (c), Feb. 8, 2006, 120 Stat. 9, eff. no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before Oct. 22, 1994, see sec- tion 702 of Pub. L. 103–394, set out as a note under sec- tion 101 of Title 11. EFFECTIVE DATE OF 1993 AMENDMENT Pub. L. 103–66, title III, § 3001(c), Aug. 10, 1993, 107 Stat. 337, provided that: ‘‘The amendments made by this section [amending this section] shall apply with respect to insured depository institutions for which a receiver is appointed after the date of the enactment of this Act [Aug. 10, 1993].’’ EFFECTIVE DATE OF 1992 AMENDMENT Amendment by section 1501(a) of Pub. L. 102–550 effec- tive Dec. 20, 1992, see section 1501(c) of Pub. L. 102–550, set out as a note under section 1786 of this title. Amendment by sections 1603(e)(1), 1604(c)(2), and 1606(c) of Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, except that where amendment is to any provision of law added or amended by Pub. L. 102–242 effective after Dec. 19, 1992, then amendment by Pub. L. 102–550 effective on ef- fective date of amendment by Pub. L. 102–242, see sec- tion 1609 of Pub. L. 102–550, set out as a note under sec- tion 191 of this title. Pub. L. 102–550, title XVI, § 1611(b)(2), Oct. 28, 1992, 106 Stat. 4090, provided that the amendment made by that section is effective one year after Dec. 19, 1991. EFFECTIVE DATE OF 1991 AMENDMENT Amendment by section 133(a), (e) of Pub. L. 102–242 ef- fective 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. Pub. L. 102–242, title III, § 311(c), Dec. 19, 1991, 105 Stat. 2366, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by subsection (a) and paragraphs (2) and (3) of subsection (b) [amending this section and section 1817 of this title] shall take effect at the end of the 2-year period beginning on the date of the enact- ment of this Act [Dec. 19, 1991]. ‘‘(2) APPLICATION TO TIME DEPOSITS.— ‘‘(A) CERTAIN DEPOSITS EXCLUDED.—Except with re- spect to the amendment referred to in paragraph (3), the amendments made by subsections (a) and (b) [amending this section and sections 1813 and 1817 of this title] shall not apply to any time deposit which— ‘‘(i) was made before the date of enactment of this Act [Dec. 19, 1991]; and ‘‘(ii) matures after the end of the 2-year period re- ferred to in paragraph (1). ‘‘(B) ROLLOVERS AND RENEWALS TREATED AS NEW DE- POSIT.—Any renewal or rollover of a time deposit de- scribed in subparagraph (A) after the date of the en- actment of this Act shall be treated as a new deposit which is not described in such subparagraph. ‘‘(3) EFFECTIVE DATE FOR AMENDMENT RELATING TO CERTAIN EMPLOYEE PLANS.— ‘‘(A) Section 11(a)(1)(B) of the Federal Deposit In- surance Act [12 U.S.C. 1821(a)(1)(B)] (as amended by subsection (b)(1) of this section) shall take effect on the earlier of— ‘‘(i) the date of the enactment of this Act [Dec. 19, 1991]; or ‘‘(ii) January 1, 1992. ‘‘(B) Section 11(a)(3)(A) of the Federal Deposit In- surance Act (as amended by subsection (b)(2) of this section) shall take effect on the earlier of the dates described in clauses (i) and (ii) of subparagraph (A) with respect to plans described in clause (ii) of such section.’’ EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–221 effective Mar. 31, 1980, see section 308(e) of Pub. L. 96–221, set out as a note under section 1817 of this title. Amendment by section 308(a)(1) of Pub. L. 96–221 not applicable to any claim arising out of the closing of a bank prior to the effective date of section 308 of Pub L. 96–221, see section 308(a)(2) of Pub. L. 96–221, set out as a note under section 1813 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–153 applicable only to claims arising after Dec. 21, 1979, with respect to a clos- ing of a bank, etc., see section 323(e) of Pub. L. 96–153, set out as an Effective and Termination Dates of 1979 Amendment note under section 1757 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective Nov. 10, 1978, see section 1402 of Pub. L. 95–630, set out as a note under section 1787 of this title. Page 1080 TITLE 12—BANKS AND BANKING § 1821 EFFECTIVE DATE OF 1974 AMENDMENT Amendment by sections 101(a)(3) and 102(a)(3), (4) of Pub. L. 93–495 effective on thirtieth day beginning after Oct. 28, 1974, and amendment by section 102(a)(3), (4) of Pub. L. 93–495 not applicable to any claim arising out of the closing of any bank prior to such effective date, see sections 101(g) and 102(a)(3), (4) of Pub. L. 93–495, set out as a note under section 1813 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–151 not applicable to any claim arising out of the closing of a bank where such closing took place prior to Dec. 23, 1969, see section 7(b) of Pub. L. 91–151, set out as a note under section 1813 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–695 not applicable to any claim arising out of the closing of a bank where such closing is prior to Oct. 16, 1966, see section 301(e) of Pub. L. 89–695, set out as a note under section 1813 of this title. REGULATIONS Pub. L. 102–242, title III, § 311(b)(4), Dec. 19, 1991, 105 Stat. 2365, provided that: ‘‘(A) REVIEW OF COVERAGE.—For the purpose of pre- scribing regulations, during the 1-year period beginning on the date of the enactment of this Act [Dec. 19, 1991], the Board of Directors shall review the capacities and rights in which deposit accounts are maintained and for which deposit insurance coverage is provided by the Corporation. ‘‘(B) REGULATIONS.—After the end of the 1-year period referred to in subparagraph (A), the Board of Directors may prescribe regulations that provide for separate in- surance coverage for the different capacities and rights in which deposit accounts are maintained if a deter- mination is made by the Board of Directors that such separate insurance coverage is consistent with— ‘‘(i) the purpose of protecting small depositors and limiting the undue expansion of deposit insurance coverage; and ‘‘(ii) the insurance provisions of the Federal De- posit Insurance Act [12 U.S.C. 1811 et seq.]. ‘‘(C) DELAYED EFFECTIVE DATE FOR REGULATIONS.—No regulation prescribed under subparagraph (B) may take effect before the 2-year period beginning on the date of the enactment of this Act [Dec. 19, 1991].’’ TEMPORARY ADJUSTMENT IN STANDARD MAXIMUM DEPOSIT INSURANCE AMOUNT Subsec. (a)(1)(E) of this section to apply with ‘‘$250,000’’ substituted for ‘‘$100,000’’ during period be- ginning on Oct. 3, 2008, and ending on Dec. 31, 2009, see section 5241(a)(1) of this title. MERGER OF BIF AND SAIF Pub. L. 109–171, title II, § 2102, Feb. 8, 2006, 120 Stat. 9, provided that: ‘‘(a) IN GENERAL.— ‘‘(1) MERGER.—The Bank Insurance Fund and the Savings Association Insurance Fund shall be merged into the Deposit Insurance Fund. ‘‘(2) DISPOSITION OF ASSETS AND LIABILITIES.—All as- sets and liabilities of the Bank Insurance Fund and the Savings Association Insurance Fund shall be transferred to the Deposit Insurance Fund. ‘‘(3) NO SEPARATE EXISTENCE.—The separate exist- ence of the Bank Insurance Fund and the Savings As- sociation Insurance Fund shall cease on the effective date of the merger thereof under this section. ‘‘(b) REPEAL OF OUTDATED MERGER PROVISION.—Sec- tion 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) [section 2704 of Pub. L. 104–208, which amended this section, sections 24, 338a, 347b, 1431, 1441a, 1441b, 1464, 1467a, 1723i, 1735f–14, 1813, 1815 to 1817, 1821a, 1823 to 1825, 1827, 1828, 1831a, 1831e, 1831m, 1831o, 1833a, 1834, 1841, and 3341 of this title, and section 905 of Title 2, The Congress, repealed section 1831h of this title, and enacted provisions set out as notes under this section] is repealed. ‘‘(c) EFFECTIVE DATE.—This section shall take effect no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning on the date of the enactment of this Act [Feb. 8, 2006].’’ Pub. L. 104–208, div. A, title II, § 2704(a), (b), Sept. 30, 1996, 110 Stat. 3009–486, as amended by Pub. L. 106–102, title VII, § 736(b)(1), Nov. 12, 1999, 113 Stat. 1479, which provided that the Bank Insurance Fund and the Sav- ings Association Insurance Fund were to be merged into the Deposit Insurance Fund, that all assets and li- abilities of the Bank Insurance Fund and the Savings Association Insurance Fund were to be transferred to the Deposit Insurance Fund, and that the separate ex- istence of the Bank Insurance Fund and the Savings Association Insurance Fund was to cease, was repealed by Pub. L. 109–171, title II, § 2102(b), (c), Feb. 8, 2006, 120 Stat. 9, eff. no later than the first day of the first cal- endar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006. See Effective Date of 1996 Amendment note and note above. GAO REPORT Pub. L. 103–204, § 8(g), Dec. 17, 1993, 107 Stat. 2388, pro- vided that: ‘‘Not later than 60 days after receipt of any certification submitted pursuant to subparagraph (E) or (F) of section 11(a)(6) of the Federal Deposit Insur- ance Act [former 12 U.S.C. 1821(a)(6)], the Comptroller General shall transmit a report to the Congress evalu- ating any such certification.’’ SINGLE AGENCY FOR REAL PROPERTY DISPOSITION Pub. L. 103–204, § 26(b), Dec. 17, 1993, 107 Stat. 2409, pro- vided that: ‘‘(1) STUDY.—The Comptroller General of the United States shall conduct a study to determine the feasi- bility and effectiveness of establishing a single Federal agency responsible for selling and otherwise disposing of real property owned or held by the Department of Housing and Urban Development, the Farmers Home Administration of the Department of Agriculture, the Federal Deposit Insurance Corporation, and the Resolu- tion Trust Corporation. The study shall examine the real property disposition procedures of such agencies and corporations, analyze the feasibility of consoli- dating such procedures through such single agency, and determine the characteristics and authority necessary for any such single agency to efficiently carry out such disposition activities. ‘‘(2) REPORT.—Not later than 12 months after the date of enactment of this Act [Dec. 17, 1993], the Comptroller General shall submit a report to the Congress on the study required under paragraph (1), which shall de- scribe any findings under the study and contain any recommendations of the Comptroller General for the establishment of such single agency.’’ EXEMPTIONS FOR CERTAIN TRANSACTIONS Pub. L. 103–204, § 37, Dec. 17, 1993, 107 Stat. 2416, pro- vided that: ‘‘(a) TRANSACTIONS INVOLVING CERTAIN INSTITU- TIONS.—Section 11(a)(4)(B) of the Federal Deposit Insur- ance Act [12 U.S.C. 1821(a)(4)(B)] shall not prohibit as- sistance from the Bank Insurance Fund that otherwise meets all the criteria established in section 13(c) of such Act [12 U.S.C. 1823(c)] from being provided to an insured depository institution that became wholly- owned, either directly or through a wholly-owned sub- sidiary, by an entity or instrumentality of a State gov- ernment during the period beginning on January 1, 1992, and ending on the date of enactment of this Act [Dec. 17, 1993]. ‘‘(b) TRANSACTIONS INVOLVING THE FDIC AS RE- CEIVER.—Notwithstanding the extension, pursuant to section 27 [12 U.S.C. 1831d], of the Resolution Trust Cor- poration’s jurisdiction to be appointed conservator or Page 1081 TITLE 12—BANKS AND BANKING § 1821a receiver of certain savings associations after Sep- tember 30, 1993, no provision of this Act [see Short Title of 1993 Amendment note set out under section 1421 of this title] or any amendment made by this Act shall in- validate or otherwise affect— ‘‘(1) any appointment of the Federal Deposit Insur- ance Corporation as receiver for any savings associa- tion that became effective before the date of enact- ment of this Act; or ‘‘(2) any action taken by the Federal Deposit Insur- ance Corporation as such receiver before, on, or after such date of enactment.’’ INFORMATIONAL STUDY Pub. L. 102–242, title III, § 311(d), Dec. 19, 1991, 105 Stat. 2366, provided that the Federal Deposit Insurance Corporation should conduct a study of the cost and fea- sibility of tracking the insured and uninsured deposits of any individual and the exposure of the Federal Gov- ernment with respect to all insured depository institu- tions, and also provided that before the end of the 18- month period beginning on Dec. 19, 1991, the Corpora- tion should submit to Congress a report containing a detailed statement of findings made and conclusions drawn from the study, including appropriate rec- ommendations for administrative and legislative ac- tion. CONTINUATION OF HEALTH PLAN COVERAGE IN CASES OF FAILED FINANCIAL INSTITUTIONS Pub. L. 102–242, title IV, § 451, Dec. 19, 1991, 105 Stat. 2382, as amended by Pub. L. 102–550, title XVI, § 1606(g)(1), Oct. 28, 1992, 106 Stat. 4088, provided that: ‘‘(a) CONTINUATION COVERAGE.—The Federal Deposit Insurance Corporation— ‘‘(1) shall, in its capacity as a successor of a failed depository institution (whether acting directly or through any bridge bank), have the same obligation to provide a group health plan meeting the require- ments of section 602 of the Employee Retirement In- come Security Act of 1974 [29 U.S.C. 1162] (relating to continuation coverage requirements of group health plans) with respect to former employees of such insti- tution as such institution would have had but for its failure, and ‘‘(2) shall require that any successor described in subsection (b)(1)(B)(iii) provide a group health plan with respect to former employees of such institution in the same manner as the failed depository institu- tion would have been required to provide but for its failure. ‘‘(b) DEFINITIONS.—For purposes of this section— ‘‘(1) SUCCESSOR.—An entity is a successor of a failed depository institution during any period if— ‘‘(A) such entity holds substantially all of the as- sets or liabilities of such institution, and ‘‘(B) such entity is— ‘‘(i) the Federal Deposit Insurance Corporation, ‘‘(ii) any bridge bank, or ‘‘(iii) an entity that acquires such assets or li- abilities from the Federal Deposit Insurance Cor- poration or a bridge bank. ‘‘(2) FAILED DEPOSITORY INSTITUTION.—The term ‘failed depository institution’ means any depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act [12 U.S.C. 1813(c)]) for which a receiver has been appointed. ‘‘(3) BRIDGE BANK.—The term ‘bridge bank’ has the meaning given such term by section 3(i)(2) of the Fed- eral Deposit Insurance Act [12 U.S.C. 1813(i)(2)]. ‘‘(c) NO PREMIUM COSTS IMPOSED ON FDIC.—Subsection (a) shall not be construed as requiring the Federal De- posit Insurance Corporation to incur, by reason of this section, any obligation for any premium under any group health plan referred to in such subsection. ‘‘(d) EFFECTIVE DATE.—This section shall apply to plan years beginning on or after the date of the enact- ment of this Act [Dec. 19, 1991], regardless of whether the qualifying event under section 603 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1163] occurred before, on, or after such date.’’ DEFINITIONS Pub. L. 104–208, div. A, title II, § 2710, Sept. 30, 1996, 110 Stat. 3009–498, provided that: ‘‘For purposes of this sub- title [subtitle G (§§ 2701–2711) of title II of div. A of Pub. L. 104–208, see Short Title of 1996 Amendment note set out under section 1811 of this title], the following defi- nitions shall apply: ‘‘(1) BANK INSURANCE FUND.—The term ‘Bank Insur- ance Fund’ means the fund established pursuant to section (11)(a)(5)(A) of the Federal Deposit Insurance Act [former 12 U.S.C. 1821(a)(5)(A)], as that section existed on the day before the date of enactment of this Act [Sept. 30, 1996]. ‘‘(2) BIF MEMBER, SAIF MEMBER.—The terms ‘Bank Insurance Fund member’ and ‘Savings Association In- surance Fund member’ have the same meanings as in section 7(l) of the Federal Deposit Insurance Act [12 U.S.C. 1817(l)]. ‘‘(3) VARIOUS BANKING TERMS.—The terms ‘bank’, ‘Board of Directors’, ‘Corporation’, ‘deposit’, ‘insured depository institution’, ‘Federal savings association’, ‘savings association’, ‘State savings bank’, and ‘State depository institution’ have the same meanings as in section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813]. ‘‘(4) DEPOSIT INSURANCE FUND.—The term ‘Deposit Insurance Fund’ means the fund established under section 11(a)(4) of the Federal Deposit Insurance Act [former 12 U.S.C. 1821(a)(4)] (as amended by section 2704(d) of this subtitle). ‘‘(5) DEPOSITORY INSTITUTION HOLDING COMPANY.— The term ‘depository institution holding company’ has the same meaning as in section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813]. ‘‘(6) DESIGNATED RESERVE RATIO.—The term ‘des- ignated reserve ratio’ has the same meaning as in section 7(b)(2)(A)(iv) of the Federal Deposit Insurance Act [former 12 U.S.C. 1817(b)(2)(A)(iv), see 12 U.S.C. 1817(b)(3)]. ‘‘(7) SAIF.—The term ‘Savings Association Insur- ance Fund’ means the fund established pursuant to section 11(a)(6)(A) of the Federal Deposit Insurance Act [former 12 U.S.C. 1821(a)(6)(A)], as that section existed on the day before the date of enactment of this Act [Sept. 30, 1996]. ‘‘(8) SAIF-ASSESSABLE DEPOSIT.—The term ‘SAIF- assessable deposit’— ‘‘(A) means a deposit that is subject to assess- ment for purposes of the Savings Association Insur- ance Fund under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] (including a deposit that is treated as insured by the Savings Association In- surance Fund under section 5(d)(3) of the Federal Deposit Insurance Act [12 U.S.C. 1815(d)(3)]); and ‘‘(B) includes any deposit described in subpara- graph (A) which is assumed after March 31, 1995, if the insured depository institution, the deposits of which are assumed, is not an insured depository in- stitution when the special assessment is imposed under section 2702(a) [former 12 U.S.C. 1817 note].’’ Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. § 1821a. FSLIC Resolution Fund (a) Established (1) In general There is established a separate fund to be designated as the FSLIC Resolution Fund