12 U.S.C. § 209 — Liability protection

Page 71 TITLE 12—BANKS AND BANKING § 209 1 So in original. Probably should be ‘‘Comptroller of the Cur- rency’’. (b) Subject to rules of Comptroller The conservator shall be subject to such rules, regulations, and orders as the Comptroller from time to time deems appropriate; and, except as otherwise specifically provided in such rules, regulations, or orders or in section 209 of this title, shall have the same rights and privileges and be subject to the same duties, restrictions, penalties, conditions, and limitations as apply to directors, officers, or employees of a national bank. (c) Payment of depositors and creditors The Comptroller may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors such amounts as in the opinion of the Comp- troller may safely be used for that purpose. All depositors and creditors who are similarly situ- ated shall be treated in the same manner. (d) Compensation of conservator and employees The conservator and professional employees appointed to represent or assist the conservator shall not be paid amounts greater than are pay- able to employees of the Federal Government for similar services, except that the Comptroller of the Currency may authorize payment at high- er rates (but not in excess of rates prevailing in the private sector), if the Comptroller deter- mines that paying such higher rates is necessary in order to recruit and retain competent per- sonnel. (e) Expenses All expenses of any such conservatorship shall be paid by the bank and shall be a lien upon the bank which shall be prior to any other lien. (Mar. 9, 1933, ch. 1, title II, § 206, 48 Stat. 3; Pub. L. 101–73, title VIII, § 805, Aug. 9, 1989, 103 Stat. 445.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘While such bank is in the hands of the conservator appointed by the Comptroller of the Currency, the Comptroller may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors, on a ratable basis, such amounts as in the opinion of the Comptroller may safely be used for this purpose; and the Comptroller may, in his discretion, permit the conservator to receive deposits, but deposits received while the bank is in the hands of the conser- vator shall not be subject to any limitation as to pay- ment or withdrawal, and such deposits shall be seg- regated and shall not be used to liquidate any indebted- ness of such bank existing at the time that a conser- vator was appointed for it, or any subsequent indebted- ness incurred for the purpose of liquidating any indebt- edness of such bank existing at the time such conser- vator was appointed. Such deposits received while the bank is in the hands of the conservator shall be kept on hand in cash, invested in the direct obligations of the United States, or deposited with a Federal reserve bank. The Federal reserve banks are authorized to open and maintain separate deposit accounts for such pur- pose, or for the purpose of receiving deposits from State officials in charge of State banks under similar circumstances.’’ Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. §§ 207, 208. Repealed. Pub. L. 101–73, title VIII, § 808, Aug. 9, 1989, 103 Stat. 446 Section 207, acts Mar. 9, 1933, ch. 1, title II, § 207, 48 Stat. 3; May 20, 1933, ch. 34, 48 Stat. 72, prescribed con- ditions for reorganization of banks, requiring consent of depositors and other creditors, of stockholders, or of both depositors and other creditors and stockholders, namely that the reorganization plan be fair and equi- table to depositors, other creditors, and stockholders and be in the public interest; that the plan be con- sented to in writing; and that the approved plan be binding on all consenting or nonconsenting depositors, creditors, and stockholders. Section 208, act Mar. 9, 1933, ch. 1, title II, § 208, 48 Stat. 4, made the provisions for segregation of deposits inapplicable after termination of conservatorship, and provided for termination of conservatorship after publi- cation of notice of termination and mailing of a copy of such notice by registered mail to depositors of record. § 209. Liability protection (a) Federal agency and employees In any case in which the conservator is a Fed- eral agency or an employee of the Government, the provisions of chapters 161 and 171 of title 28 shall apply with respect to such conservator’s li- ability for acts or omissions performed pursuant to and in the course of the duties and respon- sibilities of the conservatorship. (b) Other conservators In any case where the conservator is not a conservator described in subsection (a), the con- servator shall not be liable for damages in tort or otherwise for acts or omissions performed pursuant to and in the course of the duties and responsibilities of the conservatorship, unless such acts or omissions constitute gross neg- ligence, including any similar conduct or any form of intentional tortious conduct, as deter- mined by a court. (c) Indemnification The Comptroller 1 shall have authority to in- demnify the conservator on such terms as the Comptroller deems proper. (Mar. 9, 1933, ch. 1, title II, § 209, 48 Stat. 5; Sept. 3, 1954, ch. 1263, § 23, 68 Stat. 1234; Pub. L. 101–73, title VIII, § 806, Aug. 9, 1989, 103 Stat. 445.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘Conservators appointed pursuant to the provisions of this subchapter shall be subject to the provisions of and to the pen- alties prescribed by sections 334, 656, and 1005 of title 18; and sections 202, 216, 281, 431, 432, and 433 of title 18, in so far as applicable, are extended to apply to contracts, agreements, proceedings, dealings, claims and con- troversies by or with any such conservator or the Page 72 TITLE 12—BANKS AND BANKING § 210 Comptroller of the Currency under the provisions of this subchapter.’’ 1954—Act Sept. 3, 1954, corrected references to title 18. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 210. Governmental powers unimpaired Nothing in this subchapter shall be construed to impair in any manner any powers of the President, the Secretary of the Treasury, the Comptroller of the Currency, or the Board of Governors of the Federal Reserve System. (Mar. 9, 1933, ch. 1, title II, § 210, 48 Stat. 5; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Statutory Notes and Related Subsidiaries CHANGE OF NAME Act Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704, changed the name of the Federal Reserve Board to Board of Governors of the Federal Reserve System. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 211. Rules and regulations (a) In general The Comptroller of the Currency may pre- scribe such rules and regulations as the Comp- troller may deem necessary to carry out the provisions of this Act. (b) F.D.I.C. as conservator In any case in which the Federal Deposit In- surance Corporation is the conservator, any rules or regulations prescribed by the Comp- troller shall be consistent with any rules and regulations prescribed by the Federal Deposit Insurance Corporation pursuant to the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]. (Mar. 9, 1933, ch. 1, title II, § 211, 48 Stat. 5; Pub. L. 101–73, title VIII, § 807, Aug. 9, 1989, 103 Stat. 446.) Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (a), is act Mar. 9, 1933, ch. 1, 48 Stat. 1, popularly known as the Emergency Banking and Bank Conservation Act, which is classi- fied to sections 51a, 51b, 51c, 51d, 95, 201 to 212, 248, 347b, 347c, 347d, and 445 of this title and section 4305 of Title 50, War and National Defense, and classified as a note under section 4305 of Title 50. Section 51d of this title was repealed by act June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208. For effect of the repeal on outstanding debentures held by banks, see References in Text note set out under section 51b–1 of this title. The Federal Deposit Insurance Act, referred to in subsec. (b), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘The Comp- troller of the Currency is authorized and empowered, with the approval of the Secretary of the Treasury, to prescribe such rules and regulations as he may deem necessary in order to carry out the provisions of this subchapter. Whoever violates any rule or regulation made pursuant to this section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $5,000, or imprisoned not more than one year, or both.’’ Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 212. Right to amend; separability The right to alter, amend, or repeal this Act is expressly reserved. If any provision of this Act, or the application there of to any person or cir- cumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be af- fected thereby. (Mar. 9, 1933, ch. 1, title V, § 502, 48 Stat. 7.) Editorial Notes REFERENCES IN TEXT This Act, referred to in text, is act Mar. 9, 1933, ch. 1, 48 Stat. 1, popularly known as the Emergency Bank- ing and Bank Conservation Act, which is classified to sections 51a, 51b, 51c, 51d, 95, 201 to 212, 248, 347b, 347c, 347d, and 445 of this title and section 4305 of Title 50, War and National Defense, and classified as a note under section 4305 of Title 50. Section 51d of this title was repealed by act June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208. For effect of the repeal on outstanding debentures held by banks, see References in Text note set out under section 51b–1 of this title. CODIFICATION This section was not enacted as part of title II of act Mar. 9, 1933, ch. 1, 48 Stat. 2, which comprises this sub- chapter. § 213. Transferred Editorial Notes CODIFICATION Section, act Jan. 30, 1934, ch. 6, § 13, 48 Stat. 343, relat- ing to ratification of acts of the President and Sec- retary of the Treasury, was transferred to section 824 of former Title 31, and subsequently repealed by Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1068, the first section of which enacted Title 31, Money and Finance. SUBCHAPTER XV—CONVERSION OF NATIONAL BANKS INTO STATE BANKS § 214. Definitions (a) As used in this subchapter and section 321 of this title the term ‘‘State bank’’ means any