[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR627.2725]



[Page 281-282]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 627_TITLE IV CONSERVATORS, RECEIVERS, AND VOLUNTARY LIQUIDATIONS

--Table of Contents

 

                  Subpart B_Receivers and Receiverships

 

Sec. 627.2725  Powers and duties of the receiver.



    (a) General. (1) Upon appointment as receiver, the receiver shall 

take possession of a Farm Credit institution pursuant to 12 U.S.C. 2183 

and Sec. 627.2710 of this part in order to wind up the business 

operations of such institution, collect the debts owed to the 

institution, liquidate its property and assets, pay its creditors, and 

distribute the remaining proceeds to stockholders. The receiver is 

authorized to exercise all powers necessary to the efficient termination 

of an institution's operation as provided for in this subpart.

    (2) Upon its appointment as receiver, the receiver automatically 

succeeds to--

    (i) All rights, titles, powers and privileges of the institution and 

of any stockholder, officer, or director of such institution with 

respect to the institution and the assets of the institution; and

    (ii) Title to the books, records, and assets of any previous 

conservator or other legal custodian of such institution.

    (3) The receiver of a Farm Credit institution serves as the trustee 

of the receivership estate and conducts its operations for the benefit 

of the creditors and stockholders of the institution.

    (b) Specific powers. The receiver may:

    (1) Exercise all powers as are conferred upon the officers and 

directors of the institution under law and the charter, articles, and 

bylaws of the institution.

    (2) Take any action the receiver considers appropriate or expedient 

to carry on the business of the institution during the process of 

liquidating its assets and winding up its affairs.

    (3) Extend credit to existing borrowers as necessary to honor 

existing commitments and to effectuate the purposes of the receivership.

    (4) Borrow such sums as necessary to effectuate the purposes of the 

receivership.

    (5) Pay any sum the receiver deems necessary or advisable to 

preserve, conserve, or protect the institution's assets or property or 

rehabilitate or improve such property and assets.

    (6) Pay any sum the receiver deems necessary or advisable to 

preserve, conserve, or protect any asset or property on which the 

institution has a lien or in which the institution has a financial or 

property interest, and pay off and discharge any liens, claims, or 

charges of any nature against such property.

    (7) Investigate any matter related to the conduct of the business of 

the institution, including, but not limited to, any claim of the 

institution against any individual or entity, and institute appropriate 

legal or other proceedings to prosecute such claims.

    (8) Institute, prosecute, maintain, defend, intervene, and otherwise 

participate in any legal proceeding by or against the institution or in 

which the institution or its creditors or members have any interest, and 

represent in every way the institution, its members, and creditors.

    (9) Employ attorneys, accountants, appraisers, and other 

professionals to give advice and assistance to the receivership 

generally or on particular matters, and pay their retainers, 

compensation, and expenses, including litigation costs.

    (10) Hire any agents or employees necessary for proper 

administration of the receivership.

    (11) Execute, acknowledge, and deliver, in person or through a 

general or specific delegation, any instrument necessary for any 

authorized purpose, and any instrument executed under this paragraph 

shall be valid and effective as if it had been executed by the 

institution's officers by authority of its board of directors.

    (12) Sell for cash or otherwise any mortgage, deed of trust, chose 

in action, note contract, judgment or decree, stock, or debt owed to the 

institution, or any property (real or personal, tangible or intangible).

    (13) Purchase or lease office space, automobiles, furniture, 

equipment, and supplies, and purchase insurance, professional, and 

technical services necessary for the conduct of the receivership.

    (14) Release any assets or property of any nature, regardless of 

whether the



[[Page 282]]



subject of pending litigation, and repudiate, with cause, any lease or 

executory contract the receiver considers burdensome.

    (15) Settle, release, or obtain release of, for cash or other 

consideration, claims and demands against or in favor of the institution 

or receiver.

    (16) Pay, out of the assets of the institution, all expenses of the 

receivership and all costs of carrying out or exercising the rights, 

powers, privileges, and duties as receiver.

    (17) Pay out of the assets of the institution all approved claims of 

indebtedness in accordance with priorities established in this subpart.

    (18) Take all actions and have such rights, powers, and privileges 

as are necessary and incident to the exercise of any specific power.

    (19) Take such actions, and have such additional rights, powers, 

privileges, immunities, and duties as the Farm Credit Administration 

Board authorizes by order or by amendment of any order or by regulation.

    (c) Authority to pay claims. The receiver of a bank is also 

empowered to pay claims of holders of notes, bonds, debentures, or other 

obligations issued by the bank under 12 U.S.C. 2153(c) or (d) in 

accordance with procedures specified by the Insurance Corporation 

pursuant to Sec. 627.2740(d) of this part.