[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: 12CFR627.2745]



[Page 284-285]

 

                       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. 627.2745  Priority of claims--associations.



    The following priority of claims shall apply to the distribution of 

the assets of an association in liquidation:

    (a) All costs, expenses, and debts incurred by the receiver in 

connection with the administration of the receivership.

    (b) Administrative expenses of the association, provided that such 

expenses were incurred within 60 days prior to the receiver's taking 

possession, and that such expenses shall be limited to reasonable 

expenses incurred for services actually provided by accountants, 

attorneys, appraisers, examiners, or management companies, or reasonable 

expenses incurred by employees which were authorized and reimbursable 

under a pre-existing expense reimbursement policy, that, in the opinion 

of the receiver, are of benefit to the receivership, and shall not 

include wages or salaries of employees of the association.

    (c) If authorized by the receiver, claims for wages and salaries, 

including vacation pay, earned prior to the appointment of the receiver 

by an employee of the association whom the receiver determines it is in 

the best interest of the receivership to engage or retain for a 

reasonable period of time.

    (d) If authorized by the receiver, claims for wages and salaries, 

including vacation pay, earned prior to the appointment of the receiver, 

up to a maximum of three thousand dollars ($3,000) per person as 

adjusted for inflation, by an employee of the association not engaged or 

retained by the receiver. The adjustment for inflation shall be the 

percentage by which the Consumer Price Index (as prepared by the 

Department of Labor) for the calendar year preceding the appointment of 

the receiver exceeds the Consumer Price Index for the calendar year 

1992.

    (e) All claims for taxes.

    (f) All claims of creditors, including the district bank, which are 

secured by assets or equities of the association in accordance with 

applicable Federal or State law.

    (g) All claims of the district bank other than those provided for in 

paragraph (f) of this section, based on the financing agreement between 

the association and the bank, including interest accrued before and 

after the appointment of the receiver, minus any setoff for stock or 

other equity of the district bank owned by the association made in 

accordance with this paragraph or paragraph (f) of this section. Prior 

to making such setoff, the district bank must obtain the approval of



[[Page 285]]



the Farm Credit Administration Board for the retirement of such 

equities.

    (h) All claims of general creditors.