[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: 12CFR627.2750]



[Page 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. 627.2750  Priority of claims--banks.



    The following priority of claims shall apply to the distribution of 

the assets of a bank 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 bank, 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 bank.

    (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 bank 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 bank 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 which are secured by specific assets or 

equities of the bank, with priority of conflicting claims of creditors 

within this same class to be determined in accordance with priorities of 

applicable Federal or State law.

    (g) All claims of holders of bonds issued by the bank individually 

to the extent such are collateralized in accordance with 12 U.S.C. 2154.

    (h) All claims of holders of consolidated and Systemwide bonds and 

claims of the other Farm Credit banks arising from their payments 

pursuant to 12 U.S.C. 2155.

    (i) All claims of general creditors.