[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: 12CFR627.2752]



[Page 285-286]

 

                       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. 627.2752  Priority of claims--other Farm Credit institutions.



    The following priority of claims shall apply to the distribution of 

the assets of an institution, other than a bank or 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 institution, 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 institution.

    (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 institution 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 institution 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



[[Page 286]]



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 institution, 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 general creditors.