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1000 - Federal Deposit Insurance Act
{{4-28-06 p.1183}}
SEC. 11
(a) DEPOSIT INSURANCE.--
(1) INSURED AMOUNTS PAYABLE.--
(A) IN GENERAL.--The Corporation shall insure the
deposits of all insured depository institutions as provided in this
Act.
(B) NET AMOUNT OF INSURED DEPOSIT.--The net amount due
to any depositor at an insured depository institution shall not exceed
the standard maximum deposit insurance amount as determined in
accordance with subparagraphs (C), (D), (E) and (F) and paragraph (3).
(C) AGGREGATION OF DEPOSITS.--For the purpose of
determining the net amount due to any depositor under subparagraph (B),
the Corporation shall aggregate the amounts of all deposits in the
insured depository institution which are maintained by a depositor in
the same capacity and the same right for the benefit of the depositor
either in the name of the depositor or in the name of any other person,
other than any amount in a trust fund described in paragraph (1) or (2)
of section 7(i) or any funds
described in section 7(i)(3).
(D) Coverage for certain employee benefit plan
deposits.--
(i) PASS-THROUGH INSURANCE.--The Corporation shall
provide pass-through deposit insurance for the deposits of any employee
benefit plan.
(ii) Prohibition on acceptance of benefit plan
deposits.--An insured depository institution that is not well
capitalized or adequately capitalized may not accept employee benefit
plan deposits.
(iii) DEFINITIONS.--For purposes of this subparagraph,
the following definitions shall apply:
(I) CAPITAL STANDARDS.--The terms "well
capitalized" and "adequately capitalized" have the same
meanings as in section 38.
(II) EMPLOYEE BENEFIT PLAN.--The term "employee
benefit plan" has the same meaning as in paragraph (5)(B)(ii), and
includes any eligible deferred compensation plan described in section
457 of the Internal Revenue Code of 1986.
(III) PASS-THROUGH DEPOSIT INSURANCE.--The term
"pass-through deposit insurance" means, with respect to an
employee benefit plan, deposit insurance coverage based on the interest
of each participant, in accordance with regulations issued by the
Corporation.
(E) Standard maximum deposit insurance amount
defined.--For purposes of this Act, the term "standard maximum
deposit insurance amount" means $100,000, adjusted as provided under
subparagraph (F) after March 31, 2010.
(F) INFLATION ADJUSTMENT.--
(i) IN GENERAL.--By April 1 of 2010, and the 1st day of
each subsequent 5-year period, the Board of Directors and the National
Credit Union Administration Board shall jointly consider the factors
set forth under clause (v), and, upon determining that an inflation
adjustment is appropriate, shall jointly prescribe the amount by which
the standard maximum deposit insurance amount and the standard maximum
share insurance amount (as defined in section 207(k) of the Federal
Credit Union Act) applicable to any depositor at an insured depository
institution shall be increased by calculating the product of--
(I) $100,000; and
(II) the ratio of the published annual value of the Personal
Consumption Expenditures Chain--Type Price Index (or any successor
index thereto) published by the Department of Commerce, for the
calendar year preceding the year in which the adjustment is calculated
under this clause, to the published annual value of such index for the
calendar year preceding the date this subparagraph takes effect under
the Federal Deposit Insurance Reform Act of 2005.
The values used in the calculation under subclause (II) shall be, as
of the date of the calculation, the values most recently published by
the Department of Commerce.
(ii) ROUNDING.--If the amount determined under clause
(ii) for any period is not a multiple of $10,000, the amount so
determined shall be rounded down to the nearest $10,000.
{{4-28-06 p.1184}}
(iii) PUBLICATION AND REPORT TO THE CONGRESS.--Not later
than April 5 of any calendar year in which an adjustment is required to
be calculated under clause (i) to the standard maximum deposit
insurance amount and the standard maximum share insurance amount under
such clause, the Board of Directors and the National Credit Union
Administration Board shall--
(I) publish in the Federal Register the standard maximum deposit
insurance amount, the standard maximum share insurance amount, and the
amount of coverage under paragraph (3)(A) and section 207(k)(3) of the
Federal Credit Union Act, as so calculated; and
(II) jointly submit a report to the Congress containing the
amounts described in subclause (I).
(iv) 6-MONTH IMPLEMENTATION PERIOD.--Unless an Act of
Congress enacted before July 1 of the calendar year in which an
adjustment is required to be calculated under clause (i) provides
otherwise, the increase in the standard maximum deposit insurance
amount and the standard maximum share insurance amount shall take
effect on January 1 of the year immediately succeeding such calendar
year.
(v) INFLATION ADJUSTMENT CONSIDERATION.--In making any
determination under clause (i) to increase the standard maximum deposit
insurance amount and the standard maximum share insurance amount, the
Board of Directors and the National Credit Union Administration Board
shall jointly consider--
(I) the overall state of the Deposit Insurance Fund and the
economic conditions affecting insured depository institutions;
(II) potential problems affecting insured depository
institutions; or
(III) whether the increase will cause the reserve ratio of the
fund to fall below 1.15 percent of estimated insured deposits.
(2) GOVERNMENT DEPOSITORS.--
(A) IN GENERAL.--Notwithstanding any limitation in this
Act or in any other provision of law relating to the amount of deposit
insurance available to any 1 depositor--
(i) a government depositor shall, for the purpose of determining
the amount of insured deposits under this subsection, be deemed to be a
depositor separate and distinct from any other officer, employee, or
agent of the United States or any public unit referred to in
subparagraph (B); and
(ii) except as provided in subparagraph (C), the deposits of a
government depositor shall be insured in an amount equal to the
standard maximum deposit insurance amount (as determined under
paragraph (1)).
(B) GOVERNMENT DEPOSITOR.--In this paragraph, the term
"government depositor" means a depositor that is--
(i) an officer, employee, or agent of the United States having
official custody of public funds and lawfully investing or depositing
the same in time and savings deposits in an insured depository
institution;
(ii) an officer, employee, or agent of any State of the United
States, or of any county, municipality, or political subdivision
thereof having official custody of public funds and lawfully investing
or depositing the same in time and savings deposits in an insured
depository institution in such State;
(iii) an officer, employee, or agent of the District of
Columbia having official custody of public funds and lawfully investing
or depositing the same in time and savings deposits in an insured
depository institution in the District of Columbia;
(iv) an officer, employee, or agent of the Commonwealth of
Puerto Rico, of the Virgin Islands, of American Samoa, of the Trust
Territory of the Pacific Islands, or of Guam, or of any county,
municipality, or political subdivision thereof having official custody
of public funds and lawfully investing or depositing the same in time
and savings deposits in an insured depository institution in the
Commonwealth of Puerto Rico, theVirgin Islands, American Samoa, the
Trust Territory of the Pacific Islands, or Guam, respectively; or
(v) an officer, employee, or agent of any Indian tribe (as
defined in section 3(c) of the Indian Financing Act of 1974) or agency
thereof having official custody of tribal funds and lawfully investing
or depositing the same in time and savings deposits in an insured
depository institution.
{{4-28-06 p.1185}}
(C) AUTHORITY TO LIMIT DEPOSITS.--The Corporation may
limit the aggregate amount of funds that may be invested or deposited
in deposits in any insured depository institution by any government
depositor on the basis of the size of any such bank in terms of its
assets: Provided, however, such limitation may be exceeded
by the pledging of acceptable securities to the government depositor
when and where required.
(3) CERTAIN RETIREMENT ACCOUNTS.--
(A) IN GENERAL.--Notwithstanding any limitation in this
Act relating to the amount of deposit insurance available for the
account of any 1 depositor, deposits in an insured depository
institution made in connection with--
(i) any individual retirement account described in section 408(a)
of the Internal Revenue Code of 1986;
(ii) subject to the exception contained in paragraph (1)(D)(ii),
any eligible deferred compensation plan described in section 457 of
such Code; and
(iii) any individual account plan defined in section 3(34) of the
Employee Retirement Income Security Act, and any plan described in
section 401(d) of the Internal Revenue Code of 1986, to the extent that
participants and beneficiaries under such plan have the right to direct
the investment of assets held in individual accounts maintained on
their behalf by the plan,
shall be aggregated and insured in an amount not to exceed $250,000
(which amount shall be subject to inflation adjustments as provided in
paragraph (1)(F), except that $250,000 shall be substituted for
$100,000 wherever such term appears in such paragraph) per participant
per insured depository institution.
(4) DEPOSIT INSURANCE FUND.--
(A) ESTABLISHMENT.--There is established the Deposit
Insurance Fund, which the Corporation shall--
(i) maintain and administer;
(ii) use to carry out its insurance purposes, in the manner
provided by this subsection; and
(iii) invest in accordance with section 13(a).
(B) USES.--The Deposit Insurance Fund shall be available
to the Corporation for use with respect to insured depository
institutions the deposits of which are insured by the Deposit Insurance
Fund.
(C) LIMITATION ON USE.--Notwithstanding any provision of
law other than section 13(c)(4)(G), the Deposit Insurance Fund shall
not be used in any manner to benefit any shareholder or affiliate
(other than an insured depository institution that receives assistance
in accordance with the provisions of this Act) of--
(i) any insured depository institution for which the Corporation
has been appointed conservator or receiver, in connection with any type
of resolution by the Corporation;
(ii) any other insured depository institution in default or in
danger of default, in connection with any type of resolution by the
Corporation; or
(iii) any insured depository institution, in connection with the
provision of assistance under this section or section 13 with respect
to such institution, except that this clause shall not prohibit any
assistance to any insured depository institution that is not in
default, or that is not in danger of default, that is acquiring (as
defined in section 13(f)(8)(B)) another insured depository institution.
(D) DEPOSITS.--All amounts assessed against insured
depository institutions by the Corporation shall be deposited into the
Deposit Insurance Fund.
(5) Certain investment contracts not treated as insured
deposits.--
(A) IN GENERAL.--A liability of an insured depository
institution shall not be treated as an insured deposit if the liability
arises under any insured depository institution investment contract
between any insured depository institution and any employee benefit
plan which expressly permits benefit-responsive withdrawals or
transfers.
(B) DEFINITIONS.--For purposes of subparagraph (A)--
(i) BENEFIT-RESPONSIVE WITHDRAWALS OR TRANSFERS.--The
term "benefit-responsive withdrawals or transfers" means any
withdrawal or transfer of funds (consisting
{{4-28-06 p.1186}}of any portion of the principal and any
interest credited at a rate guaranteed by the insured depository
institution investment contract) during the period in which any
guaranteed rate is in effect, without substantial penalty or
adjustment, to pay benefits provided by the employee benefit plan or to
permit a plan participant or beneficiary to redirect the investment of
his or her account balance.
(ii) EMPLOYEE BENEFIT PLAN.--The term "employee
benefit plan"--
(I) has the meaning given to such term in section 3(3) of the
Employee Retirement Income Security Act of 1974; and
(II) includes any plan described in section 401(d) of the
Internal Revenue Code of 1986.
[Codified to 12 U.S.C. 1821(a)]
[Source: Section 2[11(a)] of the Act of September 21, 1950
(Pub. L. No. 797; 64 Stat. 884), effective September 21, 1950, as
amended by section 301(c) of title III of the Act of October 16, 1966
(Pub. L. No. 89--695; 80 Stat. 1055), effective October 16, 1966;
section 7(a)(3) of title I of the Act of December 23, 1969 (Pub. L. No.
91--151; 83 Stat. 375), effective December 23, 1969; sections 101(a)(3)
and 102(a)(3) of title I of the Act of October 28, 1974 (Pub. L. No.
93--495; 88 Stat. 1500 and 1502), effective November 27, 1974; section
1401(a) of title XIV of the Act of November 10, 1978 (Pub. L. No.
95--630; 92 Stat. 3712), effective March 10, 1979; section 323 of title
III of the Act of December 21, 1979 (Pub. L. No. 96--153; 93 Stat.
1120); section 308 of title III of the Act of March 31, 1980 (Pub. L.
No. 96--221; 94 Stat. 147), effective March 31, 1980; section 103 of
title I of the Act of December 26, 1981 (Pub. L. No. 97--110; 95 Stat.
1514), effective December 26, 1981; sections 201(a)(1) and 211 of title
II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and
218), effective August 9, 1989; sections 202(a) and (b) of title II of
the Act of December 12, 1991 (Pub. L. No. 102--233; 105 Stat. 1766),
effective December 12, 1991; sections 311(a)(1), (b)(1), (b)(2), and
(b)(5) of title III of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2363, 2364 and 2366, respectively), effective
December 19, 1993; sections 8(a)--(g) and (i) of the Act of December
17, 1993 (Pub. L. No. 103--204; 107 Stat. 2384--2388), effective
December 17, 1993; section 602(a)(21) of title VI of the Act of
September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2289), effective
September 23, 1994; Section 2705 of title II of the Act of September
30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--495), effective
September 30, 1996; section 117 of the Act of November 12, 1999 (Pub.
L. No. 106--102; 113 Stat. 1372), effective March 12, 2000; section
736(a)(6) of title VII of the Act of November 12, 1999 (Pub. L.
106--102; 113 Stat. 1481), effective November 12, 1999; section
2103(a)--(c) of title II of the Act of February 8, 2006 (Pub. L. No.
109--171; 120 Stat. 10 and 11), effective date shall take effect on the
date the final regulations required under section 9(a)(2) take effect;
section 2(a) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119
Stat. 3601 and 3602), effective date shall take affect on the date on
which the final regulations required under section 2109(a)(2) of the
Federal Deposit Insurance Reform Act of 2005 take effect; section
8(a)(11)--(14) of the Act of February 15, 2006 (Pub. L. No. 109--173;
119 Stat. 3611, and 3612), effective date shall take effect on the day
of the merger of the Bank Insurance Fund and the Savings Association
Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of
2005]
(b) For the purposes of this Act an insured depository institution
shall be deemed to have been closed on account of inability to meet the
demands of its depositors in any case in which it has been closed for
the purpose of liquidation without adequate provision being made for
payment of its depositors.
[Codified to 12 U.S.C. 1821(b)]
[Source: Section 2[11(b)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 884), effective September 21, 1950, as amended by
section 201(a)(1) of title II of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 187), effective August 9,
1989]
(c) Appointment of Corporation as Conservator or
Receiver.--
(1) IN GENERAL.--Notwithstanding any other provision of
Federal law, the law of any State, or the constitution of any State,
the Corporation may accept appointment and act as conservator or
receiver for any insured depository institution upon appointment in the
manner provided in paragraph (2) or (3).
{{2-29-08 p.1187}}
(2) FEDERAL DEPOSITORY INSTITUTIONS.--
(A) APPOINTMENT.--
(i) CONSERVATOR.--The Corporation may, at the discretion
of the supervisory authority, be appointed conservator of any insured
Federal depository institution and the Corporation may accept such
appointment.
(ii) RECEIVER.--The Corporation shall be appointed
receiver, and shall accept such appointment, whenever a receiver is
appointed for the purpose of liquidation or winding up the affairs of
an insured Federal depository institution by the appropriate Federal
banking agency, notwithstanding any other provision of Federal law
(other than section 21A of the Federal Home Loan Bank Act).
(B) ADDITIONAL POWERS.--In addition to and not in
derogation of the powers conferred and the duties imposed by this
section on the Corporation as conservator or receiver, the Corporation,
to the extent not inconsistent with such powers and duties, shall have
any other power conferred on or any duty (which is related to the
exercise of such power) imposed on a conservator or receiver for any
Federal depository institution under any other provision of law.
(C) CORPORATION NOT SUBJECT TO ANY OTHER AGENCY.-- When
acting as conservator or receiver pursuant to an appointment described
in subparagraph (A), the Corporation shall not be subject to the
direction or supervision of any other agency or department of the
United States or any State in the exercise of the Corporation's rights,
powers, and privileges.
(D) Depository institution in conservatorship subject to
banking agency supervision.--Notwithstanding subparagraph (C), any
Federal depository institution for which the Corporation has been
appointed conservator shall remain subject to the supervision of the
appropriate Federal banking agency.
(3) INSURED STATE DEPOSITORY INSTITUTIONS.--
(A) APPOINTMENT BY APPROPRIATE STATE SUPERVISOR.--
Whenever the authority having supervision of any insured State
depository institution appoints a conservator or receiver for such
institution and tenders appointment to the Corporation, the Corporation
may accept such appointment.
(B) ADDITIONAL POWERS.--In addition to the powers
conferred and the duties related to the exercise of such powers imposed
by State law on any conservator or receiver appointed under the law of
such State for an insured State depository institution, the
[The page following this is 1188.03.]
{{10-31-08 p.1188.03}}
Corporation, as conservator or receiver pursuant to an appointment
described in subparagraph Corporation, as conservator or (A), shall
have the powers conferred and the duties imposed by this section on the
Corporation as conservator or receiver.
(C) CORPORATION NOT SUBJECT TO ANY OTHER AGENCY.--When
acting as conservator or receiver pursuant to an appointment described
in subparagraph (A), the Corporation shall not be subject to the
direction or supervision of any other agency or department of the
United States or any State in the exercise of its rights, powers, and
privileges.
(D) Depository institution in conservatorship subject to
banking agency supervision.--Notwithstanding subparagraph (C), any
insured State depository institution for which the Corporation has been
appointed conservator shall remain subject to the supervision of the
appropriate State bank or savings association supervisor.
(4) Appointment of corporation by the
corporation.--Except as otherwise provided in section 21A of the
Federal Home Loan Bank Act and notwithstanding any other provision of
Federal law, the law of any State, or the constitution of any State,
the Corporation may appoint itself as sole conservator or receiver of
any insured State depository institution if--
(A) the Corporation determines--
(i) that--
(I) a conservator, receiver, or other legal custodian has been
appointed for such institution;
(II) such institution has been subject to the appointment of any
such conservator, receiver, or custodian for a period of at least 15
consecutive days; and
(III) 1 or more of the depositors in such institution is unable
to withdraw any amount of any insured deposit; or
(ii) that such institution has been closed by or under the laws
of any State; and
(B) the Corporation determines that 1 or more of the grounds
specified in paragraph (5)--
(i) existed with respect to such institution at the time--
(I) the conservator, receiver, or other legal custodian was
appointed; or
(II) such institution was closed; or
(ii) exist at any time--
(I) during the appointment of the conservator, receiver, or other
legal custodian; or
(II) while such institution is closed.
(5) GROUNDS FOR APPOINTING CONSERVATOR OR RECEIVER.--The
grounds for appointing a conservator or receiver (which may be the
Corporation) for any insured depository institution are as follows:
(A) ASSETS INSUFFICIENT FOR OBLIGATIONS.--The
institution's assets are less than the institution's obligations to its
creditors and others, including members of the institution.
(B) SUBSTANTIAL DISSIPATION.--Substantial dissipation of
assets or earnings due to--
(i) any violation of any statute or regulation; or
(ii) any unsafe or unsound practice.
(C) UNSAFE OR UNSOUND CONDITION.--An unsafe or unsound
condition to transact business.
(D) CEASE AND DESIST ORDERS.--Any willful violation of a
cease-and-desist order which has become final.
(E) CONCEALMENT.--Any concealment of the institution's
books, papers, records, or assets, or any refusal to submit the
institution's books, papers, records, or affairs for inspection to any
examiner or to any lawful agent of the appropriate Federal banking
agency or State bank or savings association supervisor.
(F) INABILITY TO MEET OBLIGATIONS.--The institution is
likely to be unable to pay its obligations or meet its depositors'
demands in the normal course of business.
{{10-31-08 p.1188.04}}
(G) LOSSES.--The institution has incurred or is likely
to incur losses that will deplete all or substantially all of its
capital, and there is no reasonable prospect for the institution to
become adequately capitalized (as defined in section 38(b)) without
Federal assistance.
(H) VIOLATIONS OF LAW.--Any violation of any law or
regulation, or any unsafe or unsound practice or condition that is
likely to--
(i) cause insolvency or substantial dissipation of assets or
earnings;
(ii) weaken the institution's condition; or
(iii) otherwise seriously prejudice the interests of the
institution's depositors or the deposit insurance fund.
(I) CONSENT.--The institution, by resolution of its
board of directors or its shareholders or members, consents to the
appointment.
(J) CESSATION OF INSURED STATUS.--The institution ceases
to be an insured institution.
(K) UNDERCAPITALIZATION.--The institution is
undercapitalized (as defined in
section 38(b)), and--
(i) has no reasonable prospect of becoming adequately capitalized
(as defined in that section);
(ii) fails to become adequately capitalized when required to do
so under section 38(f)(2)(A);
(iii) fails to submit a capital restoration plan acceptable to
that agency within the time prescribed under
section 38(e)(2)(D); or
(iv) materially fails to implement a capital restoration plan
submitted and accepted under section 38(e)(2).
(L) THE INSTITUTION.--
(i) is critically undercapitalized, as defined in section 38(b);
or
(ii) otherwise has substantially insufficient capital.
(M) MONEY LAUNDERING OFFENSE.--The Attorney General
notifies the appropriate Federal banking agency or the Corporation
in writing that the insured depository institution has been found
guilty of a criminal offense under
section 1956 or
1957 of title 18, United
States Code, or section 5322
or 5324 of title 31, United
States Code.
(6) Appointment by director of the office of thrift
supervision.--
(A) CONSERVATOR.--The Corporation or the Resolution
Trust Corporation may, at the discretion of the Director of the Office
of Thrift Supervision, be appointed conservator and the Corporation may
accept any such appointment.
(B) RECEIVER. *
--Whenever the Director of the Office of Thrift Supervision appoints a
receiver under the provisions of subparagraph (A) or (C) of
section 5(d)(2) of the Home
Owners' Loan Act for the purpose of liquidation or winding up any
savings association's affairs--
(i) before such date as is determined by the Chairperson of the
Thrift Depositor Protection Oversight Board under section
21A(b)(3)(A)(ii) of the Federal Home Loan Bank Act the Resolution Trust
Corporation shall be appointed;
(ii) on or after the date determined by the Chairperson of the
Thrift Depositor Protection Oversight Board under section
21A(b)(3)(A)(ii) of the Federal Home Loan Bank Act, the Resolution
Trust Corporation shall be appointed if the Resolution
Trust
{{12-29-06 p.1188.05}}Corporation had been placed in control of the
depository institution at any time before such date; and
(iii) on or after the date determined by the Chairperson of the
Thrift Depositor Protection Oversight Board under section
21A(b)(3)(A)(ii) of the Federal Home Loan Bank Act, the Corporation
shall be appointed unless the Resolution Trust Corporation is required
to be appointed under clause (ii).
(7) JUDICIAL REVIEW.--If the Corporation is appointed
(including the appointment of the Corporation as receiver by the Board
of Directors) as conservator or receiver of a depository institution
under paragraph (4), (9), or (10), the depository institution may, not
later than 30 days thereafter, bring an action in the United States
district court for the judicial district in which the home office of
such depository institution is located, or in the United States
District Court for the District of Columbia, for an order requiring the
Corporation to be removed as the conservator or receiver (regardless of
how such appointment was made), and the court shall, upon the merits,
dismiss such action or direct the Corporation to be removed as the
conservator or receiver.
(8) Replacement of conservator of state depository
institution.--
(A) IN GENERAL.--In the case of any insured State
depository institution for which the Corporation appointed itself as
conservator pursuant to paragraph (4), the Corporation may, without any
requirement of notice, hearing, or other action, replace itself as
conservator with itself as receiver of such institution.
(B) REPLACEMENT TREATED AS REMOVAL OF INCUMBENT.-- The
replacement of a conservator with a receiver under subparagraph (A)
shall be treated as the removal of the Corporation as conservator.
(C) Right of review of original appointment not
affected.--The replacement of a conservator with a receiver under
subparagraph (A) shall not affect any right of the insured State
depository institution to obtain review, pursuant to paragraph (7), of
the original appointment of the conservator.
(9) Appropriate federal banking agency may appoint
corporation as conservator or receiver for insured state depository
institution to carry out section 38.--
(A) IN GENERAL.--The appropriate Federal banking agency
may appoint the Corporation as sole receiver (or, subject to paragraph
(11), sole conservator) of any insured State depository institution,
after consultation with the appropriate State supervisor, if the
appropriate Federal banking agency determines that--
(i) 1 or more of the grounds specified in subparagraphs (K) and
(L) of paragraph (5) exist with respect to that institution; and
(ii) the appointment is necessary to carry out the purpose of
section 38.
(B) NONDELEGATION.--The appropriate Federal banking
agency shall not delegate any action under subparagraph (A).
(10) Corporation may appoint itself as conservator or
receiver for insured depository institution to prevent loss to deposit
insurance fund.--The Board of Directors may appoint the Corporation
as sole conservator or receiver of an insured depository institution,
after consultation with the appropriate Federal banking agency and the
appropriate State supervisor (if any), if the Board of Directors
determines that--
(A) 1 or more of the grounds specified in any subparagraph of
paragraph (5) exist with respect to the institution; and
(B) the appointment is necessary to reduce--
(i) the risk that the deposit insurance fund would incur a loss
with respect to the insured depository institution, or
(ii) any loss that the deposit insurance fund is expected to
incur with respect to that institution.
(11) Appropriate federal banking agency shall not appoint
conservator under certain provisions without giving corporation
opportunity to appoint receiver.--The appropriate Federal banking
agency shall not appoint a conservator for an insured depository
institution under subparagraph (K) or (L) of paragraph (5) without the
Corporation's consent unless the agency has given the Corporation 48
hours notice of the
{{12-29-06 p.1188.06}}agency's intention to appoint the conservator
and the grounds for the appointment.
(12) Directors not liable for acquiescing in appointment of
conservator or receiver.--The members of the board of directors of
an insured depository institution shall not be liable to the
institution's shareholders or creditors for acquiescing in or
consenting in good faith to--
(A) the appointment of the Corporation or the Resolution Trust
Corporation as conservator or receiver for that institution; or
(B) an acquisition or combination under
section 38(f)(2)(A)(iii).
(13) Additional powers
In any case in which the Corporation is appointed conservator or
receiver under paragraph (4), (6), (9), or (10) for any insured State
depository institution--
(A) this section shall apply to the Corporation as conservator or
receiver in the same manner and to the same extent as if that
institution were a Federal depository institution for which the
Corporation had been appointed conservator or receiver; and
(B) the Corporation as receiver of the institution may--
(i) liquidate the institution in an orderly manner; and
(ii) make any other disposition of any matter concerning the
institution, as the Corporation determines is in the best interests of
the institution, the depositors of the institution, and the
Corporation.
[Codified to 12 U.S.C. 1821(c)]
[Source: Section 2[11(c)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 884), effective September 21, 1950, as amended by
section 6(c)(17) of the Act of September 17, 1978 (Pub. L. No. 95--369;
92 Stat. 619), effective September 17, 1978; section 113(j) of title I
of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1474),
effective October 15, 1982; sections 201(b) and 212(a) of title II of
the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 188 and 222),
effective August 9, 1989; section 102 of title I of the Act of December
12, 1991 (Pub. L. No. 102--233; 105 Stat. 1761), effective December 12,
1991; sections 133(a) and (e) of title I of the Act of December 19,
1991 (Pub. L. No. 102--242; 105 Stat. 2270 and 2272, respectively),
effective December 19, 1992; sections 1501(a) and 1611(b) of title XV
and XVI, respectively, of the Act of October 28, 1992 (Pub. L. No.
102--550; 106 Stat. 4044, 4090), effective December 20, 1992; section
3001(b) of title III of the Act of August 10, 1993 (Pub. L. No.
103--66; 107 Stat. 336), effective August 10, 1993; sections
27(b)(1)--(3) of the Act of December 17, 1993 (Pub. L. No. 103--204;
107 Stat. 2410), effective December 17, 1993; section 411(c)(2)(A) of
title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108
Stat. 2253), effective September 23, 1994; sections 8(a)(4)(A)--(C) of
the Act of October 30, 2004 (Pub. L. No. 108-386; 118 Stat. 2231),
effective October 30, 2004; section 701(b) of title VII of the Act of
October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1985), effective
October 13, 2006, and shall apply with respect to conservators or
receivers appointed on or after the day of
enactment]
*Editor's Note: Section 37(b) of the Act of
December 17, 1993 (Pub. L. No. 103--204; 107 Stat. 2416) provides as
follows:
"(b) Transactions Involving the FDIC as
Receiver.--Notwithstanding the extension, pursuant to section 27,
of the Resolution Trust Corporation's jurisdiction to be appointed
conservator or receiver of certain savings associations after September
30, 1993, no provision of this Act or any amendment made by this Act
shall invalidate or otherwise affect--
"(1) any appointment of the Federal Deposit Insurance
Corporation as receiver for any savings association that became
effective before the date of enactment of this Act; or
"(2) any action taken by the Federal Deposit Insurance
Corporation as such receiver before, on, or after such date of
enactment." Go Back to Text
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