Priority of Dividends:

1. Administrative expenses of the Receiver;
2. Any deposit liability of the institution;
3. Any other general or senior liability of the institution;
4. Any subordinated obligations;
5. Any obligations to the shareholders or members (including holding companies and their creditors).

Types of Dividends:

1. Advance: Dividends paid to proven uninsured depositors (usually paid within 30 days of closing). The FDIC Board of Directors authorizes the percentage of dividends for this type of dividend.
2. Traditional: Dividends paid from the net proceeds derived from converting assets of the institution to cash. Such a dividend may be declared for uninsured depositors and unsecured creditors with proven claims, and others in order of their priority. This type of dividend is the most commonly used.
3. Initial: A hybrid of the Advance and Traditional dividends. This dividend is based on the dollar amount paid for the assets assumed by the acquiring institution less appropriate reserves. The Initial dividend is paid as soon as possible after the institution is closed and paid to the proven uninsured depositors, generally within a few weeks.
4. Post Insolvency Interest: This dividend is paid once a receivership has paid 100% of the principal on the uninsured Depositor and General Creditor Claims.