II 

111TH CONGRESS 

1ST SESSION S. 1540 

To provide for enhanced authority of the Federal Deposit Insurance Corporation to act as receiver for certain affiliates of depository institutions, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 30, 2009 

Mr. CORKER (for himself and Mr. WARNER) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide for enhanced authority of the Federal Deposit 

Insurance Corporation to act as receiver for certain affiliates of depository institutions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Resolution Reform Act 

5 of 2009’’. 

6 SEC. 2. PURPOSES. 

7 The purposes of this Act are— 

8 (1) to allow the Federal Deposit Insurance Cor9 poration (in this Act referred to as the ‘‘CorporaVerDate Nov 24 2008 00:28 Aug 01, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1540.IS S1540

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1 tion’’) to resolve the holding companies, affiliates, 

2 and subsidiaries of failed or failing insured deposi3 tory institutions, consistent with the statutory mis4 sion of the Corporation, recognizing that depository 

5 institution holding companies serve as a source of 

6 strength for their subsidiary institutions, and that 

7 their affiliates and subsidiaries may provide critical 

8 services for such institutions; and 

9 (2) to provide a clear and cohesive set of rules 

10 to address the increasingly complex and interreliant 

11 business structures in which insured depository in12 stitutions operate in order to promote efficient and 

13 economical resolution. 

14 SEC. 3. DEFINITIONS. 

15 For purposes of this Act, the following definitions 

16 shall apply: 

17 (1) AFFILIATE.—The term ‘‘affiliate’’ has the 

18 same meaning as in section 2(k) of the Bank Hold19 ing Company Act of 1956. 

20 (2) BRIDGE DEPOSITORY INSTITUTION HOLD21 ING COMPANY.—The term ‘‘bridge depository insti22 tution holding company’’ means a new depository in23 stitution holding company organized by the Corpora24 tion pursuant to section 53(b) of the Federal De25 posit Insurance Act. 


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1 (3) CORPORATION.—The terms ‘‘Corporation’’ 

2 and ‘‘Board’’ mean the Federal Deposit Insurance 

3 Corporation and the Board of Directors thereof, re4 spectively. 

5 (4) COVERED AFFILIATE OR SUBSIDIARY.—The 

6 term ‘‘covered affiliate or subsidiary’’ means any af7 filiate or subsidiary of a depository institution hold8 ing company, or any subsidiary of an insured deposi9 tory institution that is a subsidiary of that deposi10 tory institution holding company, as to which the 

11 Corporation is appointed receiver. 

12 (5) COVERED DEPOSITORY INSTITUTION HOLD13 ING COMPANY.—The term ‘‘covered depository insti14 tution holding company’’ means a depository institu15 tion holding company with one or more affiliated or 

16 subsidiary insured depository institutions for which 

17 grounds exist to appoint a receiver pursuant to sec18 tion 11(c) of the Federal Deposit Insurance Act. 

19 (6) FOREIGN.—The term ‘‘foreign’’ means any 

20 country other than the United States and includes 

21 any territory, dependency, or possession of any coun22 try other than the United States. 

23 (7) INSURED DEPOSITORY INSTITUTION.—The 

24 term ‘‘insured depository institution’’ has the same 


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1 meaning as section 3(c)(2) of the Federal Deposit 

2 Insurance Act. 

3 SEC. 4. HOLDING COMPANY RESOLUTION AMENDMENTS TO 

4 THE FEDERAL DEPOSIT INSURANCE ACT. 

5 The Federal Deposit Insurance Act (12 U.S.C. 1811 

6 et seq.) is amended by adding at the end the following: 

7 ‘‘SEC. 51. RESOLUTION OF COVERED DEPOSITORY INSTITU8 TION HOLDING COMPANIES, AFFILIATES, 

9 AND SUBSIDIARIES. 

10 ‘‘(a) IN GENERAL.—Notwithstanding any other pro11 vision of Federal or State law, except section 52(c), it shall 

12 be the responsibility of the Corporation to resolve deposi13 tory institution holding companies of failed or failing in14 sured depository institutions and the affiliates and sub15 sidiaries of a depository institution holding company, in16 cluding any subsidiary of an insured depository institution 

17 that is a subsidiary of the depository institution holding 

18 company, using the powers and authorities conferred upon 

19 it by this Act. 

20 ‘‘(b) DEFINITIONS.—For purposes of this section and 

21 sections 52 and 53, the following definitions shall apply: 

22 ‘‘(1) BRIDGE DEPOSITORY INSTITUTION HOLD23 ING COMPANY.—The term ‘bridge depository institu24 tion holding company’ means a new depository instiVerDate Nov 24 2008 00:28 Aug 01, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1540.IS S1540

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1 tution holding company organized by the Corpora2 tion pursuant to section 53(b). 

3 ‘‘(2) COVERED AFFILIATE OR SUBSIDIARY.— 

4 The term ‘covered affiliate or subsidiary’ means any 

5 affiliate or subsidiary of a depository institution 

6 holding company, or any subsidiary of an insured 

7 depository institution that is a subsidiary of that de8 pository institution holding company, as to which the 

9 Corporation is appointed receiver under section 52. 

10 ‘‘(3) COVERED DEPOSITORY INSTITUTION

11 HOLDING COMPANY.—The term ‘covered depository 

12 institution holding company’ means a depository in13 stitution holding company with one or more affili14 ated or subsidiary insured depository institutions for 

15 which grounds exist to appoint a receiver pursuant 

16 to section 11(c). 

17 ‘‘(4) FUNCTIONALLY REGULATED AFFILIATE

18 OR SUBSIDIARY.—The term ‘functionally regulated 

19 affiliate or subsidiary’ means any company— 

20 ‘‘(A) that is not a depository institution 

21 holding company or a depository institution; 

22 and 

23 ‘‘(B) that is— 


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1 ‘‘(i) a broker or dealer that is reg2 istered under the Securities Exchange Act 

3 of 1934; 

4 ‘‘(ii) a registered investment adviser, 

5 properly registered by or on behalf of ei6 ther the Securities and Exchange Commis7 sion in accordance with the Investment Ad8 visers Act of 1940, or any State, with re9 spect to the investment advisory activities 

10 of such investment adviser and activities 

11 incidental to such investment advisory ac12 tivities; 

13 ‘‘(iii) an investment company that is 

14 registered under the Investment Company 

15 Act of 1940; 

16 ‘‘(iv) an insurance company that is 

17 subject to supervision by a State insurance 

18 regulator, with respect to the insurance ac19 tivities of the insurance company and ac20 tivities incidental to such insurance activi21 ties; or 

22 ‘‘(v) an entity that is subject to regu23 lation by the Commodity Futures Trading 

24 Commission, with respect to the commodVerDate Nov 24 2008 00:28 Aug 01, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1540.IS S1540

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1 ities activities of such entity and activities 

2 incidental to such commodities activities. 

3 ‘‘(5) FUNCTIONAL REGULATOR.—The term 

4 ‘functional regulator’ means the Federal or State 

5 regulator responsible for regulating the types of ac6 tivities engaged in by the depository institution hold7 ing company, its subsidiary institutions, or other af8 filiates and subsidiaries. The ‘functional regulators’ 

9 are— 

10 ‘‘(A) the Securities and Exchange Commis11 sion, if the depository institution holding com12 pany, any subsidiary institution, or other affil13 iate thereof, is a broker or dealer registered 

14 with the Commission under section 15(b) of the 

15 Securities Exchange Act of 1934 (15 U.S.C. 

16 78o(b)) in conjunction with the authorities 

17 granted to the Securities Investor Protection 

18 Corporation, as created by the Securities Inves19 tor Protection Act in resolution of brokers or 

20 dealers; 

21 ‘‘(B) the Commodity Futures Trading 

22 Commission, if the depository institution hold23 ing company, its subsidiary institution, or other 

24 affiliate thereof, is a futures commission mer25 chant or a commodity pool operator registered 


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1 with the Commodity Futures Trading Commis2 sion under the Commodity Exchange Act; and 

3 ‘‘(C) a State insurance commission or 

4 other board or authority, if the depository insti5 tution holding company, or an affiliate or sub6 sidiary thereof, is an insurance company. 

7 ‘‘SEC. 52. APPOINTMENT OF THE CORPORATION AS RE8 CEIVER. 

9 ‘‘(a) DEPOSITORY INSTITUTION HOLDING COMPA10 NIES.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding any other 

12 provision of Federal law, the law of any State, or the 

13 constitution of any State, and subject to subsection 

14 (c), the Corporation shall accept appointment, and 

15 shall act as the receiver of a covered depository in16 stitution holding company upon such appointment, 

17 in the manner provided in paragraph (2) or (3), if 

18 the Corporation determines, in its sole discretion, 

19 that such appointment will reduce the cost to the 

20 Deposit Insurance Fund, and that grounds specified 

21 in subsection (f) exist. If the Corporation determines 

22 that such appointment will not reduce the cost to 

23 the Deposit Insurance Fund, the Corporation may 

24 decline the appointment, as provided in subsection 

25 (c). 


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1 ‘‘(2) APPOINTMENT BY THE APPROPRIATE FED2 ERAL BANKING AGENCY.—Whenever the appropriate 

3 Federal banking agency appoints a receiver for a de4 pository institution holding company, the Federal 

5 banking agency shall tender the appointment to the 

6 Corporation, and the Corporation shall accept such 

7 appointment, unless the Corporation declines the ap8 pointment, as provided in subsection (c). 

9 ‘‘(3) APPOINTMENT OF THE CORPORATION BY

10 THE CORPORATION.—The Board of Directors may 

11 appoint the Corporation as receiver of a depository 

12 institution holding company, after consultation with 

13 the appropriate Federal banking agency, if the 

14 Board of Directors determines that, notwithstanding 

15 the existence of grounds specified in subsection (f), 

16 the appropriate Federal banking agency having su17 pervision of a covered depository institution holding 

18 company has declined to appoint the Corporation as 

19 receiver. 

20 ‘‘(4) FUNCTIONALLY REGULATED DEPOSITORY

21 INSTITUTION HOLDING COMPANIES.—When the ap22 propriate Federal banking agency appoints the Cor23 poration as receiver of a covered depository institu24 tion holding company, or the Board of Directors ap25 points the Corporation as receiver of a covered deVerDate Nov 24 2008 00:28 Aug 01, 2009 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1540.IS S1540

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1 pository institution holding company, the appro2 priate Federal banking agency or the Corporation 

3 shall consult with the covered depository institution 

4 holding company’s functional regulator, if any. 

5 ‘‘(b) AFFILIATES AND SUBSIDIARIES.— 

6 ‘‘(1) IN GENERAL.—Notwithstanding any other 

7 provision of Federal law, the law of any State, or the 

8 constitution of any State, and subject to paragraph 

9 (2) and subsection (c), in any case in which the Cor10 poration is appointed under this section as receiver 

11 for a depository institution holding company, the 

12 Corporation may appoint itself as the receiver of any 

13 affiliate or subsidiary of the insured depository insti14 tution or depository institution holding company 

15 that is incorporated or organized under the laws of 

16 any State, if the Corporation determines that such 

17 action would facilitate the orderly resolution of the 

18 insured depository institution or depository institu19 tion holding company, and is consistent with the 

20 purposes of this Act. 

21 ‘‘(2) FUNCTIONALLY REGULATED SUBSIDI22 ARIES.—The Corporation shall consult with the ap23 propriate Federal or State functional regulator when 

24 the Corporation appoints itself as the receiver of any 

25 functionally regulated affiliate or subsidiary. 


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1 ‘‘(c) BANKRUPTCY OR STATE INSURANCE RESOLU2 TION OPTION.— 

3 ‘‘(1) BANKRUPTCY GROUNDS FOR DECLINING

4 APPOINTMENT.—The Corporation may decline to ac5 cept appointment for a covered depository institution 

6 holding company, when, in its sole discretion, the 

7 Corporation determines that the resolution of that 

8 holding company would be better accomplished 

9 under title 11, of the United States Code, or under 

10 applicable State insurance law. 

11 ‘‘(2) RULEMAKING REQUIRED.—The Corpora12 tion shall, not later than 180 days after the date of 

13 enactment of this section, adopt regulations that es14 tablish criteria pursuant to which the Corporation 

15 will make the determination described in paragraph 

16 (1). 

17 ‘‘(d) SEPARATE ENTITIES.— 

18 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

19 each separate legal entity for which the Corporation 

20 is appointed receiver shall constitute a separate re21 ceivership. 

22 ‘‘(2) APPLICABILITY.—Paragraph (1) shall not 

23 apply to any insured depository institution sub24 sidiary for which the Corporation has appointed 

25 itself as receiver. 


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1 ‘‘(e) CORPORATION NOT SUBJECT TO ANY OTHER

2 AGENCY.—When acting as the receiver pursuant to an ap3 pointment described in subsection (a) or (b), the Corpora4 tion shall not be subject to the direction or supervision 

5 of any other agency or department of the United States 

6 or any State in the exercise of its rights, powers, and privi7 leges. 

8 ‘‘(f) GROUNDS FOR APPOINTMENT.—The grounds for 

9 appointing the Corporation as receiver of a depository in10 stitution holding company, affiliate, or subsidiary are that 

11 one or more grounds exist under section 11(c) to appoint 

12 a receiver for one or more affiliated insured depository in13 stitutions. 

14 ‘‘(g) TERMINATION AND EXCLUSION OF OTHER AC15 TIONS.—The appointment of the Corporation as receiver 

16 for a depository institution holding company or an insured 

17 depository institution that is an affiliate or subsidiary of 

18 a depository institution holding company shall imme19 diately, and by operation of law, terminate any case com20 menced with respect to the depository institution holding 

21 company or any affiliate or subsidiary under title 11, 

22 United States Code, or any proceeding under any State 

23 insolvency law with respect to the depository institution 

24 holding company or affiliate or subsidiary. No such case 

25 or proceeding may be commenced with respect to the deVerDate Nov 24 2008 00:28 Aug 01, 2009 Jkt 079200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1540.IS S1540

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1 pository institution holding company or any affiliate or 

2 subsidiary of the insured depository institution at any time 

3 while the Corporation acts as receiver of the depository 

4 institution holding company or any affiliate or subsidiary, 

5 without the written agreement of the Corporation. 

6 ‘‘(h) JUDICIAL REVIEW.— 

7 ‘‘(1) IN GENERAL.—If the Corporation is ap8 pointed (including the appointment of the Corpora9 tion by itself) as receiver of a depository institution 

10 holding company under subsection (a), the deposi11 tory institution holding company may, not later than 

12 30 days thereafter, bring an action in the United 

13 States district court for the judicial district in which 

14 the home office of such depository institution hold15 ing company is located, or in the United States Dis16 trict Court for the District of Columbia, for an order 

17 requiring the Corporation to be removed as the re18 ceiver (regardless of how such appointment was 

19 made), and the court shall, upon the merits, dismiss 

20 such action or direct the Corporation to be removed 

21 as the receiver. 

22 ‘‘(2) OTHER APPOINTMENT.—If the Corpora23 tion appoints itself as receiver of any affiliate or 

24 subsidiary of the insured depository institution or 

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1 section (b), the affiliate or subsidiary of the insured 

2 depository institution or depository institution hold3 ing company may, not later than 30 days thereafter, 

4 bring an action in the United States district court 

5 for the judicial district in which the home office of 

6 such any affiliate or subsidiary of the insured depos7 itory institution or depository institution holding 

8 company is located, or in the United States District 

9 Court for the District of Columbia, for an order re10 quiring the Corporation to be removed as the re11 ceiver, and the court shall, upon the merits, dismiss 

12 such action or direct the Corporation to be removed 

13 as the receiver. 

14 ‘‘SEC. 53. POWERS AND DUTIES OF CORPORATION AS RE15 CEIVER. 

16 ‘‘(a) RULEMAKING AUTHORITY OF CORPORATION.— 

17 The Corporation may prescribe such regulations as the 

18 Corporation determines appropriate regarding the orderly 

19 resolution and conduct of receiverships of covered deposi20 tory institution holding companies or any affiliate or sub21 sidiary, in accordance with section 52. 

22 ‘‘(b) RECEIVERSHIP, BACK-UP EXAMINATION, AND

23 ENFORCEMENT POWERS.—Except as provided in sub24 sections (c) and (e), the Corporation shall have the same 

25 powers and rights to carry out its duties with respect to 


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1 depository institution holding companies, or affiliates and 

2 subsidiaries, as the Corporation has under sections 8(t), 

3 10(b), 11, 12, 13(d), 13(e), 15, and 38, with adaptations 

4 made, in the sole discretion of the Corporation, that are 

5 appropriate to the differences in form and function among 

6 depository institution holding companies, insured deposi7 tory institutions, and their affiliates and subsidiaries. 

8 ‘‘(c) AUTHORITY TO OBTAIN CREDIT.— 

9 ‘‘(1) IN GENERAL.—A bridge depository institu10 tion holding company with respect to which the Cor11 poration is the receiver may obtain unsecured credit 

12 and issue unsecured debt. 

13 ‘‘(2) INABILITY TO OBTAIN CREDIT.—If a 

14 bridge depository institution holding company is un15 able to obtain unsecured credit or issue unsecured 

16 debt, the Corporation may authorize the obtaining of 

17 credit or the issuance of debt by the bridge deposi18 tory holding company— 

19 ‘‘(A) with priority over any or all of the 

20 obligations of the bridge depository holding 

21 company; 

22 ‘‘(B) secured by a lien on property of the 

23 bridge depository holding company that is not 

24 otherwise subject to a lien; or 


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1 ‘‘(C) secured by a junior lien on property 

2 of the bridge depository holding company that 

3 is subject to a lien. 

4 ‘‘(3) LIMITATION.—The Corporation may au5 thorize the obtaining of credit or the issuance of 

6 debt by a bridge depository holding company that is 

7 secured by a senior or equal lien on property of the 

8 bridge depository holding company that is subject to 

9 a lien, only if— 

10 ‘‘(A) the bridge depository holding com11 pany is unable to otherwise obtain such credit 

12 or issue such debt; and 

13 ‘‘(B) there is adequate protection of the in14 terest of the holder of the lien on the property 

15 with respect to which such senior or equal lien 

16 is proposed to be granted. 

17 ‘‘(d) DISPOSITION OF CERTAIN DEPOSITORY INSTI18 TUTION HOLDING COMPANIES, AFFILIATES, AND SUB19 SIDIARIES.—Notwithstanding any other provision of law 

20 (other than a conflicting provision of this Act), the Cor21 poration, in connection with the resolution of any insured 

22 depository institution with respect to which the Corpora23 tion has been appointed as receiver, shall— 

24 ‘‘(1) in the case of any depository institution 

25 holding company, or a covered affiliate or subsidiary 


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1 for which the Corporation is appointed receiver, that 

2 is a member of the Securities Investor Protection 

3 Corporation (in this section referred to as ‘SIPC’), 

4 coordinate with SIPC in the liquidation, if any, of 

5 the company, to facilitate the orderly and timely 

6 payment of claims under the Securities Investor Pro7 tection Act; and 

8 ‘‘(2) in the case of any other depository institu9 tion holding company, or covered affiliate or sub10 sidiary, that is functionally regulated, coordinate 

11 with the appropriate Federal or State functional reg12 ulator in the disposition of the company, to facilitate 

13 the orderly and timely payment of claims under ap14 plicable guaranty plans, including State insurance 

15 guaranty plans. 

16 ‘‘(e) PRIORITY OF EXPENSES AND UNSECURED

17 CLAIMS.— 

18 ‘‘(1) IN GENERAL.—Allowed claims (other than 

19 secured claims to the extent of any such security) 

20 against a covered depository institution holding com21 pany or any covered affiliate or subsidiary that are 

22 proven to the satisfaction of the receiver for such 

23 covered depository institution holding company, affil24 iate, or subsidiary shall have priority in the following 

25 order: 


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1 ‘‘(A) Administrative expenses of the re2 ceiver. 

3 ‘‘(B) Any obligation of the covered deposi4 tory institution holding company, or covered af5 filiate or subsidiary, to the Corporation. 

6 ‘‘(C) Any general or senior liability of the 

7 covered depository institution holding company, 

8 or covered affiliate or subsidiary (which is not 

9 a liability described in subparagraph (D) or 

10 (E)). 

11 ‘‘(D) Any obligation subordinated to gen12 eral creditors which is not an obligation de13 scribed in subparagraph (E). 

14 ‘‘(E) Any obligation to shareholders, mem15 bers, general partners, limited partners, or 

16 other persons with interests in the equity of the 

17 covered depository institution holding company, 

18 or covered affiliate or subsidiary, arising as a 

19 result of their status as shareholders, members, 

20 general partners, limited partners, or other per21 sons with interests in the equity of the covered 

22 depository institution holding company, or cov23 ered affiliate or subsidiary. 

24 ‘‘(2) CREDITORS SIMILARLY SITUATED.—All 

25 claimants of a covered depository institution holding 


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1 company, or covered affiliate or subsidiary, that are 

2 similarly situated under paragraph (1) shall be 

3 treated in a similar manner, except that the receiver 

4 may take any action (including making payments) 

5 that does not comply with this subsection, if— 

6 ‘‘(A) the Corporation determines that such 

7 action is necessary to maximize the value of the 

8 assets of the covered depository institution 

9 holding company, or covered affiliate or sub10 sidiary, to maximize the present value return 

11 from the sale or other disposition of the assets 

12 of the covered depository institution holding 

13 company, or to minimize the amount of any loss 

14 realized upon the sale or other disposition of 

15 the assets of the covered depository holding 

16 company, or covered affiliate or subsidiary; and 

17 ‘‘(B) all claimants that are similarly situ18 ated under paragraph (1) receive not less than 

19 the amount provided in section 11(i)(2). 

20 ‘‘(f) RULE OF CONSTRUCTION.—Nothing in the Res21 olution Reform Act is intended to supersede the adminis22 tration of claims under applicable State laws governing in23 surance guaranty funds or the Securities Investor Protec24 tion Act of 1970. 


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1 ‘‘(g) RULEMAKING.—The Federal Deposit Insurance 

2 Corporation shall conduct a rulemaking to be completed 

3 within 180 days of enactment that will lay out specific 

4 guidelines and priority of all secured and unsecured claims 

5 as well as where the resources to satisfy those that will 

6 be satisfied will be derived.’’. 

7 SEC. 5. OTHER SPECIFIC MODIFICATIONS TO FEDERAL DE8 POSIT INSURANCE CORPORATION AUTHOR9 ITY. 

10 (a) RECORDKEEPING.—Section 11(e)(8)(H) of the 

11 Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(H)) 

12 is amended to read as follows: 

13 ‘‘(H) RECORDKEEPING.—The Corporation, 

14 after consultation with the appropriate Federal 

15 banking agencies, may prescribe regulations re16 quiring that any insured depository institution 

17 or depository institution holding company main18 tain such records with respect to qualified fi19 nancial contracts (including market valuations) 

20 as the Corporation determines to be necessary 

21 or appropriate to enable it to exercise its rights 

22 and fulfill its obligations under this Act.’’. 

23 (b) GOLDEN PARACHUTE PAYMENTS.—Section 

24 18(k)(4)(A)(ii)(III) of the Federal Deposit Insurance Act 

25 (12 U.S.C. 1828(k)(4)(A)(ii)(III)) is amended— 


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1 (1) by striking ‘‘institution’s’’; 

2 (2) by inserting ‘‘or covered company’’ after 

3 ‘‘insured depository institution’’; and 

4 (3) by inserting before the semicolon: ‘‘, except 

5 that the Corporation may define and make a deter6 mination of troubled condition for any covered com7 pany that does not have an appropriate Federal 

8 banking agency’’. 

9 SEC. 6. CROSS-BORDER CLAIMS. 

10 (a) PURPOSE AND SCOPE.— 

11 (1) PURPOSE.—The purpose of this section is 

12 to provide effective mechanisms for dealing with 

13 cases of cross-border insolvency, with the objectives 

14 of— 

15 (A) facilitating cooperation between the 

16 Corporation, acting in its capacity as receiver of 

17 a covered depository institution holding com18 pany or covered affiliate or subsidiary of an in19 sured depository institution and the courts and 

20 other authorities of foreign countries involved in 

21 cross-border insolvency cases; and 

22 (B) facilitating the orderly resolution of in23 sured depository institutions, covered depository 

24 institution holding companies, or covered affili25 ates or subsidiaries, in receivership. 


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1 (2) SCOPE.—This section applies in any case in 

2 which— 

3 (A) the Corporation seeks assistance from 

4 a foreign court, foreign representative, or for5 eign regulatory or supervisory authority in con6 nection with the resolution of a depository insti7 tution holding company, or covered affiliate or 

8 subsidiary thereof; 

9 (B) the assistance of the Corporation is 

10 sought by a foreign court, foreign representa11 tive, or foreign regulatory or supervisory au12 thority in connection with a foreign proceeding 

13 or with a resolution under this Act; or 

14 (C) a foreign proceeding and a case under 

15 this Act with respect to the same covered de16 pository institution holding company, or covered 

17 affiliate or subsidiary, are pending concurrently. 

18 (b) COORDINATION AND COOPERATION.—In regard 

19 to matters of insolvency and insolvency proceedings, the 

20 Corporation may— 

21 (1) cooperate and coordinate with foreign 

22 courts, foreign representatives, and foreign regu23 latory or supervisory authorities, either directly or 

24 through a designated representative, as the Corpora25 tion deems appropriate; and 


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1 (2) communicate directly with, or to request in2 formation or assistance directly from, foreign courts, 

3 foreign representatives, and foreign regulatory or su4 pervisory authorities. 

5 (c) CLAIMS BY FOREIGN REPRESENTATIVES.—The 

6 Corporation, in its capacity as receiver of a covered deposi7 tory institution holding company, or covered affiliate or 

8 subsidiary, may allow a foreign administrator or rep9 resentative to file claims. 

10 (d) COORDINATION OF PAYMENTS.— 

11 (1) LIMITATION.—Notwithstanding any other 

12 provision of Federal law, a creditor who has received 

13 payment with respect to a claim in a foreign insol14 vency proceeding may not receive a payment for the 

15 same claim brought in a United States insolvency 

16 proceeding under this Act against the same deposi17 tory institution, depository institution holding com18 pany, or covered affiliate or subsidiary. 

19 (2) SUBROGATION.—A claimant in an insol20 vency proceeding under this Act that has received 

21 payment on its claim shall agree to the subrogation 

22 of the Corporation, to the extent of such payment, 

23 to any claim or right of claim, arising from the same 

24 loss. 


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1 (e) PUBLIC POLICY EXEMPTION.—Nothing in this 

2 section prevents the Corporation from refusing to take an 

3 action governed by this section if the action would be con4 trary to the public policy of the United States or if it 

5 would increase losses to the Deposit Insurance Fund. 

6 SEC. 7. MISCELLANEOUS PROVISIONS. 

7 (a) BANKRUPTCY CODE AMENDMENTS.—Section 

8 109(b)(2) of title 11, United States Code, is amended by 

9 inserting before ‘‘homestead association’’ the following: 

10 ‘‘covered depository institution holding company and cov11 ered affiliate or subsidiary, as those terms are defined in 

12 section 51(b) of the Federal Deposit Insurance Act (except 

13 if the Federal Deposit Insurance Corporation exercises its 

14 authority under section 52(c) of that Act),’’. 

15 (b) AUTHORITY TO APPOINT RECEIVER.— 

16 (1) FEDERAL RESERVE ACT.—Section 11(o) of 

17 the Federal Reserve Act (12 U.S.C. 248(o)) is 

18 amended— 

19 (A) by striking ‘‘The Board’’ and inserting 

20 the following: 

21 ‘‘(1) STATE MEMBER BANKS.—The Board’’; 

22 and 

23 (B) by adding at the end the following: 

24 ‘‘(2) COVERED DEPOSITORY INSTITUTION

25 HOLDING COMPANIES.—The Board may appoint the 


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25 

•S 1540 IS

1 Federal Deposit Insurance Corporation as receiver 

2 for a covered depository institution holding company 

3 (as those terms are defined in section 51(b) of the 

4 Federal Deposit Insurance Act) under section 52 of 

5 the Federal Deposit Insurance Act.’’. 

6 (2) HOME OWNERS’ LOAN ACT.—Section 10 of 

7 the Home Owners’ Loan Act (12 U.S.C. 1467a) is 

8 amended— 

9 (A) by redesignating subsection (t) as sub10 section (u); and 

11 (B) by inserting after subsection (s) the 

12 following: 

13 ‘‘(t) APPOINTMENT OF FDIC AS RECEIVER.—The 

14 Director may appoint the Federal Deposit Insurance Cor15 poration as receiver for a covered depository institution 

16 holding company (as those terms are defined in section 

17 51(b) of the Federal Deposit Insurance Act) under section 

18 52 of the Federal Deposit Insurance Act.’’. 

Æ 


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