Source: https://www.law.cornell.edu/uscode/text/12/4617
Timestamp: 2016-09-30 08:00:19
Document Index: 570288237

Matched Legal Cases: ['§ 4617', '§\u202f1367', '§\u202f1145', '§\u202f906', '§\u202f1', '§\u202f1', '§\u202f1716', '§\u202f1451']

12 U.S. Code § 4617 - Authority over critically undercapitalized regulated entities | US Law | LII / Legal Information Institute
(3) Grounds for discretionary appointment of conservator or receiverThe grounds for appointing conservator or receiver for any regulated entity under paragraph (2) are as follows:
(B) Substantial dissipationSubstantial dissipation of assets or earnings due to—
(H) Violations of lawAny violation of any law or regulation, or any unsafe or unsound practice or condition that is likely to—
(J) UndercapitalizationThe regulated entity is undercapitalized or significantly undercapitalized (as defined in section 4614(a)(3) of this title), and—
section 4615(a)(1) of this title with respect to a regulated entity; or
section 4616(a)(1) of this title with respect to a significantly undercapitalized regulated entity;
The Attorney General notifies the Director in writing that the regulated entity has been found guilty of a criminal offense under section 1956 or 1957 of title 18or section 5322 or 5324 of title 31.
(A) In generalThe Director shall appoint the Agency as receiver for a regulated entity if the Director determines, in writing, that—
(B) Periodic determination required for critically undercapitalized regulated entityIf a regulated entity is critically undercapitalized, the Director shall make a determination, in writing, as to whether the regulated entity meets the criteria specified in clause (i) or (ii) of subparagraph (A)—
(A) Successor to regulated entityThe Agency shall, as conservator or receiver, and by operation of law, immediately succeed to—
(B) Operate the regulated entityThe Agency may, as conservator or receiver—
(D) Powers as conservatorThe Agency may, as conservator, take such action as may be—
(J) Incidental powersThe Agency may, as conservator or receiver—
(B) Notice requirementsThe receiver, in any case involving the liquidation or winding up of the affairs of a closed regulated entity, shall—
(C) Mailing requiredThe receiver shall mail a notice similar to the notice published under subparagraph (B)(i) at the time of such publication to any creditor shown on the books of the regulated entity—
(ii) Payments to less than fully secured creditorsIn the case of a claim of a creditor against a regulated entity which is secured by any property or other asset of such regulated entity, the receiver—
(A) In generalThe claimant may file suit on a claim (or continue an action commenced before the appointment of the receiver) in the district or territorial court of the United States for the district within which the principal place of business of the regulated entity is located or the United States District Court for the District of Columbia (and such court shall have jurisdiction to hear such claim), before the end of the 60-day period beginning on the earlier of—
(A) Establishment requiredThe Agency shall establish a procedure for expedited relief outside of the routine claims process established under paragraph (5) for claimants who—
(B) Determination periodBefore the end of the 90-day period beginning on the date on which any claim is filed in accordance with the procedures established under subparagraph (A), the Director shall—
(C) Period for filing or renewing suitAny claimant who files a request for expedited relief shall be permitted to file a suit, or to continue a suit filed before the date of appointment of the receiver, seeking a determination of the rights of the claimant with respect to such security interest after the earlier of—
(A) In generalThe receiver may, in the discretion of the receiver, and to the extent that funds are available from the assets of the regulated entity, pay creditor claims, in such manner and amounts as are authorized under this section, which are—
(A) In generalAfter the appointment of a conservator or receiver for a regulated entity, the conservator or receiver may, in any judicial action or proceeding to which such regulated entity is or becomes a party, request a stay for a period not to exceed—
(B) Rights and remedies of conservator or receiverIn the event of any appealable judgment, the Agency as conservator or receiver—
(E) Disposition of assetsIn exercising any right, power, privilege, or authority as conservator or receiver in connection with any sale or disposition of assets of a regulated entity for which the Agency has been appointed conservator or receiver, the Agency shall conduct its operations in a manner which—
(A) In generalNotwithstanding any provision of any contract, the applicable statute of limitations with regard to any action brought by the Agency as conservator or receiver shall be—
(B) Determination of the date on which a claim accruesFor purposes of subparagraph (A), the date on which the statute of limitations begins to run on any claim described in such subparagraph shall be the later of—
(B) Right of recoveryTo the extent a transfer is avoided under subparagraph (A), the conservator or receiver may recover, for the benefit of the regulated entity, the property transferred, or, if a court so orders, the value of such property (at the time of such transfer) from—
(C) Rights of transferee or obligeeThe conservator or receiver may not recover under subparagraph (B) from—
The rights of the conservator or receiver appointed under this section shall be subject to the limitations on the powers of a receiver under sections 4402 through 4407 of this title.[1]
(1) In generalUnsecured claims against a regulated entity, or the receiver therefor, that are proven to the satisfaction of the receiver shall have priority in the following order:
Any other general or senior liability of the regulated entity (which is not a liability described under subparagraph (C) or (D).[2]
(2) Creditors similarly situatedAll creditors that are similarly situated under paragraph (1) shall be treated in a similar manner, except that the receiver may take any action (including making payments) that does not comply with this subsection, if—
(3) DefinitionAs used in this subsection, the term “administrative expenses of the receiver” includes—
(1) Authority to repudiate contractsIn addition to any other rights a conservator or receiver may have, the conservator or receiver for any regulated entity may disaffirm or repudiate any contract or lease—
(A) In generalExcept as otherwise provided under subparagraph (C) and paragraphs (4), (5), and (6), the liability of the conservator or receiver for the disaffirmance or repudiation of any contract pursuant to paragraph (1) shall be—
(B) No liability for other damagesFor purposes of subparagraph (A), the term “actual direct compensatory damages” shall not include—
(B) Payments of rentNotwithstanding subparagraph (A), the lessor under a lease to which that subparagraph applies shall—
(A) In generalIf the conservator or receiver repudiates an unexpired written lease of real property of the regulated entity under which the regulated entity is the lessor and the lessee is not, as of the date of such repudiation, in default, the lessee under such lease may either—
(B) Provisions applicable to lessee remaining in possessionIf any lessee under a lease described under subparagraph (A) remains in possession of a leasehold interest under clause (ii) of subparagraph (A)—
(A) In generalIf the conservator or receiver repudiates any contract for the sale of real property and the purchaser of such real property under such contract is in possession, and is not, as of the date of such repudiation, in default, such purchaser may either—
(B) Provisions applicable to purchaser remaining in possessionIf any purchaser of real property under any contract described under subparagraph (A) remains in possession of such property under clause (ii) of subparagraph (A)—
(A) Services performed before appointmentIn the case of any contract for services between any person and any regulated entity for which the Agency has been appointed conservator or receiver, any claim of such person for services performed before the appointment of the conservator or receiver shall be—
(B) Services performed after appointment and prior to repudiationIf, in the case of any contract for services described under subparagraph (A), the conservator or receiver accepts performance by the other person before the conservator or receiver makes any determination to exercise the right of repudiation of such contract under this section—
(A) Rights of parties to contractsSubject to paragraphs (9) and (10), and notwithstanding any other provision of this chapter (other than subsection (b)(9)(B) of this section), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—
(D) Certain contracts and agreements definedIn this subsection the following definitions shall apply:
(v) Repurchase agreementThe term “repurchase agreement” (including a reverse repurchase agreement)—
(E) Certain protections in event of appointment of conservatorNotwithstanding any other provision of this section, any other Federal law, or the law of any State (other than paragraph (10) of this subsection and subsection (b)(9)(B)), no person shall be stayed or prohibited from exercising—
(9) Transfer of qualified financial contractsIn making any transfer of assets or liabilities of a regulated entity in default which includes any qualified financial contract, the conservator or receiver for such regulated entity shall either—
(A) In generalThe conservator or receiver shall notify any person that is a party to a contract or transfer by 5:00 p.m. (Eastern Standard Time) on the business day following the date of the appointment of the receiver in the case of a receivership, or the business day following such transfer in the case of a conservatorship, if—
(i) ReceivershipA person who is a party to a qualified financial contract with a regulated entity may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(A) of this subsection or under section 4403 or 4404 of this title, solely by reason of or incidental to the appointment of a receiver for the regulated entity (or the insolvency or financial condition of the regulated entity for which the receiver has been appointed)—
(11) Disaffirmance or repudiation of qualified financial contractsIn exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which a regulated entity is a party, the conservator or receiver for such institution shall either—
(i) In generalExcept as otherwise provided under this section, no person may exercise any right or power to terminate, accelerate, or declare a default under any contract to which a regulated entity is a party, or to obtain possession of or exercise control over any property of the regulated entity, or affect any contractual rights of the regulated entity, without the consent of the conservator or receiver, as appropriate, for a period of—
(ii) ExceptionsThis subparagraph shall not—
(15) Exception for Federal Reserve and Federal Home Loan BanksNo provision of this subsection shall apply with respect to—
(1) In generalA director or officer of a regulated entity may be held personally liable for monetary damages in any civil action described in paragraph (2) brought by, on behalf of, or at the request or direction of the Agency, and prosecuted wholly or partially for the benefit of the Agency—
(A) PurposeThe Agency, as receiver appointed pursuant to subsection (a)—
(B) AuthoritiesUpon the creation of a limited-life regulated entity under subparagraph (A), the limited-life regulated entity may—
(i) Fannie MaeIf the Agency is appointed as receiver for the Federal National Mortgage Association, the limited-life regulated entity established under this subsection with respect to such enterprise shall, by operation of law and immediately upon its organization—
(ii) Freddie MacIf the Agency is appointed as receiver for the Federal Home Loan Mortgage Corporation, the limited-life regulated entity established under this subsection with respect to such enterprise shall, by operation of law and immediately upon its organization—
succeed to the charter of the Federal Home Loan Mortgage Corporation, as set forth in the Federal Home Loan Mortgage Corporation Charter Act 1 [12 U.S.C. 1451 et seq.]; and
(B) Interests in and assets and obligations of regulated entity in defaultNotwithstanding subparagraph (A) or any other provision of law—
(i) In generalUpon the sale by the Agency of 80 percent or more of the capital stock of a limited-life regulated entity, as defined in clause (iv), to 1 or more persons (other than the Agency)—
(iv) Equitable treatment of similarly situated creditorsThe Agency shall treat all creditors of a regulated entity in default or in danger of default that are similarly situated under subsection (c)(1) in a similar manner in exercising the authority of the Agency under this subsection to transfer any assets or liabilities of the regulated entity to the limited-life regulated entity established with respect to such regulated entity, except that the Agency may take actions (including making payments) that do not comply with this clause, if—
(A) In generalEach limited-life regulated entity created under this subsection shall have all corporate powers of, and be subject to the same provisions of law as, the regulated entity in default or in danger of default to which it relates, except that—
(B) Employee statusRepresentatives for purposes of paragraph (1)(B), interim directors, directors, officers, employees, or agents of a limited-life regulated entity are not, solely by virtue of service in any such capacity, officers or employees of the United States. Any employee of the Agency or of any Federal instrumentality who serves at the request of the Agency as a representative for purposes of paragraph (1)(B), interim director, director, officer, employee, or agent of a limited-life regulated entity shall not—
(B) Inability to obtain creditIf a limited-life regulated entity is unable to obtain unsecured credit or issue unsecured debt, the Director may authorize the obtaining of credit or the issuance of debt by the limited-life regulated entity—
(i) [3] In generalThe Director, after notice and a hearing, may authorize the obtaining of credit or the issuance of debt by a limited-life regulated entity that is secured by a senior or equal lien on property of the limited-life regulated entity that is subject to a lien (other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by an enterprise) only if—
(Pub. L. 102–550, title XIII, § 1367, Oct. 28, 1992, 106 Stat. 3980; Pub. L. 110–289, div. A, title I, § 1145(a), July 30, 2008, 122 Stat. 2734.)
[1]  See References in Text note below.[2]  So in original. A second closing parenthesis probably should precede the period.[3]  So in original. No cl. (ii) has been enacted.
Sections 4402 through 4407 of this title, referred to in subsec. (b)(19)(A), was in the original “sections 402 through 407 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4402 through 4407)”, and was translated as reading “sections 402 through 407A of the Federal Deposit Insurance Corporation Improvement Act of 1991”, meaning sections 402 to 407A of Pub. L. 102–242, which are classified to sections 4402 to 4407 of this title, to reflect the probable intent of Congress and the renumbering of section 407 of the Act as section 407A by Pub. L. 109–8, title IX, § 906(d)(1), Apr. 20, 2005, 119 Stat. 169.
The Legal Certainty for Bank Products Act of 2000, referred to in subsec. (d)(14), is title IV of H.R. 5660, as enacted by Pub. L. 106–554, § 1(a)(5), Dec. 21, 2000, 114 Stat. 2763, 2763A–457, which is classified to sections 27 to 27f of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title of 2000 Amendment note set out under section 1 of Title 7 and Tables.
The Commodity Exchange Act, referred to in subsec. (d)(14), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.
The Federal National Mortgage Association Charter Act, referred to in subsec. (i)(2)(A)(i)(I), is title III of act June 27, 1934, ch. 847, 48 Stat. 1252, which is classified generally to subchapter III (§ 1716 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1716 of this title and Tables.
The Federal Home Loan Mortgage Corporation Charter Act, referred to in subsec. (i)(2)(A)(ii)(I), probably means the Federal Home Loan Mortgage Corporation Act, title III of Pub. L. 91–351, July 24, 1970, 84 Stat. 451, which is classified generally to chapter 11A (§ 1451 et seq.) of this title. For complete classification of this Act to the Code, see Short Title and Statement of Purpose note set out under section 1451 of this title and Tables.
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