Opinion ID: 195925
Heading Depth: 2
Heading Rank: 2

Heading: The Borrowers' Claims

Text: 18 The Borrowers seek compensatory damages for FDIC's alleged post-bar-date repudiation of their pre-receivership Modification Agreements with the Bank. See id. Sec. 1821(e)(3)(i). The Borrowers assert that all obligations they incurred to third parties after FDIC was appointed receiver are entitled to priority status against Bank assets, on the theory that the Modification Agreements remained executory at the time FDIC was appointed receiver. Consequently, the Borrowers argue, the executory Modification Agreements remained open to affirmance or repudiation by FDIC within a reasonable period following its appointment. See id. Sec. 1821(e)(1)-(2). Since FDIC has yet to affirm the Modification Agreements, the Borrowers conclude that the agreements have been repudiated. 19 Their claim is premature, for failure to exhaust administrative remedies. See Heno v. FDIC, 20 F.3d at 1212-13 (publishing FDIC internal manual procedures for filing claims arising from FDIC's post-bar-date repudiation of executory prereceivership contracts with failed institution). In Heno, we deferred to FDIC's construction of its enabling statute as according the agency first opportunity to evaluate alleged post-bar-date claims, including those arising after the ninety-day period following notice of FDIC's appointment as receiver, id. at 1209. As the Borrowers have yet to exhaust their administrative remedies pursuant to the internal agency procedures published in Heno, we affirm the district court judgment, without prejudice to Borrowers' subsequent submission of an administrative claim to FDIC. 20 The district court judgment is affirmed. The parties are to bear their own costs.