Opinion ID: 2197524
Heading Depth: 2
Heading Rank: 1

Heading: Overview of FIRREA's Administrative Claims Procedure

Text: Congress enacted FIRREA to establish organizations and procedures to obtain and administer the necessary funding to resolve failed thrift cases and to dispose of the assets of these institutions. H.R.REP. No. 101-54(I), 101st Cong., 1st Sess., 307 (1989), reprinted in 1989 U.S.C.C.A.N. 86, 103. FIRREA sets forth an administrative procedure for resolving claims against an insolvent depository institution under receivership with either the RTC or the FDIC. [7] The receiver is required to notify a depository institution's creditors that they must present their claims to the receiver within ninety days after receipt of notice in any case involving the liquidation or winding up of a closed depository institution's affairs. 12 U.S.C.A. § 1821(d)(3)(B) (1989). The receiver may request a stay of ninety days in any judicial action then pending. 12 U.S.C.A. § 1821(d)(12)(A) (1989). After the claim is submitted, the receiver has 180 days to determine whether to allow the claim and to notify the claimant of its determination. 12 U.S.C.A. § 1821(d)(5)(A) (1989). If the claim is disallowed, the receiver's determination becomes final within sixty days after the denial of the claim, unless the claimant (1) seeks administrative review of the claim; (2) files suit in a United States District Court; or (3) continue[s] an action commenced before the appointment of the receiver. 12 U.S.C.A. § 1821(d)(6) (1989). If the claimant files suit in the district court, the court determines the claim de novo. 12 U.S.C.A. § 1821(d)(5)(E) (1989). Neither receiver contends that either appellant has failed to exhaust his or her administrative remedies under FIRREA. [8] See Marquis v. Federal Deposit Ins. Corp., 965 F.2d 1148, 1154 (1st Cir.1992) (FIRREA requires all claimants to comply with its administrative procedures before litigating his or her claim in court).