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§ 1787. —  Payment of insurance.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1787]

 
                       TITLE 12--BANKS AND BANKING
 
                    CHAPTER 14--FEDERAL CREDIT UNIONS
 
                     SUBCHAPTER II--SHARE INSURANCE
 
Sec. 1787. Payment of insurance


(a) Liquidation by Board; bond; appointment of agent; fees to be fixed 
        by Board

    (1)(A) Upon its finding that a Federal credit union insured under 
this subchapter is bankrupt or insolvent, the Board shall close such 
credit union for liquidation and appoint itself liquidating agent 
therefor.
    (B) Not later than 10 days after the date on which the Board closes 
a credit union for liquidation pursuant to paragraph (1), or accepts 
appointment as liquidating agent pursuant to subsection (b) of this 
section, such insured credit union may apply to the United States 
district court for the judicial district in which the principal office 
of such insured credit union is located or the United States District 
Court for the District of Columbia, for an order requiring the Board to 
show cause why it should not be prohibited from continuing such 
liquidation. Except as otherwise provided in this subparagraph, no court 
may take any action for or toward the removal of any liquidating agent 
or, except at the instance of the Board, restrain or affect the exercise 
of powers or functions of a liquidating agent.
    (2) Notwithstanding any other provision of law, the Board as 
liquidating agent of a closed Federal credit union insured under this 
subchapter shall not be required to furnish bond and shall have the 
right to appoint an agent or agents to assist it in its duties as such 
liquidating agent. All fees, compensation, and expenses of liquidation 
and administration thereof shall be fixed by the Board and may be paid 
by them out of funds coming into its possession as such liquidating 
agent.
    (3) Liquidation to facilitate prompt corrective action.--The Board 
may close any credit union for liquidation, and appoint itself or 
another (including, in the case of a State-chartered insured credit 
union, the State official having jurisdiction over the credit union) as 
liquidating agent of that credit union, if--
        (A) the Board determines that--
            (i) the credit union is significantly undercapitalized, as 
        defined in section 1790d of this title, and has no reasonable 
        prospect of becoming adequately capitalized, as defined in 
        section 1790d of this title; or
            (ii) the credit union is critically undercapitalized, as 
        defined in section 1790d of this title; and

        (B) in the case of a State-chartered insured credit union, the 
    Board has complied with section 1790d(l) of this title.

(b) Powers and duties of Board as conservator or liquidating agent

                  (1) Rulemaking authority of Board

        The Board may prescribe such regulations as the Board determines 
    to be appropriate regarding the conduct of the Board as conservator 
    or liquidating agent.

                         (2) General powers

        (A) Successor to credit union

            The Board shall, as conservator or liquidating agent, and by 
        operation of law, succeed to--
                (i) all rights, titles, powers, and privileges of the 
            credit union, and of any member, accountholder, officer, or 
            director of such credit union with respect to the credit 
            union and the assets of the credit union; and
                (ii) title to the books, records, and assets of any 
            previous conservator or other legal custodian of such credit 
            union.

        (B) Operate the credit union

            The Board may, as conservator or liquidating agent--
                (i) take over the assets of and operate the credit union 
            with all the powers of the members or shareholders, the 
            directors, and the officers of the credit union and shall be 
            authorized to conduct all business of the credit union;
                (ii) collect all obligations and money due the credit 
            union;
                (iii) perform all functions of the credit union in the 
            name of the credit union which is consistent with the 
            appointment as conservator or liquidating agent; and
                (iv) preserve and conserve the assets and property of 
            such credit union.

        (C) Functions of credit union's officers, directors, and 
                shareholders

            The Board may, by regulation or order, provide for the 
        exercise of any function by any member or stockholder, director, 
        or officer of any credit union for which the Board has been 
        appointed conservator or liquidating agent.

        (D) Powers as conservator

            The Board may, as conservator, take such action as may be--
                (i) necessary to put the credit union in a sound and 
            solvent condition; and
                (ii) appropriate to carry on the business of the credit 
            union and preserve and conserve the assets and property of 
            the credit union.

        (E) Additional powers as liquidating agent

            The Board may, as liquidating agent, place the credit union 
        in liquidation and proceed to realize upon the assets of the 
        credit union, having due regard to the conditions of credit in 
        the locality.

        (F) Payment of valid obligations

            The Board, as conservator or liquidating agent, shall pay 
        all valid obligations of the credit union in accordance with the 
        prescriptions and limitations of this chapter.

        (G) Attachment of assets and injunctive relief

            Subject to subparagraph (H), any court of competent 
        jurisdiction may, at the request of the Board (in the Board's 
        capacity as conservator or liquidating agent for any insured 
        credit union or in the Board's corporate capacity in the 
        exercise of any authority under this section), issue an order in 
        accordance with Rule 65 of the Federal Rules of Civil Procedure, 
        including an order placing the assets of any person designated 
        by the Board under the control of the court and appointing a 
        trustee to hold such assets.

        (H) Standards

            (i) Showing

                Rule 65 of the Federal Rules of Civil Procedure shall 
            apply with respect to any proceeding under subparagraph (G) 
            without regard to the requirement of such rule that the 
            applicant show that the injury, loss, or damage is 
            irreparable and immediate.
            (ii) State proceeding

                If, in the case of any proceeding in a State court, the 
            court determines that rules of civil procedure available 
            under the laws of such State provide substantially similar 
            protections to such party's right to due process as Rule 65 
            (as modified with respect to such proceeding by clause (i)), 
            the relief sought by the Board pursuant to subparagraph (G) 
            may be requested under the laws of such State.

        (I) Subpoena authority

            (i) In general

                The Board may, as conservator or liquidating agent and 
            for purposes of carrying out any power, authority, or duty 
            with respect to an insured credit union (including 
            determining any claim against the credit union and 
            determining and realizing upon any asset of any person in 
            the course of collecting money due the credit union), 
            exercise any power established under section 1786(p) of this 
            title, and the provisions of such section shall apply with 
            respect to the exercise of any such power under this 
            subparagraph in the same manner as such provisions apply 
            under such section.
            (ii) Authority of Board

                A subpoena or subpoena duces tecum may be issued under 
            clause (i) only by, or with the written approval of, the 
            Board or their designees.
            (iii) Rule of construction

                This subsection shall not be construed as limiting any 
            rights that the Board, in any capacity, might otherwise have 
            under section 1786(p) of this title.

        (J) Incidental powers

            The Board may, as conservator or liquidating agent--
                (i) exercise all powers and authorities specifically 
            granted to conservators or liquidating agents, respectively, 
            under this chapter and such incidental powers as shall be 
            necessary to carry out such powers; and
                (ii) take any action authorized by this chapter,

        which the Board determines is in the best interests of the 
        credit union, its account holders, or the Board.

       (3) Authority of liquidating agent to determine claims

        (A) In general

            The Board may, as liquidating agent, determine claims in 
        accordance with the requirements of this subsection and 
        regulations prescribed under paragraph (4).

        (B) Notice requirements

            The liquidating agent, in any case involving the liquidation 
        or winding up of the affairs of a closed credit union, shall--
                (i) promptly publish a notice to the credit union's 
            creditors to present their claims, together with proof, to 
            the liquidating agent by a date specified in the notice 
            which shall be not less than 90 days after the publication 
            of such notice; and
                (ii) republish such notice approximately 1 month and 2 
            months, respectively, after the publication under clause 
            (i).

        (C) Mailing required

            The liquidating agent 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 credit union's books--
                (i) at the creditor's last address appearing in such 
            books; or
                (ii) upon discovery of the name and address of a 
            claimant not appearing on the credit union's books within 30 
            days after the discovery of such name and address.

    (4) Rulemaking authority relating to determination of claims

        The Board may prescribe regulations regarding the allowance or 
    disallowance of claims by the liquidating agent and providing for 
    administrative determination of claims and review of such 
    determination.

             (5) Procedures for determination of claims

        (A) Determination period

            (i) In general

                Before the end of the 180-day period beginning on the 
            date any claim against a credit union is filed with the 
            Board as liquidating agent, the Board shall determine 
            whether to allow or disallow the claim and shall notify the 
            claimant of any determination with respect to such claim.
            (ii) Extension of time

                The period described in clause (i) may be extended by a 
            written agreement between the claimant and the Board.
            (iii) Mailing of notice sufficient

                The requirements of clause (i) shall be deemed to be 
            satisfied if the notice of any determination with respect to 
            any claim is mailed to the last address of the claimant 
            which appears--
                    (I) on the credit union's books;
                    (II) in the claim filed by the claimant; or
                    (III) in documents submitted in proof of the claim.
            (iv) Contents of notice of disallowance

                If any claim filed under clause (i) is disallowed, the 
            notice to the claimant shall contain--
                    (I) a statement of each reason for the disallowance; 
                and
                    (II) the procedures available for obtaining agency 
                review of the determination to disallow the claim or 
                judicial determination of the claim.

        (B) Allowance of proven claims

            The liquidating agent shall allow any claim received on or 
        before the date specified in the notice published under 
        paragraph (3)(B)(i) by the liquidating agent from any claimant 
        which is proved to the satisfaction of the liquidating agent.

        (C) Disallowance of claims filed after end of filing period

            (i) In general

                Except as provided in clause (ii), claims filed after 
            the date specified in the notice published under paragraph 
            (3)(B)(i) shall be disallowed and such disallowance shall be 
            final.
            (ii) Certain exceptions

                Clause (i) shall not apply with respect to any claim 
            filed by any claimant after the date specified in the notice 
            published under paragraph (3)(B)(i) and such claim may be 
            considered by the liquidating agent if--
                    (I) the claimant did not receive notice of the 
                appointment of the liquidating agent in time to file 
                such claim before such date; and
                    (II) such claim is filed in time to permit payment 
                of such claim.

        (D) Authority to disallow claims

            The liquidating agent may disallow any portion of any claim 
        by a creditor or claim of security, preference, or priority 
        which is not proved to the satisfaction of the liquidating 
        agent.

        (E) No judicial review of determination pursuant to subparagraph 
                (D)

            No court may review the Board's determination pursuant to 
        subparagraph (D) to disallow a claim.

        (F) Legal effect of filing

            (i) Statute of limitation tolled

                For purposes of any applicable statute of limitations, 
            the filing of a claim with the liquidating agent shall 
            constitute a commencement of an action.
            (ii) No prejudice to other actions

                Subject to paragraph (12), the filing of a claim with 
            the liquidating agent shall not prejudice any right of the 
            claimant to continue any action which was filed before the 
            appointment of the liquidating agent.

    (6) Provision for agency review or judicial determination of 
                                   claims

        (A) In general

            Before the end of the 60-day period beginning on the earlier 
        of--
                (i) the end of the period described in paragraph 
            (5)(A)(i) with respect to any claim against a credit union 
            for which the Board is liquidating agent; or
                (ii) the date of any notice of disallowance of such 
            claim pursuant to paragraph (5)(A)(i),

        the claimant may request administrative review of the claim in 
        accordance with subparagraph (A) or (B) of paragraph (7) or file 
        suit on such claim (or continue an action commenced before the 
        appointment of the liquidating agent) in the district or 
        territorial court of the United States for the district within 
        which the credit union's principal place of business is located 
        or the United States District Court for the District of Columbia 
        (and such court shall have jurisdiction to hear such claim).

        (B) Statute of limitations

            If any claimant fails to--
                (i) request administrative review of any claim in 
            accordance with subparagraph (A) or (B) of paragraph (7); or
                (ii) file suit on such claim (or continue an action 
            commenced before the appointment of the liquidating agent),

        before the end of the 60-day period described in subparagraph 
        (A), the claim shall be deemed to be disallowed (other than any 
        portion of such claim which was allowed by the liquidating 
        agent) as of the end of such period, such disallowance shall be 
        final, and the claimant shall have no further rights or remedies 
        with respect to such claim.

                        (7) Review of claims

        (A) Administrative hearing

            If any claimant requests review under this subparagraph in 
        lieu of filing or continuing any action under paragraph (6) and 
        the Board agrees to such request, the Board shall consider the 
        claim after opportunity for a hearing on the record. The final 
        determination of the Board with respect to such claim shall be 
        subject to judicial review under chapter 7 of title 5.

        (B) Other review procedures

            (i) In general

                The Board shall also establish such alternative dispute 
            resolution processes as may be appropriate for the 
            resolution of claims filed under paragraph (5)(A)(i).
            (ii) Criteria

                In establishing alternative dispute resolution 
            processes, the Board shall strive for procedures which are 
            expeditious, fair, independent, and low cost.
            (iii) Voluntary binding or nonbinding procedures

                The Board may establish both binding and nonbinding 
            processes, which may be conducted by any government or 
            private party, but all parties, including the claimant and 
            the Board, must agree to the use of the process in a 
            particular case.
            (iv) Consideration of incentives

                The Board shall seek to develop incentives for claimants 
            to participate in the alternative dispute resolution 
            process.

                (8) Expedited determination of claims

        (A) Establishment required

            The Board shall establish a procedure for expedited relief 
        outside of the routine claims process established under 
        paragraph (5) for claimants who--
                (i) allege the existence of legally valid and 
            enforceable or perfected security interests in assets of any 
            credit union for which the Board has been appointed 
            liquidating agent; and
                (ii) allege that irreparable injury will occur if the 
            routine claims procedure is followed.

        (B) Determination period

            Before the end of the 90-day period beginning on the date 
        any claim is filed in accordance with the procedures established 
        pursuant to subparagraph (A), the Board shall--
                (i) determine--
                    (I) whether to allow or disallow such claim; or
                    (II) whether such claim should be determined 
                pursuant to the procedures established pursuant to 
                paragraph (5); or

                (ii) notify the claimant of the determination, and if 
            the claim is disallowed, a statement of each reason for the 
            disallowance and the procedure for obtaining agency review 
            or judicial determination.

        (C) Period for filing or renewing suit

            Any claimant who files a request for expedited relief shall 
        be permitted to file a suit, or to continue a suit filed before 
        the appointment of the liquidating agent, seeking a 
        determination of the claimant's rights with respect to such 
        security interest after the earlier of--
                (i) the end of the 90-day period beginning on the date 
            of the filing of a request for expedited relief; or
                (ii) the date the Board denies the claim.

        (D) Statute of limitations

            If an action described in subparagraph (C) is not filed, or 
        the motion to renew a previously filed suit is not made, before 
        the end of the 30-day period beginning on the date on which such 
        action or motion may be filed in accordance with subparagraph 
        (B), the claim shall be deemed to be disallowed as of the end of 
        such period (other than any portion of such claim which was 
        allowed by the liquidating agent), such disallowance shall be 
        final, and the claimant shall have no further rights or remedies 
        with respect to such claim.

        (E) Legal effect of filing

            (i) Statute of limitation tolled

                For purposes of any applicable statute of limitations, 
            the filing of a claim with the liquidating agent shall 
            constitute a commencement of an action.
            (ii) No prejudice to other actions

                Subject to paragraph (12), the filing of a claim with 
            the liquidating agent shall not prejudice any right of the 
            claimant to continue any action which was filed before the 
            appointment of the liquidating agent.

                   (9) Agreement as basis of claim

        (A) Requirements

            Except as provided in subparagraph (B), any agreement which 
        does not meet the requirements set forth in section 1788(a)(3) 
        of this title shall not form the basis of, or substantially 
        comprise, a claim against the liquidating agent or the Board.

        (B) Exception to contemporaneous execution requirement

            Notwithstanding section 1788(a)(3) of this title, any 
        agreement between a Federal home loan bank or Federal Reserve 
        bank and any insured credit union which was executed before the 
        extension of credit by such bank to such credit union shall be 
        treated as having been executed contemporaneously with such 
        extension of credit for purposes of subparagraph (A).

                       (10) Payment of claims

        (A) In general

            The liquidating agent may, in the liquidating agent's 
        discretion and to the extent funds are available, pay creditor 
        claims which are allowed by the liquidating agent, approved by 
        the Board pursuant to a final determination pursuant to 
        paragraph (7) or (8), or determined by the final judgment of any 
        court of competent jurisdiction in such manner and amounts as 
        are authorized under this chapter.

        (B) Payment of dividends on claims

            The liquidating agent may, in the liquidating agent's sole 
        discretion, pay dividends on proved claims at any time, and no 
        liability shall attach to the Board (in such Board's corporate 
        capacity or as liquidating agent), by reason of any such 
        payment, for failure to pay dividends to a claimant whose claim 
        is not proved at the time of any such payment.

                     (11) Distribution of assets

        (A) Subrogated claims; claims of uninsured accountholders and 
                other creditors

            The liquidating agent shall--
                (i) retain for the account of the Board such portion of 
            the amounts realized from any liquidation as the Board may 
            be entitled to receive in connection with the subrogation of 
            the claims of accountholders; and
                (ii) pay to accountholders and other creditors the net 
            amounts available for distribution to them.

        (B) Distribution to shareholders of amounts remaining after 
                payment of all other claims and expenses

            In any case in which funds remain after all accountholders, 
        creditors, other claimants, and administrative expenses are 
        paid, the liquidating agent shall distribute such funds to the 
        credit union's shareholders or members together with the 
        accounting report required under paragraph (14)(C).

                  (12) Suspension of legal actions

        (A) In general

            After the appointment of a conservator or liquidating agent 
        for an insured credit union, the conservator or liquidating 
        agent may request a stay for a period not to exceed--
                (i) 45 days, in the case of any conservator; and
                (ii) 90 days, in the case of any liquidating agent,

        in any judicial action or proceeding to which such credit union 
        is or becomes a party.

        (B) Grant of stay by all courts required

            Upon receipt of a request by any conservator or liquidating 
        agent pursuant to subparagraph (A) for a stay of any judicial 
        action or proceeding in any court with jurisdiction of such 
        action or proceeding, the court shall grant such stay as to all 
        parties.

                  (13) Additional rights and duties

        (A) Prior final adjudication

            The Board shall abide by any final unappealable judgment of 
        any court of competent jurisdiction which was rendered before 
        the appointment of the Board as conservator or liquidating 
        agent.

        (B) Rights and remedies of conservator or liquidating agent

            In the event of any appealable judgment, the Board as 
        conservator or liquidating agent shall--
                (i) have all the rights and remedies available to the 
            credit union (before the appointment of such conservator or 
            liquidating agent) and the Board in its corporate capacity, 
            including removal to Federal court and all appellate rights; 
            and
                (ii) not be required to post any bond in order to pursue 
            such remedies.

        (C) No attachment or execution

            No attachment or execution may issue by any court upon 
        assets in the possession of the liquidating agent.

        (D) Limitation on judicial review

            Except as otherwise provided in this subsection, no court 
        shall have jurisdiction over--
                (i) any claim or action for payment from, or any action 
            seeking a determination of rights with respect to, the 
            assets of any credit union for which the Board has been 
            appointed liquidating agent, including assets which the 
            Board may acquire from itself as such liquidating agent; or
                (ii) any claim relating to any act or omission of such 
            credit union or the Board as liquidating agent.

         (14) Statute of limitations for actions brought by 
                      conservator or liquidating agent

        (A) In general

            Notwithstanding any provision of any contract, the 
        applicable statute of limitations with regard to any action 
        brought by the Board as conservator or liquidating agent shall 
        be--
                (i) in the case of any contract claim, the longer of--
                    (I) the 6-year period beginning on the date the 
                claim accrues; or
                    (II) the period applicable under State law; and

                (ii) in the case of any tort claim, the longer of--
                    (I) the 3-year period beginning on the date the 
                claim accrues; or
                    (II) the period applicable under State law.

        (B) Determination of the date on which a claim accrues

            For purposes of subparagraph (A), the date on which the 
        statute of limitation begins to run on any claim described in 
        such subparagraph shall be the later of--
                (i) the date of the appointment of the Board as 
            conservator or liquidating agent; or
                (ii) the date on which the cause of action accrues.

           (15) Accounting and recordkeeping requirements

        (A) In general

            The Board as conservator or liquidating agent shall, 
        consistent with the accounting and reporting practices and 
        procedures established by the Board, maintain a full accounting 
        of each conservatorship and liquidation or other disposition of 
        credit unions in default.

        (B) Annual accounting or report

            With respect to each conservatorship or liquidation to which 
        the Board was appointed, the Board shall make an annual 
        accounting or report, as appropriate, available to the 
        Comptroller General of the United States or, in the case of a 
        State-chartered credit union, the authority which appointed the 
        Board as conservator or liquidating agent.

        (C) Availability of reports

            Any report prepared pursuant to subparagraph (B) shall be 
        made available by the Board upon request to any shareholder of 
        the credit union for which the Board was appointed conservator 
        or liquidating agent or any other member of the public.

        (D) Recordkeeping requirement

            After the end of the 6-year period beginning on the date the 
        Board is appointed as liquidating agent of an insured credit 
        union, the Board may destroy any records of such credit union 
        which the Board, in the Board's discretion, determines to be 
        unnecessary unless directed not to do so by a court of competent 
        jurisdiction or governmental agency, or prohibited by law.

                      (16) Fraudulent transfers

        (A) In general

            The Board, as conservator or liquidating agent for any 
        insured credit union, may avoid a transfer of any interest of an 
        institution-affiliated party, or any person who the Board 
        determines is a debtor of the institution, in property, or any 
        obligation incurred by such party or person, that was made 
        within 5 years of the date on which the Board becomes 
        conservator or liquidating agent if such party or person 
        voluntarily or involuntarily made such transfer or incurred such 
        liability with the intent to hinder, delay, or defraud the 
        insured credit union or the Board.

        (B) Right of recovery

            To the extent a transfer is avoided under subparagraph (A), 
        the Board may recover, for the benefit of the insured credit 
        union, the property transferred, or, if a court so orders, the 
        value of such property (at the time of such transfer) from--
                (i) the initial transferee of such transfer or the 
            institution-affiliated party or person for whose benefit 
            such transfer was made; or
                (ii) any immediate or mediate transferee of any such 
            initial transferee.

        (C) Rights of transferee or obligee

            The Board may not recover under subparagraph (B) from--
                (i) any transferee that takes for value, including 
            satisfaction or securing of a present or antecedent debt, in 
            good faith; or
                (ii) any immediate or mediate good faith transferee of 
            such transferee.

        (D) Rights under this paragraph

            The rights of the Board under this paragraph shall be 
        superior to any rights of a trustee or any other party (other 
        than any party which is a Federal agency) under title 11.

(c) Provisions relating to contracts entered into before appointment of 
        conservator or liquidating agent

                (1) Authority to repudiate contracts

        In addition to any other rights a conservator or liquidating 
    agent may have, the conservator or liquidating agent for any insured 
    credit union may disaffirm or repudiate any contract or lease--
            (A) to which such credit union is a party;
            (B) the performance of which the conservator or liquidating 
        agent, in the conservator's or liquidating agent's discretion, 
        determines to be burdensome; and
            (C) the disaffirmance or repudiation of which the 
        conservator or liquidating agent determines, in the 
        conservator's or liquidating agent's discretion, will promote 
        the orderly administration of the credit union's affairs.

                      (2) Timing of repudiation

        The conservator or liquidating agent appointed for any insured 
    credit union shall determine whether or not to exercise the rights 
    of repudiation under this subsection within a reasonable period 
    following such appointment.

               (3) Claims for damages for repudiation

        (A) In general

            Except as otherwise provided in subparagraph (C) and 
        paragraphs (4), (5), and (6), the liability of the conservator 
        or liquidating agent for the disaffirmance or repudiation of any 
        contract pursuant to paragraph (1) shall be--
                (i) limited to actual direct compensatory damages; and
                (ii) determined as of--
                    (I) the date of the appointment of the conservator 
                or liquidating agent; or
                    (II) in the case of any contract or agreement 
                referred to in paragraph (8), the date of the 
                disaffirmance or repudiation of such contract or 
                agreement.

        (B) No liability for other damages

            For purposes of subparagraph (A), the term ``actual direct 
        compensatory damages'' does not include--
                (i) punitive or exemplary damages;
                (ii) damages for lost profits or opportunity; or
                (iii) damages for pain and suffering.

        (C) Measure of damages for repudiation of financial contracts

            In the case of any qualified financial contract or agreement 
        to which paragraph (8) applies, compensatory damages shall be--
                (i) deemed to include normal and reasonable costs of 
            cover or other reasonable measures of damages utilized in 
            the industries for such contract and agreement claims; and
                (ii) paid in accordance with this subsection and 
            subsection (f) of this section except as otherwise 
            specifically provided in this section.

        (4) Leases under which the credit union is the lessee

        (A) In general

            If the conservator or liquidating agent disaffirms or 
        repudiates a lease under which the credit union was the lessee, 
        the conservator or liquidating agent shall not be liable for any 
        damages (other than damages determined pursuant to subparagraph 
        (B)) for the disaffirmance or repudiation of such lease.

        (B) Payments of rent

            Notwithstanding subparagraph (A), the lessor under a lease 
        to which such subparagraph applies shall--
                (i) be entitled to the contractual rent accruing before 
            the later of the date--
                    (I) the notice of disaffirmance or repudiation is 
                mailed; or
                    (II) the disaffirmance or repudiation becomes 
                effective,

          unless the lessor is in default or breach of the terms of the 
            lease;
                (ii) have no claim for damages under any acceleration 
            clause or other penalty provision in the lease; and
                (iii) have a claim for any unpaid rent, subject to all 
            appropriate offsets and defenses, due as of the date of the 
            appointment which shall be paid in accordance with this 
            subsection and subsection (b) of this section.

        (5) Leases under which the credit union is the lessor

        (A) In general

            If the conservator or liquidating agent repudiates an 
        unexpired written lease of real property of the credit union 
        under which the credit union is the lessor and the lessee is 
        not, as of the date of such repudiation, in default, the lessee 
        under such lease may either--
                (i) treat the lease as terminated by such repudiation; 
            or
                (ii) remain in possession of the leasehold interest for 
            the balance of the term of the lease unless the lessee 
            defaults under the terms of the lease after the date of such 
            repudiation.

        (B) Provisions applicable to lessee remaining in possession

            If any lessee under a lease described in subparagraph (A) 
        remains in possession of a leasehold interest pursuant to clause 
        (ii) of such subparagraph--
                (i) the lessee--
                    (I) shall continue to pay the contractual rent 
                pursuant to the terms of the lease after the date of the 
                repudiation of such lease;
                    (II) may offset against any rent payment which 
                accrues after the date of the repudiation of the lease, 
                any damages which accrue after such date due to the 
                nonperformance of any obligation of the credit union 
                under the lease after such date; and

                (ii) the conservator or liquidating agent shall not be 
            liable to the lessee for any damages arising after such date 
            as a result of the repudiation other than the amount of any 
            offset allowed under clause (i)(II).

             (6) Contracts for the sale of real property

        (A) In general

            If the conservator or liquidating agent repudiates any 
        contract (which meets the requirements of each paragraph of 
        section 1788(a)(3) of this title) 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--
                (i) treat the contract as terminated by such 
            repudiation; or
                (ii) remain in possession of such real property.

        (B) Provisions applicable to purchaser remaining in possession

            If any purchaser of real property under any contract 
        described in subparagraph (A) remains in possession of such 
        property pursuant to clause (ii) of such subparagraph--
                (i) the purchaser--
                    (I) shall continue to make all payments due under 
                the contract after the date of the repudiation of the 
                contract; and
                    (II) may offset against any such payments any 
                damages which accrue after such date due to the 
                nonperformance (after such date) of any obligation of 
                the credit union under the contract; and

                (ii) the conservator or liquidating agent shall--
                    (I) not be liable to the purchaser for any damages 
                arising after such date as a result of the repudiation 
                other than the amount of any offset allowed under clause 
                (i)(II);
                    (II) deliver title to the purchaser in accordance 
                with the provisions of the contract; and
                    (III) have no obligation under the contract other 
                than the performance required under subclause (II).

        (C) Assignment and sale allowed

            (i) In general

                No provision of this paragraph shall be construed as 
            limiting the right of the conservator or liquidating agent 
            to assign the contract described in subparagraph (A) and 
            sell the property subject to the contract and the provisions 
            of this paragraph.
            (ii) No liability after assignment and sale

                If an assignment and sale described in clause (i) is 
            consummated, the conservator or liquidating agent shall have 
            no further liability under the contract described in 
            subparagraph (A) or with respect to the real property which 
            was the subject of such contract.

           (7) Provisions applicable to service contracts

        (A) Services performed before appointment

            In the case of any contract for services between any person 
        and any insured credit union for which the Board has been 
        appointed conservator or liquidating agent, any claim of such 
        person for services performed before the appointment of the 
        conservator or the liquidating agent shall be--
                (i) a claim to be paid in accordance with subsection (b) 
            of this section; and
                (ii) deemed to have arisen as of the date the 
            conservator or liquidating agent was appointed.

        (B) Services performed after appointment and prior to 
                repudiation

            If, in the case of any contract for services described in 
        subparagraph (A), the conservator or liquidating agent accepts 
        performance by the other person before the conservator or 
        liquidating agent makes any determination to exercise the right 
        of repudiation of such contract under this section--
                (i) the other party shall be paid under the terms of the 
            contract for the services performed; and
                (ii) the amount of such payment shall be treated as an 
            administrative expense of the conservatorship or 
            liquidation.

        (C) Acceptance of performance no bar to subsequent repudiation

            The acceptance by any conservator or liquidating agent of 
        services referred to in subparagraph (B) in connection with a 
        contract described in such subparagraph shall not affect the 
        right of the conservator or liquidating agent to repudiate such 
        contract under this section at any time after such performance.

              (8) Certain qualified financial contracts

        (A) Rights of parties to contracts

            Subject to paragraph (12) of this subsection and 
        notwithstanding any other provision of this chapter (other than 
        subsection (b)(9) of this section and section 1788(a)(3) of this 
        title), any other Federal law, or the law of any State, no 
        person shall be stayed or prohibited from exercising--
                (i) any right to cause the termination or liquidation of 
            any qualified financial contract with an insured credit 
            union which arises upon the appointment of the Board as 
            liquidating agent for such credit union at any time after 
            such appointment;
                (ii) any right under any security arrangement relating 
            to any contract or agreement described in clause (i); or
                (iii) any right to offset or net out any termination 
            value, payment amount, or other transfer obligation arising 
            under or in connection with 1 or more contracts and 
            agreements described in clause (i), including any master 
            agreement for such contracts or agreements.

        (B) Applicability of other provisions

            Subsection (b)(12) of this section shall apply in the case 
        of any judicial action or proceeding brought against any 
        liquidating agent referred to in subparagraph (A), or the credit 
        union for which such liquidating agent was appointed, by any 
        party to a contract or agreement described in subparagraph 
        (A)(i) with such credit union.

        (C) Certain transfers not avoidable

            (i) In general

                Notwithstanding paragraph (11), the Board, whether 
            acting as such or as conservator or liquidating agent of an 
            insured credit union, may not avoid any transfer of money or 
            other property in connection with any qualified financial 
            contract with an insured credit union.
            (ii) Exception for certain transfers

                Clause (i) shall not apply to any transfer of money or 
            other property in connection with any qualified financial 
            contract with an insured credit union if the Board 
            determines that the transferee had actual intent to hinder, 
            delay, or defraud such credit union, the creditors of such 
            credit union, or any conservator or liquidating agent 
            appointed for such credit union.

        (D) Certain contracts and agreements defined

            For purposes of this subsection--
            (i) Qualified financial contract

                The term ``qualified financial contract'' means any 
            securities contract, forward contract, repurchase agreement, 
            and any similar agreement that the Board determines by 
            regulation to be a qualified financial contract for purposes 
            of this paragraph.
            (ii) Securities contract

                The term ``securities contract''--
                    (I) has the meaning given to such term in section 
                741 of title 11, except that the term ``security'' (as 
                used in such section) shall be deemed to include any 
                mortgage loan, any mortgage-related security (as defined 
                in section 78c(a)(41) of title 15), and any interest in 
                any mortgage loan or mortgage-related security; and
                    (II) does not include any participation in a 
                commercial mortgage loan unless the Board determines by 
                regulation, resolution, or order to include any such 
                participation within the meaning of such term.
            (iii) Forward contract

                The term ``forward contract'' has the meaning given to 
            such term in section 101 of title 11.
            (iv) Repurchase agreement

                The term ``repurchase agreement''--
                    (I) has the meaning given to such term in section 
                101 of title 11, except that the items (as described in 
                such section) which may be subject to any such agreement 
                shall be deemed to include mortgage-related securities 
                (as such term is defined in section 78c(a)(41) of title 
                15,\1\ any mortgage loan, and any interest in any 
                mortgage loan; and
---------------------------------------------------------------------------
    \1\ So in original. A close parenthesis probably should precede the 
comma.
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                    (II) does not include any participation in a 
                commercial mortgage loan unless the Board determines by 
                regulation, resolution, or order to include any such 
                participation within the meaning of such term.
            (v) Transfer

                The term ``transfer'' has the meaning given to such term 
            in section 101 of title 11.

        (E) Certain protections in event of appointment of conservator

            Notwithstanding any other provision of this chapter (other 
        than paragraph (12) of this subsection, subsection (b)(9) of 
        this section, and section 1788(a)(3) of this title), any other 
        Federal law, or the law of any State, no person shall be stayed 
        or prohibited from exercising--
                (i) any right such person has to cause the termination, 
            liquidation, or acceleration of any qualified financial 
            contract with a credit union in a conservatorship based upon 
            a default under such financial contract which is enforceable 
            under applicable noninsolvency law;
                (ii) any right under any security arrangement relating 
            to such qualified financial contracts; or
                (iii) any right to offset or net out any termination 
            values, payment amounts, or other transfer obligations 
            arising under or in connection with such qualified financial 
            contracts.

            (9) Transfer of qualified financial contracts

        In making any transfer of assets or liabilities of a credit 
    union in default which includes any qualified financial contract, 
    the conservator or liquidating agent for such credit union shall 
    either--
            (A) transfer to 1 credit union (other than a credit union in 
        default)--
                (i) all qualified financial contracts between--
                    (I) any person or any affiliate of such person; and
                    (II) the credit union in default;

                (ii) all claims of such person or any affiliate of such 
            person against such credit union under any such contract 
            (other than any claim which, under the terms of any such 
            contract, is subordinated to the claims of general unsecured 
            creditors of such credit union);
                (iii) all claims of such credit union against such 
            person or any affiliate of such person under any such 
            contract; and
                (iv) all property securing any claim described in clause 
            (ii) or (iii) under any such contract; or

            (B) transfer none of the financial contracts, claims, or 
        property referred to in subparagraph (A) (with respect to such 
        person and any affiliate of such person).

                    (10) Notification of transfer

        (A) In general

            If--
                (i) the conservator or liquidating agent for an insured 
            credit union in default makes any transfer of the assets and 
            liabilities of such credit union; and
                (ii) the transfer includes any qualified financial 
            contract,

        the conservator or liquidating agent shall use such 
        conservator's or liquidating agent's best efforts to notify any 
        person who is a party to any such contract of such transfer by 
        12:00, noon (local time), on the business day following such 
        transfer.

        (B) ``Business day'' defined

            For purposes of this paragraph, the term ``business day'' 
        means any day other than any Saturday, Sunday, or any day on 
        which either the New York Stock Exchange or the Federal Reserve 
        Bank of New York is closed.

            (11) Certain security interests not avoidable

        No provision of this subsection shall be construed as permitting 
    the avoidance of any legally enforceable or perfected security 
    interest in any of the assets of any credit union except where such 
    an interest is taken in contemplation of the credit union's 
    insolvency or with the intent to hinder, delay, or defraud the 
    credit union or the creditors of such credit union.

                 (12) Authority to enforce contracts

        (A) In general

            The conservator or liquidating agent may enforce any 
        contract, other than a director's or officer's liability 
        insurance contract or a credit union bond, entered into by the 
        credit union notwithstanding any provision of the contract 
        providing for termination, default, acceleration, or exercise of 
        rights upon, or solely by reason of, insolvency or the 
        appointment of a conservator or liquidating agent.

        (B) Certain rights not affected

            No provision of this paragraph may be construed as impairing 
        or affecting any right of the conservator or liquidating agent 
        to enforce or recover under a directors or officers liability 
        insurance contract or credit union bond under other applicable 
        law.

      (13) Exception for Federal Reserve and Federal home loan 
                                    banks

        No provision of this subsection shall apply with respect to--
            (A) any extension of credit from any Federal home loan bank 
        or Federal Reserve bank to any insured depository institution; 
        or
            (B) any security interest in the assets of the institution 
        securing any such extension of credit.

(d) Payment of insured deposits

                           (1) In general

        In case of the liquidation of any insured credit union, payment 
    of the insured deposits in such credit union shall be made by the 
    Board as soon as possible, subject to the provisions of subsection 
    (e) of this section, either by cash or by making available to each 
    accountholder a transferred deposit in a new credit union in the 
    same community or in another insured credit union in an amount equal 
    to the insured deposit of such accountholder.

                         (2) Proof of claims

        The Board, in its discretion, may require proof of claims to be 
    filed and may approve or reject such claims for insured deposits.

                     (3) Resolution of disputes

        (A) Resolutions in accordance to \2\ Board regulations
---------------------------------------------------------------------------

    \2\ So in original. Probably should be ``with''.
---------------------------------------------------------------------------
            In the case of any disputed claim relating to any insured 
        deposit or any determination of insurance coverage with respect 
        to any deposit, the Board may resolve such disputed claim in 
        accordance with regulations prescribed by the Board establishing 
        procedures for resolving such claims.

        (B) Adjudication of claims

            If the Board has not prescribed regulations establishing 
        procedures for resolving disputed claims, the Board may require 
        the final determination of a court of competent jurisdiction 
        before paying any such claim.

                 (4) Review of Board's determination

        Final determination made by the Board shall be reviewable in 
    accordance with chapter 7 of title 5 by the United States Court of 
    Appeals for the District of Columbia or the court of appeals for the 
    Federal judicial circuit where the principal place of business of 
    the credit union is located.

                     (5) Statute of limitations

        Any request for review of a final determination by the Board 
    shall be filed with the appropriate circuit court of appeals not 
    later than 60 days after such determination is ordered.

(e) Subrogation of Board

                           (1) In general

        Notwithstanding any other provision of Federal law, the law of 
    any State, or the constitution of any State, the Board, upon the 
    payment to any accountholder as provided in subsection (d) of this 
    section in connection with any insured credit union described in 
    such subsection or the assumption of any deposit in such credit 
    union by another insured credit union pursuant to this section, 
    shall be subrogated to all rights of the accountholder against such 
    credit union to the extent of such payment or assumption.

                 (2) Dividends on subrogated amounts

        The subrogation of the Board under paragraph (1) with respect to 
    any insured credit union shall include the right on the part of the 
    Board to receive the same dividends from the proceeds of the assets 
    of such credit union as would have been payable to the accountholder 
    on a claim for the insured deposit, but such accountholder shall 
    retain such claim for any uninsured or unassumed portion of the 
    deposit.

(f) Valuation of claims in default

                           (1) In general

        Notwithstanding any other provision of Federal law or the law of 
    any State, this subsection shall govern the rights of the creditors 
    (other than insured accountholders) of such credit union.

                        (2) Maximum liability

        The maximum liability of the Board, acting as liquidating agent 
    or in any other capacity, to any person having a claim against the 
    liquidating agent or the insured credit union for which such 
    liquidating agent is appointed shall equal the amount such claimant 
    would have received if the Board had liquidated the assets and 
    liabilities of such credit union without exercising the Board's 
    authority under subsection (n) of this section.

                 (3) Additional payments authorized

        (A) In general

            The Board may, in its discretion and in the interests of 
        minimizing its losses, use its own resources to make additional 
        payments or credit additional amounts to or with respect to or 
        for the account of any claimant or category of claimants. The 
        Board shall not be obligated, as a result of having made any 
        such payment or credited any such amount to or with respect to 
        or for the account of any claimant or category of claimants, to 
        make payments to any other claimant or category or \3\ 
        claimants.
---------------------------------------------------------------------------
    \3\ So in original. Probably should be ``of''.
---------------------------------------------------------------------------

        (B) Manner of payment

            The Board may make the payments or credit the amounts 
        specified in subparagraph (A) directly to the claimants or may 
        make such payments or credit such amounts to an open insured 
        credit union to induce the open insured credit union to accept 
        liability for such claims.

(g) Limitation on court action

    Except as provided in this section, no court may take any action, 
except at the request of the Board of Directors by regulation or order, 
to restrain or affect the exercise of powers or functions of the Board 
as a conservator or a liquidating agent.

(h) Liability of directors and officers

    A director or officer of an insured credit union may be held 
personally liable for monetary damages in any civil action by, on behalf 
of, or at the request or direction of the Board, which action is 
prosecuted wholly or partially for the benefit of the Board--
        (1) acting as conservator or liquidating agent of such insured 
    credit union,
        (2) acting based upon a suit, claim, or cause of action 
    purchased from, assigned by, or otherwise conveyed by such 
    liquidating agent or conservator, or
        (3) acting based upon a suit, claim, or cause of action 
    purchased from, assigned by, or otherwise conveyed in whole or in 
    part by an insured credit union or its affiliate in connection with 
    assistance provided under section 1788 of this title,

for gross negligence, including any similar conduct or conduct that 
demonstrates a greater disregard of a duty of care (than gross 
negligence) including intentional tortious conduct, as such terms are 
defined and determined under applicable State law. Nothing in this 
paragraph shall impair or affect any right, if any, of the Board under 
other applicable law.

(i) Damages

    In any proceeding related to any claim against an insured credit 
union's director, officer, employee, agent, attorney, accountant, 
appraiser, or any other party employed by or providing services to an 
insured credit union, recoverable damages determined to result from the 
improvident or otherwise improper use or investment of any insured 
credit union's assets shall include principal losses and appropriate 
interest.

(j) Board as liquidating agent of State-chartered credit unions

    Whenever any insured State-chartered credit union shall have been 
closed by action of its board of directors or by the commission, board, 
or authority having supervision of such credit union, as the case may 
be, or by a court of competent jurisdiction, on account of bankruptcy or 
insolvency, the Board shall accept appointment as liquidating agent 
therefor, if such appointment is tendered by the commission, board, or 
authority having supervision of such credit union, or by a court of 
competent jurisdiction, and is authorized or permitted by State law. 
With respect to any such State-chartered credit union, the Board as such 
liquidating agent shall possess all the rights, powers, and privileges 
granted by State law to a liquidating agent of a State-chartered credit 
union. For the purposes of this subsection, the term ``liquidating 
agent'' includes a liquidating agent, receiver, conservator, commission, 
person, or other agency charged by law with the duty of winding up the 
affairs of a credit union.

(k) Extent of insurance coverage; insurance of public funds; insurance 
        regarding pension and profitsharing plans

    (1) Subject to the provisions of paragraph (2), for the purposes of 
this subsection, the term ``insured account'' means the total amount of 
the account in the member's name (after deducting offsets) less any part 
thereof which is in excess of $100,000. Such amount shall be determined 
according to such regulations as the Board may prescribe, and, in 
determining the amount due to any member, there shall be added together 
all accounts in the credit union maintained by him for his own benefit 
either in his own name or in the names of others. The Board may define, 
with such classifications and exceptions as it may prescribe, the extent 
of the insurance coverage provided for member accounts, including member 
accounts in the name of a minor, in trust, or in joint tenancy.
    (2)(A) Notwithstanding any limitation in this chapter or in any 
other provision of law relating to the amount of insurance available for 
the account of any one depositor or member, in the case of a depositor 
or member who is--
        (i) an officer, employee, or agent of the United States having 
    official custody of public funds and lawfully investing the same in 
    a credit union insured in accordance with this subchapter;
        (ii) an officer, employee, or agent of any State of the United 
    States, or of any county, municipality, or political subdivision 
    thereof having official custody of public funds and lawfully 
    investing the same in a credit union insured in accordance with this 
    subchapter in such State;
        (iii) an officer, employee, or agent of the District of Columbia 
    having official custody of public funds and lawfully investing the 
    same in a credit union insured in accordance with this subchapter in 
    the District of Columbia;
        (iv) an officer, employee, or agent of the Commonwealth of 
    Puerto Rico, of the Panama Canal Zone, or of any territory or 
    possession of the United States, or of any county, municipality, or 
    political subdivision thereof having official custody of public 
    funds and lawfully investing the same in a credit union insured in 
    accordance with this subchapter in the Commonwealth of Puerto Rico, 
    the Panama Canal Zone, or any such territory or possession, 
    respectively; or
        (v) an officer, employee, or agent of any Indian tribe (as 
    defined in section 1452(c) of title 25) or agency thereof having 
    official custody of tribal funds and lawfully investing the same in 
    a credit union insured in accordance with this subchapter;

his account shall be insured in an amount not to exceed $100,000 per 
account.
    (B) The Board may limit the aggregate amount of funds that may be 
invested or deposited in any credit union insured in accordance with 
this subchapter by any depositor or member referred to in subparagraph 
(A) on the basis of the size of any such credit union in terms of its 
assets.
    (3) Notwithstanding any limitation in this subchapter or in any 
other provision of law relating to the amount of insurance available for 
the account of any one depositor or member, funds invested in a credit 
union insured in accordance with this subchapter pursuant to a pension 
or profit-sharing plan described in section 401(d) of title 26, and 
funds invested in such an insured credit union in the form of individual 
retirement accounts as described in section 408(a) of title 26, shall be 
insured in the amount of $100,000 per account. As to any plan qualifying 
under section 401(d) or section 408(a) of title 26, the term ``per 
account'' means the present vested and ascertainable interest of each 
beneficiary under the plan, excluding any remainder interest created by, 
or as a result of, the plan.

(l) Payment; discharge of liability

    Payment of an insured account to any person by the Board shall 
discharge the Board to the same extent that payment to such person by 
the closed insured credit union would have discharged it from liability 
for the insured account.

(m) Undisclosed names

    Except as otherwise prescribed by the Board, the Board shall not be 
required to recognize as the owner of any portion of an account 
appearing on the records of the closed credit union under a name other 
than that of the claimant any person whose name or interest as such 
owner is not disclosed on the records of such closed credit union as 
part owner of such account, if such recognition would increase the 
aggregate amount of the insured accounts in such closed credit union.

(n) Withholding of payment due to liability of credit union member

    The Board may withhold payment of such portion of the insured 
account of any member of a closed credit union as may be required to 
provide for the payment of any direct or indirect liability of such 
member to the closed credit union or its liquidating agent, which is not 
offset against a claim due from such credit union, pending the 
determination and payment of such liability by such member or any other 
person liable therefor.

(o) Unclaimed insured accounts; limitations

    If, after the Board shall have given at least four months' notice to 
the member by mailing a copy thereof to his last-known address appearing 
on the records of the closed credit union, any member of the closed 
credit union shall fail to claim his insured account from the Board 
within 18 months after the appointment of the liquidating agent for the 
closed credit union, all rights of the member against the Board with 
respect to the insured accounts shall be barred, and all rights of the 
member against the closed credit union, or the estate to which the Board 
may have become subrogated, shall thereupon revert to the member.

(p) Sale of assets; security for loans; approval of court; agreements 
        affecting interest of Board in any asset acquired by it

    (1) Liquidating agents of insured credit unions closed for 
liquidation on account of bankruptcy or insolvency may offer the assets 
of such credit unions for sale to the Board or as security for loans 
from the Board, upon receiving permission from the commission, board, or 
authority having supervision of such credit union, in the case of an 
insured State-chartered credit union, in accordance with express 
provisions of State law. The proceeds of every such sale or loan shall 
be utilized for the same purposes and in the same manner as other funds 
realized from the liquidation of the assets of such credit unions. The 
Board, in its discretion, may make loans on the security of or may 
purchase and liquidate or sell any part of the assets of an insured 
credit union closed for liquidation on account of bankruptcy or 
insolvency, but in any case in which the Board is acting as liquidating 
agent of a closed insured credit union, no such loan or purchase shall 
be made without the approval of a court of competent jurisdiction.
    (2) No agreement which tends to diminish or defeat the right, title, 
or interest of the Board in any asset acquired by it under this 
subsection, either as security for a loan or by purchase, shall be valid 
against the Board unless such agreement--
        (A) shall be in writing;
        (B) shall have been executed by the credit union and the person 
    or persons claiming an adverse interest thereunder, including the 
    obligor, contemporaneously with the acquisition of the asset by the 
    credit union;
        (C) shall have been approved by the board of directors of the 
    credit union, which approval shall be reflected in the minutes of 
    such board; and
        (D) shall have been, continuously, from the time of its 
    execution, an official record of the credit union.

(q) Prohibition on certain acquisitions of assets

                        (1) Convicted debtors

        Except as provided in paragraph (2), any individual who--
            (A) has been convicted of an offense under section 215, 657, 
        1006, 1014, 1032, 1341, 1343, or 1344 of title 18 or of 
        conspiring to commit any such offense, affecting any insured 
        credit union for which the Board is appointed conservator or 
        liquidating agent; and
            (B) is in default on any loan or other extension of credit 
        from such insured credit union which, if not paid, will cause 
        substantial loss to the credit union, the National Credit Union 
        Share Insurance Fund, or the Board,

    may not purchase any asset of such credit union from the conservator 
    or liquidating agent.

                      (2) Settlement of claims

        Paragraph (1) shall not apply to the sale or transfer by the 
    Board of any asset of any insured credit union to any individual if 
    the sale or transfer of the asset resolves or settles, or is part of 
    the resolution or settlement, of--
            (A) 1 or more claims that have been, or could have been, 
        asserted by the Board against the individual; or
            (B) obligations owed by the individual to the insured credit 
        union or the Board.

(r) Foreign investigations

    The Board, as conservator or liquidating agent of any insured credit 
union and for purposes of carrying out any power, authority, or duty 
with respect to an insured credit union--
        (1) may request the assistance of any foreign banking authority 
    and provide assistance to any foreign banking authority in 
    accordance with section 1786(u) of this title; and
        (2) may maintain an office to coordinate foreign investigations 
    or investigations on behalf of foreign banking authorities.

(June 26, 1934, ch. 750, title II, Sec. 207, as added Pub. L. 91-468, 
Sec. 1(3), Oct. 19, 1970, 84 Stat. 1010; amended Pub. L. 93-495, title 
I, Secs. 101(c), 104(a), Oct. 28, 1974, 88 Stat. 1501, 1503; Pub. L. 95-
630, title V, Sec. 502(b), title XIV, Sec. 1401(c), Nov. 10, 1978, 92 
Stat. 3681, 3712; Pub. L. 96-153, title III, Sec. 323(c), Dec. 21, 1979, 
93 Stat. 1120; Pub. L. 96-221, title III, Sec. 308(c)(1), Mar. 31, 1980, 
94 Stat. 148; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; 
Pub. L. 100-86, title VII, Sec. 714(a), (b), Aug. 10, 1987, 101 Stat. 
654, 655; Pub. L. 101-73, title IX, Sec. 915(c), title XII, 
Sec. 1217(a), Aug. 9, 1989, 103 Stat. 486, 530; Pub. L. 101-647, title 
XXV, Secs. 2521(a)(2), 2526(b), 2528(b), 2532(d), 2534(b), Nov. 29, 
1990, 104 Stat. 4864, 4876, 4878, 4882, 4883; Pub. L. 103-394, title V, 
Sec. 501(c)(1), Oct. 22, 1994, 108 Stat. 4143; Pub. L. 105-219, title 
III, Sec. 301(b)(2), Aug. 7, 1998, 112 Stat. 930.)

                       References in Text

    The Federal Rules of Civil Procedure, referred to in subsec. 
(b)(2)(G), (H), are set out in the Appendix to Title 28, Judiciary and 
Judicial Procedure.
    For definition of Canal Zone, referred to in subsec. (k)(2)(A)(iv), 
see section 3602(b) of Title 22, Foreign Relations and Intercourse.


                               Amendments

    1998--Subsec. (a)(1)(A). Pub. L. 105-219, Sec. 301(b)(2)(A), 
substituted ``itself'' for ``himself''.
    Subsec. (a)(3). Pub. L. 105-219, Sec. 301(b)(2)(B), added par. (3).
    1994--Subsec. (c)(8)(D). Pub. L. 103-394 substituted ``section 741'' 
for ``section 741(7)'' in cl. (ii)(I), ``section 101'' for ``section 
101(24)'' in cl. (iii), ``section 101'' for ``section 101(41)'' in cl. 
(iv)(I), and ``section 101'' for ``section 101(50)'' in cl. (v).
    1990--Subsec. (b)(2)(G), (H). Pub. L. 101-647, Sec. 2521(a)(2), 
added subpars. (G) and (H). Former subpar. (G) redesignated (I).
    Subsec. (b)(2)(I). Pub. L. 101-647, Sec. 2534(b), added subpar. (I). 
Former subpar. (I) redesignated (J).
    Pub. L. 101-647, Sec. 2521(a)(2), redesignated subpar. (G) as (I).
    Subsec. (b)(2)(J). Pub. L. 101-647, Sec. 2534(b), redesignated 
subpar. (I) as (J).
    Subsec. (b)(16). Pub. L. 101-647, Sec. 2528(b), added par. (16).
    Subsec. (q). Pub. L. 101-647, Sec. 2526(b), added subsec. (q).
    Subsec. (r). Pub. L. 101-647, Sec. 2532(d), added subsec. (r).
    1989--Subsec. (a)(2), (3). Pub. L. 101-73, Sec. 1217(a)(1), 
redesignated par. (3) as (2) and struck out former par. (2) which 
detailed the duties of the Board in serving as liquidating agent for 
bankrupt or insolvent credit unions.
    Subsec. (b). Pub. L. 101-73, Sec. 1217(a)(3), (4), added subsec. (b) 
and redesignated former subsec. (b) as (j).
    Subsec. (c). Pub. L. 101-73, Sec. 1217(a)(3), (4), added subsec. (c) 
and redesignated former subsec. (c) as (k).
    Subsec. (d). Pub. L. 101-73, Sec. 1217(a)(2), (4), added subsec. (d) 
and struck out former subsec. (d) which provided for subrogation by the 
Board to all rights of a member against a closed credit union to the 
extent of the Board's payment to the member.
    Subsecs. (e) to (i). Pub. L. 101-73, Sec. 1217(a)(3), (4), added 
subsecs. (e) to (i) and redesignated former subsecs. (e) to (i) as (l) 
to (p), respectively.
    Subsec. (j). Pub. L. 101-73, Sec. 1217(a)(2), (3), redesignated 
former subsec. (b) as (j) and struck out former subsec. (j) which 
provided that the power of the Board respecting liquidations was subject 
to the Board's own regulations or to regulations of other public 
authorities.
    Subsec. (k). Pub. L. 101-73, Sec. 1217(a)(3), (5), redesignated 
former subsec. (c) as (k) and in par. (1), struck out first and fifth 
sentences which provided that, whenever an insured credit union was 
closed for liquidation on account of bankruptcy or insolvency, the Board 
was to pay insured accounts as soon as possible, and that in such cases 
the Board could investigate claims, require proof of them, and require 
determination by a court.
    Subsec. (k)(1). Pub. L. 101-73, Sec. 915(c), inserted ``may 
investigate said claims under section 1786(p) of this title,'' after 
``before paying the insured accounts,'' in last sentence.
    Subsecs. (l) to (p). Pub. L. 101-73, Sec. 1217(a)(3), redesignated 
former subsecs. (e) to (i) as (l) to (p), respectively.
    1987--Subsec. (a)(1). Pub. L. 100-86, Sec. 714(a), designated 
existing provisions as subpar. (A) and added subpar. (B).
    Subsec. (j). Pub. L. 100-86, Sec. 714(b), redesignated former 
section 1788(c) of this title as subsec. (j) of this section and 
substituted ``subject only to the regulation of the Board, or, in cases 
where the Board has been appointed liquidating agent solely by a public 
authority having jurisdiction over the matter other than said Board, 
subject only to the regulation of such public authority'' for ``subject 
to the regulation of the court or other public body having jurisdiction 
over the matter''.
    1986--Subsec. (c)(3). Pub. L. 99-514 substituted ``Internal Revenue 
Code of 1986'' for ``Internal Revenue Code of 1954'' wherever appearing, 
which for purposes of codification was translated as ``title 26'' thus 
requiring no change in text.
    1980--Subsec. (c)(1). Pub. L. 96-221 substituted ``$100,000'' for 
``$40,000''.
    1979--Subsec. (c)(2)(A)(v). Pub. L. 96-153 added cl. (v).
    1978--Subsecs. (a), (b). Pub. L. 95-630, Sec. 502(b), substituted 
``Board'' for ``Administrator'' wherever appearing, ``it'' for ``he'' 
and ``him'', and ``its'' for ``his'', where appropriate.
    Subsec. (c). Pub. L. 95-630, Secs. 502(b), 1401(c), substituted in 
pars. (1) and (2) ``Board'' for ``Administrator'' wherever appearing and 
``it'' and ``its'' for ``he'' and ``his'', respectively, where 
appropriate, and added par. (3).
    Subsecs. (d) to (i). Pub. L. 95-630, Sec. 502(b), substituted 
``Board'' for ``Administrator'' wherever appearing, and ``it'' and 
``its'' for ``him'' and ``his'', respectively, where appropriate.
    1974--Subsec. (c)(1). Pub. L. 93-495, Secs. 101(c)(1), (2), 104(a), 
redesignated existing provisions as par. (1), substituted ``Subject to 
the provisions of paragraph (2), for the purposes of this subsection'' 
for ``For the purposes of this subsection'', and substituted ``$40,000'' 
for ``$20,000''. As enacted section 104(a) of Pub. L. 93-495 amended the 
first sentence; however the amendment was executed to the second 
sentence editorially since this would appear to be the probable intent 
of Congress.
    Subsec. (c)(2). Pub. L. 93-495, Sec. 101(c)(3), added par. (2).


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not 
applicable with respect to cases commenced under Title 11, Bankruptcy, 
before Oct. 22, 1994, see section 702 of Pub. L. 103-394, set out as a 
note under section 101 of Title 11.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-221 effective on Mar. 31, 1980, see section 
308(e) of Pub. L. 96-221, set out as a note under section 1817 of this 
title.


                     Applicability of 1980 Amendment

    Section 308(c)(2) of Pub. L. 96-221 provided that: ``The amendment 
made by this subsection [amending this section] is not applicable to any 
claim arising out of the closing of a credit union for liquidation on 
account of bankruptcy or insolvency pursuant to section 207 of the 
Federal Credit Union Act (12 U.S.C. 1787) prior to the effective date of 
this section [see section 308(e) of Pub. L. 96-221, set out as an 
Effective Date of 1980 Amendment note under section 1817 of this 
title].''


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-153 applicable only to claims arising after 
Dec. 21, 1979, with respect to a closing of a bank, etc., see section 
323(e) of Pub. L. 96-153, set out as an Effective and Termination Dates 
of 1979 Amendment note under section 1728 of this title.


                    Effective Date of 1978 Amendment

    Amendment by section 502(b) of Pub. L. 95-630 effective on 
expiration of 120 days after Nov. 10, 1978, and transitional provisions, 
see section 509 of Pub. L. 95-630, set out as a note under section 1752 
of this title.
    Section 1402 of title XIV of Pub. L. 95-630 provided that: ``This 
title [amending this section and sections 1728 and 1821 of this title] 
shall take effect upon enactment [Nov. 10, 1978].''


                    Effective Date of 1974 Amendment

    For effective date of amendment by section 101(c)(1), (2) of Pub. L. 
93-495 see section 101(g) of Pub. L. 93-495, set out as a note under 
section 1813 of this title.
    Section 104(b), (c) of Pub. L. 93-495 provided that:
    ``(b) The amendment made by this section [amending this section] is 
not applicable to any claim arising out of the closing of a credit union 
for liquidation on account of bankruptcy or insolvency pursuant to 
section 207 of title II of the Federal Credit Union Act (12 U.S.C. 1787) 
prior to the effective date of this section.
    ``(c) The amendment made by this section shall take effect on the 
thirtieth day beginning after the date of enactment of this Act [Oct. 
28, 1974.].''

                  Section Referred to in Other Sections

    This section is referred to in sections 1752, 1757, 1782, 1783, 1786 
of this title.



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