§ 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
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\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
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\2\ So in original. Probably should be ``with''.
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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.
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\3\ So in original. Probably should be ``of''.
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(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.