§ 1822. — Corporation as receiver.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1822]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1822. Corporation as receiver
(a) Bond not required; agents; fee
The Corporation as receiver of an insured depository institution or
branch of a foreign bank shall not be required to furnish bond and may
appoint an agent or agents to assist it in its duties as such receiver.
All fees, compensation, and expenses of liquidation and administration
shall be fixed by the Corporation, and may be paid by it out of funds
coming into its possession as such receiver.
(b) Payment of insured deposit as discharge from liability
Payment of an insured deposit to any person by the Corporation shall
discharge the Corporation, and payment of a transferred deposit to any
person by the new bank or by an insured depository institution in which
a transferred deposit has been made available shall discharge the
Corporation and such new bank or other insured depository institution,
to the same extent that payment to such person by the depository
institution in default would have discharged it from liability for the
insured deposit.
(c) Recognition of claimant not on depository institution records
Except as otherwise prescribed by the Board of Directors, neither
the Corporation nor such new bank or other insured depository
institution shall be required to recognize as the owner of any portion
of a deposit appearing on the records of the depository institution in
default 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
depository institution in default as part owner of said deposit, if such
recognition would increase the aggregate amount of the insured deposits
in such depository institution in default.
(d) Withholding payments to meet liability to depository institution
The Corporation may withhold payment of such portion of the insured
deposit of any depositor in a depository institution in default as may
be required to provide for the payment of any liability of such
depositor to the depository institution in default or its receiver,
which is not offset against a claim due from such depository
institution, pending the determination and payment of such liability by
such depositor or any other person liable therefor.
(e) Disposition of unclaimed deposits
(1) Notices
(A) First notice
Within 30 days after the initiation of the payment of
insured deposits under section 1821(f) of this title, the
Corporation shall provide written notice to all insured
depositors that they must claim their deposit from the
Corporation, or if the deposit has been transferred to another
institution, from the transferee institution.
(B) Second notice
A second notice containing this information shall be mailed
by the Corporation to all insured depositors who have not
responded to the first notice, 15 months after the Corporation
initiates such payment of insured depositors.
(C) Address
The notices shall be mailed to the last known address of the
depositor appearing on the records of the insured depository
institution in default.
(2) Transfer to appropriate State
If an insured depositor fails to make a claim for his, her, or
its insured or transferred deposit within 18 months after the
Corporation initiates the payment of insured deposits under section
1821(f) of this title--
(A) any transferee institution shall refund the deposit to
the Corporation, and all rights of the depositor against the
transferee institution shall be barred; and
(B) with the exception of United States deposits, the
Corporation shall deliver the deposit to the custody of the
appropriate State as unclaimed property, unless the appropriate
State declines to accept custody. Upon delivery to the
appropriate State, all rights of the depositor against the
Corporation with respect to the deposit shall be barred and the
Corporation shall be deemed to have made payment to the
depositor for purposes of section 1821(g)(1) of this title.
(3) Refusal of appropriate State to accept custody
If the appropriate State declines to accept custody of the
deposit tendered pursuant to paragraph (2)(B), the deposit shall not
be delivered to any State, and the insured depositor shall claim the
deposit from the Corporation before the receivership is terminated,
or all rights of the depositor with respect to such deposit shall be
barred.
(4) Treatment of United States deposits
If the deposit is a United States deposit it shall be delivered
to the Secretary of the Treasury for deposit in the general fund of
the Treasury. Upon delivery to the Secretary of the Treasury, all
rights of the depositor against the Corporation with respect to the
deposit shall be barred and the Corporation shall be deemed to have
made payment to the depositor for purposes of section 1821(g)(1) of
this title.
(5) Reversion
If a depositor does not claim the deposit delivered to the
custody of the appropriate State pursuant to paragraph (2)(B) within
10 years of the date of delivery, the deposit shall be immediately
refunded to the Corporation and become its property. All rights of
the depositor against the appropriate State with respect to such
deposit shall be barred as of the date of the refund to the
Corporation.
(6) Definitions
For purposes of this subsection--
(A) the term ``transferee institution'' means the insured
depository institution in which the Corporation has made
available a transferred deposit pursuant to section 1821(f)(1)
of this title;
(B) the term ``appropriate State'' means the State to which
notice was mailed under paragraph (1)(C), except that if the
notice was not mailed to an address that is within a State it
shall mean the State in which the depository institution in
default has its main office; and
(C) the term ``United States deposit'' means an insured or
transferred deposit for which the deposit records of the
depository institution in default disclose that title to the
deposit is held by the United States, any department, agency, or
instrumentality of the Federal Government, or any officer or
employee thereof in such person's official capacity.
(f) Conflict of interest
(1) Applicability of other provisions
(A) Clarification of status of Corporation
The Corporation is, and has been since its creation, an
agency for purposes of title 18.
(B) Treatment of contractors
Any individual who, pursuant to a contract or any other
arrangement, performs functions or activities of the
Corporation, under the direct supervision of an officer or
employee of the Corporation, shall be deemed to be an employee
of the Corporation for purposes of title 18 and this chapter.
Any individual who, pursuant to a contract or any other
agreement, acts for or on behalf of the Corporation, and who is
not otherwise treated as an officer or employee of the United
States for purposes of title 18 shall be deemed to be a public
official for purposes of section 201 of title 18.
(2) Regulations concerning employee conduct
The officers and employees of the Corporation and those
individuals under contract to the Corporation who are deemed, under
paragraph (1)(B), to be employees of the Corporation for purposes of
title 18 shall be subject to the ethics and conflict of interest
rules and regulations issued by the Office of Government Ethics,
including those concerning employee conduct, financial disclosure,
and post-employment activities. The Board of Directors may prescribe
regulations that supplement such rules and regulations only with the
concurrence of that Office.
(3) Regulations concerning independent contractors
The Board of Directors shall prescribe regulations applicable to
those independent contractors who are not deemed, under paragraph
(1)(B), to be employees of the Corporation for purposes of title 18
governing conflicts of interest, ethical responsibilities, and the
use of confidential information consistent with the goals and
purposes of titles 18 and 41. Any such regulations shall be in
addition to, and not in lieu of, any other statute or regulation
which may apply to the conduct of such independent contractors.
(4) Disapproval of contractors
(A) In general
The Board of Directors shall prescribe regulations
establishing procedures for ensuring that any individual who is
performing, directly or indirectly, any function or service on
behalf of the Corporation meets minimum standards of competence,
experience, integrity, and fitness.
(B) Prohibition from service on behalf of Corporation
The procedures established under subparagraph (A) shall
provide that the Corporation shall prohibit any person who does
not meet the minimum standards of competence, experience,
integrity, and fitness from--
(i) entering into any contract with the Corporation; or
(ii) becoming employed by the Corporation or otherwise
performing any service for or on behalf of the Corporation.
(C) Information required to be submitted
The procedures established under subparagraph (A) shall
require that any offer submitted to the Corporation by any
person under this section and any employment application
submitted to the Corporation by any person shall include--
(i) a list and description of any instance during the 5
years preceding the submission of such application in which
the person or a company under such person's control
defaulted on a material obligation to an insured depository
institution; and
(ii) such other information as the Board may prescribe
by regulation.
(D) Subsequent submissions
(i) In general
No offer submitted to the Corporation may be accepted
unless the offeror agrees that no person will be employed,
directly or indirectly, by the offeror under any contract
with the Corporation unless--
(I) all applicable information described in
subparagraph (C) with respect to any such person is
submitted to the Corporation; and
(II) the Corporation does not disapprove of the
direct or indirect employment of such person.
(ii) Finality of determination
Any determination made by the Corporation pursuant to
this paragraph shall be in the Corporation's sole discretion
and shall not be subject to review.
(E) Prohibition required in certain cases
The standards established under subparagraph (A) shall
require the Corporation to prohibit any person who has--
(i) been convicted of any felony;
(ii) been removed from, or prohibited from participating
in the affairs of, any insured depository institution
pursuant to any final enforcement action by any appropriate
Federal banking agency;
(iii) demonstrated a pattern or practice of defalcation
regarding obligations to insured depository institutions; or
(iv) caused a substantial loss to Federal deposit
insurance funds;
from performing any service on behalf of the Corporation.
(5) Abrogation of contracts
The Corporation may rescind any contract with a person who--
(A) fails to disclose a material fact to the Corporation;
(B) would be prohibited under paragraph (6) from providing
services to, receiving fees from, or contracting with the
Corporation; or
(C) has been subject to a final enforcement action by any
Federal banking agency.
(6) Priority of FDIC rules
To the extent that the regulations under this subsection
conflict with rules of other agencies or Government corporations,
officers, directors, employees, and independent contractors of the
Corporation who are also subject to the conflict of interest or
ethical rules of another agency or Government corporation, shall be
governed by the regulations prescribed by the Board of Directors
under this subsection when acting for or on behalf of the
Corporation. Notwithstanding the preceding sentence, the rules of
the Corporation shall not take priority over the ethics and conflict
of interest rules and regulations promulgated by the Office of
Government Ethics unless specifically authorized by that Office.
(Sept. 21, 1950, ch. 967, Sec. 2[12], 64 Stat. 887; Pub. L. 95-369,
Sec. 6(c)(23), Sept. 17, 1978, 92 Stat. 619; Pub. L. 97-320, title I,
Sec. 113(l), Oct. 15, 1982, 96 Stat. 1474; Pub. L. 101-73, title II,
Secs. 201(a), 216, Aug. 9, 1989, 103 Stat. 187, 254; Pub. L. 103-44,
Sec. 1, June 28, 1993, 107 Stat. 220; Pub. L. 103-204, Sec. 19(a), Dec.
17, 1993, 107 Stat. 2402; Pub. L. 104-179, Sec. 4(b)(1), Aug. 6, 1996,
110 Stat. 1567.)
Prior Provisions
Section is derived from subsec. (m) of former section 264 of this
title. See Codification note set out under section 1811 of this title.
Amendments
1996--Subsec. (f)(3). Pub. L. 104-179 struck out ``, with the
concurrence of the Office of Government Ethics,'' after ``The Board of
Directors''.
1993--Subsec. (e). Pub. L. 103-44 inserted heading and amended text
generally. Prior to amendment, text read as follows: ``If, after the
Corporation shall have given at least three months' notice to the
depositor by mailing a copy thereof to his last-known address appearing
on the records of the depository institution in default, any depositor
in the depository institution in default shall fail to claim his insured
deposit from the Corporation within eighteen months after the
appointment of the receiver for the depository institution in default,
or shall fail within such period to claim or arrange to continue the
transferred deposit with the new bank or with the other insured
depository institution which assumes liability therefor, all rights of
the depositor against the Corporation with respect to the insured
deposit, and against the new bank and such other insured depository
institution with respect to the transferred deposit, shall be barred,
and all rights of the depositor against the depository institution in
default and its shareholders, or the receivership estate to which the
Corporation may have become subrogated, shall thereupon revert to the
depositor. The amount of any transferred deposits not claimed within
such eighteen months' period, shall be refunded to the Corporation.''
Subsec. (f). Pub. L. 103-204 added subsec. (f).
1989--Pub. L. 101-73, Sec. 201(a), substituted references to insured
depository institutions for references to insured banks wherever
appearing in this section.
Subsec. (a). Pub. L. 101-73, Sec. 216(2), inserted heading and text
of subsec. (a), and struck out former subsec. (a) which read as follows:
``Notwithstanding any other provision of law, the Corporation as
receiver of a closed national bank, branch of a foreign bank, insured
Federal savings bank, or District bank 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 receiver, and all fees, compensation, and expenses
of liquidation and administration thereof shall be fixed by the
Corporation, and may be paid by it out of funds coming into its
possession as such receiver.''
Subsecs. (b), (c). Pub. L. 101-73, Sec. 216(1), substituted
``depository institution in default'' for ``closed bank'' wherever
appearing.
Subsec. (d). Pub. L. 101-73, Sec. 216(1), (3), substituted
``depository institution in default'' for ``closed bank'' in three
places, struck out ``as a stockholder of the depository institution in
default, or of any liability of such depositor'' after ``payment of any
liability of such depositor'', and substituted ``such depository
institution'' for ``such bank''.
Subsec. (e). Pub. L. 101-73, Sec. 216(1), substituted ``depository
institution in default'' for ``closed bank'' wherever appearing.
1982--Subsec. (a). Pub. L. 97-320 inserted ``insured Federal savings
bank,'' after ``foreign bank,''.
1978--Subsec. (a). Pub. L. 95-369 inserted ``, branch of a foreign
bank,'' after ``a closed national bank''.
Effective Date of 1993 Amendments
Section 19(c) of Pub. L. 103-204 provided that: ``The amendment made
by subsection (a) [amending this section] shall apply after the end of
the 6-month period beginning on the date of enactment of this Act [Dec.
17, 1993].''
Section 2 of Pub. L. 103-44 provided that:
``(a) In General.--The amendments made by section 1 of this Act
[amending this section] shall only apply with respect to institutions
for which the Corporation has initiated the payment of insured deposits
under section 11(f) of the Federal Deposit Insurance Act [12 U.S.C.
1821(f)] after the date of enactment of this Act [June 28, 1993].
``(b) Special Rule for Receiverships in Progress.--Section 12(e) of
the Federal Deposit Insurance Act [12 U.S.C. 1822(e)] as in effect on
the day before the date of enactment of this Act [June 28, 1993] shall
apply with respect to insured deposits in depository institutions for
which the Corporation was first appointed receiver during the period
between January 1, 1989 and the date of enactment of this Act, except
that such section 12(e) shall not bar any claim made against the
Corporation by an insured depositor for an insured or transferred
deposit, so long as such claim is made prior to the termination of the
receivership.
``(c) Information to States.--Within 120 days after the date of
enactment of this Act [June 28, 1993], the Corporation shall provide, at
the request of and for the sole use of any State, the name and last
known address of any insured depositor (as shown on the records of the
institution in default) eligible to make a claim against the Corporation
solely due to the operation of subsection (b) of this section.
``(d) Definition.--For purposes of this section, the term
`Corporation' means the Federal Deposit Insurance Corporation, the
Resolution Trust Corporation, or the Federal Savings and Loan Insurance
Corporation, as appropriate.''
Section Referred to in Other Sections
This section is referred to in sections 1441a, 1821 of this title;
title 18 section 1032.