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§ 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.



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