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§ 4620. —  Powers of conservators.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC4620]

 
                       TITLE 12--BANKS AND BANKING
 
              CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
 
   SUBCHAPTER II--REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL 
                           ENFORCEMENT POWERS
 
Sec. 4620. Powers of conservators


(a) General powers

    A conservator shall have all the powers of the shareholders, 
directors, and officers of the enterprise under conservatorship and may 
operate the enterprise in the name of the enterprise, unless the 
Director provides otherwise.

(b) Additional power

    A conservator may avoid any security interest taken by a creditor 
with the intent to hinder, delay, or defraud the enterprise or the 
creditors of the enterprise.

(c) Limitations by Director

    A conservator shall be subject to any rules, regulations, and orders 
issued from time to time by the Director and, except as otherwise 
specifically provided in such rules, regulations, or orders or in 
section 4621 of this title, shall have the same rights and privileges 
and be subject to the same duties, restrictions, penalties, conditions, 
and limitations applicable to directors, officers, or employees of the 
enterprise.

(d) Enforcement of contracts

                           (1) In general

        A conservator may enforce any contract described in paragraph 
    (2), notwithstanding any provision of the contract providing for the 
    termination, default, acceleration, or other exercise of rights 
    upon, or solely by reason of, the insolvency of the enterprise or 
    the appointment of a conservator.

                      (2) Enforceable contracts

        Any contract that is within a class of contracts shall be 
    enforceable under paragraph (1) if the Director--
            (A) determines that the continued enforceability of such 
        class of contracts is necessary to achieve the purpose of the 
        conservatorship; and
            (B) specifically provides for the enforceability of such 
        class of contracts in a regulation or order, issued for the 
        purpose of this subsection, which describes such class.

                          (3) Applicability

        This subsection and any regulation or order issued under this 
    subsection shall apply only to contracts entered into, modified, 
    extended, or renewed after the effective date of the regulation or 
    order.

(e) Stays

                           (1) In general

        Not later than 45 days after appointment pursuant to section 
    4616, 4617, or 4619 of this title, or 45 days after receipt of 
    actual notice of an action or proceeding that is pending at the time 
    of appointment, a conservator may request that any judicial action 
    or proceeding to which the conservator or the enterprise is or may 
    become a party be stayed for a period not exceeding 45 days after 
    the request. Upon petition, the court shall grant such stay as to 
    all parties.

                  (2) Federal agency as conservator

        In any case in which the conservator appointed for an enterprise 
    is a Federal agency or an officer or employee of the Federal 
    Government, the conservator may make a request for a stay under 
    paragraph (1) only with the prior consent of the Attorney General 
    and subject to the direction and control of the Attorney General.

(f) Payment of creditors

    The Director may require a conservator to set aside and make 
available for payment to creditors any amounts that the Director 
determines may safely be used for such purpose. All creditors who are 
similarly situated shall be treated in a similar manner.

(g) Compensation of conservator and employees

    A conservator and professional employees (other than Federal 
employees) appointed to represent or assist the conservator may be 
compensated for activities conducted as conservator. Compensation may 
not be provided in amounts greater than the compensation paid to 
employees of the Federal Government for similar services, except that 
the Director may provide for compensation at higher rates (but not in 
excess of rates prevailing in the private sector), if the Director 
determines that compensation at higher rates is necessary in order to 
recruit and retain competent personnel.

(h) Expenses

    All expenses of a conservatorship pursuant to this section 
(including compensation pursuant to subsection (f) of this section) 
shall be paid by the enterprise under conservatorship and shall be 
secured by a lien on the enterprise, which shall have priority over any 
other lien.

(i) Conflicts of interest and financial disclosure

    A conservator shall be subject to any laws and regulations relating 
to conflicts of interest and financial disclosure that apply to 
employees of the Office.

(Pub. L. 102-550, title XIII, Sec. 1369A, Oct. 28, 1992, 106 Stat. 
3983.)



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