§ 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.)