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United States Code (Last Updated: May 24, 2014) |
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Title 12. BANKS AND BANKING |
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Chapter 14. FEDERAL CREDIT UNIONS |
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SubChapter II. SHARE INSURANCE |
§ 1787. Payment of insurance
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(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. (K) Exemption from criminal prosecution The Administration shall be exempt from all prosecution by the United States or any State, county, municipality, or local authority for any criminal offense arising under Federal, State, county, municipal, or local law, which was allegedly committed by a credit union, or persons acting on behalf of a credit union, prior to the appointment of the Administration as liquidating agent.
(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 (i) In general Except as provided in clause (ii), 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.
(ii) Old records Notwithstanding clause (i) the Board may destroy records of an insured credit union which are at least 10 years old as of the date on which the Board is appointed as liquidating agent of such credit union in accordance with clause (i) at any time after such appointment is final, without regard to the 6-year period of limitation contained in clause (i).
(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; and (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 paragraphs (9) and (10) 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 such person has to cause the termination, liquidation, or acceleration 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 agreement or arrangement or other credit enhancement related to 1 or more qualified financial contracts described in clause (i); shall be substituted for $100,000 wherever such term appears in such section)” 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. (4) Coverage for certain employee benefit plan deposits (A) Pass-through insurance The Administration shall provide pass-through share insurance for the deposits or shares of any employee benefit plan.
(B) Prohibition on acceptance of deposits An insured credit union that is not well capitalized or adequately capitalized may not accept employee benefit plan deposits.
(C) Definitions For purposes of this paragraph, the following definitions shall apply: (i) Capital standards The terms “well capitalized” and “adequately capitalized” have the same meanings as in section 1790d(c) of this title.
(ii) Employee benefit plan The term “employee benefit plan”— (I) has the meaning given to such term in section 1002(3) of title 29; (II) includes any plan described in section 401(d) of title 26; and (III) includes any eligible deferred compensation plan described in section 457 of title 26. (iii) Pass-through share insurance The term “pass-through share insurance” means, with respect to an employee benefit plan, insurance coverage based on the interest of each participant, in accordance with regulations issued by the Administration.
(D) Rule of construction No provision of this paragraph shall be construed as authorizing an insured credit union to accept the deposits of an employee benefit plan in an amount greater than such credit union is authorized to accept under any other provision of Federal or State law.
(5) Standard maximum share insurance amount defined For purposes of this chapter, the term “standard maximum share insurance amount” means $250,000, adjusted as provided under section 1821(a)(1)(F) of this title.
(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.
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.
The Securities Exchange Act of 1934, referred to in subsec. (c)(8)(D)(v)(I), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. Section 3(a)(47) of the Act is classified to section 78c of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.
The Gramm-Leach-Bliley Act, referred to in subsec. (c)(8)(D)(vi), (15), is Pub. L. 106–102,
The Legal Certainty for Bank Products Act of 2000, referred to in subsec. (c)(8)(D)(vi), (15), is title IV of H.R. 5660, as enacted by Pub. L. 106–554, § 1(a)(5),
The Commodity Exchange Act, referred to in subsec. (c)(8)(D)(vi), (15), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.
For definition of Canal Zone, referred to in subsec. (k)(2)(B)(iv), see section 3602(b) of Title 22, Foreign Relations and Intercourse.
Amendments
2010—Subsec. (k)(1)(A). Pub. L. 111–203, § 343(b)(3)(A), struck out cl. (i) designation and heading, substituted “Subject to the provisions of paragraph (2), the net amount” for “Subject to clause (ii) and the provisions of paragraph (2), the net amount”, and struck out cls. (ii) and (iii) which related to insurance for noninterest-bearing transaction accounts and defined “noninterest-bearing transaction account”, respectively.
Pub. L. 111–203, § 343(b)(1)(A), designated existing provisions as cl. (i), inserted heading, substituted “Subject to clause (ii) and the provisions of paragraph (2), the net amount” for “Subject to the provisions of paragraph (2), the net amount”, and added cls. (ii) and (iii).
Subsec. (k)(1)(B). Pub. L. 111–203, § 343(b)(3)(B), substituted “subparagraph (A)” for “subparagraph (A)(i)”.
Pub. L. 111–203, § 343(b)(1)(B), substituted “subparagraph (A)(i)” for “subparagraph (A)”.
Subsec. (k)(5). Pub. L. 111–203, § 335(b), substituted “$250,000” for “$100,000”.
2008—Subsec. (c)(10)(C)(i). Pub. L. 110–289 substituted “bridge depository institution” for “bridge bank”.
2006—Subsec. (b)(2)(K). Pub. L. 109–351, § 720(b), added subpar. (K).
Subsec. (b)(15)(D). Pub. L. 109–351, § 722(b), designated existing provisions as cl. (i), inserted cl. heading, substituted “Except as provided in clause (ii), after the end of the 6-year period” for “After the end of the 6-year period”, and added cl. (ii).
Subsec. (c)(5)(B)(i)(I). Pub. L. 109–351, § 726(21), inserted “and” after semicolon.
Subsec. (c)(8)(D)(ii)(I). Pub. L. 109–390, § 2(a)(2)(A), substituted “a mortgage loan,” for “a mortgage loan, or” after “certificate of deposit,” and inserted before semicolon at end “(whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in clause (v))”.
Subsec. (c)(8)(D)(ii)(IV). Pub. L. 109–390, § 2(a)(2)(B), inserted “(including by novation)” after “the guarantee” and “(whether or not such settlement is in connection with any agreement or transaction referred to in subclauses (I) through (XII) (other than subclause (II))” before semicolon at end.
Subsec. (c)(8)(D)(ii)(VI) to (VIII). Pub. L. 109–390, § 2(a)(2)(D), (E), added subcls. (VI) and (VII) and redesignated former subcl. (VI) as (VIII). Former subcl. (VIII) redesignated (X).
Subsec. (c)(8)(D)(ii)(IX). Pub. L. 109–390, § 2(a)(2)(D), redesignated subcl. (VII) as (IX). Former subcl. (IX) redesignated (XI).
Pub. L. 109–390, § 2(a)(2)(C), substituted “(VIII), (IX), or (X)” for “or (VIII)” in two places.
Subsec. (c)(8)(D)(ii)(X) to (XII). Pub. L. 109–390, § 2(a)(2)(D), redesignated subcls. (VIII) to (X) as (X) to (XII), respectively.
Subsec. (c)(8)(D)(iv)(I). Pub. L. 109–390, § 2(b)(2), substituted “or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in clause (v))” for “transaction, reverse repurchase transaction”.
Subsec. (c)(8)(D)(vi). Pub. L. 109–390, § 2(c)(2)(C), substituted in concluding provisions “the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act” for “the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Investor Protection Act of 1970, the Commodity Exchange Act, the Gramm-Leach-Bliley Act, and the Legal Certainty for Bank Products Act of 2000”.
Subsec. (c)(8)(D)(vi)(I). Pub. L. 109–390, § 2(c)(2)(A), substituted “, precious metals, or other commodity” for “or precious metals” and “weather swap, option, future, or forward agreement; an emissions swap, option, future, or forward agreement; or an inflation swap, option, future, or forward agreement” for “or a weather swap, weather derivative, or weather option”.
Subsec. (c)(8)(D)(vi)(II). Pub. L. 109–390, § 2(c)(2)(B), inserted “or other derivatives” after “dealings in the swap” and substituted “future, option, or spot transaction” for “future, or option”.
Subsec. (c)(8)(D)(ix). Pub. L. 109–390, § 3(b), added cl. (ix).
Subsec. (c)(8)(G)(ii), (iii). Pub. L. 109–390, § 6(b), added cls. (ii) and (iii) and struck out former cl. (ii) which defined walkaway clause.
Subsec. (c)(13)(C). Pub. L. 109–351, § 718(b), which directed addition of subpar. (C) to subsec. (c)(12), was executed to par. (13) to reflect the probable intent of Congress because par. (12) does not contain subpars. and par. (12) was redesignated (13) by Pub. L. 109–8, § 904(b)(1). See 2005 Amendment note below.
Subsec. (d)(3). Pub. L. 109–351, § 721(b), added par. (3) and struck out former par. (3) which related to resolution of dispute and adjudication of claims.
Subsec. (d)(3)(A). Pub. L. 109–351, § 726(22), which directed substitution of “with” for “to” in heading, could not be executed because there is no subpar. (A) heading after the amendment by Pub. L. 109–351, § 721(b). See above.
Subsec. (d)(4), (5). Pub. L. 109–351, § 721(b), added par. (4) and struck out former pars. (4) and (5) which related to review of the Board’s final determination and the statute of limitations.
Subsec. (f)(3)(A). Pub. L. 109–351, § 726(23), substituted “category of claimants.” for “category or claimants.” in last sentence.
Subsec. (k). Pub. L. 109–173, § 2(d)(1)(A), inserted subsec. heading.
Subsec. (k)(1). Pub. L. 109–173, § 2(d)(1)(A), added par. (1) and struck out former par. (1) which read as follows: “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.”
Subsec. (k)(2). Pub. L. 109–173, § 2(d)(1)(B)(ii)–(iv), inserted par. heading, added subpar. (A), substituted subpar. (B) designation, heading, and introductory provisions for former subpar. (A) designation and introductory provisions which read “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—”, redesignated former subpar. (B) as (C), inserted heading, and substituted “government depositor or member” for “depositor or member referred to in subparagraph (A)”.
Subsec. (k)(2)(A). Pub. L. 109–173, § 2(d)(1)(B)(i), substituted period for semicolon at end of cl. (v), realigned margins of cls. (i) to (v), and struck out concluding provisions which read as follows: “his account shall be insured in an amount not to exceed $100,000 per account.”
Subsec. (k)(3). Pub. L. 109–173, § 2(d)(2), substituted “ ‘$250,000 (which amount shall be subject to inflation adjustments as provided under section 1821(a)(1)(F) of this title, except that $250,000 shall be substituted for $100,000 wherever such term appears in such section)’ ” for “$100,000”.
Subsec. (k)(4), (5). Pub. L. 109–173, § 2(d)(1)(C), added pars. (4) and (5).
2005—Subsec. (c)(8)(A). Pub. L. 109–8, § 901(h)(2)(A)(i), substituted “paragraphs (9) and (10)” for “paragraph (12)” in introductory provisions.
Subsec. (c)(8)(A)(i). Pub. L. 109–8, § 901(h)(2)(A)(ii), substituted “such person has to cause the termination, liquidation, or acceleration” for “to cause the termination or liquidation”.
Subsec. (c)(8)(A)(ii). Pub. L. 109–8, § 901(h)(2)(A)(iii), added cl. (ii) and struck out former cl. (ii) which read as follows: “any right under any security arrangement relating to any contract or agreement described in clause (i); or”.
Subsec. (c)(8)(C)(i). Pub. L. 109–8, § 901(i)(2), inserted “section 91 of this title or any other Federal or State law relating to the avoidance of preferential or fraudulent transfers,” before “the Board”.
Subsec. (c)(8)(D). Pub. L. 109–8, § 901(a)(2)(A), substituted “subsection, the following definitions shall apply:” for “subsection—” in introductory provisions.
Subsec. (c)(8)(D)(i). Pub. L. 109–8, § 901(a)(2)(B), inserted “, resolution, or order” after “any similar agreement that the Board determines by regulation”.
Subsec. (c)(8)(D)(ii). Pub. L. 109–8, § 901(b)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “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.”
Subsec. (c)(8)(D)(iii). Pub. L. 109–8, § 901(c)(2), amended heading and text of cl. (iii) generally. Prior to amendment, text read as follows: “The term ‘forward contract’ has the meaning given to such term in section 101 of title 11.”
Subsec. (c)(8)(D)(iv). Pub. L. 109–8, § 901(d)(2), amended heading and text of cl. (iv) generally. Prior to amendment, text read as follows: “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, any mortgage loan, and any interest in any mortgage loan; 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.”
Subsec. (c)(8)(D)(v). Pub. L. 109–8, § 901(e)(2), amended heading and text of cl. (v) generally. Prior to amendment, text read as follows: “The term ‘transfer’ has the meaning given to such term in section 101 of title 11.”
Subsec. (c)(8)(D)(vi). Pub. L. 109–8, § 901(f)(2), added cl. (vi).
Subsec. (c)(8)(D)(vii). Pub. L. 109–8, § 905(b), added cl. (vii).
Subsec. (c)(8)(D)(viii). Pub. L. 109–8, § 901(g)(2), added cl. (viii).
Subsec. (c)(8)(E). Pub. L. 109–8, § 902(b)(1)(A), substituted “other than subsections (b)(9) and (c)(10)” for “other than paragraph (12) of this subsection, subsection (b)(9)” in introductory provisions.
Subsec. (c)(8)(E)(ii). Pub. L. 109–8, § 901(h)(2)(B), added cl. (ii) and struck out former cl. (ii) which read as follows: “any right under any security arrangement relating to such qualified financial contracts; or”.
Subsec. (c)(8)(F), (G). Pub. L. 109–8, § 902(b)(1)(B), added subpars. (F) and (G).
Subsec. (c)(8)(H). Pub. L. 109–8, § 908(b), added subpar. (H).
Subsec. (c)(9). Pub. L. 109–8, § 903(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text related to the transfer of qualified financial contracts, claims, and property of a credit union in default.
Subsec. (c)(10)(A). Pub. L. 109–8, § 903(b)(2), substituted concluding provisions for former concluding provisions which read as follows: “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.”
Subsec. (c)(10)(B) to (D). Pub. L. 109–8, § 903(b)(3), added subpars. (B) and (C) and redesignated former subpar. (B) as (D).
Subsec. (c)(11). Pub. L. 109–8, § 904(b)(2), added par. (11). Former par. (11) redesignated (12).
Subsec. (c)(12). Pub. L. 109–8, § 904(b)(1), redesignated par. (11) as (12). Former par. (12) redesignated (13).
Subsec. (c)(12)(A). Pub. L. 109–8, § 902(b)(2), inserted “or the exercise of rights or powers by” after “the appointment of”.
Subsec. (c)(13), (14). Pub. L. 109–8, § 904(b)(1), redesignated pars. (12) and (13) as (13) and (14), respectively.
Subsec. (c)(15). Pub. L. 109–8, § 904(b)(3), added par. (15).
1998—Subsec. (a)(1)(A). Pub. L. 105–219, § 301(b)(2)(A), substituted “itself” for “himself”.
Subsec. (a)(3). Pub. L. 105–219, § 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, § 2521(a)(2), added subpars. (G) and (H). Former subpar. (G) redesignated (I).
Subsec. (b)(2)(I). Pub. L. 101–647, § 2534(b), added subpar. (I). Former subpar. (I) redesignated (J).
Pub. L. 101–647, § 2521(a)(2), redesignated subpar. (G) as (I).
Subsec. (b)(2)(J). Pub. L. 101–647, § 2534(b), redesignated subpar. (I) as (J).
Subsec. (b)(16). Pub. L. 101–647, § 2528(b), added par. (16).
Subsec. (q). Pub. L. 101–647, § 2526(b), added subsec. (q).
Subsec. (r). Pub. L. 101–647, § 2532(d), added subsec. (r).
1989—Subsec. (a)(2), (3). Pub. L. 101–73, § 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, § 1217(a)(3), (4), added subsec. (b) and redesignated former subsec. (b) as (j).
Subsec. (c). Pub. L. 101–73, § 1217(a)(3), (4), added subsec. (c) and redesignated former subsec. (c) as (k).
Subsec. (d). Pub. L. 101–73, § 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, § 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, § 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, § 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, § 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, § 1217(a)(3), redesignated former subsecs. (e) to (i) as (l) to (p), respectively.
1987—Subsec. (a)(1). Pub. L. 100–86, § 714(a), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (j). Pub. L. 100–86, § 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, § 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, §§ 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, § 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, §§ 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, § 101(c)(3), added par. (2).
Effective Date Of Amendment
Amendment by section 335(b) of Pub. L. 111–203 effective 1 day after
Pub. L. 111–203, title III, § 343(b)(2),
Pub. L. 111–203, title III, § 343(b)(3),
Amendment by Pub. L. 109–390 not applicable to any cases commenced under Title 11, Bankruptcy, or to appointments made under any Federal or State law, before
Amendment by Pub. L. 109–173 effective
Amendment by Pub. L. 109–8 effective 180 days after
Amendment by Pub. L. 103–394 effective
Amendment by Pub. L. 96–221 effective on
Miscellaneous
Pub. L. 96–221, title III, § 308(c)(2),
Effective Date Of Amendment
Amendment by Pub. L. 96–153 applicable only to claims arising after
Amendment by section 502(b) of Pub. L. 95–630 effective on expiration of 120 days after
Pub. L. 95–630, title XIV, § 1402,
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.
Pub. L. 93–495, title I, § 104(b), (c),
Miscellaneous
Subsec. (k)(5) of this section to apply with “$250,000” substituted for “$100,000” during period beginning on