BANK CONSERVATIO SEC. 201. [12 U.S.C. 201] This title n Conservation Act." SEC. 202. [12 U.S.C. 202] As used "bank" means (1) any national banking as nancial institution chartered or licensed subject to the supervision of the Comptro (2) any bank or trust company located in and operating under the supervision of th rency; the term "voluntary dissolution a transaction pursuant to section 5220 of t involves the assumption of the bank's i and the sale of the bank, or of control of cern; and the term "State" means any St sion of the United States, and the Canal Z SEC. 203. [12 U.S.C. 203] APPOINTMENT OF C (a) APPOINTMENT.-The Comptroller without prior notice or hearings, appoint be the Federal Deposit Insurance Corpor and control of a bank whenever the Ĉon determines that 1 or more of the grou 11(c)(5) of the Federal Deposit Insurance 4 (b) JUDICIAL REVIEW. (1) IN GENERAL.-Not later than appointment of a conservator pursu bank may bring an action in the Ur for the judicial district in which the is located, or in the United States D trict of Columbia, for an order requiri minate the appointment of the con upon the merits, shall dismiss such Comptroller to terminate the appoint The Comptroller's decision to appoin to this section shall be set aside on such decision was arbitrary, capriciou or otherwise not in accordance with la (2) STAY.-The conservator may action or proceeding to which the con may become a party be stayed for a after the appointment of the conser court shall grant such stay as to all p (3) ACTIONS AND ORDERS.-Excep this subsection, no court may take an moval of a conservator, or restrain, powers or functions of a conservator. 1So in law. Probably should be "take”. BANK CONSERVATION ACT SEC. 201. [12 U.S.C. 201] This title may be cited as the "Bank Conservation Act.” SEC. 202. [12 U.S.C. 202] As used in this title, the term "bank" means (1) any national banking association or any other financial institution chartered or licensed under Federal law and subject to the supervision of the Comptroller of the Currency, and (2) any bank or trust company located in the District of Columbia and operating under the supervision of the Comptroller of the Currency; the term "voluntary dissolution and liquidation" means a transaction pursuant to section 5220 of the Revised Statutes that involves the assumption of the bank's insured deposit liabilities and the sale of the bank, or of control of the bank, as a going concern; and the term "State" means any State, Territory, or possession of the United States, and the Canal Zone. SEC. 203. [12 U.S.C. 203] APPOINTMENT OF CONSERVATOR. (a) APPOINTMENT.-The Comptroller of the Currency may, without prior notice or hearings, appoint a conservator (which may be the Federal Deposit Insurance Corporation) to the possession and control of a bank whenever the Comptroller of the Currency determines that 1 or more of the grounds specified in section 11(c)(5) of the Federal Deposit Insurance Act exist. (b) JUDICIAL REVIEW. (1) IN GENERAL.-Not later than 20 days after the initial appointment of a conservator pursuant to this section, the bank may bring an action in the United States district court for the judicial district in which the home office of such bank is located, or in the United States District Court for the District of Columbia, for an order requiring the Comptroller to terminate the appointment of the conservator, and the court, upon the merits, shall dismiss such action or shall direct the Comptroller to terminate the appointment of such conservator. The Comptroller's decision to appoint a conservator pursuant to this section shall be set aside only if the court finds that such decision was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. (2) STAY.-The conservator may request that any judicial action or proceeding to which the conservator or the bank is or may become a party be stayed for a period of up to 45 days after the appointment of the conservator. Upon petition, the court shall grant such stay as to all parties. (3) ACTIONS AND ORDERS.-Except as otherwise provided in this subsection, no court may take any action regarding the removal of a conservator, or restrain, or affect the exercise of powers or functions of a conservator. A court, upon application 1So in law. Probably should be "take". by the Comptroller, shall have jurisdiction to enforce an order of the Comptroller relating to (A) the conservatorship conservatorship, or and the bank in (B) restraining or affecting the exercise of powers or functions of a conservator. (c) ADDITIONAL GROUNDS FOR APPOINTMENT.-In addition to the foregoing provisions, the Comptroller may appoint a conservator for a bank if (1) the bank, by an affirmative vote of a majority of its board of directors or by an affirmative vote of a majority of its shareholders, consents to such appointment, or (2) the Federal Deposit Insurance Corporation terminates the bank's status as an insured bank. The appointment of a conservator pursuant to this subsection shall not be subject to review. (d) EXCLUSIVE AUTHORITY.-The Comptroller shall have exclusive power and jurisdiction to appoint a conservator for a bank. Whenever the Comptroller appoints a conservator for any bank, the Comptroller may appoint the Federal Deposit Insurance Corporation conservator for such bank. The Federal Deposit Insurance Corporation, as such conservator, shall have all the powers granted under the Federal Deposit Insurance Act, and (when not inconsistent therewith) any other rights, powers, and privileges possessed by conservators of banks under this Act and any other provision of law. The Comptroller may also appoint another person as conservator, who shall be subject to the provisions of this Act. (e) REPLACEMENT OF CONSERVATOR.-The Comptroller may, without notice or hearing, replace a conservator with another conservator. Such replacement shall not affect the bank's right under subsection (b) to obtain judicial review of the Comptroller's original decision to appoint a conservator. SEC. 204. [12 U.S.C. 204] EXAMINATIONS. The Comptroller of the Currency (in consultation with the Board of Directors of the Federal Deposit Insurance Corporation when the Corporation is appointed conservator) is authorized to examine and supervise the bank in conservatorship as long as the bank continues to operate as a going concern. The Comptroller may use reports and other information provided by the Federal Deposit Insurance Corporation for this purpose. SEC. 205. [12 U.S.C. 205] TERMINATION OF CONSERVATORSHIP. (a) GENERAL RULE.-At any time the Comptroller becomes satisfied that it may safely be done and that it would be in the public interest, the Comptroller (with the agreement of the Board of Directors of the Federal Deposit Insurance Corporation when the Corporation has been appointed conservator) may (1) terminate the conservatorship and permit the involved bank to resume the transaction of its business subject to such terms, conditions, and limitations as the Comptroller may prescribe; or (2) terminate the conservatorship upon a sale, merger, consolidation, purchase and assumption, change in control, or voluntary dissolution and liquidation of the involved bank. (b) OTHER GROUNDS FOR TERMINATION.-The Comptroller also may terminate the conservatorship upon the appointment of a receiver pursuant to the first section of the Act of June 30, 1876 (12 U.S.C. 191). (c) ENFORCEMENT UNDER FEDERAL DEPOSIT INSURANCE ACT.Such terms, conditions, and limitations as may be prescribed under subsection (a)(1) shall be enforceable under the provisions of section 8(i) of the Federal Deposit Insurance Act, to the same extent as an order issued pursuant to section 8(b) of the Federal Deposit Insurance Act which has become final. The bank may bring an action in the United States district court for the judicial district in which the home office of such bank is located or in the United States District Court for the District of Columbia for an order requiring the Comptroller to terminate the order. An action for judicial review of the terms, conditions, and limitations may not be commenced later than 20 days from the date of the termination of the conservatorship or the imposition of the order, whichever is later. (d) ACTION UPON TERMINATION. (1) IN GENERAL.-Upon termination of the conservatorship under subsection (a)(2), the Federal Deposit Insurance Corporation, as conservator, or when another person is appointed conservator, such other person, shall conclude the affairs of the conservatorship in accordance with paragraph (2). (2)1 DEPOSIT AND DISTRIBUTION OF PROCEEDS.-(A) Within 180 days of the sale, merger, consolidation, purchase and assumption, change in control, or voluntary dissolution and liquidation, the conservator shall deposit all net proceeds received from the transaction, less any outstanding expenses of the conservatorship, with the United States district court for the judicial district in which the home office of such bank is located and shall cause notice to be published for three consecutive months and notify by mail all known and remaining creditors and shareholders. Within 60 days thereafter, any depositor, creditor, or other claimant of the bank, or any shareholder of the bank may bring an action in interpleader in that court for distribution of the proceeds. The district court shall distribute such funds equitably. If no such action is instituted within one year after the date the funds are deposited with the district court, title to such net proceeds shall revert to the United States and the district court shall remit the funds to the Treasury of the United States. (B) The conservator shall be deemed to have discharged all responsibility of the conservatorship upon the deposit of the proceeds with the district court and giving the required notifications. SEC. 206. [12 U.S.C. 206] CONSERVATOR; POWERS AND DUTIES. (a) GENERAL POWERS.-A conservator shall have all the powers of the shareholders, directors, and officers of the bank and may operate the bank in its own name unless the Comptroller in the order of appointment limits the conservator's authority. (b) SUBJECT TO RULES OF COMPTROLLER.-The conservator shall be subject to such rules, regulations, and orders as the Comptroller from time to time deems appropriate; and, except as other 1 Indentation so in law |