FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
SEC. 12. 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.
[Codified to 12 U.S.C. 1822(a)]
[Source: Section 2[12(a)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 887), effective September 21, 1950, as amended by
section 6(c)(23) of the Act of September 17, 1978 (Pub. L. No. 95--369;
92 Stat. 619), effective September 17, 1978; section 113(l) of title I
of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1474),
effective October 15, 1982; and section 216(2) of title II of the Act
of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 254), effective
August 9, 1989]
(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 depository institution or
by an insured depository institution in which a transferred deposit has
been made available shall discharge the Corporation and such new
depository institution 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.
[Codified to 12 U.S.C. 1822(b)]
[Source: Section 2[12(b)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 887), effective September 21, 1950, as amended by
sections 201(a)(1) and 216(1) of title II of the Act of August 9, 1989
(Pub. L. No. 101--73; 103 Stat. 187 and 254, respectively), effective
August 9, 1989; section 1604(b)(1)(C) of title VII of the Act of July
30, 2008 (Pub. L. No. 110--289; 122 Stat. 2829), effective July 30,
2008]
(c) Recognition of Claimant Not on Depository Institution
Records.--Except as otherwise prescribed by the Board of Directors,
neither the Corporation nor such new depository institution 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.
[Codified to 12 U.S.C. 1822(c)]
[Source: Section 2[12(c)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 887), effective September 21, 1950, as amended by
sections 201(a)(1) and 216(1) of title II of the Act of August 9, 1989
(Pub. L. No. 101--73; 103 Stat. 187 and 254, respectively), effective
August 9, 1989; section 1604(b)(1)(C) of title VII of the Act of July
30, 2008 (Pub. L. No. 110--289; 122 Stat. 2829), effective July 30,
2008]
(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.
[Codified to 12 U.S.C. 1822(d)]
[Source: Section 2[12(d)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 888), effective September 21, 1950, as amended by
section 216(1) and (3) of title II of the Act of August 9, 1989 (Pub.
L. No. 101--73; 103 Stat. 254), effective August 9,
1989]
(e) Disposition of Unclaimed Deposits.--
(A) FIRST NOTICE.--Within 30 days after the initiation
of the payment of insured deposits under section 11(f), 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 11(f)--
(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 11(g)(1).
(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 11(g)(1).
(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 11(f)(1);
(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.
[Codified to 12 U.S.C. 1822(e)]
[Source: Section 2[12(e)] of the Act of September 21,
1950 (Pub. L. No. 797; 64 Stat. 888), effective September 21, 1950, as
amended by sections 201(a)(1) and 216(1) of title II of the Act of
August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and 254,
respectively), effective August 9, 1989; section 1 of the Act of June
28, 1993 (Pub. L. No. 103--44; 107 Stat. 220), effective June 28,
1993]
(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, United States Code.
(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, United States
Code and this Act. 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, United States Code, shall be deemed to be a
public official for purposes of section 201 of title 18, United States
Code.
(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, United States
Code, 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, United States
Code, governing conflicts of interest, ethical responsibilities, and
the use of confidential information consistent with the goals and
purposes of titles 18 and 41, United States Code. 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 the Deposit Insurance Fund or
any predecessor deposit insurance fund;
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.
[Codified to 12 U.S.C. 1822(f)]
[Source: Section 2[12(f)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 888), effective September 21, 1950, as added by
section 19(a) of the Act of December 17, 1993 (Pub. L. No. 103--204;
107 Stat. 2402), effective June 17, 1994; as amended by section
4(b)(1), of the Act of August 6, 1996 (Pub. L. No. 104-179; 110 Stat.
1567), effective August 6, 1996; section 8(a)(18) of the Act of
February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3613), effective
date shall take effect on the day of the merger of the Bank Insurance
Fund and the Savings Association Insurance Fund pursuant to the Federal
Deposit Insurance Reform Act of 2005]
NOTES
Derivation. Section 12 derives from section 12B(m) of the
Federal Reserve Act, as added by section 101[12B(m)] of title I of
the Act of August 23, 1935 (Pub. L. No. 305; 49 Stat. 697), effective
August 23, 1935. By section 1 of the Act of September 21, 1950, section
12B of the Federal Reserve Act was withdrawn as a part of that Act and
was made a separate act known as the "Federal Deposit Insurance
Act."
Effective date of section 12(e). Section 2 of the Act of
June 28, 1993 (Pub. L. No. 103--44; 107 Stat. 220), which amended
section 12(e), provides as follows:
SEC. 2. EFFECTIVE DATE.
(a) In General.--The amendments made by section
1 of this Act 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 after the date of
enactment of this Act.
(b) Special Rule for Receiverships in
Progress.--Section 12(e) of the Federal Deposit Insurance Act as in
effect on the day before the date of enactment of this Act 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, 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.
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