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12 U.S.C. § 194Dividends on adjusted claims; distribution of assets

submitted 32 years ago by Pub. L. 103-325 to r/title-12-BANKS-AND-BANKING · 99 words · no verdicts yet

in plain englishAI-generated · not legal advice

The comptroller pays out money from a failed bank's assets to approved claims over time. Each new round of money collected leads to another round of payments. Whatever money is left after all claims are paid goes to the bank's shareholders.

From time to time, the comptroller pays out a fair share of the money the receiver has handed over, to everyone whose claim has been proven or decided by a court. As more of the failed bank's assets get turned into cash and given to the comptroller, the comptroller keeps paying out more shares to claims already proven or decided. Whatever money is left after that goes to the bank's shareholders, or their legal representatives, split up based on how much stock each of them held.
the actual law source: uscode.house.gov ↗public domain

From time to time, the comptroller shall make a ratable dividend of the money so paid over to him by such receiver on all such claims as may have been proved to his satisfaction or adjudicated in a court of competent jurisdiction, and, as the proceeds of the assets of such association are paid over to him, shall make further dividends on all claims previously proved or adjudicated; and the remainder of the proceeds, if any, shall be paid over to the shareholders of such association, or their legal representatives, in proportion to the stock by them respectively held.

Source credit: (R.S. § 5236; Pub. L. 103–325, title VI, § 602(g)(12), Sept. 23, 1994, 108 Stat. 2294.)

history & why it existsrecord from the source credit
  • 1994Enacted · Pub. L. 103-325 · 108 Stat. 2294

A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-325 on 1994-09-23.

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