12 U.S.C. § 206 — Conservator; powers and duties

submitted 93 years ago by ch. 1 to r/title-12-BANKS-AND-BANKING · 284 words · no verdicts yet

in plain englishAI-generated · not legal advice

A conservator running a national bank gets all the powers of its shareholders, directors, and officers, unless the Comptroller limits them. The Comptroller sets the conservator's pay and can order it to release money to depositors and creditors. The bank pays the conservator's expenses, which come before any other claim on the bank.

(a) General powers. A conservator has all the powers that the bank's shareholders, directors, and officers would have, and may run the bank under its own name — unless the Comptroller limits the conservator's authority in the order appointing them. (b) Subject to rules of Comptroller. The conservator must follow the Comptroller's rules, regulations, and orders. Except where those rules or section 209 of this title say otherwise, the conservator has the same rights and privileges, and is bound by the same duties, restrictions, penalties, conditions, and limits, as a national bank's directors, officers, or employees. (c) Payment of depositors and creditors. The Comptroller can order the conservator to set aside money and make it available for depositors to withdraw and for other creditors to be paid, whenever the Comptroller believes it's safe to do so. Depositors and creditors in the same position must all be treated the same way. (d) Compensation of conservator and employees. The conservator and the professional staff hired to help are paid no more than similar federal government employees, unless the Comptroller of the Currency decides higher pay (but not more than private-sector rates) is needed to hire and keep good people. (e) Expenses. The bank pays all the conservatorship's expenses. This creates a lien on the bank that comes ahead of any other lien.

the actual law source: uscode.house.gov ↗public domain

(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 1 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 otherwise specifically provided in such rules, regulations, or orders or in section 209 of this title, shall have the same rights and privileges and be subject to the same duties, restrictions, penalties, conditions, and limitations as apply to directors, officers, or employees of a national bank.

The Comptroller may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors such amounts as in the opinion of the Comptroller may safely be used for that purpose. All depositors and creditors who are similarly situated shall be treated in the same manner.

(d) Compensation of conservator and employees

The conservator and professional employees appointed to represent or assist the conservator shall not be paid amounts greater than are payable to employees of the Federal Government for similar services, except that the Comptroller of the Currency may authorize payment at higher rates (but not in excess of rates prevailing in the private sector), if the Comptroller determines that paying such higher rates is necessary in order to recruit and retain competent personnel.

(e) Expenses

All expenses of any such conservatorship shall be paid by the bank and shall be a lien upon the bank which shall be prior to any other lien.

Source credit: (Mar. 9, 1933, ch. 1, title II, § 206, 48 Stat. 3; Pub. L. 101–73, title VIII, § 805, Aug. 9, 1989, 103 Stat. 445.)

history & why it existsrecord from the source credit

1933Enacted · Act of Mar. 9, 1933, ch. 1 · 48 Stat. 3
1989Amended · Pub. L. 101-73 · 103 Stat. 445

A history note hasn’t been published yet. The record shows enactment by ch. 1 on 1933-03-09.

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