§192 — Title 12 Banks and Banking | U.S. Code

Summary

When the Comptroller of the Currency decides an association is in default, he may immediately appoint a receiver and require a bond or other security. The receiver, under the Comptroller’s direction, must take control of the association’s books, records, and all assets, collect its debts and claims, and—if a court of record with proper authority orders it—sell or settle bad or doubtful debts and sell real and personal property. The receiver must turn over all money to the Treasurer of the United States under the Comptroller’s control and report his actions to the Comptroller. The Comptroller may also deposit that money in a government depository or in a state or national bank near the insolvent association. If he does, the depositary must place United States bonds or other acceptable securities with the Treasurer for safekeeping and prompt payment. No security is needed for amounts that are insured under section 12B of the Federal Reserve Act. The depositary must pay interest at the rate the Comptroller sets, but not less than 2 percent per year on the average monthly deposits.

Title 12, §192

Banks and Banking — Source: USLM XML via OLRC

On becoming satisfied, as specified in section 131 and 132 11 See References in Text note below. of this title, that any association is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of him such bond and security as he deems proper. Such receiver, under the direction of the Comptroller, shall take possession of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like order, may sell all the real and personal property of such association, on such terms as the court shall direct. Such receiver shall pay over all money so made to the Treasurer of the United States, subject to the order of the Comptroller, and also make report to the Comptroller of all his acts and proceedings. Provided, That the Comptroller may, if he deems proper, deposit any of the money so made in any regular Government depositary, or in any State or national bank either of the city or town in which the insolvent bank was located, or of a city or town as adjacent thereto as practicable; if such deposit is made he shall require the depositary to deposit United States bonds or other satisfactory securities with the Treasurer of the United States for the safekeeping and prompt payment of the money so deposited: Provided, That no security in the form of deposit of United States bonds, or otherwise, shall be required in the case of such parts of the deposits as are insured under section 12B of the Federal Reserve Act, as amended. Such depositary shall pay upon such money interest at such rate as the Comptroller may prescribe, not less, however, than 2 per centum per annum upon the average monthly amount of such deposits.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 131 and 132 of this title, referred to in text, were repealed by Pub. L. 103–325, title VI, § 602(e)(14), (15), Sept. 23, 1994, 108 Stat. 2292. section 12B of the Federal Reserve Act, as amended, referred to in text, formerly classified to section 264 of this title, has been withdrawn from the Federal Reserve Act and incorporated in the Federal Deposit Insurance Act which is classified generally to chapter 16 (§ 1811 et seq.) of this title. Codification R.S. § 5234 derived from act June 3, 1864, ch. 106, § 50, 13 Stat. 114, which was part of the National Bank Act. See section 38 of this title.

Amendments

1994—Pub. L. 103–325 struck out “has refused to pay its circulating notes as therein mentioned, and” before “is in default”. 1959—Pub. L. 86–230 struck out provisions which required receiver to enforce the personal liability of shareholders. 1935—Act Aug. 23, 1935, inserted second proviso in second par.

Statutory Notes and Related Subsidiaries

Application to District of ColumbiaProvisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. Interest on DepositsSo much of existing law requiring the payment of interest with respect to any funds deposited by the United States or by any public instrumentality, agency, or officer thereof, as is inconsistent with former section 371a, section 371b, 374, 374a, and 461, former sections 462 to 465, and section 466 of this title, repealed, see former section 371a of this title.

§192 Default in payment of circulating notes