Title 12 — Banks and BankingRelease 119-73
§5394 Prohibition on taxpayer funding
Title 12 › Chapter CHAPTER 53— - WALL STREET REFORM AND CONSUMER PROTECTION › Subchapter SUBCHAPTER II— - ORDERLY LIQUIDATION AUTHORITY › § 5394
Summary
If a financial company is taken into receivership under this law, it must be closed and its assets sold, and the costs must come from those assets or fees on the financial industry; taxpayers do not pay any losses.
Full Legal Text
Title 12, §5394
Banks and Banking — Source: USLM XML via OLRC
(a)All financial companies put into receivership under this subchapter shall be liquidated. No taxpayer funds shall be used to prevent the liquidation of any financial company under this subchapter.
(b)All funds expended in the liquidation of a financial company under this subchapter shall be recovered from the disposition of assets of such financial company, or shall be the responsibility of the financial sector, through assessments.
(c)Taxpayers shall bear no losses from the exercise of any authority under this subchapter.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
This subchapter, referred to in text, was in the original “this title”, meaning title II of Pub. L. 111–203, July 21, 2010, 124 Stat. 1442, which is classified principally to this subchapter. For complete classification of title II to the Code, see Tables.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 5394
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73