§1822 Corporation as Receiver

Summary

When the Corporation takes over a failed bank as its receiver, it does not have to post a bond. It may hire agents to help. The Corporation sets the fees and costs for running the receivership and can pay them from the money it collects. If the Corporation pays an insured deposit, that payment ends its liability the same way a payment by the failed bank would. If a deposit is moved to another insured bank, payment by that new bank also ends liability for both the Corporation and the new bank. The Corporation may refuse to recognize someone as an owner of part of a deposit if that person is not shown on the failed bank’s records and if recognizing them would raise the total insured amount. The Corporation can hold back part of a depositor’s insured money to cover any debt the depositor owes to the failed bank until that debt is decided or paid. Within 30 days after starting to pay insured deposits under section 1821(f), the Corporation must mail written notice telling depositors to claim their money from the Corporation or the bank that received the deposit. A second notice must be mailed 15 months later to those who did not reply. If a depositor does not claim a deposit within 18 months, the receiving bank must return it to the Corporation and the depositor loses rights against that bank. Except for deposits owned by the United States, the Corporation must give unclaimed deposits to the appropriate State as unclaimed property unless the State refuses. If the State gets the deposit and no one claims it within 10 years, the money goes back to the Corporation. United States deposits go to the Treasury. Defined terms: "transferee institution" — the bank that received a transferred deposit; "appropriate State" — the State where the notice was mailed (or where the failed bank’s main office is); "United States deposit" — a deposit shown to belong to the U.S. government. The Corporation is treated as an agency under title 18. People who work under contract and are directly supervised by Corporation officers are treated as employees for title 18, and others acting for the Corporation who are not federal employees are treated as public officials under section 201 of title 18. Officers, employees, and those contract workers treated as employees must follow ethics and conflict-of-interest rules from the Office of Government Ethics; the Board may add rules only with that Office’s agreement. The Board must write rules for other contractors about conflicts, ethics, and secrecy, and must set procedures to make sure anyone doing work for the Corporation meets minimum standards of skill, experience, honesty, and fitness. The Corporation must bar people who fail those standards from contracts or jobs. Offers and job applications must disclose any time in the past 5 years when the person or a company they control defaulted on a major obligation to an insured bank, plus other information the Board requires. The Corporation may reject or cancel contracts if someone hides important facts, becomes prohibited from working with the Corporation, or was subject to a final enforcement action by a federal banking agency. If the Corporation’s rules conflict with other agencies’ rules, people acting for the Corporation must follow the Corporation’s rules while working for it, except the Corporation’s rules cannot override the Office of Government Ethics unless that Office allows it.