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Title 12, Banks and BankingRelease 119-110

§203 Appointment of Conservator

Title 12 › CHAPTER 2 — NATIONAL BANKS › SUBCHAPTER XIV — BANK CONSERVATION ACT › § 203

Last updated Sep 22, 2026|Official source

Summary

The Comptroller of the Currency can take control of a bank and put a conservator in charge without warning or a hearing when the reasons listed in 12 U.S.C. 1821(c)(5) apply. The conservator can be the FDIC or another person the Comptroller picks. The Comptroller alone has the power to make or change that appointment and can replace a conservator without notice. The bank has 20 days after the first appointment to go to federal court where its main office is, or to the D.C. court, to ask that the conservator be removed. The court must either throw out the case or order the Comptroller to end the conservatorship. The court can only cancel the appointment if it finds the Comptroller acted without a reasonable basis, misused authority, or broke the law. The conservator can ask the court to pause related lawsuits for up to 45 days, and the court must grant that pause. If the bank’s board or shareholders agree, or if the FDIC ends the bank’s insured status, the Comptroller can also appoint a conservator and that choice cannot be reviewed. The FDIC conservator has the powers given by the Federal Deposit Insurance Act.

Full Legal Text

Title 12, §203

Banks and Banking, Source: USLM XML via OLRC

(a)Appointment
The Comptroller of the Currency may, without prior notice or hearings, appoint a conservator (which may be the Federal Deposit Insurance Corporation) to the possession and control of a bank whenever the Comptroller of the Currency determines that 1 or more of the grounds specified in section 11(c)(5) of the Federal Deposit Insurance Act [12 U.S.C. 1821(c)(5)] exist.
(b)Judicial review
(1)In general
Not later than 20 days after the initial appointment of a conservator pursuant to this section, the bank may bring an action in the United States district court for the judicial district in which the home office of such bank is located, or in the United States District Court for the District of Columbia, for an order requiring the Comptroller to terminate the appointment of the conservator, and the court, upon the merits, shall dismiss such action or shall direct the Comptroller to terminate the appointment of such conservator. The Comptroller’s decision to appoint a conservator pursuant to this section shall be set aside only if the court finds that such decision was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.
(2)Stay
The conservator may request that any judicial action or proceeding to which the conservator or the bank is or may become a party be stayed for a period of up to 45 days after the appointment of the conservator. Upon petition, the court shall grant such stay as to all parties.
(3)Actions and orders
Except as otherwise provided in this subsection, no court may take any action regarding the removal of a conservator, or restrain, or affect the exercise of powers or functions of a conservator. A court, upon application by the Comptroller, shall have jurisdiction to enforce an order of the Comptroller relating to—
(A)the conservatorship and the bank in conservatorship, or
(B)restraining or affecting the exercise of powers or functions of a conservator.
(c)Additional grounds for appointment
In addition to the foregoing provisions, the Comptroller may appoint a conservator for a bank if—
(1)the bank, by an affirmative vote of a majority of its board of directors or by an affirmative vote of a majority of its shareholders, consents to such appointment, or
(2)the Federal Deposit Insurance Corporation terminates the bank’s status as an insured bank.
The appointment of a conservator pursuant to this subsection shall not be subject to review.
(d)Exclusive authority
The Comptroller shall have exclusive power and jurisdiction to appoint a conservator for a bank. Whenever the Comptroller appoints a conservator for any bank, the Comptroller may appoint the Federal Deposit Insurance Corporation conservator for such bank. The Federal Deposit Insurance Corporation, as such conservator, shall have all the powers granted under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.], and (when not inconsistent therewith) any other rights, powers, and privileges possessed by conservators of banks under this Act and any other provision of law. The Comptroller may also appoint another person as conservator, who shall be subject to the provisions of this Act.
(e)Replacement of conservator
The Comptroller may, without notice or hearing, replace a conservator with another conservator. Such replacement shall not affect the bank’s right under subsection (b) to obtain judicial review of the Comptroller’s original decision to appoint a conservator.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Deposit Insurance Act, referred to in subsec. (d), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1811 of this title and Tables. This Act, referred to in subsec. (d), is act Mar. 9, 1933, ch. 1, 48 Stat. 1, popularly known as the Emergency Banking and Bank Conservation Act, which is classified to section 51a, 51b, 51c, 51d, 95, 201 to 212, 248, 347b, 347c, 347d, 445 of this title and to section 4305 of Title 50, War and National Defense, and classified as a note under section 4305 of Title 50. section 51d of this title was repealed by act June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208. For effect of the repeal on outstanding debentures held by banks, see

References in Text

note set out under section 51b–1 of this title.

Amendments

1991—Subsec. (a). Pub. L. 102–242 amended subsec. (a) generally, substituting present provisions for provisions which specified circumstances under which Comptroller could appoint conservator. 1989—Pub. L. 101–73 amended section generally, changing structure of section from a single unlettered paragraph to one consisting of subsections (a) to (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 1991 AmendmentAmendment by Pub. L. 102–242 effective 1 year after Dec. 19, 1991, see section 133(g) of Pub. L. 102–242, set out as a note under section 191 of this title.

Executive Documents

Exception as to

Transfer of Functions

Functions vested by any provision of law in Comptroller of the Currency, referred to in this section, not included in

Transfer of Functions

to Secretary of the Treasury, see note set out under section 1 of this title. Conservators of State BanksEx. Ord. No. 6080, Mar. 18, 1933, provided for appointment of conservators of State banks under certain

Regulations

.

Reference

Citations & Metadata

Citation

12 U.S.C. § 203

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110