Title 12, Banks and BankingRelease 119-110
§209 Liability Protection
Title 12 › CHAPTER 2 — NATIONAL BANKS › SUBCHAPTER XIV — BANK CONSERVATION ACT › § 209
Summary
If a federal agency or a government employee is the conservator, chapters 161 and 171 of title 28 decide their legal liability for actions taken while doing that job. If the conservator is not federal, they are generally not liable for damages for actions taken while serving unless a court finds gross negligence or intentional wrongful conduct. The Comptroller can agree to cover costs or protect the conservator on whatever terms the Comptroller chooses.
Full Legal Text
Title 12, §209
Banks and Banking, Source: USLM XML via OLRC
(a)Federal agency and employees
In any case in which the conservator is a Federal agency or an employee of the Government, the provisions of chapters 161 and 171 of title 28 shall apply with respect to such conservator’s liability for acts or omissions performed pursuant to and in the course of the duties and responsibilities of the conservatorship.
(b)Other conservators
In any case where the conservator is not a conservator described in subsection (a), the conservator shall not be liable for damages in tort or otherwise for acts or omissions performed pursuant to and in the course of the duties and responsibilities of the conservatorship, unless such acts or omissions constitute gross negligence, including any similar conduct or any form of intentional tortious conduct, as determined by a court.
(c)Indemnification
The Comptroller shall have authority to indemnify the conservator on such terms as the Comptroller deems proper.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: “Conservators appointed pursuant to the provisions of this subchapter shall be subject to the provisions of and to the penalties prescribed by section 334, 656, and 1005 of title 18; and section 202, 216, 281, 431, 432, and 433 of title 18, in so far as applicable, are extended to apply to contracts, agreements, proceedings, dealings, claims and controversies by or with any such conservator or the Comptroller of the Currency under the provisions of this subchapter.” 1954—Act Sept. 3, 1954, corrected references to title 18.
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.
Reference
Citations & Metadata
Citation
12 U.S.C. § 209
Title 12, Banks and Banking
Last Updated
Sep 23, 2026
Release point: 119-110