12 U.S.C. § 2277a–6: Overpayment and…

Summary

The Corporation can refund any premium an insured System bank paid that was more than it owed. If a bank owes unpaid premiums, the Corporation can sue in court to get the money even if the bank did not file required certified statements. Any lawsuit to collect unpaid premiums or to recover an overpayment must start within 5 years after the right to the money arose. If a bank filed a false or fraudulent certified statement to avoid paying, the 5-year period does not start until the Corporation discovers the fraud. If a bank fails to file a required certified statement or to pay a required premium and does not fix the problem within 30 days after the Corporation sends written notice to a bank officer (the notice must cite this rule and say the bank failed), the bank will lose all rights, privileges, and franchises under this chapter. The Corporation can sue in the bank’s district to enforce this. Any director who took part in or agreed to the failure must pay any damages that result. These remedies are in addition to any other legal remedies.

Title 12, §2277a–6

Banks and Banking, Source: USLM XML via OLRC

(a)Overpayments

The Corporation may refund to any insured System bank any premium payment made by the bank exceeding the amount due the Corporation.

(b)Underpayments

(1)Recovery

The Corporation, in a suit brought at law or in equity in any court of competent jurisdiction, may recover from any insured System bank the amount of any unpaid premium lawfully payable by the bank to the Corporation, whether or not the bank has filed any certified statement under section 2277a–5 of this title, and whether or not suit has been brought to compel the bank to file any such statement.

(2)Limitation

Any action or proceeding for the recovery of any premium due the Corporation under paragraph (1), or for the recovery of any amount paid to the Corporation exceeding the amount due the Corporation, shall be brought within 5 years after the right accrued for which the claim is made. If an insured System bank has filed with the Corporation a false or fraudulent certified statement with the intent to evade, in whole or in part, the payment of a premium, the claim shall not be deemed to have accrued until the Corporation discovers that the certified statement is false or fraudulent.

(c)Failure to file statement or pay premium

(1)Forfeiture of rights

If any insured System bank fails to file any certified statement required to be filed by such bank under section 2277a–5 of this title or fails to pay any premium required to be paid by such bank under any provision of this part, and if the bank does not correct such failure within 30 days after the Corporation gives written notice to an officer of the bank, citing this subsection and stating that the bank has failed to so file or pay as required by law, all the rights, privileges, and franchises of the bank granted to it under this chapter shall be thereby forfeited.

(2)Enforcement

The Corporation may bring an action to enforce this subsection against any such bank in any court of competent jurisdiction for the judicial district in which the bank is located.

(3)Liability of directors

Every director who participated in or assented to a failure (described in paragraph (1)) shall be held personally liable for all consequential damages.

(d)Effect on other remedies

The remedies provided in subsections (b) and (c) shall not be construed as limiting any other remedies against any insured System bank, but shall be in addition thereto.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1988—Subsec. (b)(1). Pub. L. 100–399, § 302(g), struck out “made any report of condition required under section 2277a–4 of this title or” after “bank has” and “make any such report or” after “bank to”. Subsec. (b)(2). Pub. L. 100–399, § 302(h), substituted “bank has filed” for “bank has made or filed”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.

§2277a–6 Overpayment and Underpayment of Premiums; Remedies