§339a Resolution of Clearing Banks

Summary

The Board can appoint a conservator or receiver to take control of any uninsured State member bank that runs a multilateral clearing organization under section 4422. A conservator or receiver is a person who takes possession and runs the bank. That person has the same powers, duties, and limits as a conservator or receiver for a national bank. The Board has the same authority over that conservator or receiver and the bank as the Comptroller of the Currency has for national banks. The Board can also tell the conservator or receiver to file a bankruptcy case under title 11. If that happens, title 11 bankruptcy law applies instead of other federal or state insolvency rules.