§5381 Definitions

Summary

Gives plain meanings for words used in this part of the law and tells how to decide what counts as a financial company. Administrative expenses of the receiver — costs the Corporation pays to shut down a failed covered financial company; Bankruptcy Code — title 11 of the U.S. Code; Bridge financial company — a new company the Corporation can set up to keep things running during a resolution; Claim — any right to be paid; Company — same basic meaning as in another law, and includes companies mostly owned by the U.S. or a State; Court — the U.S. District Court for the District of Columbia unless context says otherwise; Covered broker or dealer — a covered financial company that is a registered broker-dealer and a SIPC member; Covered financial company — a financial company the Corporation has chosen to resolve, not an insured bank; Covered subsidiary — a subsidiary of a covered financial company, except insured banks, insurers, or covered brokers/dealers; Definitions for brokers/dealers — terms like customer, customer name securities, customer property, and net equity mean what they do under securities law; Financial company — a company organized under federal or state law that is a bank holding company, a nonbank company supervised by the Federal Reserve, a company mainly doing financial activities as the Fed defines, or a subsidiary of such a company, with certain exclusions; Fund — the Orderly Liquidation Fund; Insurance company — an entity that sells insurance, is regulated by a state, and is covered by state insolvency law; Nonbank financial company and nonbank financial company supervised by the Board — mean what other parts of the law say; SIPC — Securities Investor Protection Corporation. A company is not considered “predominantly engaged” in financial activities for these rules unless at least 85 percent of its consolidated revenue comes from those activities. The Corporation, working with the Secretary, will make the detailed rule, and income from owning a bank counts toward that 85 percent.