12 U.S.C. § 5394: Prohibition on taxpayer…

Summary

Financial companies put into receivership under this subchapter must be wound down and liquidated. Taxpayer money cannot be used to stop or prevent that liquidation. Any money spent to carry out the liquidation must be recovered by selling the company’s assets or by charging the financial industry through assessments. Taxpayers must not suffer any losses from using these powers.

Title 12, §5394

Banks and Banking, Source: USLM XML via OLRC

(a)Liquidation required

All financial companies put into receivership under this subchapter shall be liquidated. No taxpayer funds shall be used to prevent the liquidation of any financial company under this subchapter.

(b)Recovery of funds

All funds expended in the liquidation of a financial company under this subchapter shall be recovered from the disposition of assets of such financial company, or shall be the responsibility of the financial sector, through assessments.

(c)No losses to taxpayers

Taxpayers shall bear no losses from the exercise of any authority under this subchapter.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subchapter, referred to in text, was in the original “this title”, meaning title II of Pub. L. 111–203, July 21, 2010, 124 Stat. 1442, which is classified principally to this subchapter. For complete classification of title II to the Code, see Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title.

§5394 Prohibition on Taxpayer Funding