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Can you summarize NERS 8-703?
BANKS AND BANKING > Insolvent banks; appointment of Federal Deposit Insurance Corporation as receiver or liquidator.
Short Summary
This legal provision authorizes the Federal Deposit Insurance Corporation (FDIC) to act as a receiver or liquidator for banking institutions that have closed due to their inability to meet depositor demands. The FDIC can accept the appointment as receiver or liquidator from the appropriate state authority. In such cases, the FDIC will possess all the powers and privileges provided by state laws for a receiver or liquidator of a banking institution, including the rights and duties towards depositors and other creditors. However, the FDIC’s powers, privileges, and duties may be subject to the provisions of subsection (1) of section 12B of the Federal Reserve Act, as amended. This provision clarifies that when the FDIC acts as a receiver for a state-chartered banking institution, its actions regarding the rights and obligations of depositors, creditors, or stockholders are governed by state law.
Whom does it apply to?
Banking institutions whose deposits are insured by the Federal Deposit Insurance Corporation
What does it govern?
Insolvent banks; appointment of Federal Deposit Insurance Corporation as receiver or liquidator
What are exemptions?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
Nebraska