12 USC 2279cc - Conservatorship; liquidation; receivership

U.S Code last checked for updates: May 04, 2024

§ 2279cc.

Conservatorship; liquidation; receivership

(a)

Voluntary liquidation

(b)

Involuntary liquidation

(1)

In general

(2)

Application

In applying section 2183(b) of this title to the Corporation under paragraph (1)—

(A)

the Corporation shall also be considered insolvent if the Corporation is unable to pay its debts as they fall due in the ordinary course of business;

(B)

a conservator may also be appointed for the Corporation if the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; and

(C)

a receiver may also be appointed for the Corporation if—

(i)

(I)

the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; or

(II)

the Corporation is classified under section 2279bb–4 of this title as within level III or IV and the alternative actions available under part B are not satisfactory; and

(ii)

the Farm Credit Administration determines that the appointment of a conservator would not be appropriate.

(3)

No effect on supervisory actions

(c)

Appointment of conservator or receiver

(1)

Qualifications

Notwithstanding section 2183(b) of this title, if a conservator or receiver is appointed for the Corporation, the conservator or receiver shall be—

(A)

the Farm Credit Administration or any other governmental entity or employee, including the Farm Credit System Insurance Corporation; or

(B)

any person that—

(i)

has no claim against, or financial interest in, the Corporation or other basis for a conflict of interest as the conservator or receiver; and

(ii)

has the financial and management expertise necessary to direct the operations and affairs of the Corporation and, if necessary, to liquidate the Corporation.

(2)

Compensation

(A)

In general

(B)

Limit on compensation

(C)

Contractual arrangements

(3)

Expenses

A valid claim for expenses of the conservatorship or receivership (including compensation under paragraph (2)) and a valid claim with respect to a loan made under subsection (f) shall—

(A)

be paid by the conservator or receiver from funds of the Corporation before any other valid claim against the Corporation; and

(B)

may be secured by a lien, on such property of the Corporation as the conservator or receiver may determine, that shall have priority over any other lien.

(4)

Liability

(5)

Indemnification

(d)

Judicial review of appointment

(1)

In general

(2)

Stay of other actions

(e)

General powers of conservator or receiver

(f)

Borrowings for working capital

(1)

In general

(2)

Working capital from Farm Credit banks

(g)

Agreements against interests of conservator or receiver

No agreement that tends to diminish or defeat the right, title, or interest of the conservator or receiver for the Corporation in any asset acquired by the conservator or receiver as conservator or receiver for the Corporation shall be valid against the conservator or receiver unless the agreement—

(1)

is in writing;

(2)

is executed by the Corporation and any person claiming an adverse interest under the agreement, including the obligor, contemporaneously with the acquisition of the asset by the Corporation;

(3)

is approved by the Board or an appropriate committee of the Board, which approval shall be reflected in the minutes of the Board or committee; and

(4)

has been, continuously, from the time of the agreement’s execution, an official record of the Corporation.

(h)

Report to Congress

(i)

Termination of authorities

(1)

Corporation

(2)

Oversight

(Pub. L. 92–181, title VIII, § 8.41, as added Pub. L. 104–105, title I, § 118, Feb. 10, 1996, 110 Stat. 168.)

cite as: 12 USC 2279cc