---
kind: "range"
citation: "12 U.S.C. §§ 201–203"
title: "12"
from: "201"
to: "203"
count: 3
release: "119-102"
url: "https://uscodex.org/usc/12/201..203"
---

# §201. Short title


This subchapter may be cited as the “[Bank](/usc/12/202.md) Conservation Act.”


# §202. Definitions


As used in this subchapter, the term “bank” means any [national banking association](/usc/12/221a.md?p=a) or any other [financial institution](/usc/12/1715k.md?p=h-1-C) chartered or licensed under Federal law and subject to the supervision of the Comptroller of the Currency; the term “voluntary dissolution and liquidation” means a transaction pursuant to [section 181 of this title](/usc/12/181.md) that involves the assumption of the bank’s [insured deposit](/usc/12/1813.md?p=m-1) liabilities and the sale of the bank, or of [control](/usc/12/24a.md?p=g-1) of the bank, as a going concern; and the term “State” means any State, Territory, or possession of the United States, and the Canal Zone.


# §203. Appointment of conservator

- (a) **Appointment—** The Comptroller of the Currency may, without prior notice or hearings, appoint a conservator (which may be the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2)) to the possession and [control](/usc/12/24a.md?p=g-1) of a [bank](/usc/12/202.md) whenever the Comptroller of the Currency determines that 1 or more of the grounds specified in section 11(c)(5) of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1821(c)(5)](/usc/12/1821.md?p=c-5)] exist.
- (b) **Judicial review—**
  - (1) **In general—** Not later than 20 days after the initial appointment of a conservator pursuant to this section, the [bank](/usc/12/202.md) may bring an action in the United States [district](/usc/12/221a.md?p=a) court for the judicial [district](/usc/12/221a.md?p=a) in which the home [office](/usc/12/2279bb.md?p=4) of such [bank](/usc/12/202.md) is located, or in the United States [District](/usc/12/221a.md?p=a) Court for the District of Columbia, for an order requiring the Comptroller to terminate the appointment of the conservator, and the court, upon the merits, shall dismiss such action or shall direct the Comptroller to terminate the appointment of such conservator. The Comptroller’s decision to appoint a conservator pursuant to this section shall be set aside only if the court finds that such decision was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.
  - (2) **Stay—** The conservator may request that any judicial action or proceeding to which the conservator or the [bank](/usc/12/202.md) is or may become a party be stayed for a period of up to 45 days after the appointment of the conservator. Upon petition, the court shall grant such stay as to all parties.
  - (3) **Actions and orders—** Except as otherwise provided in this subsection, no court may take any action regarding the removal of a conservator, or restrain, or affect the exercise of powers or functions of a conservator. A court, upon application by the Comptroller, shall have jurisdiction to enforce an order of the Comptroller relating to—
    - (A) the conservatorship and the [bank](/usc/12/202.md) in conservatorship, or
    - (B) restraining or affecting the exercise of powers or functions of a conservator.
- (c) **Additional grounds for appointment—** In addition to the foregoing provisions, the Comptroller may appoint a conservator for a [bank](/usc/12/202.md) if—
  - (1) the [bank](/usc/12/202.md), by an affirmative vote of a majority of its [board](/usc/12/221a.md?p=a) of [directors](/usc/12/2279bb.md?p=3) or by an affirmative vote of a majority of its shareholders, consents to such appointment, or
  - (2) the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) terminates the [bank](/usc/12/202.md)’s status as an [insured bank](/usc/12/24a.md?p=g-2).

  The appointment of a conservator pursuant to this subsection shall not be subject to review.

- (d) **Exclusive authority—** The Comptroller shall have exclusive power and jurisdiction to appoint a conservator for a [bank](/usc/12/202.md). Whenever the Comptroller appoints a conservator for any [bank](/usc/12/202.md), the Comptroller may appoint the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) conservator for such [bank](/usc/12/202.md). The Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), as such conservator, shall have all the powers granted under the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1811](/usc/12/1811.md) et seq.], and (when not inconsistent therewith) any other rights, powers, and privileges possessed by conservators of [banks](/usc/12/221a.md?p=a) under this Act and any other provision of law. The Comptroller may also appoint another [person](/usc/12/5481.md?p=19) as conservator, who shall be subject to the provisions of this Act.
- (e) **Replacement of conservator—** The Comptroller may, without notice or hearing, replace a conservator with another conservator. Such replacement shall not affect the [bank](/usc/12/202.md)’s right under [subsection (b)](#b) to obtain judicial review of the Comptroller’s original decision to appoint a conservator.