---
kind: "section"
citation: "12 U.S.C. § 5382"
title: "12"
title_heading: "Banks and Banking"
number: "5382"
heading: "Judicial review"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5382"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter II — Orderly Liquidation Authority"
---

# §5382. Judicial review

- (a) **Commencement of orderly liquidation—**
  - (1) **Petition to District Court—**
    - (A) **District Court review—**
      - (i) **Petition to District Court—** Subsequent to a determination by the [Secretary](/usc/12/5301.md?p=14) under [section 5383 of this title](/usc/12/5383.md) that a [financial company](/usc/12/5341.md?p=2) satisfies the criteria in [section 5383(b) of this title](/usc/12/5383.md?p=b), the [Secretary](/usc/12/5301.md?p=14) shall notify the [Corporation](/usc/12/5301.md?p=7) and the [covered financial company](/usc/12/5381.md?p=a-8). If the [board](/usc/12/1861.md?p=b-3) of [directors](/usc/12/5341.md?p=1) (or body performing similar functions) of the [covered financial company](/usc/12/5381.md?p=a-8) acquiesces or consents to the appointment of the [Corporation](/usc/12/5301.md?p=7) as receiver, the [Secretary](/usc/12/5301.md?p=14) shall appoint the [Corporation](/usc/12/5301.md?p=7) as receiver. If the [board](/usc/12/1861.md?p=b-3) of [directors](/usc/12/5341.md?p=1) (or body performing similar functions) of the [covered financial company](/usc/12/5381.md?p=a-8) does not acquiesce or consent to the appointment of the [Corporation](/usc/12/5301.md?p=7) as receiver, the [Secretary](/usc/12/5301.md?p=14) shall petition the United States District [Court](/usc/12/5381.md?p=a-6) for the District of Columbia for an order authorizing the [Secretary](/usc/12/5301.md?p=14) to appoint the [Corporation](/usc/12/5301.md?p=7) as receiver.
      - (ii) **Form and content of order—** The [Secretary](/usc/12/5301.md?p=14) shall present all relevant findings and the recommendation made pursuant to [section 5383(a) of this title](/usc/12/5383.md?p=a) to the [Court](/usc/12/5381.md?p=a-6). The petition shall be filed under seal.
      - (iii) **Determination—** On a strictly confidential basis, and without any prior public disclosure, the [Court](/usc/12/5381.md?p=a-6), after notice to the [covered financial company](/usc/12/5381.md?p=a-8) and a hearing in which the [covered financial company](/usc/12/5381.md?p=a-8) may oppose the petition, shall determine whether the determination of the [Secretary](/usc/12/5301.md?p=14) that the [covered financial company](/usc/12/5381.md?p=a-8) is in default or in danger of default and satisfies the definition of a [financial company](/usc/12/5341.md?p=2) under [section 5381(a)(11) of this title](/usc/12/5381.md?p=a-11) is arbitrary and capricious.
      - (iv) **Issuance of order—** If the [Court](/usc/12/5381.md?p=a-6) determines that the determination of the [Secretary](/usc/12/5301.md?p=14) that the [covered financial company](/usc/12/5381.md?p=a-8) is in default or in danger of default and satisfies the definition of a [financial company](/usc/12/5341.md?p=2) under [section 5381(a)(11) of this title](/usc/12/5381.md?p=a-11)—
        - (I) is not arbitrary and capricious, the [Court](/usc/12/5381.md?p=a-6) shall issue an order immediately authorizing the [Secretary](/usc/12/5301.md?p=14) to appoint the [Corporation](/usc/12/5301.md?p=7) as receiver of the [covered financial company](/usc/12/5381.md?p=a-8); or
        - (II) is arbitrary and capricious, the [Court](/usc/12/5381.md?p=a-6) shall immediately provide to the [Secretary](/usc/12/5301.md?p=14) a written statement of each reason supporting its determination, and afford the [Secretary](/usc/12/5301.md?p=14) an immediate opportunity to amend and refile the petition under [clause (i)](#a-1-A-i).
      - (v) **Petition granted by operation of law—** If the [Court](/usc/12/5381.md?p=a-6) does not make a determination within 24 hours of receipt of the petition—
        - (I) the petition shall be granted by operation of law;
        - (II) the [Secretary](/usc/12/5301.md?p=14) shall appoint the [Corporation](/usc/12/5301.md?p=7) as receiver; and
        - (III) liquidation under this subchapter shall automatically and without further notice or action be commenced and the [Corporation](/usc/12/5301.md?p=7) may immediately take all actions authorized under this subchapter.
    - (B) **Effect of determination—** The determination of the [Court](/usc/12/5381.md?p=a-6) under [subparagraph (A)](#a-1-A) shall be final, and shall be subject to appeal only in accordance with [paragraph (2)](#a-2). The decision shall not be subject to any stay or injunction pending appeal. Upon conclusion of its proceedings under [subparagraph (A)](#a-1-A), the [Court](/usc/12/5381.md?p=a-6) shall provide immediately for the record a written statement of each reason supporting the decision of the [Court](/usc/12/5381.md?p=a-6), and shall provide copies thereof to the [Secretary](/usc/12/5301.md?p=14) and the [covered financial company](/usc/12/5381.md?p=a-8).
    - (C) **Criminal penalties—** A [person](/usc/12/5481.md?p=19) who recklessly discloses a determination of the [Secretary](/usc/12/5301.md?p=14) under [section 5383(b) of this title](/usc/12/5383.md?p=b) or a petition of the [Secretary](/usc/12/5301.md?p=14) under [subparagraph (A)](#a-1-A), or the pendency of [court](/usc/12/5381.md?p=a-6) proceedings as provided for under [subparagraph (A)](#a-1-A), shall be fined not more than $250,000, or imprisoned for not more than 5 years, or both.
  - (2) **Appeal of decisions of the District Court—**
    - (A) **Appeal to Court of Appeals—**
      - (i) **In general—** Subject to [clause (ii)](#a-2-A-ii), the United States [Court](/usc/12/5381.md?p=a-6) of Appeals for the District of Columbia Circuit shall have jurisdiction of an appeal of a final decision of the [Court](/usc/12/5381.md?p=a-6) filed by the [Secretary](/usc/12/5301.md?p=14) or a [covered financial company](/usc/12/5381.md?p=a-8), through its [board](/usc/12/1861.md?p=b-3) of [directors](/usc/12/5341.md?p=1), notwithstanding [section 5390(a)(1)(A)(i) of this title](/usc/12/5390.md?p=a-1-A-i), not later than 30 days after the date on which the decision of the [Court](/usc/12/5381.md?p=a-6) is rendered or deemed rendered under this subsection.
      - (ii) **Condition of jurisdiction—** The [Court](/usc/12/5381.md?p=a-6) of Appeals shall have jurisdiction of an appeal by a [covered financial company](/usc/12/5381.md?p=a-8) only if the [covered financial company](/usc/12/5381.md?p=a-8) did not acquiesce or consent to the appointment of a receiver by the [Secretary](/usc/12/5301.md?p=14) under [paragraph (1)(A)](#a-1-A).
      - (iii) **Expedition—** The [Court](/usc/12/5381.md?p=a-6) of Appeals shall consider any appeal under this subparagraph on an expedited basis.
      - (iv) **Scope of review—** For an appeal taken under this subparagraph, review shall be limited to whether the determination of the [Secretary](/usc/12/5301.md?p=14) that a [covered financial company](/usc/12/5381.md?p=a-8) is in default or in danger of default and satisfies the definition of a [financial company](/usc/12/5341.md?p=2) under [section 5381(a)(11) of this title](/usc/12/5381.md?p=a-11) is arbitrary and capricious.
    - (B) **Appeal to the Supreme Court—**
      - (i) **In general—** A petition for a writ of certiorari to review a decision of the [Court](/usc/12/5381.md?p=a-6) of Appeals under [subparagraph (A)](#a-2-A) may be filed by the [Secretary](/usc/12/5301.md?p=14) or the [covered financial company](/usc/12/5381.md?p=a-8), through its [board](/usc/12/1861.md?p=b-3) of [directors](/usc/12/5341.md?p=1), notwithstanding [section 5390(a)(1)(A)(i) of this title](/usc/12/5390.md?p=a-1-A-i), with the Supreme [Court](/usc/12/5381.md?p=a-6) of the United States, not later than 30 days after the date of the final decision of the [Court](/usc/12/5381.md?p=a-6) of Appeals, and the Supreme [Court](/usc/12/5381.md?p=a-6) shall have discretionary jurisdiction to review such decision.
      - (ii) **Written statement—** In the event of a petition under [clause (i)](#a-2-B-i), the [Court](/usc/12/5381.md?p=a-6) of Appeals shall immediately provide for the record a written statement of each reason for its decision.
      - (iii) **Expedition—** The Supreme [Court](/usc/12/5381.md?p=a-6) shall consider any petition under this subparagraph on an expedited basis.
      - (iv) **Scope of review—** Review by the Supreme [Court](/usc/12/5381.md?p=a-6) under this subparagraph shall be limited to whether the determination of the [Secretary](/usc/12/5301.md?p=14) that the [covered financial company](/usc/12/5381.md?p=a-8) is in default or in danger of default and satisfies the definition of a [financial company](/usc/12/5341.md?p=2) under [section 5381(a)(11) of this title](/usc/12/5381.md?p=a-11) is arbitrary and capricious.
- (b) **Establishment and transmittal of rules and procedures—**
  - (1) **In general—** Not later than 6 months after July 21, 2010, the [Court](/usc/12/5381.md?p=a-6) shall establish such rules and procedures as may be necessary to ensure the orderly conduct of proceedings, [including](/usc/12/5301.md?p=18-A) rules and procedures to ensure that the 24-hour deadline is met and that the [Secretary](/usc/12/5301.md?p=14) shall have an ongoing opportunity to amend and refile petitions under [subsection (a)(1)](#a-1).
  - (2) **Publication of rules—** The rules and procedures established under [paragraph (1)](#b-1), and any modifications of such rules and procedures, shall be recorded and shall be transmitted to—
    - (A) the Committee on the Judiciary of the Senate;
    - (B) the Committee on Banking, Housing, and Urban Affairs of the Senate;
    - (C) the Committee on the Judiciary of the House of Representatives; and
    - (D) the Committee on Financial Services of the House of Representatives.
- (c) **Provisions applicable to financial companies—**
  - (1) **Bankruptcy Code—** Except as provided in this subsection, the provisions of the [Bankruptcy Code](/usc/12/5381.md?p=a-2) and rules issued thereunder or otherwise applicable insolvency law, and not the provisions of this subchapter, shall apply to [financial companies](/usc/12/5341.md?p=2) that are not [covered financial companies](/usc/12/5381.md?p=a-8) for which the [Corporation](/usc/12/5301.md?p=7) has been appointed as receiver.
  - (2) **This subchapter—** The provisions of this subchapter shall exclusively apply to and govern all matters relating to [covered financial companies](/usc/12/5381.md?p=a-8) for which the [Corporation](/usc/12/5301.md?p=7) is appointed as receiver, and no provisions of the [Bankruptcy Code](/usc/12/5381.md?p=a-2) or the rules issued thereunder shall apply in such cases, except as expressly provided in this subchapter.
- (d) **Time limit on receivership authority—**
  - (1) **Baseline period—** Any appointment of the [Corporation](/usc/12/5301.md?p=7) as receiver under this section shall terminate at the end of the 3-year period beginning on the date on which such appointment is made.
  - (2) **Extension of time limit—** The time limit established in [paragraph (1)](#d-1) may be extended by the [Corporation](/usc/12/5301.md?p=7) for up to 1 additional year, if the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7) determines and certifies in writing to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that continuation of the receivership is necessary—
    - (A) to—
      - (i) maximize the net present value return from the sale or other disposition of the assets of the [covered financial company](/usc/12/5381.md?p=a-8); or
      - (ii) minimize the amount of loss realized upon the sale or other disposition of the assets of the [covered financial company](/usc/12/5381.md?p=a-8); and
    - (B) to protect the stability of the financial system of the United States.
  - (3) **Second extension of time limit—**
    - (A) **In general—** The time limit under this subsection, as extended under [paragraph (2)](#d-2), may be extended for up to 1 additional year, if the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7), with the concurrence of the [Secretary](/usc/12/5301.md?p=14), submits the certifications described in [paragraph (2)](#d-2).
    - (B) **Additional report required—** Not later than 30 days after the date of commencement of the extension under [subparagraph (A)](#d-3-A), the [Corporation](/usc/12/5301.md?p=7) shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives describing the need for the extension and the specific plan of the [Corporation](/usc/12/5301.md?p=7) to conclude the receivership before the end of the second extension.
  - (4) **Ongoing litigation—** The time limit under this subsection, as extended under [paragraph (3)](#d-3), may be further extended solely for the purpose of completing ongoing litigation in which the [Corporation](/usc/12/5301.md?p=7) as receiver is a party, provided that the appointment of the [Corporation](/usc/12/5301.md?p=7) as receiver shall terminate not later than 90 days after the date of completion of such litigation, if—
    - (A) the [Council](/usc/12/5301.md?p=8) determines that the [Corporation](/usc/12/5301.md?p=7) used its best efforts to conclude the receivership in accordance with its plan before the end of the time limit described in [paragraph (3)](#d-3);
    - (B) the [Council](/usc/12/5301.md?p=8) determines that the completion of longer-term responsibilities in the form of ongoing litigation justifies the need for an extension; and
    - (C) the [Corporation](/usc/12/5301.md?p=7) submits a report approved by the [Council](/usc/12/5301.md?p=8) not later than 30 days after the date of the determinations by the [Council](/usc/12/5301.md?p=8) under subparagraphs [(A)](#d-4-A) and [(B)](#d-4-B) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, describing—
      - (i) the ongoing litigation justifying the need for an extension; and
      - (ii) the specific plan of the [Corporation](/usc/12/5301.md?p=7) to complete the litigation and conclude the receivership.
  - (5) **Regulations—** The [Corporation](/usc/12/5301.md?p=7) may issue regulations governing the termination of receiverships under this subchapter.
  - (6) **No liability—** The [Corporation](/usc/12/5301.md?p=7) and the [Deposit](/usc/12/5301.md?p=18-A) Insurance [Fund](/usc/12/5381.md?p=a-12) shall not be liable for unresolved [claims](/usc/12/5381.md?p=a-4) arising from the receivership after the termination of the receivership.
- (e) **Study of bankruptcy and orderly liquidation process for financial companies—**
  - (1) **Study—**
    - (A) **In general—** The Administrative [Office](/usc/12/5341.md?p=1) of the United States [Courts](/usc/12/5381.md?p=a-6) and the Comptroller General of the United States shall each monitor the activities of the [Court](/usc/12/5381.md?p=a-6), and each such [Office](/usc/12/5341.md?p=1) shall conduct separate studies regarding the bankruptcy and orderly liquidation process for [financial companies](/usc/12/5341.md?p=2) under the [Bankruptcy Code](/usc/12/5381.md?p=a-2).
    - (B) **Issues to be studied—** In conducting the study under [subparagraph (A)](#e-1-A), the Administrative [Office](/usc/12/5341.md?p=1) of the United States [Courts](/usc/12/5381.md?p=a-6) and the Comptroller General of the United States each shall evaluate—
      - (i) the effectiveness of [chapter 7](/usc/12/chch7.md) or [chapter 11](/usc/12/chch11.md) of the [Bankruptcy Code](/usc/12/5381.md?p=a-2) in facilitating the orderly liquidation or reorganization of [financial companies](/usc/12/5341.md?p=2);
      - (ii) ways to maximize the efficiency and effectiveness of the [Court](/usc/12/5381.md?p=a-6); and
      - (iii) ways to make the orderly liquidation process under the [Bankruptcy Code](/usc/12/5381.md?p=a-2) for [financial companies](/usc/12/5341.md?p=2) more effective.
  - (2) **Reports—** Not later than 1 year after July 21, 2010, in each successive year until the third year, and every fifth year after that date, the Administrative [Office](/usc/12/5341.md?p=1) of the United States [Courts](/usc/12/5381.md?p=a-6) and the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on the Judiciary of the Senate and the Committee on Financial Services and the Committee on the Judiciary of the House of Representatives separate reports summarizing the results of the studies conducted under [paragraph (1)](#e-1).
- (f) **Study of international coordination relating to bankruptcy process for financial companies—**
  - (1) **Study—**
    - (A) **In general—** The Comptroller General of the United States shall conduct a study regarding international coordination relating to the orderly liquidation of [financial companies](/usc/12/5341.md?p=2) under the [Bankruptcy Code](/usc/12/5381.md?p=a-2).
    - (B) **Issues to be studied—** In conducting the study under [subparagraph (A)](#f-1-A), the Comptroller General of the United States shall evaluate, with respect to the bankruptcy process for [financial companies](/usc/12/5341.md?p=2)—
      - (i) the extent to which international coordination currently exists;
      - (ii) current mechanisms and structures for facilitating international cooperation;
      - (iii) barriers to effective international coordination; and
      - (iv) ways to increase and make more effective international coordination.
  - (2) **Report—** Not later than 1 year after July 21, 2010, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on the Judiciary of the Senate and the Committee on Financial Services and the Committee on the Judiciary of the House of Representatives and the [Secretary](/usc/12/5301.md?p=14) a report summarizing the results of the study conducted under [paragraph (1)](#f-1).
- (g) **Study of prompt corrective action implementation by the appropriate Federal agencies—**
  - (1) **Study—** The Comptroller General of the United States shall conduct a study regarding the implementation of prompt corrective action by the [appropriate Federal banking agencies](/usc/12/5301.md?p=2).
  - (2) **Issues to be studied—** In conducting the study under [paragraph (1)](#g-1), the Comptroller General shall evaluate—
    - (A) the effectiveness of implementation of prompt corrective action by the [appropriate Federal banking agencies](/usc/12/5301.md?p=2) and the resolution of [insured depository institutions](/usc/12/5301.md?p=18-A) by the [Corporation](/usc/12/5301.md?p=7); and
    - (B) ways to make prompt corrective action a more effective tool to resolve the [insured depository institutions](/usc/12/5301.md?p=18-A) at the least possible long-term cost to the [Deposit](/usc/12/5301.md?p=18-A) Insurance [Fund](/usc/12/5381.md?p=a-12).
  - (3) **Report to Council—** Not later than 1 year after July 21, 2010, the Comptroller General shall submit a report to the [Council](/usc/12/5301.md?p=8) on the results of the study conducted under this subsection.
  - (4) **Council report of action—** Not later than 6 months after the date of receipt of the report from the Comptroller General under [paragraph (3)](#g-3), the [Council](/usc/12/5301.md?p=8) shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on actions taken in response to the report, [including](/usc/12/5301.md?p=18-A) any recommendations made to the Federal [primary financial regulatory agencies](/usc/12/5301.md?p=12) under [section 5330 of this title](/usc/12/5330.md).

## Source credit

(Pub. L. 111–203, title II, § 202, July 21, 2010, 124 Stat. 1444.)

## Notes

### Editorial Notes

### References in Text

This subchapter, referred to in subsecs. (a)(1)(A)(v)(III), (c), and (d)(5), 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.