§5386. Mandatory terms and conditions for all orderly liquidation actions — Inbound Citations

Citations to 12 U.S.C. § 5386 as a whole

• 12 U.S.C. § 5384(d)

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  (d) Upon its appointment as receiver for a covered financial company, and thereafter as the Corporation may, in its discretion, determine to be necessary or appropriate, the Corporation may make available to the receivership, subject to the conditions set forth in section 5386 of this title and subject to the plan described in section 5390(n)(9) of this title, funds for the orderly liquidation of the covered financial company. All funds provided by the Corporation under this subsection shall have a priority of claims under subparagraph (A) or (B) of section 5390(b)(1) of this title, as applicable, including funds used for—

  (1) making loans to, or purchasing any debt obligation of, the covered financial company or any covered subsidiary;

  (2) purchasing or guaranteeing against loss the assets of the covered financial company or any covered subsidiary, directly or through an entity established by the Corporation for such purpose;

  (3) assuming or guaranteeing the obligations of the covered financial company or any covered subsidiary to 1 or more third parties;

  (4) taking a lien on any or all assets of the covered financial company or any covered subsidiary, including a first priority lien on all unencumbered assets of the covered financial company or any covered subsidiary to secure repayment of any transactions conducted under this subsection, except that, if the covered financial company or covered subsidiary is an insurance company or a subsidiary of an insurance company, the Corporation—

  (A) shall promptly notify the State insurance authority for the insurance company of the intention to take such lien; and

  (B) may only take such lien—

  (i) to secure repayment of funds made available to such covered financial company or covered subsidiary; and

  (ii) if the Corporation determines, after consultation with the State insurance authority, that such lien will not unduly impede or delay the liquidation or rehabilitation of the insurance company, or the recovery by its policyholders;

  (5) selling or transferring all, or any part, of such acquired assets, liabilities, or obligations of the covered financial company or any covered subsidiary; and

  (6) making payments pursuant to subsections (b)(4), (d)(4), and (h)(5)(E) of section 5390 of this title.