---
kind: "section"
citation: "12 U.S.C. § 5388"
title: "12"
title_heading: "Banks and Banking"
number: "5388"
heading: "Dismissal and exclusion of other actions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5388"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter II — Orderly Liquidation Authority"
---

# §5388. Dismissal and exclusion of other actions

- (a) **In general—** Effective as of the date of the appointment of the [Corporation](/usc/12/5301.md?p=7) as receiver for the [covered financial company](/usc/12/5381.md?p=a-8) under [section 5382 of this title](/usc/12/5382.md) or the appointment of [SIPC](/usc/12/5381.md?p=a-16) as trustee for a [covered broker or dealer](/usc/12/5381.md?p=a-7) under [section 5385 of this title](/usc/12/5385.md), as applicable, any case or proceeding commenced with respect to the [covered financial company](/usc/12/5381.md?p=a-8) under the [Bankruptcy Code](/usc/12/5381.md?p=a-2) or the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](/usc/15/78aaa.md) et seq.) shall be dismissed, upon notice to the bankruptcy [court](/usc/12/5381.md?p=a-6) (with respect to a case commenced under the [Bankruptcy Code](/usc/12/5381.md?p=a-2)), and upon notice to [SIPC](/usc/12/5381.md?p=a-16) (with respect to a [covered broker or dealer](/usc/12/5381.md?p=a-7)) and no such case or proceeding may be commenced with respect to a [covered financial company](/usc/12/5381.md?p=a-8) at any time while the orderly liquidation is pending.
- (b) **Revesting of assets—** Effective as of the date of appointment of the [Corporation](/usc/12/5301.md?p=7) as receiver, the assets of a [covered financial company](/usc/12/5381.md?p=a-8) shall, to the extent they have vested in any entity other than the [covered financial company](/usc/12/5381.md?p=a-8) as a result of any case or proceeding commenced with respect to the [covered financial company](/usc/12/5381.md?p=a-8) under the [Bankruptcy Code](/usc/12/5381.md?p=a-2), the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](/usc/15/78aaa.md) et seq.), or any similar provision of [State](/usc/12/5301.md?p=16) liquidation or insolvency law applicable to the [covered financial company](/usc/12/5381.md?p=a-8), revest in the [covered financial company](/usc/12/5381.md?p=a-8).
- (c) **Limitation—** Notwithstanding subsections [(a)](#a) and [(b)](#b), any order entered or other relief granted by a bankruptcy [court](/usc/12/5381.md?p=a-6) prior to the date of appointment of the [Corporation](/usc/12/5301.md?p=7) as receiver shall continue with the same validity as if an orderly liquidation had not been commenced.

## Source credit

(Pub. L. 111–203, title II, § 208, July 21, 2010, 124 Stat. 1459.)

## Notes

### Editorial Notes

### References in Text

The Securities Investor Protection Act of 1970, referred to in subsecs. (a) and (b), is Pub. L. 91–598, Dec. 30, 1970, 84 Stat. 1636, which is classified generally to chapter 2B–1 (§ 78aaa et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78aaa of Title 15 and 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.