---
kind: "section"
citation: "12 U.S.C. § 5911"
title: "12"
title_heading: "Banks and Banking"
number: "5911"
heading: "Application of existing insolvency law"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5911"
units:
  - "Chapter 56 — Regulation of Payment Stablecoins"
---

# §5911. Application of existing insolvency law


In accordance with otherwise applicable law, an insolvency proceeding with respect to a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) shall occur as follows:

- (1) A [depository institution](/usc/12/1861.md?p=b-4) (as defined in [section 1813 of this title](/usc/12/1813.md)) shall be resolved by the Federal Deposit Insurance [Corporation](/usc/12/5901.md?p=5), National [Credit](/usc/12/5481.md?p=7) Union Administration, or [State payment stablecoin regulator](/usc/12/5901.md?p=30), as applicable.
- (2) A [subsidiary](/usc/12/5901.md?p=32) of a [depository institution](/usc/12/1861.md?p=b-4) (as defined in [section 1813 of this title](/usc/12/1813.md)) or a [nonbank entity](/usc/12/5901.md?p=20) may be considered a debtor under title 11.

## Source credit

(Pub. L. 119–27, § 11(g), July 18, 2025, 139 Stat. 458.)

## Notes

### Delayed Effective Date of Section

For delayed effective date of section, see Effective Date note below.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as a note under section 5901 of this title.