  title ii orderly liquidation authority  sec 201 definitions  a in general in this title, the following definitions shall apply  1 administrative expenses of the receiver the term administrative expenses of the receiver includes  a the actual, necessary costs and expenses incurred by the corporation as receiver for a covered financial company in liquidating a covered financial company and   b any obligations that the corporation as receiver for a covered financial company determines are necessary and appropriate to facilitate the smooth and orderly liquidation of the covered financial company    2 bankruptcy code the term bankruptcy code means title 11, united states code   3 bridge financial company the term bridge financial company means a new financial company organized by the corporation in accordance with section 210 h for the purpose of resolving a covered financial company   4 claim the term claim means any right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured   5 company the term company has the same meaning as in section 2 b of the bank holding company act of 1956 12 usc 1841 b , except that such term includes any company described in paragraph 11 , the majority of the securities of which are owned by the united states or any state   6 court the term court means the united states district court for the district of columbia, unless the context otherwise requires   7 covered broker or dealer the term covered broker or dealer means a covered financial company that is a broker or dealer that  a is registered with the commission under section 15 b of the securities exchange act of 1934 15 usc 78o b and   b is a member of sipc    8 covered financial company the term covered financial company  a means a financial company for which a determination has been made under section 203 b and   b does not include an insured depository institution    9 covered subsidiary the term covered subsidiary means a subsidiary of a covered financial company, other than  a an insured depository institution   b an insurance company or   c a covered broker or dealer    10 definitions relating to covered brokers and dealers the terms customer , customer name securities , customer property , and net equity in the context of a covered broker or dealer, have the same meanings as in section 16 of the securities investor protection act of 1970 15 usc 78lll   11 financial company the term financial company means any company that  a is incorporated or organized under any provision of federal law or the laws of any state   b is  i a bank holding company, as defined in section 2 a of the bank holding company act of 1956 12 usc 1841 a   ii a nonbank financial company supervised by the board of governors   iii any company that is predominantly engaged in activities that the board of governors has determined are financial in nature or incidental thereto for purposes of section 4 k of the bank holding company act of 1956 12 usc 1843 k other than a company described in clause i or ii or   iv any subsidiary of any company described in any of clauses i through iii that is predominantly engaged in activities that the board of governors has determined are financial in nature or incidental thereto for purposes of section 4 k of the bank holding company act of 1956 12 usc 1843 k other than a subsidiary that is an insured depository institution or an insurance company and    c is not a farm credit system institution chartered under and subject to the provisions of the farm credit act of 1971, as amended 12 usc 2001 et seq , a governmental entity, or a regulated entity, as defined under section 1303 20 of the federal housing enterprises financial safety and soundness act of 1992 12 usc 4502 20    12 fund the term fund means the orderly liquidation fund established under section 210 n   13 insurance company the term insurance company means any entity that is  a engaged in the business of insurance   b subject to regulation by a state insurance regulator and   c covered by a state law that is designed to specifically deal with the rehabilitation, liquidation, or insolvency of an insurance company    14 nonbank financial company the term nonbank financial company has the same meaning as in section 102 a 4 c   15 nonbank financial company supervised by the board of governors the term nonbank financial company supervised by the board of governors has the same meaning as in section 102 a 4 d   16 sipc the term sipc means the securities investor protection corporation    b definitional criteria for purpose of the definition of the term financial company under subsection a 11 , no company shall be deemed to be predominantly engaged in activities that the board of governors has determined are financial in nature or incidental thereto for purposes of section 4 k of the bank holding company act of 1956 12 usc 1843 k , if the consolidated revenues of such company from such activities constitute less than 85 percent of the total consolidated revenues of such company, as the corporation, in consultation with the secretary, shall establish by regulation in determining whether a company is a financial company under this title, the consolidated revenues derived from the ownership or control of a depository institution shall be included    sec 202 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 under section 203 that a financial company satisfies the criteria in section 203 b , the secretary shall notify the corporation and the covered financial company if the board of directors or body performing similar functions of the covered financial company acquiesces or consents to the appointment of the corporation as receiver, the secretary shall appoint the corporation as receiver if the board of directors or body performing similar functions of the covered financial company does not acquiesce or consent to the appointment of the corporation as receiver, the secretary shall petition the united states district court for the district of columbia for an order authorizing the secretary to appoint the corporation as receiver   ii form and content of order the secretary shall present all relevant findings and the recommendation made pursuant to section 203 a to the court the petition shall be filed under seal   iii determination on a strictly confidential basis, and without any prior public disclosure, the court, after notice to the covered financial company and a hearing in which the covered financial company may oppose the petition, shall determine whether the determination of the secretary that the covered financial company is in default or in danger of default and satisfies the definition of a financial company under section 201 a 11 is arbitrary and capricious   iv issuance of order if the court determines that the determination of the secretary that the covered financial company is in default or in danger of default and satisfies the definition of a financial company under section 201 a 11  i is not arbitrary and capricious, the court shall issue an order immediately authorizing the secretary to appoint the corporation as receiver of the covered financial company or   ii is arbitrary and capricious, the court shall immediately provide to the secretary a written statement of each reason supporting its determination, and afford the secretary an immediate opportunity to amend and refile the petition under clause i    v petition granted by operation of law if the court 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 shall appoint the corporation as receiver and   iii liquidation under this title shall automatically and without further notice or action be commenced and the corporation may immediately take all actions authorized under this title     b effect of determination the determination of the court under subparagraph a shall be final, and shall be subject to appeal only in accordance with paragraph 2 the decision shall not be subject to any stay or injunction pending appeal upon conclusion of its proceedings under subparagraph a , the court shall provide immediately for the record a written statement of each reason supporting the decision of the court, and shall provide copies thereof to the secretary and the covered financial company   c criminal penalties a person who recklessly discloses a determination of the secretary under section 203 b or a petition of the secretary under subparagraph a , or the pendency of court proceedings as provided for under subparagraph 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 , the united states court of appeals for the district of columbia circuit shall have jurisdiction of an appeal of a final decision of the court filed by the secretary or a covered financial company, through its board of directors, notwithstanding section 210 a 1 a i , not later than 30 days after the date on which the decision of the court is rendered or deemed rendered under this subsection   ii condition of jurisdiction the court of appeals shall have jurisdiction of an appeal by a covered financial company only if the covered financial company did not acquiesce or consent to the appointment of a receiver by the secretary under paragraph 1 a   iii expedition the court 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 that a covered financial company is in default or in danger of default and satisfies the definition of a financial company under section 201 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 of appeals under subparagraph a may be filed by the secretary or the covered financial company, through its board of directors, notwithstanding section 210 a 1 a i , with the supreme court of the united states, not later than 30 days after the date of the final decision of the court of appeals, and the supreme court shall have discretionary jurisdiction to review such decision   ii written statement in the event of a petition under clause i , the court of appeals shall immediately provide for the record a written statement of each reason for its decision   iii expedition the supreme court shall consider any petition under this subparagraph on an expedited basis   iv scope of review review by the supreme court under this subparagraph shall be limited to whether the determination of the secretary that the covered financial company is in default or in danger of default and satisfies the definition of a financial company under section 201 a 11 is arbitrary and capricious      b establishment and transmittal of rules and procedures  1 in general not later than 6 months after the date of enactment of this act, the court shall establish such rules and procedures as may be necessary to ensure the orderly conduct of proceedings, including rules and procedures to ensure that the 24-hour deadline is met and that the secretary shall have an ongoing opportunity to amend and refile petitions under subsection a 1   2 publication of rules the rules and procedures established under paragraph 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 and rules issued thereunder or otherwise applicable insolvency law, and not the provisions of this title, shall apply to financial companies that are not covered financial companies for which the corporation has been appointed as receiver   2 this title the provisions of this title shall exclusively apply to and govern all matters relating to covered financial companies for which the corporation is appointed as receiver, and no provisions of the bankruptcy code or the rules issued thereunder shall apply in such cases, except as expressly provided in this title    d time limit on receivership authority  1 baseline period any appointment of the corporation 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 may be extended by the corporation for up to 1 additional year, if the chairperson of the corporation 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 or   ii minimize the amount of loss realized upon the sale or other disposition of the assets of the covered financial company 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 , may be extended for up to 1 additional year, if the chairperson of the corporation, with the concurrence of the secretary, submits the certifications described in paragraph 2   b additional report required not later than 30 days after the date of commencement of the extension under subparagraph a , the corporation 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 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 , may be further extended solely for the purpose of completing ongoing litigation in which the corporation as receiver is a party, provided that the appointment of the corporation as receiver shall terminate not later than 90 days after the date of completion of such litigation, if  a the council determines that the corporation used its best efforts to conclude the receivership in accordance with its plan before the end of the time limit described in paragraph 3   b the council determines that the completion of longer-term responsibilities in the form of ongoing litigation justifies the need for an extension and   c the corporation submits a report approved by the council not later than 30 days after the date of the determinations by the council under subparagraphs a and 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 to complete the litigation and conclude the receivership     5 regulations the corporation may issue regulations governing the termination of receiverships under this title   6 no liability the corporation and the deposit insurance fund shall not be liable for unresolved claims 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 of the united states courts and the comptroller general of the united states shall each monitor the activities of the court, and each such office shall conduct separate studies regarding the bankruptcy and orderly liquidation process for financial companies under the bankruptcy code   b issues to be studied in conducting the study under subparagraph a , the administrative office of the united states courts and the comptroller general of the united states each shall evaluate  i the effectiveness of chapter 7 or chapter 11 of the bankruptcy code in facilitating the orderly liquidation or reorganization of financial companies   ii ways to maximize the efficiency and effectiveness of the court and   iii ways to make the orderly liquidation process under the bankruptcy code for financial companies more effective     2 reports not later than 1 year after the date of enactment of this act, in each successive year until the third year, and every fifth year after that date of enactment, the administrative office of the united states courts 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    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 under the bankruptcy code   b issues to be studied in conducting the study under subparagraph a , the comptroller general of the united states shall evaluate, with respect to the bankruptcy process for financial companies  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 the date of enactment of this act, 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 a report summarizing the results of the study conducted under paragraph 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   2 issues to be studied in conducting the study under paragraph 1 , the comptroller general shall evaluate  a the effectiveness of implementation of prompt corrective action by the appropriate federal banking agencies and the resolution of insured depository institutions by the corporation and   b ways to make prompt corrective action a more effective tool to resolve the insured depository institutions at the least possible long-term cost to the deposit insurance fund    3 report to council not later than 1 year after the date of enactment of this act, the comptroller general shall submit a report to the council 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 , the council 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 any recommendations made to the federal primary financial regulatory agencies under section 120     sec 203 systemic risk determination  a written recommendation and determination  1 vote required  a in general on their own initiative, or at the request of the secretary, the corporation and the board of governors shall consider whether to make a written recommendation described in paragraph 2 with respect to whether the secretary should appoint the corporation as receiver for a financial company such recommendation shall be made upon a vote of not fewer than 2/3 of the members of the board of governors then serving and 2/3 of the members of the board of directors of the corporation then serving   b cases involving brokers or dealers in the case of a broker or dealer, or in which the largest united states subsidiary as measured by total assets as of the end of the previous calendar quarter of a financial company is a broker or dealer, the commission and the board of governors, at the request of the secretary, or on their own initiative, shall consider whether to make the written recommendation described in paragraph 2 with respect to the financial company subject to the requirements in paragraph 2 , such recommendation shall be made upon a vote of not fewer than 2/3 of the members of the board of governors then serving and 2/3 of the members of the commission then serving, and in consultation with the corporation   c cases involving insurance companies in the case of an insurance company, or in which the largest united states subsidiary as measured by total assets as of the end of the previous calendar quarter of a financial company is an insurance company, the director of the federal insurance office and the board of governors, at the request of the secretary or on their own initiative, shall consider whether to make the written recommendation described in paragraph 2 with respect to the financial company subject to the requirements in paragraph 2 , such recommendation shall be made upon a vote of not fewer than 2/3 of the board of governors then serving and the affirmative approval of the director of the federal insurance office, and in consultation with the corporation    2 recommendation required any written recommendation pursuant to paragraph 1 shall contain  a an evaluation of whether the financial company is in default or in danger of default   b a description of the effect that the default of the financial company would have on financial stability in the united states   c a description of the effect that the default of the financial company would have on economic conditions or financial stability for low income, minority, or underserved communities   d a recommendation regarding the nature and the extent of actions to be taken under this title regarding the financial company   e an evaluation of the likelihood of a private sector alternative to prevent the default of the financial company   f an evaluation of why a case under the bankruptcy code is not appropriate for the financial company   g an evaluation of the effects on creditors, counterparties, and shareholders of the financial company and other market participants and   h an evaluation of whether the company satisfies the definition of a financial company under section 201     b determination by the secretary notwithstanding any other provision of federal or state law, the secretary shall take action in accordance with section 202 a 1 a , if, upon the written recommendation under subsection a , the secretary in consultation with the president determines that  1 the financial company is in default or in danger of default   2 the failure of the financial company and its resolution under otherwise applicable federal or state law would have serious adverse effects on financial stability in the united states   3 no viable private sector alternative is available to prevent the default of the financial company   4 any effect on the claims or interests of creditors, counterparties, and shareholders of the financial company and other market participants as a result of actions to be taken under this title is appropriate, given the impact that any action taken under this title would have on financial stability in the united states   5 any action under section 204 would avoid or mitigate such adverse effects, taking into consideration the effectiveness of the action in mitigating potential adverse effects on the financial system, the cost to the general fund of the treasury, and the potential to increase excessive risk taking on the part of creditors, counterparties, and shareholders in the financial company   6 a federal regulatory agency has ordered the financial company to convert all of its convertible debt instruments that are subject to the regulatory order and   7 the company satisfies the definition of a financial company under section 201    c documentation and review  1 in general the secretary shall  a document any determination under subsection b   b retain the documentation for review under paragraph 2 and   c notify the covered financial company and the corporation of such determination    2 report to congress not later than 24 hours after the date of appointment of the corporation as receiver for a covered financial company, the secretary shall provide written notice of the recommendations and determinations reached in accordance with subsections a and b to the majority leader and the minority leader of the senate and the speaker and the minority leader of the house of representatives, the committee on banking, housing, and urban affairs of the senate, and the committee on financial services of the house of representatives, which shall consist of a summary of the basis for the determination, including, to the extent available at the time of the determination  a the size and financial condition of the covered financial company   b the sources of capital and credit support that were available to the covered financial company   c the operations of the covered financial company that could have had a significant impact on financial stability, markets, or both   d identification of the banks and financial companies which may be able to provide the services offered by the covered financial company   e any potential international ramifications of resolution of the covered financial company under other applicable insolvency law   f an estimate of the potential effect of the resolution of the covered financial company under other applicable insolvency law on the financial stability of the united states   g the potential effect of the appointment of a receiver by the secretary on consumers   h the potential effect of the appointment of a receiver by the secretary on the financial system, financial markets, and banks and other financial companies and   i whether resolution of the covered financial company under other applicable insolvency law would cause banks or other financial companies to experience severe liquidity distress    3 reports to congress and the public  a in general not later than 60 days after the date of appointment of the corporation as receiver for a covered financial company, the corporation shall file a report with the committee on banking, housing, and urban affairs of the senate and the committee on financial services of the house of representatives  i setting forth information on the financial condition of the covered financial company as of the date of the appointment, including a description of its assets and liabilities   ii describing the plan of, and actions taken by, the corporation to wind down the covered financial company   iii explaining each instance in which the corporation waived any applicable requirements of part 366 of title 12, code of federal regulations or any successor thereto with respect to conflicts of interest by any person in the private sector who was retained to provide services to the corporation in connection with such receivership   iv describing the reasons for the provision of any funding to the receivership out of the fund   v setting forth the expected costs of the orderly liquidation of the covered financial company   vi setting forth the identity of any claimant that is treated in a manner different from other similarly situated claimants under subsection b 4 , d 4 , or h 5 e , the amount of any additional payment to such claimant under subsection d 4 , and the reason for any such action and   vii which report the corporation shall publish on an online website maintained by the corporation, subject to maintaining appropriate confidentiality    b amendments the corporation shall, on a timely basis, not less frequently than quarterly, amend or revise and resubmit the reports prepared under this paragraph, as necessary   c congressional testimony the corporation and the primary financial regulatory agency, if any, of the financial company for which the corporation was appointed receiver under this title shall appear before congress, if requested, not later than 30 days after the date on which the corporation first files the reports required under subparagraph a    4 default or in danger of default for purposes of this title, a financial company shall be considered to be in default or in danger of default if, as determined in accordance with subsection b  a a case has been, or likely will promptly be, commenced with respect to the financial company under the bankruptcy code   b the financial company has incurred, or is likely to incur, losses that will deplete all or substantially all of its capital, and there is no reasonable prospect for the company to avoid such depletion   c the assets of the financial company are, or are likely to be, less than its obligations to creditors and others or   d the financial company is, or is likely to be, unable to pay its obligations other than those subject to a bona fide dispute in the normal course of business    5 gao review the comptroller general of the united states shall review and report to congress on any determination under subsection b , that results in the appointment of the corporation as receiver, including  a the basis for the determination   b the purpose for which any action was taken pursuant thereto   c the likely effect of the determination and such action on the incentives and conduct of financial companies and their creditors, counterparties, and shareholders and   d the likely disruptive effect of the determination and such action on the reasonable expectations of creditors, counterparties, and shareholders, taking into account the impact any action under this title would have on financial stability in the united states, including whether the rights of such parties will be disrupted     d corporation policies and procedures as soon as is practicable after the date of enactment of this act, the corporation shall establish policies and procedures that are acceptable to the secretary governing the use of funds available to the corporation to carry out this title, including the terms and conditions for the provision and use of funds under sections 204 d , 210 h 2 g iv , and 210 h 9   e treatment of insurance companies and insurance company subsidiaries  1 in general notwithstanding subsection b , if an insurance company is a covered financial company or a subsidiary or affiliate of a covered financial company, the liquidation or rehabilitation of such insurance company, and any subsidiary or affiliate of such company that is not excepted under paragraph 2 , shall be conducted as provided under applicable state law   2 exception for subsidiaries and affiliates the requirement of paragraph 1 shall not apply with respect to any subsidiary or affiliate of an insurance company that is not itself an insurance company   3 backup authority notwithstanding paragraph 1 , with respect to a covered financial company described in paragraph 1 , if, after the end of the 60-day period beginning on the date on which a determination is made under section 202 a with respect to such company, the appropriate regulatory agency has not filed the appropriate judicial action in the appropriate state court to place such company into orderly liquidation under the laws and requirements of the state, the corporation shall have the authority to stand in the place of the appropriate regulatory agency and file the appropriate judicial action in the appropriate state court to place such company into orderly liquidation under the laws and requirements of the state     sec 204 orderly liquidation of covered financial companies  a purpose of orderly liquidation authority it is the purpose of this title to provide the necessary authority to liquidate failing financial companies that pose a significant risk to the financial stability of the united states in a manner that mitigates such risk and minimizes moral hazard the authority provided in this title shall be exercised in the manner that best fulfills such purpose, so that  1 creditors and shareholders will bear the losses of the financial company   2 management responsible for the condition of the financial company will not be retained and   3 the corporation and other appropriate agencies will take all steps necessary and appropriate to assure that all parties, including management, directors, and third parties, having responsibility for the condition of the financial company bear losses consistent with their responsibility, including actions for damages, restitution, and recoupment of compensation and other gains not compatible with such responsibility    b corporation as receiver upon the appointment of the corporation under section 202, the corporation shall act as the receiver for the covered financial company, with all of the rights and obligations set forth in this title   c consultation the corporation, as receiver  1 shall consult with the primary financial regulatory agency or agencies of the covered financial company and its covered subsidiaries for purposes of ensuring an orderly liquidation of the covered financial company   2 may consult with, or under subsection a 1 b v or a 1 l of section 210, acquire the services of, any outside experts, as appropriate to inform and aid the corporation in the orderly liquidation process   3 shall consult with the primary financial regulatory agency or agencies of any subsidiaries of the covered financial company that are not covered subsidiaries, and coordinate with such regulators regarding the treatment of such solvent subsidiaries and the separate resolution of any such insolvent subsidiaries under other governmental authority, as appropriate and   4 shall consult with the commission and the securities investor protection corporation in the case of any covered financial company for which the corporation has been appointed as receiver that is a broker or dealer registered with the commission under section 15 b of the securities exchange act of 1934 15 usc 78o b and is a member of the securities investor protection corporation, for the purpose of determining whether to transfer to a bridge financial company organized by the corporation as receiver, without consent of any customer, customer accounts of the covered financial company    d funding for orderly liquidation 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 206 and subject to the plan described in section 210 n 9 , 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 210 b 1 , 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   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 210     sec 205 orderly liquidation of covered brokers and dealers  a appointment of sipc as trustee  1 appointment upon the appointment of the corporation as receiver for any covered broker or dealer, the corporation shall appoint, without any need for court approval, the securities investor protection corporation to act as trustee for the liquidation under the securities investor protection act of 1970 15 usc 78aaa et seq of the covered broker or dealer   2 actions by sipc  a filing upon appointment of sipc under paragraph 1 , sipc shall promptly file with any federal district court of competent jurisdiction specified in section 21 or 27 of the securities exchange act of 1934 15 usc 78u, 78aa , an application for a protective decree under the securities investor protection act of 1970 15 usc 78aaa et seq as to the covered broker or dealer the federal district court shall accept and approve the filing, including outside of normal business hours, and shall immediately issue the protective decree as to the covered broker or dealer   b administration by sipc following entry of the protective decree, and except as otherwise provided in this section, the determination of claims and the liquidation of assets retained in the receivership of the covered broker or dealer and not transferred to the bridge financial company shall be administered under the securities investor protection act of 1970 15 usc 78aaa et seq by sipc, as trustee for the covered broker or dealer   c definition of filing date for purposes of the liquidation proceeding, the term filing date means the date on which the corporation is appointed as receiver of the covered broker or dealer   d determination of claims as trustee for the covered broker or dealer, sipc shall determine and satisfy, consistent with this title and with the securities investor protection act of 1970 15 usc 78aaa et seq , all claims against the covered broker or dealer arising on or before the filing date     b powers and duties of sipc  1 in general except as provided in this section, upon its appointment as trustee for the liquidation of a covered broker or dealer, sipc shall have all of the powers and duties provided by the securities investor protection act of 1970 15 usc 78aaa et seq , including, without limitation, all rights of action against third parties, and shall conduct such liquidation in accordance with the terms of the securities investor protection act of 1970 15 usc 78aaa et seq , except that sipc shall have no powers or duties with respect to assets and liabilities transferred by the corporation from the covered broker or dealer to any bridge financial company established in accordance with this title   2 limitation of powers the exercise by sipc of powers and functions as trustee under subsection a shall not impair or impede the exercise of the powers and duties of the corporation with regard to  a any action, except as otherwise provided in this title  i to make funds available under section 204 d   ii to organize, establish, operate, or terminate any bridge financial company   iii to transfer assets and liabilities   iv to enforce or repudiate contracts or   v to take any other action relating to such bridge financial company under section 210 or    b determining claims under subsection e    3 protective decree sipc and the corporation, in consultation with the commission, shall jointly determine the terms of the protective decree to be filed by sipc with any court of competent jurisdiction under section 21 or 27 of the securities exchange act of 1934 15 usc 78u, 78aa , as required by subsection a   4 qualified financial contracts notwithstanding any provision of the securities investor protection act of 1970 15 usc 78aaa et seq to the contrary including section 5 b 2 c of that act 15 usc 78eee b 2 c , the rights and obligations of any party to a qualified financial contract as that term is defined in section 210 c 8 to which a covered broker or dealer for which the corporation has been appointed receiver is a party shall be governed exclusively by section 210, including the limitations and restrictions contained in section 210 c 10 b    c limitation on court action except as otherwise provided in this title, no court may take any action, including any action pursuant to the securities investor protection act of 1970 15 usc 78aaa et seq or the bankruptcy code, to restrain or affect the exercise of powers or functions of the corporation as receiver for a covered broker or dealer and any claims against the corporation as such receiver shall be determined in accordance with subsection e and such claims shall be limited to money damages   d actions by corporation as receiver  1 in general notwithstanding any other provision of this title, no action taken by the corporation as receiver with respect to a covered broker or dealer shall  a adversely affect the rights of a customer to customer property or customer name securities   b diminish the amount or timely payment of net equity claims of customers or   c otherwise impair the recoveries provided to a customer under the securities investor protection act of 1970 15 usc 78aaa et seq    2 net proceeds the net proceeds from any transfer, sale, or disposition of assets of the covered broker or dealer, or proceeds thereof by the corporation as receiver for the covered broker or dealer shall be for the benefit of the estate of the covered broker or dealer, as provided in this title    e claims against the corporation as receiver any claim against the corporation as receiver for a covered broker or dealer for assets transferred to a bridge financial company established with respect to such covered broker or dealer  1 shall be determined in accordance with section 210 a 2 and   2 may be reviewed by the appropriate district or territorial court of the united states in accordance with section 210 a 5    f satisfaction of customer claims  1 obligations to customers notwithstanding any other provision of this title, all obligations of a covered broker or dealer or of any bridge financial company established with respect to such covered broker or dealer to a customer relating to, or net equity claims based upon, customer property or customer name securities shall be promptly discharged by sipc, the corporation, or the bridge financial company, as applicable, by the delivery of securities or the making of payments to or for the account of such customer, in a manner and in an amount at least as beneficial to the customer as would have been the case had the actual proceeds realized from the liquidation of the covered broker or dealer under this title been distributed in a proceeding under the securities investor protection act of 1970 15 usc 78aaa et seq without the appointment of the corporation as receiver and without any transfer of assets or liabilities to a bridge financial company, and with a filing date as of the date on which the corporation is appointed as receiver   2 satisfaction of claims by sipc sipc, as trustee for a covered broker or dealer, shall satisfy customer claims in the manner and amount provided under the securities investor protection act of 1970 15 usc 78aaa et seq , as if the appointment of the corporation as receiver had not occurred, and with a filing date as of the date on which the corporation is appointed as receiver the corporation shall satisfy customer claims, to the extent that a customer would have received more securities or cash with respect to the allocation of customer property had the covered financial company been subject to a proceeding under the securities investor protection act 15 usc 78aaa et seq without the appointment of the corporation as receiver, and with a filing date as of the date on which the corporation is appointed as receiver    g priorities  1 customer property as trustee for a covered broker or dealer, sipc shall allocate customer property and deliver customer name securities in accordance with section 8 c of the securities investor protection act of 1970 15 usc 78fff2 c   2 other claims all claims other than those described in paragraph 1 including any unpaid claim by a customer for the allowed net equity claim of such customer from customer property shall be paid in accordance with the priorities in section 210 b    h rulemaking the commission and the corporation, after consultation with sipc, shall jointly issue rules to implement this section    sec 206 mandatory terms and conditions for all orderly liquidation actions  in taking action under this title, the corporation shall  1 determine that such action is necessary for purposes of the financial stability of the united states, and not for the purpose of preserving the covered financial company   2 ensure that the shareholders of a covered financial company do not receive payment until after all other claims and the fund are fully paid   3 ensure that unsecured creditors bear losses in accordance with the priority of claim provisions in section 210   4 ensure that management responsible for the failed condition of the covered financial company is removed if such management has not already been removed at the time at which the corporation is appointed receiver   5 ensure that the members of the board of directors or body performing similar functions responsible for the failed condition of the covered financial company are removed, if such members have not already been removed at the time the corporation is appointed as receiver and   6 not take an equity interest in or become a shareholder of any covered financial company or any covered subsidiary     sec 207 directors not liable for acquiescing in appointment of receiver  the members of the board of directors or body performing similar functions of a covered financial company shall not be liable to the shareholders or creditors thereof for acquiescing in or consenting in good faith to the appointment of the corporation as receiver for the covered financial company under section 203    sec 208 dismissal and exclusion of other actions  a in general effective as of the date of the appointment of the corporation as receiver for the covered financial company under section 202 or the appointment of sipc as trustee for a covered broker or dealer under section 205, as applicable, any case or proceeding commenced with respect to the covered financial company under the bankruptcy code or the securities investor protection act of 1970 15 usc 78aaa et seq shall be dismissed, upon notice to the bankruptcy court with respect to a case commenced under the bankruptcy code , and upon notice to sipc with respect to a covered broker or dealer and no such case or proceeding may be commenced with respect to a covered financial company at any time while the orderly liquidation is pending   b revesting of assets effective as of the date of appointment of the corporation as receiver, the assets of a covered financial company shall, to the extent they have vested in any entity other than the covered financial company as a result of any case or proceeding commenced with respect to the covered financial company under the bankruptcy code, the securities investor protection act of 1970 15 usc 78aaa et seq , or any similar provision of state liquidation or insolvency law applicable to the covered financial company, revest in the covered financial company   c limitation notwithstanding subsections a and b , any order entered or other relief granted by a bankruptcy court prior to the date of appointment of the corporation as receiver shall continue with the same validity as if an orderly liquidation had not been commenced    sec 209 rulemaking non-conflicting law  the corporation shall, in consultation with the council, prescribe such rules or regulations as the corporation considers necessary or appropriate to implement this title, including rules and regulations with respect to the rights, interests, and priorities of creditors, counterparties, security entitlement holders, or other persons with respect to any covered financial company or any assets or other property of or held by such covered financial company, and address the potential for conflicts of interest between or among individual receiverships established under this title or under the federal deposit insurance act to the extent possible, the corporation shall seek to harmonize applicable rules and regulations promulgated under this section with the insolvency laws that would otherwise apply to a covered financial company    sec 210 powers and duties of the corporation  a powers and authorities  1 general powers  a successor to covered financial company the corporation shall, upon appointment as receiver for a covered financial company under this title, succeed to  i all rights, titles, powers, and privileges of the covered financial company and its assets, and of any stockholder, member, officer, or director of such company and   ii title to the books, records, and assets of any previous receiver or other legal custodian of such covered financial company    b operation of the covered financial company during the period of orderly liquidation the corporation, as receiver for a covered financial company, may  i take over the assets of and operate the covered financial company with all of the powers of the members or shareholders, the directors, and the officers of the covered financial company, and conduct all business of the covered financial company   ii collect all obligations and money owed to the covered financial company   iii perform all functions of the covered financial company, in the name of the covered financial company   iv manage the assets and property of the covered financial company, consistent with maximization of the value of the assets in the context of the orderly liquidation and   v provide by contract for assistance in fulfilling any function, activity, action, or duty of the corporation as receiver    c functions of covered financial company officers, directors, and shareholders the corporation may provide for the exercise of any function by any member or stockholder, director, or officer of any covered financial company for which the corporation has been appointed as receiver under this title   d additional powers as receiver the corporation shall, as receiver for a covered financial company, and subject to all legally enforceable and perfected security interests and all legally enforceable security entitlements in respect of assets held by the covered financial company, liquidate, and wind-up the affairs of a covered financial company, including taking steps to realize upon the assets of the covered financial company, in such manner as the corporation deems appropriate, including through the sale of assets, the transfer of assets to a bridge financial company established under subsection h , or the exercise of any other rights or privileges granted to the receiver under this section   e additional powers with respect to failing subsidiaries of a covered financial company  i in general in any case in which a receiver is appointed for a covered financial company under section 202, the corporation may appoint itself as receiver of any covered subsidiary of the covered financial company that is organized under federal law or the laws of any state, if the corporation and the secretary jointly determine that  i the covered subsidiary is in default or in danger of default   ii such action would avoid or mitigate serious adverse effects on the financial stability or economic conditions of the united states and   iii such action would facilitate the orderly liquidation of the covered financial company    ii treatment as covered financial company if the corporation is appointed as receiver of a covered subsidiary of a covered financial company under clause i , the covered subsidiary shall thereafter be considered a covered financial company under this title, and the corporation shall thereafter have all the powers and rights with respect to that covered subsidiary as it has with respect to a covered financial company under this title    f organization of bridge companies the corporation, as receiver for a covered financial company, may organize a bridge financial company under subsection h   g merger transfer of assets and liabilities  i in general subject to clauses ii and iii , the corporation, as receiver for a covered financial company, may  i merge the covered financial company with another company or   ii transfer any asset or liability of the covered financial company including any assets and liabilities held by the covered financial company for security entitlement holders, any customer property, or any assets and liabilities associated with any trust or custody business without obtaining any approval, assignment, or consent with respect to such transfer    ii federal agency approval antitrust review with respect to a transaction described in clause i i that requires approval by a federal agency  i the transaction may not be consummated before the 5th calendar day after the date of approval by the federal agency responsible for such approval   ii if, in connection with any such approval, a report on competitive factors is required, the federal agency responsible for such approval shall promptly notify the attorney general of the united states of the proposed transaction, and the attorney general shall provide the required report not later than 10 days after the date of the request and   iii if notification under section 7a of the clayton act is required with respect to such transaction, then the required waiting period shall end on the 15th day after the date on which the attorney general and the federal trade commission receive such notification, unless the waiting period is terminated earlier under subsection b 2 of such section 7a, or is extended pursuant to subsection e 2 of such section 7a    iii setoff subject to the other provisions of this title, any transferee of assets from a receiver, including a bridge financial company, shall be subject to such claims or rights as would prevail over the rights of such transferee in such assets under applicable noninsolvency law    h payment of valid obligations the corporation, as receiver for a covered financial company, shall, to the extent that funds are available, pay all valid obligations of the covered financial company that are due and payable at the time of the appointment of the corporation as receiver, in accordance with the prescriptions and limitations of this title   i applicable noninsolvency law except as may otherwise be provided in this title, the applicable noninsolvency law shall be determined by the noninsolvency choice of law rules otherwise applicable to the claims, rights, titles, persons, or entities at issue   j subpoena authority  i in general the corporation, as receiver for a covered financial company, may, for purposes of carrying out any power, authority, or duty with respect to the covered financial company including determining any claim against the covered financial company and determining and realizing upon any asset of any person in the course of collecting money due the covered financial company , exercise any power established under section 8 n of the federal deposit insurance act, as if the corporation were the appropriate federal banking agency for the covered financial company, and the covered financial company were an insured depository institution   ii rule of construction this subparagraph may not be construed as limiting any rights that the corporation, in any capacity, might otherwise have to exercise any powers described in clause i or under any other provision of law    k incidental powers the corporation, as receiver for a covered financial company, may exercise all powers and authorities specifically granted to receivers under this title, and such incidental powers as shall be necessary to carry out such powers under this title   l utilization of private sector in carrying out its responsibilities in the management and disposition of assets from the covered financial company, the corporation, as receiver for a covered financial company, may utilize the services of private persons, including real estate and loan portfolio asset management, property management, auction marketing, legal, and brokerage services, if such services are available in the private sector, and the corporation determines that utilization of such services is practicable, efficient, and cost effective   m shareholders and creditors of covered financial company notwithstanding any other provision of law, the corporation, as receiver for a covered financial company, shall succeed by operation of law to the rights, titles, powers, and privileges described in subparagraph a , and shall terminate all rights and claims that the stockholders and creditors of the covered financial company may have against the assets of the covered financial company or the corporation arising out of their status as stockholders or creditors, except for their right to payment, resolution, or other satisfaction of their claims, as permitted under this section the corporation shall ensure that shareholders and unsecured creditors bear losses, consistent with the priority of claims provisions under this section   n coordination with foreign financial authorities the corporation, as receiver for a covered financial company, shall coordinate, to the maximum extent possible, with the appropriate foreign financial authorities regarding the orderly liquidation of any covered financial company that has assets or operations in a country other than the united states   o restriction on transfers  i selection of accounts for transfer if the corporation establishes one or more bridge financial companies with respect to a covered broker or dealer, the corporation shall transfer to one of such bridge financial companies, all customer accounts of the covered broker or dealer, and all associated customer name securities and customer property, unless the corporation, after consulting with the commission and sipc, determines that  i the customer accounts, customer name securities, and customer property are likely to be promptly transferred to another broker or dealer that is registered with the commission under section 15 b of the securities exchange act of 1934 15 usc 73o b and is a member of sipc or   ii the transfer of the accounts to a bridge financial company would materially interfere with the ability of the corporation to avoid or mitigate serious adverse effects on financial stability or economic conditions in the united states    ii transfer of property sipc, as trustee for the liquidation of the covered broker or dealer, and the commission shall provide any and all reasonable assistance necessary to complete such transfers by the corporation   iii customer consent and court approval not required neither customer consent nor court approval shall be required to transfer any customer accounts or associated customer name securities or customer property to a bridge financial company in accordance with this section   iv notification of sipc and sharing of information the corporation shall identify to sipc the customer accounts and associated customer name securities and customer property transferred to the bridge financial company the corporation and sipc shall cooperate in the sharing of any information necessary for each entity to discharge its obligations under this title and under the securities investor protection act of 1970 15 usc 78aaa et seq including by providing access to the books and records of the covered financial company and any bridge financial company established in accordance with this title     2 determination of claims  a in general the corporation, as receiver for a covered financial company, shall report on claims, as set forth in section 203 c 3 subject to paragraph 4 of this subsection, the corporation, as receiver for a covered financial company, shall determine claims in accordance with the requirements of this subsection and regulations prescribed under section 209   b notice requirements the corporation, as receiver for a covered financial company, in any case involving the liquidation or winding up of the affairs of a covered financial company, shall  i promptly publish a notice to the creditors of the covered financial company to present their claims, together with proof, to the receiver by a date specified in the notice, which shall be not earlier than 90 days after the date of publication of such notice and   ii republish such notice 1 month and 2 months, respectively, after the date of publication under clause i    c mailing required the corporation as receiver shall mail a notice similar to the notice published under clause i or ii of subparagraph b , at the time of such publication, to any creditor shown on the books and records of the covered financial company  i at the last address of the creditor appearing in such books   ii in any claim filed by the claimant or   iii upon discovery of the name and address of a claimant not appearing on the books and records of the covered financial company, not later than 30 days after the date of the discovery of such name and address     3 procedures for resolution of claims  a decision period  i in general prior to the 180th day after the date on which a claim against a covered financial company is filed with the corporation as receiver, or such later date as may be agreed as provided in clause ii , the corporation shall notify the claimant whether it allows or disallows the claim, in accordance with subparagraphs b , c , and d   ii extension of time by written agreement executed not later than 180 days after the date on which a claim against a covered financial company is filed with the corporation, the period described in clause i may be extended by written agreement between the claimant and the corporation failure to notify the claimant of any disallowance within the time period set forth in clause i , as it may be extended by agreement under this clause, shall be deemed to be a disallowance of such claim, and the claimant may file or continue an action in court, as provided in paragraph 4   iii mailing of notice sufficient the requirements of clause i shall be deemed to be satisfied if the notice of any decision with respect to any claim is mailed to the last address of the claimant which appears  i on the books, records, or both of the covered financial company   ii in the claim filed by the claimant or   iii in documents submitted in proof of the claim    iv contents of notice of disallowance if the corporation as receiver disallows any claim filed under clause i , the notice to the claimant shall contain  i a statement of each reason for the disallowance and   ii the procedures required to file or continue an action in court, as provided in paragraph 4     b allowance of proven claim the receiver shall allow any claim received by the receiver on or before the date specified in the notice under paragraph 2 b i , which is proved to the satisfaction of the receiver   c disallowance of claims filed after end of filing period  i in general except as provided in clause ii , claims filed after the date specified in the notice published under paragraph 2 b i shall be disallowed, and such disallowance shall be final   ii certain exceptions clause i shall not apply with respect to any claim filed by a claimant after the date specified in the notice published under paragraph 2 b i , and such claim may be considered by the receiver under subparagraph b , if  i the claimant did not receive notice of the appointment of the receiver in time to file such claim before such date and   ii such claim is filed in time to permit payment of such claim     d authority to disallow claims  i in general the corporation may disallow any portion of any claim by a creditor or claim of a security, preference, setoff, or priority which is not proved to the satisfaction of the corporation   ii payments to undersecured creditors in the case of a claim against a covered financial company that is secured by any property or other asset of such covered financial company, the receiver  i may treat the portion of such claim which exceeds an amount equal to the fair market value of such property or other asset as an unsecured claim and   ii may not make any payment with respect to such unsecured portion of the claim, other than in connection with the disposition of all claims of unsecured creditors of the covered financial company    iii exceptions no provision of this paragraph shall apply with respect to  i any extension of credit from any federal reserve bank, or the corporation, to any covered financial company or   ii subject to clause ii , any legally enforceable and perfected security interest in the assets of the covered financial company securing any such extension of credit     e legal effect of filing  i statute of limitations tolled for purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action   ii no prejudice to other actions subject to paragraph 8 , the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the date of appointment of the receiver for the covered financial company     4 judicial determination of claims  a in general subject to subparagraph b , a claimant may file suit on a claim or continue an action commenced before the date of appointment of the corporation as receiver in the district or territorial court of the united states for the district within which the principal place of business of the covered financial company is located and such court shall have jurisdiction to hear such claim   b timing a claim under subparagraph a may be filed before the end of the 60-day period beginning on the earlier of  i the end of the period described in paragraph 3 a i or, if extended by agreement of the corporation and the claimant, the period described in paragraph 3 a ii with respect to any claim against a covered financial company for which the corporation is receiver or   ii the date of any notice of disallowance of such claim pursuant to paragraph 3 a i    c statute of limitations if any claimant fails to file suit on such claim or to continue an action on such claim commenced before the date of appointment of the corporation as receiver prior to the end of the 60-day period described in subparagraph b , the claim shall be deemed to be disallowed other than any portion of such claim which was allowed by the receiver as of the end of such period, such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim    5 expedited determination of claims  a procedure required the corporation shall establish a procedure for expedited relief outside of the claims process established under paragraph 3 , for any claimant that alleges  i having a legally valid and enforceable or perfected security interest in property of a covered financial company or control of any legally valid and enforceable security entitlement in respect of any asset held by the covered financial company for which the corporation has been appointed receiver and   ii that irreparable injury will occur if the claims procedure established under paragraph 3 is followed    b determination period prior to the end of the 90-day period beginning on the date on which a claim is filed in accordance with the procedures established pursuant to subparagraph a , the corporation shall  i determine  i whether to allow or disallow such claim, or any portion thereof or   ii whether such claim should be determined pursuant to the procedures established pursuant to paragraph 3    ii notify the claimant of the determination and   iii if the claim is disallowed, provide a statement of each reason for the disallowance and the procedure for obtaining a judicial determination    c period for filing or renewing suit any claimant who files a request for expedited relief shall be permitted to file suit or continue a suit filed before the date of appointment of the corporation as receiver seeking a determination of the rights of the claimant with respect to such security interest or such security entitlement after the earlier of  i the end of the 90-day period beginning on the date of the filing of a request for expedited relief or   ii the date on which the corporation denies the claim or a portion thereof    d statute of limitations if an action described in subparagraph c is not filed, or the motion to renew a previously filed suit is not made, before the end of the 30-day period beginning on the date on which such action or motion may be filed in accordance with subparagraph c , the claim shall be deemed to be disallowed as of the end of such period other than any portion of such claim which was allowed by the receiver , such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim   e legal effect of filing  i statute of limitations tolled for purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action   ii no prejudice to other actions subject to paragraph 8 , the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the appointment of the corporation as receiver for the covered financial company     6 agreements against interest of the receiver no agreement that tends to diminish or defeat the interest of the corporation as receiver in any asset acquired by the receiver under this section shall be valid against the receiver, unless such agreement  a is in writing   b was executed by an authorized officer or representative of the covered financial company, or confirmed in the ordinary course of business by the covered financial company and   c has been, since the time of its execution, an official record of the company or the party claiming under the agreement provides documentation, acceptable to the receiver, of such agreement and its authorized execution or confirmation by the covered financial company    7 payment of claims  a in general subject to subparagraph b , the corporation as receiver may, in its discretion and to the extent that funds are available, pay creditor claims, in such manner and amounts as are authorized under this section, which are  i allowed by the receiver   ii approved by the receiver pursuant to a final determination pursuant to paragraph 3 or 5 , as applicable or   iii determined by the final judgment of a court of competent jurisdiction    b limitation a creditor shall, in no event, receive less than the amount that the creditor is entitled to receive under paragraphs 2 and 3 of subsection d , as applicable   c payment of dividends on claims the corporation as receiver may, in its sole discretion, and to the extent otherwise permitted by this section, pay dividends on proven claims at any time, and no liability shall attach to the corporation as receiver, by reason of any such payment or for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment   d rulemaking by the corporation the corporation may prescribe such rules, including definitions of terms, as the corporation deems appropriate to establish an interest rate for or to make payments of post-insolvency interest to creditors holding proven claims against the receivership estate of a covered financial company, except that no such interest shall be paid until the corporation as receiver has satisfied the principal amount of all creditor claims    8 suspension of legal actions  a in general after the appointment of the corporation as receiver for a covered financial company, the corporation may request a stay in any judicial action or proceeding in which such covered financial company is or becomes a party, for a period of not to exceed 90 days   b grant of stay by all courts required upon receipt of a request by the corporation pursuant to subparagraph a , the court shall grant such stay as to all parties    9 additional rights and duties  a prior final adjudication the corporation shall abide by any final, non-appealable judgment of any court of competent jurisdiction that was rendered before the appointment of the corporation as receiver   b rights and remedies of receiver in the event of any appealable judgment, the corporation as receiver shall  i have all the rights and remedies available to the covered financial company before the date of appointment of the corporation as receiver under section 202 and the corporation, including removal to federal court and all appellate rights and   ii not be required to post any bond in order to pursue such remedies    c no attachment or execution no attachment or execution may be issued by any court upon assets in the possession of the corporation as receiver for a covered financial company   d limitation on judicial review except as otherwise provided in this title, no court shall have jurisdiction over  i any claim or action for payment from, or any action seeking a determination of rights with respect to, the assets of any covered financial company for which the corporation has been appointed receiver, including any assets which the corporation may acquire from itself as such receiver or   ii any claim relating to any act or omission of such covered financial company or the corporation as receiver    e disposition of assets in exercising any right, power, privilege, or authority as receiver in connection with any covered financial company for which the corporation is acting as receiver under this section, the corporation shall, to the greatest extent practicable, conduct its operations in a manner that  i maximizes the net present value return from the sale or disposition of such assets   ii minimizes the amount of any loss realized in the resolution of cases   iii mitigates the potential for serious adverse effects to the financial system   iv ensures timely and adequate competition and fair and consistent treatment of offerors and   v prohibits discrimination on the basis of race, sex, or ethnic group in the solicitation and consideration of offers     10 statute of limitations for actions brought by receiver  a in general notwithstanding any provision of any contract, the applicable statute of limitations with regard to any action brought by the corporation as receiver for a covered financial company shall be  i in the case of any contract claim, the longer of  i the 6-year period beginning on the date on which the claim accrues or   ii the period applicable under state law and    ii in the case of any tort claim, the longer of  i the 3-year period beginning on the date on which the claim accrues or   ii the period applicable under state law     b date on which a claim accrues for purposes of subparagraph a , the date on which the statute of limitations begins to run on any claim described in subparagraph a shall be the later of  i the date of the appointment of the corporation as receiver under this title or   ii the date on which the cause of action accrues    c revival of expired state causes of action  i in general in the case of any tort claim described in clause ii for which the applicable statute of limitations under state law has expired not more than 5 years before the date of appointment of the corporation as receiver for a covered financial company, the corporation may bring an action as receiver on such claim without regard to the expiration of the statute of limitations   ii claims described a tort claim referred to in clause i is a claim arising from fraud, intentional misconduct resulting in unjust enrichment, or intentional misconduct resulting in substantial loss to the covered financial company     11 avoidable transfers  a fraudulent transfers the corporation, as receiver for any covered financial company, may avoid a transfer of any interest of the covered financial company in property, or any obligation incurred by the covered financial company, that was made or incurred at or within 2 years before the date on which the corporation was appointed receiver, if  i the covered financial company voluntarily or involuntarily  i made such transfer or incurred such obligation with actual intent to hinder, delay, or defraud any entity to which the covered financial company was or became, on or after the date on which such transfer was made or such obligation was incurred, indebted or   ii received less than a reasonably equivalent value in exchange for such transferor obligation and    ii the covered financial company voluntarily or involuntarily  i was insolvent on the date that such transfer was made or such obligation was incurred, or became insolvent as a result of such transfer or obligation   ii was engaged in business or a transaction, or was about to engage in business or a transaction, for which any property remaining with the covered financial company was an unreasonably small capital   iii intended to incur, or believed that the covered financial company would incur, debts that would be beyond the ability of the covered financial company to pay as such debts matured or   iv made such transfer to or for the benefit of an insider, or incurred such obligation to or for the benefit of an insider, under an employment contract and not in the ordinary course of business     b preferential transfers the corporation as receiver for any covered financial company may avoid a transfer of an interest of the covered financial company in property  i to or for the benefit of a creditor   ii for or on account of an antecedent debt that was owed by the covered financial company before the transfer was made   iii that was made while the covered financial company was insolvent   iv that was made  i 90 days or less before the date on which the corporation was appointed receiver or   ii more than 90 days, but less than 1 year before the date on which the corporation was appointed receiver, if such creditor at the time of the transfer was an insider and    v that enables the creditor to receive more than the creditor would receive if  i the covered financial company had been liquidated under chapter 7 of the bankruptcy code   ii the transfer had not been made and   iii the creditor received payment of such debt to the extent provided by the provisions of chapter 7 of the bankruptcy code     c post-receivership transactions the corporation as receiver for any covered financial company may avoid a transfer of property of the receivership that occurred after the corporation was appointed receiver that was not authorized under this title by the corporation as receiver   d right of recovery to the extent that a transfer is avoided under subparagraph a , b , or c , the corporation may recover, for the benefit of the covered financial company, the property transferred or, if a court so orders, the value of such property at the time of such transfer from  i the initial transferee of such transfer or the person for whose benefit such transfer was made or   ii any immediate or mediate transferee of any such initial transferee    e rights of transferee or obligee the corporation may not recover under subparagraph d ii from  i any transferee that takes for value, including in satisfaction of or to secure a present or antecedent debt, in good faith, and without knowledge of the voidability of the transfer avoided or   ii any immediate or mediate good faith transferee of such transferee    f defenses subject to the other provisions of this title  i a transferee or obligee from which the corporation seeks to recover a transfer or to avoid an obligation under subparagraph a , b , c , or d shall have the same defenses available to a transferee or obligee from which a trustee seeks to recover a transfer or avoid an obligation under sections 547, 548, and 549 of the bankruptcy code and   ii the authority of the corporation to recover a transfer or avoid an obligation shall be subject to subsections b and c of section 546, section 547 c , and section 548 c of the bankruptcy code    g rights under this section the rights of the corporation as receiver under this section shall be superior to any rights of a trustee or any other party other than a federal agency under the bankruptcy code   h rules of construction definitions for purposes of  i subparagraphs a and b  i the term insider has the same meaning as in section 101 31 of the bankruptcy code   ii a transfer is made when such transfer is so perfected that a bona fide purchaser from the covered financial company against whom applicable law permits such transfer to be perfected cannot acquire an interest in the property transferred that is superior to the interest in such property of the transferee, but if such transfer is not so perfected before the date on which the corporation is appointed as receiver for the covered financial company, such transfer is made immediately before the date of such appointment and   iii the term value means property, or satisfaction or securing of a present or antecedent debt of the covered financial company, but does not include an unperformed promise to furnish support to the covered financial company and    ii subparagraph b  i the covered financial company is presumed to have been insolvent on and during the 90-day period immediately preceding the date of appointment of the corporation as receiver and   ii the term insolvent has the same meaning as in section 101 32 of the bankruptcy code      12 setoff  a generally except as otherwise provided in this title, any right of a creditor to offset a mutual debt owed by the creditor to any covered financial company that arose before the corporation was appointed as receiver for the covered financial company against a claim of such creditor may be asserted if enforceable under applicable noninsolvency law, except to the extent that  i the claim of the creditor against the covered financial company is disallowed   ii the claim was transferred, by an entity other than the covered financial company, to the creditor  i after the corporation was appointed as receiver of the covered financial company or   ii  aa after the 90-day period preceding the date on which the corporation was appointed as receiver for the covered financial company and   bb while the covered financial company was insolvent except for a setoff in connection with a qualified financial contract or     iii the debt owed to the covered financial company was incurred by the covered financial company  i after the 90-day period preceding the date on which the corporation was appointed as receiver for the covered financial company   ii while the covered financial company was insolvent and   iii for the purpose of obtaining a right of setoff against the covered financial company except for a setoff in connection with a qualified financial contract     b insufficiency  i in general except with respect to a setoff in connection with a qualified financial contract, if a creditor offsets a mutual debt owed to the covered financial company against a claim of the covered financial company on or within the 90-day period preceding the date on which the corporation is appointed as receiver for the covered financial company, the corporation may recover from the creditor the amount so offset, to the extent that any insufficiency on the date of such setoff is less than the insufficiency on the later of  i the date that is 90 days before the date on which the corporation is appointed as receiver for the covered financial company or   ii the first day on which there is an insufficiency during the 90-day period preceding the date on which the corporation is appointed as receiver for the covered financial company    ii definition of insufficiency in this subparagraph, the term insufficiency means the amount, if any, by which a claim against the covered financial company exceeds a mutual debt owed to the covered financial company by the holder of such claim    c insolvency the term insolvent has the same meaning as in section 101 32 of the bankruptcy code   d presumption of insolvency for purposes of this paragraph, the covered financial company is presumed to have been insolvent on and during the 90-day period preceding the date of appointment of the corporation as receiver   e limitation nothing in this paragraph 12 shall be the basis for any right of setoff where no such right exists under applicable noninsolvency law   f priority claim except as otherwise provided in this title, the corporation as receiver for the covered financial company may sell or transfer any assets free and clear of the setoff rights of any party, except that such party shall be entitled to a claim, subordinate to the claims payable under subparagraphs a , b , c , and d of subsection b 1 , but senior to all other unsecured liabilities defined in subsection b 1 e , in an amount equal to the value of such setoff rights    13 attachment of assets and other injunctive relief subject to paragraph 14 , any court of competent jurisdiction may, at the request of the corporation as receiver for a covered financial company, issue an order in accordance with rule 65 of the federal rules of civil procedure, including an order placing the assets of any person designated by the corporation under the control of the court and appointing a trustee to hold such assets   14 standards  a showing rule 65 of the federal rules of civil procedure shall apply with respect to any proceeding under paragraph 13 , without regard to the requirement that the applicant show that the injury, loss, or damage is irreparable and immediate   b state proceeding if, in the case of any proceeding in a state court, the court determines that rules of civil procedure available under the laws of the state provide substantially similar protections of the right of the parties to due process as provided under rule 65 as modified with respect to such proceeding by subparagraph a , the relief sought by the corporation pursuant to paragraph 14 may be requested under the laws of such state    15 treatment of claims arising from breach of contracts executed by the corporation as receiver notwithstanding any other provision of this title, any final and non-appealable judgment for monetary damages entered against the corporation as receiver for a covered financial company for the breach of an agreement executed or approved by the corporation after the date of its appointment shall be paid as an administrative expense of the receiver nothing in this paragraph shall be construed to limit the power of a receiver to exercise any rights under contract or law, including to terminate, breach, cancel, or otherwise discontinue such agreement   16 accounting and recordkeeping requirements  a in general the corporation as receiver for a covered financial company shall, consistent with the accounting and reporting practices and procedures established by the corporation, maintain a full accounting of each receivership or other disposition of any covered financial company   b annual accounting or report with respect to each receivership to which the corporation is appointed, the corporation shall make an annual accounting or report, as appropriate, available to the secretary and the comptroller general of the united states   c availability of reports any report prepared pursuant to subparagraph b and section 203 c 3 shall be made available to the public by the corporation   d recordkeeping requirement  i in general the corporation shall prescribe such regulations and establish such retention schedules as are necessary to maintain the documents and records of the corporation generated in exercising the authorities of this title and the records of a covered financial company for which the corporation is appointed receiver, with due regard for  i the avoidance of duplicative record retention and   ii the expected evidentiary needs of the corporation as receiver for a covered financial company and the public regarding the records of covered financial companies    ii retention of records unless otherwise required by applicable federal law or court order, the corporation may not, at any time, destroy any records that are subject to clause i   iii records defined as used in this subparagraph, the terms records and records of a covered financial company mean any document, book, paper, map, photograph, microfiche, microfilm, computer or electronically-created record generated or maintained by the covered financial company in the course of and necessary to its transaction of business      b priority of expenses and unsecured claims  1 in general unsecured claims against a covered financial company, or the corporation as receiver for such covered financial company under this section, that are proven to the satisfaction of the receiver shall have priority in the following order  a administrative expenses of the receiver   b any amounts owed to the united states, unless the united states agrees or consents otherwise   c wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual other than an individual described in subparagraph g , but only to the extent of $11,725 for each individual as indexed for inflation, by regulation of the corporation earned not later than 180 days before the date of appointment of the corporation as receiver   d contributions owed to employee benefit plans arising from services rendered not later than 180 days before the date of appointment of the corporation as receiver, to the extent of the number of employees covered by each such plan, multiplied by $11,725 as indexed for inflation, by regulation of the corporation , less the aggregate amount paid to such employees under subparagraph c , plus the aggregate amount paid by the receivership on behalf of such employees to any other employee benefit plan   e any other general or senior liability of the covered financial company which is not a liability described under subparagraph f , g , or h   f any obligation subordinated to general creditors which is not an obligation described under subparagraph g or h   g any wages, salaries, or commissions, including vacation, severance, and sick leave pay earned, owed to senior executives and directors of the covered financial company   h any obligation to shareholders, members, general partners, limited partners, or other persons, with interests in the equity of the covered financial company arising as a result of their status as shareholders, members, general partners, limited partners, or other persons with interests in the equity of the covered financial company    2 post-receivership financing priority in the event that the corporation, as receiver for a covered financial company, is unable to obtain unsecured credit for the covered financial company from commercial sources, the corporation as receiver may obtain credit or incur debt on the part of the covered financial company, which shall have priority over any or all administrative expenses of the receiver under paragraph 1 a   3 claims of the united states unsecured claims of the united states shall, at a minimum, have a higher priority than liabilities of the covered financial company that count as regulatory capital   4 creditors similarly situated all claimants of a covered financial company that are similarly situated under paragraph 1 shall be treated in a similar manner, except that the corporation may take any action including making payments, subject to subsection o 1 d i that does not comply with this subsection, if  a the corporation determines that such action is necessary  i to maximize the value of the assets of the covered financial company   ii to initiate and continue operations essential to implementation of the receivership or any bridge financial company   iii to maximize the present value return from the sale or other disposition of the assets of the covered financial company or   iv to minimize the amount of any loss realized upon the sale or other disposition of the assets of the covered financial company and    b all claimants that are similarly situated under paragraph 1 receive not less than the amount provided in paragraphs 2 and 3 of subsection d    5 secured claims unaffected this section shall not affect secured claims or security entitlements in respect of assets or property held by the covered financial company, except to the extent that the security is insufficient to satisfy the claim, and then only with regard to the difference between the claim and the amount realized from the security   6 priority of expenses and unsecured claims in the orderly liquidation of sipc member where the corporation is appointed as receiver for a covered broker or dealer, unsecured claims against such covered broker or dealer, or the corporation as receiver for such covered broker or dealer under this section, that are proven to the satisfaction of the receiver under section 205 e , shall have the priority prescribed in paragraph 1 , except that  a sipc shall be entitled to recover administrative expenses incurred in performing its responsibilities under section 205 on an equal basis with the corporation, in accordance with paragraph 1 a   b the corporation shall be entitled to recover any amounts paid to customers or to sipc pursuant to section 205 f , in accordance with paragraph 1 b   c sipc shall be entitled to recover any amounts paid out of the sipc fund to meet its obligations under section 205 and under the securities investor protection act of 1970 15 usc 78aaa et seq , which claim shall be subordinate to the claims payable under subparagraphs a and b of paragraph 1 , but senior to all other claims and   d the corporation may, after paying any proven claims to customers under section 205 and the securities investor protection act of 1970 15 usc 78aaa et seq , and as provided above, pay dividends on other proven claims, in its discretion, and to the extent that funds are available, in accordance with the priorities set forth in paragraph 1     c provisions relating to contracts entered into before appointment of receiver  1 authority to repudiate contracts in addition to any other rights that a receiver may have, the corporation as receiver for any covered financial company may disaffirm or repudiate any contract or lease  a to which the covered financial company is a party   b the performance of which the corporation as receiver, in the discretion of the corporation, determines to be burdensome and   c the disaffirmance or repudiation of which the corporation as receiver determines, in the discretion of the corporation, will promote the orderly administration of the affairs of the covered financial company    2 timing of repudiation the corporation, as receiver for any covered financial company, shall determine whether or not to exercise the rights of repudiation under this section within a reasonable period of time   3 claims for damages for repudiation  a in general except as provided in paragraphs 4 , 5 , and 6 and in subparagraphs c , d , and e of this paragraph, the liability of the corporation as receiver for a covered financial company for the disaffirmance or repudiation of any contract pursuant to paragraph 1 shall be  i limited to actual direct compensatory damages and   ii determined as of  i the date of the appointment of the corporation as receiver or   ii in the case of any contract or agreement referred to in paragraph 8 , the date of the disaffirmance or repudiation of such contract or agreement     b no liability for other damages for purposes of subparagraph a , the term actual direct compensatory damages does not include  i punitive or exemplary damages   ii damages for lost profits or opportunity or   iii damages for pain and suffering    c measure of damages for repudiation of qualified financial contracts in the case of any qualified financial contract or agreement to which paragraph 8 applies, compensatory damages shall be  i deemed to include normal and reasonable costs of cover or other reasonable measures of damages utilized in the industries for such contract and agreement claims and   ii paid in accordance with this paragraph and subsection d , except as otherwise specifically provided in this subsection    d measure of damages for repudiation or disaffirmance of debt obligation in the case of any debt for borrowed money or evidenced by a security, actual direct compensatory damages shall be no less than the amount lent plus accrued interest plus any accreted original issue discount as of the date the corporation was appointed receiver of the covered financial company and, to the extent that an allowed secured claim is secured by property the value of which is greater than the amount of such claim and any accrued interest through the date of repudiation or disaffirmance, such accrued interest pursuant to paragraph 1   e measure of damages for repudiation or disaffirmance of contingent obligation in the case of any contingent obligation of a covered financial company consisting of any obligation under a guarantee, letter of credit, loan commitment, or similar credit obligation, the corporation may, by rule or regulation, prescribe that actual direct compensatory damages shall be no less than the estimated value of the claim as of the date the corporation was appointed receiver of the covered financial company, as such value is measured based on the likelihood that such contingent claim would become fixed and the probable magnitude thereof    4 leases under which the covered financial company is the lessee  a in general if the corporation as receiver disaffirms or repudiates a lease under which the covered financial company is the lessee, the receiver shall not be liable for any damages other than damages determined pursuant to subparagraph b for the disaffirmance or repudiation of such lease   b payments of rent notwithstanding subparagraph a , the lessor under a lease to which subparagraph a would otherwise apply shall  i be entitled to the contractual rent accruing before the later of the date on which  i the notice of disaffirmance or repudiation is mailed or   ii the disaffirmance or repudiation becomes effective, unless the lessor is in default or breach of the terms of the lease    ii have no claim for damages under any acceleration clause or other penalty provision in the lease and   iii have a claim for any unpaid rent, subject to all appropriate offsets and defenses, due as of the date of the appointment which shall be paid in accordance with this paragraph and subsection d     5 leases under which the covered financial company is the lessor  a in general if the corporation as receiver for a covered financial company repudiates an unexpired written lease of real property of the covered financial company under which the covered financial company is the lessor and the lessee is not, as of the date of such repudiation, in default, the lessee under such lease may either  i treat the lease as terminated by such repudiation or   ii remain in possession of the leasehold interest for the balance of the term of the lease, unless the lessee defaults under the terms of the lease after the date of such repudiation    b provisions applicable to lessee remaining in possession if any lessee under a lease described in subparagraph a remains in possession of a leasehold interest pursuant to clause ii of subparagraph a  i the lessee  i shall continue to pay the contractual rent pursuant to the terms of the lease after the date of the repudiation of such lease and   ii may offset against any rent payment which accrues after the date of the repudiation of the lease, any damages which accrue after such date due to the nonperformance of any obligation of the covered financial company under the lease after such date and    ii the corporation as receiver shall not be liable to the lessee for any damages arising after such date as a result of the repudiation, other than the amount of any offset allowed under clause i ii     6 contracts for the sale of real property  a in general if the receiver repudiates any contract which meets the requirements of subsection a 6 for the sale of real property, and the purchaser of such real property under such contract is in possession and is not, as of the date of such repudiation, in default, such purchaser may either  i treat the contract as terminated by such repudiation or   ii remain in possession of such real property    b provisions applicable to purchaser remaining in possession if any purchaser of real property under any contract described in subparagraph a remains in possession of such property pursuant to clause ii of subparagraph a  i the purchaser  i shall continue to make all payments due under the contract after the date of the repudiation of the contract and   ii may offset against any such payments any damages which accrue after such date due to the nonperformance after such date of any obligation of the covered financial company under the contract and    ii the corporation as receiver shall  i not be liable to the purchaser for any damages arising after such date as a result of the repudiation, other than the amount of any offset allowed under clause i ii   ii deliver title to the purchaser in accordance with the provisions of the contract and   iii have no obligation under the contract other than the performance required under subclause ii     c assignment and sale allowed  i in general no provision of this paragraph shall be construed as limiting the right of the corporation as receiver to assign the contract described in subparagraph a and sell the property, subject to the contract and the provisions of this paragraph   ii no liability after assignment and sale if an assignment and sale described in clause i is consummated, the corporation as receiver shall have no further liability under the contract described in subparagraph a or with respect to the real property which was the subject of such contract     7 provisions applicable to service contracts  a services performed before appointment in the case of any contract for services between any person and any covered financial company for which the corporation has been appointed receiver, any claim of such person for services performed before the date of appointment shall be  i a claim to be paid in accordance with subsections a , b , and d and   ii deemed to have arisen as of the date on which the receiver was appointed    b services performed after appointment and prior to repudiation if, in the case of any contract for services described in subparagraph a , the corporation as receiver accepts performance by the other person before making any determination to exercise the right of repudiation of such contract under this section  i the other party shall be paid under the terms of the contract for the services performed and   ii the amount of such payment shall be treated as an administrative expense of the receivership    c acceptance of performance no bar to subsequent repudiation the acceptance by the corporation as receiver for services referred to in subparagraph b in connection with a contract described in subparagraph b shall not affect the right of the corporation as receiver to repudiate such contract under this section at any time after such performance    8 certain qualified financial contracts  a rights of parties to contracts subject to subsection a 8 and paragraphs 9 and 10 of this subsection, and notwithstanding any other provision of this section, any other provision of federal law, or the law of any state, no person shall be stayed or prohibited from exercising  i any right that such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with a covered financial company which arises upon the date of appointment of the corporation as receiver for such covered financial company or at any time after such appointment   ii any right under any security agreement or arrangement or other credit enhancement related to one or more qualified financial contracts described in clause i or   iii any right to offset or net out any termination value, payment amount, or other transfer obligation arising under or in connection with 1 or more contracts or agreements described in clause i , including any master agreement for such contracts or agreements    b applicability of other provisions subsection a 8 shall apply in the case of any judicial action or proceeding brought against the corporation as receiver referred to in subparagraph a , or the subject covered financial company, by any party to a contract or agreement described in subparagraph a i with such covered financial company   c certain transfers not avoidable  i in general notwithstanding subsection a 11 , a 12 , or c 12 , section 5242 of the revised statutes of the united states, or any other provision of federal or state law relating to the avoidance of preferential or fraudulent transfers, the corporation, whether acting as the corporation or as receiver for a covered financial company, may not avoid any transfer of money or other property in connection with any qualified financial contract with a covered financial company   ii exception for certain transfers clause i shall not apply to any transfer of money or other property in connection with any qualified financial contract with a covered financial company if the transferee had actual intent to hinder, delay, or defraud such company, the creditors of such company, or the corporation as receiver appointed for such company    d certain contracts and agreements defined for purposes of this subsection, the following definitions shall apply  i qualified financial contract the term qualified financial contract means any securities contract, commodity contract, forward contract, repurchase agreement, swap agreement, and any similar agreement that the corporation determines by regulation, resolution, or order to be a qualified financial contract for purposes of this paragraph   ii securities contract the term securities contract  i means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein including any interest therein or based on the value thereof , or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option whether or not such repurchase or reverse repurchase transaction is a repurchase agreement , as defined in clause v   ii does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan unless the corporation determines by regulation, resolution, or order to include any such agreement within the meaning of such term   iii means any option entered into on a national securities exchange relating to foreign currencies   iv means the guarantee including by novation by or to any securities clearing agency of any settlement of cash, securities, certificates of deposit, mortgage loans or interests therein, group or index of securities, certificates of deposit or mortgage loans or interests therein including any interest therein or based on the value thereof or an option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option whether or not such settlement is in connection with any agreement or transaction referred to in subclauses i through xii other than subclause ii   v means any margin loan   vi means any extension of credit for the clearance or settlement of securities transactions   vii means any loan transaction coupled with a securities collar transaction, any prepaid securities forward transaction, or any total return swap transaction coupled with a securities sale transaction   viii means any other agreement or transaction that is similar to any agreement or transaction referred to in this clause   ix means any combination of the agreements or transactions referred to in this clause   x means any option to enter into any agreement or transaction referred to in this clause   xi means a master agreement that provides for an agreement or transaction referred to in any of subclauses i through x , other than subclause ii , together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause, except that the master agreement shall be considered to be a securities contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in any of subclauses i through x , other than subclause ii and   xii means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause    iii commodity contract the term commodity contract means  i with respect to a futures commission merchant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade   ii with respect to a foreign futures commission merchant, a foreign future   iii with respect to a leverage transaction merchant, a leverage transaction   iv with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization   v with respect to a commodity options dealer, a commodity option   vi any other agreement or transaction that is similar to any agreement or transaction referred to in this clause   vii any combination of the agreements or transactions referred to in this clause   viii any option to enter into any agreement or transaction referred to in this clause   ix a master agreement that provides for an agreement or transaction referred to in any of subclauses i through viii , together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in any of subclauses i through viii or   x any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause    iv forward contract the term forward contract means  i a contract other than a commodity contract for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date that is more than 2 days after the date on which the contract is entered into, including a repurchase or reverse repurchase transaction whether or not such repurchase or reverse repurchase transaction is a repurchase agreement , as defined in clause v , consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement   ii any combination of agreements or transactions referred to in subclauses i and iii   iii any option to enter into any agreement or transaction referred to in subclause i or ii   iv a master agreement that provides for an agreement or transaction referred to in subclause i , ii , or iii , together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause, except that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause i , ii , or iii or   v any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause i , ii , iii , or iv , including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause    v repurchase agreement the term repurchase agreement which definition also applies to a reverse repurchase agreement  i means an agreement, including related terms, which provides for the transfer of one or more certificates of deposit, mortgage related securities as such term is defined in section 3 of the securities exchange act of 1934 , mortgage loans, interests in mortgage-related securities or mortgage loans, eligible bankers acceptances, qualified foreign government securities which, for purposes of this clause, means a security that is a direct obligation of, or that is fully guaranteed by, the central government of a member of the organization for economic cooperation and development, as determined by regulation or order adopted by the board of governors , or securities that are direct obligations of, or that are fully guaranteed by, the united states or any agency of the united states against the transfer of funds by the transferee of such certificates of deposit, eligible bankers acceptances, securities, mortgage loans, or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers acceptances, securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement   ii does not include any repurchase obligation under a participation in a commercial mortgage loan, unless the corporation determines, by regulation, resolution, or order to include any such participation within the meaning of such term   iii means any combination of agreements or transactions referred to in subclauses i and iv   iv means any option to enter into any agreement or transaction referred to in subclause i or iii   v means a master agreement that provides for an agreement or transaction referred to in subclause i , iii , or iv , together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this clause, except that the master agreement shall be considered to be a repurchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause i , iii , or iv and   vi means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause i , iii , iv , or v , including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause    vi swap agreement the term swap agreement means  i any agreement, including the terms and conditions incorporated by reference in any such agreement, which is an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap a spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange, precious metals, or other commodity agreement a currency swap, option, future, or forward agreement an equity index or equity swap, option, future, or forward agreement a debt index or debt swap, option, future, or forward agreement a total return, credit spread or credit swap, option, future, or forward agreement a commodity index or commodity swap, option, future, or forward agreement weather swap, option, future, or forward agreement an emissions swap, option, future, or forward agreement or an inflation swap, option, future, or forward agreement   ii any agreement or transaction that is similar to any other agreement or transaction referred to in this clause and that is of a type that has been, is presently, or in the future becomes, the subject of recurrent dealings in the swap or other derivatives markets including terms and conditions incorporated by reference in such agreement and that is a forward, swap, future, option, or spot transaction on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, quantitative measures associated with an occurrence, extent of an occurrence, or contingency associated with a financial, commercial, or economic consequence, or economic or financial indices or measures of economic or financial risk or value   iii any combination of agreements or transactions referred to in this clause   iv any option to enter into any agreement or transaction referred to in this clause   v a master agreement that provides for an agreement or transaction referred to in subclause i , ii , iii , or iv , together with all supplements to any such master agreement, without regard to whether the master agreement contains an agreement or transaction that is not a swap agreement under this clause, except that the master agreement shall be considered to be a swap agreement under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause i , ii , iii , or iv and   vi any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in any of subclauses i through v , including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such clause    vii definitions relating to default when used in this paragraph and paragraphs 9 and 10  i the term default means, with respect to a covered financial company, any adjudication or other official decision by any court of competent jurisdiction, or other public authority pursuant to which the corporation has been appointed receiver and   ii the term in danger of default means a covered financial company with respect to which the corporation or appropriate state authority has determined that  aa in the opinion of the corporation or such authority  ex11 > aa the covered financial company is not likely to be able to pay its obligations in the normal course of business and   ex11 > bb there is no reasonable prospect that the covered financial company will be able to pay such obligations without federal assistance or    bb in the opinion of the corporation or such authority  ex11 > aa the covered financial company has incurred or is likely to incur losses that will deplete all or substantially all of its capital and   ex11 > bb there is no reasonable prospect that the capital will be replenished without federal assistance      viii treatment of master agreement as one agreement any master agreement for any contract or agreement described in any of clauses i through vi or any master agreement for such master agreement or agreements , together with all supplements to such master agreement, shall be treated as a single agreement and a single qualified financial contact if a master agreement contains provisions relating to agreements or transactions that are not themselves qualified financial contracts, the master agreement shall be deemed to be a qualified financial contract only with respect to those transactions that are themselves qualified financial contracts   ix transfer the term transfer means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or with an interest in property, including retention of title as a security interest and foreclosure of the equity of redemption of the covered financial company   x person the term person includes any governmental entity in addition to any entity included in the definition of such term in section 1, title 1, united states code    e clarification no provision of law shall be construed as limiting the right or power of the corporation, or authorizing any court or agency to limit or delay, in any manner, the right or power of the corporation to transfer any qualified financial contract or to disaffirm or repudiate any such contract in accordance with this subsection   f walkaway clauses not effective  i in general notwithstanding the provisions of subparagraph a of this paragraph and sections 403 and 404 of the federal deposit insurance corporation improvement act of 1991, no walkaway clause shall be enforceable in a qualified financial contract of a covered financial company in default   ii limited suspension of certain obligations in the case of a qualified financial contract referred to in clause i , any payment or delivery obligations otherwise due from a party pursuant to the qualified financial contract shall be suspended from the time at which the corporation is appointed as receiver until the earlier of  i the time at which such party receives notice that such contract has been transferred pursuant to paragraph 10 a or   ii 5 00 pm eastern time on the business day following the date of the appointment of the corporation as receiver    iii walkaway clause defined for purposes of this subparagraph, the term walkaway clause means any provision in a qualified financial contract that suspends, conditions, or extinguishes a payment obligation of a party, in whole or in part, or does not create a payment obligation of a party that would otherwise exist, solely because of the status of such party as a nondefaulting party in connection with the insolvency of a covered financial company that is a party to the contract or the appointment of or the exercise of rights or powers by the corporation as receiver for such covered financial company, and not as a result of the exercise by a party of any right to offset, setoff, or net obligations that exist under the contract, any other contract between those parties, or applicable law    g certain obligations to clearing organizations in the event that the corporation has been appointed as receiver for a covered financial company which is a party to any qualified financial contract cleared by or subject to the rules of a clearing organization as defined in paragraph 9 d , the receiver shall use its best efforts to meet all margin, collateral, and settlement obligations of the covered financial company that arise under qualified financial contracts other than any margin, collateral, or settlement obligation that is not enforceable against the receiver under paragraph 8 f i or paragraph 10 b , as required by the rules of the clearing organization when due notwithstanding any other provision of this title, if the receiver fails to satisfy any such margin, collateral, or settlement obligations under the rules of the clearing organization, the clearing organization shall have the immediate right to exercise, and shall not be stayed from exercising, all of its rights and remedies under its rules and applicable law with respect to any qualified financial contract of the covered financial company, including, without limitation, the right to liquidate all positions and collateral of such covered financial company under the company s qualified financial contracts, and suspend or cease to act for such covered financial company, all in accordance with the rules of the clearing organization   h recordkeeping  i joint rulemaking the federal primary financial regulatory agencies shall jointly prescribe regulations requiring that financial companies maintain such records with respect to qualified financial contracts including market valuations that the federal primary financial regulatory agencies determine to be necessary or appropriate in order to assist the corporation as receiver for a covered financial company in being able to exercise its rights and fulfill its obligations under this paragraph or paragraph 9 or 10   ii time frame the federal primary financial regulatory agencies shall prescribe joint final or interim final regulations not later than 24 months after the date of enactment of this act   iii back-up rulemaking authority if the federal primary financial regulatory agencies do not prescribe joint final or interim final regulations within the time frame in clause ii , the chairperson of the council shall prescribe, in consultation with the corporation, the regulations required by clause i   iv categorization and tiering the joint regulations prescribed under clause i shall, as appropriate, differentiate among financial companies by taking into consideration their size, risk, complexity, leverage, frequency and dollar amount of qualified financial contracts, interconnectedness to the financial system, and any other factors deemed appropriate     9 transfer of qualified financial contracts  a in general in making any transfer of assets or liabilities of a covered financial company in default, which includes any qualified financial contract, the corporation as receiver for such covered financial company shall either  i transfer to one financial institution, other than a financial institution for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency proceeding  i all qualified financial contracts between any person or any affiliate of such person and the covered financial company in default   ii all claims of such person or any affiliate of such person against such covered financial company under any such contract other than any claim which, under the terms of any such contract, is subordinated to the claims of general unsecured creditors of such company   iii all claims of such covered financial company against such person or any affiliate of such person under any such contract and   iv all property securing or any other credit enhancement for any contract described in subclause i or any claim described in subclause ii or iii under any such contract or    ii transfer none of the qualified financial contracts, claims, property or other credit enhancement referred to in clause i with respect to such person and any affiliate of such person    b transfer to foreign bank, financial institution, or branch or agency thereof in transferring any qualified financial contracts and related claims and property under subparagraph a i , the corporation as receiver for the covered financial company shall not make such transfer to a foreign bank, financial institution organized under the laws of a foreign country, or a branch or agency of a foreign bank or financial institution unless, under the law applicable to such bank, financial institution, branch or agency, to the qualified financial contracts, and to any netting contract, any security agreement or arrangement or other credit enhancement related to one or more qualified financial contracts, the contractual rights of the parties to such qualified financial contracts, netting contracts, security agreements or arrangements, or other credit enhancements are enforceable substantially to the same extent as permitted under this section   c transfer of contracts subject to the rules of a clearing organization in the event that the corporation as receiver for a financial institution transfers any qualified financial contract and related claims, property, or credit enhancement pursuant to subparagraph a i and such contract is cleared by or subject to the rules of a clearing organization, the clearing organization shall not be required to accept the transferee as a member by virtue of the transfer   d definitions for purposes of this paragraph  i the term financial institution means a broker or dealer, a depository institution, a futures commission merchant, a bridge financial company, or any other institution determined by the corporation, by regulation, to be a financial institution and   ii the term clearing organization has the same meaning as in section 402 of the federal deposit insurance corporation improvement act of 1991     10 notification of transfer  a in general  i notice the corporation shall provide notice in accordance with clause ii , if  i the corporation as receiver for a covered financial company in default or in danger of default transfers any assets or liabilities of the covered financial company and   ii the transfer includes any qualified financial contract    ii timing the corporation as receiver for a covered financial company shall notify any person who is a party to any contract described in clause i of such transfer not later than 5 00 pm eastern time on the business day following the date of the appointment of the corporation as receiver    b certain rights not enforceable  i receivership a person who is a party to a qualified financial contract with a covered financial company may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph 8 a solely by reason of or incidental to the appointment under this section of the corporation as receiver for the covered financial company or the insolvency or financial condition of the covered financial company for which the corporation has been appointed as receiver  i until 5 00 pm eastern time on the business day following the date of the appointment or   ii after the person has received notice that the contract has been transferred pursuant to paragraph 9 a    ii notice for purposes of this paragraph, the corporation as receiver for a covered financial company shall be deemed to have notified a person who is a party to a qualified financial contract with such covered financial company, if the corporation has taken steps reasonably calculated to provide notice to such person by the time specified in subparagraph a    c treatment of bridge financial company for purposes of paragraph 9 , a bridge financial company shall not be considered to be a financial institution for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed, or which is otherwise the subject of a bankruptcy or insolvency proceeding   d business day defined for purposes of this paragraph, the term business day means any day other than any saturday, sunday, or any day on which either the new york stock exchange or the federal reserve bank of new york is closed    11 disaffirmance or repudiation of qualified financial contracts in exercising the rights of disaffirmance or repudiation of the corporation as receiver with respect to any qualified financial contract to which a covered financial company is a party, the corporation shall either  a disaffirm or repudiate all qualified financial contracts between  i any person or any affiliate of such person and   ii the covered financial company in default or    b disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph a with respect to such person or any affiliate of such person    12 certain security and customer interests not avoidable no provision of this subsection shall be construed as permitting the avoidance of any  a legally enforceable or perfected security interest in any of the assets of any covered financial company, except in accordance with subsection a 11 or   b legally enforceable interest in customer property, security entitlements in respect of assets or property held by the covered financial company for any security entitlement holder    13 authority to enforce contracts  a in general the corporation, as receiver for a covered financial company, may enforce any contract, other than a liability insurance contract of a director or officer, a financial institution bond entered into by the covered financial company, notwithstanding any provision of the contract providing for termination, default, acceleration, or exercise of rights upon, or solely by reason of, insolvency, the appointment of or the exercise of rights or powers by the corporation as receiver, the filing of the petition pursuant to section 202 a 1 , or the issuance of the recommendations or determination, or any actions or events occurring in connection therewith or as a result thereof, pursuant to section 203   b certain rights not affected no provision of this paragraph may be construed as impairing or affecting any right of the corporation as receiver to enforce or recover under a liability insurance contract of a director or officer or financial institution bond under other applicable law   c consent requirement and ipso facto clauses  i in general except as otherwise provided by this section, no person may exercise any right or power to terminate, accelerate, or declare a default under any contract to which the covered financial company is a party and no provision in any such contract providing for such default, termination, or acceleration shall be enforceable , or to obtain possession of or exercise control over any property of the covered financial company or affect any contractual rights of the covered financial company, without the consent of the corporation as receiver for the covered financial company during the 90 day period beginning from the appointment of the corporation as receiver   ii exceptions no provision of this subparagraph shall apply to a director or officer liability insurance contract or a financial institution bond, to the rights of parties to certain qualified financial contracts pursuant to paragraph 8 , or to the rights of parties to netting contracts pursuant to subtitle a of title iv of the federal deposit insurance corporation improvement act of 1991 12 usc 4401 et seq , or shall be construed as permitting the corporation as receiver to fail to comply with otherwise enforceable provisions of such contract    d contracts to extend credit notwithstanding any other provision in this title, if the corporation as receiver enforces any contract to extend credit to the covered financial company or bridge financial company, any valid and enforceable obligation to repay such debt shall be paid by the corporation as receiver, as an administrative expense of the receivership    14 exception for federal reserve banks and corporation security interest no provision of this subsection shall apply with respect to  a any extension of credit from any federal reserve bank or the corporation to any covered financial company or   b any security interest in the assets of the covered financial company securing any such extension of credit    15 savings clause the meanings of terms used in this subsection are applicable for purposes of this subsection only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the gramm-leach-bliley act, the legal certainty for bank products act of 2000, the securities laws as that term is defined in section 3 a 47 of the securities exchange act of 1934 , and the commodity exchange act   16 enforcement of contracts guaranteed by the covered financial company  a in general the corporation, as receiver for a covered financial company or as receiver for a subsidiary of a covered financial company including an insured depository institution shall have the power to enforce contracts of subsidiaries or affiliates of the covered financial company, the obligations under which are guaranteed or otherwise supported by or linked to the covered financial company, notwithstanding any contractual right to cause the termination, liquidation, or acceleration of such contracts based solely on the insolvency, financial condition, or receivership of the covered financial company, if  i such guaranty or other support and all related assets and liabilities are transferred to and assumed by a bridge financial company or a third party other than a third party for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed, or which is otherwise the subject of a bankruptcy or insolvency proceeding within the same period of time as the corporation is entitled to transfer the qualified financial contracts of such covered financial company or   ii the corporation, as receiver, otherwise provides adequate protection with respect to such obligations    b rule of construction for purposes of this paragraph, a bridge financial company shall not be considered to be a third party for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed, or which is otherwise the subject of a bankruptcy or insolvency proceeding     d valuation of claims in default  1 in general notwithstanding any other provision of federal law or the law of any state, and regardless of the method utilized by the corporation for a covered financial company, including transactions authorized under subsection h , this subsection shall govern the rights of the creditors of any such covered financial company   2 maximum liability the maximum liability of the corporation, acting as receiver for a covered financial company or in any other capacity, to any person having a claim against the corporation as receiver or the covered financial company for which the corporation is appointed shall equal the amount that such claimant would have received if  a the corporation had not been appointed receiver with respect to the covered financial company and   b the covered financial company had been liquidated under chapter 7 of the bankruptcy code, or any similar provision of state insolvency law applicable to the covered financial company    3 special provision for orderly liquidation by sipc the maximum liability of the corporation, acting as receiver or in its corporate capacity for any covered broker or dealer to any customer of such covered broker or dealer, with respect to customer property of such customer, shall be  a equal to the amount that such customer would have received with respect to such customer property in a case initiated by sipc under the securities investor protection act of 1970 15 usc 78aaa et seq and   b determined as of the close of business on the date on which the corporation is appointed as receiver    4 additional payments authorized  a in general subject to subsection o 1 d i , the corporation, with the approval of the secretary, may make additional payments or credit additional amounts to or with respect to or for the account of any claimant or category of claimants of the covered financial company, if the corporation determines that such payments or credits are necessary or appropriate to minimize losses to the corporation as receiver from the orderly liquidation of the covered financial company under this section   b limitations  i prohibition the corporation shall not make any payments or credit amounts to any claimant or category of claimants that would result in any claimant receiving more than the face value amount of any claim that is proven to the satisfaction of the corporation   ii no obligation notwithstanding any other provision of federal or state law, or the constitution of any state, the corporation shall not be obligated, as a result of having made any payment under subparagraph a or credited any amount described in subparagraph a to or with respect to, or for the account, of any claimant or category of claimants, to make payments to any other claimant or category of claimants    c manner of payment the corporation may make payments or credit amounts under subparagraph a directly to the claimants or may make such payments or credit such amounts to a company other than a covered financial company or a bridge financial company established with respect thereto in order to induce such other company to accept liability for such claims     e limitation on court action except as provided in this title, no court may take any action to restrain or affect the exercise of powers or functions of the receiver hereunder, and any remedy against the corporation or receiver shall be limited to money damages determined in accordance with this title   f liability of directors and officers  1 in general a director or officer of a covered financial company may be held personally liable for monetary damages in any civil action described in paragraph 2 by, on behalf of, or at the request or direction of the corporation, which action is prosecuted wholly or partially for the benefit of the corporation  a acting as receiver for such covered financial company   b acting based upon a suit, claim, or cause of action purchased from, assigned by, or otherwise conveyed by the corporation as receiver or   c acting based upon a suit, claim, or cause of action purchased from, assigned by, or otherwise conveyed in whole or in part by a covered financial company or its affiliate in connection with assistance provided under this title    2 actions covered paragraph 1 shall apply with respect to actions for gross negligence, including any similar conduct or conduct that demonstrates a greater disregard of a duty of care than gross negligence including intentional tortious conduct, as such terms are defined and determined under applicable state law   3 savings clause nothing in this subsection shall impair or affect any right of the corporation under other applicable law    g damages in any proceeding related to any claim against a director, officer, employee, agent, attorney, accountant, or appraiser of a covered financial company, or any other party employed by or providing services to a covered financial company, recoverable damages determined to result from the improvident or otherwise improper use or investment of any assets of the covered financial company shall include principal losses and appropriate interest   h bridge financial companies  1 organization  a purpose the corporation, as receiver for one or more covered financial companies or in anticipation of being appointed receiver for one or more covered financial companies, may organize one or more bridge financial companies in accordance with this subsection   b authorities upon the creation of a bridge financial company under subparagraph a with respect to a covered financial company, such bridge financial company may  i assume such liabilities including liabilities associated with any trust or custody business, but excluding any liabilities that count as regulatory capital of such covered financial company as the corporation may, in its discretion, determine to be appropriate   ii purchase such assets including assets associated with any trust or custody business of such covered financial company as the corporation may, in its discretion, determine to be appropriate and   iii perform any other temporary function which the corporation may, in its discretion, prescribe in accordance with this section     2 charter and establishment  a establishment except as provided in subparagraph h , where the covered financial company is a covered broker or dealer, the corporation, as receiver for a covered financial company, may grant a federal charter to and approve articles of association for one or more bridge financial company or companies, with respect to such covered financial company which shall, by operation of law and immediately upon issuance of its charter and approval of its articles of association, be established and operate in accordance with, and subject to, such charter, articles, and this section   b management upon its establishment, a bridge financial company shall be under the management of a board of directors appointed by the corporation   c articles of association the articles of association and organization certificate of a bridge financial company shall have such terms as the corporation may provide, and shall be executed by such representatives as the corporation may designate   d terms of charter rights and privileges subject to and in accordance with the provisions of this subsection, the corporation shall  i establish the terms of the charter of a bridge financial company and the rights, powers, authorities, and privileges of a bridge financial company granted by the charter or as an incident thereto and   ii provide for, and establish the terms and conditions governing, the management including the bylaws and the number of directors of the board of directors and operations of the bridge financial company    e transfer of rights and privileges of covered financial company  i in general notwithstanding any other provision of federal or state law, the corporation may provide for a bridge financial company to succeed to and assume any rights, powers, authorities, or privileges of the covered financial company with respect to which the bridge financial company was established and, upon such determination by the corporation, the bridge financial company shall immediately and by operation of law succeed to and assume such rights, powers, authorities, and privileges   ii effective without approval any succession to or assumption by a bridge financial company of rights, powers, authorities, or privileges of a covered financial company under clause i or otherwise shall be effective without any further approval under federal or state law, assignment, or consent with respect thereto    f corporate governance and election and designation of body of law to the extent permitted by the corporation and consistent with this section and any rules, regulations, or directives issued by the corporation under this section, a bridge financial company may elect to follow the corporate governance practices and procedures that are applicable to a corporation incorporated under the general corporation law of the state of delaware, or the state of incorporation or organization of the covered financial company with respect to which the bridge financial company was established, as such law may be amended from time to time   g capital  i capital not required notwithstanding any other provision of federal or state law, a bridge financial company may, if permitted by the corporation, operate without any capital or surplus, or with such capital or surplus as the corporation may in its discretion determine to be appropriate   ii no contribution by the corporation required the corporation is not required to pay capital into a bridge financial company or to issue any capital stock on behalf of a bridge financial company established under this subsection   iii authority if the corporation determines that such action is advisable, the corporation may cause capital stock or other securities of a bridge financial company established with respect to a covered financial company to be issued and offered for sale in such amounts and on such terms and conditions as the corporation may, in its discretion, determine   iv operating funds in lieu of capital and implementation plan upon the organization of a bridge financial company, and thereafter as the corporation may, in its discretion, determine to be necessary or advisable, the corporation may make available to the bridge financial company, subject to the plan described in subsection n 9 , funds for the operation of the bridge financial company in lieu of capital    h bridge brokers or dealers  i in general the corporation, as receiver for a covered broker or dealer, may approve articles of association for one or more bridge financial companies with respect to such covered broker or dealer, which bridge financial company or companies shall, by operation of law and immediately upon approval of its articles of association  i be established and deemed registered with the commission under the securities exchange act of 1934 and a member of sipc   ii operate in accordance with such articles and this section and   iii succeed to any and all registrations and memberships of the covered financial company with or in any self-regulatory organizations    ii other requirements except as provided in clause i , and notwithstanding any other provision of this section, the bridge financial company shall be subject to the federal securities laws and all requirements with respect to being a member of a self-regulatory organization, unless exempted from any such requirements by the commission, as is necessary or appropriate in the public interest or for the protection of investors   iii treatment of customers except as otherwise provided by this title, any customer of the covered broker or dealer whose account is transferred to a bridge financial company shall have all the rights, privileges, and protections under section 205 f and under the securities investor protection act of 1970 15 usc 78aaa et seq , that such customer would have had if the account were not transferred from the covered financial company under this subparagraph   iv operation of bridge brokers or dealers notwithstanding any other provision of this title, the corporation shall not operate any bridge financial company created by the corporation under this title with respect to a covered broker or dealer in such a manner as to adversely affect the ability of customers to promptly access their customer property in accordance with applicable law     3 interests in and assets and obligations of covered financial company notwithstanding paragraph 1 or 2 or any other provision of law  a a bridge financial company shall assume, acquire, or succeed to the assets or liabilities of a covered financial company including the assets or liabilities associated with any trust or custody business only to the extent that such assets or liabilities are transferred by the corporation to the bridge financial company in accordance with, and subject to the restrictions set forth in, paragraph 1 b and   b a bridge financial company shall not assume, acquire, or succeed to any obligation that a covered financial company for which the corporation has been appointed receiver may have to any shareholder, member, general partner, limited partner, or other person with an interest in the equity of the covered financial company that arises as a result of the status of that person having an equity claim in the covered financial company    4 bridge financial company treated as being in default for certain purposes a bridge financial company shall be treated as a covered financial company in default at such times and for such purposes as the corporation may, in its discretion, determine   5 transfer of assets and liabilities  a authority of corporation the corporation, as receiver for a covered financial company, may transfer any assets and liabilities of a covered financial company including any assets or liabilities associated with any trust or custody business to one or more bridge financial companies, in accordance with and subject to the restrictions of paragraph 1   b subsequent transfers at any time after the establishment of a bridge financial company with respect to a covered financial company, the corporation, as receiver, may transfer any assets and liabilities of such covered financial company as the corporation may, in its discretion, determine to be appropriate in accordance with and subject to the restrictions of paragraph 1   c treatment of trust or custody business for purposes of this paragraph, the trust or custody business, including fiduciary appointments, held by any covered financial company is included among its assets and liabilities   d effective without approval the transfer of any assets or liabilities, including those associated with any trust or custody business of a covered financial company, to a bridge financial company shall be effective without any further approval under federal or state law, assignment, or consent with respect thereto   e equitable treatment of similarly situated creditors the corporation shall treat all creditors of a covered financial company that are similarly situated under subsection b 1 , in a similar manner in exercising the authority of the corporation under this subsection to transfer any assets or liabilities of the covered financial company to one or more bridge financial companies established with respect to such covered financial company, except that the corporation may take any action including making payments, subject to subsection o 1 d i that does not comply with this subparagraph, if  i the corporation determines that such action is necessary  i to maximize the value of the assets of the covered financial company   ii to maximize the present value return from the sale or other disposition of the assets of the covered financial company or   iii to minimize the amount of any loss realized upon the sale or other disposition of the assets of the covered financial company and    ii all creditors that are similarly situated under subsection b 1 receive not less than the amount provided under paragraphs 2 and 3 of subsection d    f limitation on transfer of liabilities notwithstanding any other provision of law, the aggregate amount of liabilities of a covered financial company that are transferred to, or assumed by, a bridge financial company from a covered financial company may not exceed the aggregate amount of the assets of the covered financial company that are transferred to, or purchased by, the bridge financial company from the covered financial company    6 stay of judicial action any judicial action to which a bridge financial company becomes a party by virtue of its acquisition of any assets or assumption of any liabilities of a covered financial company shall be stayed from further proceedings for a period of not longer than 45 days or such longer period as may be agreed to upon the consent of all parties at the request of the bridge financial company   7 agreements against interest of the bridge financial company no agreement that tends to diminish or defeat the interest of the bridge financial company in any asset of a covered financial company acquired by the bridge financial company shall be valid against the bridge financial company, unless such agreement  a is in writing   b was executed by an authorized officer or representative of the covered financial company or confirmed in the ordinary course of business by the covered financial company and   c has been on the official record of the company, since the time of its execution, or with which, the party claiming under the agreement provides documentation of such agreement and its authorized execution or confirmation by the covered financial company that is acceptable to the receiver    8 no federal status  a agency status a bridge financial company is not an agency, establishment, or instrumentality of the united states   b employee status representatives for purposes of paragraph 1 b , directors, officers, employees, or agents of a bridge financial company are not, solely by virtue of service in any such capacity, officers or employees of the united states any employee of the corporation or of any federal instrumentality who serves at the request of the corporation as a representative for purposes of paragraph 1 b , director, officer, employee, or agent of a bridge financial company shall not  i solely by virtue of service in any such capacity lose any existing status as an officer or employee of the united states for purposes of title 5, united states code, or any other provision of law or   ii receive any salary or benefits for service in any such capacity with respect to a bridge financial company in addition to such salary or benefits as are obtained through employment with the corporation or such federal instrumentality     9 funding authorized the corporation may, subject to the plan described in subsection n 9 , provide funding to facilitate any transaction described in subparagraph a , b , c , or d of paragraph 13 with respect to any bridge financial company, or facilitate the acquisition by a bridge financial company of any assets, or the assumption of any liabilities, of a covered financial company for which the corporation has been appointed receiver   10 exempt tax status notwithstanding any other provision of federal or state law, a bridge financial company, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the united states, by any territory, dependency, or possession thereof, or by any state, county, municipality, or local taxing authority   11 federal agency approval antitrust review if a transaction involving the merger or sale of a bridge financial company requires approval by a federal agency, the transaction may not be consummated before the 5th calendar day after the date of approval by the federal agency responsible for such approval with respect thereto if, in connection with any such approval a report on competitive factors from the attorney general is required, the federal agency responsible for such approval shall promptly notify the attorney general of the proposed transaction and the attorney general shall provide the required report within 10 days of the request if a notification is required under section 7a of the clayton act with respect to such transaction, the required waiting period shall end on the 15th day after the date on which the attorney general and the federal trade commission receive such notification, unless the waiting period is terminated earlier under section 7a b 2 of the clayton act, or extended under section 7a e 2 of that act   12 duration of bridge financial company subject to paragraphs 13 and 14 , the status of a bridge financial company as such shall terminate at the end of the 2-year period following the date on which it was granted a charter the corporation may, in its discretion, extend the status of the bridge financial company as such for no more than 3 additional 1-year periods   13 termination of bridge financial company status the status of any bridge financial company as such shall terminate upon the earliest of  a the date of the merger or consolidation of the bridge financial company with a company that is not a bridge financial company   b at the election of the corporation, the sale of a majority of the capital stock of the bridge financial company to a company other than the corporation and other than another bridge financial company   c the sale of 80 percent, or more, of the capital stock of the bridge financial company to a person other than the corporation and other than another bridge financial company   d at the election of the corporation, either the assumption of all or substantially all of the liabilities of the bridge financial company by a company that is not a bridge financial company, or the acquisition of all or substantially all of the assets of the bridge financial company by a company that is not a bridge financial company, or other entity as permitted under applicable law and   e the expiration of the period provided in paragraph 12 , or the earlier dissolution of the bridge financial company, as provided in paragraph 15    14 effect of termination events  a merger or consolidation a merger or consolidation, described in paragraph 13 a shall be conducted in accordance with, and shall have the effect provided in, the provisions of applicable law for the purpose of effecting such a merger or consolidation, the bridge financial company shall be treated as a corporation organized under the laws of the state of delaware unless the law of another state has been selected by the bridge financial company in accordance with paragraph 2 f , and the corporation shall be treated as the sole shareholder thereof, notwithstanding any other provision of state or federal law   b charter conversion following the sale of a majority of the capital stock of the bridge financial company, as provided in paragraph 13 b , the corporation may amend the charter of the bridge financial company to reflect the termination of the status of the bridge financial company as such, whereupon the company shall have all of the rights, powers, and privileges under its constituent documents and applicable federal or state law in connection therewith, the corporation may take such steps as may be necessary or convenient to reincorporate the bridge financial company under the laws of a state and, notwithstanding any provisions of federal or state law, such state-chartered corporation shall be deemed to succeed by operation of law to such rights, titles, powers, and interests of the bridge financial company as the corporation may provide, with the same effect as if the bridge financial company had merged with the state-chartered corporation under provisions of the corporate laws of such state   c sale of stock following the sale of 80 percent or more of the capital stock of a bridge financial company, as provided in paragraph 13 c , the company shall have all of the rights, powers, and privileges under its constituent documents and applicable federal or state law in connection therewith, the corporation may take such steps as may be necessary or convenient to reincorporate the bridge financial company under the laws of a state and, notwithstanding any provisions of federal or state law, the state-chartered corporation shall be deemed to succeed by operation of law to such rights, titles, powers and interests of the bridge financial company as the corporation may provide, with the same effect as if the bridge financial company had merged with the state-chartered corporation under provisions of the corporate laws of such state   d assumption of liabilities and sale of assets following the assumption of all or substantially all of the liabilities of the bridge financial company, or the sale of all or substantially all of the assets of the bridge financial company, as provided in paragraph 13 d , at the election of the corporation, the bridge financial company may retain its status as such for the period provided in paragraph 12 or may be dissolved at the election of the corporation   e amendments to charter following the consummation of a transaction described in subparagraph a , b , c , or d of paragraph 13 , the charter of the resulting company shall be amended to reflect the termination of bridge financial company status, if appropriate    15 dissolution of bridge financial company  a in general notwithstanding any other provision of federal or state law, if the status of a bridge financial company as such has not previously been terminated by the occurrence of an event specified in subparagraph a , b , c , or d of paragraph 13  i the corporation may, in its discretion, dissolve the bridge financial company in accordance with this paragraph at any time and   ii the corporation shall promptly commence dissolution proceedings in accordance with this paragraph upon the expiration of the 2-year period following the date on which the bridge financial company was chartered, or any extension thereof, as provided in paragraph 12    b procedures the corporation shall remain the receiver for a bridge financial company for the purpose of dissolving the bridge financial company the corporation as receiver for a bridge financial company shall wind up the affairs of the bridge financial company in conformity with the provisions of law relating to the liquidation of covered financial companies under this title with respect to any such bridge financial company, the corporation as receiver shall have all the rights, powers, and privileges and shall perform the duties related to the exercise of such rights, powers, or privileges granted by law to the corporation as receiver for a covered financial company under this title and, notwithstanding any other provision of law, in the exercise of such rights, powers, and privileges, the corporation shall not be subject to the direction or supervision of any state agency or other federal agency    16 authority to obtain credit  a in general a bridge financial company may obtain unsecured credit and issue unsecured debt   b inability to obtain credit if a bridge financial company is unable to obtain unsecured credit or issue unsecured debt, the corporation may authorize the obtaining of credit or the issuance of debt by the bridge financial company  i with priority over any or all of the obligations of the bridge financial company   ii secured by a lien on property of the bridge financial company that is not otherwise subject to a lien or   iii secured by a junior lien on property of the bridge financial company that is subject to a lien    c limitations  i in general the corporation, after notice and a hearing, may authorize the obtaining of credit or the issuance of debt by a bridge financial company that is secured by a senior or equal lien on property of the bridge financial company that is subject to a lien, only if  i the bridge financial company is unable to otherwise obtain such credit or issue such debt and   ii there is adequate protection of the interest of the holder of the lien on the property with respect to which such senior or equal lien is proposed to be granted    ii hearing the hearing required pursuant to this subparagraph shall be before a court of the united states, which shall have jurisdiction to conduct such hearing and to authorize a bridge financial company to obtain secured credit under clause i    d burden of proof in any hearing under this paragraph, the corporation has the burden of proof on the issue of adequate protection   e qualified financial contracts no credit or debt obtained or issued by a bridge financial company may contain terms that impair the rights of a counterparty to a qualified financial contract upon a default by the bridge financial company, other than the priority of such counterpartys unsecured claim after the exercise of rights relative to the priority of the bridge financial companys obligations in respect of such credit or debt, unless such counterparty consents in writing to any such impairment    17 effect on debts and liens the reversal or modification on appeal of an authorization under this subsection to obtain credit or issue debt, or of a grant under this section of a priority or a lien, does not affect the validity of any debt so issued, or any priority or lien so granted, to an entity that extended such credit in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and the issuance of such debt, or the granting of such priority or lien, were stayed pending appeal    i sharing records if the corporation has been appointed as receiver for a covered financial company, other federal regulators shall make all records relating to the covered financial company available to the corporation, which may be used by the corporation in any manner that the corporation determines to be appropriate   j expedited procedures for certain claims  1 time for filing notice of appeal the notice of appeal of any order, whether interlocutory or final, entered in any case brought by the corporation against a director, officer, employee, agent, attorney, accountant, or appraiser of the covered financial company, or any other person employed by or providing services to a covered financial company, shall be filed not later than 30 days after the date of entry of the order the hearing of the appeal shall be held not later than 120 days after the date of the notice of appeal the appeal shall be decided not later than 180 days after the date of the notice of appeal   2 scheduling the court shall expedite the consideration of any case brought by the corporation against a director, officer, employee, agent, attorney, accountant, or appraiser of a covered financial company or any other person employed by or providing services to a covered financial company as far as practicable, the court shall give such case priority on its docket   3 judicial discretion the court may modify the schedule and limitations stated in paragraphs 1 and 2 in a particular case, based on a specific finding that the ends of justice that would be served by making such a modification would outweigh the best interest of the public in having the case resolved expeditiously    k foreign investigations the corporation, as receiver for any covered financial company, and for purposes of carrying out any power, authority, or duty with respect to a covered financial company  1 may request the assistance of any foreign financial authority and provide assistance to any foreign financial authority in accordance with section 8 v of the federal deposit insurance act, as if the covered financial company were an insured depository institution, the corporation were the appropriate federal banking agency for the company, and any foreign financial authority were the foreign banking authority and   2 may maintain an office to coordinate foreign investigations or investigations on behalf of foreign financial authorities    l prohibition on entering secrecy agreements and protective orders the corporation may not enter into any agreement or approve any protective order which prohibits the corporation from disclosing the terms of any settlement of an administrative or other action for damages or restitution brought by the corporation in its capacity as receiver for a covered financial company   m liquidation of certain covered financial companies or bridge financial companies  1 in general except as specifically provided in this section, and notwithstanding any other provision of law, the corporation, in connection with the liquidation of any covered financial company or bridge financial company with respect to which the corporation has been appointed as receiver, shall  a in the case of any covered financial company or bridge financial company that is a stockbroker, but is not a member of the securities investor protection corporation, apply the provisions of subchapter iii of chapter 7 of the bankruptcy code, in respect of the distribution to any customer of all customer name security and customer property and member property, as if such covered financial company or bridge financial company were a debtor for purposes of such subchapter or   b in the case of any covered financial company or bridge financial company that is a commodity broker, apply the provisions of subchapter iv of chapter 7 the bankruptcy code, in respect of the distribution to any customer of all customer property and member property, as if such covered financial company or bridge financial company were a debtor for purposes of such subchapter    2 definitions for purposes of this subsection  a the terms customer , customer name security , and customer property and member property have the same meanings as in sections 741 and 761 of title 11, united states code and   b the terms commodity broker and stockbroker have the same meanings as in section 101 of the bankruptcy code     n orderly liquidation fund  1 establishment there is established in the treasury of the united states a separate fund to be known as the orderly liquidation fund , which shall be available to the corporation to carry out the authorities contained in this title, for the cost of actions authorized by this title, including the orderly liquidation of covered financial companies, payment of administrative expenses, the payment of principal and interest by the corporation on obligations issued under paragraph 5 , and the exercise of the authorities of the corporation under this title   2 proceeds amounts received by the corporation, including assessments received under subsection o , proceeds of obligations issued under paragraph 5 , interest and other earnings from investments, and repayments to the corporation by covered financial companies, shall be deposited into the fund   3 management the corporation shall manage the fund in accordance with this subsection and the policies and procedures established under section 203 d   4 investments at the request of the corporation, the secretary may invest such portion of amounts held in the fund that are not, in the judgment of the corporation, required to meet the current needs of the corporation, in obligations of the united states having suitable maturities, as determined by the corporation the interest on and the proceeds from the sale or redemption of such obligations shall be credited to the fund   5 authority to issue obligations  a corporation authorized to issue obligations upon appointment by the secretary of the corporation as receiver for a covered financial company, the corporation is authorized to issue obligations to the secretary   b secretary authorized to purchase obligations the secretary may, under such terms and conditions as the secretary may require, purchase or agree to purchase any obligations issued under subparagraph a , and for such purpose, the secretary is authorized to use as a public debt transaction the proceeds of the sale of any securities issued under chapter 31 of title 31, united states code, and the purposes for which securities may be issued under chapter 31 of title 31, united states code, are extended to include such purchases   c interest rate each purchase of obligations by the secretary under this paragraph shall be upon such terms and conditions as to yield a return at a rate determined by the secretary, taking into consideration the current average yield on outstanding marketable obligations of the united states of comparable maturity, plus an interest rate surcharge to be determined by the secretary, which shall be greater than the difference between  i the current average rate on an index of corporate obligations of comparable maturity and   ii the current average rate on outstanding marketable obligations of the united states of comparable maturity    d secretary authorized to sell obligations the secretary may sell, upon such terms and conditions as the secretary shall determine, any of the obligations acquired under this paragraph   e public debt transactions all purchases and sales by the secretary of such obligations under this paragraph shall be treated as public debt transactions of the united states, and the proceeds from the sale of any obligations acquired by the secretary under this paragraph shall be deposited into the treasury of the united states as miscellaneous receipts    6 maximum obligation limitation the corporation may not, in connection with the orderly liquidation of a covered financial company, issue or incur any obligation, if, after issuing or incurring the obligation, the aggregate amount of such obligations outstanding under this subsection for each covered financial company would exceed  a an amount that is equal to 10 percent of the total consolidated assets of the covered financial company, based on the most recent financial statement available, during the 30-day period immediately following the date of appointment of the corporation as receiver or a shorter time period if the corporation has calculated the amount described under subparagraph b and   b the amount that is equal to 90 percent of the fair value of the total consolidated assets of each covered financial company that are available for repayment, after the time period described in subparagraph a    7 rulemaking the corporation and the secretary shall jointly, in consultation with the council, prescribe regulations governing the calculation of the maximum obligation limitation defined in this paragraph   8 rule of construction  a in general nothing in this section shall be construed to affect the authority of the corporation under subsection a or b of section 14 or section 15 c 5 of the federal deposit insurance act 12 usc 1824, 1825 c 5 , the management of the deposit insurance fund by the corporation, or the resolution of insured depository institutions, provided that  i the authorities of the corporation contained in this title shall not be used to assist the deposit insurance fund or to assist any financial company under applicable law other than this act   ii the authorities of the corporation relating to the deposit insurance fund, or any other responsibilities of the corporation under applicable law other than this title, shall not be used to assist a covered financial company pursuant to this title and   iii the deposit insurance fund may not be used in any manner to otherwise circumvent the purposes of this title    b valuation for purposes of determining the amount of obligations under this subsection  i the corporation shall include as an obligation any contingent liability of the corporation pursuant to this title and   ii the corporation shall value any contingent liability at its expected cost to the corporation     9 orderly liquidation and repayment plans  a orderly liquidation plan amounts in the fund shall be available to the corporation with regard to a covered financial company for which the corporation is appointed receiver after the corporation has developed an orderly liquidation plan that is acceptable to the secretary with regard to such covered financial company, including the provision and use of funds, including taking any actions specified under section 204 d and subsection h 2 g iv and h 9 of this section, and payments to third parties the orderly liquidation plan shall take into account actions to avoid or mitigate potential adverse effects on low income, minority, or underserved communities affected by the failure of the covered financial company, and shall provide for coordination with the primary financial regulatory agencies, as appropriate, to ensure that such actions are taken the corporation may, at any time, amend any orderly liquidation plan approved by the secretary with the concurrence of the secretary   b mandatory repayment plan  i in general no amount authorized under paragraph 6 b may be provided by the secretary to the corporation under paragraph 5 , unless an agreement is in effect between the secretary and the corporation that  i provides a specific plan and schedule to achieve the repayment of the outstanding amount of any borrowing under paragraph 5 and   ii demonstrates that income to the corporation from the liquidated assets of the covered financial company and assessments under subsection o will be sufficient to amortize the outstanding balance within the period established in the repayment schedule and pay the interest accruing on such balance within the time provided in subsection o 1 b    ii consultation with and report to congress the secretary and the corporation shall  i consult with the committee on banking, housing, and urban affairs of the senate and the committee on financial services of the house of representatives on the terms of any repayment schedule agreement and   ii submit a copy of the repayment schedule agreement to the committees described in subclause i before the end of the 30-day period beginning on the date on which any amount is provided by the secretary to the corporation under paragraph 5      10 implementation expenses  a in general reasonable implementation expenses of the corporation incurred after the date of enactment of this act shall be treated as expenses of the council   b requests for reimbursement the corporation shall periodically submit a request for reimbursement for implementation expenses to the chairperson of the council, who shall arrange for prompt reimbursement to the corporation of reasonable implementation expenses   c definition as used in this paragraph, the term implementation expenses  i means costs incurred by the corporation beginning on the date of enactment of this act, as part of its efforts to implement this title that do not relate to a particular covered financial company and   ii includes the costs incurred in connection with the development of policies, procedures, rules, and regulations and other planning activities of the corporation consistent with carrying out this title      o assessments  1 risk-based assessments  a eligible financial companies defined for purposes of this subsection, the term eligible financial company means any bank holding company with total consolidated assets equal to or greater than $50,000,000,000 and any nonbank financial company supervised by the board of governors   b assessments the corporation shall charge one or more risk-based assessments in accordance with the provisions of subparagraph d , if such assessments are necessary to pay in full the obligations issued by the corporation to the secretary under this title within 60 months of the date of issuance of such obligations   c extensions authorized the corporation may, with the approval of the secretary, extend the time period under subparagraph b , if the corporation determines that an extension is necessary to avoid a serious adverse effect on the financial system of the united states   d application of assessments to meet the requirements of subparagraph b , the corporation shall  i impose assessments, as soon as practicable, on any claimant that received additional payments or amounts from the corporation pursuant to subsection b 4 , d 4 , or h 5 e , except for payments or amounts necessary to initiate and continue operations essential to implementation of the receivership or any bridge financial company, to recover on a cumulative basis, the entire difference between  i the aggregate value the claimant received from the corporation on a claim pursuant to this title including pursuant to subsection b 4 , d 4 , and h 5 e , as of the date on which such value was received and   ii the value the claimant was entitled to receive from the corporation on such claim solely from the proceeds of the liquidation of the covered financial company under this title and    ii if the amounts to be recovered on a cumulative basis under clause i are insufficient to meet the requirements of subparagraph b , after taking into account the considerations set forth in paragraph 4 , impose assessments on  i eligible financial companies and   ii financial companies with total consolidated assets equal to or greater than $50,000,000,000 that are not eligible financial companies     e provision of financing payments or amounts necessary to initiate and continue operations essential to implementation of the receivership or any bridge financial company described in subparagraph d i shall not include the provision of financing, as defined by rule of the corporation, to third parties    2 graduated assessment rate the corporation shall impose assessments on a graduated basis, with financial companies having greater assets and risk being assessed at a higher rate   3 notification and payment the corporation shall notify each financial company of that company s assessment under this subsection any financial company subject to assessment under this subsection shall pay such assessment in accordance with the regulations prescribed pursuant to paragraph 6   4 risk-based assessment considerations in imposing assessments under paragraph 1 d ii , the corporation shall use a risk matrix the council shall make a recommendation to the corporation on the risk matrix to be used in imposing such assessments, and the corporation shall take into account any such recommendation in the establishment of the risk matrix to be used to impose such assessments in recommending or establishing such risk matrix, the council and the corporation, respectively, shall take into account  a economic conditions generally affecting financial companies so as to allow assessments to increase during more favorable economic conditions and to decrease during less favorable economic conditions   b any assessments imposed on a financial company or an affiliate of a financial company that  i is an insured depository institution, assessed pursuant to section 7 or 13 c 4 g of the federal deposit insurance act   ii is a member of the securities investor protection corporation, assessed pursuant to section 4 of the securities investor protection act of 1970 15 usc 78ddd   iii is an insured credit union, assessed pursuant to section 202 c 1 a i of the federal credit union act 12 usc 1782 c 1 a i or   iv is an insurance company, assessed pursuant to applicable state law to cover or reimburse payments made to cover the costs of the rehabilitation, liquidation, or other state insolvency proceeding with respect to 1 or more insurance companies    c the risks presented by the financial company to the financial system and the extent to which the financial company has benefitted, or likely would benefit, from the orderly liquidation of a financial company under this title, including  i the amount, different categories, and concentrations of assets of the financial company and its affiliates, including both on-balance sheet and off-balance sheet assets   ii the activities of the financial company and its affiliates   iii the relevant market share of the financial company and its affiliates   iv the extent to which the financial company is leveraged   v the potential exposure to sudden calls on liquidity precipitated by economic distress   vi the amount, maturity, volatility, and stability of the company s financial obligations to, and relationship with, other financial companies   vii the amount, maturity, volatility, and stability of the liabilities of the company, including the degree of reliance on short-term funding, taking into consideration existing systems for measuring a companys risk-based capital   viii the stability and variety of the companys sources of funding   ix the companys importance as a source of credit for households, businesses, and state and local governments and as a source of liquidity for the financial system   x the extent to which assets are simply managed and not owned by the financial company and the extent to which ownership of assets under management is diffuse and   xi the amount, different categories, and concentrations of liabilities, both insured and uninsured, contingent and noncontingent, including both on-balance sheet and off-balance sheet liabilities, of the financial company and its affiliates    d any risks presented by the financial company during the 10-year period immediately prior to the appointment of the corporation as receiver for the covered financial company that contributed to the failure of the covered financial company and   e such other risk-related factors as the corporation, or the council, as applicable, may determine to be appropriate    5 collection of information the corporation may impose on covered financial companies such collection of information requirements as the corporation deems necessary to carry out this subsection after the appointment of the corporation as receiver under this title   6 rulemaking  a in general the corporation shall prescribe regulations to carry out this subsection the corporation shall consult with the secretary in the development and finalization of such regulations   b equitable treatment the regulations prescribed under subparagraph a shall take into account the differences in risks posed to the financial stability of the united states by financial companies, the differences in the liability structures of financial companies, and the different bases for other assessments that such financial companies may be required to pay, to ensure that assessed financial companies are treated equitably and that assessments under this subsection reflect such differences     p unenforceability of certain agreements  1 in general no provision described in paragraph 2 shall be enforceable against or impose any liability on any person, as such enforcement or liability shall be contrary to public policy   2 prohibited provisions a provision described in this paragraph is any term contained in any existing or future standstill, confidentiality, or other agreement that, directly or indirectly  a affects, restricts, or limits the ability of any person to offer to acquire or acquire   b prohibits any person from offering to acquire or acquiring or   c prohibits any person from using any previously disclosed information in connection with any such offer to acquire or acquisition of,  all or part of any covered financial company, including any liabilities, assets, or interest therein, in connection with any transaction in which the corporation exercises its authority under this title    q other exemptions  1 in general when acting as a receiver under this title  a the corporation, including its franchise, its capital, reserves and surplus, and its income, shall be exempt from all taxation imposed by any state, county, municipality, or local taxing authority, except that any real property of the corporation shall be subject to state, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed, except that, notwithstanding the failure of any person to challenge an assessment under state law of the value of such property, such value, and the tax thereon, shall be determined as of the period for which such tax is imposed   b no property of the corporation shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the corporation, nor shall any involuntary lien attach to the property of the corporation and   c the corporation shall not be liable for any amounts in the nature of penalties or fines, including those arising from the failure of any person to pay any real property, personal property, probate, or recording tax or any recording or filing fees when due and   d the corporation shall be exempt from all prosecution by the united states or any state, county, municipality, or local authority for any criminal offense arising under federal, state, county, municipal, or local law, which was allegedly committed by the covered financial company, or persons acting on behalf of the covered financial company, prior to the appointment of the corporation as receiver    2 limitation paragraph 1 shall not apply with respect to any tax imposed or other amount arising under the internal revenue code of 1986    r certain sales of assets prohibited  1 persons who engaged in improper conduct with, or caused losses to, covered financial companies the corporation shall prescribe regulations which, at a minimum, shall prohibit the sale of assets of a covered financial company by the corporation to  a any person who  i has defaulted, or was a member of a partnership or an officer or director of a corporation that has defaulted, on 1 or more obligations, the aggregate amount of which exceeds $1,000,000, to such covered financial company   ii has been found to have engaged in fraudulent activity in connection with any obligation referred to in clause i and   iii proposes to purchase any such asset in whole or in part through the use of the proceeds of a loan or advance of credit from the corporation or from any covered financial company    b any person who participated, as an officer or director of such covered financial company or of any affiliate of such company, in a material way in any transaction that resulted in a substantial loss to such covered financial company or   c any person who has demonstrated a pattern or practice of defalcation regarding obligations to such covered financial company    2 convicted debtors except as provided in paragraph 3 , a person may not purchase any asset of such institution from the receiver, if that person  a has been convicted of an offense under section 215, 656, 657, 1005, 1006, 1007, 1008, 1014, 1032, 1341, 1343, or 1344 of title 18, united states code, or of conspiring to commit such an offense, affecting any covered financial company and   b is in default on any loan or other extension of credit from such covered financial company which, if not paid, will cause substantial loss to the fund or the corporation    3 settlement of claims paragraphs 1 and 2 shall not apply to the sale or transfer by the corporation of any asset of any covered financial company to any person, if the sale or transfer of the asset resolves or settles, or is part of the resolution or settlement, of 1 or more claims that have been, or could have been, asserted by the corporation against the person   4 definition of default for purposes of this subsection, the term default means a failure to comply with the terms of a loan or other obligation to such an extent that the property securing the obligation is foreclosed upon    s recoupment of compensation from senior executives and directors  1 in general the corporation, as receiver of a covered financial company, may recover from any current or former senior executive or director substantially responsible for the failed condition of the covered financial company any compensation received during the 2-year period preceding the date on which the corporation was appointed as the receiver of the covered financial company, except that, in the case of fraud, no time limit shall apply   2 cost considerations in seeking to recover any such compensation, the corporation shall weigh the financial and deterrent benefits of such recovery against the cost of executing the recovery   3 rulemaking the corporation shall promulgate regulations to implement the requirements of this subsection, including defining the term compensation to mean any financial remuneration, including salary, bonuses, incentives, benefits, severance, deferred compensation, or golden parachute benefits, and any profits realized from the sale of the securities of the covered financial company     sec 211 miscellaneous provisions  a clarification of prohibition regarding concealment of assets from receiver or liquidating agent section 1032 1 of title 18, united states code, is amended by inserting the federal deposit insurance corporation acting as receiver for a covered financial company, in accordance with title ii of the dodd-frank wall street reform and consumer protection act, before or the national credit   b conforming amendment section 1032 of title 18, united states code, is amended in the section heading, by striking of financial institution   c federal deposit insurance corporation improvement act of 1991 section 403 a of the federal deposit insurance corporation improvement act of 1991 12 usc 4403 a is amended by inserting section 210 c of the dodd-frank wall street reform and consumer protection act, section 1367 of the federal housing enterprises financial safety and soundness act of 1992 12 usc 4617 d , after section 11 e of the federal deposit insurance act,   d fdic inspector general reviews  1 scope the inspector general of the corporation shall conduct, supervise, and coordinate audits and investigations of the liquidation of any covered financial company by the corporation as receiver under this title, including collecting and summarizing  a a description of actions taken by the corporation as receiver   b a description of any material sales, transfers, mergers, obligations, purchases, and other material transactions entered into by the corporation   c an evaluation of the adequacy of the policies and procedures of the corporation under section 203 d and orderly liquidation plan under section 210 n 14   d an evaluation of the utilization by the corporation of the private sector in carrying out its functions, including the adequacy of any conflict-of-interest reviews and   e an evaluation of the overall performance of the corporation in liquidating the covered financial company, including administrative costs, timeliness of liquidation process, and impact on the financial system    2 frequency not later than 6 months after the date of appointment of the corporation as receiver under this title and every 6 months thereafter, the inspector general of the corporation shall conduct the audit and investigation described in paragraph 1   3 reports and testimony the inspector general of the corporation shall include in the semiannual reports required by section 5 a of the inspector general act of 1978 5 usc app , a summary of the findings and evaluations under paragraph 1 , and shall appear before the appropriate committees of congress, if requested, to present each such report   4 funding  a initial funding the expenses of the inspector general of the corporation in carrying out this subsection shall be considered administrative expenses of the receivership   b additional funding if the maximum amount available to the corporation as receiver under this title is insufficient to enable the inspector general of the corporation to carry out the duties under this subsection, the corporation shall pay such additional amounts from assessments imposed under section 210    5 termination of responsibilities the duties and responsibilities of the inspector general of the corporation under this subsection shall terminate 1 year after the date of termination of the receivership under this title    e treasury inspector general reviews  1 scope the inspector general of the department of the treasury shall conduct, supervise, and coordinate audits and investigations of actions taken by the secretary related to the liquidation of any covered financial company under this title, including collecting and summarizing  a a description of actions taken by the secretary under this title   b an analysis of the approval by the secretary of the policies and procedures of the corporation under section 203 and acceptance of the orderly liquidation plan of the corporation under section 210 and   c an assessment of the terms and conditions underlying the purchase by the secretary of obligations of the corporation under section 210    2 frequency not later than 6 months after the date of appointment of the corporation as receiver under this title and every 6 months thereafter, the inspector general of the department of the treasury shall conduct the audit and investigation described in paragraph 1   3 reports and testimony the inspector general of the department of the treasury shall include in the semiannual reports required by section 5 a of the inspector general act of 1978 5 usc app , a summary of the findings and assessments under paragraph 1 , and shall appear before the appropriate committees of congress, if requested, to present each such report   4 termination of responsibilities the duties and responsibilities of the inspector general of the department of the treasury under this subsection shall terminate 1 year after the date on which the obligations purchased by the secretary from the corporation under section 210 are fully redeemed    f primary financial regulatory agency inspector general reviews  1 scope upon the appointment of the corporation as receiver for a covered financial company supervised by a federal primary financial regulatory agency or the board of governors under section 165, the inspector general of the agency or the board of governors shall make a written report reviewing the supervision by the agency or the board of governors of the covered financial company, which shall  a evaluate the effectiveness of the agency or the board of governors in carrying out its supervisory responsibilities with respect to the covered financial company   b identify any acts or omissions on the part of agency or board of governors officials that contributed to the covered financial company being in default or in danger of default   c identify any actions that could have been taken by the agency or the board of governors that would have prevented the company from being in default or in danger of default and   d recommend appropriate administrative or legislative action    2 reports and testimony not later than 1 year after the date of appointment of the corporation as receiver under this title, the inspector general of the federal primary financial regulatory agency or the board of governors shall provide the report required by paragraph 1 to such agency or the board of governors, and along with such agency or the board of governors, as applicable, shall appear before the appropriate committees of congress, if requested, to present the report required by paragraph 1 not later than 90 days after the date of receipt of the report required by paragraph 1 , such agency or the board of governors, as applicable, shall provide a written report to congress describing any actions taken in response to the recommendations in the report, and if no such actions were taken, describing the reasons why no actions were taken     sec 212 prohibition of circumvention and prevention of conflicts of interest  a no other funding funds for the orderly liquidation of any covered financial company under this title shall only be provided as specified under this title   b limit on governmental actions no governmental entity may take any action to circumvent the purposes of this title   c conflict of interest in the event that the corporation is appointed receiver for more than 1 covered financial company or is appointed receiver for a covered financial company and receiver for any insured depository institution that is an affiliate of such covered financial company, the corporation shall take appropriate action, as necessary to avoid any conflicts of interest that may arise in connection with multiple receiverships    sec 213 ban on certain activities by senior executives and directors  a prohibition authority the board of governors or, if the covered financial company was not supervised by the board of governors, the corporation, may exercise the authority provided by this section   b authority to issue order the appropriate agency described in subsection a may take any action authorized by subsection c , if the agency determines that  1 a senior executive or a director of the covered financial company, prior to the appointment of the corporation as receiver, has, directly or indirectly  a violated  i any law or regulation   ii any cease-and-desist order which has become final   iii any condition imposed in writing by a federal agency in connection with any action on any application, notice, or request by such company or senior executive or   iv any written agreement between such company and such agency    b engaged or participated in any unsafe or unsound practice in connection with any financial company or   c committed or engaged in any act, omission, or practice which constitutes a breach of the fiduciary duty of such senior executive or director    2 by reason of the violation, practice, or breach described in any subparagraph of paragraph 1 , such senior executive or director has received financial gain or other benefit by reason of such violation, practice, or breach and such violation, practice, or breach contributed to the failure of the company and   3 such violation, practice, or breach  a involves personal dishonesty on the part of such senior executive or director or   b demonstrates willful or continuing disregard by such senior executive or director for the safety or soundness of such company     c authorized actions  1 in general the appropriate agency for a financial company, as described in subsection a , may serve upon a senior executive or director described in subsection b a written notice of the intention of the agency to prohibit any further participation by such person, in any manner, in the conduct of the affairs of any financial company for a period of time determined by the appropriate agency to be commensurate with such violation, practice, or breach, provided such period shall be not less than 2 years   2 procedures the due process requirements and other procedures under section 8 e of the federal deposit insurance act 12 usc 1818 e shall apply to actions under this section as if the covered financial company were an insured depository institution and the senior executive or director were an institution-affiliated party, as those terms are defined in that act    d regulations the corporation and the board of governors, in consultation with the council, shall jointly prescribe rules or regulations to administer and carry out this section, including rules, regulations, or guidelines to further define the term senior executive for the purposes of this section    sec 214 prohibition on taxpayer funding  a liquidation required all financial companies put into receivership under this title shall be liquidated no taxpayer funds shall be used to prevent the liquidation of any financial company under this title   b recovery of funds all funds expended in the liquidation of a financial company under this title shall be recovered from the disposition of assets of such financial company, or shall be the responsibility of the financial sector, through assessments   c no losses to taxpayers taxpayers shall bear no losses from the exercise of any authority under this title    sec 215 study on secured creditor haircuts  a study required the council shall conduct a study evaluating the importance of maximizing united states taxpayer protections and promoting market discipline with respect to the treatment of fully secured creditors in the utilization of the orderly liquidation authority authorized by this act in carrying out such study, the council shall  1 not be prejudicial to current or past laws or regulations with respect to secured creditor treatment in a resolution process   2 study the similarities and differences between the resolution mechanisms authorized by the bankruptcy code, the federal deposit insurance corporation improvement act of 1991, and the orderly liquidation authority authorized by this act   3 determine how various secured creditors are treated in such resolution mechanisms and examine how a haircut of various degrees on secured creditors could improve market discipline and protect taxpayers   4 compare the benefits and dynamics of prudent lending practices by depository institutions in secured loans for consumers and small businesses to the lending practices of secured creditors to large, interconnected financial firms   5 consider whether credit differs according to different types of collateral and different terms and timing of the extension of credit amd   6 include an examination of stakeholders who were unsecured or under-collateralized and seek collateral when a firm is failing, and the impact that such behavior has on financial stability and an orderly resolution that protects taxpayers if the firm fails    b report not later than the end of the 1-year period beginning on the date of enactment of this act, the council shall issue a report to the congress containing all findings and conclusions made by the council in carrying out the study required under subsection a    sec 216 study on bankruptcy process for financial and nonbank financial institutions  a study  1 in general upon enactment of this act, the board of governors, in consultation with the administrative office of the united states courts, shall conduct a study regarding the resolution of financial companies under the bankruptcy code, under chapter 7 or 11 thereof   2 issues to be studied issues to be studied under this section include  a the effectiveness of chapter 7 and chapter 11 of the bankruptcy code in facilitating the orderly resolution or reorganization of systemic financial companies   b whether a special financial resolution court or panel of special masters or judges should be established to oversee cases involving financial companies to provide for the resolution of such companies under the bankruptcy code, in a manner that minimizes adverse impacts on financial markets without creating moral hazard   c whether amendments to the bankruptcy code should be adopted to enhance the ability of the code to resolve financial companies in a manner that minimizes adverse impacts on financial markets without creating moral hazard   d whether amendments should be made to the bankruptcy code, the federal deposit insurance act, and other insolvency laws to address the manner in which qualified financial contracts of financial companies are treated and   e the implications, challenges, and benefits to creating a new chapter or subchapter of the bankruptcy code to deal with financial companies     b reports to congress not later than 1 year after the date of enactment of this act, and in each successive year until the fifth year after the date of enactment of this act, the administrative office of the united states courts shall submit to the committees on banking, housing, and urban affairs and the judiciary of the senate and the committees on financial services and the judiciary of the house of representatives a report summarizing the results of the study conducted under subsection a    sec 217 study on international coordination relating to bankruptcy process for nonbank financial institutions  a study  1 in general the board of governors, in consultation with the administrative office of the united states courts, shall conduct a study regarding international coordination relating to the resolution of systemic financial companies under the united states bankruptcy code and applicable foreign law   2 issues to be studied with respect to the bankruptcy process for financial companies, issues to be studied under this section include  a the extent to which international coordination currently exists   b current mechanisms and structures for facilitating international cooperation   c barriers to effective international coordination and   d ways to increase and make more effective international coordination of the resolution of financial companies, so as to minimize the impact on the financial system without creating moral hazard     b report to congress not later than 1 year after the date of enactment of this act, the administrative office of the united states courts shall submit to the committees on banking, housing, and urban affairs and the judiciary of the senate and the committees on financial services and the judiciary of the house of representatives a report summarizing the results of the study conducted under subsection a    