2007 California Financial Code Article 6. Liquidation Of Insured Banks

CA Codes (fin:3220-3225)

3220.  The Federal Deposit Insurance Corporation, in this article
called the corporation, may be and act as the receiver without bond
of any bank the deposits of which are to any extent insured by the
corporation and which bank has been closed for the purpose of
liquidation without adequate provision being made for the payment of
its depositors.



3221.  The commissioner, when he or she has taken possession of the
property and assets of a closed insured bank for the purpose of
liquidation and if he or she deems it advisable, may tender to the
corporation the appointment as receiver of such bank.




3222.  If the corporation accepts the appointment as such receiver,
the rights of depositors and other creditors of the insured bank
shall be determined in accordance with the applicable provisions of
the laws of this State.


3223.  The corporation as such receiver shall possess with respect
to such closed insured bank all the powers, rights, and privileges
given the commissioner under Article 1 of this chapter with respect
to the liquidation of a bank the property and assets of which he or
she has taken possession, except insofar as the same may be in
conflict with the provisions of the Federal Deposit Insurance Act, as
amended.



3224.  If the corporation pays or makes available for payment the
insured deposit liabilities of a closed insured bank, the
corporation, whether or not it has become receiver, shall be
subrogated by operation of law to all rights against such closed
insured bank of the owners of such deposits in the same manner and to
the same extent as subrogation of the corporation is provided for in
the Federal Deposit Insurance Act; as amended, in the case of a
closed national bank.


3225.  When acting as the receiver of a closed insured bank, the
corporation with the consent of the commissioner and the approval of
the court may sell to the corporation any part or all of the assets
of the bank or borrow from the corporation and furnish any part or
all of the assets of the bank as security for the loan.