The Office of the Comptroller of the Currency ("OCC") requested comments on a proposed rule to establish a framework for receiverships of non-FDIC insured banks. The OCC explained that the basic legal framework for receiverships is set forth in the National Bank Act; the proposed OCC rule would implement that framework. The request for comments was published in the Federal Register.
Among other provisions, the proposed rule would establish that:
- receivers for uninsured banks generally would be appointed under the same grounds that apply to the appointment of the FDIC as receiver for an insured national bank;
- persons with claims against the receivership could submit claims to the OCC for a determination or submit their claims to a court for adjudication in addition to, or as an alternative to, filing a claim with the OCC;
- the order of priorities for payment of administrative expenses of the receiver and claims against the uninsured bank in receivership would be as follows: (i) administrative expenses of the receiver; (ii) unsecured creditors, including secured creditors to the extent their claim exceeds their valid and enforceable security interest; (iii) creditors of the uninsured bank, if any, whose claims are subordinated to general creditor claims; and (iv) shareholders of the uninsured bank;
- the powers and duties of the receiver would include, among others: (i) taking possession of the books and records of the uninsured bank; (ii) collecting on debts and claims owed to the bank; (iii) selling or compromising bad or doubtful debts (with court approval); and (iv) selling the uninsured bank's real and personal property (also with court approval);
- after administrative expenses of the receivership have been paid, the OCC would make payments on proved claims from available receivership funds, applying the priority of claims in the rule and the OCC would continue to make payments, periodically, as the receiver liquidates the assets of the uninsured bank;
- dividend payments to creditors and other claimants of an uninsured bank would be made solely from receivership funds, if any, paid to the OCC by the receiver after payment of the expenses of the receiver; and
- assets held by an uninsured bank in a fiduciary or custodial capacity, as designated on the uninsured bank's books and records, would not be part of the uninsured bank's general assets and liabilities held in connection with its other business, and would not be considered a source for payment of unrelated claims of creditors and other claimants.
Comments on the proposed amendments must be submitted by November 14, 2016.
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