OCC Proposes Framework for Receiverships for Uninsured Federally Chartered National Banks
September 14, 2016 / Source: OCC
WASHINGTON — The Office of the Comptroller of the Currency (OCC) today released a proposed rule setting forth a framework for placing uninsured national banks into receivership.
While the OCC has not appointed a receiver for an uninsured national bank in many years, clarifying the framework, process, and authority promotes the orderly resolution of such institutions if required and contributes to the broader stability of the federal banking system.
“The OCC has a long history of working successfully to restore strength and viability to institutions that face difficulty,” Comptroller of the Currency Thomas J. Curry said. “In the event those efforts fail and receivership becomes necessary, a clear and efficient process of resolving failing uninsured national banks is in everyone’s best interest.”
The proposed rule would apply to all uninsured national banks regulated by the OCC. While the National Bank Act and Federal Deposit Insurance Act specify the Federal Deposit Insurance Corporation as receiver for insured banks and savings associations, the law grants the Comptroller broad authority to choose a receiver for uninsured national banks. The proposal would not apply to federal savings associations, all of which are insured. The proposed rule describes:
- The appointment of a receiver and required federal notice,
- The process for submitting claims against the receivership,
- The order of priorities for payment of administrative expenses and claims,
- The powers and duties of the receiver,
- The payment of dividends on claims,
- The sources of funds for payments and claims, and
- The status of fiduciary and custodial assets and accounts.
The OCC invites comments on the proposed rule. The deadline for comments is November 14, 2016.
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