,,ii #aah? ,,congress #b;d ,session ,s4 #daee ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #ag1 #bjbd,ms4 ,lummis 7= h]self & ,mrs4 ,gillibr&7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to provide = effective regulation ( paym5t /ableco9s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,lummis-,gillibr& ,paym5t ,/ableco9 ,act4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,algori?mic paym5t /ableco9 ,! t]m algori?mic paym5t /ableco9 means a crypto asset t-- 7,a7 is repres5t$ by ! issu]1 or is o!rwise design$ to create ! reasonable expectation1 t ! crypto asset w ma9ta9 a /able value relative to ! value ( a fix$ am\nt ( ,unit$ ,/ates doll>s2 & 7,b7 relies on ! use ( an algori?m t adju/s ! supply ( ! crypto asset 9 response to *anges 9 m>ket dem& = ! crypto asset to ma9ta9 ! expectation t ! crypto asset w ma9ta9 a /able value4 7#b7 ,applicable paym5t /ableco9 regulator ,! t]m applicable paym5t /ableco9 regulator means1 ) respect to a paym5t /ableco9 issu]-- 7,a7 9 ! case ( a depository in/itution t issues a paym5t /ableco9 "u section #g1 consi/5t ) section #aa7s7-- 7i7 ! ,comptroll] or ,/ate bank sup]visor1 z applicable2 or 7ii7 ! ,bo>d2 & 7,b7 9 ! case ( a ,/ate non-depository tru/ company t issues a paym5t /ableco9 "u section #f1 ! applicable ,/ate bank sup]visor & ! ,bo>d1 act+ jo9tly4 7#c7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#d7 ,bo>d ,! t]m ,bo>d means ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em4 7#e7 ,comptroll] ,! t]m ,comptroll] means ! ,comptroll] ( ! ,curr5cy4 7#f7 ,controll+ int]e/ ,! t]m controll+ int]e/ means a circum/ance :5 a p]son1 directly or indirectly1 or act+ ?r\gh or 9 conc]t ) #a or m p]sons-- 7,a7 owns1 controls1 or has ! p[] to vote #be p]c5t or m ( any class ( vot+ securities ( a depository in/itution or hold+ company !re(2 7,b7 controls 9 any mann] ! election ( a majority ( ! directors ( a depository in/itution or hold+ company !re(2 or 7,c7 has ! p[] to ex]cise a controll+ influ5ce ov] ! managem5t or policies ( ! depository in/itution or hold+ company !re(4 7#g7 ,crypto asset ,! t]m crypto asset means a natively electronic asset t conf]s economic1 propriet>y1 or access rights or p[]s & is record$ us+ cryptographically secur$ di/ribut$ l$g] te*nology1 or any simil> analog4 7#h7 ,depository in/itution ,! t]m depository in/itution-- 7,a7 has ! mean+ giv5 t t]m 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a772 & 7,b7 includes a depository in/itution op]at+ "u subsection 7a77#b7 ( section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg71 z am5d$ by ?is ,act1 or a sub/antially simil> ,/ate law1 :i* is exclusively engag$ 9 issu+ paym5t /ableco9s1 provid+ safekeep+1 tru/1 or cu/odial s]vices1 or activities incid5tal to ! =ego+4 7#i7 ,di/ribut$ l$g] ,! t]m di/ribut$ l$g] means te*nology t enables ! op]ation & use ( a l$g] t-- 7,a7 is %>$ across a set ( di/ribut$ nodes t p>ticipate 9 a network & /ore a complete or p>tial replica ( ! l$g]1 :i* may be public or private2 7,b7 is syn*roniz$ betwe5 ! nodes2 7,c7 has data app5d$ to ! l$g] by foll[+ ! specifi$ cons5sus me*anism ( ! l$g]2 7,d7 may be accessible to anyone or re/rict$ to a subset ( p>ticipants2 & 7,e7 may require p>ticipants to h au?orization to p]=m c]ta9 actions or require no au?orization4 7#aj7 ,in/itution-affiliat$ p>ty ,) respect to a paym5t /ableco9 issu]1 ! t]m in/itution-affiliat$ p>ty means-- 7,a7 any director1 (fic]1 employee1 or p]son ) a controll+ int]e/ 91 or act+ z an ag5t =1 ! paym5t /ableco9 issu]2 7,b7 a consultant1 jo9t v5ture p>tn]1 & any o!r p]son t p>ticipates 9 ! conduct ( ! affairs ( ! paym5t /ableco9 issu]2 or 7,c7 any indep5d5t contractor provid+ s]vices = ! paym5t /ableco9 issu]1 includ+ any attorney1 apprais]1 or acc\ntant4 7#aa7 ,insur$ depository in/itution ,! t]m insur$ depository in/itution means-- 7,a7 an insur$ depository in/itution1 z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 & 7,b7 an insur$ cr$it union1 z def9$ 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#ab7 ,national paym5t /ableco9 issu] ,! t]m national paym5t /ableco9 issu] means a depository in/itution *>t]$ by ! ,comptroll] or a ,/ate bank sup]visor :i* is approv$ by ! ,bo>d to conduct paym5t /ableco9 activities "u section #g4 7#ac7 ,paym5t /ableco9 ,! t]m paym5t /ableco9 means crypto asset-- 7,a7 t is1 or is design$ to be1 us$ z a means ( paym5t or settlem5t2 7,b7 ! issu] ( :i*-- 7i7 is obligat$ to conv]t1 r$eem1 or repur*ase = a fix$ am\nt ( ,unit$ ,/ates doll>s2 or 7ii7 repres5ts1 or creates ! reasonable expectation1 t ! crypto asset w ma9ta9 a /able value relative to ! value ( a fix$ am\nt ( ,unit$ ,/ates doll>s2 & 7,c7 t is n-- 7i7 ,unit$ ,/ates co9s1 a ,f$]al ,res]ve note or o!r lawful money 7z t t]m is us$ 9 ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #daa771 money issu$ by a c5tral bank1 or money issu$ by an int]gov]nm5tal organization pursuant to an agreem5t by "o or m gov]nm5ts2 or 7ii7 a security issu$ by an inve/m5t company regi/]$ "u section #h7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#h7;a774 7#ad7 ,paym5t /ableco9 issu] ,! t]m paym5t /ableco9 issu] means-- 7,a7 a non-depository tru/ company *>t]$ by a ,/ate bank sup]visor t is regi/]$1 or requir$ to be regi/]$1 ) ! ,bo>d to issue paym5t /ableco9s2 or 7,b7 a depository in/itution *>t]$ by ! ,comptroll] or a ,/ate bank sup]visor t is au?oriz$1 or requir$ to be au?oriz$1 to become a national paym5t /ableco9 issu] by ! ,bo>d to issue paym5t /ableco9s1 includ+ a depository in/itution subsidi>y ( an insur$ depository in/itution or bank hold+ company4 7#ae7 ,/ate bank sup]visor ,! t]m ,/ate bank sup]visor has ! mean+ giv5 t t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#af7 ,subcu/odian ,! t]m subcu/odian means a p]son t ma9ta9s actual possession or control ( ! private keys relat+ to a paym5t /ableco9 & has a contractual relation%ip ) ! cu/odian ( record ( ! paym5t /ableco94 #c4 ,g5]al requirem5ts = paym5t /ableco9 issu]s 7a7 ,/ableco9s g5]ally 7#a7 ,issue ,a paym5t /ableco9 may only be issu$ directly or indirectly 9 ! ,unit$ ,/ates by-- 7,a7 a non-depository tru/ company t has regi/]$ ) ! ,bo>d consi/5t ) section #f & = :i* ! nom9al value ( all out/&+ paym5t /ableco9s does n exce$ #aj1jjj1jjj1jjj1 z adju/$ "u subsection 7b72 or 7,b7 by a depository in/itution t has be5 au?oriz$ z a national paym5t /ableco9 issu] consi/5t ) section #g4 7#b7 ,prohibition on issuance ,except z o!rwise provid$ "u p>agraph 7#a71 x %all be unlawful = any p]son to engage 9 ! bus9ess ( issu+ a paym5t /ableco91 directly or indirectly1 9 ! ,unit$ ,/ates1 ?r\gh any means or in/rum5ts ( transportation or communication 9 ! ,unit$ ,/ates1 or to a p]son 9 ! ,unit$ ,/ates4 7#c7 ,(f]s or sales 7,a7 ,9 g5]al ,except z o!rwise provid$ 9 ?is section1 x %all be unlawful = any p]son to (f] or sell a paym5t /ableco9 ?r\gh ! use ( any m$ium or by any means ( access 9 int]/ate comm]ce 9 ! ,unit$ ,/ates or to (f] or sell a paym5t /ableco9 to a ,unit$ ,/ates p]son liv+ 9 ! ,unit$ ,/ates4 7,b7 ,exception ,subp>agraph 7,a7 does n apply to ! sale ( a paym5t /ableco9 by a ,unit$ ,/ates p]son liv+ 9 ! ,unit$ ,/ates4 7b7 ,adju/m5t ( ?re%old ,n less frequ5tly ?an once e #d ye>s1 ! ,bo>d %all issue rules adju/+ ! ?re%old "u subsection 7a77#a77;,a7 solely to acc\nt = inflation4 7c7 ,algori?mic paym5t /ableco9s ,x %all be unlawful = any p]son to engage 9 ! bus9ess ( issu+1 creat+1 or orig9at+ an algori?mic paym5t /ableco94 7d7 ,safe h>bors 7#a7 ,9 g5]al ,! ,bo>d %all issue regulations provid+ limit$ safe h>bors f ?is section t are consi/5t ) ! purposes ( ?is ,act4 7#b7 ,regulation requirem5ts ,regulations issu$ pursuant to p>agraph 7#a7 %all provide t any safe h>bors applicable to a paym5t /ableco9 issu] %all be made available on an equal basis to any issu] *>t]$ by ei!r ! ,comptroll] or a ,/ate bank sup]visor4 7#c7 ,safe h>bors ,safe h>bors "u ?is section may include-- 7,a7 a pilot program all[+ = limit$ issuance ( paym5t /ableco9s by entities n o!rwise au?oriz$ "u ?is section1 subject to appropriate safegu>ds & ov]sight1 9 ord] to fo/] responsible innovation & competition 9 ! paym5t /ableco9 m>ket2 & 7,b7 a safe h>bor = paym5t a paym5t /ableco9 issu] t is subject to compreh5sive regulation & sup]vision by a =eign f9ancial regulatory au?ority 9 a jurisdiction ) an equival5t regulatory framework to ! ,unit$ ,/ates1 z det]m9$ by ! ,bo>d1 9 consultation ) ! ,comptroll] & ,/ate bank sup]visors4 7e7 ,extrat]ritorial effect ,?is section is int5d$ to h extrat]ritorial effect4 #d4 ,prud5tial requirem5ts applicable to all paym5t /ableco9 issu]s 7a7 ,cu/om] protection & segregation ,a p]son :o provides cu/odial s]vices1 includ+ subcu/odian or o!r safekeep+ s]vices1 = paym5t /ableco9s %all-- 7#a7 treat & deal ) ! paym5t /ableco9s & ca% ( a cu/om] z belong+ to ! cu/om]2 & 7#b7 take appropriate /eps to protect ! paym5t /ableco9s & ca% ( a cu/om] f any claims ( cr$itors ( ! p]son4 7b7 ,fur!r requirem5ts relat+ to segregation 7#a7 ,9 g5]al ,a p]son describ$ 9 subsection 7a7 may1 = conv5i5ce1 comm+le & deposit ! paym5t /ableco9s & ca% ( a cu/om] 9 an acc\nt hold+ ! paym5t /ableco9s & ca% ( m ?an #a cu/om]1 b :i* is sep>ate f ! propriet>y assets ( ! issu]4 7#b7 ,transactions ,su* %>e ( ! paym5t /ableco9s & ca% ( a cu/om] 9 an acc\nt describ$ 9 p>agraph 7#a7 t %all be necess>y to transf]1 adju/1 or settle a transaction or transf] ( assets may be )drawn & appli$ to su* purposes1 includ+ ! paym5t ( commissions1 taxes1 /orage fees1 & o!r *>ges lawfully accru+ 9 connection ) ! provision ( cu/odial s]vices4 7#c7 ,rule or ord] relat+ to comm+l+ ,! ,bo>d1 9 consultation ) ! ,comptroll] & ,/ate bank sup]visors1 may prescribe1 by rule or ord]1 t cu/om] paym5t /ableco9s or ca% may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r assets receiv$ by a p]son describ$ 9 subsection 7a7 & requir$ by ! ,bo>d to be sep>ately acc\nt$ =1 treat$ z1 & dealt ) z belong+ to cu/om]s4 7c7 ,prohibition on rehypo!cation ,paym5t /ableco9 res]ves requir$ "u sections #f7;f7 & #g7;e7 %all n be pl$g$1 rehypo!cat$1 or reus$1 except = ! purpose ( creat+ liquidity to meet reasonable expectations ( reque/s to r$eem paym5t /ableco9s1 su* t res]ves 9 ! =m ( ,treasury bills1 bonds1 or notes may be pl$g$ z collat]al = repur*ase agreem5ts ) a maturity ( n m ?an #g days1 if-- 7#a7 ! repur*ase agreem5ts are cle>$ by a c5tral cle>+ c\nt]p>ty t is approv$ by ! ,bo>d2 or 7#b7 ! paym5t /ableco9 issu] has obta9$ ! approval ( ! ,bo>d & ! ,comptroll] or ,/ate bank sup]visor1 z applicable4 7d7 ,disclosures ( assets 7#a7 ,9 g5]al ,n lat] ?an #aj bus9ess days aft] ! end ( ea* mon?1 a paym5t /ableco9 issu] %all disclose1 9 a publicly accessible mann]1 a summ>y description t includes-- 7,a7 ! assets back+ ! paym5t /ableco91 ! value ( ! assets1 & ! numb] ( out/&+ paym5t /ableco9s1 z ( ! la/ day ( ! mon?2 & 7,b7 a report ( all in/ances 9 :i* ! paym5t /ableco9 issu] fail$ to comply ) any requirem5t "u section #f7;f7 or #g7;e74 7#b7 ,fil+ ) ! ,bo>d ,at ! "t ( disclosure ( ! summ>y description "u p>agraph 7#a71 ! *ief f9ancial (fic] ( a paym5t /ableco9 issu] %all also file ! summ>y description ) ! ,bo>d "u p5alty ( p]jury4 7#c7 ,publication by ! ,bo>d ,n lat] ?an #aj bus9ess days aft] receiv+ a fil+ "u p>agraph 7#b71 ! ,bo>d %all make ! fil+ available on a website ( ! ,bo>d4 7#d7 ,v]ification ( disclosures ,! ,comptroll] or ,/ate bank sup]visor %all1 z "p ( ! regul> exam9ation ( ! paym5t /ableco9 issu]1 v]ify ! composition ( ! assets & ! accuracy ( ! summ>y description "u p>agraph 7#a74 7e7 ,disclosures to cu/om]s ,a paym5t /ableco9 issu] %all cle>ly disclose to cu/om]s t a paym5t /ableco9 is n gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t & is n subject to deposit or %>e insurance by ! ,f$]al ,deposit ,insurance ,corporation or ! ,national ,cr$it ,union ,adm9i/ration4 7f7 ,misrepres5tation ( disclosures ,a paym5t /ableco9 issu] t misrepres5ts a disclosure "u subsection 7d7 or 7e7 %all be subject to ! p5alty "u section #ah7;a77#d7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;a77#d77 or section #gji ( title #ah1 ,unit$ ,/ates ,code1 z applicable4 7g7 ,r$emptions ,n lat] ?an #a bus9ess day aft] ! receipt ( a r$emption reque/ ( a cu/om]1 a paym5t /ableco9 issu] %all r$eem an out/&+ paym5t /ableco9 ( t paym5t /ableco9 issu] at p> 9 legal t5d]1 z def9$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code4 7h7 ,limitation on activities ,z det]m9$ by ! ,comptroll] or ,/ate bank sup]visor1 9 consultation ) ! ,bo>d1 a paym5t /ableco9 issu] may conduct only ! foll[+ activities3 7#a7 ,managem5t ( requir$ paym5t /ableco9 res]ves "u sections #f7;f7 & #g7;e74 7#b7 ,cu/odial s]vices4 7#c7 ,settlem5t & cle>+4 7#d7 ,po/-trade s]vices4 7#e7 ,incid5tal activities relat+ to ! issuance & r$emption ( paym5t /ableco9s & managem5t ( requir$ res]ves4 7i7 ,contract$ s]vices 7#a7 ,9 g5]al ,except z o!rwise provid$ "u p>agraph 7#b71 :5ev] a paym5t /ableco9 issu]1 or an affiliate !re(1 relies on or causes to be p]=m$ = itself1 by contract1 any s]vices or activities au?oriz$ "u ?is ,act or t are necess>y to ! function+ ( ! paym5t /ableco91 :e!r on or (f its premises-- 7,a7 ! p]son t p]=ms su* s]vices or activities %all be subject to regulation & sup]vision by ! ,comptroll] or ,/ate bank sup]visor t sup]vises ! paym5t /ableco9 issu]1 z applicable1 & ! ,bo>d1 solely ) respect to ! limit$ scope ( ! p]=mance ( su* s]vices & activities2 7,b7 ! p]son t p]=ms su* s]vices or activities %all be subject to m9imum f9ancial res\rce requirem5ts e/abli%$ by ! ,bo>d1 9 consultation ) ! ,comptroll] & ,/ate bank sup]visors1 & %all be deem$ a f9ancial in/itution = purposes ( title ,v ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq472 7,c7 n lat] ?an ! soon] ( #cj days aft] mak+ a contract = ! p]=mance ( su* s]vices or activities or ! date ( ! p]=mance ( su* s]vices or activities1 ! paym5t /ableco9 issu] %all notify ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d ( ! exi/5ce ( ! relation%ip2 7,d7 = ! purpose ( ensur+ compliance ) ! requirem5ts "u ?is subsection1 ! ,bo>d1 aft] mak+ be/ ef=ts to obta9 necess>y in=mation f public s\rces & exi/+ regulators1 includ+ ! prim>y ,f$]al or ,/ate regulator ( ! p]son p]=m+ su* s]vices or activities1 if applicable1 may conduct exam9ations ( & require reports f su* p]son solely ) respect to ! limit$ scope ( ! p]=mance ( s]vices & activities subject to ?is subsection2 & 7,e7 ! ,bo>d %all en=ce ! requirem5ts ( ?is subsection z if ! p]son provid+ su* s]vices or activities 0 a paym5t /ableco9 issu]4 7#b7 ,limitations ,p>agraph 7#a7 %all n apply to-- 7,a7 a p]son p]=m+ ! s]vices or activities describ$ 9 t p>agraph t is subject to sup]vision or regulation by a prim>y f9ancial regulatory ag5cy describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 ( section #b7ab7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecja7ab771 or a ,/ate bank sup]visor2 & 7,b7 a p]son t prim>ily engages 9 ! bus9ess ( provid+ h>dw>e or s(tw>e to facilitate ! cu/ody or safekeep+ by a cu/om] ( ! paym5t /ableco9s ( t cu/om]4 7j7 ,treatm5t "u ! ,bank ,secrecy ,act 7#a7 ,9 g5]al ,a paym5t /ableco9 issu] or a p]son provid+ contract$ s]vices "u subsection 7i7 %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 7#b7 ,exception ,?is subsection %all n apply to any p]son t prim>ily engages 9 ! bus9ess ( provid+ h>dw>e or s(tw>e to facilitate ! cu/ody or safekeep+ by a cu/om] ( ! paym5t /ableco9s ( t cu/om]4 7k7 ,collat]al availability 7#a7 ,9 g5]al ,! ,bo>d1 9 consultation ) ! ,comptroll]1 ,/ate bank sup]visors1 ! ,securities & ,ex*ange ,commission1 & ! ,commodity ,futures ,trad+ ,commission1 %all monitor ! use ( assets au?oriz$ z paym5t /ableco9 res]ves "u sections #f7;f7 & #g7;e71 includ+ ,unit$ ,/ates ,treasury bills1 bonds1 & notes1 & ! impact ( ! use ( su* assets on collat]al availability & ! effici5t function+ ( ! capital m>kets4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection %all be con/ru$ z giv+ ! ,bo>d sup]visory or regulatory au?ority n o!rwise grant$ "u ?is ,act4 #e4 ,hold+ company sup]vision1 affiliates1 m]g]s1 & acquisitions ( paym5t /ableco9 issu]s 7a7 ,hold+ companies & insur$ depository in/itutions 7#a7 ,9 g5]al ,a bank hold+ company or insur$ depository in/itution t has *>t]$ a depository in/itution z a paym5t /ableco9 issu] "u section #g %all be consid]$ a bank = purposes ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda et seq474 7#b7 ,exception ,p>agraph 7#a7 %all n apply to an insur$ depository in/itution t is a sav+s association = ! purposes ( section #aj7;a7 ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a774 7b7 ,hold+ company sup]vision = o!r depository in/itutions 7#a7 ,requirem5ts ,a p]son ) a controll+ int]e/ 9 a depository in/itution t is a paym5t /ableco9 issu] :i* is n subject to subsection 7a7 %all-- 7,a7 annually submit to ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d-- 7i7 audit$ f9ancial /atem5ts2 7ii7 a description ( all affiliat$ or p>5t entities & ! relation%ip ( ! affiliat$ or p>5t entity ) ! paym5t /ableco9 issu]2 & 7iii7 any o!r in=mation ! ,bo>d & ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 may by rule reasonably require2 & 7,b7 if requir$ by ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d1 execute a tax allocation agreem5t ) ! depository in/itution t-- 7i7 expressly /ates t an ag5cy relation%ip exi/s betwe5 ! p]son & ! depository in/itution ) respect to tax assets g5]at$ by ! depository in/itution1 & t ! tax assets are held 9 tru/ by ! p]son = ! b5efit ( ! depository in/itution & w be promptly remitt$ to ! depository in/itution2 & 7ii7 may provide t ! am\nt & tim+ ( any paym5ts or refunds to ! depository in/itution by ! p]son %\ld be no less favorable ?an if ! depository in/itution 7 a sep>ate taxpay]4 7#b7 ,exam9ation & dive/iture 7,a7 ,9 g5]al ,if ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d det]m9e x w\ld be manife/ly 9 ! public int]e/ & t reasonable cause exi/s to believe x is necess>y to protect ! cu/om]s ( a depository in/itution t is a paym5t /ableco9 issu]1 ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d may-- 7i7 conduct an exam9ation ( a p]son ) controll+ int]e/ 9 ! depository in/itution or o!rwise reasonably require in=mation f ! p]son2 & 7ii7 require a p]son ) a controll+ int]e/ 9 ! depository in/itution to dive/ itself ( or sev] its relation%ip ) ! depository in/itution if necess>y to ma9ta9 ! safety & s\ndness ( ! depository in/itution1 aft] consultation ) ! ,secret>y ( ! ,treasury & an opportunity = a public he>+4 7,b7 ,opportunity to rem$iate ,dive/iture %all n be ord]$ "u ?is section unless ! ,comptroll] or ,/ate bank sup]visor1 & ! ,bo>d provide ! depository in/itution ) a mean+ful opportunity to rem$iate f9d+s relat+ to ! safety & s\ndness ( ! depository in/itution4 7c7 ,requirem5t relat+ to controll+ int]e/s ,a p]son %all be pr$om9antly engag$ 9 f9ancial activities1 z def9$ 9 section #ajb7;a77#f7 ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecaa7;a77#f771 9 ord] to h a controll+ int]e/ 9 a paym5t /ableco9 issu]4 7d7 ,affiliates 7#a7 ,9 g5]al ,all subsidi>ies & affiliates ( a paym5t /ableco9 issu] t are n subject to subsection 7a7 %all be engag$ 9 activities t are f9ancial 9 nature 7z describ$ 9 section #d7k7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7k7774 7#b7 ,exception ,p>agraph 7#a7 %all n apply to a subsidi>y or affiliate t acc\nts = less ?an #be p]c5t ( ! rev5ue ( ! hold+ company ( ! subsidi>y or affiliate4 7#c7 ,transactions ) affiliates ,a paym5t /ableco9 issu] is subject to ! same re/rictions on transactions ) affiliates1 to ! same ext5t & subject to ! same exceptions & exemptions z a memb] bank "u sections #bc;,a & #bc;,b ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cga;c1 #cga;c-#a74 7e7 ,approval ( m]g]s & acquisitions 7#a7 ,9 g5]al ,no p]son may obta9 a controll+ int]e/ 9 a paym5t /ableco9 issu] t is n subject to section 7a7 )\t ! approval ( ! ,bo>d & ! ,comptroll] or ,/ate bank sup]visor1 z applicable4 7#b7 ,rules ,! ,bo>d1 9 consultation ) ! ,comptroll] & ,/ate bank sup]visors1 %all adopt rules to implem5t p>agraph 7#a7 t1 consi/5t ) ?is section1 %all be z close z practicable to ! process us$ by an appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c7q7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7q777 9 evaluat+ & approv+ a *ange ( control ( an insur$ depository in/itution "u section #g7;j7 ( su* ,act 7#ab ,u4,s4,c4 #ahag7;j774 7#c7 ,scope ( rules ,crit]ia = approval "u ! rules adopt$ pursuant to p>agraph 7#b7 %all be exclusively limit$ to ! safety & s\ndness ( ! depository in/itution t issues a paym5t /ableco94 #f4 ,issuance ( paym5t /ableco9s by non-depository tru/ companies 7a7 ,9 g5]al 7#a7 ,9 g5]al ,a non-depository tru/ company may issue & r$eem paym5t /ableco9s & conduct o!r activities 9 accordance ) ?is section & section #d7;g7 if ! value ( all out/&+ paym5t /ableco9s 9 total does n exce$ #aj1jjj1jjj1jjj1 z adju/$ "u section #c7;b74 7#b7 ,issuance ?re%old exce$$ ,if a non-depository tru/ company exce$s ! ?re%old describ$ 9 p>agraph 7#a71 ! non-depository tru/ company %all1 n lat] ?an #ahj days aft] exce$+ ! ?re%old-- 7,a7 consi/5t ) subsection 7k71 file a complet$ application ) ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 to conv]t to a depository in/itution *>t] "u section #g & be approv$ z provid$ 9 t section2 or 7,b7 9 consultation ) ! ,/ate bank sup]visor1 implem5t a plan to appropriately limit activities bel[ ! ?re%old1 consi/5t ) ! safety & s\ndness ( ! non-depository tru/ company & cu/om] protection4 7b7 ,au?orization ,to issue paym5t /ableco9 7#a7 ,application 7,a7 ,9 g5]al ,a non-depository tru/ company %all submit to a ,/ate bank sup]visor1 sep>ately or z "p ( a *>t] application1 an application = au?orization to issue paym5t /ableco9s4 7,b7 ,/&>ds = evaluation ,! ,/ate bank sup]visor may consult ) ! ,bo>d ) respect to ! foll[+ exclusive set ( /&>ds prior to approv+ an application "u subp>agraph 7,a73 7i7 ,! ability ( ! applicant to ma9ta9 requir$ res]ves back+ ! paym5t /ableco9s4 7ii7 ,! f9ancial res\rces1 manag]ial or te*nical exp]tise1 & gov]nance ( ! applicant4 7iii7 ,! b5efit to ! public1 includ+ relat+ to innovation & competition4 7iv7 ,! /ability ( ! f9ancial sy/em ( ! ,unit$ ,/ates4 7#b7 ,regi/ration 7,a7 ,deadl9e 7i7 ,9 g5]al ,n lat] ?an #ahj days aft] ! approval ( an application "u p>agraph 7#a71 a non-depository tru/ company %all regi/] ) ! ,bo>d by submitt+ to ! ,bo>d a complete regi/ration /atem5t4 7ii7 ,ext5sion ,! ,bo>d may ext5d ! deadl9e "u clause 7i7 by an additional #ahj days1 if ! ,bo>d det]m9es appropriate4 7,b7 ,cont5ts ( a complete regi/ration /atem5t 7i7 ,rules requir$ ,consi/5t ) section #ae ( ?is ,act1 ! ,bo>d1 9 consultation ) ,/ate bank sup]visors1 %all issue rules describ+ ! cont5t1 docum5ts1 & mat]ials requir$ to be submitt$ to ! ,bo>d t con/itute a complete regi/ration /atem5t1 :i* %all include mat]ials requir$ to be fil$ 9 an application to comply ) ! /&>ds "u p>agraph 7#a77;,b74 7ii7 ,complet5ess ,if ! ,/ate bank sup]visor det]m9es t an applicant has submitt$ all ( ! mat]ials requir$ "u ?is subp>agraph1 ! regi/ration %all be deem$ complete4 7#c7 ,au?orization to issue paym5t /ableco9s 7,a7 ,effective date 7i7 ,9 g5]al ,an approval ( an application "u p>agraph 7#a7 %all be deem$ effective on ! date t is #ij days aft] ! date ! applicant submits a complete regi/ration /atem5t to ! ,bo>d "u p>agraph 7#b71 unless ! ,bo>d1 by a vote ( #b_/c ( all memb]s1 votes to d5y ! application by writt5 ord] expla9+ ! reasons = d5ial4 7ii7 ,ext5sion ,^u ! reque/ ( an applicant1 ! ,bo>d may ext5d ! effective date "u clause 7i74 7,b7 ,issue prohibit$ be=e effective date ,a non-depository tru/ company may n issue paym5t /ableco9s be=e ! effective date "u subp>agraph 7,a74 7#d7 ,reque/ = additional in=mation ,no?+ 9 ?is subsection %all be con/ru$ z prohibit+ ! ,bo>d f reque/+ fur!r in=mation f an applicant1 b any reque/ by ! ,bo>d = fur!r in=mation f an applicant %all n affect ! /atus ( ! regi/ration /atem5t z complete1 z provid$ "u p>agraph 7#b77;,b77ii74 7#e7 ,public availability ( fil+s ,! ,bo>d %all make ea* regi/ration /atem5t fil$ ) ! ,bo>d "u ?is section available to ! public on ! website ( ! ,bo>d4 7#f7 ,consultation ,! ,bo>d %all consult ) ! applicable ,/ate bank sup]visor relat+ to a non-depository tru/ company regi/ration "u ?is section1 :i* may include %>+ mat]ials submitt$ z "p ( ! application to issue a paym5t /ableco94 7c7 ,sup]vision1 regulation1 & en=cem5t 7#a7 ,sup]vision au?ority ,^u ! fil+ ( a complete regi/ration /atem5t ) ! ,bo>d1 a non-depository tru/ company %all be subject to sup]vision by ! ,/ate bank sup]visor1 & ! ,bo>d & ,/ate bank sup]visor %all h en=cem5t au?ority z provid$ 9 section #aa4 7#b7 ,regul> exam9ations ,! applicable ,/ate bank sup]visor %all make regul> exam9ations ( a non-depository tru/ company au?oriz$ to issue a paym5t /ableco9 "u ?is section on a regul> basis 9 ord] to in=m su* ,/ate bank sup]visor (-- 7,a7 ! nature ( ! op]ations & f9ancial condition ( ! non-depository tru/ company & any affiliates2 7,b7 ! f9ancial1 op]ational1 & o!r risks )9 ! non-depository tru/ company t may pose a ?reat to-- 7i7 ! safety & s\ndness ( ! non-depository tru/ company2 or 7ii7 ! /ability ( ! f9ancial sy/em ( ! ,unit$ ,/ates2 & 7,c7 ! sy/ems ( ! non-depository tru/ company = monitor+ & controll+ ! risks describ$ 9 subp>agraph 7,b74 7d7 ,submission ( reports ,at ! frequ5cy e/abli%$ by rule ( ! ,bo>d1 9 consultation ) ,/ate bank sup]visors1 ea* non-depository tru/ company subject to ?is section %all submit a report ( condition "u oa? to ! applicable ,/ate bank sup]visor relat+ to-- 7#a7 ! f9ancial condition & /atus ( sy/ems = monitor+ & controll+ f9ancial & op]at+ risks ( ! non-depository tru/ company2 & 7#b7 compliance by ! non-depository tru/ company1 & any subsidi>y !re(1 ) ?is ,act & o!r applicable laws4 7e7 ,exi/+ reports & exam9ations 7#a7 ,9 g5]al ,9 sup]vis+ a non-depository tru/ company "u ?is section1 a ,/ate bank sup]visor %all1 to ! fulle/ ext5t possible1 use exi/+ reports & o!r sup]visory in=mation & avoid duplication ( exam9ation activities1 report+ requirem5ts1 & reque/s = in=mation4 7#b7 ,reports to ! ,bo>d ,ea* ,/ate bank sup]visor %all promptly provide to ! ,bo>d all reports "u subsection 7d7 & reports ( exam9ations "u ?is section4 7f7 ,res]ve requirem5ts 7#a7 ,9 g5]al ,a non-depository tru/ company t issues a paym5t /ableco9 "u ?is section %all ma9ta9 res]ves ( n less ?an #ajj p]c5t ( ! nom9al value ( all out/&+ paym5t /ableco9s issu$ by ! non-depository tru/ company1 z ( ! end ( ea* bus9ess day4 ,a non-depository tru/ company may ma9ta9 res]ves compris$ (-- 7,a7 ,unit$ ,/ates co9s1 curr5cy1 or o!r in/rum5t t is legal t5d] describ$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code2 7,b7 dem& deposits at a depository in/itution1 except t deposits 9 an insur$ depository in/itution %all n exce$ ! limit ( deposit or %>e insurance available = t acc\nt2 7,c7 ,unit$ ,/ates ,treasury bills1 bonds1 or notes ) a maturity date ( #ij days or less f ! date ( pur*ase2 & 7,d7 repur*ase agreem5ts1 ) a maturity date ( #g days or less1 t are back$ by ,unit$ ,/ates ,treasury bills ) a maturity date ( #a ye> or less f ! date ( ! repur*ase agreem5t4 7g7 ,cu/ody ,a non-depository tru/ company %all be ! legal cu/odian ( requir$ paym5t /ableco9 res]ves "u subsection 7f71 b ! non-depository tru/ company %all use a depository in/itution z subcu/odian to provide = ! safekeep+ ( res]ves4 7h7 ,relation to ,gramm-,lea*-,bliley ,act ,a non-depository tru/ company t issues a paym5t /ableco9 "u ?is section %all be deem$ to be a f9ancial in/itution = ! purposes ( title ,v ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq474 7i7 ,rules 7#a7 ,9 g5]al ,! ,bo>d1 9 consultation ) ! ,/ate bank sup]visors & ! ,f9ancial ,crimes ,en=cem5t ,network1 %all adopt rules to implem5t ?is section1 includ+-- 7,a7 a simplifi$ capital treatm5t = non-depository tru/ companies "u ?is section1 :i* %all be exce$ ! great] ( ! project$ receiv]%ip co/s ( ! non-depository tru/ company or ! project$ co/s ( op]ation ( ! non-depository tru/ company ov] a #c-ye> p]iod2 7,b7 appropriate liquidity1 int]e/ rate1 & risk managem5t /&>ds comm5surate ) ! size ( a non-depository tru/ company2 7,c7 managem5t practices ) respect to requir$ paym5t /ableco9 assets2 7,d7 appropriate op]ational1 compliance1 & in=mation te*nology risk managem5t1 includ+ ,bank ,secrecy ,act & sanctions compliance2 & 7,e7 o!r rules requir$ by ?is section4 7#b7 ,significant diff]5ces ,9 det]m9+ capital requirem5ts applicable to a non-depository tru/ company t has no mat]ial assets o!r ?an requir$ paym5t /ableco9 assets "u ?is section-- 7,a7 ! non-depository tru/ company %all n be subject to requirem5ts simil> to section #aga ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga72 & 7,b7 ,/ate bank sup]visors & ! ,bo>d %all take into acc\nt ! limit$ risks ( ! assets ( ! non-depository tru/ company4 7j7 ,rules ( con/ruction ,no?+ 9 ?is section may be con/ru$ z-- 7#a7 prev5t+ a ,/ate bank sup]visor f impos+ additional or m /rict regulatory /&>ds on a non-depository tru/ company = issu+ paym5t /ableco9s2 or 7#b7 affect+ exi/+ ,/ate laws gov]n+ int]/ate tru/ company bus9ess or p]mitt+ non-depository tru/ companies to conduct paym5t /ableco9 activities on an int]/ate basis :i* are inconsi/5t ) ,/ate laws gov]n+ int]/ate tru/ company bus9ess4 7k7 ,plann+ = conv]sion ,n lat] ?an #ahj days aft] ! date t ! nom9al value ( all out/&+ paym5t /ableco9s issu$ by a non-depository tru/ company fir/ exce$s #i1jjj1jjj1jjj1 z adju/$ "u section #c7;b71 at ! end ( a bus9ess day1 ! non-depository tru/ company %all1 9 consultation ) ! applicable ,/ate bank sup]visor1 develop a plan = ! conv]sion ( ! non-depository tru/ company into a depository in/itution "u section #g1 :i* may include capital plann+1 managem5t plann+1 & ?ird-p>ty v5dor managem5t4 7l7 ,exi/+ non-,depository tru/ companies ,a non-depository tru/ company %all only conduct paym5t /ableco9 activities specifi$ "u ?is ,act )9 ! tru/ company4 #g4 ,issuance ( paym5t /ableco9s by depository in/itutions 7a7 ,9 g5]al 7#a7 ,9 g5]al ,a depository in/itution may issue & r$eem paym5t /ableco9s & conduct o!r activities 9 accordance ) ?is section & section #d7;g74 7#b7 ,*>t] ( depository in/itutions 7,a7 ,9 g5]al ,an insur$ depository in/itution or bank hold+ company %all *>t] a sep>ate depository in/itution to issue a paym5t /ableco94 7,b7 ,?re%old ,a paym5t /ableco9 issu] ) ! nom9al value ( all out/&+ units ( ! /ableco9 :i* exce$s #aj1jjj1jjj1jjj 7z adju/$ "u section #c7;b77 %all be a depository in/itution "u ?is section1 b no?+ %all be con/ru$ z prohibit+ a paym5t /ableco9 issu] ) less ?an #aj1jjj1jjj1jjj ( nom9al value ( out/&+ paym5t /ableco9s f obta9+ a depository in/itution *>t] "u ?is section4 7b7 ,au?orization ,to issue paym5t /ableco9 7#a7 ,application 7,a7 ,application to *>t]+ au?ority ,a depository in/itution %all submit1 sep>ately or z "p ( a *>t] application1 to ! ,comptroll] or a ,/ate bank sup]visor1 z applicable1 an application = au?orization to issue paym5t /ableco9s4 7,b7 ,application to ,bo>d z national paym5t /ableco9 issu] ,at ! same "t z ! fil+ ( an application "u p>agraph 7#a71 a depository in/itution %all submit to ! ,bo>d an application = au?orization z a national paym5t /ableco9 issu]4 7#b7 ,/&>ds = approval ,! foll[+ exclusive set ( /&>ds %all gov]n ! decision ( ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 ) respect to an application "u p>agraph 7#a73 7,a7 ,! ability ( ! applicant to ma9ta9 requir$ res]ves back+ ! paym5t /ableco9s requir$ "u ?is section4 7,b7 ,! f9ancial res\rces1 manag]ial or te*nical exp]tise1 & gov]nance ( ! applicant1 includ+ risk managem5t & compliance4 7,c7 ,! b5efit to ! public1 includ+ relat+ to innovation & competition4 7,d7 ,! /ability ( ! f9ancial sy/em ( ! ,unit$ ,/ates4 7#c7 ,application cont5ts 7,a7 ,rules requir$ ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d1 9 consultation ) ! ,comptroll] & ,/ate bank sup]visors1 %all issue rules describ+ ! cont5t1 docum5ts1 & mat]ials requir$ to be submitt$ to ! ,bo>d t con/itute a complete application1 :i* %all include-- 7i7 a tailor$ recov]y & resolution plan1 consi/5t ) ! /&>ds adopt$ "u subsection 7h77#a77;,e71 t w\ld p]mit ! ord]ly resumption ( a safe & s\nd op]ation or ! ord]ly w9d-d[n ( op]ations 9 ! ev5t ( di/ress1 includ+ ! r$emption ( all out/&+ paym5t /ableco9s2 7ii7 a draft cu/om] agreem5t2 7iii7 a fl[ ( funds explanation2 7iv7 an in=mation te*nology op]ations & security plan2 & 7v7 all mat]ials requir$ to comply ) ! /&>ds "u p>agraph 7#b74 7,b7 ,complet5ess ,if ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 det]m9es t an applicant has submitt$ all ( ! mat]ials requir$ "u ?is p>agraph1 ! application %all be deem$ complete4 7#d7 ,public notice 7,a7 ,9 g5]al ,! ,bo>d %all provide a copy ( ea* application "u ?is section to ! public 7) any confid5tial in=mation r$act$7 & provide = a #fj-;day public comm5t p]iod dur+ :i* ! public may submit writt5 comm5ts on ! application4 7,b7 ,exception ,! ,bo>d may waive ! public comm5t requirem5t "u subp>agraph 7,a7 if ! ,bo>d det]m9es t x mu/ act imm$iately to prev5t ! failure ( a depository in/itution or ! probable failure ( an affiliate ( ! in/itution4 7#e7 ,writt5 decision 7,a7 ,9 g5]al ,n lat] ?an #ahj days aft] receiv+ a complete application pursuant to p>agraph 7#c71 ! ,bo>d %all r5d] a writt5 decision to approve or d5y ! national paym5t /ableco9 issu] application "u p>agraph 7#a71 ) appropriate f9d+s1 & ! ,comptroll] or ,/ate bank sup]visor %all r5d] a decision on ! *>t] application z o!rwise provid$ by ,f$]al or ,/ate law4 7,b7 ,approval by majority vote ,! ,bo>d %all n approve an application "u p>agraph 7#a7 unless a majority ( its memb]s vote to approve4 7,c7 ,ext5sion ,^u ! reque/ ( an applicant1 ! ,bo>d may ext5d ! decision deadl9e ( ! ,bo>d "u subp>agraph 7,a74 7#f7 ,reque/s = additional in=mation ,no?+ 9 ?is subsection %all be con/ru$ z prohibit+ ! ,bo>d f reque/+ fur!r in=mation f an applicant1 b any reque/ by ! ,bo>d = fur!r in=mation f an applicant %all n affect ! /atus ( ! application z complete1 z provid$ "u p>agraph 7#c77;,b74 7c7 ,sup]vision ,^u au?orization z a national paym5t /ableco9 issu] "u ?is section1 a depository in/itution %all be subject to prud5tial sup]vision & regulation by ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d1 z specifi$ "u ?is ,act4 7d7 ,requir$ paym5t /ableco9 assets 7#a7 ,9 g5]al ,a depository in/itution t issues a paym5t /ableco9 "u ?is section %all ma9ta9 res]ves ( n less ?an #ajj p]c5t ( ! nom9al value ( all out/&+ paym5t /ableco9s1 z ( ! end ( ea* bus9ess day4 7#b7 ,composition ( res]ves ,a depository in/itution may ma9ta9 res]ves compris$ (-- 7,a7 ,unit$ ,/ates co9s1 curr5cy1 or o!r in/rum5t t is legal t5d] describ$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code2 7,b7 dem& deposits at a depository in/itution1 except t deposits 9 an insur$ depository in/itution %all n exce$ ! limit ( deposit or %>e insurance available = t acc\nt2 7,c7 balances held at a ,f$]al ,res]ve bank2 7,d7 ,unit$ ,/ates ,treasury bills1 notes1 or bonds ) a maturity date ( #ij days or less aft] ! date ( pur*ase2 & 7,e7 repur*ase agreem5ts ) a maturity date ( #g days or less1 t are back$ by ,unit$ ,/ates ,treasury bills ) a maturity date ( #a ye> or less f ! date ( ! repur*ase agreem5t4 7e7 ,call report ,z applicable1 ! ,comptroll] or ,/ate bank sup]visor & ! ,bo>d %all require a depository in/itution t issues a paym5t /ableco9 to report1 9 detail1 on ! composition ( ! assets & liabilities 9 ea* p]iodic report ( condition1 or 9 an alt]native =mat approv$ by ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil1 at ! frequ5cy o!rwise requir$ by law = depository in/itutions4 7f7 ,exam9ations 7#a7 ,use ( exi/+ reports ,9 sup]vis+ a depository in/itution "u ?is section1 ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d %all1 to ! fulle/ ext5t possible1 use exi/+ reports & o!r sup]visory in=mation & avoid duplication ( exam9ation activities1 report+ requirem5ts1 & reque/s = in=mation4 7#b7 ,regul> exam9ations ,! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d %all make regul> exam9ations ( a depository in/itution "u ?is section on a regul> basis 9 ord] to in=m ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d (-- 7,a7 ! nature ( ! op]ations & f9ancial condition ( ! depository in/itution & any affiliates2 7,b7 ! f9ancial1 op]ational1 & o!r risks )9 ! depository in/itution t may pose a ?reat to-- 7i7 ! safety & s\ndness ( ! depository in/itution2 or 7ii7 ! /ability ( ! f9ancial sy/em ( ! ,unit$ ,/ates2 & 7,c7 ! sy/ems ( ! depository in/itution = monitor+ & controll+ ! risks describ$ 9 subp>agraph 7,b74 7g7 ,relation to ,gramm-,lea*-,bliley ,act ,a depository in/itution t issues a paym5t /ableco9 "u ?is section %all be deem$ to be a f9ancial in/itution = ! purposes ( title ,v ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq474 7h7 ,rules 7#a7 ,9 g5]al ,! ,bo>d1 9 consultation ) ! ,comptroll]1 ,/ate bank sup]visors1 & ! ,f9ancial ,crimes ,en=cem5t ,network1 %all adopt rules to implem5t ?is section1 includ+-- 7,a7 capital treatm5t = depository in/itutions "u ?is section1 :i* %all be n great] ?an ! total sum (-- 7i7 ! great] (-- 7,i7 project$ receiv]%ip co/s2 or 7,,ii7 project$ co/s ( op]ation ov] a #c-ye> p]iod2 & 7ii7 ! sum (-- 7,i7 op]ational risk1 z provid$ "u p>agraph 7#b77;,c72 & 7,,ii7 collat]al reasonably ne$$ to address paym5t sy/em risk2 7,b7 manag+ liquidity1 lev]age1 & m>ket & int]e/ rate risk2 7,c7 managem5t practices ) respect to requir$ paym5t /ableco9 assets2 7,d7 appropriate op]ational1 compliance1 & in=mation te*nology risk managem5t1 includ+ ,bank ,secrecy ,act & sanctions compliance2 7,e7 tailor$ recov]y & resolution /&>ds relat+ to paym5t /ableco9s2 & 7,f7 ?ird-p>ty risk managem5t1 includ+ appropriate gov]nance ( relation%ips ) crypto asset ex*anges4 7#b7 ,significant diff]5ces ,9 det]m9+ capital requirem5ts applicable to a depository in/itution t has no mat]ial assets o!r ?an requir$ paym5t /ableco9 assets "u ?is section-- 7,a7 ! depository in/itution %all n be subject to section #aga ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga72 7,b7 ! ,bo>d1 9 consultation ) ! ,comptroll] & ,/ate bank sup]visors1 %all take into acc\nt ! significant diff]5ces betwe5 ! risks ( ! assets ( ! in/itution & ^? ( depository in/itutions ) assets t consi/ prim>ily ( comm]cial or consum] loans2 & 7,c7 assessm5t ( op]ational risk %all occur comm5surate ) ! size & complexity ( ! depository in/itution4 7i7 ,rules ( con/ruction ,no?+ 9 ?is ,act may be con/ru$ z-- 7#a7 prev5t+ ! ,comptroll] or a ,/ate bank sup]visor :i* *>t]s a depository in/itution f impos+ additional or m /rict regulatory /&>ds on ! in/itution = issu+ paym5t /ableco9s2 7#b7 mak+ inapplicable ! provisions ( section #bd7;j7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;a7j77 to a depository in/itution1 includ+ ! ability ( a depository in/itution to op]ate "u home ,/ate law on an int]/ate basis )\t fur!r lic5sure1 regi/ration1 or au?orization1 z provid$ 9 t ,act2 or 7#c7 requir+ a depository in/itution to obta9 deposit insurance to issue a paym5t /ableco9 "u ?is section or to conduct incid5tal activities "u ?is section4 7j7 ,conv]sion ( a non-,depository tru/ company paym5t /ableco9 issu] ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d1 9 consultation ) ! ,comptroll] & ,/ate bank sup]visors1 %all issue rules-- 7#a7 e/abli%+ a process = a non-depository tru/ company regi/]$ "u section #f to conv]t to a depository in/itution "u ?is section2 7#b7 sett+ =? an exp$it$ process = approval t is consi/5t ) ?is section2 & 7#c7 provid+ = ! implem5tation ( ! plan requir$ to be develop$ "u subsection 7l7 ( section #f ( ?is ,act4 7k7 ,exi/+ hold+ companies & depository in/itutions ,a bank hold+ company or insur$ depository in/itution %all only conduct paym5t /ableco9 activities au?oriz$ by ?is ,act )9 a depository in/itution subsidi>y ( ! insur$ depository in/itution or a bank hold+ company4 #h4 ,c]tificate ( au?ority to comm5ce bank+ = c]ta9 national associations ,section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg7 is am5d$-- 7#a7 9 subsection 7a71 9 ! ?ird s5t5ce1 by /rik+ to ^? ( a non-depository tru/ company & activities relat$ !reto4 & ins]t+ 8to-- 7#a7 ^? ( a non-depository tru/ company & fiduci>y activities relat$ !reto2 or 7#b7 ^? ( a depository in/itution = ! purposes ( issu+ a paym5t /ableco9 & activities relat$ !reto z a national paym5t /ableco9 issu] "u section #g ( ! ,lummis-,gillibr& ,paym5t ,/ableco9 ,act4 2 & 7#b7 by add+ at ! end ! foll[+3 7c7 ,! ,comptroll] may1 by rule1 e/abli% assessm5ts depository in/itutions engag$ 9 issu+ paym5t /ableco9s4 4 #i4 ,appo9tm5t ( ,,fdic z cons]vator or receiv] ( paym5t /ableco9 issu]s 7a7 ,def9ition ,z us$ 9 ?is section1 ! t]m cu/om] means a p]son1 or au?oriz$ repres5tative ( ! p]son1 t-- 7#a7 utiliz$ or is utiliz+ any s]vice ( a paym5t /ableco9 issu] ) respect to an acc\nt 9 ! "n ( ! p]son ma9ta9$ by ! paym5t /ableco9 issu]2 or 7#b7 is 9 possession or control ( a paym5t /ableco9 issu$ by a paym5t /ableco9 issu] = :i* ! paym5t /ableco9 issu] = :i* an op5 acc\nt ) ! issu] is ne$$ to r$eem ! paym5t /ableco94 7b7 ,fund+ 7#a7 ,9 g5]al ,a paym5t /ableco9 issu] %all n be *>g$ deposit insurance premiums = ! purposes ( ?is section1 b ! ,f$]al ,deposit ,insurance ,corporation 79 ?is section ref]r$ to z ! ,corporation7 may use ! capital ( ! paym5t /ableco9 issu] & any returns on requir$ paym5t /ableco9 res]ves to fund ! co/s ( a receiv]%ip or cons]vator%ip4 7#b7 ,limitation ,! ,corporation %all n ex]cise borr[+ au?ority "u section #ad ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbd7 relat$ to a receiv]%ip or cons]vator%ip "u ?is section4 7c7 ,liquidation z clos+ ( paym5t /ableco9 issu] ,= ! purposes ( ?is section1 a paym5t /ableco9 issu] %all be deem$ to h be5 clos$ on acc\nt or inability to meet ! dem&s ( its cu/om]s 9 any case 9 :i* x has be5 clos$ = ! purpose ( liquidation )\t adequate provision be+ made = paym5t ( its cu/om]s4 7d7 ,appo9tm5t ( ,corporation z cons]vator or receiv] 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( ,f$]al law1 ! law ( any ,/ate1 or ! con/itution ( any ,/ate1 ! ,corporation may accept appo9tm5t & act z cons]vator or receiv] = a paym5t /ableco9 issu] ^u appo9tm5t 9 ! mann] provid$ 9 p>agraph 7#b7 or 7#c74 7#b7 ,,occ depository in/itutions 7,a7 ,appo9tm5t 7i7 ,cons]vator ,! ,corporation may1 at ! discretion ( ! ,comptroll]1 be appo9t$ cons]vator ( a paym5t /ableco9 issu] :i* is a depository in/itution *>t]$ by ! ,comptroll] & ! ,corporation may accept su* appo9tm5t4 7ii7 ,receiv] ,! ,corporation %all be appo9t$ receiv]1 & %all accept su* appo9tm5t1 :5ev] a receiv] is appo9t$ = ! purpose ( liquidation or w9d+ up ! affairs ( a paym5t /ableco9 issu] :i* is a depository in/itution *>t]$ by ! ,comptroll]1 not)/&+ any o!r provision ( ,f$]al law4 7,b7 ,additional p[]s ,9 addition to & n 9 d]ogation ( ! p[]s conf]r$ & ! duties impos$ by ?is section on ! ,corporation z cons]vator or receiv]1 ! ,corporation1 to ! ext5t n inconsi/5t ) su* p[]s & duties1 %all h any o!r p[] conf]r$ on or any duty 7:i* is relat$ to ! ex]cise ( su* p[]7 impos$ on a cons]vator or receiv] = any ,f$]al depository in/itution "u any o!r provision ( law4 7,c7 ,corporation n subject to any o!r ag5cy ,:5 act+ z cons]vator or receiv] pursuant to an appo9tm5t describ$ 9 subp>agraph 7,a71 ! ,corporation %all n be subject to ! direction or sup]vision ( any o!r ag5cy or dep>tm5t ( ! ,unit$ ,/ates or any ,/ate 9 ! ex]cise ( ! ,corporation's rights1 p[]s1 & privileges4 7,d7 ,depository in/itution 9 cons]vator%ip subject to bank+ ag5cy sup]vision ,not)/&+ subp>agraph 7,c71 a paym5t /ableco9 issu] :i* is a depository in/itution *>t]$ by ! ,comptroll] = :i* ! ,corporation has be5 appo9t$ cons]vator %all rema9 subject to ! sup]vision ( ! ,comptroll]4 7#c7 ,/ate-*>t]$ paym5t /ableco9 issu]s 7,a7 ,appo9tm5t by ,/ate bank sup]visor ,:5ev] a ,/ate bank sup]visor appo9ts a cons]vator or receiv] = su* in/itution & t5d]s appo9tm5t to ! ,corporation1 ! ,corporation may accept su* appo9tm5t4 7,b7 ,additional p[]s ,9 addition to ! p[]s conf]r$ & ! duties relat$ to ! ex]cise ( su* p[]s impos$ by ,/ate law on any cons]vator or receiv] appo9t$ "u ! law ( su* ,/ate1 ! ,corporation1 z cons]vator or receiv] pursuant to an appo9tm5t describ$ 9 subp>agraph 7,a71 %all h ! p[]s conf]r$ & ! duties impos$ by ?is section on ! ,corporation z cons]vator or receiv]4 7,c7 ,corporation n subject to any o!r ag5cy ,:5 act+ z cons]vator or receiv] pursuant to an appo9tm5t describ$ 9 subp>agraph 7,a71 ! ,corporation %all n be subject to ! direction or sup]vision ( any o!r ag5cy or dep>tm5t ( ! ,unit$ ,/ates or any ,/ate 9 ! ag5cy or dep>tm5t ( ! ,unit$ ,/ates or any ,/ate 9 ! ex]cise ( its rights1 p[]s1 & privileges4 7,d7 ,issu] 9 cons]vator%ip subject to bank+ ag5cy sup]vision ,not)/&+ subp>agraph 7,c71 a ,/ate-*>t]$ paym5t /ableco9 issu] = :i* ! ,corporation has be5 appo9t$ cons]vator %all rema9 subject to ! sup]vision ( ! ,/ate bank sup]visor4 7#d7 ,gr\nds = appo9t+ cons]vator or receiv] ,! gr\nds = appo9t+ a cons]vator or receiv] 7:i* may be ! ,corporation7 = a paym5t /ableco9 issu] are z foll[s3 7,a7 ,assets insuffici5t = obligations ,! issu]'s assets are less ?an ! issu]'s obligations to its cr$itors & o!rs4 7,b7 ,sub/antial dissipation ,sub/antial dissipation ( assets or e>n+s due to-- 7i7 any violation ( any /atute or regulation2 or 7ii7 any unsafe or uns\nd practice4 7,c7 ,unsafe or uns\nd condition ,an unsafe or uns\nd condition to transact bus9ess4 7,d7 ,cease & desi/ ord]s ,any willful violation ( a cease & desi/ ord] :i* has become f9al4 7,e7 ,concealm5t ,any concealm5t ( ! in/itution's books1 pap]s1 records1 or assets1 or any refusal to submit ! in/itution's books1 pap]s1 records1 or affairs = inspection to any exam9] or to any lawful ag5t ( ! ,comptroll]1 ,/ate bank sup]visor1 or ! ,bo>d4 7,f7 ,inability to meet obligations ,! issu] is likely to be unable to pay its obligations or meet its cu/om]s' dem&s 9 ! normal c\rse ( bus9ess4 7,g7 ,losses ,! issu] has incurr$ or is likely to incur losses t w deplete all or sub/antially all ( its capital1 & !re is no reasonable prospect = ! in/itution to come into compliance ) capital requirem5ts specifi$ "u ?is ,act1 consi/5t ) ,bo>d regulation4 7,h7 ,violations ( law ,any violation ( any law or regulation1 or any unsafe or uns\nd practice or condition t is likely to-- 7i7 cause insolv5cy or sub/antial dissipation ( assets or e>n+s2 7ii7 weak5 ! issu]'s condition2 or 7iii7 o!rwise s]i\sly prejudice ! int]e/s ( ! in/itution's cu/om]s4 7,i7 ,cons5t ,! issu]1 by resolution ( its bo>d ( directors or its %>ehold]s or memb]s1 cons5ts to ! appo9tm5t4 7,j7 ,und]capitalization ( in/itution ,! in/itution is und]capitaliz$ z specifi$ by ,bo>d rule1 &-- 7i7 has no reasonable prospect ( becom+ adequately capitaliz$ 7z def9$ by ,bo>d rule72 7ii7 fails to become adequately capitaliz$ :5 requir$ to d s2 7iii7 fails to submit a capital re/oration plan2 or 7iv7 mat]ially fails to implem5t a capital re/oration plan4 7,k7 ,und]capitalization ( issu] ,! issu]-- 7i7 is critically und]capitaliz$1 z def9$ by ,bo>d rule2 or 7ii7 o!rwise has sub/antially insuffici5t capital4 7,l7 ,money laund]+ (f5se ,! ,attorney ,g5]al notifies ! ,bo>d1 ,comptroll]1 or ,/ate bank sup]visor1 z applicable1 or ! ,corporation 9 writ+ t ! paym5t /ableco9 issu] has be5 f\nd guilty ( a crim9al (f5se "u section #aief or #aieg ( title #ah1 ,unit$ ,/ates ,code1 or section #ecbb or #ecbd ( title #ca1 ,unit$ ,/ates ,code4 7#e7 ,directors n liable = acquiesc+ 9 appo9tm5t ( cons]vator or receiv] ,! memb]s ( ! bo>d ( directors ( a paym5t /ableco9 issu] %all n be liable to ! issu]'s %>ehold]s or cr$itors = acquiesc+ 9 or cons5t+ 9 good fai? to-- 7,a7 ! appo9tm5t ( ! ,corporation z cons]vator or receiv] = t issu]2 or 7,b7 an acquisition or comb9ation 9 :i* ! ,corporation requires ! issu] to be acquir$ or comb9$ ) ano!r paym5t /ableco9 issu]4 7e7 ,p[]s & duties ( ,corporation z cons]vator or receiv] 7#a7 ,rulemak+ au?ority ( ,corporation ,! ,corporation may prescribe su* regulations z ! ,corporation det]m9es to be appropriate reg>d+ ! conduct ( cons]vator%ips or receiv]%ips ( paym5t /ableco9 issu]s1 9 consultation ) ! ,comptroll]1 ,/ate bank sup]visors1 & ! ,bo>d4 7#b7 ,g5]al p[]s 7,a7 ,successor to in/itution ,! ,corporation %all1 z cons]vator or receiv]1 & by op]ation ( law1 succe$ to-- 7i7 all rights1 titles1 p[]s1 & privileges ( ! paym5t /ableco9 issu]1 & ( any /ockhold]1 memb]1 acc\n?old]1 depositor1 (fic]1 or director ( su* issu] ) respect to ! issu] & ! assets ( ! issu]2 & 7ii7 title to ! books1 records1 & assets ( any previ\s cons]vator or o!r legal cu/odian ( su* in/itution4 7,b7 ,op]ate ! in/itution ,! ,corporation may1 z cons]vator or receiv]-- 7i7 take ov] ! assets ( & op]ate ! paym5t /ableco9 issu] ) all ! p[]s ( ! memb]s or %>ehold]s1 ! directors1 & ! (fic]s ( ! issu] & conduct all bus9ess ( ! issu]2 7ii7 collect all obligations & money due to ! in/itution2 7iii7 p]=m all functions ( ! issu] 9 ! "n ( ! issu] :i* are consi/5t ) ! appo9tm5t z cons]vator or receiv]2 & 7iv7 pres]ve & cons]ve ! assets & prop]ty ( ! issu]4 7,c7 ,functions ( issu]'s (fic]s1 directors1 & %>ehold]s ,! ,corporation may1 by regulation or ord]1 provide = ! ex]cise ( any function by any memb] or /ockhold]1 director1 or (fic] ( any paym5t /ableco9 issu] = :i* ! ,corporation has be5 appo9t$ cons]vator or receiv]4 7,d7 ,p[]s z cons]vator ,! ,corporation may1 z cons]vator1 take su* action z may be-- 7i7 necess>y to put ! paym5t /ableco9 issu] 9 a s\nd & solv5t condition2 & 7ii7 appropriate to c>ry on ! bus9ess ( ! issu] & pres]ve & cons]ve ! assets & prop]ty ( ! issu]4 7,e7 ,additional p[]s z receiv] ,! ,corporation may1 z receiv]1 place ! paym5t /ableco9 issu] 9 liquidation & proce$ to realize ^u ! assets ( ! issu]1 hav+ due reg>d to ! conditions ( cr$it 9 ! locality4 7,f7 ,organization ( new in/itutions ,! ,corporation may1 z receiv]1 ) respect to any paym5t /ableco9 issu]1 organize a bridge paym5t /ableco9 issu] "u subsection 7m74 7,g7 ,m]g]2 transf] ( assets & liabilities 7i7 ,9 g5]al ,! ,corporation may1 z cons]vator or receiv]-- 7,i7 m]ge ! paym5t /ableco9 issu] ) ano!r paym5t /ableco9 issu]2 or 7,,ii7 subject to clause 7ii71 transf] any asset or liability ( ! issu] 9 default )\t any approval1 assignm5t1 or cons5t ) respect to su* transf]4 7ii7 ,approval by appropriate regulator ,no transf] describ$ 9 clause 7i77,,ii7 may be made to a paym5t /ableco9 issu] or )\t ! approval ( ! appropriate paym5t /ableco9 regulator = su* issu]4 7,h7 ,paym5t ( valid obligations ,! ,corporation1 z cons]vator or receiv]1 %all pay all valid obligations ( ! paym5t /ableco9 issu]1 z det]m9$ by ! ,corporation4 7,i7 ,subpo5a au?ority 7i7 ,9 g5]al ,! ,corporation may1 z cons]vator1 receiv]1 or exclusive manag] & = purposes ( c>ry+ out any p[]1 au?ority1 or duty ) respect to a paym5t /ableco9 issu] 7includ+ det]m9+ any claim aga9/ ! issu] & det]m9+ & realiz+ ^u any asset ( any p]son 9 ! c\rse ( collect+ money due ! issu]71 ex]cise any p[] e/abli%$ "u section #h7n7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7n77 & ! provisions ( su* section %all apply ) respect to ! ex]cise ( any su* p[] "u ?is subp>agraph 9 ! same mann] z su* provisions apply "u su* section4 7ii7 ,au?ority ( bo>d ( directors ,a subpo5a or subpo5a duces tecum may be issu$ "u clause 7i7 only by1 or ) ! writt5 approval (1 ! ,bo>d ( ,directors ( ! ,corporation or _! designees4 7iii7 ,rule ( con/ruction ,?is subsection %all n be con/ru$ z limit+ any rights t ! ,corporation1 9 any capacity1 may o!rwise h "u section #aj7;c7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbj7;c774 7,j7 ,incid5tal p[]s ,! ,corporation may1 z cons]vator or receiv]-- 7i7 ex]cise all p[]s & au?orities necess>y to conduct ! cons]vator%ip or receiv]%ip1 respectively1 & su* incid5tal p[]s z %all be necess>y to c>ry out su* p[]s2 & 7ii7 take any action au?oriz$ by ?is section1 :i* ! ,corporation det]m9es is 9 ! be/ int]e/s ( ! paym5t /ableco9 issu]1 its cu/om]s1 or ! ,corporation4 7,k7 ,utilization ( private sector ,9 c>ry+ out its responsibilities 9 ! managem5t & disposition ( assets f paym5t /ableco9 issu]s1 z cons]vator1 receiv]1 or 9 its corporate capacity1 ! ,corporation %all utilize ! s]vices ( private p]sons1 includ+ prop]ty managem5t1 auction m>ket+1 legal1 & brok]age s]vices1 only if su* s]vices are available 9 ! private sector & ! ,corporation det]m9es utilization ( su* s]vices is ! mo/ practicable1 effici5t1 & co/ effective4 7#c7 ,au?ority ( receiv] to det]m9e claims 7,a7 ,9 g5]al ,! ,corporation may1 z receiv]1 det]m9e claims 9 accordance ) ! requirem5ts ( ?is subsection & regulations prescrib$ "u p>agraph 7#d74 7,b7 ,notice requirem5ts ,! ,corporation1 z receiv]1 9 any case involv+ ! liquidation or w9d+ up ( ! affairs ( a clos$ paym5t /ableco9 issu]1 %all-- 7i7 promptly publi% a notice to ! paym5t /ableco9 issu]'s cr$itors to pres5t _! claims1 toge!r ) pro(1 to ! receiv] by a date specifi$ 9 ! notice :i* %all be n less ?an #ij days aft] ! publication ( su* notice2 & 7ii7 republi% su* notice approximately #a mon? & #b mon?s1 respectively1 aft] ! publication "u clause 7i74 7,c7 ,mail+ requir$ ,! ,corporation1 z receiv]1 %all mail a notice simil> to ! notice publi%$ "u subp>agraph 7,b77i7 at ! "t ( su* publication to any cr$itor %[n on ! issu]'s books-- 7i7 at ! cr$itor's la/ address appe>+ 9 su* books2 or 7ii7 ^u discov]y ( ! "n & address ( a claimant n appe>+ on ! issu]'s books )9 #cj days aft] ! discov]y ( su* "n & address4 7#d7 ,rulemak+ au?ority relat+ to det]m9ation ( claims 7,a7 ,9 g5]al ,! ,corporation may prescribe regulations reg>d+ ! all[ance or disall[ance ( claims by ! ,corporation1 z receiv]1 & provid+ = adm9i/rative det]m9ation ( claims & review ( su* det]m9ation4 7,b7 ,f9al settlem5t paym5t proc$ure ,9 ! h&l+ ( receiv]%ips ( paym5t /ableco9 issu]s1 to ma9ta9 ess5tial liquidity & to prev5t f9ancial disruption1 ! ,corporation may1 aft] ! decl>ation ( an issu]'s insolv5cy1 settle all unsecur$ claims on ! receiv]%ip ) a f9al settlem5t paym5t :i* %all con/itute full paym5t & disposition ( ! ,corporation's obligations to su* claimants4 7#e7 ,proc$ures = det]m9ation ( claims 7,a7 ,det]m9ation p]iod 7i7 ,9 g5]al ,be=e ! end ( ! #ahj-;day p]iod beg9n+ on ! date any claim aga9/ a paym5t /ableco9 issu] is fil$ ) ! ,corporation z receiv]1 ! ,corporation %all det]m9e :e!r to all[ or disall[ ! claim & %all notify ! claimant ( any det]m9ation ) respect to su* claim4 7ii7 ,ext5sion ( "t ,! p]iod describ$ 9 clause 7i7 may be ext5d$ by a writt5 agreem5t betwe5 ! claimant & ! ,corporation4 7iii7 ,mail+ ( notice suffici5t ,! requirem5ts ( clause 7i7 %all be deem$ to be satisfi$ if ! notice ( any det]m9ation ) respect to any claim is mail$ to ! la/ address ( ! claimant :i* appe>s-- 7,i7 on ! paym5t /ableco9 issu]'s books2 7,,ii7 9 ! claim fil$ by ! claimant2 or 7,,iii7 9 docum5ts submitt$ 9 pro( ( ! claim4 7iv7 ,cont5ts ( notice ( disall[ance ,if any claim fil$ "u clause 7i7 is disall[$1 ! notice to ! claimant %all conta9-- 7,i7 a /atem5t ( ea* reason = ! disall[ance2 & 7,,ii7 ! proc$ures available = obta9+ ag5cy review ( ! det]m9ation to disall[ ! claim or judicial det]m9ation ( ! claim4 7,b7 ,all[ance ( prov5 claims ,! ,corporation1 z receiv]1 %all all[ any claim receiv$ on or be=e ! date specifi$ 9 ! notice publi%$ "u p>agraph 7#c77;,b77i7 by ! receiv] f any claimant :i* is prov$ to ! satisfaction ( ! receiv]4 7,c7 ,disall[ance ( claims fil$ aft] end ( fil+ p]iod 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 claims fil$ aft] ! date specifi$ 9 ! notice publi%$ "u p>agraph 7#c77;,b77i7 %all be disall[$ & su* disall[ance %all be f9al4 7ii7 ,c]ta9 exceptions ,clause 7i7 %all n apply ) respect to any claim fil$ by any claimant aft] ! date specifi$ 9 ! notice publi%$ "u p>agraph 7#c77;,b77i7 & su* claim may be consid]$ by ! ,corporation1 z receiv]1 if-- 7,i7 ! claimant did n receive notice ( ! appo9tm5t ( ! receiv] 9 "t to file su* claim be=e su* date2 & 7,,ii7 su* claim is fil$ 9 "t to p]mit paym5t ( su* claim4 7,d7 ,au?ority to disall[ claims 7i7 ,9 g5]al ,! ,corporation1 z receiv]1 may disall[ any portion ( any claim by a cr$itor or claim ( security1 pref]5ce1 or priority :i* is n prov$ to ! satisfaction ( ! receiv]4 7ii7 ,paym5ts to less ?an fully secur$ cr$itors ,9 ! case ( a claim ( a cr$itor aga9/ a paym5t /ableco9 issu] :i* is secur$ by any prop]ty or o!r asset ( su* issu]1 ! ,corporation1 z receiv]-- 7,i7 may treat ! portion ( su* claim :i* exce$s an am\nt equal to ! fair m>ket value ( su* prop]ty or o!r asset z an unsecur$ claim aga9/ ! issu]2 & 7,,ii7 may n make any paym5t ) respect to su* unsecur$ portion ( ! claim o!r ?an 9 connection ) ! disposition ( all claims ( unsecur$ cr$itors ( ! issu]4 7,e7 ,no judicial review ( det]m9ation ,no c\rt may review ! ,corporation's det]m9ation pursuant to subp>agraph 7,d7 to disall[ a claim4 7,f7 ,legal effect ( fil+ 7i7 ,/atute ( limitations toll$ ,= purposes ( any applicable /atute ( limitations1 ! fil+ ( a claim ) ! ,corporation z receiv] %all con/itute a comm5cem5t ( an action4 7ii7 ,no prejudice to o!r actions ,subject to p>agraph 7#ab71 ! fil+ ( a claim ) ! ,corporation z receiv] %all n prejudice any "r ( ! claimant to cont9ue any action :i* 0 fil$ be=e ! appo9tm5t ( ! ,corporation z receiv]4 7#f7 ,provision = ag5cy review or judicial det]m9ation ( claims 7,a7 ,9 g5]al ,be=e ! end ( ! #fj-;day p]iod beg9n+ on ! e>li] (-- 7i7 ! end ( ! p]iod describ$ 9 p>agraph 7#e77;,a77i7 ) respect to any claim aga9/ a paym5t /ableco9 issu] = :i* ! ,corporation is receiv]2 or 7ii7 ! date ( any notice ( disall[ance ( su* claim pursuant to p>agraph 7#e77;,a77i71 ! claimant may reque/ adm9i/rative review ( ! claim 9 accordance ) subp>agraph 7,a7 or 7,b7 ( p>agraph 7#g7 or file suit on su* claim 7or cont9ue an action comm5c$ be=e ! appo9tm5t ( ! ,corporation z receiv] 9 ! di/rict or t]ritorial c\rt ( ! ,unit$ ,/ates = ! di/rict )9 :i* ! paym5t /ableco9 issu]'s pr9cipal place ( bus9ess is locat$ or ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,columbia 7& su* c\rt %all h jurisdiction to he> su* claim74 7,b7 ,/atute ( limitations ,if any claimant fails to-- 7i7 reque/ adm9i/rative review ( any claim 9 accordance ) subp>agraph 7,a7 or 7,b7 ( p>agraph 7#g72 or 7ii7 file suit on su* claim 7or cont9ue an action comm5c$ be=e ! appo9tm5t ( ! ,corporation z receiv]71 be=e ! end ( ! #fj-;day p]iod describ$ 9 subp>agraph 7,a71 ! claim %all be deem$ to be disall[$ 7o!r ?an any portion ( su* claim :i* 0 all[$ by ! receiv]7 z ( ! end ( su* p]iod1 su* disall[ance %all be f9al1 & ! claimant %all h no fur!r rights or rem$ies ) respect to su* claim4 7#g7 ,review ( claims 7,a7 ,adm9i/rative he>+ ,if any claimant reque/s review "u ?is subp>agraph 9 lieu ( fil+ or cont9u+ any action "u p>agraph 7#f7 & ! ,corporation agrees to su* reque/1 ! ,corporation %all consid] ! claim aft] opportunity = a he>+ on ! record4 ,! f9al det]m9ation ( ! ,corporation ) respect to su* claim %all be subject to judicial review "u *apt] #g ( title #e1 ,unit$ ,/ates ,code4 7,b7 ,o!r review proc$ures 7i7 ,9 g5]al ,! ,corporation %all also e/abli% su* alt]native dispute resolution processes z may be appropriate = ! resolution ( claims fil$ "u p>agraph 7#e77;,a77i74 7ii7 ,crit]ia ,9 e/abli%+ alt]native dispute resolution processes "u clause 7i71 ! ,corporation %all /rive = proc$ures :i* are exp$iti\s1 fair1 indep5d5t1 & l[ co/4 7iii7 ,volunt>y b9d+ or nonb9d+ proc$ures ,! ,corporation may e/abli% bo? b9d+ & nonb9d+ processes1 :i* may be conduct$ by any gov]nm5t or private p>ty1 b all p>ties1 includ+ ! claimant & ! ,corporation1 %all agree to ! use ( ! process e/abli%$ "u clause 7i7 9 a p>ticul> case4 7iv7 ,consid]ation ( inc5tives ,! ,corporation %all seek to develop inc5tives = claimants to p>ticipate 9 ! alt]native dispute resolution process e/abli%$ "u clause 7i74 7#h7 ,exp$it$ det]m9ation ( claims 7,a7 ,e/abli%m5t requir$ ,! ,corporation %all e/abli% a proc$ure = exp$it$ relief outside ( ! r\t9e claims process e/abli%$ "u p>agraph 7#e7 = claimants :o-- 7i7 allege ! exi/5ce ( legally valid & en=ceable or p]fect$ security int]e/s 9 assets ( a paym5t /ableco9 issu] = :i* ! ,corporation has be5 appo9t$ receiv]2 & 7ii7 allege t irrep>able injury w occur if ! r\t9e claims proc$ure is foll[$4 7,b7 ,det]m9ation p]iod ,be=e ! end ( ! #ij-;day p]iod beg9n+ on ! date any claim is fil$ 9 accordance ) ! proc$ures e/abli%$ pursuant to subp>agraph 7,a71 ! ,corporation %all-- 7i7 det]m9e-- 7,i7 :e!r to all[ or disall[ su* claim2 or 7,,ii7 :e!r su* claim %\ld be det]m9$ pursuant to ! proc$ures e/abli%$ pursuant to p>agraph 7#e72 & 7ii7 notify ! claimant ( ! det]m9ation1 & if ! claim is disall[$1 provide a /atem5t ( ea* reason = ! disall[ance & ! proc$ure = obta9+ ag5cy review or judicial det]m9ation4 7,c7 ,p]iod = fil+ or r5ew+ suit ,any claimant :o files a reque/ = exp$it$ relief %all be p]mitt$ to file a suit1 or to cont9ue a suit fil$ be=e ! appo9tm5t ( ! receiv]1 seek+ a det]m9ation ( ! claimant's rights ) respect to su* security int]e/ aft] ! e>li] (-- 7i7 ! end ( ! #ij-;day p]iod beg9n+ on ! date ( ! fil+ ( a reque/ = exp$it$ relief2 or 7ii7 ! date ! ,corporation d5ies ! claim4 7,d7 ,/atute ( limitations ,if an action describ$ 9 subp>agraph 7,c7 is n fil$1 or ! motion to r5ew a previ\sly fil$ suit is n made1 be=e ! end ( ! #cj-;day p]iod beg9n+ on ! date on :i* su* action or motion may be fil$ 9 accordance ) subp>agraph 7,b71 ! claim %all be deem$ to be disall[$ z ( ! end ( su* p]iod 7o!r ?an any portion ( su* claim :i* 0 all[$ by ! receiv]71 su* disall[ance %all be f9al1 & ! claimant %all h no fur!r rights or rem$ies ) respect to su* claim4 7,e7 ,legal effect ( fil+ 7i7 ,/atute ( limitations toll$ ,= purposes ( any applicable /atute ( limitations1 ! fil+ ( a claim ) ! ,corporation z receiv] %all con/itute a comm5cem5t ( an action4 7ii7 ,no prejudice to o!r actions ,subject to p>agraph 7#ab71 ! fil+ ( a claim ) ! receiv] %all n prejudice any "r ( ! claimant to cont9ue any action :i* 0 fil$ be=e ! appo9tm5t ( ! ,corporation z receiv]4 7#i7 ,agreem5t z basis ( claim ,any agreem5t :i* does n meet ! requirem5ts set =? 9 section #ac7;e7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e771 %all n =m ! basis (1 or sub/antially comprise1 a claim aga9/ ! ,corporation z receiv]4 7#aj7 ,paym5t ( claims 7,a7 ,9 g5]al ,! ,corporation z receiv] may1 9 ! discretion ( ! ,corporation & to ! ext5t funds are available1 pay cr$itor claims approv$ pursuant to a f9al det]m9ation pursuant to p>agraph 7#g7 or 7#h71 or det]m9$ by ! f9al judgm5t ( any c\rt ( compet5t jurisdiction 9 su* mann] & am\nts z are au?oriz$ "u ?is section4 7,b7 ,paym5t ( divid5ds on claims ,! ,corporation1 z receiv]1 may1 9 ! sole discretion ( ! ,corporation1 pay divid5ds on prov$ claims at any "t1 & no liability %all atta* to ! ,corporation 79 su* ,corporation's corporate capacity or z receiv]71 by reason ( any su* paym5t1 = failure to pay divid5ds to a claimant ^: claim is n prov$ at ! "t ( any su* paym5t4 7,c7 ,rulemak+ au?ority ( ,corporation ,! ,corporation may prescribe su* rules1 includ+ def9itions ( t]ms1 z x deems appropriate to e/abli% a s+le uni=m int]e/ rate = or to make paym5ts ( po/ insolv5cy int]e/ to cr$itors hold+ prov5 claims aga9/ ! receiv]%ip e/ates ( paym5t /ableco9 issu]s foll[+ satisfaction by ! ,corporation z receiv] ( ! pr9cipal am\nt ( all cr$itor claims4 7#aa7 ,cu/om] pref]5ce 7,a7 ,9 g5]al ,subject to section #e7;e77#b77;,c7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahae7;e77#b77;,c771 am\nts realiz$ f ! liquidation or o!r resolution ( a paym5t /ableco9 issu] by ! ,corporation z receiv] %all be di/ribut$ to pay claims 7o!r ?an secur$ claims to ! ext5t ( any su* security7 9 ! foll[+ ord] ( priority3 7i7 ,adm9i/rative exp5ses ( ! ,corporation z receiv]4 7ii7 ,out/&+ paym5t /ableco9 liabilities4 7iii7 ,any o!r g5]al or s5ior liability ( ! issu] 7:i* is n a liability describ$ 9 clause 7iv7 or 7v774 7iv7 ,any obligation subord9at$ to paym5t /ableco9 liabilities or g5]al cr$itors 7:i* is n an obligation describ$ 9 clause 7v774 7v7 ,any obligation to %>ehold]s or memb]s aris+ z a result ( _! /atus z %>ehold]s or memb]s 7includ+ any hold+ company or any %>ehold] or cr$itor ( su* company74 7,b7 ,rehypo!cation ( paym5t /ableco9 res]ves ,a p]son :o violates section #d %all n be consid]$ to h a secur$ claim "u subp>agraph 7,a7 or ,/ate law4 7,c7 ,effect on ,/ate law 7i7 ,9 g5]al ,! provisions ( subp>agraph 7,a7 %all n sup]s$e ! law ( any ,/ate except to ! ext5t su* law is inconsi/5t ) ! provisions ( su* subp>agraph1 & !n only to ! ext5t ( ! inconsi/5cy4 7ii7 ,proc$ure = det]m9ation ( inconsi/5cy ,^u ! ,corporation's own motion or ^u ! reque/ ( any p]son ) a claim describ$ 9 subp>agraph 7,a7 or any ,/ate :i* is submitt$ to ! ,corporation 9 accordance ) proc$ures :i* ! ,corporation %all prescribe1 ! ,corporation %all det]m9e :e!r any provision ( ! law ( any ,/ate is inconsi/5t ) any provision ( subp>agraph 7,a7 & ! ext5t ( any su* inconsi/5cy4 7iii7 ,judicial review ,! f9al det]m9ation ( ! ,corporation "u clause 7ii7 %all be subject to judicial review "u *apt] #g ( title #e1 ,unit$ ,/ates ,code4 7,d7 ,acc\nt+ report ,any di/ribution by ! ,corporation 9 connection ) any claim describ$ 9 subp>agraph 7,a77v7 %all be accompani$ by ! acc\nt+ report requir$ "u p>agraph 7#ae77;,b74 7#ab7 ,susp5sion ( legal actions 7,a7 ,9 g5]al4 ,aft] ! appo9tm5t ( ! ,corporation z cons]vator or receiv] = a paym5t /ableco9 issu]1 ! ,corporation may reque/ a /ay = a p]iod n to exce$-- 7i7 #de days1 9 ! case ( ! ,corporation z cons]vator2 & 7ii7 #ij days1 9 ! case ( ! ,corporation z receiv]1 9 any judicial action or proce$+ to :i* ! issu] is or becomes a p>ty4 7,b7 ,grant ( /ay by all c\rts requir$ ,^u receipt ( a reque/ by ! ,corporation z cons]vator or receiv] pursuant to subp>agraph 7,a7 = a /ay ( any judicial action or proce$+ 9 any c\rt ) jurisdiction ( su* action or proce$+1 ! c\rt %all grant su* /ay z to all p>ties4 7#ac7 ,additional rights & duties 7,a7 ,prior f9al adjudication ,! ,corporation %all abide by any f9al unappealable judgm5t ( any c\rt ( compet5t jurisdiction :i* 0 r5d]$ be=e ! appo9tm5t ( ! ,corporation z cons]vator or receiv]4 7,b7 ,rights & rem$ies ( cons]vator or receiv] ,9 ! ev5t ( any appealable judgm5t1 ! ,corporation z cons]vator or receiv] %all-- 7i7 h all ! rights & rem$ies available to ! paym5t /ableco9 issu] 7be=e ! appo9tm5t ( su* cons]vator or receiv]7 & ! ,corporation 9 its corporate capacity1 includ+ removal to ,f$]al c\rt & all appellate rights2 & 7ii7 n be requir$ to po/ any bond 9 ord] to pursue su* rem$ies4 7,c7 ,no atta*m5t or execution ,no atta*m5t or execution may issue by any c\rt ^u assets 9 ! possession ( ! ,corporation z receiv]4 7,d7 ,limitation on judicial review ,except z o!rwise provid$ 9 ?is subsection1 no c\rt %all h jurisdiction ov]-- 7i7 any claim or action = paym5t f1 or any action seek+ a det]m9ation ( rights ) respect to1 ! assets ( a paym5t /ableco9 issu] = :i* ! ,corporation has be5 appo9t$ receiv]1 includ+ assets :i* ! ,corporation may acquire f itself z su* receiv]2 or 7ii7 any claim relat+ to any act or omission ( su* issu] or ! ,corporation z receiv]4 7,e7 ,disposition ( assets ,9 ex]cis+ any "r1 p[]1 privilege1 or au?ority z cons]vator or receiv] 9 connection ) any sale or disposition ( assets ( any paym5t /ableco9 issu] = :i* ! ,corporation has be5 appo9t$ cons]vator or receiv]1 ! ,corporation %all conduct its op]ations 9 a mann] :i*-- 7i7 maximizes ! net pres5t value return f ! sale or disposition ( su* assets2 7ii7 m9imizes ! am\nt ( any loss realiz$ 9 ! resolution ( cases2 7iii7 ensures adequate competition & fair & consi/5t treatm5t ( (f]ors2 & 7iv7 prohibits discrim9ation on ! basis ( race1 sex1 or e?nic gr\ps 9 ! solicitation & consid]ation ( (f]s4 7#ad7 ,/atute ( limitations = actions br\ght by cons]vator or receiv] 7,a7 ,9 g5]al ,not)/&+ any provision ( any contract1 ! applicable /atute ( limitations ) reg>d to any action br\ght by ! ,corporation z cons]vator or receiv] %all be-- 7i7 9 ! case ( any contract claim1 ! long] (-- 7,i7 ! #f-ye> p]iod beg9n+ on ! date ! claim accrues2 or 7,,ii7 ! p]iod applicable "u ,/ate law2 & 7ii7 9 ! case ( any tort claim1 ! long] (-- 7,i7 ! #c-ye> p]iod beg9n+ on ! date ! claim accrues2 or 7,,ii7 ! p]iod applicable "u ,/ate law4 7,b7 ,det]m9ation ( ! date on :i* a claim accrues ,= purposes ( subp>agraph 7,a71 ! date on :i* ! /atute ( limitations beg9s to run on any claim describ$ 9 su* subp>agraph %all be ! lat] (-- 7i7 ! date ( ! appo9tm5t ( ! ,corporation z cons]vator or receiv]2 or 7ii7 ! date on :i* ! cause ( action accrues4 7,c7 ,revival ( expir$ ,/ate causes ( action 7i7 ,9 g5]al ,9 ! case ( any tort claim describ$ 9 clause 7ii7 = :i* ! /atute ( limitations applicable "u ,/ate law ) respect to su* claim has expir$ n m ?an #e ye>s be=e ! appo9tm5t ( ! ,corporation z cons]vator or receiv]1 ! ,corporation may br+ an action z cons]vator or receiv] on su* claim )\t reg>d to ! expiration ( ! /atute ( limitations applicable "u ,/ate law4 7ii7 ,claims describ$ ,a tort claim ref]r$ to 9 clause 7i7 is a claim aris+ f fraud1 int5tional misconduct result+ 9 unju/ enri*m5t1 or int5tional misconduct result+ 9 sub/antial loss to ! in/itution4 7#ae7 ,acc\nt+ & recordkeep+ requirem5ts 7,a7 ,9 g5]al ,! ,corporation z cons]vator or receiv] %all1 consi/5t ) ! acc\nt+ & report+ practices & proc$ures e/abli%$ by ! ,corporation1 ma9ta9 a full acc\nt+ ( ea* cons]vator%ip & receiv]%ip or o!r disposition ( issu]s 9 default4 7,b7 ,annual acc\nt+ or report ,) respect to ea* cons]vator%ip or receiv]%ip to :i* ! ,corporation 0 appo9t$1 ! ,corporation %all make an annual acc\nt+ or report1 z appropriate1 available to ! ,secret>y ( ! ,treasury1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates1 & ! au?ority t appo9t$ ! ,corporation z cons]vator or receiv]4 7,c7 ,availability ( reports ,any report prep>$ pursuant to subp>agraph 7,b7 %all be made available by ! ,corporation ^u reque/ to any %>ehold] ( ! paym5t /ableco9 issu] = :i* ! ,corporation 0 appo9t$ cons]vator or receiv] or any o!r memb] ( ! public4 7,d7 ,recordkeep+ requirem5t 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 aft] ! end ( ! #f-ye> p]iod beg9n+ on ! date ! ,corporation is appo9t$ z receiv] ( a paym5t /ableco9 issu]1 ! ,corporation may de/roy any records ( su* in/itution :i* ! ,corporation1 9 ! ,corporation's discretion1 det]m9es to be unnecess>y unless direct$ n to d s by a c\rt ( compet5t jurisdiction or gov]nm5tal ag5cy1 or o!rwise prohibit$ by law4 7ii7 ,old records ,not)/&+ clause 7i71 ! ,corporation may de/roy records ( a paym5t /ableco9 issu] :i* are at lea/ #aj ye>s old z ( ! date on :i* ! ,corporation is appo9t$ z ! receiv] ( su* paym5t /ableco9 issu] 9 accordance ) clause 7i7 at any "t aft] su* appo9tm5t is f9al1 )\t reg>d to ! #f-ye> p]iod ( limitation conta9$ 9 clause 7i74 7#af7 ,fraudul5t transf]s 7,a7 ,9 g5]al ,! ,corporation1 z cons]vator or receiv] = a paym5t /ableco9 issu]1 may avoid a transf] ( any int]e/ ( an in/itution-affiliat$ p>ty1 or any p]son :o ! ,corporation det]m9es is a debtor ( ! issu]1 9 prop]ty1 or any obligation incurr$ by su* p>ty or p]son1 t 0 made )9 #e ye>s ( ! date on :i* ! ,corporation 0 appo9t$ cons]vator or receiv] if su* p>ty or p]son volunt>ily or involunt>ily made su* transf] or incurr$ su* liability ) ! int5t to h9d]1 delay1 or defraud ! paym5t /ableco9 issu]1 ! ,corporation1 ,bo>d1 ,comptroll]1 or a ,/ate bank sup]visor4 7,b7 ,"r ( recov]y ,to ! ext5t a transf] is avoid$ "u subp>agraph 7,a71 ! ,corporation may recov]1 = ! b5efit ( ! paym5t /ableco9 issu]1 ! prop]ty transf]r$1 or1 if a c\rt s ord]s1 ! value ( su* prop]ty 7at ! "t ( su* transf]7 f-- 7i7 ! initial transf]ee ( su* transf] or ! in/itution-affiliat$ p>ty or p]son = ^: b5efit su* transf] 0 made2 or 7ii7 any imm$iate or m$iate transf]ee ( any su* initial transf]ee4 7,c7 ,rights ( transf]ee or obligee ,! ,corporation may n recov] "u subp>agraph 7,b7 f-- 7i7 any transf]ee t takes = value1 includ+ satisfaction or secur+ ( a pres5t or antec$5t debt1 9 good fai?2 or 7ii7 any imm$iate or m$iate good fai? transf]ee ( su* transf]ee4 7,d7 ,rights 9 bankruptcy ,! rights "u ?is p>agraph ( ! ,corporation %all be sup]ior to any rights ( a tru/ee or any o!r p>ty 7o!r ?an any p>ty :i* is a ,f$]al ag5cy7 "u title #aa1 ,unit$ ,/ates ,code4 7#ag7 ,atta*m5t ( assets & o!r injunctive relief ,subject to p>agraph 7#ah71 any c\rt ( compet5t jurisdiction may1 at ! reque/ ( ! ,corporation 79 ! ,corporation's capacity z cons]vator or receiv] = any paym5t /ableco9 issu] or 9 ! ,corporation's corporate capacity ) respect to any asset acquir$ or liability assum$ by ! ,corporation71 issue an ord] 9 accordance ) ,rule #fe ( ! ,f$]al ,rules ( ,civil ,proc$ure1 includ+ an ord] plac+ ! assets ( any p]son designat$ by ! ,corporation "u ! control ( ! c\rt & appo9t+ a tru/ee to hold su* assets4 7#ah7 ,/&>ds 7,a7 ,%[+ ,rule #fe ( ! ,f$]al ,rules ( ,civil ,proc$ure %all apply ) respect to any proce$+ "u p>agraph 7#ag7 )\t reg>d to ! requirem5t ( su* rule t ! applicant %[ t ! injury1 loss1 or damage is irrep>able & imm$iate4 7,b7 ,/ate proce$+ ,if1 9 ! case ( any proce$+ 9 a ,/ate c\rt1 ! c\rt det]m9es t rules ( civil proc$ure available "u ! laws ( su* ,/ate provide sub/antially simil> protections to su* p>ty's "r to due process z ,rule #fe 7z modifi$ ) respect to su* proce$+ by subp>agraph 7,a771 ! relief s\ght by ! ,corporation pursuant to p>agraph 7#ag7 may be reque/$ "u ! laws ( su* ,/ate4 7#ai7 ,treatm5t ( claims aris+ f brea* ( contracts execut$ by ! receiv] or cons]vator 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is subsection1 any f9al & unappealable judgm5t = monet>y damages ent]$ aga9/ ! ,corporation z receiv] or cons]vator = a paym5t /ableco9 issu] = ! brea* ( an agreem5t execut$ or approv$ by ! ,corporation aft] ! date ( its appo9tm5t %all be paid z an adm9i/rative exp5se ( ! receiv] or cons]vator4 7,b7 ,rule ( con/ruction ,no?+ 9 ?is p>agraph %all be con/ru$ to limit ! p[] ( ! ,corporation z receiv] or cons]vator to ex]cise any rights "u contract or law1 includ+ to t]m9ate1 brea*1 cancel1 or o!rwise discont9ue su* agreem5t4 7f7 ,provisions relat+ to contracts ent]$ into be=e appo9tm5t ( cons]vator or receiv] 7#a7 ,au?ority to repudiate contracts ,9 addition to any o!r rights ! ,corporation z cons]vator or receiv] may h1 ! ,corporation may disaffirm or repudiate any contract or lease-- 7,a7 to :i* ! issu] is a p>ty2 7,b7 ! p]=mance ( :i* ! ,corporation1 9 ! discretion ( ! ,corporation1 det]m9es to be burd5some2 & 7,c7 ! disaffirmance or repudiation ( :i* ! ,corporation det]m9es1 9 ! discretion ( ! ,corporation1 w promote ! ord]ly adm9i/ration ( ! affairs ( ! issu]4 7#b7 ,tim+ ( repudiation ,! ,corporation z cons]vator or receiv] appo9t$ = any paym5t /ableco9 issu] 9 accordance ) subsection 7d71 %all det]m9e :e!r or n to ex]cise ! rights ( repudiation "u ?is subsection )9 a reasonable p]iod foll[+ su* appo9tm5t4 7#c7 ,claims = damages = repudiation 7,a7 ,9 g5]al ,except z o!rwise provid$ 9 subp>agraph 7,c7 & p>agraphs 7#d71 7#e71 & 7#f71 ! liability ( ! ,corporation z cons]vator or receiv] = ! disaffirmance or repudiation ( any contract pursuant to p>agraph 7#a7 %all be-- 7i7 limit$ to actual direct comp5satory damages2 & 7ii7 det]m9$ z (-- 7,i7 ! date ( ! appo9tm5t ( ! ,corporation z cons]vator or receiv]2 or 7,,ii7 9 ! case ( any contract or agreem5t ref]r$ to 9 p>agraph 7#h71 ! date ( ! disaffirmance or repudiation ( su* contract or agreem5t4 7,b7 ,no liability = o!r damages ,= purposes ( subp>agraph 7,a71 ! t]m actual direct comp5satory damages does n include-- 7i7 punitive or exempl>y damages2 7ii7 damages = lo/ pr(its or opportunity2 or 7iii7 damages = pa9 & suff]+4 7,c7 ,measure ( damages = repudiation ( f9ancial contracts ,9 ! case ( any qualifi$ f9ancial contract or agreem5t to :i* p>agraph 7#h7 applies1 comp5satory damages %all be-- 7i7 deem$ to include normal & reasonable co/s ( cov] or o!r reasonable measures ( damages utiliz$ 9 ! indu/ries = su* contract & agreem5t claims2 & 7ii7 paid 9 accordance ) ?is subsection & subsection 7g7 except z o!rwise specifically provid$ 9 ?is section4 7#d7 ,leases "u :i* ! issu] is ! lessee 7,a7 ,9 g5]al ,if ! ,corporation z cons]vator or receiv] disaffirms or repudiates a lease "u :i* ! paym5t /ableco9 issu] 0 ! lessee1 ! cons]vator or receiv] %all n be liable = any damages 7o!r ?an damages det]m9$ pursuant to subp>agraph 7,b77 = ! disaffirmance or repudiation ( su* lease4 7,b7 ,paym5ts ( r5t ,not)/&+ subp>agraph 7,a71 ! lessor "u a lease to :i* su* subp>agraph applies %all-- 7i7 unless ! lessor is 9 default or brea* ( ! t]ms ( ! lease1 be entitl$ to ! contractual r5t accru+ be=e ! lat] ( ! date-- 7,i7 ! notice ( disaffirmance or repudiation is mail$2 or 7,,ii7 ! disaffirmance or repudiation becomes effective2 7ii7 h no claim = damages "u any accel]ation clause or o!r p5alty provision 9 ! lease2 & 7iii7 h a claim = any unpaid r5t1 subject to all appropriate (fsets & def5ses1 due z ( ! date ( ! appo9tm5t :i* %all be paid 9 accordance ) ?is subsection & subsection 7g74 7#e7 ,leases "u :i* ! issu] is ! lessor 7,a7 ,9 g5]al ,if ! ,corporation z cons]vator or receiv] repudiates an unexpir$ writt5 lease ( real prop]ty ( ! paym5t /ableco9 issu] "u :i* ! issu] is ! lessor & ! lessee is n1 z ( ! date ( su* repudiation1 9 default1 ! lessee "u su* lease may ei!r-- 7i7 treat ! lease z t]m9at$ by su* repudiation2 or 7ii7 rema9 9 possession ( ! leasehold int]e/ = ! balance ( ! t]m ( ! lease unless ! lessee defaults "u ! t]ms ( ! lease aft] ! date ( su* repudiation4 7,b7 ,provisions applicable to lessee rema9+ 9 possession ,if any lessee "u a lease describ$ 9 subp>agraph 7,a7 rema9s 9 possession ( a leasehold int]e/ pursuant to clause 7ii7 ( su* subp>agraph-- 7i7 ! lessee-- 7,i7 %all cont9ue to pay ! contractual r5t pursuant to ! t]ms ( ! lease aft] ! date ( ! repudiation ( su* lease2 & 7,,ii7 may (fset aga9/ any r5t paym5t :i* accrues aft] ! date ( ! repudiation ( ! lease1 any damages :i* accrue aft] su* date due to ! nonp]=mance ( any obligation ( ! paym5t /ableco9 issu] "u ! lease aft] su* date2 & 7ii7 ! ,corporation z cons]vator or receiv] %all n be liable to ! lessee = any damages aris+ aft] su* date z a result ( ! repudiation o!r ?an ! am\nt ( any (fset all[$ "u clause 7i77,,ii74 7#f7 ,contracts = ! sale ( real prop]ty 7,a7 ,9 g5]al ,if ! ,corporation z cons]vator or receiv] repudiates any contract 7:i* meets ! requirem5ts ( ea* p>agraph ( section #ac7;e7( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e77 = ! sale ( real prop]ty & ! pur*as] ( su* real prop]ty "u su* contract is 9 possession & is n1 z ( ! date ( su* repudiation1 9 default1 su* pur*as] may ei!r-- 7i7 treat ! contract z t]m9at$ by su* repudiation2 or 7ii7 rema9 9 possession ( su* real prop]ty4 7,b7 ,provisions applicable to pur*as] rema9+ 9 possession ,if any pur*as] ( real prop]ty "u any contract describ$ 9 subp>agraph 7,a7 rema9s 9 possession ( su* prop]ty pursuant to clause 7ii7 ( su* subp>agraph-- 7i7 ! pur*as]-- 7,i7 %all cont9ue to make all paym5ts due "u ! contract aft] ! date ( ! repudiation ( ! contract2 & 7,,ii7 may (fset aga9/ any su* paym5ts any damages :i* accrue aft] su* date due to ! nonp]=mance 7aft] su* date7 ( any obligation ( ! paym5t /ableco9 issu] "u ! contract2 & 7ii7 ! ,corporation z cons]vator or receiv] %all-- 7,i7 n be liable to ! pur*as] = any damages aris+ aft] su* date z a result ( ! repudiation o!r ?an ! am\nt ( any (fset all[$ "u clause 7i77,,ii72 7,,ii7 deliv] title to ! pur*as] 9 accordance ) ! provisions ( ! contract2 & 7,,iii7 h no obligation "u ! contract o!r ?an ! p]=mance requir$ "u subclause 7,,ii74 7,c7 ,assignm5t & sale all[$ 7i7 ,9 g5]al ,no provision ( ?is p>agraph %all be con/ru$ z limit+ ! "r ( ! ,corporation z cons]vator or receiv] to assign ! contract describ$ 9 subp>agraph 7,a7 & sell ! prop]ty subject to ! contract & ! provisions ( ?is p>agraph4 7ii7 ,no liability aft] assignm5t & sale ,if an assignm5t & sale describ$ 9 clause 7i7 is consummat$1 ! ,corporation z cons]vator or receiv] %all h no fur!r liability "u ! contract describ$ 9 subp>agraph 7,a7 or ) respect to ! real prop]ty :i* 0 ! subject ( su* contract4 7#g7 ,provisions applicable to s]vice contracts 7,a7 ,s]vices p]=m$ be=e appo9tm5t ,9 ! case ( any contract = s]vices betwe5 any p]son & any paym5t /ableco9 issu] = :i* ! ,corporation has be5 appo9t$ cons]vator or receiv]1 any claim ( su* p]son = s]vices p]=m$ be=e ! appo9tm5t ( ! ,corporation %all be-- 7i7 a claim to be paid 9 accordance ) subsections 7e7 & 7g72 & 7ii7 deem$ to h aris5 z ( ! date ! ,corporation 0 appo9t$ cons]vator or receiv]4 7,b7 ,s]vices p]=m$ aft] appo9tm5t & prior to repudiation ,if1 9 ! case ( any contract = s]vices describ$ 9 subp>agraph 7,a71 ! cons]vator or receiv] accepts p]=mance by ! o!r p]son be=e ! ,corporation z cons]vator or receiv] makes any det]m9ation to ex]cise ! "r ( repudiation ( su* contract "u ?is section-- 7i7 ! o!r p>ty %all be paid "u ! t]ms ( ! contract = ! s]vices p]=m$2 & 7ii7 ! am\nt ( su* paym5t %all be treat$ z an adm9i/rative exp5se ( ! cons]vator%ip or receiv]%ip4 7,c7 ,acceptance ( p]=mance no b> to subsequ5t repudiation ,! acceptance by ! ,corporation z cons]vator or receiv] ( s]vices ref]r$ to 9 subp>agraph 7,b7 9 connection ) a contract describ$ 9 su* subp>agraph %all n affect ! "r ( ! ,corporation z cons]vator or receiv] to repudiate su* contract "u ?is section at any "t aft] su* p]=mance4 7#h7 ,c]ta9 qualifi$ f9ancial contracts 7,a7 ,rights ( p>ties to contracts ,subject to p>agraphs 7#i7 & 7#aj7 ( ?is subsection & not)/&+ any o!r provision ( ,f$]al or ,/ate law 7o!r ?an subsection 7e77#i7 ( ?is section & section #ac7;e7( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e771 no p]son %all be /ay$ or prohibit$ f ex]cis+-- 7i7 any "r su* p]son has to cause ! t]m9ation1 liquidation1 or accel]ation ( any qualifi$ f9ancial contract ) a paym5t /ableco9 issu] :i* arises ^u ! appo9tm5t ( ! ,corporation z receiv] = su* issu] at any "t aft] su* appo9tm5t2 7ii7 any "r "u any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to "o or m qualifi$ f9ancial contracts describ$ 9 clause 7i72 or 7iii7 any "r to (fset or net out any t]m9ation value1 paym5t am\nt1 or o!r transf] obligation aris+ "u or 9 connection ) #a or m contracts & agreem5ts describ$ 9 clause 7i71 includ+ any ma/] agreem5t = su* contracts or agreem5ts4 7,b7 ,applicability ( o!r provisions ,subsection 7e77#ab7 %all apply 9 ! case ( any judicial action or proce$+ br\ght aga9/ ! ,corporation z receiv] ref]r$ to 9 subp>agraph 7,a71 or ! paym5t /ableco9 issu] = :i* ! ,corporation 0 appo9t$ receiv]1 by any p>ty to a contract or agreem5t describ$ 9 subp>agraph 7,a77i7 ) su* in/itution4 7,c7 ,c]ta9 transf]s n avoidable 7i7 ,9 g5]al ,not)/&+ p>agraph 7#aa71 section #ebdb ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates 7#ab ,u4,s4,c4 #ia71 or any o!r ,f$]al or ,/ate law relat+ to ! avoidance ( pref]5tial or fraudul5t transf]s1 ! ,corporation1 :e!r act+ z su* or z cons]vator or receiv] ( a paym5t /ableco9 issu]1 may n avoid any transf] ( money or o!r prop]ty 9 connection ) any qualifi$ f9ancial contract ) a paym5t /ableco9 issu]4 7ii7 ,exception = c]ta9 transf]s ,clause 7i7 %all n apply to any transf] ( money or o!r prop]ty 9 connection ) any qualifi$ f9ancial contract ) a paym5t /ableco9 issu] if ! ,corporation det]m9es t ! transf]ee _h actual int5t to h9d]1 delay1 or defraud su* in/itution1 ! cr$itors ( su* in/itution1 or any cons]vator or receiv] appo9t$ = su* in/itution4 7,d7 ,c]ta9 contracts & agreem5ts def9$ ,= purposes ( ?is subsection1 ! foll[+ def9itions %all apply3 7i7 ,qualifi$ f9ancial contract ,! t]m qualifi$ f9ancial contract means any securities contract1 commodity contract1 =w>d contract1 repur*ase agreem5t1 swap agreem5t1 & any simil> agreem5t t ! ,corporation det]m9es by regulation1 resolution or ord] to be a qualifi$ f9ancial contract = purposes ( ?is p>agraph4 7ii7 ,securities contract ,! t]m securities contract-- 7,i7 means a contract = ! pur*ase1 sale1 or loan ( a security1 a c]tificate ( deposit1 a mortgage loan1 any int]e/ 9 a mortgage loan1 a gr\p or index ( securities1 c]tificates ( deposit1 or mortgage loans or int]e/s !re9 7includ+ any int]e/ !re9 or bas$ on ! value !re(7 or any option on any ( ! =ego+1 includ+ any option to pur*ase or sell any su* security1 c]tificate ( deposit1 mortgage loan1 int]e/1 gr\p or index1 or option1 & includ+ any repur*ase or rev]se repur*ase transaction on any su* security1 c]tificate ( deposit1 mortgage loan1 int]e/1 gr\p or index1 or option 7:e!r or n su* repur*ase or rev]se repur*ase transaction is a repur*ase agreem5t72 7,,ii7 does n include any pur*ase1 sale1 or repur*ase obligation "u a p>ticipation 9 a comm]cial mortgage loan unless ! ,corporation det]m9es by regulation1 resolution1 or ord] to include any su* agreem5t )9 ! mean+ ( su* t]m2 7,,iii7 means any option ent]$ into on a national securities ex*ange relat+ to =eign curr5cies2 7,,iv7 means ! gu>antee 7includ+ by novation7 by or to any securities cle>+ ag5cy ( any settlem5t ( ca%1 securities1 c]tificates ( deposit1 mortgage loans or int]e/s !re91 gr\p or index ( securities1 c]tificates ( deposit1 or mortgage loans or int]e/s !re9 7includ+ any int]e/ !re9 or bas$ on ! value !re(7 or option on any ( ! =ego+1 includ+ any option to pur*ase or sell any su* security1 c]tificate ( deposit1 mortgage loan1 int]e/1 gr\p or index1 or option 7:e!r or n su* settlem5t is 9 connection ) any agreem5t or transaction ref]r$ to 9 subclauses 7,i7 ?r\gh 7,,xii7 7o!r ?an subclause 7,,ii772 7,v7 means any m>g9 loan2 7,,vi7 means any ext5sion ( cr$it = ! cle>ance or settlem5t ( securities transactions2 7,,vii7 means any loan transaction c\pl$ ) a securities coll> transaction1 any prepaid securities =w>d transaction1 or any total return swap transaction c\pl$ ) a securities sale transaction2 7,,viii7 means any o!r agreem5t or transaction t is simil> to any agreem5t or transaction ref]r$ to 9 ?is clause2 7,,ix7 means any comb9ation ( ! agreem5ts or transactions ref]r$ to 9 ?is clause2 7,x7 means any option to ent] into any agreem5t or transaction ref]r$ to 9 ?is clause2 7,,xi7 means a ma/] agreem5t t provides = an agreem5t or transaction ref]r$ to 9 subclause 7,i71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 7,,viii71 7,,ix71 or 7,x71 toge!r ) all supplem5ts to any su* ma/] agreem5t1 )\t reg>d to :e!r ! ma/] agreem5t provides = an agreem5t or transaction t is n a securities contract "u ?is clause1 except t ! ma/] agreem5t %all be consid]$ to be a securities contract "u ?is clause only ) respect to ea* agreem5t or transaction "u ! ma/] agreem5t t is ref]r$ to 9 subclause 7,i71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 7,,viii71 7,,ix71 or 7,x72 & 7,,xii7 means any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to any agreem5t or transaction ref]r$ to 9 ?is clause1 includ+ any gu>antee or reimbursem5t obligation 9 connection ) any agreem5t or transaction ref]r$ to 9 ?is clause4 7iii7 ,commodity contract ,! t]m commodity contract means-- 7,i7 ) respect to a futures commission m]*ant1 a contract = ! pur*ase or sale ( a commodity = future deliv]y on1 or subject to ! rules (1 a contract m>ket or bo>d ( trade2 7,,ii7 ) respect to a =eign futures commission m]*ant1 a =eign future2 7,,iii7 ) respect to a lev]age transaction m]*ant1 a lev]age transaction2 7,,iv7 ) respect to a cle>+ organization1 a contract = ! pur*ase or sale ( a commodity = future deliv]y on1 or subject to ! rules (1 a contract m>ket or bo>d ( trade t is cle>$ by su* cle>+ organization1 or commodity option trad$ on1 or subject to ! rules (1 a contract m>ket or bo>d ( trade t is cle>$ by su* cle>+ organization2 7,v7 ) respect to a commodity options deal]1 a commodity option2 7,,vi7 any o!r agreem5t or transaction t is simil> to any agreem5t or transaction ref]r$ to 9 ?is clause2 7,,vii7 any comb9ation ( ! agreem5ts or transactions ref]r$ to 9 ?is clause2 7,,viii7 any option to ent] into any agreem5t or transaction ref]r$ to 9 ?is clause2 7,,ix7 a ma/] agreem5t t provides = an agreem5t or transaction ref]r$ to 9 subclause 7,i71 7,,ii71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 or 7,,viii71 toge!r ) all supplem5ts to any su* ma/] agreem5t1 )\t reg>d to :e!r ! ma/] agreem5t provides = an agreem5t or transaction t is n a commodity contract "u ?is clause1 except t ! ma/] agreem5t %all be consid]$ to be a commodity contract "u ?is clause only ) respect to ea* agreem5t or transaction "u ! ma/] agreem5t t is ref]r$ to 9 subclause 7,i71 7,,ii71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 or 7,,viii72 or 7,x7 any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to any agreem5t or transaction ref]r$ to 9 ?is clause1 includ+ any gu>antee or reimbursem5t obligation 9 connection ) any agreem5t or transaction ref]r$ to 9 ?is clause4 7iv7 ,=w>d contract ,! t]m =w>d contract means-- 7,i7 a contract 7o!r ?an a commodity contract7 = ! pur*ase1 sale1 or transf] ( a commodity or any simil> good1 article1 s]vice1 "r1 or int]e/ :i* is pres5tly or 9 ! future becomes ! subject ( deal+ 9 ! =w>d contract trade1 or product or byproduct !re(1 ) a maturity date m ?an #b days aft] ! date ! contract is ent]$ into1 includ+1 a repur*ase or rev]se repur*ase transaction 7:e!r or n su* repur*ase or rev]se repur*ase transaction is a repur*ase agreem5t71 consignm5t1 lease1 swap1 h$ge transaction1 deposit1 loan1 option1 allocat$ transaction1 unallocat$ transaction1 or any o!r simil> agreem5t2 7,,ii7 any comb9ation ( agreem5ts or transactions ref]r$ to 9 subclauses 7,i7 & 7,,iii72 7,,iii7 any option to ent] into any agreem5t or transaction ref]r$ to 9 subclause 7,i7 or 7,,ii72 7,,iv7 a ma/] agreem5t t provides = an agreem5t or transaction ref]r$ to 9 subclause 7,i71 7,,ii71 or 7,,iii71 toge!r ) all supplem5ts to any su* ma/] agreem5t1 )\t reg>d to :e!r ! ma/] agreem5t provides = an agreem5t or transaction t is n a =w>d contract "u ?is clause1 except t ! ma/] agreem5t %all be consid]$ to be a =w>d contract "u ?is clause only ) respect to ea* agreem5t or transaction "u ! ma/] agreem5t t is ref]r$ to 9 subclause 7,i71 7,,ii71 or 7,,iii72 or 7,v7 any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to any agreem5t or transaction ref]r$ to 9 subclause 7,i71 7,,ii71 7,,iii71 or 7,,iv71 includ+ any gu>antee or reimbursem5t obligation 9 connection ) any agreem5t or transaction ref]r$ to 9 any su* subclause4 7v7 ,repur*ase agreem5t ,! t]m repur*ase agreem5t 7:i* def9ition also applies to a rev]se repur*ase agreem5t7-- 7,i7 means an agreem5t1 includ+ relat$ t]ms1 :i* provides = ! transf] ( #a or m c]tificates ( deposit1 mortgage relat$ securities 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a771 mortgage loans1 int]e/s 9 mortgage-relat$ securities or mortgage loans1 eligible bank]s' acceptances1 qualifi$ =eign gov]nm5t securities or securities t are direct obligations (1 or t are fully gu>ante$ by1 ! ,unit$ ,/ates or any ag5cy ( ! ,unit$ ,/ates aga9/ ! transf] ( funds by ! transf]ee ( su* c]tificates ( deposit1 eligible bank]s' acceptances1 securities1 mortgage loans1 or int]e/s ) a simultane\s agreem5t by su* transf]ee to transf] to ! transf]or !re( c]tificates ( deposit1 eligible bank]s' acceptances1 securities1 mortgage loans1 or int]e/s z describ$ above1 at a date c]ta9 n lat] ?an #a ye> aft] su* transf]s or on dem&1 aga9/ ! transf] ( funds1 or any o!r simil> agreem5t2 7,,ii7 does n include any repur*ase obligation "u a p>ticipation 9 a comm]cial mortgage loan unless ! ,corporation det]m9es by regulation1 resolution1 or ord] to include any su* p>ticipation )9 ! mean+ ( su* t]m2 7,,iii7 means any comb9ation ( agreem5ts or transactions ref]r$ to 9 subclauses 7,i7 & 7,,iv72 7,,iv7 means any option to ent] into any agreem5t or transaction ref]r$ to 9 subclause 7,i7 or 7,,iii72 7,v7 means a ma/] agreem5t t provides = an agreem5t or transaction ref]r$ to 9 subclause 7,i71 7,,iii71 or 7,,iv71 toge!r ) all supplem5ts to any su* ma/] agreem5t1 )\t reg>d to :e!r ! ma/] agreem5t provides = an agreem5t or transaction t is n a repur*ase agreem5t "u ?is clause1 except t ! ma/] agreem5t %all be consid]$ to be a repur*ase agreem5t "u ?is subclause only ) respect to ea* agreem5t or transaction "u ! ma/] agreem5t t is ref]r$ to 9 subclause 7,i71 7,,iii71 or 7,,iv72 & 7,,vi7 means any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to any agreem5t or transaction ref]r$ to 9 subclause 7,i71 7,,iii71 7,,iv71 or 7,v71 includ+ any gu>antee or reimbursem5t obligation 9 connection ) any agreem5t or transaction ref]r$ to 9 any su* subclause4 ,= purposes ( ?is clause1 ! t]m qualifi$ =eign gov]nm5t security means a security t is a direct obligation (1 or t is fully gu>ante$ by1 ! c5tral gov]nm5t ( a memb] ( ! ,organization = ,economic ,coop]ation & ,developm5t 7z det]m9$ by regulation or ord] adopt$ by ! ,bo>d74 7vi7 ,swap agreem5t ,! t]m swap agreem5t means-- 7,i7 any agreem5t1 includ+ ! t]ms & conditions incorporat$ by ref]5ce 9 any su* agreem5t1 :i* is an int]e/ rate swap1 option1 future1 or =w>d agreem5t1 includ+ a rate floor1 rate cap1 rate coll>1 cross-curr5cy rate swap1 & basis swap2 a spot1 same day-tomorr[1 tomorr[-next1 =w>d1 or o!r =eign ex*ange1 preci\s metals1 or o!r commodity agreem5t2 a curr5cy swap1 option1 future1 or =w>d agreem5t2 an equity index or equity swap1 option1 future1 or =w>d agreem5t2 a debt index or debt swap1 option1 future1 or =w>d agreem5t2 a total return1 cr$it spread or cr$it swap1 option1 future1 or =w>d agreem5t2 a commodity index or commodity swap1 option1 future1 or =w>d agreem5t2 wea!r swap1 option1 future1 or =w>d agreem5t2 an emissions swap1 option1 future1 or =w>d agreem5t2 or an inflation swap1 option1 future1 or =w>d agreem5t2 7,,ii7 any agreem5t or transaction t is simil> to any o!r agreem5t or transaction ref]r$ to 9 ?is clause & t is ( a type t has be51 is pres5tly1 or 9 ! future becomes1 ! subject ( recurr5t deal+s 9 ! swap or o!r d]ivatives m>kets 7includ+ t]ms & conditions incorporat$ by ref]5ce 9 su* agreem5t7 & t is a =w>d1 swap1 future1 option1 or spot transaction on "o or m rates1 curr5cies1 commodities1 equity securities or o!r equity in/rum5ts1 debt securities or o!r debt in/rum5ts1 quantitative measures associat$ ) an occurr5ce1 ext5t ( an occurr5ce1 or cont+5cy associat$ ) a f9ancial1 comm]cial1 or economic consequ5ce1 or economic or f9ancial indices or measures ( economic or f9ancial risk or value2 7,,iii7 any comb9ation ( agreem5ts or transactions ref]r$ to 9 ?is clause2 7,,iv7 any option to ent] into any agreem5t or transaction ref]r$ to 9 ?is clause2 7,v7 a ma/] agreem5t t provides = an agreem5t or transaction ref]r$ to 9 subclause 7,i71 7,,ii71 7,,iii71 or 7,,iv71 toge!r ) all supplem5ts to any su* ma/] agreem5t1 )\t reg>d to :e!r ! ma/] agreem5t conta9s an agreem5t or transaction t is n a swap agreem5t "u ?is clause1 except t ! ma/] agreem5t %all be consid]$ to be a swap agreem5t "u ?is clause only ) respect to ea* agreem5t or transaction "u ! ma/] agreem5t t is ref]r$ to 9 subclause 7,i71 7,,ii71 7,,iii71 or 7,,iv72 & 7,,vi7 any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to any agreem5ts or transactions ref]r$ to 9 subclause 7,i71 7,,ii71 7,,iii71 7,,iv71 or 7,v71 includ+ any gu>antee or reimbursem5t obligation 9 connection ) any agreem5t or transaction ref]r$ to 9 any su* subclause4 ,su* t]m is applicable = purposes ( ?is subsection only & %all n be con/ru$ or appli$ s z to *all5ge or affect ! *>act]ization1 def9ition1 or treatm5t ( any swap agreem5t "u any o!r /atute1 regulation1 or rule1 includ+ ! ,gramm-,lea*-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,/at4 #acch71 ! ,legal ,c]ta9ty = ,bank ,products ,act ( #bjjj 7#g ,u4,s4,c4 #bg et seq471 ! securities laws 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a771 & ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq474 7vii7 ,treatm5t ( ma/] agreem5t z "o agreem5t ,any ma/] agreem5t = any contract or agreem5t describ$ 9 any prec$+ clause ( ?is subp>agraph 7or any ma/] agreem5t = su* ma/] agreem5t or agreem5ts71 toge!r ) all supplem5ts to su* ma/] agreem5t1 %all be treat$ z a s+le agreem5t & a s+le qualifi$ f9ancial contract4 ,if a ma/] agreem5t conta9s provisions relat+ to agreem5ts or transactions t are n !mselves qualifi$ f9ancial contracts1 ! ma/] agreem5t %all be deem$ to be a qualifi$ f9ancial contract only ) respect to ^? transactions t are !mselves qualifi$ f9ancial contracts4 7viii7 ,transf] ,! t]m transf] means e mode1 direct or indirect1 absolute or conditional1 volunt>y or involunt>y1 ( dispos+ ( or p>t+ ) prop]ty or ) an int]e/ 9 prop]ty1 includ+ ret5tion ( title z a security int]e/ & =eclosure ( ! paym5t /ableco9 issu]'s equity ( r$emption4 7ix7 ,p]son ,! t]m p]son includes any gov]nm5tal entity 9 addition to any entity includ$ 9 ! def9ition ( su* t]m 9 section #a ( title #a1 ,unit$ ,/ates ,code4 7,e7 ,c]ta9 protections 9 ev5t ( appo9tm5t ( cons]vator ,not)/&+ any o!r provision ( ,f$]al or ,/ate law 7o!r ?an subsections 7e77#i7 & 7f77#aj7 ( ?is section1 & section #ac7;e7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e7771 no p]son %all be /ay$ or prohibit$ f ex]cis+-- 7i7 any "r su* p]son has to cause ! t]m9ation1 liquidation1 or accel]ation ( any qualifi$ f9ancial contract ) a paym5t /ableco9 issu] 9 a cons]vator%ip bas$ ^u a default "u su* f9ancial contract :i* is en=ceable "u applicable non-insolv5cy law2 7ii7 any "r "u any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to "o or m qualifi$ f9ancial contracts describ$ 9 clause 7i72 or 7iii7 any "r to (fset or net out any t]m9ation values1 paym5t am\nts1 or o!r transf] obligations aris+ "u or 9 connection ) su* qualifi$ f9ancial contracts4 7,f7 ,cl>ification ,no provision ( law %all be con/ru$ z limit+ ! "r or p[] ( ! ,corporation1 or au?oriz+ any c\rt or ag5cy to limit or delay1 9 any mann]1 ! "r or p[] ( ! ,corporation to transf] any qualifi$ f9ancial contract 9 accordance ) p>agraphs 7#i7 & 7#aj7 ( ?is subsection or to disaffirm or repudiate any su* contract 9 accordance ) p>agraph 7#a74 7,g7 ,walkaway clauses n effective 7i7 ,9 g5]al ,not)/&+ ! provisions ( subp>agraphs 7,a7 & 7,e71 & sections #djc & #djd ( ! ,f$]al ,deposit ,insurance ,corporation ,improvem5t ,act ( #aiia 7#ab ,u4,s4,c4 #ddjc1 #ddjd71 no walkaway clause %all be en=ceable 9 a qualifi$ f9ancial contract ( a paym5t /ableco9 issu] 9 default4 7ii7 ,limit$ susp5sion ( c]ta9 obligations ,9 ! case ( a qualifi$ f9ancial contract ref]r$ to 9 clause 7i71 any paym5t or deliv]y obligations o!rwise due f a p>ty pursuant to ! qualifi$ f9ancial contract %all be susp5d$ f ! "t ! ,corporation is appo9t$ z receiv] until ! e>li] (-- 7,i7 ! "t su* p>ty receives notice t su* contract has be5 transf]r$ pursuant to p>agraph 7#i77;,a72 or 7,,ii7 #e3jj p4m4 7ea/]n "t7 on ! bus9ess day foll[+ ! date ( ! appo9tm5t ( ! ,corporation z receiv]4 7iii7 ,walkaway clause def9$ ,= purposes ( ?is subp>agraph1 ! t]m walkaway clause means any provision 9 a qualifi$ f9ancial contract t susp5ds1 conditions1 or ext+ui%es a paym5t obligation ( a p>ty1 9 :ole or 9 "p1 or does n create a paym5t obligation ( a p>ty t w\ld o!rwise exi/1 solely because ( su* p>ty's /atus z a nondefault+ p>ty 9 connection ) ! insolv5cy ( a paym5t /ableco9 issu] t is a p>ty to ! contract or ! appo9tm5t ( or ! ex]cise ( rights or p[]s by ! ,corporation z cons]vator or receiv] ( su* issu]1 & n z a result ( a p>ty's ex]cise ( any "r to (fset1 set(f1 or net obligations t exi/ "u ! contract1 any o!r contract betwe5 ^? p>ties1 or applicable law4 7,h7 ,recordkeep+ requirem5ts ,! ,corporation1 9 consultation ) ! ,bo>d1 ,comptroll] & ,/ate bank sup]visors1 may prescribe regulations requir+ m detail$ recordkeep+ by a paym5t /ableco9 issu] ) respect to qualifi$ f9ancial contracts 7includ+ m>ket valuations7 if ! condition ( su* paym5t /ableco9 issu] w>rants x4 7#i7 ,transf] ( qualifi$ f9ancial contracts 7,a7 ,9 g5]al4 ,9 mak+ any transf] ( assets or liabilities ( a paym5t /ableco9 issu] 9 default :i* includes any qualifi$ f9ancial contract1 ! ,corporation z cons]vator or receiv] = su* issu] %all ei!r-- 7i7 transf] to "o f9ancial in/itution1 o!r ?an a f9ancial in/itution = :i* a cons]vator1 receiv]1 tru/ee 9 bankruptcy1 or o!r legal cu/odian has be5 appo9t$ or :i* is o!rwise ! subject ( a bankruptcy or insolv5cy proce$+-- 7,i7 all qualifi$ f9ancial contracts betwe5 any p]son or any affiliate ( su* p]son & ! paym5t /ableco9 issu] 9 default2 7,,ii7 all claims ( su* p]son or any affiliate ( su* p]son aga9/ su* issu] "u any su* contract 7o!r ?an any claim :i*1 "u ! t]ms ( any su* contract1 is subord9at$ to ! claims ( g5]al unsecur$ cr$itors ( su* issu]72 7,,iii7 all claims ( su* paym5t /ableco9 issu] aga9/ su* p]son or any affiliate ( su* p]son "u any su* contract2 & 7,,iv7 all prop]ty secur+ or any o!r cr$it enhancem5t = any contract describ$ 9 subclause 7,i7 or any claim describ$ 9 subclause 7,,ii7 or 7,,iii7 "u any su* contract2 or 7ii7 transf] none ( ! qualifi$ f9ancial contracts1 claims1 prop]ty or o!r cr$it enhancem5t ref]r$ to 9 clause 7i7 7) respect to su* p]son & any affiliate ( su* p]son74 7,b7 ,transf] to a =eign bank1 =eign f9ancial in/itution1 or bran* or ag5cy ( a =eign bank or f9ancial in/itution ,9 transf]r+ any qualifi$ f9ancial contracts & relat$ claims & prop]ty "u subp>agraph 7,a77i71 ! ,corporation z cons]vator or receiv] = ! paym5t /ableco9 issu] %all n make su* transf] to a =eign bank1 f9ancial in/itution organiz$ "u ! laws ( a =eign c\ntry1 or a bran* or ag5cy ( a =eign bank or f9ancial in/itution unless1 "u ! law applicable to su* bank1 f9ancial in/itution1 bran* or ag5cy1 to ! qualifi$ f9ancial contracts1 & to any nett+ contract1 any security agreem5t or arrangem5t or o!r cr$it enhancem5t relat$ to "o or m qualifi$ f9ancial contracts1 ! contractual rights ( ! p>ties to su* qualifi$ f9ancial contracts1 nett+ contracts1 security agreem5ts or arrangem5ts1 or o!r cr$it enhancem5ts are en=ceable sub/antially to ! same ext5t z p]mitt$ "u ?is section4 7,c7 ,transf] ( contracts subject to ! rules ( a cle>+ organization ,9 ! ev5t t ! ,corporation z cons]vator or receiv] transf]s any qualifi$ f9ancial contract & relat$ claims1 prop]ty1 & cr$it enhancem5ts pursuant to subp>agraph 7,a77i7 & su* contract is cle>$ by or subject to ! rules ( a cle>+ organization1 ! cle>+ organization %all n be requir$ to accept ! transf]ee z a memb] by virtue ( ! transf]4 7,d7 ,def9itions ,= purposes ( ?is p>agraph-- 7i7 ! t]m f9ancial in/itution means a brok] or deal]1 a depository in/itution1 a futures commission m]*ant1 or any o!r in/itution1 z det]m9$ by ! ,corporation by regulation to be a f9ancial in/itution2 & 7ii7 ! t]m cle>+ organization has ! mean+ giv5 ! t]m 9 section #djb ( ! ,f$]al ,deposit ,insurance ,corporation ,improvem5t ,act ( #aiia 7#ab ,u4,s4,c4 #ddjb74 7#aj7 ,notification ( transf] 7,a7 ,9 g5]al ,if ! ,corporation z cons]vator or receiv] = a paym5t /ableco9 issu] 9 default makes any transf] ( ! assets & liabilities ( su* in/itution1 & ! transf] includes any qualifi$ f9ancial contract1 ! cons]vator or receiv] %all notify any p]son :o is a p>ty to any su* contract ( su* transf] by #e3jj p4m4 7ea/]n "t7 on ! bus9ess day foll[+ ! date ( ! appo9tm5t ( ! ,corporation z receiv] 9 ! case ( a receiv]%ip1 or ! bus9ess day foll[+ su* transf] 9 ! case ( a cons]vator%ip4 7,b7 ,c]ta9 rights n en=ceable 7i7 ,receiv]%ip ,a p]son :o is a p>ty to a qualifi$ f9ancial contract ) a paym5t /ableco9 issu] may n ex]cise any "r t su* p]son has to t]m9ate1 liquidate1 or net su* contract "u p>agraph 7#h77;,a7 ( ?is subsection or section #djc or #djd ( ! ,f$]al ,deposit ,insurance ,corporation ,improvem5t ,act ( #aiia 7#ab ,u4,s4,c4 #ddjc1 #ddjd71 solely by reason ( or incid5tal to ! appo9tm5t ( ! ,corporation z receiv] = ! paym5t /ableco9 issu] 7or ! insolv5cy or f9ancial condition ( ! issu] = :i* ! receiv] has be5 appo9t$7-- 7,i7 until #e3jj p4m4 7ea/]n "t7 on ! bus9ess day foll[+ ! date ( ! appo9tm5t ( ! receiv]2 or 7,,ii7 aft] ! p]son has receiv$ notice t ! contract has be5 transf]r$ pursuant to p>agraph 7#i77;,a74 7ii7 ,cons]vator%ip ,a p]son :o is a p>ty to a qualifi$ f9ancial contract ) a paym5t /ableco9 issu] may n ex]cise any "r t su* p]son has to t]m9ate1 liquidate1 or net su* contract "u p>agraph 7#h77;,e7 ( ?is subsection or section #djc or #djd ( ! ,f$]al ,deposit ,insurance ,corporation ,improvem5t ,act ( #aiia 7#ab ,u4,s4,c4 #ddjc1 #ddjd71 solely by reason ( or incid5tal to ! appo9tm5t ( ! ,corporation z cons]vator = ! paym5t /ableco9 issu] 7or ! insolv5cy or f9ancial condition ( ! issu] = :i* ! ,corporation has be5 appo9t$ cons]vator74 7iii7 ,notice ,= purposes ( ?is p>agraph1 ! ,corporation z receiv] or cons]vator ( a paym5t /ableco9 issu] %all be deem$ to h notifi$ a p]son :o is a p>ty to a qualifi$ f9ancial contract ) su* issu] if ! ,corporation has tak5 /eps t are reasonably calculat$ to provide notice to su* p]son by ! "t specifi$ 9 subp>agraph 7,a74 7,c7 ,bus9ess day def9$ ,= purposes ( ?is p>agraph1 ! t]m bus9ess day means any day o!r ?an any ,saturday1 ,sunday1 or any day on :i* ei!r ! ,new ,york ,/ock ,ex*ange or ! ,f$]al ,res]ve ,bank ( ,new ,york is clos$4 7#aa7 ,disaffirmance or repudiation ( qualifi$ f9ancial contracts ,9 ex]cis+ ! rights ( disaffirmance or repudiation ( a cons]vator or receiv] ) respect to any qualifi$ f9ancial contract to :i* a paym5t /ableco9 issu] is a p>ty1 ! ,corporation z cons]vator or receiv] = su* issu] %all ei!r-- 7,a7 disaffirm or repudiate all qualifi$ f9ancial contracts betwe5-- 7i7 any p]son or any affiliate ( su* p]son2 & 7ii7 ! paym5t /ableco9 issu] 9 default2 or 7,b7 disaffirm or repudiate none ( ! qualifi$ f9ancial contracts ref]r$ to 9 subp>agraph 7,a7 7) respect to su* p]son or any affiliate ( su* p]son74 7#ab7 ,c]ta9 security int]e/s n avoidable ,no provision ( ?is subsection %all be con/ru$ z p]mitt+ ! avoidance ( any legally en=ceable or p]fect$ security int]e/ 9 any ( ! assets ( any paym5t /ableco9 issu] except :]e su* an int]e/ is tak5 9 contemplation ( ! issu]'s insolv5cy or ) ! int5t to h9d]1 delay1 or defraud ! issu] or ! cr$itors ( su* issu]4 7#ac7 ,au?ority to en=ce contracts 7,a7 ,9 g5]al ,! ,corporation z cons]vator or receiv] may en=ce any contract1 o!r ?an a director's or (fic]'s liability insurance contract or a bond1 ent]$ into by ! paym5t /ableco9 issu] not)/&+ any provision ( ! contract provid+ = t]m9ation1 default1 accel]ation1 or ex]cise ( rights ^u1 or solely by reason (1 insolv5cy or ! appo9tm5t ( or ! ex]cise ( rights or p[]s by ! ,corporation z cons]vator or receiv]4 7,b7 ,c]ta9 rights n affect$ ,no provision ( ?is p>agraph may be con/ru$ z impair+ or affect+ any "r ( ! ,corporation z cons]vator or receiv] to en=ce or recov] "u a director's or (fic]'s liability insurance contract or bond "u o!r applicable law4 7,c7 ,cons5t requirem5t 7i7 ,9 g5]al ,except z o!rwise provid$ by ?is section or section #ae ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbe71 no p]son may ex]cise any "r or p[] to t]m9ate1 accel]ate1 or decl>e a default "u any contract to :i* ! paym5t /ableco9 issu] is a p>ty1 or to obta9 possession ( or ex]cise control ov] any prop]ty ( ! issu] or affect any contractual rights ( ! issu]1 )\t ! cons5t ( ! ,corporation z cons]vator or receiv]1 z appropriate1 dur+ ! #de-;day p]iod beg9n+ on ! date ( ! appo9tm5t ( ! ,corporation z cons]vator1 or dur+ ! #ij-;day p]iod beg9n+ on ! date ( ! appo9tm5t ( ! ,corporation z receiv]1 z applicable4 7ii7 ,c]ta9 exceptions ,no provision ( ?is subp>agraph %all apply to a director or (fic] liability insurance contract or bond1 to ! rights ( p>ties to c]ta9 qualifi$ f9ancial contracts pursuant to p>agraph 7#h71 or to ! rights ( p>ties to nett+ contracts pursuant to subtitle ,a ( title ,,iv ( ! ,f$]al ,deposit ,insurance ,corporation ,improvem5t ,act ( #aiia 7#ab ,u4,s4,c4 #ddja et seq471 or %all be con/ru$ z p]mitt+ ! ,corporation z cons]vator or receiv] to fail to comply ) o!rwise en=ceable provisions ( su* contract4 7iii7 ,rule ( con/ruction ,no?+ 9 ?is subp>agraph %all be con/ru$ to limit or o!rwise affect ! applicability ( title #aa1 ,unit$ ,/ates ,code4 7#ad7 ,sav+s clause ,! mean+s ( t]ms us$ 9 ?is subsection are applicable = purposes ( ?is subsection only1 & %all n be con/ru$ or appli$ s z to *all5ge or affect ! *>act]ization1 def9ition1 or treatm5t ( any simil> t]ms "u any o!r /atute1 regulation1 or rule1 includ+ ! ,gramm-,lea*-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,/at4 #acch71 ! ,legal ,c]ta9ty = ,bank ,products ,act ( #bjjj 7#g ,u4,s4,c4 #bg et seq471 ! securities laws 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a771 & ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq474 7g7 ,paym5t ( /ableco9 liabilities 7#a7 ,9 g5]al ,9 case ( ! liquidation (1 or o!r clos+ or w9d+ up ( ! affairs ( a paym5t /ableco9 issu]1 paym5t ( ! out/&+ paym5t /ableco9 liabilities ( ! issu] %all be made by ! ,corporation z soon z possible1 subject to ! provisions ( subsection 7h71 ei!r by ca% or by mak+ available to ea* depositor a transf]r$ deposit 9 an insur$ depository in/itution4 7#b7 ,pro( ( claims ,! ,corporation1 9 its discretion1 may require pro( ( claims to be fil$ & may approve or reject su* claims = paym5t /ableco9 liabilities4 7#c7 ,resolution ( disputes ,a det]m9ation by ! ,corporation reg>d+ any claim = paym5t ( /ableco9 liabilities %all be treat$ z a f9al det]m9ation = purposes ( ?is section4 ,9 its discretion1 ! ,corporation may promulgate regulations prescrib+ proc$ures = resolv+ any disput$ claim4 7#d7 ,review ( ,corporation det]m9ation ,a f9al det]m9ation made by ! ,corporation reg>d+ any claim = paym5t ( /ableco9 liabilities %all be a f9al ag5cy action reviewable 9 accordance ) *apt] #g ( title #e1 ,unit$ ,/ates ,code1 by ! ,unit$ ,/ates di/rict c\rt = ! ,f$]al judicial di/rict :]e ! pr9cipal place ( bus9ess ( ! paym5t /ableco9 issu] is locat$4 7#e7 ,/atute ( limitations ,any reque/ = review ( a f9al det]m9ation by ! ,corporation reg>d+ any claim reg>d+ paym5t ( /ableco9 liabilities %all be fil$ ) ! appropriate ,unit$ ,/ates di/rict c\rt n lat] ?an #fj days aft] ! date on :i* su* det]m9ation is issu$4 7h7 ,subrogation ( ,corporation 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( ,f$]al law1 ! law ( any ,/ate1 or ! con/itution ( any ,/ate1 ! ,corporation1 ^u ! paym5t to any cu/om] z provid$ 9 subsection 7g7 9 connection ) a paym5t /ableco9 issu] describ$ 9 su* subsection or ! assumption ( paym5t /ableco9 liabilities by ano!r paym5t /ableco9 issu] pursuant to ?is section1 %all be subrogat$ to all rights ( ! cu/om] aga9/ su* issu] to ! ext5t ( su* paym5t or assumption4 7#b7 ,divid5ds on subrogat$ am\nts ,! subrogation ( ! ,corporation "u p>agraph 7#a7 ) respect to any paym5t /ableco9 issu] %all include ! "r on ! "p ( ! ,corporation to receive ! same divid5ds f ! proce$s ( ! assets ( su* issu] & recov]ies on acc\nt ( /ockhold]s' liability z w\ld h be5 payable to ! cu/om] on a claim = ! /ableco9 liability4 7#c7 ,waiv] ( c]ta9 claims ,) respect to a paym5t /ableco9 issu]1 ! ,corporation %all waive1 9 favor only ( any p]son aga9/ :om /ockhold]s' individual liability may be ass]t$1 any claim on acc\nt ( su* liability 9 excess ( ! liability1 if any1 to ! issu] or its cr$itors1 = ! am\nt unpaid ^u su* /ock 9 su* issu]2 b any su* waiv] %all be effect$ 9 su* mann] & on su* t]ms & conditions z w n increase recov]ies or divid5ds on acc\nt ( claims to :i* ! ,corporation is n subrogat$4 7#d7 ,applicability ( ,/ate law ,subject to subsection 7e77#aa71 if ! ,corporation is appo9t$ pursuant to subsection 7d77#c71 ! rights ( cu/om]s & o!r cr$itors ( any ,/ate-*>t]$ paym5t /ableco9 issu] %all be det]m9$ 9 accordance ) ! applicable provisions ( ,/ate law4 7i7 ,valuation ( claims 9 default 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( ,f$]al law or ! law ( any ,/ate & reg>dless ( ! me?od :i* ! ,corporation det]m9es to utilize ) respect to a paym5t /ableco9 issu] 9 default or 9 dang] ( default1 includ+ transactions au?oriz$ "u subsection 7o71 ?is subsection %all gov]n ! rights ( ! cr$itors 7o!r ?an cu/om]s7 ( su* in/itution4 7#b7 ,maximum liability ,! maximum liability ( ! ,corporation1 act+ z receiv] or 9 any o!r capacity1 to any p]son hav+ a claim aga9/ ! receiv] or ! paym5t /ableco9 issu] = :i* su* receiv] is appo9t$ %all equal ! am\nt su* claimant w\ld h receiv$ if ! ,corporation _h liquidat$ ! assets & liabilities ( su* in/itution )\t ex]cis+ ! ,corporation's au?ority "u subsection 7o7 ( ?is section4 7j7 ,limitation on c\rt action ,except z provid$ 9 ?is section1 no c\rt may take any action1 except at ! reque/ ( ! ,bo>d ( ,directors ( ! ,corporation by regulation or ord]1 to re/ra9 or affect ! ex]cise ( p[]s or functions ( ! ,corporation z a cons]vator or a receiv]4 7k7 ,liability ( directors & (fic]s ,a director or (fic] ( a paym5t /ableco9 issu] may be held p]sonally liable = monet>y damages 9 any civil action by1 on behalf (1 or at ! reque/ or direction ( ! ,corporation1 :i* action is prosecut$ :olly or p>tially = ! b5efit ( ! ,corporation-- 7#a7 act+ z cons]vator or receiv] ( su* issu]2 7#b7 act+ bas$ ^u a suit1 claim1 or cause ( action pur*as$ f1 assign$ by1 or o!rwise convey$ by su* receiv] or cons]vator2 or 7#c7 = gross neglig5ce1 includ+ any simil> conduct or conduct t demon/rates a great] disreg>d ( a duty ( c>e 7?an gross neglig5ce7 includ+ int5tional torti\s conduct1 z su* t]ms are def9$ & det]m9$ "u applicable ,/ate law1 provid$ t no?+ 9 ?is p>agraph %all impair or affect any "r ( ! ,corporation "u o!r applicable law4 7l7 ,damages ,9 any proce$+ relat$ to any claim aga9/ a paym5t /ableco9 issu]'s director1 (fic]1 employee1 ag5t1 attorney1 acc\ntant1 apprais]1 or any o!r p>ty employ$ by or provid+ s]vices to a paym5t /ableco9 issu]1 recov]able damages det]m9$ to result f ! improvid5t or o!rwise improp] use or inve/m5t ( any paym5t /ableco9 issu]'s assets %all include pr9cipal losses & appropriate int]e/4 7m7 ,bridge paym5t /ableco9 issu]s 7#a7 ,organization 7,a7 ,purpose ,:5 #a or m paym5t /ableco9 issu]s are 9 default1 or :5 ! ,corporation anticipates t #a or m paym5t /ableco9 issu]s may become 9 default1 ! ,corporation may1 9 its discretion1 organize1 & ! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 ) respect to #a or m paym5t /ableco9 issu]s1 %all *>t]1 #a or m depository in/itutions1 z appropriate1 ) respect !reto ) ! p[]s & attributes ( paym5t /ableco9 issu]s z applicable1 subject to ! provisions ( ?is subsection1 to be ref]r$ to z bridge paym5t /ableco9 issu]s4 7,b7 ,au?orities ,^u ! grant+ ( a *>t] to a bridge paym5t /ableco9 issu]1 ! bridge issu] may-- 7i7 assume su* paym5t /ableco9 assets & liabilities ( ! paym5t /ableco9 issu] t is or are 9 default or 9 dang] ( default z ! ,corporation may1 9 its discretion1 det]m9e to be appropriate2 & 7ii7 p]=m any o!r tempor>y function :i* ! ,corporation may1 9 its discretion1 prescribe 9 accordance ) ?is ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq474 7,c7 ,articles ( association ,! articles ( association & organization c]tificate ( a bridge paym5t /ableco9 issu] z approv$ by ! ,corporation %all be execut$ by #c repres5tatives designat$ by ! ,corporation4 7,d7 ,int]im directors ,a bridge paym5t /ableco9 issu] %all h an int]im bo>d ( directors consi/+ ( n few] ?an #e nor m ?an #aj memb]s appo9t$ by ! ,corporation4 7,e7 ,national bank or ,f$]al sav+s association ,a bridge paym5t /ableco9 issu] %all be organiz$ z a depository in/itution "u ! ,national ,bank ,act 7#ab ,u4,s4,c4 #ba et seq474 7#b7 ,*>t]+ 7,a7 ,conditions ,a depository in/itution may be *>t]$ by ! ,comptroll] z a bridge paym5t /ableco9 issu] only if ! ,bo>d ( ,directors ( ! ,corporation det]m9es t-- 7i7 ! am\nt :i* is reasonably necess>y to op]ate su* bridge issu] w n exce$ ! am\nt :i* is reasonably necess>y to save ! co/ ( liquidat+1 includ+ pay+ ! liabilities (1 #a or m paym5t /ableco9 issu]s 9 default or 9 dang] ( default ) respect to :i* ! bridge paym5t /ableco9 issu] is *>t]$2 7ii7 ! cont9u$ op]ation ( su* paym5t /ableco9 issu] or issu]s 9 default or 9 dang] ( default ) respect to :i* ! bridge paym5t /ableco9 issu] is *>t]$ is ess5tial to provide cont9u$ s]vices to ! cu/om]s ( ! issu]2 or 7iii7 ! cont9u$ op]ation ( su* paym5t /ableco9 issu] or issu]s 9 default or 9 dang] ( default ) respect to :i* ! bridge issu] is *>t]$ is 9 ! be/ int]e/ ( ! cu/om] ( su* issu] or issu]s 9 default or 9 dang] ( default or ! public4 7,b7 ,insur$ national bank or ,f$]al sav+s association ,a bridge depository in/itution %all be a national paym5t /ableco9 issu] f ! "t x is *>t]$ by ! ,comptroll] z a depository in/itution4 7,c7 ,bridge bank treat$ z be+ 9 default = c]ta9 purposes ,a bridge paym5t /ableco9 issu] %all be treat$ z an issu] 9 default at su* times & = su* purposes z ! ,corporation may1 9 its discretion1 det]m9e4 7,d7 ,managem5t ,a bridge paym5t /ableco9 issu]1 ^u ! grant+ ( its *>t]1 %all be "u ! managem5t ( a bo>d ( directors consi/+ ( n few] ?an #e nor m ?an #aj memb]s appo9t$ by ! ,corporation4 7,e7 ,bylaws ,! bo>d ( directors ( a bridge paym5t /ableco9 issu] %all adopt su* bylaws z may be approv$ by ! ,corporation4 7#c7 ,transf] ( assets & liabilities 7,a7 ,9 g5]al 7i7 ,transf] ^u grant ( *>t] ,^u ! grant+ ( a *>t] to a bridge paym5t /ableco9 issu] pursuant to ?is subsection1 ! ,corporation1 z receiv]1 or any o!r receiv] appo9t$ ) respect to any paym5t /ableco9 issu] 9 default ) respect to :i* ! bridge paym5t /ableco9 issu] is *>t]$ may transf] any assets & liabilities ( su* issu] 9 default to ! bridge issu] 9 accordance ) p>agraph 7#a74 7ii7 ,subsequ5t transf]s ,at any "t aft] a *>t] is grant$ to a bridge paym5t /ableco9 issu]1 ! ,corporation1 z receiv]1 or any o!r receiv] appo9t$ ) respect to a paym5t /ableco9 issu] 9 default may transf] any assets & liabilities ( su* issu] 9 default z ! ,corporation may1 9 its discretion1 det]m9e to be appropriate 9 accordance ) p>agraph 7#a74 7iii7 ,effective )\t approval ,! transf] ( any assets or liabilities ( a paym5t /ableco9 issu] 9 default transf]r$ to a bridge paym5t /ableco9 issu] %all be effective )\t any fur!r approval "u ,f$]al or ,/ate law1 assignm5t1 or cons5t ) respect !reto4 7#d7 ,p[]s ( bridge paym5t /ableco9 issu]s ,ea* bridge paym5t /ableco9 issue *>t]$ "u ?is subsection %all h all corporate p[]s (1 & be subject to ! same provisions ( law z1 a paym5t /ableco9 issu] t is a depository in/itution *>t]$ by ! ,comptroll]1 z appropriate1 except t-- 7,a7 ! ,corporation may-- 7i7 remove ! int]im directors & directors ( a bridge issu]2 7ii7 fix ! comp5sation ( memb]s ( ! int]im bo>d ( directors & ! bo>d ( directors & s5ior managem5t1 z det]m9$ by ! ,corporation 9 its discretion1 ( a bridge issu]2 & 7iii7 waive any requirem5t e/abli%$ "u section #eade1 #eadf1 #eadg1 #eadh1 or #eadi ( ! ,revis$ ,/atutes 7relat+ to directors ( national banks7 or section #ca ( ! ,bank+ ,act ( #aicc 7#ab ,u4,s4,c4 #ga;a7 :i* w\ld o!rwise be applicable ) respect to directors ( a bridge issu] by op]ation ( p>agraph 7#b77;,b72 7,b7 ! ,corporation may indemnify ! repres5tatives = purposes ( p>agraph 7#a77;,b7 & ! int]im directors1 directors1 (fic]s1 employees1 & ag5ts ( a bridge paym5t /ableco9 issu] on su* t]ms z ! ,corporation det]m9es to be appropriate2 7,c7 no requirem5t "u any provision ( law relat+ to ! capital ( a paym5t /ableco9 issu] %all apply ) respect to a bridge issu]2 7,d7 ! ,comptroll] ( ! ,curr5cy may e/abli% a limitation on ! ext5t to :i* any p]son may become indebt$ to a bridge issu] )\t reg>d to ! am\nt ( ! bridge issu]'s capital or surplus2 7,e7 7i7 ! bo>d ( directors ( a bridge paym5t /ableco9 issu] %all elect a *airp]son :o may also s]ve 9 ! position ( *ief executive (fic]1 except t su* p]son %all n s]ve ei!r z *airp]son or z *ief executive (fic] )\t ! prior approval ( ! ,corporation2 & 7ii7 ! bo>d ( directors ( a bridge paym5t /ableco9 issu] may appo9t a *ief executive (fic] :o is n also ! *airp]son1 except t su* p]son %all n s]ve z *ief executive (fic] )\t ! prior approval ( ! ,corporation2 7,f7 ! ,comptroll] %all waive any requirem5t = a fidelity bond ) respect to a bridge paym5t /ableco9 issu] at ! reque/ ( ! ,corporation2 7,g7 any judicial action to :i* a bridge paym5t /ableco9 issu] becomes a p>ty by virtue ( its acquisition ( any assets or assumption ( any liabilities ( a paym5t /ableco9 issu] 9 default %all be /ay$ f fur!r proce$+s = a p]iod ( up to #de days at ! reque/ ( ! bridge issu]2 7,h7 no agreem5t :i* t5ds to dim9i% or defeat ! "r1 title or int]e/ ( a bridge paym5t /ableco9 issu] 9 any asset ( a paym5t /ableco9 issu] 9 default acquir$ by x %all be valid aga9/ ! bridge issu] unless su* agreem5t-- 7i7 is 9 writ+2 7ii7 0 execut$ by su* paym5t /ableco9 issu] 9 default & ! p]son or p]sons claim+ an adv]se int]e/ !reund]1 includ+ ! obligor1 contemporane\sly ) ! acquisition ( ! asset by su* issu] 9 default2 7iii7 0 approv$ by ! bo>d ( directors ( su* paym5t /ableco9 issu] 9 default1 :i* approval %all be reflect$ 9 ! m9utes ( said bo>d2 & 7iv7 has be51 cont9u\sly f ! "t ( its execution1 an (ficial record ( su* paym5t /ableco9 issu] 9 default2 & 7,i7 except ) ! prior approval ( ! ,corporation1 a bridge paym5t /ableco9 issu] may n1 9 any transaction or s]ies ( transactions1 issue capital /ock or be a p>ty to any m]g]1 consolidation1 disposition ( assets or liabilities1 sale or ex*ange ( capital /ock1 or simil> transaction1 or *ange its *>t]4 7#e7 ,capital 7,a7 ,no capital requir$ ,! ,corporation %all n be requir$ to-- 7i7 issue any capital /ock on behalf ( a bridge paym5t /ableco9 issu] *>t]$ "u ?is subsection2 or 7ii7 pur*ase any capital /ock ( a bridge paym5t /ableco9 issu]4 7,b7 ,capital ( insolv5t in/itution ,^u ! organization ( a bridge paym5t /ableco9 issu]1 ! capital ( ! insolv5t paym5t /ableco9 issu] %all be us$ to fund ! op]ations ( ! bridge issu]4 7,c7 ,au?ority to issue capital /ock ,:5ev] ! ,bo>d ( ,directors ( ! ,corporation det]m9es x is advisable to d s1 ! ,corporation %all cause capital /ock ( a bridge paym5t /ableco9 issu] to be issu$ & (f]$ = sale 9 su* am\nts & on su* t]ms & conditions z ! ,corporation may1 9 its discretion1 det]m9e4 7,d7 ,capital levels ,a bridge paym5t /ableco9 issu] %all n be consid]$ und]capitaliz$ "u any o!r provision ( ,f$]al law4 7#f7 ,no ,f$]al /atus 7,a7 ,ag5cy /atus ,a bridge paym5t /ableco9 issu] %all n be consid]$ an ag5cy1 e/abli%m5t1 or in/rum5tality ( ! ,unit$ ,/ates4 7,b7 ,employee /atus ,repres5tatives = purposes ( p>agraph 7#a77;,c71 int]im directors1 directors1 (fic]s1 employees1 or ag5ts ( a bridge paym5t /ableco9 issu] %all n be consid]$1 solely by virtue ( s]vice 9 any su* capacity1 (fic]s or employees ( ! ,unit$ ,/ates4 ,any employee ( ! ,corporation or ( any ,f$]al in/rum5tality :o s]ves at ! reque/ ( ! ,corporation z a repres5tative = purposes ( p>agraph 7#a77;,c71 int]im director1 director1 (fic]1 employee1 or ag5t ( a bridge paym5t /ableco9 issu] %all n-- 7i7 solely by virtue ( s]vice 9 any su* capacity lose any exi/+ /atus z an (fic] or employee ( ! ,unit$ ,/ates = purposes ( title #e1 ,unit$ ,/ates ,code1 or any o!r provision ( law2 or 7ii7 receive any sal>y or b5efits = s]vice 9 any su* capacity ) respect to a bridge paym5t /ableco9 issu] 9 addition to su* sal>y or b5efits z are obta9$ ?r\gh employm5t ) ! ,corporation or su* ,f$]al in/rum5tality4 7#g7 ,duration ( bridge paym5t /ableco9 issu] ,subject to p>agraphs 7#h7 & 7#i71 ! /atus ( a bridge paym5t /ableco9 issu] z su* %all t]m9ate at ! end ( ! #b-ye> p]iod foll[+ ! date x 0 grant$ a *>t]4 ,! ,bo>d ( ,directors ( ! ,corporation may1 9 its discretion1 ext5d ! /atus ( ! bridge paym5t /ableco9 issu] z su* = #c additional #a-ye> p]iods4 7#h7 ,t]m9ation ( bridge paym5t /ableco9 issu] /atus ,! /atus ( any bridge paym5t /ableco9 issu] z su* %all t]m9ate ^u ! e>lie/ (-- 7,a7 ! m]g] or consolidation ( ! bridge issu] ) a paym5t /ableco9 issu] t is n a bridge issu]2 7,b7 at ! election ( ! ,corporation1 ! sale ( a majority ( ! capital /ock ( ! bridge paym5t /ableco9 issu] to an entity o!r ?an ! ,corporation & o!r ?an ano!r bridge issu]2 7,c7 ! sale ( #hj p]c5t1 or m1 ( ! capital /ock ( ! bridge paym5t /ableco9 issu] to an entity o!r ?an ! ,corporation & o!r ?an ano!r bridge issu]2 7,d7 at ! election ( ! ,corporation1 ei!r ! assumption ( all or sub/antially all ( ! paym5t /ableco9 liabilities ( ! bridge paym5t /ableco9 issu] by ano!r paym5t /ableco9 issu]1 or ! acquisition ( all or sub/antially all ( ! assets ( ! bridge issu] by a paym5t /ableco9 issu] t is n a bridge issu]1 or o!r entity z p]mitt$ "u applicable law2 & 7,e7 ! expiration ( ! p]iod provid$ 9 p>agraph 7#g71 or ! e>li] dissolution ( ! bridge paym5t /ableco9 issu] z provid$ 9 p>agraph 7#aj74 7#i7 ,effect ( t]m9ation ev5ts 7,a7 ,m]g] or consolidation ,a bridge paym5t /ableco9 issu] t p>ticipates 9 a m]g] or consolidation z provid$ 9 p>agraph 7#h77;,a7 %all be = all purposes a paym5t /ableco9 issu] t is a depository in/itution "u ! sup]vision & regulation ( ! ,comptroll]1 z ! case may be1 ) all ! rights1 p[]s1 & privileges !re(1 & su* m]g] or consolidation %all be conduct$ 9 accordance )1 & %all h ! effect provid$ 91 ! provisions ( applicable law4 7,b7 ,*>t] conv]sion ,foll[+ ! sale ( a majority ( ! capital /ock ( ! bridge paym5t /ableco9 issu] z provid$ 9 p>agraph 7#h77;,b71 ! ,corporation may am5d ! *>t] ( ! bridge paym5t /ableco9 issu] to reflect ! t]m9ation ( ! /atus ( ! bridge issu] z su*1 :]eupon ! issu] %all rema9 a depository in/itution "u ! sup]vision ( ! ,comptroll]1 z ! case may be1 ) all ( ! rights1 p[]s1 & privileges !re(1 subject to all laws & regulations applicable !reto4 7,c7 ,sale ( /ock ,foll[+ ! sale ( #hj p]c5t or m ( ! capital /ock ( a bridge paym5t /ableco9 issu] z provid$ 9 p>agraph 7#h77;,c71 ! paym5t /ableco9 issu] %all rema9 a depository in/itution t is a paym5t /ableco9 issu] "u ! sup]vision ( ! ,comptroll]1 ) all ( ! rights1 p[]s1 & privileges !re(1 subject to all laws & regulations applicable !reto4 7,d7 ,assumption ( liabilities & sale ( assets ,foll[+ ! assumption ( all or sub/antially all ( ! liabilities ( ! bridge paym5t /ableco9 issu]1 or ! sale ( all or sub/antially all ( ! assets ( ! bridge issu]1 z provid$ 9 p>agraph 7#h77;,d71 at ! election ( ! ,corporation1 ! bridge issu] may reta9 its /atus z su* = ! p]iod provid$ 9 p>agraph 7#g74 7,e7 ,am5dm5ts to *>t] ,foll[+ ! consummation ( a transaction describ$ 9 subp>agraph 7,a71 7,b71 7,c71 or 7,d7 ( p>agraph 7#h71 ! *>t] ( ! result+ issu] %all be am5d$ to reflect ! t]m9ation ( bridge paym5t /ableco9 issu] /atus1 if appropriate4 7#aj7 ,dissolution ( bridge paym5t /ableco9 issu] 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( ,/ate or ,f$]al law1 if ! bridge paym5t /ableco9 issu]'s /atus z su* has n previ\sly be5 t]m9at$ by ! occurr5ce ( an ev5t specifi$ 9 subp>agraph 7,a71 7,b71 7,c71 or 7,d7 ( p>agraph 7#h7-- 7i7 ! ,bo>d ( ,directors ( ! ,corporation may1 9 its discretion1 dissolve a bridge paym5t /ableco9 issu] 9 accordance ) ?is p>agraph at any "t2 & 7ii7 ! ,bo>d ( ,directors ( ! ,corporation %all promptly comm5ce dissolution proce$+s 9 accordance ) ?is p>agraph ^u ! expiration ( ! #b-ye> p]iod foll[+ ! date ! bridge paym5t /ableco9 issu] 0 *>t]$1 or any ext5sion !re(1 z provid$ 9 p>agraph 7#g74 7,b7 ,proc$ures ,! ,comptroll] %all appo9t ! ,corporation z receiv] = a bridge paym5t /ableco9 issu] ^u c]tification by ! ,bo>d ( ,directors ( ! ,corporation to ! ,comptroll] ( its det]m9ation to dissolve ! bridge issu]4 ,! ,corporation z su* receiv] %all w9d up ! affairs ( ! bridge issu]4 ,) respect to any su* bridge paym5t /ableco9 issu]1 ! ,corporation z su* receiv] %all h all ! rights1 p[]s1 & privileges & %all p]=m ! duties relat$ to ! ex]cise ( su* rights1 p[]s1 or privileges grant$ by law to a receiv] ( paym5t /ableco9 issu]s & not)/&+ any o!r provision ( law 9 ! ex]cise ( su* rights1 p[]s1 & privileges ! ,corporation %all n be subject to ! direction or sup]vision ( any ,/ate ag5cy or o!r ,f$]al ag5cy4 7#aa7 ,multiple bridge paym5t /ableco9 issu]s ,subject to p>agraph 7#a77;,b77i71 ! ,corporation may1 9 ! ,corporation's discretion1 organize #b or m bridge paym5t /ableco9 issu]s "u ?is subsection to assume any paym5t /ableco9 liabilities1 & pur*ase any assets ( a s+le paym5t /ableco9 issu] 9 default4 7n7 ,sup]visory records ,:5ev] ! ,corporation has be5 appo9t$ z receiv] = a paym5t /ableco9 issu]1 ! ,comptroll] or ,/ate bank sup]visor1 & ! ,bo>d1 %all make available all sup]visory records to ! receiv] :i* may be us$ by ! receiv] 9 any mann] ! receiv] det]m9es to be appropriate4 7o7 ,c]ta9 sales ( assets prohibit$ 7#a7 ,p]sons :o engag$ 9 improp] conduct )1 or caus$ losses to1 paym5t /ableco9 issu]s ,! ,corporation %all prescribe regulations :i*1 at a m9imum1 %all prohibit ! sale ( assets ( a fail$ paym5t /ableco9 issu] by ! ,corporation to-- 7,a7 any p]son :o-- 7i7 has default$1 or 0 a memb] ( a p>tn]%ip or an (fic] or director ( a corporation t has default$1 on #a or m obligations ! aggregate am\nt ( :i* exce$ #a1jjj1jjj1 to su* fail$ paym5t /ableco9 issu]2 & 7ii7 proposes to pur*ase any su* asset 9 :ole or 9 "p ?r\gh ! use ( ! proce$s ( a loan or advance ( cr$it f ! ,corporation or f any in/itution = :i* ! ,corporation has be5 appo9t$ z cons]vator or receiv]2 7,b7 any p]son :o p>ticipat$1 z an (fic] or director ( su* fail$ issu] or ( any affiliate ( su* issu]1 9 a mat]ial way 9 transactions t result$ 9 a sub/antial loss to su* fail$ issu]2 7,c7 any p]son :o has be5 remov$ f1 or prohibit$ f p>ticipat+ 9 ! affairs (1 su* fail$ issu] pursuant to any f9al en=cem5t action by ! ,comptroll]1 ,/ate bank sup]visor or ! ,bo>d2 or 7,d7 any p]son :o has demon/rat$ a patt]n or practice ( defalcation reg>d+ obligations to su* fail$ issu]4 7#b7 ,convict$ debtors ,except z provid$ 9 p>agraph 7#c71 any p]son :o has be5 convict$ ( an (f5se "u section #bae1 #fef1 #feg1 #ajje1 #ajjf1 #ajjg1 #ajjh1 #ajad1 #ajcb1 #acda1 #acdc1 or #acdd ( title #ah1 ,unit$ ,/ates ,code1 or ( conspir+ to commit su* an (f5se1 affect+ any paym5t /ableco9 issu] = :i* ! ,corporation 0 appo9t$ cons]vator or receiv]1 may n pur*ase any asset ( su* in/itution f ! ,corporation z cons]vator or receiv]4 7#c7 ,settlem5t ( claims ,p>agraphs 7#a7 & 7#b7 %all n apply to ! sale or transf] by ! ,corporation ( any asset ( any paym5t /ableco9 issu] to any p]son if ! sale or transf] ( ! asset resolves or settles1 or is "p ( ! resolution or settlem5t1 (-- 7,a7 #a or m claims t h be51 or c\ld h be51 ass]t$ by ! ,corporation aga9/ ! p]son2 or 7,b7 obligations ow$ by ! p]son to any paym5t /ableco9 issu] or ! ,corporation4 7p7 ,exp$it$ proc$ures = c]ta9 claims 7#a7 ,"t = fil+ notice ( appeal ,! notice ( appeal ( any ord]1 :e!r int]locutory or f9al1 ent]$ 9 any case br\ght by ! ,corporation aga9/ a paym5t /ableco9 issu]'s director1 (fic]1 employee1 ag5t1 attorney1 acc\ntant1 or apprais] or any o!r p]son employ$ by or provid+ s]vices to a paym5t /ableco9 issu] %all be fil$ n lat] ?an #cj days aft] ! date ( entry ( ! ord]4 ,! he>+ ( ! appeal %all be held n lat] ?an #abj days aft] ! date ( ! notice ( appeal4 ,! appeal %all be decid$ n lat] ?an #ahj days aft] ! date ( ! notice ( appeal4 7#b7 ,s*$ul+ ,consi/5t ) section #afeg ( title #bh1 ,unit$ ,/ates ,code1 a c\rt ( ! ,unit$ ,/ates %all exp$ite ! consid]ation ( any case br\ght by ! ,corporation aga9/ a paym5t /ableco9 issu]'s director1 (fic]1 employee1 ag5t1 attorney1 acc\ntant1 or apprais] or any o!r p]son employ$ by or provid+ s]vices to ! issu]4 ,z f> z practicable1 ! c\rt %all give su* case priority on its docket4 7#c7 ,judicial discretion ,! c\rt may modify ! s*$ule & limitations /at$ 9 p>agraphs 7#a7 & 7#b7 9 a p>ticul> case1 bas$ on a specific f9d+ t ! ends ( ju/ice t w\ld be s]v$ by mak+ su* a modification w\ld outweigh ! be/ int]e/ ( ! public 9 hav+ ! case resolv$ exp$iti\sly4 7q7 ,=eign inve/igations ,! ,corporation1 z cons]vator or receiv] ( a paym5t /ableco9 & = purposes ( c>ry+ out any p[]1 au?ority1 or duty ) respect to an issu]-- 7#a7 may reque/ ! assi/ance ( any =eign bank+ au?ority & provide assi/ance to any =eign bank+ au?ority 9 accordance ) section #h7v7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7v772 & 7#b7 may ea* ma9ta9 an (fice to coord9ate =eign inve/igations or inve/igations on behalf ( =eign bank+ au?orities4 7r7 ,prohibition on ent]+ secrecy agreem5ts & protective ord]s ,! ,corporation may n ent] into any agreem5t or approve any protective ord] :i* prohibits ! ,corporation f disclos+ ! t]ms ( any settlem5t ( an adm9i/rative or o!r action = damages or re/itution br\ght by ! ,corporation 9 its capacity z cons]vator or receiv] = a paym5t /ableco9 issu]4 7s7 ,ag5cies may %>e in=mation )\t waiv+ privilege 7#a7 ,9 g5]al ,a cov]$ ag5cy1 9 any capacity1 %all n be deem$ to h waiv$ any privilege applicable to any in=mation by transf]r+ t in=mation to or p]mitt+ t in=mation to be us$ by-- 7,a7 any o!r cov]$ ag5cy1 9 any capacity2 or 7,b7 any o!r ag5cy ( ! ,f$]al ,gov]nm5t 7z def9$ 9 section #f ( title #ah1 ,unit$ ,/ates ,code74 7#b7 ,def9itions ,= purposes ( ?is subsection3 7,a7 ,cov]$ ag5cy ,! t]m cov]$ ag5cy means any ( ! foll[+3 7i7 ,any ,f$]al bank+ ag5cy or ,/ate bank sup]visor4 7ii7 ,! ,f>m ,cr$it ,adm9i/ration4 7iii7 ,! ,f>m ,cr$it ,sy/em ,insurance ,corporation4 7iv7 ,! ,national ,cr$it ,union ,adm9i/ration4 7v7 ,! ,gov]nm5t ,acc\ntability ,(fice4 7vi7 ,! ,bureau ( ,consum] ,f9ancial ,protection4 7vii7 ,! ,f$]al ,h\s+ ,f9ance ,ag5cy4 7,b7 ,privilege ,! t]m privilege includes any "w-product1 attorney-cli5t1 or o!r privilege recogniz$ "u ,f$]al or ,/ate law4 7#c7 ,rule ( con/ruction ,p>agraph 7#a7 %all n be con/ru$ z imply+ t any p]son waives any privilege applicable to any in=mation because p>agraph 7#a7 does n apply to ! transf] or use ( t in=mation4 #aj4 ,con=m+ am5dm5ts 7a7 ,title #aa ,section #aji7;b77#b7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ to read z foll[s3 7#b7 a dome/ic insurance company1 bank 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 sav+s bank1 coop]ative bank1 sav+s & loan association1 build+ & loan association1 depository in/itution1 home/ead association1 a ,new ,m>kets ,v5ture ,capital company z def9$ 9 section #cea ( ! ,small ,bus9ess ,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4 #fhi71 a small bus9ess inve/m5t company lic5s$ by ! ,small ,bus9ess ,adm9i/ration "u section #cja ( ! ,small ,bus9ess ,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4 #fha71 cr$it union1 paym5t /ableco9 issu] 7z def9$ 9 section #ja ( ! ,lummis-,gillibr& ,paym5t ,/ableco9 ,act71 or indu/rial bank or simil> in/itution t is an insur$ bank 7z def9$ 9 section #c7;h7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7;h772 or 4 7b7 ,f$]al ,deposit ,insurance ,act ,section #ac7;e77#a7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e77#a77 is am5d$-- 7#a7 9 ! matt] prec$+ subp>agraph 7,a71 by ins]t+ or a paym5t /ableco9 issu] aft] any insur$ depository in/itution2 7#b7 9 subp>agraph 7,b71 by ins]t+ or ! paym5t /ableco9 issu] aft] ! depository in/itution ea* place x appe>s2 7#c7 9 subp>agraph 7,c71 by /rik+ ! ! depository in/itution or its loan committee & ins]t+ ! depository in/itution 7or its loan committee7 or a paym5t /ableco9 issu]2 & 7#d7 9 subp>agraph 7,d71 by ins]t+ or ! paym5t /ableco9 issu] aft] ! depository in/itution4 #aa4 ,en=cem5t 7a7 ,civil action ,! applicable paym5t /ableco9 regulator may br+ an action 9 ! appropriate di/rict c\rt ( ! ,unit$ ,/ates1 or ! c\rt ( any t]ritory ( ! ,unit$ ,/ates1 to seek an ord] = ! en=cem5t ( ?is ,act & su* c\rt %all h jurisdiction & p[] to ord] & require compliance h]e)1 includ+ ?r\gh injunctive relief4 7b7 ,prohibition on unau?oriz$ p>ticipation by convict$ individuals 7#a7 ,9 g5]al ,no p]son :o has be5 convict$ ( any crim9al (f5se involv+ insid] trad+1 embezzlem5t1 cyb]crime1 money laund]+1 or f9anc+ ( t]rorism1 or ( felony f9ancial fraud may s]ve z an executive (fic] or a p]son ) control ( m ?an #e p]c5t ( ! %>es ( a paym5t /ableco9 issu]4 7#b7 ,waiv]2 exceptions ,! ,bo>d %all provide by rule a process to apply = a waiv] ( ! prohibition "u p>agraph 7#a7 & may provide = de m9imis exceptions to ! prohibition "u su* p>agraph t w\ld n require a waiv]4 7c7 ,susp5sion or revocation ,! applicable paym5t /ableco9 regulator may prohibit a paym5t /ableco9 issu] f issu+ paym5t /ableco9s "u a regi/ration or au?orization if ! regulator det]m9es t ! paym5t /ableco9 issu]1 or an in/itution-affiliat$ p>ty1 is-- 7#a7 violat+ or has violat$ an applicable law1 regulation1 or ord]2 7#b7 violat+ or has violat$ any condition impos$ 9 writ+ by ! ,comptroll]1 ,/ate bank sup]visor1 or ,bo>d 9 connection ) a writt5 agreem5t ent]$ into betwe5 ! paym5t /ableco9 issu] & ! appropriate regulator or a condition impos$ 9 connection ) any application or o!r reque/2 or 7#c7 op]at+ 9 an unsafe or uns\nd mann]4 7d7 ,cease-&-,desi/ proce$+s ,if ! applicable paym5t /ableco9 regulator has reasonable cause to believe t a paym5t /ableco9 issu] or any in/itution-affiliat$ p>ty is violat+ or has violat$ ?is ,act1 any rule or ord] issu$ pursuant to ?is ,act1 or any writt5 agreem5t ent]$ into ) ! ,comptroll]1 ,/ate bank sup]visor1 or ,bo>d1 or condition impos$ 9 writ+ 9 connection ) any application or o!r reque/1 ! applicable paym5t /ableco9 regulator may1 by provisions t are m&atory or o!rwise1 ord] ! paym5t /ableco9 issu] or in/itution-affiliat$ p>ty ( ! paym5t /ableco9 issu] to-- 7#a7 cease & desi/ f su* violation or practice2 7#b7 take affirmative action to correct ! conditions result+ f any su* violation or practice2 or 7#c7 take su* o!r action1 z det]m9$ to be appropriate4 7e7 ,removal & prohibition au?ority ,! applicable paym5t /ableco9 regulator may remove an in/itution-affiliat$ p>ty f _! position or (fice or prohibit fur!r p>ticipation ( ! in/itution-affiliat$ p>ty 9 ! affairs ( ! paym5t /ableco9 issu] or 9 ! affairs ( all paym5t /ableco9 issu]s if ! applicable paym5t /ableco9 regulator det]m9es t-- 7#a7 ! in/itution-affiliat$ p>ty has1 directly or indirectly1 committ$ a violation or attempt$ violation ( ?is ,act2 7#b7 ! in/itution-affiliat$ p>ty has committ$ a violation ( any provision ( sub-*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code2 or 7#c7 ! in/itution-affiliat$ p>ty is o!rwise disqualifi$ pursuant to subsection 7b74 7f7 ,en=cem5t & p5alty au?orities ) respect to safety & s\ndness ,) respect to a paym5t /ableco9 issu]1 if ! applicable paym5t /ableco9 regulator has reasonable cause to believe t ! paym5t /ableco9 issu] or an in/itution-affiliat$ p>ty ( ! paym5t /ableco9 issu] is engag+ or has engag$ 9 an unsafe or uns\nd practice1 ! applicable paym5t /ableco9 regulator %all h ! same au?orities & responsibilities z ! ,f$]al ,deposit ,insurance ,corporation ) respect to an insur$ depository in/itution & an in/itution-affiliat$ p>ty "u section #h ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7g7 ,proc$ure 7#a7 ,notice ,= ea* violation or attempt$ violation ( ?is ,act1 ! applicable paym5t /ableco9 regulator %all provide notice to ! paym5t /ableco9 issu] & any in/itution-affiliat$ p>ty ( ! paym5t /ableco9 issu]1 :i* %all include-- 7,a7 a /atem5t ( facts con/itut+ ! id5tifi$ violation or attempt$ violation2 & 7,b7 a notice ( a he>+ t w be held ) respect to ! violation or attempt$ violation1 includ+ ! "t & place ( ! he>+1 t is set n less ?an #cj days aft] ! date ( ! notice4 7#b7 ,he>+ ,a he>+ describ$ 9 p>agraph 7#a7 %all be held 9 a ,f$]al judicial di/rict or 9 ! t]ritory 9 :i* ! paym5t /ableco9 issu] or in/itution-affiliat$ p>ty is locat$1 unless ! issu] or in/itution-affiliat$ p>ty cons5ts to ano!r place1 & %all be conduct$ 9 accordance ) ! provisions ( *apt] #e ( title #e1 ,unit$ ,/ates ,code4 7#c7 ,writt5 decision ,n lat] ?an #ij days aft] ! applicable paym5t /ableco9 regulator has notifi$ ! p>ties t ! case has be5 submitt$ = a f9al decision1 ! applicable paym5t /ableco9 regulator %all r5d] a writt5 decision t includes a /atem5t ( ! f9d+s ( fact ^u :i* ! decision is pr$icat$ & %all be s]v$ ^u ea* p>ty to ! proce$+ an ord] or ord]s consi/5t ) ! provisions ( ?is section4 7#d7 ,ord]s ,an ord] issu$ "u ?is subsection %all-- 7,a7 be effective z ( ! date set by ! appropriate paym5t /ableco9 regulator aft] ! date ( ! decision1 except 9 ! case ( a cease-&-desi/ ord] issu$ ^u cons5t1 :i* %all become effective at ! "t specifi$ !re92 & 7,b7 rema9 effective & en=ceable z provid$ 9 ! ord]1 except to su* ext5t z x is /ay$1 modifi$1 t]m9at$1 or set aside by ! action ( a regulator or a review+ c\rt4 7#e7 ,appe>ance ,unless a paym5t /ableco9 issu] or in/itution-affiliat$ p>ty ( su* issu] appe>s at ! he>+1 p]sonally or by a duly au?oriz$ repres5tative1 su* issu] or p>ty %all be deem$ to h cons5t$ to ! susp5sion or revocation ( regi/ration or au?orization1 a cease-&-desi/ ord]1 or removal1 z applicable4 7h7 ,judicial review 7#a7 ,9 g5]al ,) respect to a f9al ord] "u ?is section n issu$ by cons5t ( a paym5t /ableco9 issu] or an in/itution-affiliat$ p>ty1 an aggriev$ p]son may1 n lat] ?an #cj days aft] ! date ( s]vice ( ! ord] & writt5 decision1 file a petition = review 9 an appropriate c\rt ( appeals ( ! ,unit$ ,/ates1 or 9 ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia ,circuit to reque/ t ! ord] be modifi$1 t]m9at$1 or set aside4 7#b7 ,transmission ( ! record ,^u ! fil+ ( a petition "u p>agraph 7#a7 ) ! appropriate c\rt1 ! cl]k ( t c\rt %all transmit a copy ( ! petition to ! applicable paym5t /ableco9 regulator :i* %all transmit to ! c\rt ! record ( ! proce$+ relat+ to ! petition1 z provid$ 9 section #baab ( title #bh1 ,unit$ ,/ates ,code4 7#c7 ,exclusive jurisdiction 7,a7 ,9 g5]al ,^u ! fil+ ( a petition "u p>agraph 7#a7 ) ! appropriate c\rt1 t c\rt %all h exclusive jurisdiction to-- 7i7 review ! f9al action1 z provid$ 9 *apt] #g ( title #e1 ,unit$ ,/ates ,code2 & 7ii7 affirm1 modify1 t]m9ate1 or set aside1 9 :ole or 9 "p1 ! applicable ord]4 7,b7 ,f9al judgem5t ,except ^u review by ! ,supreme ,c\rt ^u writ ( c]tior>i1 z provid$ 9 section #abed ( title #bh1 ,unit$ ,/ates ,code1 ! judgm5t & decree ( ! c\rt is f9al4 7i7 ,comm5cem5t ( proce$+s n treat$ z a /ay 7#a7 ,9 g5]al ,! comm5cem5t ( proce$+s = judicial review "u subsection 7h7 %all n1 unless specifically ord]$ by ! appropriate c\rt1 op]ate z a /ay ( any ord]4 7#b7 ,en=cem5t ,! applicable paym5t /ableco9 regulator may1 9 its discretion1 apply to ! appropriate ,unit$ ,/ates di/rict c\rt or ! ,unit$ ,/ates c\rt ( any t]ritory1 = ! en=cem5t ( any effective & out/&+ notice or ord] issu$ "u ?is section1 & su* c\rt %all h jurisdiction & p[] to ord] & require compliance h]e)1 b1 except z o!rwise provid$ 9 ?is section1 no c\rt %all h jurisdiction to affect by injunction or o!rwise ! issuance or en=cem5t ( any notice or ord] "u ?is section1 or to review1 modify1 susp5d1 t]m9ate1 or set aside any su* notice or ord]4 7j7 ,tempor>y cease & desi/ proce$+s 7#a7 ,9 g5]al ,if ! applicable paym5t /ableco9 regulator det]m9es t a violation or attempt$ violation id5tifi$ "u ?is section1 or ! cont9uation !re(1 is likely to cause a receiv]%ip1 insolv5cy1 or significant dissipation ( assets or e>n+s ( a paym5t /ableco9 issu]1 or is likely to weak5 ! condition ( ! paym5t /ableco9 issu] or o!rwise prejudice ! int]e/s ( its cu/om]s prior to ! completion ( ! proce$+s conduct$ pursuant to subsection 7h71 ! applicable paym5t /ableco9 regulator may issue a tempor>y ord] requir+ a paym5t /ableco9 issu] or in/itution-affiliat$ p>ty to cease & desi/ f any su* violation or practice & to take affirmative action to prev5t or rem$y su* receiv]%ip1 insolv5cy1 dissipation1 condition1 or prejudice p5d+ completion ( su* proce$+s4 7#b7 ,effective date ,an ord] describ$ "u p>agraph 7#a7 %all become effective ^u s]vice on ! paym5t /ableco9 issu] or ! in/itution-affiliat$ p>ty &1 unless set aside1 limit$1 or susp5d$ by a c\rt1 rema9 effective & en=ceable p5d+ ! completion ( ! adm9i/rative proce$+s pursuant to su* notice & until su* "t z ! applicable paym5t /ableco9 regulator removes ! susp5sion or ! cease-&-desi/ ord] has expir$4 7k7 ,judicial review ,n lat] ?an #aj days aft] ! date a paym5t /ableco9 issu] conc]n$ or any in/itution-affiliat$ p>ty has be5 s]v$ ) a tempor>y cease-&-desi/ ord]1 ! paym5t /ableco9 issu] or su* p>ty may apply to ! appropriate ,unit$ ,/ates di/rict c\rt1 or ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,columbia1 = an injunction sett+ aside1 limit+1 or susp5d+ ! en=cem5t1 op]ation1 or effectiv5ess ( su* ord] p5d+ ! completion ( ! adm9i/rative proce$+ pursuant to ! notice ( *>ges s]v$ ^u ! paym5t /ableco9 issu] or su* p>ty "u subsection 7g77#d71 & su* c\rt %all h jurisdiction to issue su* injunction4 7l7 ,en=cem5t ( tempor>y cease & desi/ ord]s ,9 ! case ( a violation or attempt$ violation (1 or failure to obey1 a tempor>y cease-&-desi/ ord] issu$ pursuant to ?is section1 ! applicable paym5t /ableco9 regulator may apply to ! appropriate ,unit$ ,/ates di/rict c\rt1 or ! ,unit$ ,/ates c\rt ( any t]ritory1 = an injunction to en=ce su* ord]1 &1 if ! c\rt det]m9es t !re has be5 su* violation or attempt$ violation or failure to obey1 x %all be ! duty ( ! c\rt to issue su* injunction4 7m7 ,failure ,to regi/] or be au?oriz$ ,any paym5t /ableco9 issu] t fails to obta9 ! applicable regi/ration or au?orization "u ?is ,act1 or an in/itution-affiliat$ p>ty t kn[+ly p>ticipates 9 su* a failure1 %all be liable = a civil p5alty ( n m ?an #a1jjj1jjj to ! ,bo>d = ea* day dur+ :i* su* failure cont9ues4 ,! ,bo>d may also seek appropriate relief "u subsection 7a7 = failure ( a paym5t /ableco9 issu] or o!r p]son to regi/] or be au?oriz$ "u section #f or #g1 z appropriate4 7n7 ,fir/ ti] civil monet>y p5alties ,except z provid$ 9 subsection 7m71 a paym5t /ableco9 issu] or in/itution-affiliat$ p>ty ( su* paym5t /ableco9 issu] t violates ?is ,act or any rule or ord] issu$ pursuant to ?is ,act1 or t violates any condition impos$ 9 writ+ 9 connection ) a writt5 agreem5t ent]$ into betwe5 ! paym5t /ableco9 issu] & ! applicable paym5t /ableco9 regulator1 or a condition impos$ 9 connection ) any application or o!r reque/1 %all be liable = a civil p5alty ( up to #ajj1jjj = ea* day dur+ :i* ! violation cont9ues4 7o7 ,second ti] civil monet>y p5alties ,except z provid$ 9 subsection 7m71 a paym5t /ableco9 issu] or any in/itution-affiliat$ p>ty ( su* paym5t /ableco9 issu] t kn[+ly p>ticipates 9 a violation ( any provision ( ?is ,act1 or any rule or ord] issu$ pursuant !reto1 is liable = a civil p5alty ( up to an additional #ajj1jjj = ea* day dur+ :i* ! violation cont9ues4 7p7 ,civil monet>y p5alty proc$ure 7#a7 ,assessm5t & collection ,any civil monet>y p5alty impos$ "u ?is section may be assess$ & collect$ by ! applicable paym5t /ableco9 regulator by foll[+ ! proc$ure set =? "u subsection 7g74 7#b7 ,deadl9e ,! applicable paym5t /ableco9 regulator may comm5ce an action = a civil p5alty result+ f a violation ( ?is ,act at any "t be=e ! end ( ! #f-ye> p]iod beg9n+ on ! date ( su* violation4 7q7 ,en=cem5t ( civil monet>y p5alties 7#a7 ,9 g5]al ,if a paym5t /ableco9 issu] or in/itution-affiliat$ p>ty fails to pay a civil monet>y p5alty assess$ "u ?is section1 ! applicable paym5t /ableco9 regulator %all recov] ! am\nt assess$ by action 9 ! appropriate ,unit$ ,/ates di/rict c\rt4 ,! validity & appropriat5ess ( a civil monet>y p5alty assess$ "u ?is section %all n be subject to review4 7#b7 ,re/ra9+ ord] ,9 any action br\ght pursuant to ?is subsection1 or 9 an action br\ght 9 aid (1 or to en=ce an ord] 91 any adm9i/rative or o!r civil action = money damages1 re/itution1 or civil money p5alties1 ! c\rt may1 ^u application1 issue a re/ra9+ ord] t-- 7,a7 prohibits any p]son subject to ! proce$+ f )draw+1 transf]r+1 remov+1 dissipat+1 or dispos+ ( any assets2 & 7,b7 appo9ts a tempor>y receiv] to adm9i/] ! re/ra9+ ord]4 7r7 ,notice "u ?is section aft] sep>ation f s]vice ,! resignation1 t]m9ation ( employm5t or p>ticipation1 or sep>ation ( an in/itution-affiliat$ p>ty 7includ+ a sep>ation caus$ by ! clos+ ( a paym5t /ableco9 issu]7 %all n affect ! jurisdiction & au?ority ( ! applicable paym5t /ableco9 regulator to issue any notice or ord] & proce$ "u ?is section aga9/ any su* p>ty1 if su* notice or ord] is s]v$ be=e ! end ( ! #f-ye> p]iod beg9n+ on ! date su* p>ty ceas$ to be an in/itution-affiliat$ p>ty ) respect to ! paym5t /ableco9 issu]4 7s7 ,ex]cise ( au?ority 7#a7 ,9 g5]al ,9 ex]cis+ au?ority "u ?is section ) respect to a depository in/itution t issues a paym5t /ableco9 "u section #g ( ?is ,act1 ! ,comptroll] or ,/ate bank sup]visor1 z applicable1 & ! ,bo>d %all endeavor to act jo9tly :5ev] possible4 7#b7 ,consultation 7,a7 ,initial consultation requir$ ,prior to op5+ an inve/igation1 beg9n+ ! process ( an en=cem5t action or ex]cis+ o!r au?ority "u ?is section1 ! applicable paym5t /ableco9 regulator %all provide notice & consult ) ! o!r applicable regulator relat+ to ! necessity & scope ( ! action4 7,b7 ,ex]cise ( au?ority ,aft] an initial consultation "u ?is p>agraph1 ! applicable paym5t /ableco9 regulator may ex]cise au?ority indep5d5tly "u ?is section1 b %all keep ! o!r applicable regulator reasonably in=m$ ab\t ! progress ( ! action & %all provide n less ?an #g days' prior notice ( ! tim+ & scope ( ! f9al action4 #ab4 ,int]op]ability /&>ds ,! ,bo>d1 9 consultation ) ! ,comptroll]1 ,/ate bank sup]visors1 ! ,national ,in/itute ( ,/&>ds & ,te*nology & o!r relevant /&>d sett+ organizations1 %all assess &1 if necess>y1 may1 pursuant to section #eec ( title #e1 ,unit$ ,/ates ,code1 & 9 a mann] consi/5t ) ! utilization ( cons5sus te*nical /&>ds "u section #ab7;d7 ( ! ,national ,te*nology ,transf] & ,advancem5t ,act ( #aiie 7#ae ,u4,s4,c4 #bgb note71 prescribe /&>ds = paym5t /ableco9 issu]s & paym5t /ableco9 s]vice provid]s to promote compatibility & int]op]ability among paym5t /ableco9 sy/ems & betwe5 paym5t /ableco9 sy/ems & o!r paym5t sy/ems1 includ+ m&atory or m9imum te*nical or legal specifications t enable p>ticipants 9 "o paym5t sy/em to cle> & settle paym5ts across paym5t sy/ems )\t p>ticipat+ directly 9 multiple paym5t sy/ems4 #ac4 ,res]vation ( au?ority 7a7 ,limitation ( au?ority ,no?+ 9 ?is ,act %all limit ! au?ority ( ! ,bo>d1 ,comptroll]1 ,/ate bank sup]visors1 ! ,secret>y ( ! ,treasury1 ! ,bureau ( ,consum] ,f9ancial ,protection1 ! ,securities & ,ex*ange ,commission1 or ! ,commodity ,futures ,trad+ ,commission "u any provision ( law ) respect to any p]son subject to ?is ,act4 7b7 ,effect on ,/ate laws ,! provisions ( ?is ,act & rules issu$ pursuant to ?is ,act %all n preempt a law ( a ,/ate except to ! ext5t su* law conflicts ) ! provisions ( ?is ,act1 & !n only to ! ext5t ( su* conflict4 7c7 ,antitru/ sav+s clause ,no?+ 9 ?is ,act %all be con/ru$ to modify1 impair1 or sup]s$e ! op]ation ( any ( ! ,f$]al antitru/ laws1 z def9$ 9 subsection 7a7 ( ! fir/ section ( ! ,clayton ,act 7#ae ,u4,s4,c4 #ab7;a77 or /atutes proscrib+ unfair or deceptive acts or practices1 z def9$ 9 section #e7;a77#d7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#d774 7d7 ,insur$ depository in/itution sav+s clause ,no?+ 9 ?is ,act %all be con/ru$ to limit ! au?ority ( an insur$ depository in/itution 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 to engage 9 activities p]missible pursuant to applicable ,/ate & ,f$]al law1 includ+ accept+ or receiv+ deposits & issu+ crypto assets t repres5t1 & h ! same legal /&+ z1 deposits1 or to limit ! au?ority ( ! ,f$]al bank+ ag5cies to int]pret or e/abli% limitations & conditions on su* activities4 #ad4 ,acc\nt+ treatm5t ( cu/odial assets ,crypto assets prop]ly held 9 a cu/odial acc\nt %all n be consid]$ assets or liabilities ( ! cu/odian = any purpose & %all be ma9ta9$ on an (f-balance %eet basis1 includ+ = ! purpose ( acc\nt+ treatm5t = ! cu/odian1 not)/&+ ! =m 9 :i* ! assets are ma9ta9$1 & = ! purposes ( ! capital calculations ( depository in/itutions & all o!r f9ancial in/itutions4 #ae4 ,effective date2 implem5tation & rules 7a7 ,effective date ,?is ,act %all take effect on ! e>li] (-- 7#a7 ! date t is #edj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 ! date t is #ij days aft] ! date on :i* ! ,bo>d-- 7,a7 issues f9al rules implem5t+ ?is ,act2 & 7,b7 notifies ,congress & ! public t f9al rules h be5 issu$4 7b7 ,transitional provisions = exi/+ non-,depository in/itutions 7#a7 ,application priority ,an application = au?orization "u ?is ,act ( a ,/ate non-depository tru/ company1 or ! hold] ( a ,/ate lic5se t only p]sons engag$ 9 crypto asset activities may obta91 :i* 0 *>t]$ or issu$ "u ! laws ( a ,/ate & grant$ p]mission by its regulator to issue paym5t /ableco9s be=e ,may #a1 #bjbd1 %all be approv$ by ! ,bo>d be=e an application f ano!r entity t is fil$ on or aft] ,may #a1 #bjbd4 7#b7 ,approval ,an application describ$ 9 p>agraph 7#a71 %all be approv$ unless ! ,bo>d f9ds1 by unanim\s vote ( all memb]s1 t ! non-depository in/itution is unlikely to come into compliance ) ! requirem5ts ( section #f7;b7 n lat] ?an #a ye> aft] ! effective date ( ?is ,act "u subsection 7a74 7#c7 ,issuance p]mitt$ ,a ,/ate non-depository tru/ company or hold] ( a ,/ate lic5se to :i* ?is subsection applies may cont9ue ) issuance1 r$emption & o!r simil> activities relat+ to a paym5t /ableco9 "u ?is subsection "u ?is subsection until its application is approv$ or d5i$ by ! ,bo>d4 7c7 ,transitional provisions = exi/+ depository in/itutions 7#a7 ,application priority ,! application ( a depository in/itution = au?orization to become a national paym5t /ableco9 issu] "u section #g ( ?is ,act1 :i* 0 *>t]$ & grant$ p]mission by its regulator to issue paym5t /ableco9s be=e ,may #a1 #bjbd1 %all be decid$ ^u by ! ,bo>d be=e any o!r application = au?orization to become a national paym5t /ableco9 issu] :i* is fil$ on or aft] ,may #a1 #bjbd4 7#b7 ,deem$ approv$ ,! application describ$ 9 p>agraph 7#a7 %all be deem$ approv$ unless ! ,bo>d f9ds1 by unanim\s vote ( all memb]s1 t ! depository in/itution is unlikely to come into compliance ) ! requirem5ts ( section #g7;b7 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act4 7#c7 ,issuance p]mitt$ ,a depository in/itution to :i* ?is subsection applies may cont9ue ) issuance1 r$emption & o!r simil> activities relat+ to a paym5t /ableco9 "u ?is subsection until its application is approv$ or d5i$ by ! ,bo>d4 7d7 ,f9d+s relat+ to c]ta9 activities ,congress f9ds ! foll[+3 7#a7 ,9 det]m9+ :e!r an activity is f9ancial 9 nature "u ! ,bank ,hold+ ,company ,act 7#ab ,u4,s4,c4 #ahda et seq471 ,congress has requir$ ! ,bo>d "u su* ,act to-- 7,a7 consid] *anges or reasonably expect$ *anges 9 ! m>ketplace 9 :i* f9ancial companies compete2 7,b7 consid] *anges or reasonably expect$ *anges 9 ! te*nology = deliv]+ f9ancial s]vices2 & 7,c7 consid] ! ability ( f9ancial companies to compete effectively & effici5tly to deliv] in=mation & s]vices t are f9ancial 9 nature ?r\gh ! use ( te*nological means1 includ+ any application necess>y to protect ! security or efficacy ( sy/ems = ! transmission ( data or f9ancial transactions4 7#b7 ,l5d+1 ex*ang+1 transf]r+1 inve/+ = o!rs1 & safegu>d+ money & crypto assets1 & activities incid5tal to ^! functions1 are analog\s to simil> activities p]missible = banks "u ! ,bank ,hold+ ,company ,act 7#ab ,u4,s4,c4 #ahda et seq474 7#c7 ,! activities describ$ 9 p>agraph 7#b7 %all be deem$ f9ancial 9 nature1 or incid5tal to a f9ancial activity1 "u ! ,bank ,hold+ ,company ,act 7#ab ,u4,s4,c4 #ahda et seq47 = purposes ( section #e ( ?is ,act4 7e7 ,report on rulemak+ /atus ,n lat] ?an #ahj days aft] ! effective date ( ?is ,act "u subsection 7a71 ! ,bo>d %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a /atus update on ! developm5t ( ! rulemak+ "u ?is ,act4