Page:United States Statutes at Large Volume 103 Part 1.djvu/262

 103 STAT. 234 PUBLIC LAW 101-73—AUG. 9, 1989 "(vii) the utilization of institutions currently estab- lished in mortgage related asset market activities. "(e) PROVISIONS RELATING TO CONTRACTS ENTERED INTO BEFORE APPOINTMENT OF CONSERVATOR OR RECEIVER,— "(1) AUTHORITY TO REPUDIATE CONTRACTS.— In addition to any other rights a conservator or receiver may have, the conservator or receiver for any insured depository institution may disaffirm or repudiate any contract or lease— "(A) to which such institution is a party; "(B) the performance of which the conservator or re- ceiver, in the conservator's or receiver's discretion, deter- mines to be burdensome; and " "(C) the disaffirmance or repudiation of which the con- \ servator or receiver determines, in the conservator's or receiver's discretion, will promote the orderly administra- tion of the institution's affairs. "(2) TIMING OF REPUDIATION. —The conservator or receiver / appointed for any insured depository institution in accordance with subsection (c) shall determine whether or not to exercise the rights of repudiation under this subsection within a reason- able period following such appointment. "(3) CLAIMS FOR DAMAGES FOR REPUDIATION. — "(A) IN GENERAL.— Except as otherwise provided in subparagraph (C) and paragraphs (4), (5), and (6), the liabil- ity of the conservator or receiver for the disaffirmance or repudiation of any contract pursuant to paragraph (1) shall be- "(i) limited to actual direct compensatory damages; and "(ii) determined as of— "(I) the date of the appointment of the conserva- tor or receiver; or "(II) in the case of any contract or agreement referred to in paragraph (8), the date of the disaffirmance or repudiation of such contract or .- . agreement. "(B) No LIABiuTY FOR OTHER DAMAGES. —For purposes of subparagraph (A), the term 'actual direct compensatory damages' does not include— "(i) punitive or exemplary damages; "(ii) damages for lost profits or opportunity; or "(iii) damages for pain and suffering. ,.., "(C) MEASURE OP DAMAGES FOR REPUDIATION OF FINANCIAL CONTRACTS. —In the case of any qualified financial contract . or agreement to which paragraph (8) applies, compensatory damages shall be— "(i) deemed to include normal and reasonable costs of cover or other reasonable measures of damages utilized in the industries for such contract and agreement claims; and "(ii) paid in accordance with this subsection and subsection (k) except as otherwise specifically provided in this section. "(4) LEASES UNDER WHICH THE INSTITUTION IS THE LESSEE. — ...., "(A) IN GENERAL. —I f the conservator or receiver dis- affirms or repudiates a lease under which the insured depository institution was the lessee, the conservator or

�