Page:United States Statutes at Large Volume 103 Part 1.djvu/470

 103 STAT. 442 PUBLIC LAW 101-73 —AUG. 9, 1989 ' and the sale of the bank, or of control of the bank, as a going concern;". SEC. 802. APPOINTMENT OF CONSERVATOR Section 203 of the Bank Conservation Act (12 U.S.C. 203) is amended to read as follows: "SEC. 203. APPOINTMENT OF CONSERVATOR. "(a) APPOINTMENT.— The Comptroller of the Currency may, with- out notice or prior hearing, appoint a conservator, which may be the Federal Deposit Insurance Corporation, to take possession and con- trol of a bank whenever the Comptroller determines that one or more of the following circumstances exist: "(1) any one or more of the conditions for appointment of a receiver for the bank specified in the first section of the Act of June 30, 1876 (12 U.S.C. 191) are present; "(2) the bank is not likely to be able to meet the demands of its depositors or pay its obligations in the normal course of business; "(3) the bank is in an unsafe or unsound condition to transact business, including having substantially insufficient capital or otherwise; "(4)(A) the bank has incurred or is likely to incur losses that will deplete all or substantially all of its capital, and "(B) there is no reasonable prospect for the bank's capital to be replenished without Federal assistance; "(5) there is a violation or violations of laws, rules, or regula- tions, or any unsafe or unsound practice or condition which is likely to cause insolvency or substantial dissipation of assets or earnings, or is likely to weaken the bank's condition or other- wise seriously prejudice the interests of its depositors; "(6) there is concealment of books, papers, records, or assets of the bank, or refusal to submit books, papers, records, or affairs of the bank for inspection to any examiner or to any lawful agent of the Comptroller; \ "(7) there is a willful or continuing violation of an order enforceable against the bank under section 8(i) of the Federal Deposit Insurance Act; or (8) the bank's board of directors consists of fewer than 5 members. • "(b) JUDICIAL REVIEW.— "(1) IN GENERAL. —Not later than 20 days after the initial appointment of a conservator pursuant to this section, the bank may bring an action in the United States district court for the judicial district in which the home office of such bank is located, or in the United States District Court for the District of Colum- bia, for an order requiring the Comptroller to terminate the ^ appointment of the conservator, and the court, upon the merits, shall dismiss such action or shall direct the Comptroller to terminate the appointment of such conservator. The Comptrol- ler's decision to appoint a conservator pursuant to this section shall be set aside only if the court finds that such decision was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. "(2) STAY.— The conservator may request that any judicial action or proceeding to which the conservator or the bank is or may become a party be stayed for a period of up to 45 days after

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