Page:United States Statutes at Large Volume 103 Part 1.djvu/571

 PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 543 any such contract, is subordinated to the claims of general unsecured creditors of such credit union); "(iii) all claims of such credit union against such person or any affiliate of such person under any such contract; and "(iv) all property securing any claim described in clause (ii) or (iii) under any such contract; or "(B) transfer none of the financial contracts, claims, or property referred to in subparagraph (A) (with respect to such person and any affiliate of such person). " (10) NOTIFICATION OP TRANSFER. — "(A) IN GENERAL.— I f^ "(i) the conservator or liquidating agent for an in- sured credit union in default makes any transfer of the assets and liabilities of such credit union; and "(ii) the transfer includes any qualified financial con- tract, the conservator or liquidating agent shall use such con- servator's or liquidating agent's best efforts to notify any person who is a party to any such contract of such transfer by 12:00, noon (local time), on the business day following such transfer. "(B) BUSINESS DAY DEFINED.—For purposes of this para- graph, the term 'business day' means any day other than any Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed. "(11) CERTAIN SECURITY INTERESTS NOT AVOIDABLE.— No provi- sion of this subsection shall be construed as permitting the avoidance of any legally enforceable or perfected security in- terest in any of the assete of any credit union except where such an interest is taken in contemplation of the credit union's insolvency or with the intent to hinder, delay, or defraud the credit union or the creditors of such credit union. " (12) AUTHORITY TO ENFORCE CONTRACTS. — "(A) IN GENERAL.—The conservator or liquidating agent may enforce any contract, other than a director's or offi- cer s liability insurance contract or a credit union bond, entered into by the credit union notwithstanding any provi- sion of the contract providing for termination, default, acceleration, or exercise of rights upon, or solely by reason of, insolvency or the appointment of a conservator or liq- uidating agent. "(B) CERTAIN RIGHTS NOT AFFECTED. — No provision of this paragraph may be construed as impairing or affecting any right of the conservator or liquidating gigent to enforce or recover under a directors or officers liability insurance contract or credit union bond under other applicable law. " (13) EXCEPTION FOR FEDERAL RESERVE AND FEDERAL HOME LOAN BANKS. —No provision of this subsection shall apply with respect to— "(A) any extension of credit from any Federal home loan bank or Federal Reserve bank to any insured depository institution; or "(B) any security interest in the assets of the institution securing any such extension of credit. ' (d) PAYMENT OF INSURED DEPOSITS. —

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