Page:United States Statutes at Large Volume 124.djvu/1485

 124 STAT. 1459 PUBLIC LAW 111–203—JULY 21, 2010 SEC. 206. MANDATORY TERMS AND CONDITIONS FOR ALL ORDERLY LIQUIDATION ACTIONS. In taking action under this title, the Corporation shall— (1) determine that such action is necessary for purposes of the financial stability of the United States, and not for the purpose of preserving the covered financial company; (2) ensure that the shareholders of a covered financial company do not receive payment until after all other claims and the Fund are fully paid; (3) ensure that unsecured creditors bear losses in accord- ance with the priority of claim provisions in section 210; (4) ensure that management responsible for the failed condition of the covered financial company is removed (if such management has not already been removed at the time at which the Corporation is appointed receiver); (5) ensure that the members of the board of directors (or body performing similar functions) responsible for the failed condition of the covered financial company are removed, if such members have not already been removed at the time the Corporation is appointed as receiver; and (6) not take an equity interest in or become a shareholder of any covered financial company or any covered subsidiary. SEC. 207. DIRECTORS NOT LIABLE FOR ACQUIESCING IN APPOINT- MENT OF RECEIVER. The members of the board of directors (or body performing similar functions) of a covered financial company shall not be liable to the shareholders or creditors thereof for acquiescing in or con- senting in good faith to the appointment of the Corporation as receiver for the covered financial company under section 203. SEC. 208. DISMISSAL AND EXCLUSION OF OTHER ACTIONS. (a) IN GENERAL.—Ef fective as of the date of the appointment of the Corporation as receiver for the covered financial company under section 202 or the appointment of SIPC as trustee for a covered broker or dealer under section 205, as applicable, any case or proceeding commenced with respect to the covered financial company under the Bankruptcy Code or the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) shall be dismissed, upon notice to the bankruptcy court (with respect to a case com- menced under the Bankruptcy Code), and upon notice to SIPC (with respect to a covered broker or dealer) and no such case or proceeding may be commenced with respect to a covered financial company at any time while the orderly liquidation is pending. (b) REVESTING OF ASSETS.—Ef fective as of the date of appoint- ment of the Corporation as receiver, the assets of a covered financial company shall, to the extent they have vested in any entity other than the covered financial company as a result of any case or proceeding commenced with respect to the covered financial com- pany under the Bankruptcy Code, the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), or any similar provision of State liquidation or insolvency law applicable to the covered financial company, revest in the covered financial company. (c) LIMITATION.—Notwithstanding subsections (a) and (b), any order entered or other relief granted by a bankruptcy court prior to the date of appointment of the Corporation as receiver shall Effective dates. 12 USC 5388. 12 USC 5387. 12 USC 5386.