Page:United States Statutes at Large Volume 48 Part 1.djvu/201

 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933. 175 authorized or permitted by State law. Thereupon the Corporation organization of new shall organize a new national bank, in accordance with the provisions bank. of this subsection, to assume the insured deposit liabilities of such Purpose. closed State member bank, to receive new deposits and otherwise to perform temporarily the functions provided for in this subsection. Upon satis facto ry r ecogn ition of the r ight of th e Co rpora tion to receive d ividends on the sa me basis as in the case of a closed national bank under this subsection, such recognition being accorded by State law, by allowance of claims by the appropriate State authority, b y assignment of claims by depositors, or by any other effective method, the Corporation shall make available to such new national bank, in the manner prescribed by this subsection, an amount equal to the insured deposit liabilities of such closed State member bank ; and the bank anagement of new Corporation and such new national bank shall perform all of the functions and duties and shall have all the rights and privileges with respect to such State member bank and the depositors thereof which are presc ribed by this subs ection wi th respec t to clos ed nation al banks holding class A stock in the Corporation : Provided, That the rights of depositors and other creditors of such State member bank shall be deter mined in a ccor dance with the appl icabl e pro visi ons o f Sta te law : And provided further, That, with respect to such State member Powers,etc .,ofCorpo- bank, the Corporation shall possess the powers and privileges pro- ratio n `order stat e law. vided by State law with respect to a receiver of such State member bank, except in so far as the same are in conflict with the provisions of this s ubsection. " Whenever any State member bank which is a class A stockholder of the Corpor ation shall have b een cl osed by actio n of i ts boa rd of directors or by the appropriate State authority, as the case may be, on account of inability to meet the demands of its depositors, and the applicable State law does not permit the appointment of the Corporation as receiver of such bank, the Corporation shall organize a new national bank, in accordance with the provisions of this sub- Functions . section, to assume the insu red depos it liabil ities of such clos ed State member bank, to rec eive n ew dep osits, and ot herwis e to p erform tem- porarily the functions provided for in this subsection . Upon satis- factory recognition of the right of the Corporation to receive divi- dends on the same basis as in the case of a closed national bank under this subsection, such recognition being accorded by State law, by allowance of claims by the appropriate State authority, by assign- ment o f clai ms by deposi tors, or by any oth er eff ective metho d, the Corporation shall make available to such new bank, in accordance with the provisions of this subsection, the amount of insured deposit liabilities as to which such recognition has been accorded ; and such Assumption of, in- new bank shall assume such insured deposit liabilities and shall in sureddeposit liabilities. other respects comply with the provisions of this subsection respect- ing new banks organized to assume insured deposit liabilities of closed national banks. In so far as possible in view of the applicable provisi ons of State law, the Co rporat ion sha ll pro ceed w ith re spect to the receiver of such closed bank and with respect to the new bank organized to assume its insured deposit liabilities in the manner prescri bed by this subsec tion w ith re spect t o clos ed nat ional banks and new banks organized to assume their insured deposit liabilities except that the Corporation shall have none of the powers, duties, or res ponsib ilitie s of a recei ver wi th resp ect to the w inding up of the affairs of such closed State member bank. The Corporation, in its discretion, however, may purchase and liquidate any or all of the assets of such bank. F unds to c over in- su red d epos it li abili ties made available by Cor- poration when right to dividends recognized . Provisos. De termmation o f right s of depositors, etc. Organization of new bank, when appoint- ment of Corporation as receiver unlawful. Fu nds to be made a vaila ble when right of Corporation to receive dividends recognized.