Page:United States Statutes at Large Volume 49 Part 1.djvu/740

 74TH CONGRESS. SESS. I. CH. 614 . AUGUST 23, 1935 . depo sitor s, an d it shall pay t o dep ositor s and othe r cred itors the net amounts available for distribution to them. With res pect to any such closed bank, the Corporation as such receiver shall have all the rights, powers, and privileges now possessed by or hereafter granted by law to a receiver of an insolvent national bank. "(5) Whenever any insured State bank (except a District bank) shall have been closed by action of its board of directors or by the authority having supervision of such bank, as the case may be, on account of inability to meet the demands of its depositors, the Corporation shall accept appointment as receiver thereof, if such appointment is tendered by the authority having supervision of such bank and is authorized or permitted by State law . With respect to any such insured State bank, the Corporation as such receiver shall possess all the rights, powers and privileges granted by State law to a receiver of a State bank . "(6) Whenever an insured bank shall have been closed on account of inabili ty to meet the de mands of its depo sitors, payment o f the insured deposits in such bank shall be made by the Corporation as soon as possible, subject to the provisions of paragraph (7) of this subsection, either (A) by making available to each depositor a transf erred depo sit in a new bank i n the same communit y or in ano ther insu red bank in an am ount equ al to the ins ured depo sit of such depos itor and subject to withdrawal on demand, or (B) in such other manner as the board of directors may prescribe : Provi ded, That the Corporation, in its discretion, may require proof of claims to be filed before paying the insured deposits, and that in any case where the Corporation is not satisfied as to the validity of a claim for an insured deposit, it may require the final determination of a court of competent jurisdiction before paying such claim. "(7 ) In the case of a closed national bank or District bank, the Corporation, upon the payment of any depositor as provided in para- graph (6) of this subsection, shall be subrogated to all rights of the depositor against the closed bank to the extent of such payment . In the case of any other closed insured bank, the Corporation shall not make any payment to any depositor until the right of the Corpo- ration to be subrogated to the rights of such depositor on the same basis as p rovided in the ca se of a closed na tional bank under this section shall have been recognized either by express provision of State law, by allowance of claims by the authority having super- vision of such bank, by assignment of claims by depositors, or by any other effective method . In the case of any closed insured bank, such subrogation shall include the right on the part of the Corpora- tion to receive the same dividends from the proceeds of the assets of such closed bank and recoveries on account of stockholders' liability as would have been payable to the depositor on a claim for the insured de posit, but such d epositor shall re tain his claim fo r any uninsured portion of his deposit : Provided, That the rights o f depositors and other creditors of any State bank shall be determined in accordance with the applicable provisions of State law. "(8 ) As soon as possible after the closing of an insured bank, the Corporation, if it finds that it is advi sable and in the interest of the depositors of the closed bank or the public, shall organize a new national bank to assume the insured deposits of such closed bank and otherwise to perform temporarily the functions hereinafter provided for . The new bank shall have its place of business in the same community as the closed bank . "(9) The ar ticles of association and the organization certificate of the new bank shall be executed by representatives designated by the Corporation. No capital stock need be paid in by the Corporation. R ights as r eceiver. Closed insured State bank ; acceptance of ap- pointment as receiver. Rights, e tc. Payment of insured depo sits. Methods. P rovis o. P roof of cl aims. 695 Closed nat ion al or Distr ict b anks ; Corpo- ration s ubr oga ted to rights of pa id deposi- tors. Other clo sed insured banks. Right of Corporation to rece ive divid ends. Proviso. State laws to deter- mine cred itors ' rig hts. New nati onal b anks orga nizat ion . Assumpt ion of in- sured deposits of closed bank . Place of business . Articles of association and organization cer- tificate; execution. Capital stock.