Sub Chapter XIV of Title 12 of the US Code deals with the US Bank Conservation Act.
The term bank means “any national banking association or any other financial institution chartered or licensed under Federal law and subject to the supervision of the Comptroller of the Currency”.
The term voluntary dissolution and liquidation means “a transaction pursuant to section 181 of this title that involves the assumption of the bank’s insured deposit liabilities and the sale of the bank or of control of the bank, as a going concern”.
The Comptroller of the Currency has the authority to appoint a conservator like the Federal Deposit Insurance Corporation to the possession and control of a bank whenever he may deem fit to in accordance to the provisions of section 11(c)(5) of the Federal Deposit Insurance Act.
The Comptroller of the Currency is authorized to scrutinize and supervise the bank in conservatorship for a period of time when the bank continues to operate as a going concern.
A conservator enjoys all the powers of the shareholders, directors, and officers of the bank and even can run the bank in its own name unless it is restricted specifically by the Comptroller of the Currency.
