(a) In general
In this subchapter, the following definitions shall apply:
(1) Administrative expenses of the receiver
Terms Used In 12 USC 5381
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
The term “administrative expenses of the receiver” includes–
(A) the actual, necessary costs and expenses incurred by the Corporation as receiver for a covered financial company in liquidating a covered financial company; and
(B) any obligations that the Corporation as receiver for a covered financial company determines are necessary and appropriate to facilitate the smooth and orderly liquidation of the covered financial company.
(2) Bankruptcy Code
The term “Bankruptcy Code” means title 11.
(3) Bridge financial company
The term “bridge financial company” means a new financial company organized by the Corporation in accordance with section 5390(h) of this title for the purpose of resolving a covered financial company.
The term “claim” means any right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.
The term “company” has the same meaning as in section 1841(b) of this title, except that such term includes any company described in paragraph (11), the majority of the securities of which are owned by the United States or any State.
The term “Court” means the United States District Court for the District of Columbia, unless the context otherwise requires.
(7) Covered broker or dealer
The term “covered broker or dealer” means a covered financial company that is a broker or dealer that–
(A) is registered with the Commission under section 78o(b) of title 15; and
(B) is a member of SIPC.
(8) Covered financial company
The term “covered financial company”–
(A) means a financial company for which a determination has been made under section 5383(b) of this title; and
(B) does not include an insured depository institution.
(9) Covered subsidiary
The term “covered subsidiary” means a subsidiary of a covered financial company, other than–
(A) an insured depository institution;
(B) an insurance company; or
(C) a covered broker or dealer.
(10) Definitions relating to covered brokers and dealers
The terms “customer”, “customer name securities”, “customer property”, and “net equity” in the context of a covered broker or dealer, have the same meanings as in section 78lll of title 15.
(11) Financial company
The term “financial company” means any company that–
(A) is incorporated or organized under any provision of Federal law or the laws of any State;
(i) a bank holding company, as defined in section 1841(a) of this title;
(ii) a nonbank financial company supervised by the Board of Governors;
(iii) any company that is predominantly engaged in activities that the Board of Governors has determined are financial in nature or incidental thereto for purposes of section 1843(k) of this title other than a company described in clause (i) or (ii); or
(iv) any subsidiary of any company described in any of clauses (i) through (iii) that is predominantly engaged in activities that the Board of Governors has determined are financial in nature or incidental thereto for purposes of section 1843(k) of this title (other than a subsidiary that is an insured depository institution or an insurance company); and
(C) is not a Farm Credit System institution chartered under and subject to the provisions of the Farm Credit Act of 1971, as amended (12 U.S.C. 2001 et seq.), a governmental entity, or a regulated entity, as defined under section 4502(20) of this title.
The term “Fund” means the Orderly Liquidation Fund established under section 5390(n) of this title.
(13) Insurance company
The term “insurance company” means any entity that is–
(A) engaged in the business of insurance;
(B) subject to regulation by a State insurance regulator; and
(C) covered by a State law that is designed to specifically deal with the rehabilitation, liquidation, or insolvency of an insurance company.
(14) Nonbank financial company
The term “nonbank financial company” has the same meaning as in section 5311(a)(4)(C) of this title.
(15) Nonbank financial company supervised by the Board of Governors
The term “nonbank financial company supervised by the Board of Governors” has the same meaning as in section 5311(a)(4)(D) of this title.
The term “SIPC” means the Securities Investor Protection Corporation.
(b) Definitional criteria
For purpose of the definition of the term “financial company” under subsection (a)(11), no company shall be deemed to be predominantly engaged in activities that the Board of Governors has determined are financial in nature or incidental thereto for purposes of section 1843(k) of this title, if the consolidated revenues of such company from such activities constitute less than 85 percent of the total consolidated revenues of such company, as the Corporation, in consultation with the Secretary, shall establish by regulation. In determining whether a company is a financial company under this subchapter, the consolidated revenues derived from the ownership or control of a depository institution shall be included.