real, personal, and mixed, tangible and intangible, of any nature;

(1) May, with the approval of the Board or the Director, or on terms and conditions approved by the Board or the Director, surrender, abandon, and release any choses in action, or other assets or property of any nature, whether the subject of pending litigation or not, and reject or repudiate any lease or contract which he considers burdensome;

(m) May, with the approval of the Board, or on terms and conditions approved by the Board, settle, compromise, or obtain the release of, for cash or other considerations, claims and demands against such association or the conservator;

(n) May, with the approval of the Board, or on terms and conditions approved by the Board, settle, compromise, or release, for cash or other considerations, claims and demands in favor of the association or the conservator;

(0) May, with the approval of the Board or the Director, borrow money in any amount and from any source and in any manner, and execute, acknowledge and deliver notes, certificates, and other evidence of indebtedness therefor and secure the repayment thereof by the mortgage, pledge, assignment in trust or hypothecation of any or all of the property, whether real, personal, or mixed, of such association, and such borrowing may be for any purpose, including, without any limitation on the generality of the foregoing, protecting or preserving the assets in his possession, declaring and paying dividends to members and creditors, providing for the expense of administration, or aiding in the reopening or reorganization of such association;

(p) May pay out of the assets of the conservatorship all costs and expenses of the conservatorship and all costs of carrying out or exercising his rights, powers, privileges and duties as conservator, all as determined by him, except as otherwise provided herein; and

(q) May do such things, and have such rights, powers, privileges, immunities, and duties, whether or not otherwise granted in these rules and regulations, as shall be authorized, directed, conferred, or imposed from time to time in specific cases by order of the Board or by amendment of these rules and

regulations.

For the purposes of this section, assets and property, without limitation on the

generality thereof and including any mortgage, deed of trust, chose in action, bond, note, contract, judgment or decree, share or certificate of share of stock, or debt of the association, shall include any such assets ог property of the

conservator.

[23 FR. 9907, Dec. 23, 1958, as amended at 32 FR. 6770, May 3, 1967] § 548.3 Creditors.

The conservator may, after certification by the conservator to the Board that the assets of the association will be sufficient to meet all creditor obligations and that the condition of the association justifies, out of the assets in his possession:

(a) With the approval of the Director, make disbursements which the association was obligated to make on loan commitments and other valid contracts;

(b) With the approval of the Director, pay salaries due officers or employees of the association, permit the payment of outstanding checks given in connection with valid creditor obligations, and pay valid creditor obligations, or, in the absence of such certification or approval, may, out of the assets of the association in his possession, pay creditor obligations and make disbursements which the association was obligated to make on loan commitments, to the extent determined by the Director to be compatible with the condition of the association and the proper conduct of its affairs.

§ 548.4 Share interests.

The conservator shall not accept any payments on or purchases, or make any repurchases, of share accounts, unless the Board shall otherwise direct by order, which order, or orders, shall be posted in a conspicuous place in the principal office of the conservator for conducting the affairs of the association, and such payments or purchases shall be accepted, or such repurchases made, only to the extent and in the manner, and with segregation to the extent, that the same, if any, may be directed in such order or orders.

§ 548.5 Inventory; examinations and audits, and costs thereof; accounting practices.

(a) Inventory. As soon as practicable after taking possession, the conservator shall make an inventory of the assets of such association as of the date of such taking possession, showing the value as carried on the books of the association,

and the security therefor, if any, in whatever form the same shall exist, with a brief description of each such asset and such security. Such assets may be listed in such groups or classes as shall, to the satisfaction of the Director, afford full information as to their character and book value, and the inventory shall include a record of the creditor and share liabilities of the association. Two copies of such inventory shall promptly be filed with the Secretary to the Board, one copy with the Director, and one copy shall during the conservatorship be retained in the principal office of the assodiation.

(b) Examinations and audits, and costs thereof. Each Federal association for which a conservator has been appointed may be examined and/or audited (with appraisals when deemed advisable by the Board) by the Office of Examinations and Supervision of the Board as directed by the Board. The cost, as determined by the Board, of examinations including office analysis thereof, audits, and any appraisals made in connection therewith, shall be paid from the assets of the association unless otherwise ordered by the Board.

(c) Accounting practices; reports. The conservator shall follow such accounting practices as may, from time to time, be prescribed by the Director. The conservator shall make such reports as may be required by the Board or the Director. [23 FR. 9907, Dec. 23, 1958, as amended at 32 F.R. 6770, May 3, 1967]

§ 548.6 Final discharge and release of

conservator.

(a) Final report. At such time as the conservator be relieved of his duties, the conservator shall file with the Board a detailed report in form satisfactory to the Board.

(b) Final discharge. Unless otherwise directed by the Board, upon the completion of the duties of the conservator or at such time as the conservator shall be otherwise relieved of his duties an examination and audit may be directed by the Board in connection with the report of the conservator hereinbefore required. The accounts of the conservator shall be approved or disapproved by the Board, and, if approved, the conservator shall thereupon be given a complete and final release.

§ 548.7 Inspection of reports.

All inventories, statements and reports of the conservator shall be in at least

(b) Notify, by written notice served personally or by registered mail or telegraph, all banks, trust companies, and all other individuals, partnerships, corporations and associations known to it to be holding or in possession of any assets of such associations; and

(c) File with the Secretary to the Board a statement (1) that it has taken possession of such Federal association, and (2) of the time of such taking of possession; and such statement shall be conclusive evidence of such taking of possession and of the time of such taking of possession.

[23 FR. 9908, Dec. 23, 1958, as amended at 32 FR. 6770, May 3, 1967]

§ 549.3 Powers and duties of receiver.

The receiver, after posting notice pursuant to § 549.1, shall, in its name, in the name of the association, in the name of both, or otherwise, collect all obligations and money due such association, and may, in its name, in the name of the association, in the name of both, or otherwise:

(a) Do all things desirable or expedient in its discretion to carry on the business of such association to an extent consistent with its appointment and to preserve and conserve the assets and property of every nature of such association, but shall not declare, credit, pay or distribute dividends on its savings accounts except with the approval of the Board;

(b) Exercise all the rights and powers of such association, including, without any limitation on the generality of the foregoing, any rights and powers under any mortgage, deed of trust, chose in action, option, collateral note, contract, judgment or decree, share or certificate of share of stock, or instrument of any nature;

(c) Pay off and discharge any taxes, assessments, liens, claims, or charges of any nature against the association or the receiver or any asset or property of any nature of such association;

(d) Pay out and expend such sums as it shall deem necessary or advisable for or in connection with the preservation, maintenance, conservation, protection, remodeling, repair, rehabilitation, or improvement of any asset or property of any nature of such association;

(e) Pay out and expend such sums as it shall deem necessary or advisable for or in connection with the preservation, maintenance, conservation, or protection

of, or pay off and discharge any taxes, assessments, liens, claims, or charges of any nature against, any asset or property of any nature on which the association or the receiver has a lien by way of mortgage, deed of trust, pledge or otherwise, or in which the association or receiver has an interest of value of any nature;

(f) Institute, prosecute, maintain, defend, intervene, and otherwise participate in any and all actions, suits, or other legal proceedings by and against the receiver or association or in which the receiver, the association, or its creditors or members, or any of them, shall have an interest, and in every way to represent such association, its members and creditors;

(g) Employ any attorney or attorneys designated by, or acceptable to, the General Counsel of the Federal Home Loan Bank Board in connection with litigation or otherwise to give legal advice and assistance, for the receivership generally or in particular instances, and pay retainers and compensation of such attorney or attorneys, together with all expenses, including, but not limited to, the costs and expenses of any litigation, as approved by said General Counsel, out of the assets of the association;

(h) Execute, acknowledge, and deliver any and all deeds, contracts, leases, assignments, bills of sale, releases, extensions, satisfactions, and other instruments necessary or proper for any purposes, including, without any limitation on the generality of the foregoing, the effectuation or termination of any sale, lease or transfer of real, personal or mixed property, or that shall be necessary or proper to liquidate or carry on the business of such association. Any deed or other instrument executed pursuant to the authority hereby given shall be as valid and effectual for all purposes as if the same had been executed as the act and deed of the association or otherwise, by the officers of such association by authority of its board of directors;

(1) Deposit the moneys and funds in any bank or banks insured by the Federal Deposit Insurance Corporation or in any Federal Home Loan Bank, or any other banks or other depositories approved for such purposes by the Board. All depository bank accounts of the receiver shall be carried as follows: "Federal Savings and Loan Insurance Corporation, Receiver for --Association.";

(j) Sell for cash or on terms, exchange, or otherwise dispose of, in whole or in part, any mortgage, deed of trust, chose in action, bond, note, contract, judgment or decree, share or certificate of share of stock or debt, owing to such association;

(k) Sell for cash or on terms, exchange or otherwise dispose of, in whole or in part, any or all of the assets and property of the association, real, personal, and mixed, tangible and intangible, of any nature;

(1) Surrender, abandon, and release any choses in action, or other assets or property of any nature, whether the subject of pending litigation or not, and reject or repudiate any lease or contract which it considers burdensome;

(m) Settle, compromise, or obtain the release of, for cash or other considerations, claims and demands against such association or the receiver;

(n) Settle, compromise, or release, for cash or other considerations, claims and demands in favor of the association or the receiver;

(0) With the approval of the Board and on terms and conditions approved by the Board, borrow money in any amount and from any source and in any manner, and execute, acknowledge and deliver notes, certificates, and other evidence of indebtedness therefor and secure the repayment thereof by the mortgage, pledge, assignment in trust or hypothecation of any or all of the property, whether real, personal, or mixed, of such association, and such borrowing may be for any purpose, including, without any limitation on the generality of the foregoing, facilitating liquidation, carrying on the business of such assoclation, protecting or preserving the assets in its possession, declaring and paying dividends to members and creditors, providing for the expense of administration and liquidation, or aiding in the reopening or reorganization of such association;

(p) Pay out of the assets of the receivership all costs and expenses of the receivership and all costs of carrying out or exercising its rights, powers, privileges and duties as receiver, all as determined by it, except as otherwise provided in this section; and

(q) Do such things, and have such rights, powers, privileges, immunities, and duties, whether or not otherwise granted in the rules and regulations in this chapter, as shall be authorized. di

rected, conferred, or imposed from time to time in specific cases by order of the Board, or by amendment of the rules and regulations in this chapter. For the purposes of this section, assets and property, without limitation on the generality thereof and including any mortgage, deed of trust, chose in action, bond, note, contract, judgment or decree, share or certificate of share of stock, or debt of the association, shall include any such asset or property of the receiver.

[23 F.R. 9908, Dec. 23, 1958, as amended at 32 FR. 6770, May 3, 1967]

§ 549.4 Creditor claims.

(a) Upon being directed to do so by the Board, the receiver shall promptly publish, in a newspaper printed in the English language and of general circulation in the city or county in which the home office of such Federal association is located, a notice to all creditors of such Federal association to present their claims with proof thereof to such receiver on or before a date specified in such notice. The date specified in such notice shall be at least 90 days after the date of the first publication of such notice (Sundays and holidays included). Such notice shall be similarly published on dates approximately 1 month and 2 months respectively after the date of such first publication. Claims not filed within such period shall be disallowed, except as they may thereafter be approved by the Board for payment in whole or in part out of the assets of said Federal association remaining undistributed at the time of such approval. The receiver shall mail a similar notice to any creditor, shown to be such on the books of the association, at the last address of such creditor as the same shall appear on such books.

(b) Any claim proved to the satisfaction of the receiver shall be allowed by the receiver except as provided in paragraph (a) of this section. The receiver may disallow in whole or in part or reject in whole or in part any creditor claim or claim of security, preference or priority not proved to its satisfaction, and notice of such disallowance or rejection together with the reason therefor shall be served by the receiver upon the claimant. The mailing of notice of such disallowance or rejection to the last known address of any claimant appearing on the books or the proof of claim shall be deemed sufficient for the purposes hereof. Unless such claimant shall within 30 days after the mailing of such notice

(Sundays and holidays included) file with the Board written request for payment regardless of such disallowance or rejection by the receiver, such disallowance or rejection shall be final except as the Board may otherwise determine in its discretion.

(c) Upon the expiration of the time fixed for the presentation of creditor claims by the notice provided for in paragraph (a) of this section, the receiver shall cause to be filled with the Board a full and complete list of such claims presented. Such list shall indicate the character of each claim therein listed and whether or not allowed by the receiver. At such other date or dates as may be ordered by the Board or determined by the receiver, a list of claims presented before such date shall be filled with the Board.

(d) Allowed creditor claims, and creditor claims approved for payment by the Board regardless of disallowance or non allowance by the receiver, shall be paid by the receiver, from time to time, to the extent that funds are available, in such manner and amount as may be directed by the Board.

[23 F.R. 9908, Dec. 23, 1958, as amended at 32 F.R. 6778, May 8, 1967]

§ 549.5 Share interest claims.

(a) Upon being directed to do so by the Board, the receiver shall promptly publish, in a newspaper printed in the English language and of general circulation in the city or county in which the home office of such Federal association is located, a notice to all shareholders of such Federal association to present their sworn proofs of claim of ownership thereof to such receiver on or before a date specified in such notice. The date specified in such notice shall be 3 years after the date of the appointment of the receiver. Such notice shall urge that claims of ownership be presented promptly and shall be similarly published on dates approximately 1 year and 2 years respectively after the date of such first publication. Claims of ownership not filled within the period stated in the notice shall be disallowed, except as they may thereafter be approved by the Board for payment in whole or in part out of the assets of said Federal association remaining undistributed at the time of such approval. The receiver shall mail a similar notice to any shareholder, shown to be such on the books of the association in the possession of the re

ceiver, at the last address of such shareholder as the same shall appear on such books: Provided, however, That such notice need not be mailed to the holder of a share account that has been surrendered and transferred to, or is in the process of being surrendered and transferred to, the Federal Savings and Loan Insurance Corporation. At the time of the declaration of the first liquidating dividend, the receiver shall credit to a special reserve the proportionate shares of such liquidating dividend otherwise payable to the holders of unclaimed share accounts shown on the books of the association which appear to be outstanding and valid, and similar credits shall from time to time be made for any subsequent liquidating dividends as the same may be declared before the date specified in the notice provided for in this paragraph. The final liquidating dividend to shareholders whose claims of ownership have been allowed may include any sums held in such accounts or any portion thereof, but such dividend shall in no event be paid before the date specified in the notice provided in this paragraph.

(b) Any share ownership proved to the satisfaction of the receiver shall be allowed by the receiver. The receiver may disallow in whole or in part any claim of share interest not proved to its satisfaction, and notice of such disallowance together with reason therefor shall be served by the receiver upon the claimant. The mailing of notice of such disallowance to the last known address of any claimant appearing on the books or proof of claim shall be deemed suffcient for the purposes hereof. Unless such claimant shall file with the Board written request for payment regardless of such disallowance or rejection by the receiver within 30 days after the mailing of such notice (Sundays and holidays included), such disallowance or rejection shall be final except as the Board shall otherwise determine in its discretion.

(c) Upon the expiration of the time fixed for the presentation of claims of share interest by the notice provided for in paragraph (a) of this section, the receiver shall cause to be filled with the Board a full and complete list of such claims presented. Such list shall indicate the character of each claim therein listed and whether or not allowed by the receiver. At such other date or dates as may be ordered by the Board or deter