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2.5 Dismissal and Exclusion of Other Actions Involving the Covered Financial Company

<< Title II Overview

2.5 Dismissal and Exclusion of Other Actions Involving the Covered Financial Company

 

 


2.5.       Dismissal and Exclusion of Other Actions Involving the Covered Financial Company.  On the date that the FDIC is appointed as receiver, any case or proceeding commenced with respect to a covered financial company under the Bankruptcy Code shall be dismissed upon notice to the Bankruptcy Court, provided that any order entered or other relief granted by a bankruptcy court prior to the date of the appointment of the FDIC as receiver shall continue with the same validity as if an orderly liquidation had not been commenced.  Moreover, no bankruptcy case or proceeding may be commenced with respect to a covered financial company at any time while the orderly liquidation is pending.  [§208]