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Title 12 — Banks and Banking

Chapter 53 — Wall Street Reform and Consumer Protection

§ 5394. Prohibition on taxpayer funding

Statutory text

(a)

Liquidation required

All financial companies put into receivership under this subchapter shall be liquidated. No taxpayer funds shall be used to prevent the liquidation of any financial company under this subchapter.

(b)

Recovery of funds

All funds expended in the liquidation of a financial company under this subchapter shall be recovered from the disposition of assets of such financial company, or shall be the responsibility of the financial sector, through assessments.

(c)

No losses to taxpayers

Taxpayers shall bear no losses from the exercise of any authority under this subchapter.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Dodd-Frank Wall Street Reform and Consumer Protection Act

    Pub. L. 111–203 title II § 214 · 124 Stat. 1376

    Enacted · 12 U.S.C. § 5394

    (Pub. L. 111–203, title II, § 214, July 21, 2010, 124 Stat. 1518.)

    Source evidence

    Code source credit
    (Pub. L. 111–203, title II, § 214, July 21, 2010, 124 Stat. 1518.)

    Enacted provision · exact public law section
    SEC. 214. PROHIBITION ON TAXPAYER FUNDING. (a) Liquidation Required.— All financial companies put into receivership under this title shall be liquidated. No taxpayer funds shall be used to prevent the liquidation of any financial company under this title. (b) Recovery of Funds.— All funds expended in the liquidation of a financial company under this title shall be recovered from the disposition of assets of such financial company, or shall be the responsibility of the financial sector, through assessments. (c) No Losses to Taxpayers.— Taxpayers shall bear no losses from the exercise of any authority under this title.

1 of 1 references resolved to an enrolled provision

Editorial Notes

References in Text

This subchapter, referred to in text, was in the original “this title”, meaning title II of Pub. L. 111–203, , 124 Stat. 1442, which is classified principally to this subchapter. For complete classification of title II to the Code, see Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 1 day after , except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title.

Credits

(Pub. L. 111–203, title II, § 214, , 124 Stat. 1518.)

Parsed from the official OLRC USLM XML in data/usc_all/usc12.xml · release point 119-108 · OLRC build 2026-07-23

USLM identifier /us/usc/t12/s5394