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124 STAT. 1518 PUBLIC LAW 111–203—JULY 21, 2010

Applicability. (2) PROCEDURES.—The due process requirements and other
procedures under section 8(e) of the Federal Deposit Insurance
Act (12 U.S.C. 1818(e)) shall apply to actions under this section
as if the covered financial company were an insured depository
institution and the senior executive or director were an institu-
tion-affiliated party, as those terms are defined in that Act.
(d) REGULATIONS.—The Corporation and the Board of Gov-
ernors, in consultation with the Council, shall jointly prescribe
rules or regulations to administer and carry out this section,
including rules, regulations, or guidelines to further define the
term senior executive for the purposes of this section.

12 USC 5394. 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.

SEC. 215. STUDY ON SECURED CREDITOR HAIRCUTS.
(a) STUDY REQUIRED.—The Council shall conduct a study evalu-
ating the importance of maximizing United States taxpayer protec-
tions and promoting market discipline with respect to the treatment
of fully secured creditors in the utilization of the orderly liquidation
authority authorized by this Act. In carrying out such study, the
Council shall—
(1) not be prejudicial to current or past laws or regulations
with respect to secured creditor treatment in a resolution
process;
(2) study the similarities and differences between the reso-
lution mechanisms authorized by the Bankruptcy Code, the
Federal Deposit Insurance Corporation Improvement Act of
1991, and the orderly liquidation authority authorized by this
Act;
(3) determine how various secured creditors are treated
in such resolution mechanisms and examine how a haircut
(of various degrees) on secured creditors could improve market
discipline and protect taxpayers;
(4) compare the benefits and dynamics of prudent lending
practices by depository institutions in secured loans for con-
sumers and small businesses to the lending practices of secured
creditors to large, interconnected financial firms;
(5) consider whether credit differs according to different
types of collateral and different terms and timing of the exten-
sion of credit; amd
(6) include an examination of stakeholders who were
unsecured or under-collateralized and seek collateral when a
firm is failing, and the impact that such behavior has on
financial stability and an orderly resolution that protects tax-
payers if the firm fails.

LAWS (b) REPORT.—Not later than the end of the 1-year period begin- ning on the date of enactment of this Act, the Council shall issue a report to the Congress containing all findings and conclusionsPUBLIC with on anorris VerDate Nov 24 2008 21:17 Aug 02, 2010 Jkt 089139 PO 00203 Frm 00144 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 PUBL203