Section 6 Federal deposit insurance corporation or federal savings and loan insurance corporation; membership; subrogation rights - Massachusetts Statutes

Section 6. A bank may become a member of (i) the Federal Deposit Insurance Corporation, subject to the provisions of the act of Congress approved in nineteen hundred and fifty, known as the Federal Deposit Insurance Act, or (ii) the Federal Savings and Loan Insurance Corporation, subject to the provisions of the act of Congress, approved in nineteen hundred and thirty-four, known as the National Housing Act, or (iii) or any successor of either corporation. A member of the Deposit Insurance Fund established by chapter forty-three of the acts of nineteen hundred and thirty-four, shall also be subject to sections twelve to seventeen, inclusive, of said chapter forty-three. A member of the Share Insurance Fund of The Co-operative Central Bank, established by chapter seventy-three of the acts of nineteen hundred and thirty-four, shall also be subject to the provisions of sections eleven to sixteen, inclusive, of said chapter seventy-three.

The Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, upon payment of the insured portion of any share, deposit or other accounts in a bank so insured, shall, subject to the provisions of said section seventeen of said chapter forty-three, or the provisions of section sixteen of said chapter seventy-three, be subrogated to the rights of the person to whom the insurance was so paid to receive the same distribution from the proceeds of the assets and claims of the bank as would have been payable to that person on a claim for the portion of the deposit insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation; but such person shall retain the right to receive distribution on so much of such person’s claim as represents the uninsured portion of the share, deposit or other account.