StacksVerified U.S. federal law reference

12 U.S.C. § 5394 — Prohibition on taxpayer funding

Verified against govinfo.gov as of June 20, 2026View official text on govinfo.gov ↗
  1. (a)Liquidation requiredAll 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.
  2. (b)Recovery of fundsAll 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.
  3. (c)No losses to taxpayersTaxpayers shall bear no losses from the exercise of any authority under this subchapter.