Bank Conservation Act Law and Legal Definition
Bank Conservation Act is a federal statute, 12 USCS § 201, which provides for the appointment of a conservator of a national bank that is in failing circumstances. Pursuant to the statute, the conservator is appointed by the Comptroller of the Currency. S/he is appointed not for liquidation of the bank but for conservation of assets, in expectation that the bank later may be in position to reopen and resume its corporate functions. [Davis Trust Co. v. Hardee, 85 F.2d 571, 572 (D.C. 1936)].
