Failed Financial Institution Law and Legal Definition

According to 12 USCS § 4402 (7), the term failed financial institution means “a financial institution that--

(A) fails to satisfy a covered contractual payment obligation when due;

(B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings; or

(C) has generally ceased to meet its obligations when due.”