Virginia Code 6.2-935: Termination of executory contracts and leases; liability; extension of statute of limitations.
Within 180 days of the date of the closing of the bank, the FDIC as receiver at its election may reject (i) any executory contract to which the closed bank is party without further liability to the closed bank or the receiver or (ii) any obligation of the bank as a lessee of real or personal property. The receiver’s election to reject a lease creates no claim (a) for rent other than rent accrued to the date of termination or (b) for actual damages, if any, for such termination, not to exceed the equivalent of six months’ payment. Notwithstanding any other law of the Commonwealth, the statute of limitations shall be extended for a period of six months on all causes of action which may accrue to the FDIC as receiver.
Terms Used In Virginia Code 6.2-935
- Bank: means any bank or trust company organized under the laws of the Commonwealth. See Virginia Code 6.2-925
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- FDIC: means the Federal Deposit Insurance Corporation. See Virginia Code 6.2-800
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Personal property: All property that is not real property.
- Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
1983, c. 507, § 6.1-110.11; 2010, c. 794.