The FDIC as Holder in Due Course: Some Law and Economics

Wednesday, January 1st, 1992 at 12:00 am by Marie T. Reilly
Marie T. Reilly, The FDIC as Holder in Due Course: Some Law and Economics, 1992 Colum. Bus. L. Rev. 165

Part II of this Article describes the FDIC’s role in bank failure resolution. Part III examines the law governing the FDIC’s immunity from obligors’ claims and defenses. Part IV then proposes an economic framework for evaluating an immunity rule’s efficiency as a loss allocation device. Part V evaluates the holder in due course rule, a familiar and analogous loss allocation rule, concluding that it is efficient. Part VI of this Article proposes a rule of immunity for the FDIC that efficiently allocates loss between borrowers and the FDIC.

Author Information

Assistant Professor of Law, University of South Carolina