12 USC § 5394 - Prohibition on taxpayer funding

---
identifier: "/us/usc/t12/s5394"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 5394 - Prohibition on taxpayer funding"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "5394"
section_name: "Prohibition on taxpayer funding"
chapter_number: 53
chapter_name: "WALL STREET REFORM AND CONSUMER PROTECTION"
subchapter_number: "II"
subchapter_name: "ORDERLY LIQUIDATION AUTHORITY"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 111–203, title II, § 214, July 21, 2010, 124 Stat. 1518.)"
---


# § 5394. Prohibition on taxpayer funding

**(a)** **Liquidation required** All 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.

**(b)** **Recovery of funds** All 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.

**(c)** **No losses to taxpayers** Taxpayers shall bear no losses from the exercise of any authority under this subchapter.

---

**Source Credit**: (Pub. L. 111–203, title II, § 214, July 21, 2010, 124 Stat. 1518.)

## Editorial Notes

### References in Text

This subchapter, referred to in text, was in the original “this title”, meaning title II of , , , which is classified principally to this subchapter. For complete classification of title II to the Code, see Tables.

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 1 day after , except as otherwise provided, see , set out as a note under .