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Authority to disallow claims 151. (1)

The receiver may disallow any claim or portion of a claim against the licensed financial institution or licensed financial holding company, including a claim based on a security interest, preference, setoff, or priority which is not proved to the satisfaction of the receiver. (2) In the case of a claim that is secured by any property or other asset of the licensed financial institution or licensed financial holding company, the portion of the claim which exceeds the fair market value of the property or assets shall be treated as an unsecured claim.

(3) This section shall not apply to an extension of credit from the Central Bank to the licensed financial institution.

Claims relating to eligible financial contracts 152. (1) In determining the rights and obligations between the licensed financial institution or licensed financial holding company and its contractual counterparties, effect shall be given to the termination provisions of eligible financial contracts between them, except during the period of any temporary stay on the exercise of the right that the Central Bank may determine. (2) The temporary stay of termination provisions shall be subject to any safeguard standards as the Central Bank shall issue to facilitate liquidation of the licensed financial institution or licensed financial holding company while at the same time minimizing disruption to the markets for eligible financial contracts.

(3) The net termination value determined in accordance with an eligible financial contract between them shall be a claim of the licensed financial institution or licensed financial holding company on the counterparty or shall be admitted after its validation as a claim

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