LIQUIDATION PROCEEDINGS.

SEC. 507. LIQUIDATION PROCEEDINGS. Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended by inserting after subsection (i) (as added by section 503(a)(3) of this title) the following new subsection: “(j) Conditions Applicable to Liquidation Proceedings.— “(1) Consideration of local economic impact required.— The Corporation shall fully consider the adverse economic impact on local communities, including businesses and farms, of actions to be taken by it during the administration and liquidation of loans of a closed bank. “(2) Actions to alleviate adverse economic impact to be considered.— The actions which the Corporation shall consider include the release of proceeds from the sale of products and services for family living and business expenses and shortening the undue length of the decisionmaking process for the acceptance of offers of settlement contingent upon third party financing. “(3) Guidelines required.— The Corporation shall adopt and publish procedures and guidelines to minimize adverse eco-101 STAT. 635nomic effects caused by its actions on individual debtors in the community.”.