Orderly Liquidation Authority
/ˈɔːrdərli ˌlɪkwɪˈdeɪʃən ɔːˈθɒrɪti/
Definitions
- (n.) A federal authority established under the Dodd-Frank Act to manage the liquidation of failing financial institutions outside of bankruptcy court.
The FDIC exercises its powers under the orderly liquidation authority to resolve a failing bank efficiently.
Forms
- orderly liquidation authority
Related terms
See also
Commentary
Used primarily in the context of financial regulatory law, OLA provides a mechanism to avoid systemic risk through government-managed liquidation; drafting should clarify its statutory limits and relationship to bankruptcy procedures.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.