Section 420-J. Liquidation of insured savings and loan associations

1. In
  the event that a savings and loan association is in  default,  the  fund
  may be appointed by the superintendent as conservator or receiver and as
  such,  may  be  authorized  by  the  superintendent (a) to take over the
  assets of and operate such association, (b) to take such action  as  may
  be  necessary  to  put  it  in  a  sound  and  solvent condition, (c) to
  negotiate  for  a  merger  with  another  insured   savings   and   loan
  association, (d) to negotiate the organization of a new savings and loan
  association  to take over its assets, or (e) to proceed to liquidate its
  assets  in  an  orderly  manner,   whichever   shall   appear   to   the
  superintendent  to be in the public interest. The payment by the fund of
  an insured account in any such association which  is  in  default  shall
  entitle  the  fund  to the rights of the holder of such insured account,
  but shall not affect any right which the holder of such account may have
  in the uninsured portion of his account or any right which he  may  have
  to  participate  in  the distribution of the net proceeds remaining from
  the disposition of the assets of such association.
    2. In order to prevent a  default  in  an  insured  savings  and  loan
  association  or  in  order  to  restore an insured association to normal
  operation as an insured  savings  and  loan  association,  the  fund  is
  authorized, in its discretion, to make loans to, purchase the assets of,
  or make a contribution to, an insured savings and loan association or an
  insured  savings  and  loan  association in default; but no contribution
  shall be made to any such association in an amount  in  excess  of  that
  which  the  fund finds to be reasonably necessary to save the expense of
  liquidating such association.