WASHINGTON - The Federal Deposit Insurance Corp. used a new law Friday that lets it be repaid before nondeposit creditors when a bank or thrift fails.
It was the third time the FDIC had used the national depositor preference law, which Congress passed Aug. 10 to put insured depositors and the FDIC ahead of other creditors.
Brentwood Thrift and Loan Association, Los Angeles, was closed Friday and its $9.8 million in insured deposits paid off by the FDIC.
The FDIC also used the law Aug. 25, when Tarrant Bank failed in Fort Worth, and again on Sept. 24, when Western United Bank in Los Angeles failed.
This year the Bank Insurance Fund has paid for 39 failures of institutions holding $3.4 billion in assets.