FIRREAS STATUTES OF LIMITATIONS - THEIR AVAILABILITY TO PURCHASERS FROM THE FDIC

Many acquirers of failed bank assets, by means of purchase agreements with the FDIC, are now faced with the prospect of trying to sue on not es that are years overdue in states where the statutes of limitations on such actions have already run. The bank and thrift bailout bill (FI PREA) gave the FDIC six years to bring such suits, but this does not a pply to purchasers from the FDIC. The author examines the reported cas e law favoring the extension to purchasers of FIRREA's longer statute of limitations as well as the case law opposing such an extension. He presents the argument for the extension, not only to the direct purcha sers in a purchase and assumption agreement, but to all subsequent hol ders as well.