Under the proposed new insolvency regime created by Dodd-Frank, the FDIC may be appointed as receiver of a financial company if it is determined that the financial company is in default or in danger of default, and the failure of the financial company would have serious adverse effects on financial stability in the United States.The receiver is required to liquidate the failing financial company in a manner that imposes all losses on the company’s creditors and shareholders (rather than on taxpayers). Creditors of these financial institutions, who likely are familiar with reorganization and liquidation under the Bankruptcy Code, should be prepared to adapt to a different claims procedure and priority scheme. Although the FDIC is attempting to harmonize the claims procedure with the Bankruptcy Code, significant differences exist. For instance, as currently written, oversecured creditors will not be able to recover post-appointment interest, fees and costs, unless unsecured creditors are paid in full - unlike recovery under the Bankruptcy Code. We have prepared a Client Alert which focuses on those provisions of the proposed rule that are of interest to creditors of financial companies, including the administrative process for the initial determination of claims, the process of judicial review for disallowed claims, the priority of expenses and unsecured claims, and the treatment of secured claims.