National Loan Investors L.P. v. Town of Orange

JACOBS, Circuit Judge:

One section of the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”) provides that the Federal Deposit Insurance Corporation (“FDIC”), when acting as a receiver, “shall not be liable for any amounts in the nature of penalties or fines.” 12 U.S.C. § 1825(b)(3). The FDIC acted as receiver of an insolvent bank that held a mortgage on a parcel of land in Orange, Connecticut, which mortgage was sold by the FDIC to plaintiff National Loan Investors, L.P. (“National Loan”). After effecting foreclosure, National Loan paid various accrued sewer charges and…