1. (a) In any insolvency proceeding of a permitted payment stablecoin issuer licensed under this chapter under state law, including any receivership or similar proceeding administered by the Commissioner, the claims of persons holding payment stablecoins issued by the permitted payment stablecoin issuer to the reserve assets backing such payment stablecoins have priority over all other claims against the issuer, including administrative claims, secured claims to the extent such claims relate to reserve assets, and general unsecured claims, consistent with § 11(a) of the GENIUS Act, 12 U.S.C. § 5910(a).
2. (b) Reserve assets maintained by a permitted payment stablecoin issuer in compliance with § 3521 of this title are not property of the issuer’s estate in any insolvency proceeding, to the extent the reserve assets are identifiable as backing outstanding payment stablecoins. The reserve assets must be held for the benefit of, and distributed to, payment stablecoin holders in accordance with the priority established in subsection (a) of this section.
3. (c) If the reserve assets of a permitted payment stablecoin issuer are insufficient to satisfy the redemption claims of all payment stablecoin holders in full, the unsatisfied portion of the redemption claims have priority over all other unsecured claims against the issuer, including administrative expense claims and priority claims under any applicable state insolvency framework, consistent with § 11(d) of the GENIUS Act, 12 U.S.C. § 5910(d).
4. (d) Any person holding a payment stablecoin issued by a permitted payment stablecoin issuer is deemed to hold a claim against the issuer in an insolvency proceeding in the amount of the par value of the payment stablecoin, regardless of whether the person has a direct contractual relationship with the issuer.
5. (e) In any insolvency proceeding of a permitted payment stablecoin issuer administered by the Commissioner, the Commissioner shall, to the extent practicable, distribute reserve assets to payment stablecoin holders within 30 days of the commencement of the proceeding, and shall prioritize the prompt return of value to payment stablecoin holders over the administration of other claims against the issuer.
6. (f) In any case under Title 11 of the U.S. Code in which the debtor is a permitted payment stablecoin issuer licensed under this chapter, the Commissioner may raise and may be heard on any issue in the case, consistent with § 11(c) of the GENIUS Act, 12 U.S.C. § 5910(c).
7. (g) A permitted payment stablecoin issuer that is a nonbank entity licensed under this chapter may be considered a debtor under Title 11 of the U.S. Code. Nothing in this section limits or modifies the application of Title 11 to the debtor except as expressly provided in the GENIUS Act [12 U.S.C. § 5901 et seq.].

8. (h) The Commissioner shall promulgate regulations establishing procedures for the orderly resolution of a permitted payment stablecoin issuer, which shall be consistent with §§ 10 and 11 of the GENIUS Act, 12 U.S.C. §§ 5909 through 5911, and Office of the Comptroller of the Currency implementing regulations, and which must address at a minimum:

   1. (1) Procedures for the identification, segregation, and distribution of reserve assets to payment stablecoin holders.
   2. (2) Coordination with federal bankruptcy courts in any case in which a permitted payment stablecoin issuer is a debtor under Title 11 of the U.S. Code.
   3. (3) Notification requirements for payment stablecoin holders in the event of an issuer insolvency.
   4. (4) Wind-down procedures consistent with the wind-down planning required under § 3535(a)(9) of this title.

85 Del. Laws, c. 339, § 1