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§ 1786. —  Termination of insured credit union status; cease and desist orders; removal or suspension from office; procedure.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1786]

 
                       TITLE 12--BANKS AND BANKING
 
                    CHAPTER 14--FEDERAL CREDIT UNIONS
 
                     SUBCHAPTER II--SHARE INSURANCE
 
Sec. 1786. Termination of insured credit union status; cease and 
        desist orders; removal or suspension from office; procedure
        

(a) Termination of insurance

    (1) Any insured credit union other than a Federal credit union may, 
upon not less than ninety days' written notice to the Board and upon the 
affirmative vote of a majority of its members within one year prior to 
the giving of such notice, terminate its status as an insured credit 
union.
    (2) Any insured credit union, other than a Federal credit union, 
which has obtained a new certificate of insurance from a corporation 
authorized and duly licensed to insure member accounts may upon not less 
than ninety days' written notice to the Board convert from status as an 
insured credit union under this chapter: Provided, That at the time of 
giving notice to the Board the provisions of paragraph (b)(1) of this 
section are not being invoked against the credit union.

(b) Unsound condition of credit union; notice to correct condition; 
        hearing; judicial review

    (1) Whenever, in the opinion of the Board, any insured credit union 
is engaging or has engaged in unsafe or unsound practices in conducting 
the business of such credit union, or is in an unsafe or unsound 
condition to continue operations as an insured credit union, or is 
violating or has violated an applicable law, rule, regulation, order, or 
any condition imposed in writing by the Board in connection with the 
granting of any application or other request by the credit union, or is 
violating or has violated any written agreement entered into with the 
Board, the Board shall serve upon the credit union a statement with 
respect to such practices or conditions or violations for the purpose of 
securing the correction thereof. In the case of an insured State-
chartered credit union, the Board shall send a copy of such statement to 
the commission, board, or authority, if any, having supervision of such 
credit union. Unless such correction shall be made within one hundred 
and twenty days after service of such statement, or within such shorter 
period of not less than twenty days after such service as the Board 
shall require in any case where it determines that the insurance risk 
with respect to such credit union could be unduly jeopardized by further 
delay in the correction of such practices or conditions or violations, 
or as the commission, board, or authority having supervision of such 
credit union, if any, shall require in the case of an insured State-
chartered credit union, the Board, if it shall determine to proceed 
further, shall give to the credit union not less than thirty days' 
written notice of its intention to terminate the status of the credit 
union as an insured credit union. Such notice shall contain a statement 
of the facts constituting the alleged unsafe and unsound practices or 
conditions or violations and shall fix a time and place for a hearing 
thereon. Such hearing shall be fixed for a date not earlier than thirty 
days nor later than sixty days after service of such notice unless an 
earlier or a later date is set by the Board at the request of the credit 
union. Unless the credit union shall appear at the hearing by a duly 
authorized representative, it shall be deemed to have consented to the 
termination of its status as an insured credit union. In the event of 
such consent, or if upon the record made at any such hearing the Board 
shall find that any unsafe or unsound practice or condition or violation 
specified in the notice has been established and has not been corrected 
within the time above-prescribed in which to make such correction, the 
Board may issue and serve upon the credit union an order terminating its 
status as an insured credit union on a date subsequent to the date of 
such finding and subsequent to the expiration of the time specified in 
the notice.
    (2) Any credit union whose insured status has been terminated by 
order of the Board under this subsection shall have the right of 
judicial review of such order only to the same extent as provided for 
the review of orders under subsection (j) of this section.

(c) Notice to members of termination of insured status

    In the event of the termination of a credit union's status as an 
insured credit union as provided under subsection (a)(1) or (b) of this 
section, the credit union shall give prompt and reasonable notice to all 
of its members whose accounts are insured that it has ceased to be an 
insured credit union. It may include in such notice a statement of the 
fact that member accounts insured on the effective date of such 
termination, to the extent not withdrawn, remain insured for one year 
from the date of such termination, but it shall not further represent 
itself in any manner as an insured credit union. In the event of failure 
to give the notice as herein provided to members whose accounts are 
insured, the Board is authorized to give reasonable notice.

(d) Continuation of insurance for one year; approval of conversion of 
        status; procedure subsequent to approval; reduction of premium 
        charges

    (1) After the termination of the insured status of any credit union 
as provided under subsection (a)(1) or (b) of this section, insurance of 
its member accounts to the extent that they were insured on the 
effective date of such termination, less any amounts thereafter 
withdrawn which reduce the accounts below the amount covered by 
insurance on the effective date of such termination, shall continue for 
a period of one year, but no shares issued by the credit union or 
deposits made after the date of such termination shall be insured by the 
Board. The credit union shall continue to maintain its deposit with and 
pay premiums to the Board during such period as in the case of an 
insured credit union and the Board shall have the right to examine such 
credit union from time to time during the period during which such 
insurance continues. Such credit union shall, in all other respects, be 
subject to the duties and obligations of an insured credit union for the 
period of one year from the date of such termination. In the event that 
such credit union shall be closed for liquidation within such period of 
one year, the Board shall have the same powers and rights with respect 
to such credit union as in the case of an insured credit union. 
Notwithstanding the above, when an insured credit union's insured status 
is terminated and the credit union subsequently obtains comparable 
insurance coverage from another source, insurance of its accounts by the 
fund may cease immediately upon the effective date of such comparable 
coverage by mutual consent of the credit union and the Board.
    (2) No credit union shall convert from status as an insured credit 
union under this chapter as provided under subsection (a)(2) of this 
section until the proposition for such conversion has been approved by a 
majority of all the directors of the credit union, and by affirmative 
vote of a majority of the members of the credit union who vote on the 
proposition in a vote in which at least 20 per centum of the total 
membership of the credit union participates. Following approval by the 
directors, written notice of the proposition and of the date set for the 
membership vote shall be delivered in person to each member, or mailed 
to each member at the address for such member appearing on the records 
of the credit union, not more than thirty nor less than seven days prior 
to such date. The membership shall be given the opportunity to vote by 
mail ballot. If the proposition is approved by the membership, prompt 
and reasonable notice of insurance conversion shall be given to all 
members.
    (3) In the event of a conversion of a credit union from status as an 
insured credit union under this chapter as provided under subsection 
(a)(2) of this section, premium charges payable under section 1782(c) of 
this title shall be reduced by an amount proportionate to the number of 
calendar months for which the converting credit union will no longer be 
insured under this chapter. As long as a converting credit union remains 
insured under this chapter it shall remain subject to all of the 
provisions of this subchapter.

(e) Opinion of Board as to unsound condition of credit union; notice of 
        charges; hearing; order to cease and desist; judicial review

    (1) If, in the opinion of the Board, any insured credit union, 
credit union which has insured accounts, or any institution-affiliated 
party is engaging or has engaged, or the Board has reasonable cause to 
believe that the credit union or any institution-affiliated party is 
about to engage, in an unsafe or unsound practice in conducting the 
business of such credit union, or is violating or has violated, or the 
Board has reasonable cause to believe that the credit union or any 
institution-affiliated party is about to violate, a law, rule, or 
regulation, or any condition imposed in writing by the Board in 
connection with the granting of any application or other request by the 
credit union or any written agreement entered into with the Board, the 
Board may issue and serve upon the credit union or such party a notice 
of charges in respect thereof. The notice shall contain a statement of 
the facts constituting the alleged violation or violations or the unsafe 
or unsound practice or practices, and shall fix a time and place at 
which a hearing will be held to determine whether an order to cease and 
desist therefrom should issue against the credit union or the 
institution-affiliated party. Such hearing shall be fixed for a date not 
earlier than thirty days nor later than sixty days after service of such 
notice unless an earlier or a later date is set by the Board at the 
request of any party so served. Unless the party or parties so served 
shall appear at the hearing by a duly authorized representative, they 
shall be deemed to have consented to the issuance of the cease-and-
desist order. In the event of such consent, or if upon the record made 
at any such hearing, the Board shall find that any violation or unsafe 
or unsound practice specified in the notice of charges has been 
established, the Board may issue and serve upon the credit union or the 
institution-affiliated party an order to cease and desist from any such 
violation or practice. Such order may, by provisions which may be 
mandatory or otherwise, require the credit union or its institution-
affiliated parties to cease and desist from the same, and, further, to 
take affirmative action to correct the conditions resulting from any 
such violation or practice.
    (2) A cease-and-desist order shall become effective at the 
expiration of thirty days after the service of such order upon the 
credit union or other person concerned (except in the case of a cease-
and-desist order issued upon consent, which shall become effective at 
the time specified therein), and shall remain effective and enforceable 
as provided therein, except to such extent as it is stayed, modified, 
terminated, or set aside by action of the Board or a reviewing court.
    (3) Affirmative action to correct conditions resulting from 
violations or practices.--The authority to issue an order under this 
subsection and subsection (f) of this section which requires an insured 
credit union or any institution-affiliated party to take affirmative 
action to correct any conditions resulting from any violation or 
practice with respect to which such order is issued includes the 
authority to require such insured credit union or such party to--
        (A) make restitution or provide reimbursement, indemnification, 
    or guarantee against loss if--
            (i) such credit union or such party was unjustly enriched in 
        connection with such violation or practice; or
            (ii) the violation or practice involved a reckless disregard 
        for the law or any applicable regulations or prior order of the 
        Board;

        (B) restrict the growth of the institution;
        (C) rescind agreements or contracts;
        (D) dispose of any loan or asset involved; and
        (E) employ qualified officers or employees (who may be subject 
    to approval by the Board at the direction of such Board); and
        (F) take such other action as the Board determines to be 
    appropriate.

    (4) Authority to limit activities.--The authority to issue an order 
under this subsection or subsection (f) of this section includes the 
authority to place limitations on the activities or functions of an 
insured credit union or any institution-affiliated party.

(f) Temporary cease and desist order; injunctive procedure

    (1) Whenever the Board shall determine that the violation or 
threatened violation or the unsafe or unsound practice or practices, 
specified in the notice of charges served upon the credit union or any 
institution-affiliated party pursuant to paragraph (1) of subsection (e) 
of this section, or the continuation thereof, is likely to cause 
insolvency or significant dissipation of assets or earnings of the 
credit union, or is likely to weaken the condition of the credit union 
or otherwise prejudice the interests of its insured members prior to the 
completion of the proceedings conducted pursuant to paragraph (1) of 
subsection (e) of this section, the Board may issue a temporary order 
requiring the credit union or such party to cease and desist from any 
such violation or practice and to take affirmative action to prevent 
such insolvency, dissipation, condition, or prejudice pending completion 
of such proceedings. Such order may include any requirement authorized 
under subsection (e)(3)(B) of this section. Such order shall become 
effective upon service upon the credit union or such institution-
affiliated party and, unless set aside, limited, or suspended by a court 
in proceedings authorized by paragraph (2) of this subsection, shall 
remain effective and enforceable pending the completion of the 
administrative proceedings pursuant to such notice and until such time 
as the Administration shall dismiss the charges specified in such 
notice, or if a cease-and-desist order is issued against the credit 
union or such party, until the effective date of such order.
    (2) Within ten days after the credit union concerned or any 
institution-affiliated party has been served with a temporary cease-and-
desist order, the credit union or such party may apply to the United 
States district court for the judicial district in which the home office 
of the credit union is located, or the United States District Court for 
the District of Columbia, for an injunction setting aside, limiting, or 
suspending the enforcement, operation, or effectiveness of such order 
pending the completion of the administrative proceedings pursuant to the 
notice of charges served upon the credit union or such party under 
paragraph (1) of subsection (e) of this section, and such court shall 
have jurisdiction to issue such injunction.
    (3) Incomplete or inaccurate records.--
        (A) Temporary order.--If a notice of charges served under 
    subsection (e)(1) of this section specifies, on the basis of 
    particular facts and circumstances, that an insured credit union's 
    books and records are so incomplete or inaccurate that the Board is 
    unable, through the normal supervisory process, to determine the 
    financial condition of that insured credit union or the details or 
    purpose of any transaction or transactions that may have a material 
    effect on the financial condition of that insured credit union, the 
    Board may issue a temporary order requiring--
            (i) the cessation of any activity or practice which gave 
        rise, whether in whole or in part, to the incomplete or 
        inaccurate state of the books or records; or
            (ii) affirmative action to restore such books or records to 
        a complete and accurate state, until the completion of the 
        proceedings under subsection (e)(1) of this section.

        (B) Effective period.--Any temporary order issued under 
    subparagraph (A)--
            (i) shall become effective upon service; and
            (ii) unless set aside, limited, or suspended by a court in 
        proceedings under paragraph (2), shall remain in effect and 
        enforceable until the earlier of--
                (I) the completion of the proceeding initiated under 
            subsection (e)(1) of this section in connection with the 
            notice of charges; or
                (II) the date the Board determines, by examination or 
            otherwise, that the insured credit union's books and records 
            are accurate and reflect the financial condition of the 
            credit union.

    (4) In the case of violation or threatened violation of, or failure 
to obey, a temporary cease-and-desist order, the Board may apply to the 
United States district court, or the United States court of any 
territory, within the jurisdiction of which the principal office of the 
credit union is located for an injunction to enforce such order, and, if 
the court shall determine that there has been such violation or 
threatened violation or failure to obey, it shall be the duty of the 
court to issue such injunction.

(g) Removal and prohibition authority

    (1) Authority to issue order.--Whenever the Board determines that--
        (A) any institution-affiliated party has, directly or 
    indirectly--
            (i) violated--
                (I) any law or regulation;
                (II) any cease-and-desist order which has become final;
                (III) any condition imposed in writing by the Board in 
            connection with the grant of any application or other 
            request by such credit union; or
                (IV) any written agreement between such credit union and 
            the Board;

            (ii) engaged or participated in any unsafe or unsound 
        practice in connection with any insured credit union or business 
        institution; or
            (iii) committed or engaged in any act, omission, or practice 
        which constitutes a breach of such party's fiduciary duty;

        (B) by reason of the violation, practice, or breach described in 
    any clause of subparagraph (A)--
            (i) such insured credit union or business institution has 
        suffered or will probably suffer financial loss or other damage;
            (ii) the interests of the insured credit union's members 
        have been or could be prejudiced; or
            (iii) such party has received financial gain or other 
        benefit by reason of such violation, practice or breach; and

        (C) such violation, practice, or breach--
            (i) involves personal dishonesty on the part of such party; 
        or
            (ii) demonstrates such party's unfitness to serve as a 
        director or officer of, or to otherwise participate in the 
        conduct of the affairs of, an insured credit union,

the Board may serve upon such party a written notice of the Board's 
intention to remove such party from office or to prohibit any further 
participation, by such party, in any manner in the conduct of the 
affairs of any insured credit union.
    (2) Specific violations.--
        (A) In general.--Whenever the Board determines that--
            (i) an institution-affiliated party has committed a 
        violation of any provision of subchapter II of chapter 53 of 
        title 31, unless such violation was inadvertent or 
        unintentional;
            (ii) an officer or director of an insured credit union has 
        knowledge that an institution-affiliated party of the insured 
        credit union has violated any such provision or any provision of 
        law referred to in subsection (i)(1)(A)(ii) of this section; or
            (iii) an officer or director of an insured credit union has 
        committed any violation of the Depository Institution Management 
        Interlocks Act [12 U.S.C. 3201 et seq.],

    the Board may serve upon such party, officer, or director a written 
    notice of the Board's intention to remove such officer or director 
    from office.
        (B) Factors to be considered.--In determining whether an officer 
    or director should be removed as a result of the application of 
    subparagraph (A)(ii), the Board shall consider whether the officer 
    or director took appropriate action to stop, or to prevent the 
    recurrence of, a violation described in such subparagraph.

    (3) Suspension order.--
        (A) Suspension or prohibition authorized.--If the Board serves 
    written notice under paragraph (1) or (2) to any institution-
    affiliated party of the Board's intention to issue an order under 
    such paragraph, the Board may suspend such party from office or 
    prohibit such party from further participation in any manner in the 
    conduct of the affairs of the institution, if the Board--
            (i) determines that such action is necessary for the 
        protection of the credit union or the interests of the credit 
        union's members; and
            (ii) serves such person with written notice of the 
        suspension order.

        (B) Effective period.--Any suspension order issued under 
    subparagraph (A)--
            (i) shall become effective upon service; and
            (ii) unless a court issues a stay of such order under 
        paragraph (6), shall remain in effect and enforceable until--
                (I) the date the Board dismisses the charges contained 
            in the notice served under paragraph (1) or (2) with respect 
            to such party; or
                (II) the effective date of an order issued by the Board 
            to such person under paragraph (1) or (2).

        (C) Copy of order.--If the Board issues a suspension order under 
    subparagraph (A) to any institution-affiliated party, the Board 
    shall serve a copy of such order on any insured credit union with 
    which such party is associated at the time such order is issued.

    (4) A notice of intention to remove a director, committee member, 
officer, or other person from office or to prohibit his participation in 
the conduct of the affairs of an insured credit union, shall contain a 
statement of the facts constituting grounds therefor, and shall fix a 
time and place at which a hearing will be held thereon. Such hearing 
shall be fixed for a date not earlier than thirty days nor later than 
sixty days after the date of service of such notice, unless an earlier 
or a later date is set by the Board at the request of (A) such director, 
committee member, or officer or other person, and for good cause shown, 
or (B) the Attorney General of the United States. Unless such director, 
committee member, officer, or other person shall appear at the hearing 
in person or by a duly authorized representative, he shall be deemed to 
have consented to the issuance of an order of such removal or 
prohibition. In the event of such consent, or if upon the record made at 
any such hearing the Board shall find that any of the grounds specified 
in such notice have been established, the Board may issue such orders of 
suspension or removal from office, or prohibition from participation in 
the conduct of the affairs of the credit union, as it may deem 
appropriate. Any such order shall become effective at the expiration of 
thirty days after service upon such credit union and the director, 
committee member, officer, or other person concerned (except in the case 
of an order issued upon consent, which shall become effective at the 
time specified therein). Such order shall remain effective and 
enforceable except to such extent as it is stayed, modified, terminated, 
or set aside by action of the Board or a reviewing court.
    (5) Prohibition of certain specific activities.--Any person subject 
to an order issued under this subsection shall not--
        (A) participate in any manner in the conduct of the affairs of 
    any institution or agency specified in paragraph (7)(A);
        (B) solicit, procure, transfer, attempt to transfer, vote, or 
    attempt to vote any proxy, consent, or authorization with respect to 
    any voting rights in any institution described in subparagraph (A);
        (C) violate any voting agreement previously approved by the 
    appropriate Federal banking agency; or
        (D) vote for a director, or serve or act as an institution-
    affiliated party.

    (6) Within ten days after any director, officer, committee member, 
or other person has been suspended from office and/or prohibited from 
participation in the conduct of the affairs of an insured credit union 
under paragraph (3) of this subsection, such director, officer, 
committee member, or other person may apply to the United States 
district court for the judicial district in which the principal office 
of the credit union is located, or the United States District Court for 
the District of Columbia, for a stay of such suspension and/or 
prohibition pending the completion of the administrative proceedings 
pursuant to the notice served upon such director, officer, committee 
member, or other person under paragraph (1) or (2) of this subsection, 
and such court shall have jurisdiction to stay such suspension and/or 
prohibition.
    (7) Industrywide Prohibition.--
        (A) In general.--Except as provided in subparagraph (B), any 
    person who, pursuant to an order issued under this subsection or 
    subsection (i) of this section, has been removed or suspended from 
    office in an insured credit union or prohibited from participating 
    in the conduct of the affairs of an insured credit union may not, 
    while such order is in effect, continue or commence to hold any 
    office in, or participate in any manner in the conduct of the 
    affairs of--
            (i) any insured depository institution;
            (ii) any institution treated as an insured bank under 
        paragraph (3) or (4) of section 1818(b) of this title, or as a 
        savings association under section 1818(b)(8) \1\ of this title;
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    \1\ See References in Text note below.
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            (iii) any insured credit union;
            (iv) any institution chartered under the Farm Credit Act of 
        1971 [12 U.S.C. 2001 et seq.];
            (v) any appropriate Federal depository institution 
        regulatory agency;
            (vi) the Federal Housing Finance Board and any Federal home 
        loan bank; and
            (vii) the Resolution Trust Corporation.

        (B) Exception if agency provides written consent.--If, on or 
    after the date an order is issued under this subsection which 
    removes or suspends from office any institution-affiliated party or 
    prohibits such party from participating in the conduct of the 
    affairs of an insured credit union, such party receives the written 
    consent of--
            (i) the Board; and
            (ii) the appropriate Federal financial institutions 
        regulatory agency of the institution described in any clause of 
        subparagraph (A) with respect to which such party proposes to 
        become an institution-affiliated party,

    subparagraph (A) shall, to the extent of such consent, cease to 
    apply to such party with respect to the institution described in 
    each written consent. If any person receives such a written consent 
    from the Board, the Board shall publicly disclose such consent. If 
    the agency referred to in clause (ii) grants such a written consent, 
    such agency shall report such action to the Board and publicly 
    disclose such consent.
        (C) Violation of paragraph treated as violation of order.--Any 
    violation of subparagraph (A) by any person who is subject to an 
    order described in such subparagraph shall be treated as a violation 
    of the order.
        (D) ``Appropriate federal financial institutions regulatory 
    agency'' defined.--For purposes of this paragraph and subsection 
    (1),\2\ the term ``appropriate Federal financial institutions 
    regulatory agency'' means--
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    \2\ So in original. No subsection (1) has been enacted.
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            (i) the appropriate Federal banking agency, as provided in 
        section 1813(q) of this title;
            (ii) the Farm Credit Administration, in the case of an 
        institution chartered under the Farm Credit Act of 1971 [12 
        U.S.C. 2001 et seq.];
            (iii) the National Credit Union Administration Board, in the 
        case of an insured credit union (as defined in section 1752(7) 
        of this title);
            (iv) the Secretary of the Treasury, in the case of the 
        Federal Housing Finance Board and any Federal home loan bank; 
        and
            (v) the Thrift Depositor Protection Oversight Board, in the 
        case of the Resolution Trust Corporation.

        (E) Consultation between agencies.--The agencies referred to in 
    clauses (i) and (ii) of subparagraph (B) shall consult with each 
    other before providing any written consent described in subparagraph 
    (B).
        (F) Applicability.--This paragraph shall only apply to a person 
    who is an individual, unless the Board specifically finds that it 
    should apply to a corporation, firm, or other business enterprise.

(h) Board's appointment of conservator; consultation with State; 
        authority

    (1) The Board may, ex parte without notice, appoint itself or 
another (including, in the case of a State-chartered insured credit 
union, the State official having jurisdiction over the credit union) as 
conservator and immediately take possession and control of the business 
and assets of any insured credit union in any case in which--
        (A) the Board determines that such action is necessary to 
    conserve the assets of any insured credit union or to protect the 
    Fund or the interests of the members of such insured credit union;
        (B) an insured credit union, by a resolution of its board of 
    directors, consents to such an action by the Board;
        (C) the Attorney General notifies the Board in writing that an 
    insured credit union has been found guilty of a criminal offense 
    under section 1956 or 1957 of title 18 or section 5322 or 5324 of 
    title 31;
        (D) there is a willful violation of a cease-and-desist order 
    which has become final;
        (E) there is concealment of books, papers, records, or assets of 
    the credit union or refusal to submit books, papers, records, or 
    affairs of the credit union for inspection to any examiner or to any 
    lawful agent of the Board;
        (F) the credit union is significantly undercapitalized, as 
    defined in section 1790d of this title, and has no reasonable 
    prospect of becoming adequately capitalized, as defined in section 
    1790d of this title; or
        (G) the credit union is critically undercapitalized, as defined 
    in section 1790d of this title.

    (2)(A) Except as provided in subparagraph (C), in the case of a 
State-chartered insured credit union, the authority conferred by 
paragraph (1) shall not be exercised without the written approval of the 
State official having jurisdiction over the State-chartered credit union 
that the grounds specified for such exercise exist.
    (B) If such approval has not been received by the Board within 30 
days of receipt of notice by the State that the Board has determined 
such grounds exist, and the Board has responded in writing to the 
State's written reasons, if any, for withholding approval, then the 
Board may proceed without State approval only by a unanimous vote of the 
Board.
    (C) In the case of a State-chartered insured credit union, the 
authority conferred by subparagraphs (F) and (G) of paragraph (1) may 
not be exercised unless the Board has complied with section 1790d(l) of 
this title.
    (3) Not later than ten days after the date on which the Board takes 
possession and control of the business and assets of an insured credit 
union pursuant to paragraph (1), such insured credit union may apply to 
the United States district court for the judicial district in which the 
principal office of such insured credit union is located or the United 
States District Court for the District of Columbia, for an order 
requiring the Board to show cause why it should not be enjoined from 
continuing such possession and control. Except as provided in this 
paragraph, no court may take any action, except at the request of the 
Board by regulation or order, to restrain or affect the exercise of 
powers or functions of the Board as conservator.
    (4) Except as provided in paragraph (3), in the case of a Federal 
credit union, the Board may maintain possession and control of the 
business and assets of such credit union and may operate such credit 
union until such time--
        (A) as the Board shall permit such credit union to continue 
    business subject to such terms and conditions as may be imposed by 
    the Board; or
        (B) as such credit union is liquidated in accordance with the 
    provisions of section 1787 of this title.

    (5) Except as provided in paragraph (3), in the case of an insured 
State-chartered credit union, the Board may maintain possession and 
control of the business and assets of such credit union and may operate 
such credit union until such time--
        (A) as the Board shall permit such credit union to continue 
    business, subject to such terms and conditions as may be imposed by 
    the Board;
        (B) as the Board shall permit the transfer of possession and 
    control of such credit union to any commission, board, or authority 
    which has supervisory authority over such credit union and which is 
    authorized by State law to operate such credit union; or
        (C) as such credit union is liquidated in accordance with the 
    provisions of section 1787 of this title.

    (6) The Board may appoint such agents as it considers necessary in 
order to assist the Board in carrying out its duties as a conservator 
under this subsection.
    (7) All expenses incurred by the Board in exercising its authority 
under this subsection with respect to any credit union shall be paid out 
of the assets of such credit union.
    (8) The conservator shall have all the powers of the members, the 
directors, the officers, and the committees of the credit union and 
shall be authorized to operate the credit union in its own name or to 
conserve its assets in the manner and to the extent authorized by the 
Board.
    (9) The authority granted by this subsection is in addition to all 
other authority granted to the Board under this chapter.

(i) Suspension or removal of institution-affiliated party charged with 
        crime

    (1) Suspension or prohibition authorized.--
        (A) In general.--Whenever any institution-affiliated party is 
    charged in any information, indictment, or complaint, with the 
    commission of or participation in--
            (i) a crime involving dishonesty or breach of trust which is 
        punishable by imprisonment for a term exceeding one year under 
        State or Federal law, or
            (ii) a criminal violation of section 1956, 1957, or 1960 of 
        title 18 or section 5322 or 5324 of title 31,

    the Board may, if continued service or participation by such party 
    may pose a threat to the interests of the credit union's members or 
    may threaten to impair public confidence in the credit union, by 
    written notice served upon such party, suspend such party from 
    office or prohibit such party from further participation in any 
    manner in the conduct of the affairs of the credit union.
        (B) Provisions applicable to notice.--
            (i) Copy.--A copy of any notice under subparagraph (A) shall 
        also be served upon the credit union.
            (ii) Effective period.--A suspension or prohibition under 
        subparagraph (A) shall remain in effect until the information, 
        indictment, or complaint referred to in such subparagraph is 
        finally disposed of or until terminated by the Board.

        (C) Removal or prohibition.--
            (i) In general.--If a judgment of conviction or an agreement 
        to enter a pretrial diversion or other similar program is 
        entered against an institution-affiliated party in connection 
        with a crime described in subparagraph (A)(i), at such time as 
        such judgment is not subject to further appellate review, the 
        Board may, if continued service or participation by such party 
        may pose a threat to the interests of the credit union's members 
        or may threaten to impair public confidence in the credit union, 
        issue and serve upon such party an order removing such party 
        from office or prohibiting such party from further participation 
        in any manner in the conduct of the affairs of the credit union 
        without the prior written consent of the Board.
            (ii) Required for certain offenses--In the case of a 
        judgment of conviction or agreement against an institution-
        affiliated party in connection with a violation described in 
        subparagraph (A)(ii), the Board shall issue and serve upon such 
        party an order removing such party from office or prohibiting 
        such party from further participation in any manner in the 
        conduct of the affairs of the credit union without the prior 
        written consent of the Board.

        (D) Provisions applicable to order.--
            (i) Copy.--A copy of any order under subparagraph (C) shall 
        also be served upon such credit union, whereupon such party (if 
        a director or an officer) shall cease to be a director or 
        officer of such credit union.
            (ii) Effect of acquittal.--A finding of not guilty or other 
        disposition of the charge shall not preclude the Board from 
        instituting proceedings after such finding or disposition to 
        remove such party from office or to prohibit further 
        participation in credit union affairs, pursuant to paragraph 
        (1), (2), or (3) of subsection (g) of this section.
            (iii) Effective period.--Any notice of suspension or order 
        of removal issued under this paragraph shall remain effective 
        and outstanding until the completion of any hearing or appeal 
        authorized under paragraph (3) unless terminated by the Board.

    (2) If at any time, because of the suspension of one or more 
directors pursuant to this section, there shall be on the board of 
directors of a Federal credit union less than a quorum of directors not 
so suspended, all powers and functions vested in or exercisable by such 
board shall vest in and be exercisable by the director or directors on 
the board not so suspended, until such time as there shall be a quorum 
of the board of directors. In the event all of the directors of a 
Federal credit union are suspended pursuant to this section, the Board 
shall appoint persons to serve temporarily as directors in their place 
and stead pending the termination of such suspensions, or until such 
time as those who have been suspended cease to be directors of the 
credit union and their respective successors have been elected by the 
members at an annual or special meeting and have taken office. Directors 
appointed temporarily by the Board shall, within thirty days following 
their appointment, call a special meeting for the election of new 
directors, unless during the thirty-day period (A) the regular annual 
meeting is scheduled, or (B) the suspensions giving rise to the 
appointment of temporary directors are terminated.
    (3) Within thirty days from service of any notice of suspension or 
order of removal issued pursuant to paragraph (1) of this subsection, 
the institution-affiliated party concerned may request in writing an 
opportunity to appear before the Board to show that the continued 
service to or participation in the conduct of the affairs of the credit 
union by such party does not, or is not likely to, pose a threat to the 
interests of the credit union's members or threaten to impair public 
confidence in the credit union. Upon receipt of any such request, the 
Board shall fix a time (not more than thirty days after receipt of such 
request, unless extended at the request of such party) and place at 
which such party may appear, personally or through counsel, before the 
Board or its designee to submit written materials (or, at the discretion 
of the Board, oral testimony) and oral argument. Within sixty days of 
such hearing, the Board shall notify such party whether the suspension 
or prohibition from participation in any manner in the conduct of the 
affairs of the credit union will be continued, terminated or otherwise 
modified, or whether the order removing such party from office or 
prohibiting such party from further participation in any manner in the 
conduct of the affairs of the credit union will be rescinded or 
otherwise modified. Such notification shall contain a statement of the 
basis for the Board's decision, if adverse to such party. The Board is 
authorized to prescribe such rules as may be necessary to effectuate the 
purposes of this subsection.

(j) Jurisdiction of hearing; procedure; judicial review

    (1) Any hearing provided for in this section (other than the hearing 
provided for in subsection (i)(3) of this section) shall be held in the 
Federal judicial district or in the territory in which the principal 
office of the credit union is located, unless the party afforded the 
hearing consents to another place, and shall be conducted in accordance 
with the provisions of chapter 5 of title 5. After such hearing, and 
within ninety days after the Board has notified the parties that the 
case has been submitted to it for final decision, it shall render its 
decision (which shall include findings of fact upon which its decision 
is predicated) and shall issue and serve upon each party to the 
proceeding an order or orders consistent with the provisions of this 
section. Judicial review of any such order shall be exclusively as 
provided in this subsection (j). Unless a petition for review is timely 
filed in a court of appeals of the United States, as provided in 
paragraph (2) of this subsection, and thereafter until the record in the 
proceeding has been filed as so provided, the Board may at any time, 
upon such notice and in such manner as it may deem proper, modify, 
terminate, or set aside any such order. Upon such filing of the record, 
the Board may modify, terminate, or set aside any such order with 
permission of the court.
    (2) Any party to any proceeding under paragraph (1) may obtain a 
review of any order served pursuant to paragraph (1) of this subsection 
(other than an order issued with the consent of the credit union or the 
institution-affiliated party concerned or an order issued under 
subsection (i)(1) of this section) by filing in the court of appeals of 
the United States for the circuit in which the principal office of the 
credit union is located, or in the United States Court of Appeals for 
the District of Columbia Circuit, within thirty days after the date of 
service of such order, a written petition praying that the order of the 
Board be modified, terminated, or set aside. A copy of such petition 
shall be forthwith transmitted by the clerk of the court to the Board, 
and thereupon the Board shall file in the court the record in the 
proceeding, as provided in section 2112 of title 28. Upon the filing of 
such petition, such court shall have jurisdiction, which upon the filing 
of the record shall, except as provided in the last sentence of said 
paragraph (1), be exclusive, to affirm, modify, terminate, or set aside, 
in whole or in part, the order of the Board. Review of such proceedings 
shall be had as provided in chapter 7 of title 5. The judgment and 
decree of the court shall be final, except that the same shall be 
subject to review by the Supreme Court upon certiorari, as provided in 
section 1254 of title 28.
    (3) The commencement of proceedings for judicial review under 
paragraph (2) of this subsection shall not, unless specifically ordered 
by the court, operate as a stay of any order issued by the Board.

(k) Jurisdiction and enforcement; penalty

    (1) The Board may in its discretion apply to the United States 
district court, or the United States court of any territory within the 
jurisdiction of which the principal office of the credit union is 
located, for the enforcement of any effective and outstanding notice or 
order issued under this section or section 1790d of this title, and such 
courts shall have jurisdiction and power to order and require compliance 
therewith. However, except as otherwise provided in this section or 
section 1790d of this title, no court shall have jurisdiction to affect 
by injunction or otherwise the issuance or enforcement of any notice or 
order under this section or section 1790d of this title or to review, 
modify, suspend, terminate, or set aside any such notice or order.
    (2) Civil money penalty.--
        (A) First tier.--Any insured credit union which, and any 
    institution-affiliated party who--
            (i) violates any law or regulation;
            (ii) violates any final order or temporary order issued 
        pursuant to subsection (e), (f), (g), (i), or (q) of this 
        section, or any final order under section 1790d of this title;
            (iii) violates any condition imposed in writing by the Board 
        in connection with the grant of any application or other request 
        by such credit union; or
            (iv) violates any written agreement between such credit 
        union and such agency,

    shall forfeit and pay a civil penalty of not more than $5,000 for 
    each day during which such violation continues.
        (B) Second tier.--Notwithstanding subparagraph (A), any insured 
    credit union which, and any institution-affiliated party who--
            (i)(I) commits any violation described in any clause of 
        subparagraph (A);
            (II) recklessly engages in an unsafe or unsound practice in 
        conducting the affairs of such credit union; or
            (III) breaches any fiduciary duty;
            (ii) which violation, practice, or breach--
                (I) is part of a pattern of misconduct;
                (II) causes or is likely to cause more than a minimal 
            loss to such credit union; or
                (III) results in pecuniary gain or other benefit to such 
            party,

    shall forfeit and pay a civil penalty of not more than $25,000 for 
    each day during which such violation, practice, or breach continues.
        (C) Third tier.--Notwithstanding subparagraphs (A) and (B), any 
    insured credit union which, and any institution-affiliated party 
    who--
            (i) knowingly--
                (I) commits any violation described in any clause of 
            subparagraph (A);
                (II) engages in any unsafe or unsound practice in 
            conducting the affairs of such credit union; or
                (III) breaches any fiduciary duty; and

            (ii) knowingly or recklessly causes a substantial loss to 
        such credit union or a substantial pecuniary gain or other 
        benefit to such party by reason of such violation, practice, or 
        breach,

    shall forfeit and pay a civil penalty in an amount not to exceed the 
    applicable maximum amount determined under subparagraph (D) for each 
    day during which such violation, practice, or breach continues.
        (D) Maximum amounts of penalties for any violation described in 
    subparagraph (c).--The maximum daily amount of any civil penalty 
    which may be assessed pursuant to subparagraph (C) for any 
    violation, practice, or breach described in such subparagraph is--
            (i) in the case of any person other than an insured credit 
        union, an amount to not \3\ exceed $1,000,000; and
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    \3\ So in original. Probably should be ``not to''.
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            (ii) in the case of any insured credit union, an amount not 
        to exceed the lesser of--
                (I) $1,000,000; or
                (II) 1 percent of the total assets of such credit union.

        (E) Assessment.--
            (i) Written notice.--Any penalty imposed under subparagraph 
        (A), (B), or (C) may be assessed and collected by the Board by 
        written notice.
            (ii) Finality of assessment.--If, with respect to any 
        assessment under clause (i), a hearing is not requested pursuant 
        to subparagraph (H) within the period of time allowed under such 
        subparagraph, the assessment shall constitute a final and 
        unappealable order.

        (F) Authority to modify or remit penalty.--The Board may 
    compromise, modify, or remit any penalty which such agency may 
    assess or had already assessed under subparagraph (A), (B), or (C).
        (G) Mitigating factors.--In determining the amount of any 
    penalty imposed under subparagraph (A), (B), or (C), the Board shall 
    take into account the appropriateness of the penalty with respect 
    to--
            (i) the size of financial resources and good faith of the 
        insured credit union or the person charged;
            (ii) the gravity of the violation;
            (iii) the history of previous violations; and
            (iv) such other matters as justice may require.

        (H) Hearing.--The insured credit union or other person against 
    whom any penalty is assessed under this paragraph shall be afforded 
    an agency hearing if such institution or person submits a request 
    for such hearing within 20 days after the issuance of the notice of 
    assessment.
        (I) Collection.--
            (i) Referral.--If any insured credit union or other person 
        fails to pay an assessment after any penalty assessed under this 
        paragraph has become final, the Board shall recover the amount 
        assessed by action in the appropriate United States district 
        court.
            (ii) Appropriateness of penalty not reviewable.--In any 
        civil action under clause (i), the validity and appropriateness 
        of the penalty shall not be subject to review.

        (J) Disbursement.--All penalties collected under authority of 
    this paragraph shall be deposited into the Treasury.
        (K) ``Violate'' defined.--For purposes of this section, the term 
    ``violate'' includes any action (alone or with another or others) 
    for or toward causing, bringing about, participating in, counseling, 
    or aiding or abetting a violation.
        (L) Regulations.--The Board shall prescribe regulations 
    establishing such procedures as may be necessary to carry out this 
    paragraph.

    (3) Notice under this section after separation from service.--The 
resignation, termination of employment or participation, or separation 
of a institution-affiliated party (including a separation caused by the 
closing of an insured credit union) shall not affect the jurisdiction 
and authority of the Board to issue any notice and proceed under this 
section against any such party, if such notice is served before the end 
of the 6-year period beginning on the date such party ceased to be such 
a party with respect to such credit union (whether such date occurs 
before, on, or after August 9, 1989).

(l) Criminal penalty for violation of certain orders

    Whoever--
        (1) under this chapter, is suspended or removed from, or 
    prohibited from participating in the affairs of any credit union 
    described in subsection (g)(5) of this section; and
        (2) knowingly participates, directly or indirectly, in any 
    manner (including by engaging in an activity specifically prohibited 
    in such an order or in subsection (g)(5) of this section) in the 
    conduct of the affairs of such a credit union;

shall be fined not more than $1,000,000, imprisoned for not more than 5 
years, or both.

(m) Definitions

    As used in this section (1) the terms ``cease-and-desist order which 
has become final'' and ``order which has become final'' means a cease-
and-desist order, or an order issued by the Board with the consent of 
the credit union or the director, officer, committee member, or other 
person concerned, or with respect to which no petition for review of the 
action of the Board has been filed and perfected in a court of appeals 
as specified in paragraph (2) of subsection (j) of this section, or with 
respect to which the action of the court in which said petition is so 
filed is not subject to further review by the Supreme Court of the 
United States in proceedings provided for in said paragraph, or an order 
issued under subsection (i) of this section, and (2) the term 
``violation'' includes, without limitation any action (alone or with 
another or others) for or toward causing, bringing about, participating 
in, counseling, or aiding or abetting a violation.

(n) Notice or order to State board supervising State-chartered credit 
        union

    Any service required or authorized to be made by the Board under 
this section may be made by registered mail or in such other manner 
reasonably calculated to give actual notice as the Board may by 
regulation or otherwise provide. Copies of any notice or order served by 
the Board upon any State-chartered credit union or any director, 
officer, or committee member thereof or other person participating in 
the conduct of its affairs, pursuant to the provisions of this section, 
shall also be sent to the commission, board, or authority, if any, 
having supervision of such credit union.

(o) Notice of proceedings to State board supervising State-chartered 
        credit union; effect of corrective action by State board; attack 
        on validity of notice or order

    In connection with any proceeding under subsection (e), (f)(1), or 
(g) of this section involving an insured State-chartered credit union or 
any institution-affiliated party, the Board shall provide the 
commission, board, or authority, if any, having supervision of such 
credit union, with notice of its intent to institute such a proceeding 
and the grounds thereof. Unless within such time as the Board deems 
appropriate in the light of the circumstances of the case (which time 
must be specified in the notice prescribed in the preceding sentence) 
satisfactory corrective action is effectuated by action of such 
commission, board, or authority, the Board may proceed as provided in 
this section. No credit union or other party who is the subject of any 
notice or order issued by the Board under this section shall have 
standing to raise the requirements of this subsection as ground for 
attacking the validity of any such notice or order.

(p) Proceedings; powers of Board; court enforcement of subpenas; witness 
        fees; expenses and attorneys' fees

    In the course of or in connection with any proceeding under this 
section or in connection with any claim for insured deposits or any 
examination or investigation under section 1784(b) of this title, the 
Board, in conducting the proceeding, examination, or investigation or 
considering the claim for insured deposits,,\4\ or any designated 
representative thereof, including any person designated to conduct any 
hearing under this section, shall have the power to administer oaths and 
affirmations, to take or cause to be taken depositions, and to issue, 
revoke, quash, or modify subpenas and subpenas duces tecum, and the 
Board is empowered to make rules and regulations with respect to any 
such proceedings, claims, examinations, or investigations. The 
attendance of witnesses and the production of documents provided for in 
this subsection may be required from any place in any State or in any 
territory or other place subject to the jurisdiction of the United 
States at any designated place where such proceeding is being conducted. 
Any party to proceedings under this section may apply to the United 
States District Court for the District of Columbia, or the United States 
district court for the judicial district or the United States court in 
any territory in which such proceeding is being conducted, or where the 
witness resides or carries on business, for enforcement of any subpena 
or subpena duces tecum issued pursuant to this subsection, and such 
courts shall have jurisdiction and power to order and require compliance 
therewith. Witnesses subpenaed under this section shall be paid the same 
fees and mileage that are paid witnesses in the district courts of the 
United States. Any court having jurisdiction of any proceedings 
instituted under this section by an insured credit union or a director, 
officer, or committee member thereof may allow to any such party such 
reasonable expenses and attorneys' fees as it deems just and proper, and 
such expenses and fees shall be paid by the credit union or from its 
assets.
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    \4\ So in original.
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(q) Compliance with monetary transaction recordkeeping and report 
        requirements

                 (1) Compliance procedures required

        The Board shall prescribe regulations requiring insured credit 
    unions to establish and maintain procedures reasonably designed to 
    assure and monitor the compliance of such credit unions with the 
    requirements of subchapter II of chapter 53 of title 31.

       (2) Examinations of credit unions to include review of 
                            compliance procedures

        (A) In general

            Each examination of an insured credit union by the Board 
        shall include a review of the procedures required to be 
        established and maintained under paragraph (1).

        (B) Exam report requirement

            The report of examination shall describe any problem with 
        the procedures maintained by the credit union.

                (3) Order to comply with requirements

        If the Board determines that an insured credit union--
            (A) has failed to establish and maintain the procedures 
        described in paragraph (1); or
            (B) has failed to correct any problem with the procedures 
        maintained by such credit union which was previously reported to 
        the credit union by the Board,

    the Board shall issue an order in the manner prescribed in 
    subsection (e) or (f) of this section requiring such credit union to 
    cease and desist from its violation of this subsection or 
    regulations prescribed under this subsection.

(r) ``Institution-affiliated party'' defined

    For purposes of this chapter, the term ``institution-affiliated 
party'' means--
        (1) any committee member, director, officer, or employee of, or 
    agent for, an insured credit union;
        (2) any consultant, joint venture partner, and any other person 
    as determined by the Board (by regulation or on a case-by-case 
    basis) who participates in the conduct of the affairs of an insured 
    credit union; and
        (3) any independent contractor (including any attorney, 
    appraiser, or accountant) who knowingly or recklessly participates 
    in--
            (A) any violation of any law or regulation;
            (B) any breach of fiduciary duty; or
            (C) any unsafe or unsound practice,

    which caused or is likely to cause more than a minimal financial 
    loss to, or a significant adverse effect on, the insured credit 
    union.

(s) Public disclosure of agency action

                           (1) In general

        The Board shall publish and make available to the public on a 
    monthly basis--
            (A) any written agreement or other written statement for 
        which a violation may be enforced by the Board, unless the 
        Board, in its discretion, determines that publication would be 
        contrary to the public interest;
            (B) any final order issued with respect to any 
        administrative enforcement proceeding initiated by the Board 
        under this section or any other law; and
            (C) any modification to or termination of any order or 
        agreement made public pursuant to this paragraph.

                            (2) Hearings

        All hearings on the record with respect to any notice of charges 
    issued by the Board shall be open to the public, unless the agency, 
    in its discretion, determines that holding an open hearing would be 
    contrary to the public interest.

                       (3) Reports to Congress

        A written report shall be made part of a determination not to 
    hold a public hearing pursuant to paragraph (2) or not to publish a 
    document pursuant to paragraph (1)(A). At the end of each calendar 
    quarter, all such reports shall be transmitted to the Congress.

                      (4) Transcript of hearing

        A transcript that includes all testimony and other documentary 
    evidence shall be prepared for all hearings commenced pursuant to 
    subsection (k) of this section. A transcript of public hearings 
    shall be made available to the public pursuant to section 552 of 
    title 5.

      (5) Delay of publication under exceptional circumstances

        If the Board makes a determination in writing that the 
    publication of a final order pursuant to paragraph (1)(B) would 
    seriously threaten the safety and soundness of an insured depository 
    institution, the agency may delay the publication of the document 
    for a reasonable time.

        (6) Documents filed under seal in public enforcement 
                                  hearings

        The Board may file any document or part of a document under seal 
    in any administrative enforcement hearing commenced by the agency if 
    disclosure of the document would be contrary to the public interest. 
    A written report shall be made part of any determination to withhold 
    any part of a document from the transcript of the hearing required 
    by paragraph (2).

                     (7) Retention of documents

        The Board shall keep and maintain a record, for a period of at 
    least 6 years, of all documents described in paragraph (1) and all 
    informal enforcement agreements and other supervisory actions and 
    supporting documents issued with respect to or in connection with 
    any administrative enforcement proceeding initiated by such agency 
    under this section or any other laws.

                     (8) Disclosures to Congress

        No provision of this subsection may be construed to authorize 
    the withholding, or to prohibit the disclosure, of any information 
    to the Congress or any committee or subcommittee of the Congress.

(t) Regulation of certain forms of benefits to institution-affiliated 
        parties

         (1) Golden parachutes and indemnification payments

        The Board may prohibit or limit, by regulation or order, any 
    golden parachute payment or indemnification payment.

                (2) Factors to be taken into account

        The Board shall prescribe, by regulation, the factors to be 
    considered by the Board in taking any action pursuant to paragraph 
    (1) which may include such factors as the following:
            (A) Whether there is a reasonable basis to believe that the 
        institution-affiliated party has committed any fraudulent act or 
        omission, breach of trust or fiduciary duty, or insider abuse 
        with regard to the credit union that has had a material affect 
        on the financial condition of the credit union.
            (B) Whether there is a reasonable basis to believe that the 
        institution-affiliated party is substantially responsible for 
        the insolvency of the credit union, the appointment of a 
        conservator or liquidating agent for the credit union, or the 
        credit union's troubled condition (as defined in prescribed \5\ 
        by the Board pursuant to paragraph (4)(A)(ii)(III)).
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    \5\ So in original. Probably should be ``regulations prescribed''.
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            (C) Whether there is a reasonable basis to believe that the 
        institution-affiliated party has materially violated any 
        applicable Federal or State banking law or regulation that has 
        had a material affect on the financial condition of the credit 
        union.
            (D) Whether there is a reasonable basis to believe that the 
        institution-affiliated party has violated or conspired to 
        violate--
                (i) section 215, 656, 657, 1005, 1006, 1007, 1014, 1032, 
            or 1344 of title 18; or
                (ii) section 1341 or 1343 of such title affecting a 
            financial institution.

            (E) Whether the institution-affiliated party was in a 
        position of managerial or fiduciary responsibility.
            (F) The length of time the party was affiliated with the 
        credit union and the degree to which--
                (i) the payment reasonably reflects compensation earned 
            over the period of employment; and
                (ii) the compensation involved represents a reasonable 
            payment for services rendered.

                   (3) Certain payments prohibited

        No credit union may prepay the salary or any liability or legal 
    expense of any institution-affiliated party if such payment is 
    made--
            (A) in contemplation of the insolvency of such credit union 
        or after the commission of an act of insolvency; and
            (B) with a view to, or has the result of--
                (i) preventing the proper application of the assets of 
            the credit union; or
                (ii) preferring one creditor over another.

              (4) ``Golden parachute payment'' defined

        For purposes of this subsection--

        (A) In general

            The term ``golden parachute payment'' means any payment (or 
        any agreement to make any payment) in the nature of compensation 
        by any credit union for the benefit of any institution-
        affiliated party pursuant to an obligation of such credit union 
        that--
                (i) is contingent on the termination of such party's 
            affiliation with the credit union; and
                (ii) is received on or after the date on which--
                    (I) the credit union is insolvent;
                    (II) any conservator or liquidating agent is 
                appointed for such credit union; or \6\
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    \6\ So in original. The word ``or'' probably should not appear.
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                    (III) the Board determines that the credit union is 
                in a troubled condition (as defined in regulations which 
                the Board shall prescribe);
                    (IV) the credit union has been assigned a composite 
                rating by the Board of 4 or 5 under the Uniform 
                Financial Institutions Rating System (as applicable with 
                respect to credit unions); or
                    (V) the credit union is subject to a proceeding 
                initiated by the Board to terminate or suspend deposit 
                insurance for such credit union.

        (B) Certain payments in contemplation of an event

            Any payment which would be a golden parachute payment but 
        for the fact that such payment was made before the date referred 
        to in subparagraph (A)(ii) shall be treated as a golden 
        parachute payment if the payment was made in contemplation of 
        the occurrence of an event described in any subclause of such 
        subparagraph.

        (C) Certain payments not included

            The term ``golden parachute payment'' shall not include--
                (i) any payment made pursuant to a retirement plan which 
            is qualified (or is intended to be qualified) under section 
            401 of title 26 or other nondiscriminatory retirement or 
            severance benefit plan;
                (ii) any payment made pursuant to a bona fide deferred 
            compensation plan or arrangement which the Board determines, 
            by regulation or order, to be permissible; or
                (iii) any payment made by reason of the death or 
            disability of an institution-affiliated party.

                        (5) Other definitions

        For purposes of this subsection--

        (A) Indemnification payment

            Subject to paragraph (6), the term ``indemnification 
        payment'' means any payment (or any agreement to make any 
        payment) by any credit union for the benefit of any person who 
        is or was an institution-affiliated party, to pay or reimburse 
        such person for any liability or legal expense with regard to 
        any administrative proceeding or civil action instituted by the 
        Board which results in a final order under which such person--
                (i) is assessed a civil money penalty;
                (ii) is removed or prohibited from participating in 
            conduct of the affairs of the credit union; or
                (iii) is required to take any affirmative action 
            described in subsection (e)(3) of this section with respect 
            to such credit union.

        (B) Liability or legal expense

            The term ``liability or legal expense'' means--
                (i) any legal or other professional expense incurred in 
            connection with any claim, proceeding, or action;
                (ii) the amount of, and any cost incurred in connection 
            with, any settlement of any claim, proceeding, or action; 
            and
                (iii) the amount of, and any cost incurred in connection 
            with, any judgment or penalty imposed with respect to any 
            claim, proceeding, or action.

        (C) Payment

            The term ``payment'' includes--
                (i) any direct or indirect transfer of any funds or any 
            asset; and
                (ii) any segregation of any funds or assets for the 
            purpose of making, or pursuant to an agreement to make, any 
            payment after the date on which such funds or assets are 
            segregated, without regard to whether the obligation to make 
            such payment is contingent on--
                    (I) the determination, after such date, of the 
                liability for the payment of such amount; or
                    (II) the liquidation, after such date, of the amount 
                of such payment.

      (6) Certain commercial insurance coverage not treated as 
                           covered benefit payment

        No provision of this subsection shall be construed as 
    prohibiting any credit union from purchasing any commercial 
    insurance policy or fidelity bond, except that, subject to any 
    requirement described in paragraph (5)(A)(iii), such insurance 
    policy or bond shall not cover any legal or liability expense of the 
    credit union which is described in paragraph (5)(A).

(u) Foreign investigations

     (1) Requesting assistance from foreign banking authorities

        In conducting any investigation, examination, or enforcement 
    action under this chapter, the Board may--
            (A) request the assistance of any foreign banking authority; 
        and
            (B) maintain an office outside the United States.

       (2) Providing assistance to foreign banking authorities

        (A) In general

            The Board may, at the request of any foreign banking 
        authority, assist such authority if such authority states that 
        the requesting authority is conducting an investigation to 
        determine whether any person has violated, is violating, or is 
        about to violate any law or regulation relating to banking 
        matters or currency transactions administered or enforced by the 
        requesting authority.

        (B) Investigation by Federal banking agency

            The Board may, in the Board's discretion, investigate and 
        collect information and evidence pertinent to a request for 
        assistance under subparagraph (A). Any such investigation shall 
        comply with the laws of the United States and the policies and 
        procedures of the Board.

        (C) Factors to consider

            In deciding whether to provide assistance under this 
        paragraph, the Board shall consider--
                (i) whether the requesting authority has agreed to 
            provide reciprocal assistance with respect to banking 
            matters within the jurisdiction of the Board or any 
            appropriate Federal banking agency; and
                (ii) whether compliance with the request would prejudice 
            the public interest of the United States.

        (D) Treatment of foreign banking authority

            For purposes of any Federal law or Board regulation relating 
        to the collection or transfer of information by the Board or any 
        appropriate Federal banking agency, the foreign banking 
        authority shall be treated as another appropriate Federal 
        banking agency.

                      (3) Rule of construction

        Paragraphs (1) and (2) shall not be construed to limit the 
    authority of the Board or any other Federal agency to provide or 
    receive assistance or information to or from any foreign authority 
    with respect to any matter.

(v) Termination of insurance for money laundering or cash transaction 
        reporting offenses

                           (1) In general

        (A) Conviction of title 18 offenses

            (i) Duty to notify

                If an insured State credit union has been convicted of 
            any criminal offense under section 1956 or 1957 of title 18, 
            the Attorney General shall provide to the Board a written 
            notification of the conviction and shall include a certified 
            copy of the order of conviction from the court rendering the 
            decision.
            (ii) Notice of termination

                After written notification from the Attorney General to 
            the Board of such a conviction, the Board shall issue to 
            such insured credit union a notice of its intention to 
            terminate the insured status of the insured credit union and 
            schedule a hearing on the matter, which shall be conducted 
            as a termination hearing pursuant to subsection (b) of this 
            section, except that no period for correction shall apply to 
            a notice issued under this subparagraph.

        (B) Conviction of title 31 offenses

            If a credit union is convicted of any criminal offense under 
        section 5322 or 5324 of title 31 after prior written 
        notification from the Attorney General, the Board may initiate 
        proceedings to terminate the insured status of such credit union 
        in the manner described in subparagraph (A).

        (C) Notice to State supervisor

            The Board shall simultaneously transmit a copy of any notice 
        under this paragraph to the appropriate State financial 
        institutions supervisor.

                    (2) Factors to be considered

        In determining whether to terminate insurance under paragraph 
    (1), the Board shall take into account the following factors:
            (A) The extent to which directors, committee members, or 
        senior executive officers (as defined by the Board in 
        regulations which the Board shall prescribe) of the credit union 
        knew of, or were involved in, the commission of the money 
        laundering offense of which the credit union was found guilty.
            (B) The extent to which the offense occurred despite the 
        existence of policies and procedures within the credit union 
        which were designed to prevent the occurrence of any such 
        offense.
            (C) The extent to which the credit union has fully 
        cooperated with law enforcement authorities with respect to the 
        investigation of the money laundering offense of which the 
        credit union was found guilty.
            (D) The extent to which the credit union has implemented 
        additional internal controls (since the commission of the 
        offense of which the credit union was found guilty) to prevent 
        the occurrence of any other money laundering offense.
            (E) The extent to which the interest of the local community 
        in having adequate deposit and credit services available would 
        be threatened by the termination of insurance.

       (3) Notice to State credit union supervisor and public

        When the order to terminate insured status initiated pursuant to 
    this subsection is final, the Board shall--
            (A) notify the commission, board, or authority (if any) 
        having supervision of the credit union described in paragraph 
        (1) at least 10 days prior to the effective date of the order of 
        the termination of the insured status of such credit union; and
            (B) publish notice of the termination of the insured status 
        of the credit union.

       (4) Temporary insurance of previously insured deposits

        Upon termination of the insured status of any State credit union 
    pursuant to paragraph (1), the deposits of such credit union shall 
    be treated in accordance with subsection (d)(2) of this section.

                       (5) Successor liability

        This subsection shall not apply to a successor to the interests 
    of, or a person who acquires, an insured credit union that violated 
    a provision of law described in paragraph (1), if the successor 
    succeeds to the interests of the violator, or the acquisition is 
    made, in good faith and not for purposes of evading this subsection 
    or regulations prescribed under this subsection.

(June 26, 1934, ch. 750, title II, Sec. 206, as added Pub. L. 91-468, 
Sec. 1(3), Oct. 19, 1970, 84 Stat. 1003; amended Pub. L. 93-383, title 
VII, Sec. 728, Aug. 22, 1974, 88 Stat. 720; Pub. L. 95-22, title III, 
Sec. 307, Apr. 19, 1977, 91 Stat. 52; Pub. L. 95-630, title I, 
Secs. 107(a)(4), (c)(4), (d)(4), (e)(4), 111(d), title V, Sec. 502(b), 
Nov. 10, 1978, 92 Stat. 3652, 3656, 3659, 3663, 3670, 3681; Pub. L. 97-
320, title I, Secs. 132, 141(a)(8), title IV, Secs. 424(a), (d)(9), (e), 
427(c), Oct. 15, 1982, 96 Stat. 1487, 1489, 1522, 1523, 1525; Pub. L. 
98-369, div. B, title VIII, Sec. 2812, July 18, 1984, 98 Stat. 1206; 
Pub. L. 99-570, title I, Sec. 1359(d), Oct. 27, 1986, 100 Stat. 3207-29; 
Pub. L. 100-86, title V, Sec. 509(a), title VII, Secs. 709-713, Aug. 10, 
1987, 101 Stat. 635, 653, 654; Pub. L. 101-73, title IX, Secs. 901(a), 
(b)(2), 902(b), 903(b), 904(b), 905(b), 906(b), 907(b), 908(b), 913(b), 
915(b), 920(b), title XII, Sec. 1217(b), Aug. 9, 1989, 103 Stat. 446, 
448, 451, 455, 458, 460, 462, 464, 477, 484, 486, 488, 546; Pub. L. 101-
647, title XXV, Secs. 2523(b), 2532(c), 2547(b), Nov. 29, 1990, 104 
Stat. 4870, 4881, 4887; Pub. L. 102-233, title III, Sec. 302(a), Dec. 
12, 1991, 105 Stat. 1767; Pub. L. 102-550, title XV, Secs. 1501(b), 
1503(b), 1504(b), Oct. 28, 1992, 106 Stat. 4044, 4050, 4053; Pub. L. 
103-325, title IV, Sec. 411(c)(2)(B), Sept. 23, 1994, 108 Stat. 2253; 
Pub. L. 105-219, title III, Sec. 301(b)(1), (g)(1), (2), Aug. 7, 1998, 
112 Stat. 930, 931.)

                       References in Text

    The Depository Institution Management Interlocks Act, referred to in 
subsec. (g)(2)(A)(iii), is title II of Pub. L. 95-630, Nov. 10, 1978, 92 
Stat. 3672, as amended, which is classified principally to chapter 33 
(Sec. 3201 et seq.) of this title. For complete classification of this 
Act to the Code, see Short Title note set out under section 3201 of this 
title and Tables.
    Section 1818(b)(8) of this title, referred to in subsec. 
(g)(7)(A)(ii), was redesignated section 1818(b)(9) by Pub. L. 102-242, 
title I, Sec. 131(c)(1), Dec. 19, 1991, 105 Stat. 2266.
    The Farm Credit Act of 1971, referred to in subsec. (g)(7)(A)(iv), 
(D)(ii), is Pub. L. 92-181, Dec. 10, 1971, 85 Stat. 583, as amended, 
which is classified generally to chapter 23 (Sec. 2001 et seq.) of this 
title. For complete classification of this Act to the Code, see Short 
Title note set out under section 2001 of this title and Tables.


                               Amendments

    1998--Subsec. (h)(1). Pub. L. 105-219, Sec. 301(g)(2), inserted ``or 
another (including, in the case of a State-chartered insured credit 
union, the State official having jurisdiction over the credit union)'' 
after ``appoint itself'' in introductory provisions.
    Subsec. (h)(1)(F), (G). Pub. L. 105-219, Sec. 301(b)(1)(A), added 
subpars. (F) and (G).
    Subsec. (h)(2)(A). Pub. L. 105-219, Sec. 301(b)(1)(B)(i), 
substituted ``Except as provided in subparagraph (C), in the case'' for 
``In the case''.
    Subsec. (h)(2)(C). Pub. L. 105-219, Sec. 301(b)(1)(B)(ii), added 
subpar. (C).
    Subsec. (k)(1). Pub. L. 105-219, Sec. 301(g)(1)(A), inserted ``or 
section 1790d of this title'' after ``this section'' in three places.
    Subsec. (k)(2)(A)(ii). Pub. L. 105-219, Sec. 301(g)(1)(B), inserted 
``, or any final order under section 1790d of this title'' before 
semicolon at end.
    1994--Subsecs. (h)(1)(C), (i)(1)(A)(ii), (v)(1)(B). Pub. L. 103-325 
substituted ``section 5322 or 5324 of title 31'' for ``section 5322 of 
title 31''.
    1992--Subsec. (g)(2). Pub. L. 102-550, Sec. 1504(b)(1), amended par. 
(2) generally. Prior to amendment, par. (2) read as follows: ``Whenever, 
in the opinion of the Board, any director, officer, or committee member 
of an insured credit union has committed any violation of the Depository 
Institution Management Interlocks Act, the Board may serve upon such 
director, officer, or committee member a written notice of its intention 
to remove him from office.''
    Subsec. (h)(1)(C) to (E). Pub. L. 102-550, Sec. 1501(b), added 
subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), 
respectively.
    Subsec. (i)(1). Pub. L. 102-550, Sec. 1504(b)(2), amended par. (1) 
generally, subdividing existing provisions into subpars. (A) to (D), 
and, in subpar. (A), including violations under section 1956, 1957, or 
1960 of title 18 or section 5322 of title 31 as reason for suspension of 
any violator from further participation in the affairs of the credit 
union.
    Subsec. (v). Pub. L. 102-550, Sec. 1503(b), added subsec. (v).
    1990--Subsec. (j)(1). Pub. L. 101-647, Sec. 2547(b)(2), which 
directed amendment of par. (1) by striking out after first sentence 
``Such hearing shall be private, unless the Board, in its discretion, 
after fully considering the views of the party afforded the hearing, 
determines that a public hearing is necessary to protect the public 
interest.'' was executed by striking out ``Such hearing shall be private 
unless the Board, in its discretion, after fully considering the views 
of the party afforded the hearing, determines that a public hearing is 
necessary to protect the public interest.'' as the probable intent of 
Congress.
    Subsec. (s). Pub. L. 101-647, Sec. 2547(b)(1), amended subsec. (s) 
generally. Prior to amendment, subsec. (s) read as follows:
    ``(1) In general.--The Board shall publish and make available to the 
public--
        ``(A) any final order issued with respect to any administrative 
    enforcement proceeding initiated by such agency under this section 
    or any other provision of law; and
        ``(B) any modification to or termination of any final order 
    described in subparagraph (A).
    ``(2) Delay of publication under exceptional circumstances.--If the 
Board makes a determination in writing that the publication of any final 
order pursuant to paragraph (1) would seriously threaten the safety or 
soundness of an insured credit union or other federally regulated 
depository institution, the Board may delay the publication of such 
order for a reasonable time.''
    Subsec. (t). Pub. L. 101-647, Sec. 2523(b), added subsec. (t).
    Subsec. (u). Pub. L. 101-647, Sec. 2532(c), added subsec. (u).
    1989--Subsec. (e)(1). Pub. L. 101-73, Sec. 901(b)(2)(A), (B), 
substituted references to institution-affiliated parties for references 
to directors, officers, committee members, agents, or other persons 
participating in the conduct of the affairs of credit unions.
    Subsec. (e)(3), (4). Pub. L. 101-73, Sec. 902(b)(1), added pars. (3) 
and (4).
    Subsec. (f)(1). Pub. L. 101-73, Sec. 902(b)(2)(B), substituted 
``significant'' for ``substantial'', struck out ``seriously'' before 
``weaken the condition of'' and before ``prejudice the interests of'', 
and inserted after first sentence ``Such order may include any 
requirement authorized under subsection (e)(3)(B) of this section.''
    Pub. L. 101-73, Sec. 901(b)(2)(B), (C), substituted references to 
institution-affiliated parties for references to directors, officers, 
committee members, employees, agents, or other persons participating in 
the conduct of the affairs of credit unions.
    Subsec. (f)(2). Pub. L. 101-73, Sec. 901(b)(2)(B), substituted 
references to institution-affiliated parties for references to 
directors, officers, committee members, employees, agents, or other 
persons participating in the conduct of the affairs of credit unions.
    Subsec. (f)(3), (4). Pub. L. 101-73, Sec. 902(b)(2)(A), (C), added 
par. (3) and redesignated former par. (3) as (4).
    Subsec. (g)(1). Pub. L. 101-73, Sec. 903(b)(1), amended par. (1) 
generally. Prior to amendment, par. (1) read as follows: ``Whenever, in 
the opinion of the Board, any director, officer, committee member, or 
employee of an insured credit union has committed any violation of law, 
rule, or regulation, or of a cease-and-desist order which has become 
final, or has engaged or participated in any unsafe or unsound practice 
in connection with the credit union, or has committed or engaged in any 
act, omission, or practice which constitutes a breach of his fiduciary 
duty as such director, officer, committee member, or employee and the 
Board determines that the credit union has suffered or will probably 
suffer substantial financial loss or other damage or that the interests 
of its insured members could be seriously prejudiced by reason of such 
violation or practice or breach of fiduciary duty, the Board may serve 
upon such director, officer, committee member, or employee a written 
notice of its intention to remove him from office.''
    Subsec. (g)(2). Pub. L. 101-73, Sec. 903(b)(2), redesignated par. 
(3) as (2) and struck out former par. (2) which read as follows: 
``Whenever, in the opinion of the Board, any director, officer, 
committee member, or employee of an insured credit union, by conduct or 
practice with respect to another insured credit union or other business 
institution which resulted in substantial financial loss or other 
damage, has evidenced his personal dishonesty or unfitness to continue 
as a director, officer, committee member, or employee, and, whenever, in 
the opinion of the Board, any agent or other person participating in the 
conduct of the affairs of an insured credit union, by conduct or 
practice with respect to such credit union or other insured credit union 
or other business institution which resulted in substantial financial 
loss or other damage, has evidenced his personal dishonesty or unfitness 
to participate in the conduct of the affairs of such insured credit 
union, the Board may serve upon such director, officer, committee 
member, employee, agent, or other person a written notice of its 
intention to remove him from office and/or to prohibit his further 
participation in any manner in the conduct of the affairs of such credit 
union.''
    Subsec. (g)(3). Pub. L. 101-73, Sec. 903(b)(2), added par. (3). 
Former par. (3) redesignated (2).
    Subsec. (g)(4). Pub. L. 101-73, Sec. 903(b)(2), redesignated par. 
(5) as (4) and struck out former par. (4) which provided for temporary 
suspension from office or prohibition from further participation in 
credit union activities.
    Subsec. (g)(5). Pub. L. 101-73, Sec. 903(b)(2), (3), added par. (5). 
Former par. (5) redesignated (4).
    Subsec. (g)(6). Pub. L. 101-73, Sec. 903(b)(4), substituted ``credit 
union under paragraph (3)'' for ``credit union under paragraph (4)'' and 
``person under paragraph (1) or (2)'' for ``person under paragraph (1), 
(2), or (3)''.
    Subsec. (g)(7). Pub. L. 101-73, Sec. 904(b), amended par. (7) 
generally, revising and restating as subpars. (A) to (F) provisions of 
former subpars. (A) and (B).
    Subsec. (h)(3). Pub. L. 101-73, Sec. 1217(b), inserted at end 
``Except as provided in this paragraph, no court may take any action, 
except at the request of the Board by regulation or order, to restrain 
or affect the exercise of powers or functions of the Board as 
conservator.''
    Subsec. (i)(1). Pub. L. 101-73, Sec. 906(b), struck out ``authorized 
by a United States attorney'' after ``is charged in any information, 
indictment, or complaint'', and substituted ``or an agreement to enter a 
pre-trial diversion or other similar program'' for ``with respect to 
such crime'' after ``judgment of conviction''.
    Pub. L. 101-73, Sec. 901(b)(2)(D)(i)-(iv), (vi), substituted 
references to institution-affiliated parties for references to 
directors, committee members, or officers of insured credit unions, or 
other persons participating in the conduct of the affairs of credit 
unions, and substituted ``whereupon such party (if a director, a 
committee member, or an officer)'' for ``whereupon such director, 
committee member, or officer''.
    Pub. L. 101-73, Sec. 901(b)(2)(D)(v), which directed the 
substitution of ``party'' for ``director, officer or other person'' 
could not be executed because ``director, officer or other person'' does 
not appear in par. (1).
    Subsec. (i)(3). Pub. L. 101-73, Sec. 901(b)(2)(E)(i)-(iv), 
substituted references to institution-affiliated parties for references 
to directors, committee members, officers, or other persons.
    Pub. L. 101-73, Sec. 901(b)(2)(E)(v), which directed the 
substitution of ``such party'' for ``said director, committee member, 
officer or other person'' was executed by making the substitution for 
``said director, committee member, officer, or other person'' after 
``whether the order removing'' in third sentence to reflect the probable 
intent of Congress.
    Subsec. (j)(2). Pub. L. 101-73, Sec. 920(b), substituted ``Any party 
to any proceeding under paragraph (1)'' for ``Any party to the 
proceeding, or any person required by an order issued under this section 
to cease and desist from any of the practices or violations stated 
therein,''.
    Pub. L. 101-73, Sec. 901(b)(2)(F), substituted ``institution-
affiliated party'' for ``director, officer, committee member, or other 
person''.
    Subsec. (k)(2). Pub. L. 101-73, Sec. 907(b), in amending par. (2) 
generally, designated existing provisions as cls. (i) to (iv), 
substituted provisions imposing a fine of $5,000 per day for violation 
of any law or regulation, a final or temporary order, any condition 
imposed in writing, or any written agreement for provisions imposing a 
fine of $1,000 per day for violation of any final order, authorizing the 
penalizing agency to compromise or modify such penalty, providing for 
assessment and collection of such penalty by written notice, and 
defining ``violates'', and added subpars. (B) to (L).
    Subsec. (k)(3). Pub. L. 101-73, Sec. 905(b), added par. (3).
    Subsec. (l). Pub. L. 101-73, Sec. 908(b), amended subsec. (l) 
generally. Prior to amendment, subsec. (l) read as follows: ``Any 
director, officer, or committee member, or former director, officer, or 
committee member, of an insured credit union or of a credit union any of 
the member accounts of which are insured, or any other person against 
whom there is outstanding and effective any notice or order (which is an 
order which has become final) served upon such director, officer, 
committee member, or other person under subsections (g)(4), (g)(5), or 
(i) of this section and who (i) participates in any manner in the 
conduct of the affairs of the credit union involved, or directly or 
indirectly solicits or procures, or transfers or attempts to transfer, 
or votes or attempts to vote, any proxies, consents, or authorizations 
in respect of any voting rights in such credit union, or (ii) without 
the prior written approval of the Board votes for a director, serves or 
acts as a director, officer, committee member, or employee of any credit 
union, shall upon conviction be fined not more than $5,000 or imprisoned 
for not more than one year, or both.''
    Subsec. (o). Pub. L. 101-73, Sec. 901(b)(2)(G), substituted 
``institution-affiliated party'' for ``director, officer, committee 
member or other person participating in the conduct of its affairs''.
    Subsec. (p). Pub. L. 101-73, Sec. 915(b), in first sentence, 
inserted ``or in connection with any claim for insured deposits or any 
examination or investigation under section 1784(b) of this title'' after 
``any proceeding under this section'', ``, in conducting the proceeding, 
examination, or investigation or considering the claim for insured 
deposits,'' after ``section, the Board'', and ``, claims, examinations, 
or investigations'' before period at end.
    Subsec. (r). Pub. L. 101-73, Sec. 901(a), added subsec. (r).
    Subsec. (s). Pub. L. 101-73, Sec. 913(b), added subsec. (s).
    1987--Pub. L. 100-86, Sec. 509(a), repealed Pub. L. 97-320, 
Sec. 141. See 1982 Amendment notes below.
    Subsec. (g)(1). Pub. L. 100-86, Sec. 709(1), substituted ``committee 
member, or employee'' for ``or committee member'' in three places.
    Subsec. (g)(2). Pub. L. 100-86, Sec. 709(2)-(4), substituted 
``committee member, or employee'' for ``or committee member'' in two 
places, substituted ``any agent or other person'' for ``any other 
person'', and inserted ``employee, agent,'' before ``or other person''.
    Subsec. (g)(7). Pub. L. 100-86, Sec. 710, added par. (7).
    Subsec. (h)(1)(C), (D). Pub. L. 100-86, Sec. 711, added subpars. (C) 
and (D).
    Subsec. (h)(2)(B). Pub. L. 100-86, Sec. 712, substituted ``30'' for 
``ninety''.
    Subsec. (h)(8), (9). Pub. L. 100-86, Sec. 713, added par. (8) and 
redesignated former par. (8) as (9).
    1986--Subsec. (k)(2)(A). Pub. L. 99-570, Sec. 1359(d)(2), inserted 
reference to subsec. (q) of this section.
    Subsec. (q). Pub. L. 99-570, Sec. 1359(d)(1), added subsec. (q).
    1984--Subsec. (d)(1). Pub. L. 98-369 inserted ``(1)'' after 
``subsection (a)'', ``maintain its deposit with and'', and provisions 
relating to termination of insured status and the obtaining of 
comparable insurance coverage from another source.
    1982--Subsec. (b)(2). Pub. L. 97-320, Sec. 132(b), substituted 
``subsection (j)'' for ``subsection (i)''.
    Pub. L. 97-320, Sec. 141(a)(8), which directed that, effective Oct. 
13, 1986, the provisions of law amended by section 132 of Pub. L. 97-320 
shall be amended to read as they would without such amendment, was 
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination 
Dates of 1982 Amendment note and Extension of Emergency Acquisition and 
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out under 
section 1464 of this title.
    Subsec. (g)(3) to (6). Pub. L. 97-320, Sec. 427(c)(1), added par. 
(3); redesignated former pars. (3) to (5) as (4) to (6), respectively; 
inserted reference to par. (3) in two places and substituted reference 
to par. (6) for par. (5) in par. (4); and inserted reference to par. (3) 
and substituted reference to par. (4) for par. (3) in par. (6).
    Subsecs. (h), (i). Pub. L. 97-320, Sec. 132(a), added subsec. (h) 
and redesignated former subsecs. (h) and (i) as (i) and (j), 
respectively.
    Pub. L. 97-320, Sec. 141(a)(8), which directed that, effective Oct. 
13, 1986, the provisions of law amended by section 132 of Pub. L. 97-320 
shall be amended to read as they would without such amendment, was 
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination 
Dates of 1982 Amendment note and Extension of Emergency Acquisition and 
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out under 
section 1464 of this title.
    Subsec. (j). Pub. L. 97-320, Sec. 132(a), (c), (d), redesignated 
former subsec. (i) as (j), substituted ``subsection (i)(3)'' for 
``subsection (h)(3)'' in first sentence and ``subsection (j)'' for 
``subsection (i)'' in fourth sentence of par. (1), and substituted 
``subsection (i)(1)'' for ``subsection (h)(1)'' after ``an order issued 
under'' in par. (2). Former subsec. (j) redesignated (k).
    Pub. L. 97-320, Sec. 141(a)(8), which directed that, effective Oct. 
13, 1986, the provisions of law amended by section 132 of Pub. L. 97-320 
shall be amended to read as they would without such amendment, was 
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination 
Dates of 1982 Amendment note and Extension of Emergency Acquisition and 
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out under 
section 1464 of this title.
    Subsec. (k). Pub. L. 97-320, Sec. 132(a)(1), redesignated former 
subsec. (j) as (k). Former subsec. (k) redesignated (l).
    Pub. L. 97-320, Sec. 141(a)(8), which directed that, effective Oct. 
13, 1986, the provisions of law amended by section 132 of Pub. L. 97-320 
shall be amended to read as they would without such amendment, was 
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination 
Dates of 1982 Amendment note and Extension of Emergency Acquisition and 
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out under 
section 1464 of this title.
    Subsec. (k)(2)(A), (D). Pub. L. 97-320, Sec. 424(a), (d)(9), (e), 
which directed insertion of proviso giving Board authority to 
compromise, etc., any civil money penalty imposed under this subsection 
and substitution of ``may be assessed'' for ``shall be assessed'' in 
subsec. (j)(2)(A), and substitution of ``twenty days from the service'' 
for ``ten days from the date'' in subsection (j)(2)(D), was executed to 
subsec. (k)(2)(A), (D) to reflect the probable intent of Congress and 
the redesignation of subsec. (j) as (k) by section 132(a)(1) of Pub. L. 
97-320.
    Subsec. (l). Pub. L. 97-320, Sec. 132(a)(1), (e), redesignated 
former subsec. (k) as (l) and substituted ``(i)'' for ``(h)'' after 
``(g)(3), (g)(4), or''. Former subsec. (l) redesignated (m).
    Pub. L. 97-320, Sec. 141(a)(8), which directed that, effective Oct. 
13, 1986, the provisions of law amended by section 132 of Pub. L. 97-320 
shall be amended to read as they would without such amendment, was 
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination 
Dates of 1982 Amendment note and Extension of Emergency Acquisition and 
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out under 
section 1464 of this title.
    Pub. L. 97-320, Sec. 427(c)(2), which directed substitution of 
reference to subsec. (g)(5) for subsec. (g)(3) in subsec. (k), was 
executed to subsec. (l) to reflect the probable intent of Congress and 
the redesignation of subsec. (k) as (l) by section 132(a)(1) of Pub. L. 
97-320.
    Subsec. (m). Pub. L. 97-320, Sec. 132(a)(1), (f), redesignated 
former subsec. (l) as (m) and substituted ``subjection (j)'' for 
``subsection (i)'' after ``paragraph (2) of'' and ``subsection (i)'' for 
``subsection (h)'' after ``an order issued under''. Former subsec. (m) 
redesignated (n).
    Pub. L. 97-320, Sec. 141(a)(8), which directed that, effective Oct. 
13, 1986, the provisions of law amended by section 132 of Pub. L. 97-320 
shall be amended to read as they would without such amendment, was 
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination 
Dates of 1982 Amendment note and Extension of Emergency Acquisition and 
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out under 
section 1464 of this title.
    Subsecs. (n) to (p). Pub. L. 97-320, Sec. 132(a)(1), redesignated 
former subsecs. (m) to (o) as (n) to (p), respectively.
    Pub. L. 97-320, Sec. 141(a)(8), which directed that, effective Oct. 
13, 1986, the provisions of law amended by section 132 of Pub. L. 97-320 
shall be amended to read as they would without such amendment, was 
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination 
Dates of 1982 Amendment note and Extension of Emergency Acquisition and 
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out under 
section 1464 of this title.
    1978--Subsecs. (a) to (d). Pub. L. 95-630, Sec. 502(b), substituted 
``Board'' for ``Administrator'' wherever appearing, and ``it'' and 
``its'' for ``he'' and ``his'', respectively, where appropriate.
    Subsec. (e). Pub. L. 95-630, Secs. 107(a)(4), 502(b), substituted 
``Board'' for ``Administrator'' wherever appearing, and in par. (1) 
extended coverage of provisions to include directors, officers, 
committee members, employees, agents, or other persons participating in 
the conduct of the affairs of any insured credit union or credit union 
which has insured accounts.
    Subsec. (f). Pub. L. 95-630, Secs. 107(c)(4), 502(b), substituted 
``Board'' for ``Administrator'' wherever appearing, inserted references 
to any director, officer, committee member, employee, agent, or other 
person participating in the conduct of the affairs of the credit union, 
and inserted in par. (1) ``prior to the completion of the proceedings 
conducted pursuant to paragraph (1) of subsection (e) of this section'' 
after ``its insured members'' and ``and to take affirmative action to 
prevent such insolvency, dissipation, condition, or prejudice pending 
completion of such proceedings'' after ``violation or practice''.
    Subsec. (g). Pub. L. 95-630, Secs. 107(d)(4), 502(b), substituted 
``Board'' for ``Administrator'' wherever appearing, in pars. (1), (2) 
``its'' for ``his'', in par. (3) ``it'' for ``he'', ``or prohibit him'' 
for ``and/or prohibit him'', ``suspension or prohibition'' for 
``suspension and/or prohibition'', and ``removal and prohibition'' for 
``removal and/or prohibition'', and in par. (4) ``or to prohibit'' for 
``and/or to prohibit'', ``removal or prohibition'' for ``removal and/or 
prohibition'', and ``or prohibition'' for ``and/or prohibition''.
    Subsec. (h). Pub. L. 95-630, Secs. 111(d)(1), 502(b), among other 
changes, substituted ``Board'' for ``Administrator'' wherever appearing, 
in par. (1) substituted ``Crime'' for ``felony'' in two places and 
``subsection (g) of this section'' for ``paragraph (1) or (2) of 
subsection (g) of this section'', inserted ``which is punishable by 
imprisonment for a term exceeding one year under State or Federal law'' 
after ``or breach of trust'' and ``, if continued service or 
participation by the individual may pose a threat to the interests of 
the credit union's members or may threaten to impair public confidence 
in the credit union'' after ``the Board may'' in two places, and 
inserted provision that any notice of suspension or order of removal 
issued under this paragraph remain effective and outstanding until the 
completion of any hearing or appeal authorized under paragraph (3) 
hereof unless terminated by the Board, and added par. (3).
    Subsec. (i). Pub. L. 95-630, Secs. 111(d)(2), (3), 502(b), 
substituted ``Board'' for ``Administrator'' wherever appearing, in par. 
(1) substituted ``its'' for ``his'' and ``it'' for ``he'' and ``him'' 
and inserted ``(other than the hearing provided for in subsection (h)(3) 
of this section)'' after ``provided for in this section'', and in par. 
(2) substituted ``subsection (h)(1)'' for ``subsection (h)''.
    Subsec. (j). Pub. L. 95-630, Secs. 107(e)(4), 502(b), designated 
existing provisions as par. (1), added par. (2), and substituted 
``Board'' for ``Administrator'' wherever appearing and ``its'' for 
``his'' in par. (1).
    Subsecs. (k) to (o). Pub. L. 95-630, Sec. 502(b), substituted 
``Board'' for ``Administrator'' wherever appearing.
    1977--Subsec. (g)(1). Pub. L. 95-22, Sec. 307(a), struck out ``and 
that such violation or practice or breach of fiduciary duty is one 
involving personal dishonesty on the part of such director, officer, or 
committee member'' after ``or breach of fiduciary duty''.
    Subsec. (g)(2). Pub. L. 95-22, Sec. 307(b), substituted ``dishonesty 
or unfitness'' for ``dishonesty and unfitness'' wherever appearing.
    1974--Subsec. (a). Pub. L. 93-383, Sec. 728(a), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (c). Pub. L. 93-383, Sec. 728(b), inserted ``(1)'' after 
``(a)''.
    Subsec. (d). Pub. L. 93-383, Sec. 728(c), designated existing 
provisions as par. (1) and added pars. (2) and (3).

                         Change of Name

    Oversight Board redesignated Thrift Depositor Protection Oversight 
Board, effective Feb. 1, 1992, see section 302(a) of Pub. L. 102-233, 
set out as a note under section 1441a of this title. Thrift Depositor 
Protection Oversight Board abolished, see section 14(a)-(d) of Pub. L. 
105-216, set out as a note under section 1441a of this title.


                    Effective Date of 1992 Amendment

    Section 1501(c) of Pub. L. 102-550 provided that: ``The amendments 
made by this section [amending this section and section 1821 of this 
title] shall take effect on December 20, 1992.''


                    Effective Date of 1989 Amendment

    Section 903(e) of Pub. L. 101-73 provided that: ``The amendments 
made by this section [amending this section and section 1818 of this 
title] shall apply with respect to violations committed and activities 
engaged in after the date of the enactment of this Act [Aug. 9, 1989].''


                    Effective Date of 1978 Amendment

    Amendment by sections 107(a)(4), (c)(4), (d)(4), and 111(d)(1)-(3) 
of Pub. L. 95-630 effective upon expiration of 120 days after Nov. 10, 
1978, see section 2101 of Pub. L. 95-630, set out as an Effective Date 
note under section 375b of this title.
    Amendment by section 107(e)(4) of Pub. L. 95-630 applicable to 
violations occurring or continuing after Nov. 10, 1978, see section 109 
of Pub. L. 95-630, set out as a note under section 93 of this title.
    Amendment by section 502(b) of Pub. L. 95-630 effective on 
expiration of 120 days after Nov. 10, 1978, and transitional provisions, 
see section 509 of Pub. L. 95-630, set out as a note under section 1752 
of this title.


      Effective Date of Regulations Prescribed Under 1986 Amendment

    The regulations required to be prescribed under amendment by Pub. L. 
99-570 effective at end of 3-month period beginning on October 27, 1986, 
see section 1364(e) of Pub. L. 99-570, set out as a note under section 
1464 of this title.


Extension of Emergency Acquisition and Net Worth Guarantee Provisions of 
                             Pub. L. 97-320

    No amendment made by section 141(a) of Pub. L. 97-320, set out as a 
note under section 1464 of this title, as in effect before Aug. 10, 
1987, to any other provision of law to be deemed to have taken effect 
before such date and any such provision of law to be in effect as if no 
such amendment had been made before such date, see section 509(c) of 
Pub. L. 100-86, set out as a note under section 1464 of this title.
    No amendment made by section 141(a) of Pub. L. 97-320, set out as a 
note under section 1464 of this title, as in effect on the day before 
Oct. 8, 1986, to any other provision of law to be deemed to have taken 
effect before such date and any such provision of law to be in effect as 
if no such amendment had taken effect before such date, see section 1(c) 
of Pub. L. 99-452, set out as a note under section 1464 of this title.
    Section 141(a) of Pub. L. 97-320, set out as a note under section 
1464 of this title, as in effect on the day after Aug. 27, 1986, 
applicable as if included in Pub. L. 97-320 on Oct. 15, 1982, with no 
amendment made by such section to any other provision of law to be 
deemed to have taken effect before Aug. 27, 1986, and any such provision 
of law to be in effect as if no such amendment had taken effect before 
Aug. 27, 1986, see section 1(c) of Pub. L. 99-400, set out as a note 
under section 1464 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1759, 1772d, 1782, 1784, 
1787, 3349, 3420 of this title; title 11 section 101; title 15 section 
57a; title 31 sections 3121, 9110; title 42 section 669a.



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