§ 1828. — Regulations governing insured depository institutions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1828]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1828. Regulations governing insured depository institutions
(a) Insurance logo
(1) Insured savings associations
Each insured savings association shall display at each place of
business maintained by such association a sign containing only the
following items:
(A) A statement that insured deposits are backed by the full
faith and credit of the United States Government.
(B) A statement that deposits are federally insured to
$100,000.
(C) The symbol of an eagle.
The sign shall not contain any reference to a Government agency and
shall accord each item substantially equal prominence.
(2) Insured banks
Not later than 30 days after August 9, 1989, each insured bank
shall display at each place of business maintained by such bank one
of the following:
(A) The sign required to be displayed by insured banks under
regulations prescribed by the Corporation in effect on January
1, 1989.
(B) The sign prescribed under paragraph (1).
(3) Regulations
The Corporation shall prescribe regulations to carry out the
purposes of this subsection, including regulations governing the
manner of display or use of such signs, except that the size of the
sign prescribed under paragraph (1) shall be similar to that
prescribed under paragraph (2)(A). Initial regulations under this
subsection shall be prescribed on August 9, 1989.
For each day an insured depository institution continues to violate any
provisions of this subsection or any lawful provisions of said
regulations, it shall be subject to a penalty of not more than $100,
which the Corporation may recover for its use.
(b) Payment of dividends by defaulting depository institutions
No insured depository institution shall pay any dividends on its
capital stock or interest on its capital notes or debentures (if such
interest is required to be paid only out of net profits) or distribute
any of its capital assets while it remains in default in the payment of
any assessment due to the Corporation; and any director or officer of
any insured depository institution who participates in the declaration
or payment of any such dividend or interest or in any such distribution
shall, upon conviction, be fined not more than $1,000 or imprisoned not
more than one year, or both: Provided, That, if such default is due to a
dispute between the insured depository institution and the Corporation
over the amount of such assessment, this subsection shall not apply if
the insured depository institution deposits security satisfactory to the
Corporation for payment upon final determination of the issue.
(c) Merger transactions; consent of banking agencies; emergency
approval; notice; uniform standards; antitrust actions; review
de novo; limitations; report to Congress; money laundering;
applicability
(1) Except with the prior written approval of the responsible
agency, which shall in every case referred to in this paragraph be the
Corporation, no insured depository institution shall--
(A) merge or consolidate with any noninsured bank or
institution;
(B) assume liability to pay any deposits (including liabilities
which would be ``deposits'' except for the proviso in section
1813(l)(5) of this title) made in, or similar liabilities of, any
noninsured bank or institution; or
(C) transfer assets to any noninsured bank or institution in
consideration of the assumption of liabilities for any portion of
the deposits made in such insured depository institution.
(2) No insured depository institution shall merge or consolidate
with any other insured depository institution or, either directly or
indirectly, acquire the assets of, or assume liability to pay any
deposits made in, any other insured depository institution except with
the prior written approval of the responsible agency, which shall be--
(A) the Comptroller of the Currency if the acquiring, assuming,
or resulting bank is to be a national bank or a District bank;
(B) the Board of Governors of the Federal Reserve System if the
acquiring, assuming, or resulting bank is to be a State member bank
(except a District bank);
(C) the Corporation if the acquiring, assuming, or resulting
bank is to be a State nonmember insured bank (except a District bank
or a savings bank supervised by the Director of the Office of Thrift
Supervision); and
(D) the Director of the Office of Thrift Supervision if the
acquiring, assuming, or resulting institution is to be a savings
association.
(3) Notice of any proposed transaction for which approval is
required under paragraph (1) or (2) (referred to hereafter in this
subsection as a ``merger transaction'') shall, unless the responsible
agency finds that it must act immediately in order to prevent the
probable default of one of the banks or savings associations involved,
be published--
(A) prior to the granting of approval of such transaction,
(B) in a form approved by the responsible agency,
(C) at appropriate intervals during a period at least as long as
the period allowed for furnishing reports under paragraph (4) of
this subsection, and
(D) in a newspaper of general circulation in the community or
communities where the main offices of the banks or savings
associations involved are located, or, if there is no such newspaper
in any such community, then in the newspaper of general circulation
published nearest thereto.
(4) In the interests of uniform standards, before acting on any
application for approval of a merger transaction, the responsible
agency, unless it finds that it must act immediately in order to prevent
the probable failure of one of the banks or savings associations
involved, shall request reports on the competitive factors involved from
the Attorney General and the other Federal banking agencies referred to
in this subsection. The reports shall be furnished within thirty
calendar days of the date on which they are requested, or within ten
calendar days of such date if the requesting agency advises the Attorney
General and the other Federal banking agencies that an emergency exists
requiring expeditious action. Notwithstanding the preceding sentence, a
banking agency shall not be required to file a report requested by the
responsible agency under this paragraph if such banking agency advises
the responsible agency by the applicable date under the preceding
sentence that the report is not necessary because none of the effects
described in paragraph (5) are likely to occur as a result of the
transaction.
(5) The responsible agency shall not approve--
(A) any proposed merger transaction which would result in a
monopoly, or which would be in furtherance of any combination or
conspiracy to monopolize or to attempt to monopolize the business of
banking in any part of the United States, or
(B) any other proposed merger transaction whose effect in any
section of the country may be substantially to lessen competition,
or to tend to create a monopoly, or which in any other manner would
be in restraint of trade, unless it finds that the anticompetitive
effects of the proposed transaction are clearly outweighed in the
public interest by the probable effect of the transaction in meeting
the convenience and needs of the community to be served.
In every case, the responsible agency shall take into consideration the
financial and managerial resources and future prospects of the existing
and proposed institutions, and the convenience and needs of the
community to be served.
(6) The responsible agency shall immediately notify the Attorney
General of any approval by it pursuant to this subsection of a proposed
merger transaction. If the agency has found that it must act immediately
to prevent the probable failure of one of the banks or savings
associations involved and reports on the competitive factors have been
dispensed with, the transaction may be consummated immediately upon
approval by the agency. If the agency has advised the Attorney General
and the other Federal banking agencies of the existence of an emergency
requiring expeditious actions and has requested reports on the
competitive factors within ten days, the transaction may not be
consummated before the fifth calendar day after the date of approval by
the agency. In all other cases, the transaction may not be consummated
before the thirtieth calendar day after the date of approval by the
agency or, if the agency has not received any adverse comment from the
Attorney General of the United States relating to competitive factors,
such shorter period of time as may be prescribed by the agency with the
concurrence of the Attorney General, but in no event less than 15
calendar days after the date of approval.
(7)(A) Any action brought under the antitrust laws arising out of a
merger transaction shall be commenced prior to the earliest time under
paragraph (6) at which a merger transaction approved under paragraph (5)
might be consummated. The commencement of such an action shall stay the
effectiveness of the agency's approval unless the court shall otherwise
specifically order. In any such action, the court shall review de novo
the issues presented.
(B) In any judicial proceeding attacking a merger transaction
approved under paragraph (5) on the ground that the merger transaction
alone and of itself constituted a violation of any antitrust laws other
than section 2 of title 15, the standards applied by the court shall be
identical with those that the banking agencies are directed to apply
under paragraph (5).
(C) Upon the consummation of a merger transaction in compliance with
this subsection and after the termination of any antitrust litigation
commenced within the period prescribed in this paragraph, or upon the
termination of such period if no such litigation is commenced therein,
the transaction may not thereafter be attacked in any judicial
proceeding on the ground that it alone and of itself constituted a
violation of any antitrust laws other than section 2 of title 15, but
nothing in this subsection shall exempt any bank or savings association
resulting from a merger transaction from complying with the antitrust
laws after the consummation of such transaction.
(D) In any action brought under the antitrust laws arising out of a
merger transaction approved by a Federal supervisory agency pursuant to
this subsection, such agency, and any State banking supervisory agency
having jurisdiction within the State involved, may appear as a part of
its own motion and as of right, and be represented by its counsel.
(8) For the purposes of this subsection, the term ``antitrust laws''
means the Act of July 2, 1890 (the Sherman Antitrust Act), the Act of
October 15, 1914 (the Clayton Act), and any other Acts in pari materia.
(9) Each of the responsible agencies shall include in its annual
report to the Congress a description of each merger transaction approved
by it during the period covered by the report, along with--
(A) the name and total resources of each bank or savings
association involved;
(B) whether a report was submitted by the Attorney General under
paragraph (4), and, if so, a summary by the Attorney General of the
substance of such report; and
(C) a statement by the responsible agency of the basis for its
approval.
(10) Until June 30, 1976, the responsible agency shall not grant any
approval required by law which has the practical effect of permitting a
conversion from the mutual to the stock form of organization, including
approval of any application pending on the date of enactment of this
subsection, except that this sentence shall not be deemed to limit now
or hereafter the authority of the responsible agency to grant approvals
in cases where the responsible agency finds that it must act in order to
maintain the safety, soundness, and stability of an insured depository
institution. The responsible agency may by rule, regulation, or
otherwise and under such civil penalties (which shall be cumulative to
any other remedies) as it may prescribe take whatever action it deems
necessary or appropriate to implement or enforce this subsection.
(11) Money laundering.--In every case, the responsible agency, shall
take into consideration the effectiveness of any insured depository
institution involved in the proposed merger transaction in combatting
money laundering activities, including in overseas branches.
(12) The provisions of this subsection do not apply to any merger
transaction involving a foreign bank if no party to the transaction is
principally engaged in business in the United States.
(d) Branch banks
(1) No State nonmember insured bank (except a District bank) shall
establish and operate any new domestic branch unless it shall have the
prior written consent of the Corporation, and no State nonmember insured
bank (except a District bank) shall move its main office or any such
branch from one location to another without such consent. No foreign
bank may move any insured branch from one location to another without
such consent. The factors to be considered in granting or withholding
the consent of the Corporation under this subsection shall be those
enumerated in section 1816 of this title.
(2) No State nonmember insured bank shall establish or operate any
foreign branch, except with the prior written consent of the Corporation
and upon such conditions and pursuant to such regulations as the
Corporation may prescribe from time to time.
(3) Exclusive authority for additional branches.--
(A) In general.--Effective June 1, 1997, a State nonmember bank
may not acquire, establish, or operate a branch in any State other
than the bank's home State (as defined in section 1831u(f)(4) \1\ of
this title) or a State in which the bank already has a branch unless
the acquisition, establishment, or operation of a branch in such
State by a State nonmember bank is authorized under this subsection
or section 1823(f), 1823(k), or 1831u of this title.
---------------------------------------------------------------------------
\1\ See References in Text note below.
---------------------------------------------------------------------------
(B) Retention of branches.--In the case of a State nonmember
bank which relocates the main office of such bank from 1 State to
another State after May 31, 1997, the bank may retain and operate
branches within the State which was the bank's home State (as
defined in section 1831u(f)(4) \1\ of this title) before the
relocation of such office only to the extent the bank would be
authorized, under this section or any other provision of law
referred to in subparagraph (A), to acquire, establish, or commence
to operate a branch in such State if--
(i) the bank had no branches in such State; or
(ii) the branch resulted from--
(I) an interstate merger transaction approved pursuant
to section 1831u of this title; or
(II) a transaction after May 31, 1997, pursuant to which
the bank received assistance from the Corporation under
section 1823(c) of this title.
(4) State ``opt-in'' election to permit interstate branching through
de novo branches.--
(A) In general.--Subject to subparagraph (B), the Corporation
may approve an application by an insured State nonmember bank to
establish and operate a de novo branch in a State (other than the
bank's home State) in which the bank does not maintain a branch if--
(i) there is in effect in the host State a law that--
(I) applies equally to all banks; and
(II) expressly permits all out-of-State banks to
establish de novo branches in such State; and
(ii) the conditions established in, or made applicable to
this paragraph by, subparagraph (B) are met.
(B) Conditions on establishment and operation of interstate
branch.--
(i) Establishment.--An application by an insured State
nonmember bank to establish and operate a de novo branch in a
host State shall be subject to the same requirements and
conditions to which an application for a merger transaction is
subject under paragraphs (1), (3), and (4) of section 1831u(b)
of this title.
(ii) Operation.--Subsections (c) and (d)(2) of section 1831u
of this title shall apply with respect to each branch of an
insured State nonmember bank which is established and operated
pursuant to an application approved under this paragraph in the
same manner and to the same extent such provisions of such
section apply to a branch of a State bank which resulted from a
merger transaction under such section 1831u of this title.
(C) ``De novo branch'' defined.--For purposes of this paragraph,
the term ``de novo branch'' means a branch of a State bank which--
(i) is originally established by the State bank as a branch;
and
(ii) does not become a branch of such bank as a result of--
(I) the acquisition by the bank of an insured depository
institution or a branch of an insured depository
institution; or
(II) the conversion, merger, or consolidation of any
such institution or branch.
(D) ``Home state'' defined.--The term ``home State'' means the
State by which a State bank is chartered.
(E) ``Host state'' defined.--The term ``host State'' means, with
respect to a bank, a State, other than the home State of the bank,
in which the bank maintains, or seeks to establish and maintain, a
branch.
(e) Indemnity insurance
The Corporation may require any insured depository institution to
provide protection and indemnity against burglary, defalcation, and
other similar insurable losses. Whenever any insured depository
institution refuses to comply with any such requirement the Corporation
may contract for such protection and indemnity and add the cost thereof
to the assessment otherwise payable by such bank.\2\
---------------------------------------------------------------------------
\2\ So in original. Probably should be ``insured depository
institution''.
---------------------------------------------------------------------------
(f) Publication of reports
Whenever any insured depository institution (except a national bank
or a District bank), after written notice of the recommendations of the
Corporation based on a report of examination of such insured depository
institution by an examiner of the Corporation, shall fail to comply with
such recommendations within one hundred and twenty days after such
notice, the Corporation shall have the power, and is authorized, to
publish only such part of such report of examination as relates to any
recommendation not complied with: Provided, That notice of intention to
make such publication shall be given to the insured depository
institution at least ninety days before such publication is made.
(g) Interest or dividend on demand deposits; definitions; regulation of
interest rates
(1) The Board of Directors shall by regulation prohibit the payment
of interest or dividends on demand deposits in insured nonmember banks
and in insured branches of foreign banks and for such purpose it may
define the term ``demand deposits''; but such exceptions from this
prohibition shall be made as are now or may hereafter be prescribed with
respect to deposits payable on demand in member banks by section 19 of
the Federal Reserve Act, as amended, or by regulation of the Board of
Governors of the Federal Reserve System. The Board of Directors may from
time to time, after consulting with the Board of Governors of the
Federal Reserve System and the Director of the Office of Thrift
Supervision, prescribe rules governing the advertisement of interest or
dividends on deposits by insured nonmember banks (including insured
mutual savings banks) on time and savings deposits. The Board of
Directors is authorized for the purposes of this subsection to define
the terms ``time deposits'' and ``savings deposits'', to determine what
shall be deemed a payment of interest, and to prescribe such regulations
as it may deem necessary to effectuate the purposes of this subsection
and to prevent evasions thereof. The provisions of this subsection and
of regulations issued thereunder shall also apply, in the discretion of
the Board of Directors, to obligations other than deposits that are
undertaken by insured nonmember banks or their affiliates. As used in
this subsection, the term ``affiliate'' has the same meaning as when
used in section 221a(b) of this title, except that the term ``member
bank'', as used in such section 221a(b), shall be deemed to refer to an
insured nonmember bank. During the period commencing on October 15,
1962, and ending on October 15, 1968, the provisions of this subsection
shall not apply to the rate of interest which may be paid by insured
nonmember banks on time deposits of foreign governments, monetary and
financial authorities of foreign governments when acting as such, or
international financial institutions of which the United States is a
member. The authority conferred by this subsection shall also apply to
noninsured banks in any State if the total amount of time and savings
deposits held in all such banks in the State, plus the total amount of
deposits, shares, and withdrawable accounts held in all building and
loan, savings and loan, and homestead associations (including
cooperative banks) in the State which are not members of a Federal home
loan bank, is more than 20 per centum of the total amount of such
deposits, shares, and withdrawable accounts held in all banks, and
building and loan, savings and loan, and homestead associations
(including cooperative banks) in the State. Such authority shall only be
exercised by the Board of Directors with respect to such noninsured
banks prior to July 31, 1970, to limit the rates of interest or
dividends which such banks may pay on time and savings deposits to
maximum rates not lower than 5\1/2\ per centum per annum. Whenever it
shall appear to the Board of Directors that any noninsured bank or any
affiliate thereof is engaged or has engaged or is about to engage in any
acts or practices which constitute or will constitute a violation of the
provisions of this subsection or of any regulations thereunder, the
Board of Directors may, in its discretion, bring an action in the United
States district court for the judicial district in which the principal
office of the noninsured bank or affiliate thereof is located to enjoin
such acts or practices, to enforce compliance with this subsection or
any regulations thereunder, or for a combination of the foregoing, and
such courts shall have jurisdiction of such actions, and, upon a proper
showing, an injunction, restraining order, or other appropriate order
may be granted without bond.
(2) Notwithstanding the provisions of paragraph (1), an insured
nonmember bank may permit withdrawals to be made automatically from a
savings deposit that consists only of funds in which the entire
beneficial interest is held by one or more individuals through payment
to the bank itself or through transfer of credit to a demand deposit or
other account pursuant to written authorization from the depositor to
make such payments or transfers in connection with checks or drafts
drawn upon the bank, pursuant to terms and conditions prescribed by the
Board of Directors.
(h) Penalties
Any insured depository institution which willfully fails or refuses
to file any certified statement or pay any assessment required under
this chapter shall be subject to a penalty of not more than $100 for
each day that such violations continue, which penalty the Corporation
may recover for its use: Provided, That this subsection shall not be
applicable under the circumstances stated in the proviso of subsection
(b) of this section.
(i) Reduction or retirement of capital stock, notes, or debentures;
conversion of insured Federal depository institutions to insured
State banks or noninsured institutions; consent of banking
agencies; applicability
(1) No insured State nonmember bank (except a District bank) shall,
without the prior consent of the Corporation, reduce the amount or
retire any part of its common or preferred capital stock, or retire any
part of its capital notes or debentures.
(2) No insured Federal depository institution shall convert into an
insured State depository institution if its capital stock or its surplus
will be less than the capital stock or surplus, respectively, of the
converting bank at the time of the shareholder's meeting approving such
conversion, without the prior written consent of--
(A) the Comptroller of the Currency if the resulting bank is to
be a District bank;
(B) the Board of Governors of the Federal Reserve System if the
resulting bank is to be a State member bank (except a District
bank);
(C) the Corporation if the resulting bank is to be a State
nonmember insured bank (except a District bank); and
(D) the Director of the Office of Thrift Supervision if the
resulting institution is to be an insured State savings association.
(3) Without the prior written consent of the Corporation, no insured
depository institution shall convert into a noninsured bank or
institution.
(4) In granting or withholding consent under this subsection, the
responsible agency shall consider--
(A) the financial history and condition of the bank,
(B) the adequacy of its capital structure,
(C) its future earnings prospects,
(D) the general character and fitness of its management,
(E) the convenience and needs of the community to be served, and
(F) whether or not its corporate powers are consistent with the
purposes of this chapter.
(j) Restrictions on transactions with affiliates and insiders
(1) Transactions with affiliates
(A) In general
Sections 371c and 371c-1 of this title shall apply with
respect to every nonmember insured bank in the same manner and
to the same extent as if the nonmember insured bank were a
member bank.
(B) ``Affiliate'' defined
For the purpose of subparagraph (A), any company that would
be an affiliate (as defined in sections 371c and 371c-1 of this
title) of a nonmember insured bank if the nonmember insured bank
were a member bank shall be deemed to be an affiliate of that
nonmember insured bank.
(2) Extensions of credit to officers, directors, and
principal shareholders
Sections 375a and 375b of this title shall apply with respect to
every nonmember insured bank in the same manner and to the same
extent as if the nonmember insured bank were a member bank.
(3) Avoiding extraterritorial application to foreign banks
(A) Transactions with affiliates
Paragraph (1) shall not apply with respect to a foreign bank
solely because the foreign bank has an insured branch.
(B) Extensions of credit to officers, directors, and principal
shareholders
Paragraph (2) shall not apply with respect to a foreign bank
solely because the foreign bank has an insured branch, but shall
apply with respect to the insured branch.
(C) ``Foreign bank'' defined
For purposes of this paragraph, the term ``foreign bank''
has the same meaning as in section 3101(7) of this title.
(k) Authority to regulate or prohibit certain forms of benefits to
institution-affiliated parties
(1) Golden parachutes and indemnification payments
The Corporation may prohibit or limit, by regulation or order,
any golden parachute payment or indemnification payment.
(2) Factors to be taken into account
The Corporation shall prescribe, by regulation, the factors to
be considered by the Corporation 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 depository institution or depository
institution holding company that has had a material affect on
the financial condition of the institution.
(B) Whether there is a reasonable basis to believe that the
institution-affiliated party is substantially responsible for
the insolvency of the depository institution or depository
institution holding company, the appointment of a conservator or
receiver for the depository institution, or the depository
institution's troubled condition (as defined in the regulations
prescribed pursuant to section 1831i(f) of this title).
(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
institution.
(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
federally insured 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
insured depository institution or depository institution holding
company 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 insured depository institution or depository institution
holding company 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 institution
or holding company 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 institution to creditors; 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 insured depository institution or depository institution
holding company for the benefit of any institution-affiliated
party pursuant to an obligation of such institution or holding
company that--
(i) is contingent on the termination of such party's
affiliation with the institution or holding company; and
(ii) is received on or after the date on which--
(I) the insured depository institution or depository
institution holding company, or any insured depository
institution subsidiary of such holding company, is
insolvent;
(II) any conservator or receiver is appointed for
such institution;
(III) the institution's appropriate Federal banking
agency determines that the insured depository
institution is in a troubled condition (as defined in
the regulations prescribed pursuant to section 1831i(f)
of this title);
(IV) the insured depository institution has been
assigned a composite rating by the appropriate Federal
banking agency or the Corporation of 4 or 5 under the
Uniform Financial Institutions Rating System; or
(V) the insured depository institution is subject to
a proceeding initiated by the Corporation to terminate
or suspend deposit insurance for such institution.
(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 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 insured depository institution or depository
institution holding company 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
appropriate Federal banking agency 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 insured depository
institution; or
(iii) is required to take any affirmative action
described in section 1818(b)(6) of this title with respect
to such institution.
(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 insured depository institution or depository
institution holding company 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 institution or
holding company which is described in paragraph (5)(A).
(l) Acquisition of foreign banks or entities
When authorized by State law, a State nonmember insured bank may,
but only with the prior written consent of the Corporation and upon such
conditions and under such regulations as the Corporation may prescribe
from time to time, acquire and hold, directly or indirectly, stock or
other evidences of ownership in one or more banks or other entities
organized under the law of a foreign country or a dependency or insular
possession of the United States and not engaged, directly or indirectly,
in any activity in the United States except as, in the judgment of the
Board of Directors, shall be incidental to the international or foreign
business of such foreign bank or entity; and, notwithstanding the
provisions of subsection (j) of this section, such State nonmember
insured bank may, as to such foreign bank or entity, engage in
transactions that would otherwise be covered thereby, but only in the
manner and within the limit prescribed by the Corporation by general or
specific regulation or ruling.
(m) Activities of savings associations and their subsidiaries
(1) Procedures
When an insured savings association establishes or acquires a
subsidiary or when an insured savings association elects to conduct
any new activity through a subsidiary that the insured savings
association controls, the insured savings association--
(A) shall notify the Corporation and the Director of the
Office of Thrift Supervision not less than 30 days prior to the
establishment, or acquisition, of any such subsidiary, and not
less than 30 days prior to the commencement of any such
activity, and in either case shall provide at that time such
information as each such agency may, by regulation, require; and
(B) shall conduct the activities of the subsidiary in
accordance with regulations and orders of the Director of the
Office of Thrift Supervision.
(2) Enforcement powers
With respect to any subsidiary of an insured savings
association:
(A) the Corporation and the Director of the Office of Thrift
Supervision shall each have, with respect to such subsidiary,
the respective powers that each has with respect to the insured
savings association pursuant to this section or section 1818 of
this title; and
(B) the Director of the Office of Thrift Supervision may
determine, after notice and opportunity for hearing, that the
continuation by the insured savings association of its ownership
or control of, or its relationship to, the subsidiary--
(i) constitutes a serious risk to the safety, soundness,
or stability of the insured savings association, or
(ii) is inconsistent with sound banking principles or
with the purposes of this chapter.
Upon making any such determination, the Corporation or the
Director of the Office of Thrift Supervision shall have
authority to order the insured savings association to divest
itself of control of the subsidiary. The Director of the Office
of Thrift Supervision may take any other corrective measures
with respect to the subsidiary, including the authority to
require the subsidiary to terminate the activities or operations
posing such risks, as the Director may deem appropriate.
(3) Activities incompatible with deposit insurance
(A) In general
The Corporation may determine by regulation or order that
any specific activity poses a serious threat to the Savings
Association Insurance Fund. Prior to adopting any such
regulation, the Corporation shall consult with the Director of
the Office of Thrift Supervision and shall provide appropriate
State supervisors the opportunity to comment thereon, and the
Corporation shall specifically take such comments into
consideration. Any such regulation shall be issued in accordance
with section 553 of title 5. If the Board of Directors makes
such a determination with respect to an activity, the
Corporation shall have authority to order that no Savings
Association Insurance Fund member may engage in the activity
directly.
(B) Authority of Director
This section does not limit the authority of the Office of
Thrift Supervision to issue regulations to promote safety and
soundness or to enforce compliance with other applicable laws.
(C) Additional authority of FDIC to prevent serious risks to
insurance fund
Notwithstanding subparagraph (A), the Corporation may
prescribe and enforce such regulations and issue such orders as
the Corporation determines to be necessary to prevent actions or
practices of savings associations that pose a serious threat to
the Savings Association Insurance Fund or the Bank Insurance
Fund.
(4) ``Subsidiary'' defined
As used in this subsection, the term ``subsidiary'' does not
include an insured depository institution.
(5) Applicability to certain savings banks
Subparagraphs (A) and (B) of paragraph (1) of this subsection do
not apply to--
(A) any Federal savings bank that was chartered prior to
October 15, 1982, as a savings bank under State law, or
(B) a savings association that acquired its principal assets
from an institution that was chartered prior to October 15,
1982, as a savings bank under State law.
(n) Calculation of capital
No appropriate Federal banking agency shall allow any insured
depository institution to include an unidentifiable intangible asset in
its calculation of compliance with the appropriate capital standard, if
such unidentifiable intangible asset was acquired after April 12, 1989,
except to the extent permitted under section 1464(t) of this title.
(o) Real estate lending
(1) Uniform regulations
Not more than 9 months after December 19, 1991, each appropriate
Federal banking agency shall adopt uniform regulations prescribing
standards for extensions of credit that are--
(A) secured by liens on interests in real estate; or
(B) made for the purpose of financing the construction of a
building or other improvements to real estate.
(2) Standards
(A) Criteria
In prescribing standards under paragraph (1), the agencies
shall consider--
(i) the risk posed to the deposit insurance funds by
such extensions of credit;
(ii) the need for safe and sound operation of insured
depository institutions; and
(iii) the availability of credit.
(B) Variations permitted
In prescribing standards under paragraph (1), the
appropriate Federal banking agencies may differentiate among
types of loans--
(i) as may be required by Federal statute;
(ii) as may be warranted, based on the risk to the
deposit insurance fund; or
(iii) as may be warranted, based on the safety and
soundness of the institutions.
(3) Loan evaluation standard
No appropriate Federal banking agency shall adversely evaluate
an investment or a loan made by an insured depository institution,
or consider such a loan to be nonperforming, solely because the loan
is made to or the investment is in commercial, residential, or
industrial property, unless such investment or loan may affect the
institution's safety and soundness.
(4) Effective date
The regulations adopted under paragraph (1) shall become
effective not later than 15 months after December 19, 1991. Such
regulations shall continue in effect except as uniformly amended by
the appropriate Federal banking agencies, acting in concert.
(p) Periodic review of capital standards
Each appropriate Federal banking agency shall, in consultation with
the other Federal banking agencies, biennially review its capital
standards for insured depository institutions to determine whether those
standards require sufficient capital to facilitate prompt corrective
action to prevent or minimize loss to the deposit insurance funds,
consistent with section 1831o of this title.
(q) Sovereign risk
Section 633 of this title shall apply to every nonmember insured
bank in the same manner and to the same extent as if the nonmember
insured bank were a member bank.
(r) Subsidiary depository institutions as agents for certain affiliates
(1) In general
Any bank subsidiary of a bank holding company may receive
deposits, renew time deposits, close loans, service loans, and
receive payments on loans and other obligations as an agent for a
depository institution affiliate.
(2) Bank acting as agent is not a branch
Notwithstanding any other provision of law, a bank acting as an
agent in accordance with paragraph (1) for a depository institution
affiliate shall not be considered to be a branch of the affiliate.
(3) Prohibitions on activities
A depository institution may not--
(A) conduct any activity as an agent under paragraph (1) or
(6) which such institution is prohibited from conducting as a
principal under any applicable Federal or State law; or
(B) as a principal, have an agent conduct any activity under
paragraph (1) or (6) which the institution is prohibited from
conducting under any applicable Federal or State law.
(4) Existing authority not affected
No provision of this subsection shall be construed as
affecting--
(A) the authority of any depository institution to act as an
agent on behalf of any other depository institution under any
other provision of law; or
(B) whether a depository institution which conducts any
activity as an agent on behalf of any other depository
institution under any other provision of law shall be considered
to be a branch of such other institution.
(5) Agency relationship required to be consistent with safe
and sound banking practices
An agency relationship between depository institutions under
paragraph (1) or (6) shall be on terms that are consistent with safe
and sound banking practices and all applicable regulations of any
appropriate Federal banking agency.
(6) Affiliated insured savings associations
An insured savings association which was an affiliate of a bank
on July 1, 1994, may conduct activities as an agent on behalf of
such bank in the same manner as an insured bank affiliate of such
bank may act as agent for such bank under this subsection to the
extent such activities are conducted only in--
(A) any State in which--
(i) the bank is not prohibited from operating a branch
under any provision of Federal or State law; and
(ii) the savings association maintained an office or
branch and conducted business as of July 1, 1994; or
(B) any State in which--
(i) the bank is not expressly prohibited from operating
a branch under a State law described in section 1831u(a)(2)
of this title; and
(ii) the savings association maintained a main office
and conducted business as of July 1, 1994.
(s) Prohibition on certain affiliations
(1) In general
No depository institution may be an affiliate of, be sponsored
by, or accept financial support, directly or indirectly, from any
Government-sponsored enterprise.
(2) Exception for members of a Federal home loan bank
Paragraph (1) shall not apply with respect to the membership of
a depository institution in a Federal home loan bank.
(3) Routine business financing
Paragraph (1) shall not apply with respect to advances or other
forms of financial assistance provided by a Government-sponsored
enterprise pursuant to the statutes governing such enterprise.
(4) Student loans
(A) In general
This subsection shall not apply to any arrangement between
the Holding Company (or any subsidiary of the Holding Company
other than the Student Loan Marketing Association) and a
depository institution, if the Secretary approves the
affiliation and determines that--
(i) the reorganization of such Association in accordance
with section 1087-3 of title 20 will not be adversely
affected by the arrangement;
(ii) the dissolution of the Association pursuant to such
reorganization will occur before the end of the 2-year
period beginning on the date on which such arrangement is
consummated or on such earlier date as the Secretary deems
appropriate: Provided, That the Secretary may extend this
period for not more than 1 year at a time if the Secretary
determines that such extension is in the public interest and
is appropriate to achieve an orderly reorganization of the
Association or to prevent market disruptions in connection
with such reorganization, but no such extensions shall in
the aggregate exceed 2 years;
(iii) the Association will not purchase or extend credit
to, or guarantee or provide credit enhancement to, any
obligation of the depository institution;
(iv) the operations of the Association will be separate
from the operations of the depository institution; and
(v) until the ``dissolution date'' (as that term is
defined in section 1087-3 of title 20) has occurred, such
depository institution will not use the trade name or
service mark ``Sallie Mae'' in connection with any product
or service it offers if the appropriate Federal banking
agency for such depository institution determines that--
(I) the depository institution is the only
institution offering such product or service using the
``Sallie Mae'' name; and
(II) such use would result in the depository
institution having an unfair competitive advantage over
other depository institutions.
(B) Terms and conditions
In approving any arrangement referred to in subparagraph (A)
the Secretary may impose any terms and conditions on such an
arrangement that the Secretary considers appropriate,
including--
(i) imposing additional restrictions on the issuance of
debt obligations by the Association; or
(ii) restricting the use of proceeds from the issuance
of such debt.
(C) Additional limitations
In the event that the Holding Company (or any subsidiary of
the Holding Company) enters into such an arrangement, the value
of the Association's ``investment portfolio'' shall not at any
time exceed the lesser of--
(i) the value of such portfolio on the date of the
enactment of this subsection; or
(ii) the value of such portfolio on the date such an
arrangement is consummated. The term ``investment
portfolio'' shall mean all investments shown on the
consolidated balance sheet of the Association other than--
(I) any instrument or assets described in section
1087-2(d) of title 20;
(II) any direct noncallable obligations of the
United States or any agency thereof for which the full
faith and credit of the United States is pledged; or
(III) cash or cash equivalents.
(D) Enforcement
The terms and conditions imposed under subparagraph (B) may
be enforced by the Secretary in accordance with section 1087-3
of title 20.
(E) Definitions
For purposes of this paragraph, the following definition
shall apply--
(i) Association; Holding Company
Notwithstanding any provision in section 1813 of this
title, the terms ``Association'' and ``Holding Company''
have the same meanings as in section 1087-3(i) of title 20.
(ii) Secretary
The term ``Secretary'' means the Secretary of the
Treasury.
(5) ``Government-sponsored enterprise'' defined
For purposes of this subsection, the term ``Government-sponsored
enterprise'' has the meaning given to such term in section
1404(e)(1)(A) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
(t) Recordkeeping requirements
(1) Requirements
Each appropriate Federal banking agency, after consultation with
and consideration of the views of the Commission, shall establish
recordkeeping requirements for banks relying on exceptions contained
in paragraphs (4) and (5) of section 78c(a) of title 15. Such
recordkeeping requirements shall be sufficient to demonstrate
compliance with the terms of such exceptions and be designed to
facilitate compliance with such exceptions.
(2) Availability to Commission; confidentiality
Each appropriate Federal banking agency shall make any
information required under paragraph (1) available to the Commission
upon request. Notwithstanding any other provision of law, the
Commission shall not be compelled to disclose any such information.
Nothing in this paragraph shall authorize the Commission to withhold
information from Congress, or prevent the Commission from complying
with a request for information from any other Federal department or
agency or any self-regulatory organization requesting the
information for purposes within the scope of its jurisdiction, or
complying with an order of a court of the United States in an action
brought by the United States or the Commission. For purposes of
section 552 of title 5, this paragraph shall be considered a statute
described in subsection (b)(3)(B) of such section 552.
(3) Definition
As used in this subsection the term ``Commission'' means the
Securities and Exchange Commission.
(u) Limitation on claims
(1) In general
No person may bring a claim against any Federal banking agency
(including in its capacity as conservator or receiver) for the
return of assets of an affiliate or controlling shareholder of the
insured depository institution transferred to, or for the benefit
of, an insured depository institution by such affiliate or
controlling shareholder of the insured depository institution, or a
claim against such Federal banking agency for monetary damages or
other legal or equitable relief in connection with such transfer, if
at the time of the transfer--
(A) the insured depository institution is subject to any
direction issued in writing by a Federal banking agency to
increase its capital;
(B) the insured depository institution is undercapitalized
(as defined in section 1831o of this title); and
(C) for that portion of the transfer that is made by an
entity covered by section 1844(g) of this title or section 1831v
of this title, the Federal banking agency has followed the
procedure set forth in such section.
(2) Definition of claim
For purposes of paragraph (1), the term ``claim''--
(A) means a cause of action based on Federal or State law
that--
(i) provides for the avoidance of preferential or
fraudulent transfers or conveyances; or
(ii) provides similar remedies for preferential or
fraudulent transfers or conveyances; and
(B) does not include any claim based on actual intent to
hinder, delay, or defraud pursuant to such a fraudulent transfer
or conveyance law.
(v) Loans by insured institutions on their own stock
(1) General prohibition
No insured depository institution may make any loan or discount
on the security of the shares of its own capital stock.
(2) Exclusion
For purposes of this subsection, an insured depository
institution shall not be deemed to be making a loan or discount on
the security of the shares of its own capital stock if it acquires
the stock to prevent loss upon a debt previously contracted for in
good faith.
(w) Written employment references may contain suspicions of involvement
in illegal activity
(1) Authority to disclose information
Notwithstanding any other provision of law, any insured
depository institution, and any director, officer, employee, or
agent of such institution, may disclose in any written employment
reference relating to a current or former institution-affiliated
party of such institution which is provided to another insured
depository institution in response to a request from such other
institution, information concerning the possible involvement of such
institution-affiliated party in potentially unlawful activity.
(2) Information not required
Nothing in paragraph (1) shall be construed, by itself, to
create any affirmative duty to include any information described in
paragraph (1) in any employment reference referred to in paragraph
(1).
(3) Malicious intent
Notwithstanding any other provision of this subsection,
voluntary disclosure made by an insured depository institution, and
any director, officer, employee, or agent of such institution under
this subsection concerning potentially unlawful activity that is
made with malicious intent, shall not be shielded from liability
from the person identified in the disclosure.
(4) Definition
For purposes of this subsection, the term ``insured depository
institution'' includes any uninsured branch or agency of a foreign
bank.
(Sept. 21, 1950, ch. 967, Sec. 2[18], 64 Stat. 891; Pub. L. 86-463, May
13, 1960, 74 Stat. 129; Pub. L. 87-827, Sec. 2, Oct. 15, 1962, 76 Stat.
953; Pub. L. 89-79, Sec. 2, July 21, 1965, 79 Stat. 244; Pub. L. 89-356,
Sec. 1, Feb. 21, 1966, 80 Stat. 7; Pub. L. 89-485, Sec. 12(c), July 1,
1966, 80 Stat. 242; Pub. L. 89-597, Sec. 3, Sept. 21, 1966, 80 Stat.
824; Pub. L. 90-505, Sec. 2(b), Sept. 21, 1968, 82 Stat. 856; Pub. L.
91-151, title I, Secs. 2(a), 4(b), (c), Dec. 23, 1969, 83 Stat. 372,
374, 375; Pub. L. 93-100, Sec. 3, Aug. 16, 1973, 87 Stat. 342; Pub. L.
93-495, title I, Sec. 106, Oct. 28, 1974, 88 Stat. 1505; Pub. L. 93-501,
title I, Sec. 102(a), title III, Sec. 302, Oct. 29, 1974, 88 Stat. 1558,
1560; Pub. L. 95-369, Sec. 6(c)(25)-(28), Sept. 17, 1978, 92 Stat. 620;
Pub. L. 95-630, title I, Sec. 108, title III, Secs. 301(b), (c), 306,
Nov. 10, 1978, 92 Stat. 3664, 3675, 3677; Pub. L. 96-104, title II,
Sec. 202, Nov. 5, 1979, 93 Stat. 792; Pub. L. 96-161, title I,
Sec. 101(b), title II, Sec. 209, Dec. 28, 1979, 93 Stat. 1233, 1239;
Pub. L. 96-221, title II, Sec. 207(b)(2), (3), title III, Secs. 302(b),
307, title V, Sec. 529, Mar. 31, 1980, 94 Stat. 144, 146, 147, 168; Pub.
L. 97-320, title I, Sec. 113(n), (o), title IV, Secs. 410(d), 423,
424(b), (d)(10), (e), Oct. 15, 1982, 96 Stat. 1474, 1520, 1522, 1523;
Pub. L. 100-86, title I, Secs. 102(b), 103, title V, Sec. 504(b), Aug.
10, 1987, 101 Stat. 566, 632; Pub. L. 101-73, title II, Secs. 201, 221,
title IX, Secs. 905(d), 907(c), Aug. 9, 1989, 103 Stat. 187, 266, 460,
466; Pub. L. 101-647, title XXV, Sec. 2523(a), Nov. 29, 1990, 104 Stat.
4868; Pub. L. 102-242, title III, Secs. 304(a), 305(a), 306(k), Dec. 19,
1991, 105 Stat. 2354, 2359; Pub. L. 102-550, title XVI, Sec. 1605(a)(9),
Oct. 28, 1992, 106 Stat. 4086; Pub. L. 103-325, title III, Secs. 321(b),
324, 326(b)(1), title VI, Sec. 602(a)(44)-(50), Sept. 23, 1994, 108
Stat. 2226, 2227, 2229, 2290; Pub. L. 103-328, title I, Secs. 101(d),
102(b)(3)(A), 103(b), Sept. 29, 1994, 108 Stat. 2342, 2350, 2353; Pub.
L. 104-208, div. A, title II, Secs. 2615(b), 2704(d)(14)(U), (V), Sept.
30, 1996, 110 Stat. 3009-479, 3009-494; Pub. L. 105-277, div. H, Sec. 2,
Oct. 21, 1998, 112 Stat. 2681-854; Pub. L. 106-102, title II, Sec. 204,
title VII, Sec. 730, Nov. 12, 1999, 113 Stat. 1391, 1476; Pub. L. 106-
569, title XII, Sec. 1207(b), Dec. 27, 2000, 114 Stat. 3034; Pub. L.
107-56, title III, Secs. 327(b)(1), 355, Oct. 26, 2001, 115 Stat. 319,
324.)
References in Text
Act of July 2, 1890 (the Sherman Antitrust Act), referred to in
subsec. (c)(8), is classified to sections 1 to 7 of Title 15, Commerce
and Trade. For complete classification of the Act to the Code, see Short
Title note set out under section 1 of Title 15 and Tables.
Act of October 15, 1914 (the Clayton Act), referred to in subsec.
(c)(8), is act Oct. 15, 1914, ch. 323, 38 Stat. 730, as amended, which
is classified generally to sections 12, 13, 14 to 19, 20, 21, and 22 to
27 of Title 15, and sections 52 and 53 of Title 29, Labor. For further
details and complete classification of this Act to the Code, see
References in Text note set out under section 12 of Title 15 and Tables.
The date of enactment of this subsection, referred to in subsec.
(c)(10), probably means the date of enactment of Pub. L. 93-495, which
was approved Oct. 28, 1974.
Section 1831u of this title, referred to in subsec. (d)(3), was
subsequently amended, and subsec. (f)(4) of section 1831u no longer
defines the term ``home State''. However, such term is defined elsewhere
in that section.
Section 19 of the Federal Reserve Act, as amended, referred to in
subsec. (g)(1), is classified to sections 142, 371a, 371b, 371b-1, 374,
374a, 461, 463 to 466, 505, and 506 of this title. For provisions of
section 19 relating to payment of interest on demand deposits, see
section 371a of this title.
The date of the enactment of this subsection, referred to in subsec.
(s)(4)(C)(i), probably means the date of enactment of Pub. L. 105-277,
which added par. (4) of subsec. (s) and redesignated former par. (4) as
(5), and which was approved Oct. 21, 1998.
Section 1404(e)(1)(A) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, referred to in subsec. (s)(5), is
section 1404(e)(1)(A) of Pub. L. 101-73, which is set out as a note
under section 1811 of this title.
Codification
Section 202 of Pub. L. 96-104, cited as a credit to this section,
was repealed by section 212 of Pub. L. 96-161, effective at the close of
Dec. 27, 1979. The amendment of this section by that repealed provision,
described in the 1979 Amendment note set out under this section, shall
continue in effect for limited purposes pursuant to section 212 of Pub.
L. 96-161. See Savings Provisions note, describing the provisions of
section 212 of Pub. L. 96-161, set out under section 85 of this title.
Section 302 of Pub. L. 93-501, cited as a credit to this section,
was repealed by Pub. L. 96-104, Sec. 1, Nov. 5, 1979, 93 Stat. 789. The
amendment of this section by that repealed provision, described in the
1974 Amendment note set out under this section, shall continue in effect
for limited purposes pursuant to section 1 of Pub. L. 96-104. See
Savings Provisions note, describing the provisions of section 1 of Pub.
L. 96-104, set out under section 85 of this title.
Prior Provisions
Subsecs. (a) to (g) are derived from subsec (v)(2) to (8) of former
section 264 of this title. See Codification note set out under section
1811 of this title.
Amendments
2001--Subsec. (c)(11), (12). Pub. L. 107-56, Sec. 327(b)(1), added
par. (11) and redesignated former par. (11) as (12).
Subsec. (w). Pub. L. 107-56, Sec. 355, added subsec. (w).
2000--Subsecs. (t), (u). Pub. L. 106-569, Sec. 1207(b)(1),
redesignated subsec. (t), relating to limitation on claims, as (u).
Subsec. (v). Pub. L. 106-569, Sec. 1207(b)(2), added subsec. (v).
1999--Subsec. (t). Pub. L. 106-102, Sec. 730, added subsec. (t)
relating to limitation on claims.
Pub. L. 106-102, Sec. 204, which directed amendment of section by
adding at end subsec. (t) relating to recordkeeping requirements, was
executed by making the addition after subsec. (s) to reflect the
probable intent of Congress.
1998--Subsec. (s)(4), (5). Pub. L. 105-277 redesignated par. (4) as
(5) and added par. (4).
1996--Subsec. (m)(3). Pub. L. 104-208, Sec. 2704(d)(14)(U), which
directed substitution of ``Deposit Insurance Fund'' for ``Savings
Association Insurance Fund'' wherever appearing and striking of ``or the
Bank Insurance Fund'' in subpar. (C), was not executed. See Effective
Date of 1996 Amendment note below.
Subsec. (p). Pub. L. 104-208, Sec. 2704(d)(14)(V), which directed
substitution of ``Deposit Insurance Fund'' for ``deposit insurance
funds'', was not executed. See Effective Date of 1996 Amendment note
below.
Subsec. (s). Pub. L. 104-208, Sec. 2615(b), added subsec. (s).
1994--Subsec. (b). Pub. L. 103-325, Sec. 602(a)(44), substituted
``if the insured depository institution deposits'' for ``, if such bank
shall deposit''.
Subsec. (c)(1)(B). Pub. L. 103-325, Sec. 602(a)(45), inserted ``or''
at end.
Subsec. (c)(4). Pub. L. 103-325, Secs. 324, 602(a)(46), substituted
``other Federal banking agencies'' for ``other two banking agencies'' in
two places and inserted at end ``Notwithstanding the preceding sentence,
a banking agency shall not be required to file a report requested by the
responsible agency under this paragraph if such banking agency advises
the responsible agency by the applicable date under the preceding
sentence that the report is not necessary because none of the effects
described in paragraph (5) are likely to occur as a result of the
transaction.''
Subsec. (c)(6). Pub. L. 103-325, Secs. 321(b), 602(a)(47),
substituted ``other Federal banking agencies'' for ``other two banking
agencies'' and inserted before period at end ``or, if the agency has not
received any adverse comment from the Attorney General of the United
States relating to competitive factors, such shorter period of time as
may be prescribed by the agency with the concurrence of the Attorney
General, but in no event less than 15 calendar days after the date of
approval''.
Subsec. (c)(9). Pub. L. 103-325, Sec. 602(a)(48), substituted
``with--'' for ``with the following information:''.
Subsec. (d)(3). Pub. L. 103-328, Sec. 102(b)(3)(A), added par. (3).
Subsec. (d)(4). Pub. L. 103-328, Sec. 103(b), added par. (4).
Subsec. (f). Pub. L. 103-325, Sec. 602(a)(49), substituted ``such
insured depository institution'' for ``such bank'' and ``the insured
depository institution'' for ``the bank''.
Subsec. (k)(4)(A)(ii)(II). Pub. L. 103-325, Sec. 602(a)(50), struck
out ``or'' at end.
Subsec. (q). Pub. L. 103-325, Sec. 326(b)(1), added subsec. (q).
Subsec. (r). Pub. L. 103-328, Sec. 101(d), added subsec. (r).
1992--Subsec. (p). Pub. L. 102-550 redesignated subsec. (o),
relating to periodic review of capital standards, as (p).
1991--Subsec. (j). Pub. L. 102-242, Sec. 306(k), amended subsec. (j)
generally, revising and restating as pars. (1) to (3) provisions of
former pars. (1) to (6).
Subsec. (o). Pub. L. 102-242, Sec. 305(a), added subsec. (o)
relating to periodic review of capital standards.
Pub. L. 102-242, Sec. 304(a), added subsec. (o) relating to real
estate lending.
1990--Subsec. (k). Pub. L. 101-647 added subsec. (k).
1989--Subsec. (a). Pub. L. 101-73, Sec. 221(1), substituted heading
and pars. (1) to (3) for first two sentences which read as follows:
``Every insured bank shall display at each place of business maintained
by it a sign or signs, and shall include a statement to the effect that
its deposits are insured by the Corporation in all of its
advertisements: Provided, That the Board of Directors may exempt from
this requirement advertisements which do not relate to deposits or when
it is impractical to include such statement therein. The Board of
Directors shall prescribe by regulation the forms of such signs and the
manner of display and the substance of such statements and the manner of
use.''
Pub. L. 101-73, Sec. 201(a), substituted ``insured depository
institution'' for ``insured bank''.
Subsecs. (b), (c)(1), (2). Pub. L. 101-73, Sec. 201(a), substituted
``insured depository institution'' for ``insured bank'' wherever
appearing.
Subsec. (c)(2)(C), (D). Pub. L. 101-73, Sec. 221(2)(A), added
subpars. (C) and (D) and struck out former subpar. (C) which read as
follows: ``the Corporation if the acquiring, assuming or resulting bank
is to be a nonmember insured bank (except a District bank).''
Subsec. (c)(3). Pub. L. 101-73, Sec. 221(2)(C), (D), substituted
``banks or savings associations'' for ``banks'' wherever appearing and
``default'' for ``failure''.
Subsec. (c)(4), (6). Pub. L. 101-73, Sec. 221(2)(C), substituted
``banks or savings associations'' for ``banks''.
Subsec. (c)(7)(C), (9)(A). Pub. L. 101-73, Sec. 221(2)(C),
substituted ``bank or savings association'' for ``bank''.
Subsec. (c)(10). Pub. L. 101-73, Sec. 201(a), substituted ``insured
depository institution'' for ``insured bank''.
Subsec. (c)(12). Pub. L. 101-73, Sec. 221(2)(B), struck out par.
(12) which read as follows: ``The provisions of this subsection shall
not apply to any transaction where the acquiring, assuming, or resulting
institution is an insured Federal savings bank or an institution insured
by the Federal Savings and Loan Insurance Corporation, except that any
insured bank involved in the transaction shall notify the Corporation in
writing at least 30 days prior to consummation of the transaction and,
if any approval by the Federal Home Loan Bank Board or the Federal
Savings and Loan Insurance Corporation is required in connection
therewith, such approving authority shall provide the Corporation with
notification of the application for approval, shall consult with the
Corporation before disposing of the application, and shall provide
notification to the Corporation of the determination with respect to
said application.''
Subsecs. (e), (f). Pub. L. 101-73, Sec. 201(a), substituted
``insured depository institution'' for ``insured bank'' wherever
appearing.
Subsec. (g)(1). Pub. L. 101-73, Sec. 201(b), substituted ``Director
of the Office of Thrift Supervision'' for ``Federal Home Loan Bank
Board''.
Subsec. (h). Pub. L. 101-73, Sec. 201(a), substituted ``insured
depository institution'' for ``insured bank''.
Subsec. (i)(2). Pub. L. 101-73, Sec. 221(3)(A), (B), substituted
``insured Federal depository institution'' and ``insured State
depository institution'' for ``insured bank'' and ``insured State
bank'', respectively.
Subsec. (i)(2)(D). Pub. L. 101-73, Sec. 221(3)(C), (D), added
subpar. (D).
Subsec. (i)(3). Pub. L. 101-73, Sec. 201(a), substituted ``insured
depository institution'' for ``insured bank''.
Subsec. (i)(4)(D). Pub. L. 101-73, Sec. 221(3)(E), which directed
the amendment of subsec. (i)(2) by inserting ``and fitness'' after
``character'' in par. (4)(D), was executed to par. (4)(D) as the
probable intent of Congress.
Subsec. (i)(5). Pub. L. 101-73, Sec. 221(3)(F), which directed the
amendment of subsec. (i)(2) by striking out par. (5), was executed to
par. (5) as the probable intent of Congress. Prior to amendment, par.
(5) read as follows: ``Nothing in this subsection shall apply to a
conversion of an insured bank to an insured institution pursuant to
section 1726(e) of this title.''
Subsec. (j)(3)(D). Pub. L. 101-73, Sec. 201(a), substituted
``insured depository institution'' for ``insured bank''.
Subsec. (j)(4), (5). Pub. L. 101-73, Sec. 907(c), amended pars. (4)
and (5) generally. Prior to amendment, pars. (4) and (5) read as
follows:
``(4)(A) Any nonmember insured bank which violates or any officer,
director, employee, agent, or other person participating in the conduct
of the affairs of such nonmember insured bank who violates any provision
of section 371c, 371c-1, or 375b of this title, or any lawful regulation
issued pursuant thereto, or any provision of section 377 of this title,
shall forfeit and pay a civil penalty of not more than $1,000 per day
for each day during which such violation continues: Provided, That the
Corporation may, in its discretion, compromise, modify, or remit any
civil money penalty which is subject to imposition or has been imposed
under authority of this subsection. The penalty may be assessed and
collected by the Corporation by written notice. As used in this section,
the term `violates' includes without any limitation any action (alone or
with another or others) for or toward causing, bringing about,
participating in, counseling, or aiding or abetting a violation.
``(B) In determining the amount of the penalty the Corporation shall
take into account the appropriateness of the penalty with respect to the
size of financial resources and good faith of the member bank or person
charged, the gravity of the violation, the history of previous
violations, and such other matters as justice may require.
``(C) The nonmember insured bank or person charged shall be afforded
an opportunity for agency hearing, upon request made within ten days
after issuance of the notice of assessment. In such hearing all issues
shall be determined on the record pursuant to section 554 of title 5.
The agency determination shall be made by final order which may be
reviewed only as provided in subparagraph (D). If no hearing is
requested as herein provided the assessment shall constitute a final and
unappealable order.
``(D) Any nonmember insured bank or person against whom an order
imposing a civil money penalty has been entered after agency hearing
under this section may obtain review by the United States court of
appeals for the circuit in which the home office of the member bank is
located, or the United States Court of Appeals for the District of
Columbia Circuit, by filing a notice of appeal in such court within
twenty days from the service of such order, and simultaneously sending a
copy of such notice by registered or certified mail to the Corporation.
The Corporation shall promptly certify and file in such court the record
upon which the penalty was imposed, as provided in section 2112 of title
28. The findings of the Corporation shall be set aside if found to be
unsupported by substantial evidence as provided by section 706(2)(E) of
title 5.
``(E) If any nonmember insured bank or person fails to pay an
assessment after it has become a final and unappealable order, or after
the court of appeals has entered final judgment in favor of the agency,
the Corporation shall refer the matter to the Attorney General, who
shall recover the amount assessed by action in the appropriate United
States district court. In such action the validity and appropriateness
of the final order imposing the penalty shall not be subject to review.
``(F) The Corporation shall promulgate regulations establishing
procedures necessary to implement this paragraph.
``(G) All penalties collected under the authority of this paragraph
shall be covered into the Treasury of the United States.
``(5) The provisions of this subsection shall not apply to an
insured Federal savings bank.''
Subsec. (j)(6). Pub. L. 101-73, Sec. 905(d), added par. (6).
Subsecs. (m), (n). Pub. L. 101-73, Sec. 221(4), added subsecs. (m)
and (n).
1987--Subsec. (c)(12). Pub. L. 100-86, Sec. 504(b)(1), amended par.
(12) generally. Prior to amendment, par. (12) read as follows: ``The
provisions of this subsection shall not apply to any merger transaction
involving an insured Federal savings bank unless the resulting
institution will be an insured bank other than an insured Federal
savings bank.''
Subsec. (i)(5). Pub. L. 100-86, Sec. 504(b)(2), added par. (5).
Subsec. (j)(1). Pub. L. 100-86, Sec. 102(b)(1), inserted reference
to section 371c-1 of this title in two places.
Subsec. (j)(3). Pub. L. 100-86, Sec. 103(a), added par. (3) and
redesignated former par. (3) as (4).
Subsec. (j)(4). Pub. L. 100-86, Secs. 102(b)(2), 103, redesignated
former par. (3) as (4) and in subpar. (A) inserted ``, 371c-1,'' and
``or any provision of section 377 of this title,''.
Subsec. (j)(5). Pub. L. 100-86, Sec. 103(a), redesignated former
par. (4) as (5).
1982--Subsec. (c)(12). Pub. L. 97-320, Sec. 113(n), added par. (12).
Subsec. (j)(1). Pub. L. 97-320, Sec. 410(d), struck out ``within the
meaning of section 221a of this title and'' after ``of a nonmember
insured bank,''.
Subsec. (j)(2). Pub. L. 97-320, Sec. 423, inserted provisions
relating to the applicability of this subsection to any foreign bank as
defined in section 3101(7) of this title and its branch in the United
States.
Subsec. (j)(3)(A). Pub. L. 97-320, Sec. 424(b), (d)(10), inserted
proviso giving the Corporation discretionary authority to compromise,
etc., any civil money penalty imposed under this subsection, and
substituted ``may be assessed'' for ``shall be assessed''.
Subsec. (j)(3)(D). Pub. L. 97-424(e), substituted ``twenty days from
the service'' for ``ten days from the date''.
Subsec. (j)(4). Pub. L. 97-320, Sec. 113(o), added par. (4).
1980--Subsec. (g). Pub. L. 96-221, Secs. 302(b), 307, inserted
provisions identical to provisions inserted by section 101(b) of Pub. L.
96-161, designating existing provisions as par. (1) and adding par. (2),
and repealing the amendment made by Pub. L. 96-161. See Repeals and
Effective Date of 1980 Amendment notes below.
Pub. L. 96-221, Sec. 207(b)(2), (3), provided for the future
amendment of subsec. (g)(1) by striking out ``payment and'' and ``,
including limitations on the rates of interest or dividends that may be
paid'' in second sentence, and by striking out third, fifth, and eighth
sentences which read as follows: ``The Board of Directors may prescribe
different rate limitations for different classes of deposits, for
deposits of different amounts or with different maturities or subject to
different conditions regarding withdrawal or repayment, according to the
nature or location of insured nonmember banks or their depositors, or
according to such other reasonable bases as the Board of Directors may
deem desirable in the public interest. Such regulations shall prohibit
any insured nonmember bank from paying any time deposit before its
maturity except upon such conditions and in accordance with such rules
and regulations as may be prescribed by the Board of Directors, and from
waiving any requirement of notice before payment of any savings deposit
except as to all savings deposits having the same requirement. For each
violation of any provision of this subsection or any lawful provision of
such regulations relating to the payment of interest or dividends on
deposits or to withdrawal of deposits, the offending bank shall be
subject to a penalty of not more than $100, which the Corporation may
recover for its use.'' See Effective Date of 1980 Amendment note below.
Subsec. (k). Pub. L. 96-221, Sec. 529, repealed Pub. L. 96-104 and
title II of Pub. L. 96-161, resulting in the striking out of subsec. (k)
which had provided that no insured nonmember bank or affiliate, or any
successor, assignee, endorser, guarantor, or surety thereof, could plead
or claim, directly or otherwise, with respect to any deposit or
obligation of such bank or affiliate, any defense, right, or benefit
under any provision of a State or territory of the United States, or the
District of Columbia, regulating or limiting the rate of interest which
could be charged or received, etc. and any such provision was preempted,
and no civil or criminal penalty which would otherwise be applicable
under such provision would apply to such bank or affiliate or any other
person.
1979--Subsec. (g). Pub. L. 96-161, Sec. 101(b), designated existing
provisions as par. (1) and added par. (2).
Subsec. (k). Pub. L. 96-161, Sec. 209, added subsec. (k). A prior
subsec. (k), added by Pub. L. 96-104 and identical to the subsec. (k)
added by Pub. L. 96-161, was repealed by section 212 of Pub. L. 96-161.
See Codification note above.
Pub. L. 96-104 added subsec. (k). A prior subsec. (k), which also
related to the inapplicability of State usury ceilings to certain
obligations issued by insured nonmember banks and affiliates, was
repealed by section 1 of Pub. L. 96-104.
1978--Subsec. (c)(1)(B). Pub. L. 95-630, Sec. 306, inserted
``(including liabilities which would be `deposits' except for the
proviso in section 1813(l)(5) of this title)'' after ``pay any
deposits''.
Subsec. (c)(11). Pub. L. 95-369, Sec. 6(c)(25), added par. (11).
Subsec. (d). Pub. L. 95-630, Sec. 301(b), designated existing
provisions as par. (1) and, inserted ``domestic'' after ``operate any
new'' and ``such'' after ``main office or any'', and added par. (2).
Pub. L. 95-369, Sec. 6(c)(26), inserted provision prohibiting a
foreign bank from moving any insured branch from one location to another
without the consent of the Corporation.
Subsec. (g). Pub. L. 95-369, Sec. 6(c)(27), inserted ``and in
insured branches of foreign banks'' after ``in insured nonmember
banks''.
Subsec. (j). Pub. L. 95-630, Sec. 108, designated existing
provisions as par. (1) and added pars. (2) and (3).
Pub. L. 95-369, Sec. 6(c)(28), inserted at end ``The provisions of
this subsection shall not apply to any foreign bank having an insured
branch with respect to dealings between such bank and any affiliate
thereof.''
Subsec. (l). Pub. L. 95-630, Sec. 301(c), added subsec. (l).
1974--Subsec. (c)(10). Pub. L. 93-495 added par. (10).
Subsec. (g). Pub. L. 93-501, Sec. 102(a), struck out requirement
that obligations other than deposits undertaken by insured non-member
banks be for the purpose of obtaining funds to be used in the banking
business in provisions relating to applicability of this subsection and
of regulations under the subsection to such obligations.
Subsec. (k). Pub. L. 93-501, Sec. 302, added subsec. (k).
1973--Subsec. (g). Pub. L. 93-100 extended rulemaking authority of
Board of Directors to payment and advertisement of dividends on deposits
and in the provisions relating to the applicability of the subsection to
noninsured banks in the States, eliminated clause designation and struck
out provisions of former cl. (2).
1969--Subsec. (g). Pub. L. 91-151 extended the authority of the
Board under this subsection to noninsured banks in the States where
uninsured savings deposits exceed 20 per cent of the total savings
deposits, and, where State laws do not provide for such regulations,
empowered the Board up to July 31, 1970, to prevent the rates paid by
such noninsured institutions from exceeding 5\1/2\ per cent, and further
authorized the Board to bring actions in federal courts for compliance,
authorized the Board to determine what could be deemed a payment of
interest and provided for the promulgation of regulations necessary for
the enforcement of the subsection, made the subsection and the
regulations thereunder applicable to obligations other than deposits
undertaken by insured nonmember banks and their affiliates and extended
the regulatory power of the Board to include ``dividends''.
1968--Subsec. (g). Pub. L. 90-505 gave the Board power to prescribe
rules governing the payment and advertisement of interest on deposits.
1966--Subsec. (c). Pub. L. 89-356, Sec. 1(a), laid down more
definite guidelines for dealing with the antitrust aspects of bank
mergers by prohibiting monopoly bank mergers in all cases, forbidding
anticompetitive mergers except in cases where a clear showing is made
that a given merger is so beneficial that its allowance is in the public
interest, and requiring the uniform application of the law by both
judicial and administrative bodies, inserted provisions to delay the
effectiveness of agency approval of merger transactions except in
emergency situations, imposed a special statute of limitations for
antitrust actions arising out of agency-approved merger transactions
thereby precluding antitrust actions when the agency has acted
immediately to prevent probable failure of a bank, provided for the
automatic staying of the effectiveness of agency action by the
commencement of an antitrust action unless the court orders otherwise,
called for de novo court review, permitted federal bank agencies which
approved a subsequently challenged merger to appear in the suit by its
own counsel, allowed state banking agencies to present their views, and
inserted a definition of ``antitrust laws'' which would include the
Sherman Act, the Clayton Act, and any other Acts in pari materia.
Subsec. (g). Pub. L. 89-597 made the authority of the FDIC Board to
prescribe maximum permissible rates of interest that may be paid by
member banks on time and savings deposits discretionary rather than
mandatory, included such payments by insured mutual savings banks,
required prior consultations with the Board of Governors of the FRS and
the FHLB Board, authorized different rate limitations for different
classes of deposits, for deposits of different amounts, or according to
such other reasonable bases as the Board may deem desirable in the
public interest, and eliminate provision for rate limitation according
to the varying discount rates of member banks in the several Federal
Reserve districts.
Subsec. (i). Pub. L. 89-356, Sec. 1(b), added subsec. (i).
Subsec. (j). Pub. L. 89-485 added subsec. (j).
1965--Subsec. (g). Pub. L. 89-79 extended until Oct. 15, 1968, the
period during which the provisions of this subsection should not apply
to the rate of interest which may be paid by insured nonmember banks on
time deposits of foreign governments, monetary and financial authorities
of foreign governments when acting as such, or international financial
institutions of which the United States is a member.
1962--Subsec. (g). Pub. L. 87-827 inserted sentence making the
subsection inapplicable, during the period commencing on Oct. 15, 1962,
and ending upon the expiration of three years after such date, to the
rate of interest which may be paid by insured nonmember banks on time
deposits of foreign governments, monetary and financial authorities of
foreign governments when acting as such, or international financial
institutions of which the United States is a member.
1960--Subsec. (c). Pub. L. 86-463 prohibited merger or consolidation
of any insured bank with any other insured bank, or acquisition of
assets of, or assumption of liability to pay any deposits made in, any
other insured bank without prior written consent, required publication
of notice of any proposed merger, consolidation, acquisition of assets,
or assumption of liabilities, enumerated specific items required to be
considered before consent may be granted or withheld, directed the
agency involved to request a report on competitive factors involved from
the Attorney General and the other two banking agencies referred to in
this subsection, and provided for inclusion in the annual report of the
Comptroller, the Board and the Corporation of each merger,
consolidation, acquisition of assets, or assumption of liabilities
approved.
Effective and Termination Dates of 2001 Amendment
Amendments by title III of Pub. L. 107-56 to terminate effective on
and after the first day of fiscal year 2005 if Congress enacts a joint
resolution that such amendments no longer have the force of law, see
section 303 of Pub. L. 107-56, set out as a Four-Year Congressional
Review; Expedited Consideration note under section 5311 of Title 31,
Money and Finance.
Pub. L. 107-56, title III, Sec. 327(b)(2), Oct. 26, 2001, 115 Stat.
319, provided that: ``The amendment made by paragraph (1) [amending this
section] shall apply with respect to any application submitted to the
responsible agency under section 18(c) of the Federal Deposit Insurance
Act [12 U.S.C. 1828(c)] after December 31, 2001, which has not been
approved by all appropriate responsible agencies before the date of
enactment of this Act [Oct. 26, 2001].''
Effective Date of 1999 Amendment
Pub. L. 106-102, title II, Sec. 209, Nov. 12, 1999, 113 Stat. 1395,
provided that: ``This subtitle [subtitle A (Secs. 201-210) of title II
of Pub. L. 106-102, amending this section and sections 78c, 78o, and
78o-3 of Title 15, Commerce and Trade, and enacting provisions set out
as notes under section 1811 of this title and section 78c of Title 15]
shall take effect at the end of the 18-month period beginning on the
date of the enactment of this Act [Nov. 12, 1999].''
Effective Date of 1996 Amendment
Amendment by section 2615(b) of Pub. L. 104-208 applicable on and
after Jan. 1, 1996, see section 2615(c) of Pub. L. 104-208, set out as a
note under section 1781 of this title.
Amendment by section 2704(d)(14)(U), (V) of Pub. L. 104-208
effective Jan. 1, 1999, if no insured depository institution is a
savings association on that date, see section 2704(c) of Pub. L. 104-
208, set out as a note under section 1821 of this title.
Effective Date of 1994 Amendment
Section 101(e) of Pub. L. 103-328 provided that: ``The amendments
made by this section [amending this section and sections 1841, 1842, and
1846 of this title] shall take effect at the end of the 1-year period
beginning on the date of the enactment of this Act [Sept. 29, 1994].''
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-550 effective as if included in the Federal
Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-242,
as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-550, set out as
a note under section 191 of this title.
Effective Date of 1991 Amendment
Amendment by section 306(k) of Pub. L. 102-242 effective upon
earlier of date on which final regulations under section 306(m)(1) of
Pub. L. 102-242 become effective or 150 days after Dec. 19, 1991, see
section 306(l) of Pub. L. 102-242, set out as a note under section 375b
of this title.
Effective Date of 1989 Amendment
Amendment by section 907(c) of Pub. L. 101-73 applicable to conduct
engaged in after Aug. 9, 1989, except that increased maximum penalties
of $5,000 and $25,000 may apply to conduct engaged in before such date
if such conduct is not already subject to a notice issued by the
appropriate agency and occurred after completion of the last report of
the examination of the institution by the appropriate agency occurring
before Aug. 9, 1989, see section 907(l) of Pub. L. 101-73, set out as a
note under section 93 of this title.
Effective Date of 1980 Amendment
Section 207(b) of Pub. L. 96-221 provided in part that the amendment
by that section is effective 6 years after Mar. 31, 1980.
Amendment by section 302(b) of Pub. L. 96-221 effective at the close
of Mar. 31, 1980, see section 306 of Pub. L. 96-221, set out as a note
under section 371a of this title.
Section 529 of Pub. L. 96-221 provided that the amendment made by
that section is effective at the close of Mar. 31, 1980.
Effective and Termination Dates of 1979 Amendments
Amendment by section 101(b) of Pub. L. 96-161 effective Dec. 31,
1979, with that amendment to remain in effect until the close of Mar.
31, 1980, see section 104 of Pub. L. 96-161, set out as a note under
section 371a of this title.
Amendment by section 209 of Pub. L. 96-161 applicable only with
respect to deposits made or obligations issued in any State during the
period beginning on Dec. 28, 1979, and ending on the earliest of (1) in
the case of a State statute, July 1, 1980; (2) the date, after Dec. 28,
1979, on which such State adopts a law stating in substance that such
State does not want the amendment made by Pub. L. 96-161 to apply with
respect to such deposits and obligations; or (3) the date on which such
State certifies that the voters of such State, after Dec. 28, 1979, have
voted in favor of, or to retain, any law, provision of the constitution
of such State, or amendment of the constitution of such State which
limits the amount of interest which may be charged in connection with
such deposits and obligations, see section 211 of Pub. L. 96-161, set
out as an Effective Date of 1979 Amendment note under section 371b-1 of
this title.
Amendment by Pub. L. 96-104 applicable to deposits made or
obligations issued in any State during the period beginning on Nov. 5,
1979, and ending on the earlier of July 1, 1981, the date after Nov. 5,
1979, on which such State adopts a law stating in substance that such
State does not want the amendment of this section to apply with respect
to such deposits and obligations, or the date on which such State
certifies that the voters of such State have voted in favor of, or to
retain, any law, provision of the constitution of such State, or
amendment of the constitution of such State, which limits the amount of
interest which may be charged in connection with such deposits and
obligations, see section 204 of Pub. L. 96-104, set out as an Effective
Date of 1979 Amendment note under section 371b-1 of this title.
Effective Date of 1978 Amendment
Amendment by section 108 of Pub. L. 95-630, relating to imposition
of civil penalties, 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 sections 301(c) and 306 of Pub. L. 95-630 effective on
the 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.
Effective Date of 1974 Amendment
Section 102(b) of Pub. L. 93-501 provided that: ``The amendment made
by subsection (a) [amending this section] shall not apply to any bank
holding company which has filed prior to the date of enactment of this
Act [Oct. 29, 1974] an irrevocable declaration with the Board of
Governors of the Federal Reserve System to divest itself of all of its
banks under section 4 of the Bank Holding Company Act [section 1843 of
this title], or to any debt obligation which is an exempted security
under section 3(a)(3) of the Securities Act of 1933 [section 77c(a)(3)
of Title 15, Commerce and Trade].''
Amendment by section 302 of Pub. L. 93-501 applicable to deposits
made or obligations issued in any state after Oct. 29, 1974, but prior
to the earlier of July 1, 1977 or the date of enactment by the state of
a law limiting the amount of interest which may be charged in connection
with such deposits or obligations, see section 304 of Pub. L. 93-501,
set out as a note under section 371b-1 of this title.
Effective Date of 1973 Amendment
Amendment by Pub. L. 93-100 effective on thirtieth day after Aug.
16, 1973, see section 8 of Pub. L. 93-100, set out as an Effective Date
note under section 1469 of this title.
Effective and Termination Dates of 1969 Amendment
Section 7 of Pub. L. 89-597, as amended, formerly set out as an
Effective and Termination Dates of 1966 Amendment note under section 461
of this title (which provided in part that amendment of subsec. (g) of
this section by addition of three sentences at the end thereof by
section 2(a) of Pub. L. 91-151 to be effective only to Dec. 15, 1980,
and that on Dec 15, 1980, such three sentences were to be repealed) was
repealed by section 207(a) of Pub. L. 96-221.
Effective and Termination Dates of 1966 Amendment
Section 7 of Pub. L. 89-597, as amended, formerly set out as an
Effective and Termination Dates of 1966 Amendment note under section 461
of this title (which provided in part that amendment of the second and
third sentences of subsec. (g) of this section by section 3 of Pub. L.
89-597 was effective only to Dec. 15, 1980, and that on Dec. 15, 1980,
such sentences were to be amended to read as they would without the
amendment by section 3 of Pub. L. 89-597), was repealed by section
207(a) of Pub. L. 96-221.
Repeals
Amendment by section 101 of Pub. L. 96-161, cited as a credit to
this section, was repealed at the close of Mar. 31, 1980, by section 307
of Pub. L. 96-221, and substantially identical provisions were enacted
by section 302 of Pub. L. 96-221, such amendments to take effect at the
close of Mar. 31, 1980.
Savings Provision
Section 529 of Pub. L. 96-221 provided in part that, notwithstanding
the repeal of Pub. L. 96-104 and title II of Pub. L. 96-161, the
provisions of subsec. (k) of this section [which had been added to this
section by those repealed laws] shall continue to apply to any loan
made, any deposit made, or any obligation issued to any State during any
period when those provisions were in effect in such State.
Termination of Reporting Requirements
For termination, effective May 15, 2000, of provisions of law
requiring submittal to Congress of any annual, semiannual, or other
regular periodic report listed in House Document No. 103-7 (in which a
report required under subsection (c)(9) of this section is listed on
page 171), see section 3003 of Pub. L. 104-66, as amended, set out as a
note under section 1113 of Title 31, Money and Finance.
Banking Agency Publication Requirements
Pub. L. 105-18, title V, Sec. 50004, June 12, 1997, 111 Stat. 212,
provided that:
``(a) In General.--A qualifying regulatory agency may take any of
the following actions with respect to depository institutions or other
regulated entities whose principal place of business is within, or with
respect to transactions or activities within, an area in which the
President, pursuant to section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act [42 U.S.C. 5170], has determined, on
or after February 28, 1997, that a major disaster exists, or within an
area determined to be eligible for disaster relief under other Federal
law by reason of damage related to the 1997 flooding of the Red River of
the North, the Minnesota River, and the tributaries of such rivers, if
the agency determines that the action would facilitate recovery from the
major disaster:
``(1) Procedure.--Exercising the agency's authority under
provisions of law other than this section without complying with--
``(A) any requirement of section 553 of title 5, United
States Code; or
``(B) any provision of law that requires notice or
opportunity for hearing or sets maximum or minimum time limits
with respect to agency action.
``(2) Publication requirements.--Making exceptions, with respect
to institutions or other entities for which the agency is the
primary Federal regulator, to--
``(A) any publication requirement with respect to
establishing branches or other deposit-taking facilities; or
``(B) any similar publication requirement.
``(b) Publication Required.--A qualifying regulatory agency shall
publish in the Federal Register a statement that--
``(1) describes any action taken under this section; and
``(2) explains the need for the action.
``(c) Qualifying Regulatory Agency Defined.--For purposes of this
section, the term `qualifying regulatory agency' means--
``(1) the Board of Governors of the Federal Reserve System;
``(2) the Comptroller of the Currency;
``(3) the Director of the Office of Thrift Supervision;
``(4) the Federal Deposit Insurance Corporation;
``(5) the Financial Institutions Examination Council;
``(6) the National Credit Union Administration; and
``(7) with respect to chapter 53 of title 31, United States
Code, the Secretary of the Treasury.
``(d) Expiration.--Any exception made under this section shall
expire not later than February 28, 1998.''
Similar provisions were contained in the following prior acts:
Pub. L. 103-76, Sec. 4, Aug. 12, 1993, 107 Stat. 753.
Pub. L. 102-485, Sec. 5, Oct. 23, 1992, 106 Stat. 2773.
Review of Risk-Based Capital Standards
Section 305(b) of Pub. L. 102-242, as amended by Pub. L. 103-325,
title III, Sec. 335, Sept. 23, 1994, 108 Stat. 2233, provided that:
``(1) In general.--Each appropriate Federal banking agency shall
revise its risk-based capital standards for insured depository
institutions to ensure that those standards--
``(A) take adequate account of--
``(i) interest-rate risk;
``(ii) concentration of credit risk; and
``(iii) the risks of nontraditional activities;
``(B) reflect the actual performance and expected risk of loss
of multifamily mortgages; and
``(C) take into account the size and activities of the
institutions and do not cause undue reporting burdens.
``(2) International discussions.--The Federal banking agencies shall
discuss the development of comparable standards with members of the
supervisory committee of the Bank for International Settlements.
``(3) Deadline for prescribing revised standards.--Each appropriate
Federal banking agency shall--
``(A) publish final regulations in the Federal Register to
implement paragraph (1) not later than 18 months after the date of
enactment of this Act [Dec. 19, 1991]; and
``(B) establish reasonable transition rules to facilitate
compliance with those regulations.
``(4) Definitions.--For purposes of this subsection, the terms
`appropriate Federal banking agency', `Federal banking agency' and
`insured depository institution' have the same meanings as in section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813).''
Purchased Mortgage Servicing Rights
Pub. L. 102-242, title IV, Sec. 475, Dec. 19, 1991, 105 Stat. 2386,
as amended by Pub. L. 102-550, title XVI, Sec. 1606(i)(2), Oct. 28,
1992, 106 Stat. 4089; Pub. L. 106-569, title XII, Sec. 1208, Dec. 27,
2000, 114 Stat. 3035, provided that:
``(a) In General.--Notwithstanding section 5(t)(4) of the Home
Owners' Loan Act [12 U.S.C. 1464(t)(4)], each appropriate Federal
banking agency shall determine, with respect to insured depository
institutions for which it is the appropriate Federal regulator, the
amount of readily marketable purchased mortgage servicing rights that
may be included in calculating such institution's tangible capital,
risk-based capital, or leverage limit, if--
``(1) such servicing rights are valued at not more than 90
percent (or such other percentage exceeding 90 percent but not
exceeding 100 percent, as may be determined under subsection (b)) of
their fair market value; and
``(2) the fair market value of such servicing rights is
determined not less often than quarterly.
``(b) Authority To Determine Percentage by Which To Discount Value
of Servicing Rights.--The appropriate Federal banking agencies may allow
readily marketable purchased mortgage servicing rights to be valued at
more than 90 percent of their fair market value but at not more than 100
percent of such value, if such agencies jointly make a finding that such
valuation would not have an adverse effect on the deposit insurance
funds or the safety and soundness of insured depository institutions.
``(c) Definition.--For purposes of this section, the terms
`appropriate Federal banking agency', `deposit insurance fund', and
`insured depository institution' have the same meanings as in section 3
of the Federal Deposit Insurance Act [12 U.S.C. 1813].
``(d) Effective Date.--This section shall apply after the end of the
60-day period beginning on the date of the enactment of this Act [Dec.
19, 1991].''
Elimination of Interest Rate Differentials
Section 326(b)-(d) of Pub. L. 97-320 provided that:
``(b)(1) Interest rate differentials for all categories of deposits
or accounts between (i) any bank (other than a savings bank) the
deposits of which are insured by the Federal Deposit Insurance
Corporation, and (ii) any savings and loan, building and loan, or
homestead association (including cooperative banks) the deposits or
accounts of which are insured by the Federal Savings and Loan Insurance
Corporation or any mutual savings bank as defined in section 3(f) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(j)) [12 U.S.C. 1813(f)],
shall be phased out on or before January 1, 1984.
``(2) Any differential which is being phased out pursuant to a
schedule established by regulations prescribed by the Depository
Institutions Deregulation Committee prior to the date of enactment of
this Act [Oct. 15, 1982] shall be phased out as soon as practicable, but
in no event later than such schedule provides.
``(3) Notwithstanding any other provision of law, no differential
for any category of deposits or accounts shall be established or
maintained on or after January 1, 1984.
``(c) No interest rate differential may be established or maintained
in the case of the deposit account authorized pursuant to section 204(c)
of the Depository Institutions Deregulation Act of 1980 [12 U.S.C.
3503(c)].
``(d) In the case of the elimination or reduction of any interest
rate differential under subsection (b) with respect to any category of
deposits or accounts between (1) any bank (other than a savings bank)
the deposits of which are insured by the Federal Deposit Insurance
Corporation and (2) any savings and loan, building and loan, or
homestead association (including cooperative banks) the deposits or
accounts of which are insured by the Federal Savings and Loan Insurance
Corporation or any mutual savings bank as defined in section 3(f) of the
Federal Deposit Insurance Act [12 U.S.C. 1813(f)], the maximum rate of
interest which shall be established for such category of deposits for
banks (other than savings banks) the deposits of which are insured by
the Federal Deposit Insurance Corporation shall be equal to the highest
rate of interest which savings and loan associations the deposits or
accounts of which are insured by the Federal Savings and Loan Insurance
Corporation were permitted to pay on such category of deposits
immediately prior to the elimination or reduction of such interest rate
differential.''
States Having Constitutional Provisions Regarding Maximum Interest Rates
Section 213 of Pub. L. 96-161 provided that the provisions of title
II of Pub. L. 96-161, which enacted subsec. (k) of this section and
repealed provisions which had formerly amended this section, to continue
to apply until July 1, 1981, in the case of any State having a
constitutional provision regarding maximum interest rates.
Interest Rates; Controls
Reduction of interest rates to maximum extent feasible in light of
prevailing money market and general economic conditions, see section 1
of Pub. L. 89-597, set out as a note under section 461 of this title.
Reinstatement of Withdrawn or Abandoned Applications Made Before
February 21, 1966, for Approval of Mergers
Section 3 of Pub. L. 89-356 provided that: ``Any application for
approval of a merger transaction (as the term `merged transaction' is
used in section 18(c) of the Federal Deposit Insurance Act) [subsec. (c)
of this section] which was made before the date of enactment of this Act
[Feb. 21, 1966], but was withdrawn or abandoned as a result of any
objections made or any suit brought by the Attorney General, may be
reinstituted and shall be acted upon in accordance with the provisions
of this Act without prejudice by such withdrawal, abandonment,
objections, or judicial proceedings.''
Special Antitrust Treatment of Merger Transactions Consummated Before
February 21, 1966, and of Litigation Pending On or After February 21,
1966, With Respect to Merger Transactions Consummated After June 16,
1963
Section 2 of Pub. L. 89-356 provided that:
``(a) Any merger, consolidation, acquisition of assets, or
assumption of liabilities involving an insured bank which was
consummated prior to June 17, 1963, the bank resulting from which has
not been dissolved or divided and has not effected a sale or
distribution of assets and has not taken any other similar action
pursuant to a final judgment under the antitrust laws prior to the
enactment of this Act [Feb. 21, 1966], shall be conclusively presumed to
have not been in violation of any antitrust laws other than section 2 of
the Act of July 2, 1890 (section 2 of the Sherman Antitrust Act, 15
U.S.C. 2).
``(b) No merger, consolidation, acquisition of assets, or assumption
of liabilities involving an insured bank which was consummated after
June 16, 1963, and prior to the date of enactment of this Act [Feb. 21,
1966] and as to which no litigation was initiated by the Attorney
General prior to the date of enactment of this Act [Feb. 21, 1966] may
be attacked after such date in any judicial proceeding on the ground
that it alone and of itself constituted a violation of any antitrust
laws other than section 2 of the Act of July 2, 1890 (section 2 of the
Sherman Antitrust Act, 15 U.S.C. 2).
``(c) Any court having pending before it on or after the date of
enactment of this Act [Feb. 21, 1966] any litigation initiated under the
antitrust laws by the Attorney General after June 16, 1963 with respect
to the merger, consolidation, acquisition of assets, or assumption of
liabilities of an insured bank consummated after June 16, 1963, shall
apply the substantive rule of law set forth in section 18(c)(5) of the
Federal Deposit Insurance Act [subsec. (c)(5) of this section], as
amended by this Act.
``(d) For the purposes of this section, the term `antitrust laws'
means the Act of July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1-
7), the Act of October 15, 1914 (the Clayton Act, 15 U.S.C. 12-27), and
any other Acts in pari materia.''
Section Referred to in Other Sections
This section is referred to in sections 215a-3, 215c, 371, 1464,
1467a, 1468, 1815, 1817, 1818, 1820, 1821, 1828b, 1831p-1, 1831u, 1843,
2902, 3103, 4803 of this title; title 15 section 18a; title 31 section
5318.
