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§ 1829. —  Penalty for unauthorized participation by convicted individual.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1829]

 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
 
Sec. 1829. Penalty for unauthorized participation by convicted 
        individual
        

(a) Prohibition

                           (1) In general

        Except with the prior written consent of the Corporation--
            (A) any person who has been convicted of any criminal 
        offense involving dishonesty or a breach of trust or money 
        laundering, or has agreed to enter into a pretrial diversion or 
        similar program in connection with a prosecution for such 
        offense, may not--
                (i) become, or continue as, an institution-affiliated 
            party with respect to any insured depository institution;
                (ii) own or control, directly or indirectly, any insured 
            depository institution; or
                (iii) otherwise participate, directly or indirectly, in 
            the conduct of the affairs of any insured depository 
            institution; and

            (B) any insured depository institution may not permit any 
        person referred to in subparagraph (A) to engage in any conduct 
        or continue any relationship prohibited under such subparagraph.

     (2) Minimum 10-year prohibition period for certain offenses

        (A) In general

            If the offense referred to in paragraph (1)(A) in connection 
        with any person referred to in such paragraph is--
                (i) an offense under--
                    (I) section 215, 656, 657, 1005, 1006, 1007, 
                1008,\1\ 1014, 1032, 1344, 1517, 1956, or 1957 of title 
                18; or
---------------------------------------------------------------------------
    \1\ See References in Text note below.
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                    (II) section 1341 or 1343 of such title which 
                affects any financial institution (as defined in section 
                20 of such title); or

                (ii) the offense of conspiring to commit any such 
            offense,

        the Corporation may not consent to any exception to the 
        application of paragraph (1) to such person during the 10-year 
        period beginning on the date the conviction or the agreement of 
        the person becomes final.

        (B) Exception by order of sentencing court

            (i) In general

                On motion of the Corporation, the court in which the 
            conviction or the agreement of a person referred to in 
            subparagraph (A) has been entered may grant an exception to 
            the application of paragraph (1) to such person if granting 
            the exception is in the interest of justice.
            (ii) Period for filing

                A motion may be filed under clause (i) at any time 
            during the 10-year period described in subparagraph (A) with 
            regard to the person on whose behalf such motion is made.

(b) Penalty

    Whoever knowingly violates subsection (a) of this section shall be 
fined not more than $1,000,000 for each day such prohibition is violated 
or imprisoned for not more than 5 years, or both.

(Sept. 21, 1950, ch. 967, Sec. 2[19], 64 Stat. 893; Pub. L. 101-73, 
title IX, Sec. 910(a), Aug. 9, 1989, 103 Stat. 477; Pub. L. 101-647, 
title XXV, Sec. 2502(a), Nov. 29, 1990, 104 Stat. 4860; Pub. L. 102-550, 
title XV, Sec. 1505, Oct. 28, 1992, 106 Stat. 4055; Pub. L. 103-322, 
title XXXII, Sec. 320605, Sept. 13, 1994, 108 Stat. 2119.)

                       References in Text

    Section 1008 of title 18, referred to in subsec. (a)(2)(A)(i)(I), 
was repealed by Pub. L. 101-73, title IX, Sec. 961(g)(1), Aug. 9, 1989, 
103 Stat. 500.


                               Amendments

    1994--Subsec. (a)(2)(A)(i)(I). Pub. L. 103-322 substituted ``1517, 
1956, or 1957'' for ``or 1956''.
    1992--Subsec. (a)(1)(A). Pub. L. 102-550 inserted ``or money 
laundering'' after ``breach of trust''.
    1990--Subsec. (a). Pub. L. 101-647 amended subsec. (a) generally. 
Prior to amendment, subsec. (a) read as follows: ``Except with the prior 
written consent of the Corporation--
        ``(1) any person who has been convicted of any criminal offense 
    involving dishonesty or a breach of trust may not participate, 
    directly or indirectly, in any manner in the conduct of the affairs 
    of an insured depository institution; and
        ``(2) an insured depository institution may not permit such 
    participation.''
    1989--Pub. L. 101-73 amended section generally. Prior to amendment, 
section read as follows: ``Except with the written consent of the 
Corporation, no person shall serve as a director, officer, or employee 
of an insured bank who has been convicted, or who is hereafter 
convicted, of any criminal offense involving dishonesty or a breach of 
trust. For each willful violation of this prohibition, the bank involved 
shall be subject to a penalty of not more than $100 for each day this 
prohibition is violated, which the Corporation may recover for its 
use.''


              Provisions Not Repealed, Modified or Affected

    Nothing contained in sections 201 to 205 and 207 of Pub. L. 89-695 
amending sections 1813 and 1817 to 1820 and repealing section 77 of this 
title to be construed as repealing, modifying, or affecting this 
section, see section 206 of Pub. L. 89-695, set out as a note under 
section 1813 of this title.



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