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§ 1831i. —  Agency disapproval of directors and senior executive officers of insured depository institutions or depository institution holding companies.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1831i]

 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
 
Sec. 1831i. Agency disapproval of directors and senior executive 
        officers of insured depository institutions or depository 
        institution holding companies
        

(a) Prior notice required

    An insured depository institution or depository institution holding 
company shall notify the appropriate Federal banking agency of the 
proposed addition of any individual to the board of directors or the 
employment of any individual as a senior executive officer of such 
institution or holding company at least 30 days (or such other period, 
as determined by the appropriate Federal banking agency) before such 
addition or employment becomes effective, if--
        (1) the insured depository institution or depository institution 
    holding company is not in compliance with the minimum capital 
    requirement applicable to such institution or is otherwise in a 
    troubled condition, as determined by such agency on the basis of 
    such institution's or holding company's most recent report of 
    condition or report of examination or inspection; or
        (2) the agency determines, in connection with the review by the 
    agency of the plan required under section 1831o of this title or 
    otherwise, that such prior notice is appropriate.

(b) Disapproval by agency

    An insured depository institution or depository institution holding 
company may not add any individual to the board of directors or employ 
any individual as a senior executive officer if the appropriate Federal 
banking agency issues a notice of disapproval of such addition or 
employment before the end of the notice period, not to exceed 90 days, 
beginning on the date the agency receives notice of the proposed action 
pursuant to subsection (a) of this section.

(c) Exception in extraordinary circumstances

                           (1) In general

        Each appropriate Federal banking agency may prescribe by 
    regulation conditions under which the prior notice requirement of 
    subsection (a) of this section may be waived in the event of 
    extraordinary circumstances.

          (2) No effect on disapproval authority of agency

        Such waivers shall not affect the authority of each agency to 
    issue notices of disapproval of such additions or employment of such 
    individuals within 30 days after each such waiver.

(d) Additional information

    Any notice submitted to an appropriate Federal banking agency with 
respect to an individual by any insured depository institution or 
depository institution holding company pursuant to subsection (a) of 
this section shall include--
        (1) the information described in section 1817(j)(6)(A) of this 
    title about the individual; and
        (2) such other information as the agency may prescribe by 
    regulation.

(e) Standard for disapproval

    The appropriate Federal banking agency shall issue a notice of 
disapproval with respect to a notice submitted pursuant to subsection 
(a) of this section if the competence, experience, character, or 
integrity of the individual with respect to whom such notice is 
submitted indicates that it would not be in the best interests of the 
depositors of the depository institution or in the best interests of the 
public to permit the individual to be employed by, or associated with, 
the depository institution or depository institution holding company.

(f) Definition regulations

    Each appropriate Federal banking agency shall prescribe by 
regulation a definition for the terms ``troubled condition'' and 
``senior executive officer'' for purposes of subsection (a) of this 
section.

(Sept. 21, 1950, ch. 967, Sec. 2[32], as added Pub. L. 101-73, title IX, 
Sec. 914(a), Aug. 9, 1989, 103 Stat. 484; amended Pub. L. 104-208, div. 
A, title II, Sec. 2209, Sept. 30, 1996, 110 Stat. 3009-409.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-208, Sec. 2209(1)(A), (B), in 
introductory provisions, inserted ``(or such other period, as determined 
by the appropriate Federal banking agency)'' after ``30 days'' and 
substituted ``if'' for ``if the insured depository institution or 
depository institution holding company''.
    Subsec. (a)(1). Pub. L. 104-208, Sec. 2209(1)(E), inserted ``the 
insured depository institution or depository institution holding 
company'' before ``is not in compliance'' and substituted ``; or'' for 
period at end.
    Pub. L. 104-208, Sec. 2209(1)(C), (D), redesignated par. (3) as (1) 
and struck out former par. (1) which read as follows: ``has been 
chartered less than 2 years in the case of an insured depository 
institution;''.
    Subsec. (a)(2). Pub. L. 104-208, Sec. 2209(1)(C), (F), added par. 
(2) and struck out former par. (2) which read as follows: ``has 
undergone a change in control within the preceding 2 years; or''.
    Subsec. (a)(3). Pub. L. 104-208, Sec. 2209(1)(D), redesignated par. 
(3) as (1).
    Subsec. (b). Pub. L. 104-208, Sec. 2209(2), substituted ``notice 
period, not to exceed 90 days,'' for ``30-day period''.

                  Section Referred to in Other Sections

    This section is referred to in sections 93, 1464, 1785, 1818, 1828 
of this title.



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