§ 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.