US (United States) Code. Title 12. Chapter 16: Federal Deposit Insurance Corporation

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and banking

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-CITE-

12 USC CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

.

-HEAD-

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-MISC1-

Sec.

1811. Federal Deposit Insurance Corporation.

(a) Establishment of Corporation.

(b) Asset disposition division.

1812. Management.

(a) Board of Directors.

(b) Chairperson and Vice Chairperson.

(c) Terms.

(d) Vacancy.

(e) Ineligibility for other offices.

(f) Status of employees.

1813. Definitions.

1814. Insured depository institutions.

(a) Continuation of insurance.

(b) Continuation of insurance upon becoming a member

bank.

(c) Continuation of insurance after conversion.

(d) Continuation of insurance after merger or

consolidation.

1815. Deposit insurance.

(a) Application to Corporation required.

(b) Foreign branch nonmember banks; matters

considered.

(c) Protection to deposit insurance fund; surety

bond, pledge of assets, etc.; injunction.

(d) Insurance fees.

(e) Liability of commonly controlled depository

institutions.

1816. Factors to be considered.

1817. Assessments.

(a) Reports of condition; access to reports.

(b) Assessments.

(c) Certified statements; payments.

(d) Corporation exempt from apportionment.

(e) Refunds.

(f) Action against depository institutions failing to

file certified statements.

(g) Action by Corporation to recover assessments.

(h) Forfeiture of rights for failure to comply with

law.

(i) Insurance of trust funds.

(j) Change in control of insured depository

institutions.

(k) Federal banking agency rules and regulations for

reports and public disclosure by banks of

extension of credit to executive officers or

principal shareholders or the related interests

of such persons.

(l) Secondary reserve offsets against premiums.

(m) Collections on behalf of Director of Office of

Thrift Supervision.

1818. Termination of status as insured depository institution.

(a) Termination of insurance.

(b) Cease-and-desist proceedings.

(c) Temporary cease-and-desist orders.

(d) Temporary cease-and-desist orders; enforcement.

(e) Removal and prohibition authority.

(f) Stay of suspension and/or prohibition of

institution-affiliated party.

(g) Suspension or removal of institution-affiliated

party charged with felony.

(h) Hearings and judicial review.

(i) Jurisdiction and enforcement; penalty.

(j) Criminal penalty.

(k) Repealed.

(l) Notice of service.

(m) Notice to State authorities.

(n) Ancillary provisions; subpena power, etc.

(o) Termination of membership of State bank in

Federal Reserve System.

(p) Banks not receiving deposits.

(q) Assumption of liabilities.

(r) Action or proceeding against foreign bank; basis;

removal of officer or other person; venue;

service of process.

(s) Compliance with monetary transaction

recordkeeping and report requirements.

(t) Authority of FDIC to take enforcement action

against insured depository institutions and

institution-affiliated parties.

(u) Public disclosures of final orders and

agreements.

(v) Foreign investigations.

(w) Termination of insurance for money laundering or

cash transaction reporting offenses.

1819. Corporate powers.

(a) In general.

(b) Agency authority.

1820. Administration of Corporation.

(a) Board of Directors; use of mails; cooperation

with other Federal agencies.

(b) Examinations.

(c) Administration of oaths and affirmations;

evidence; subpena powers.

(d) Annual on-site examinations of all insured

depository institutions required.

(e) Examination fees.

(f) Preservation of records by photography;

admissibility as evidence.

(g) Authority to prescribe regulations and

definitions.

(h) Coordination of examination authority.

(i) Flood insurance compliance by insured depository

institutions.

(j) Consultation among examiners.

1820a. Examination of investment companies.

(a) Exclusive Commission authority.

(b) Examination results and other information.

(c) Certain examinations authorized.

(d) Definitions.

1821. Insurance Funds.

(a) Deposit insurance.

(b) Liquidation as closing of depository institution.

(c) Appointment of Corporation as conservator or

receiver.

(d) Powers and duties of Corporation as conservator

or receiver.

(e) Provisions relating to contracts entered into

before appointment of conservator or receiver.

(f) Payment of insured deposits.

(g) Subrogation of Corporation.

(h) Conditions applicable to resolution proceedings.

(i) Valuation of claims in default.

(j) Limitation on court action.

(k) Liability of directors and officers.

(l) Damages.

(m) New banks.

(n) Bridge banks.

(o) Supervisory records.

(p) Certain sales of assets prohibited.

(q) Expedited procedures for certain claims.

(r) Foreign investigations.

(s) Prohibition on entering secrecy agreements and

protective orders.

(t) Agencies may share information without waiving

privilege.

(u) Purchase rights of tenants.

(v) Preference for sales for homeless families.

(w) Preferences for sales of certain commercial real

properties.

1821a. FSLIC Resolution Fund.

(a) Established.

(b) Source of funds.

(c) Treasury backup.

(d) Legal proceedings.

(e) Transfer of net proceeds from sale of RTC assets.

(f) Dissolution.

1822. Corporation as receiver.

(a) Bond not required; agents; fee.

(b) Payment of insured deposit as discharge from

liability.

(c) Recognition of claimant not on depository

institution records.

(d) Withholding payments to meet liability to

depository institution.

(e) Disposition of unclaimed deposits.

(f) Conflict of interest.

1823. Corporation monies.

(a) Investment of Corporation's funds.

(b) Depository accounts.

(c) Assistance to insured depository institutions.

(d) Sale of assets to Corporation.

(e) Agreements against interests of Corporation.

(f) Assisted emergency interstate acquisitions.

(g) Payment of interest on stock subscriptions.

(h) Reopening or aversion of closing of insured

branch of foreign bank.

(i) Repealed.

(j) Loan loss amortization for certain banks.

(k) Emergency acquisitions.

1824. Borrowing authority.

(a) Borrowing from Treasury.

(b) Borrowing from Federal Financing Bank.

(c) Repayment schedules required for any borrowing.

(d) Borrowing for DIF from DIF members.

1825. Issuance of notes, debentures, bonds, and other obligations;

exemption from taxation.

(a) General rule.

(b) Other exemptions.

(c) Limitation on borrowing.

(d) Full faith and credit.

1826. Forms of obligations; preparation by Secretary of the

Treasury.

1827. Reports by Corporation; audit of financial transactions;

report on audits; employment of certified public accountants for

audits.

(a) Annual reports on Deposit Insurance Fund and

FSLIC Resolution Fund.

(b) Quarterly reports to Treasury.

(c) Reports to OMB.

(d) Audit.

(e) Audit of Corporation.

(f) Report of audit.

(g) Assistance in audit; costs.

1828. Regulations governing insured depository institutions.

(a) Insurance logo.

(b) Payment of dividends by defaulting depository

institutions.

(c) Merger transactions; consent of banking agencies;

emergency approval; notice; uniform standards;

antitrust actions; review de novo; limitations;

report to Congress; money laundering;

applicability.

(d) Branch banks.

(e) Indemnity insurance.

(f) Publication of reports.

(g) Interest or dividend on demand deposits;

definitions; regulation of interest rates.

(h) Penalties.

(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.

(j) Restrictions on transactions with affiliates and

insiders.

(k) Authority to regulate or prohibit certain forms

of benefits to institution-affiliated parties.

(l) Acquisition of foreign banks or entities.

(m) Activities of savings associations and their

subsidiaries.

(n) Calculation of capital.

(o) Real estate lending.

(p) Periodic review of capital standards.

(q) Sovereign risk.

(r) Subsidiary depository institutions as agents for

certain affiliates.

(s) Prohibition on certain affiliations.

(t) Recordkeeping requirements.

(u) Limitation on claims.

(v) Loans by insured institutions on their own stock.

(w) Written employment references may contain

suspicions of involvement in illegal activity.

1828a. Prudential safeguards.

(a) Comptroller of the Currency.

(b) Board of Governors of the Federal Reserve System.

(c) Federal Deposit Insurance Corporation.

1828b. Interagency data sharing.

(a) In general.

(b) Confidentiality requirements.

(c) Banking agency information sharing.

1829. Penalty for unauthorized participation by convicted

individual.

(a) Prohibition.

(b) Penalty.

1829a. Participation by State nonmember insured banks in lotteries

and related activities.

(a) Prohibited activities.

(b) Use of banking premises prohibited.

(c) Definitions.

(d) Lawful banking services connected with operation

of lottery.

(e) Regulations; enforcement.

1829b. Retention of records by insured depository institutions.

(a) Congressional findings and declaration of

purpose.

(b) Recordkeeping regulations.

(c) Identity of persons having accounts and persons

authorized to act with respect to such

accounts; exemptions.

(d) Reproduction of checks, drafts, and other

instruments; record of transactions; identity

of party.

(e) Identity of persons making reportable currency

and foreign transactions.

(f) Additions to or substitutes for required records.

(g) Retention period.

(h) Report to Congress by Secretary of the Treasury.

(i) Application of provisions to foreign banks.

(j) Civil penalties.

1830. Nondiscrimination.

1831. Separability of certain provisions of this chapter.

1831a. Activities of insured State banks.

(a) Permissible activities.

(b) Insurance underwriting.

(c) Equity investments by insured State banks.

(d) Subsidiaries of insured State banks.

(e) Savings bank life insurance.

(f) Common and preferred stock investment.

(g) Determinations.

(h) ''Activity'' defined.

(i) Other authority not affected.

(j) Activities of branches of out-of-State banks.

1831b. Disclosures with respect to certain federally related

mortgage loans.

(a) Identity of beneficiary interest as condition for

a loan; report to Corporation.

(b) Enforcement; bank status.

1831c. Repealed.

1831d. State-chartered insured depository institutions and insured

branches of foreign banks.

(a) Interest rates.

(b) Interest overcharge; forfeiture; interest payment

recovery.

1831e. Activities of savings associations.

(a) In general.

(b) Differences of magnitude between State and

Federal powers.

(c) Equity investments by State savings associations.

(d) Corporate debt securities not of investment

grade.

(e) Transfer of corporate debt security not of

investment grade in exchange for qualified

note.

(f) Determinations.

(g) ''Activity'' defined.

(h) Other authority not affected.

1831f. Brokered deposits.

(a) In general.

(b) Renewals and rollovers treated as acceptance of

funds.

(c) Waiver authority.

(d) Limited exception for certain conservatorships.

(e) Restriction on interest rate paid.

(f) Additional restrictions.

(g) Definitions relating to deposit broker.

(h) Deposit solicitation restricted.

1831f-1. Repealed.

1831g. Contracts between depository institutions and persons

providing goods, products, or services.

(a) In general.

(b) Rulemaking.

(c) Enforcement.

(d) No private right of action.

(e) Study.

1831h. Savings Association Insurance Fund Industry Advisory

Committee.

(a) Establishment.

(b) Membership.

(c) Vacancies.

(d) Pay and expenses.

(e) Terms.

(f) Authority of Committee.

(g) Meetings.

(h) Reports.

(i) Provision of staff and other resources.

(j) Federal Advisory Committee Act does not apply.

(k) Sunset.

1831i. Agency disapproval of directors and senior executive

officers of insured depository institutions or depository

institution holding companies.

(a) Prior notice required.

(b) Disapproval by agency.

(c) Exception in extraordinary circumstances.

(d) Additional information.

(e) Standard for disapproval.

(f) Definition regulations.

1831j. Depository institution employee protection remedy.

(a) In general.

(b) Enforcement.

(c) Remedies.

(d) Limitation.

(e) ''Federal banking agency'' defined.

(f) Burdens of proof.

1831k. Reward for information leading to recoveries or civil

penalties.

(a) In general.

(b) Percentage limitation.

(c) Officials and persons ineligible.

(d) Nonreviewability.

1831l. Coordination of risk analysis between SEC and Federal

banking agencies.

1831m. Early identification of needed improvements in financial

management.

(a) Annual report on financial condition and

management.

(b) Management responsibility for financial

statements and internal controls.

(c) Internal control evaluation and reporting

requirements for independent public

accountants.

(d) Annual independent audits of financial

statements.

(e) Repealed.

(f) Form and content of reports and auditing

standards.

(g) Improved accountability.

(h) Exchange of reports and information.

(i) Requirements for insured subsidiaries of holding

companies.

(j) Exemption for small depository institutions.

1831m-1. Reports of information regarding safety and soundness of

depository institutions.

(a) Reports to appropriate Federal banking agencies.

(b) Procedures for receipt of disclosure reports.

(c) Effect on agencies.

(d) Definitions.

1831n. Accounting objectives, standards, and requirements.

(a) In general.

(b) Uniform accounting of capital standards.

(c) Reports to banking committees.

1831o. Prompt corrective action.

(a) Resolving problems to protect deposit insurance

fund.

(b) Definitions.

(c) Capital standards.

(d) Provisions applicable to all institutions.

(e) Provisions applicable to undercapitalized

institutions.

(f) Provisions applicable to significantly

undercapitalized institutions and

undercapitalized institutions that fail to

submit and implement capital restoration plans.

(g) More stringent treatment based on other

supervisory criteria.

(h) Provisions applicable to critically

undercapitalized institutions.

(i) Restricting activities of critically

undercapitalized institutions.

(j) Certain Government-controlled institutions

exempted.

(k) Review required when deposit insurance fund

incurs material loss.

(l) Implementation.

(m) Other authority not affected.

(n) Administrative review of dismissal orders.

(o) Transition rules for savings associations.

1831p. Transferred.

1831p-1. Standards for safety and soundness.

(a) Operational and managerial standards.

(b) Asset quality, earnings, and stock valuation

standards.

(c) Compensation standards.

(d) Standards to be prescribed.

(e) Failure to meet standards.

(f) Definitions.

(g) Other authority not affected.

1831q. FDIC affordable housing program.

(a) Purpose.

(b) Funding and limitations of program.

(c) Rules governing disposition of eligible single

family properties.

(d) Rules governing disposition of eligible

multifamily housing properties.

(e) Rent limitations.

(f) Preferences for sales.

(g) Financing sales.

(h) Coordination with other programs.

(i) Exemption for certain transactions with insured

depository institutions.

(j) Transfer of certain eligible residential

properties to State housing agencies for

disposition.

(k) Exception for sales to nonprofit organizations

and public agencies.

(l) Rules governing disposition of eligible

condominium property.

(m) Liability provisions.

(n) Unified affordable housing programs.

(o) Report.

(p) Definitions.

(q) Notice to clearinghouses regarding ineligible

properties.

1831r. Payments on foreign deposits prohibited.

(a) In general.

(b) Exception.

(c) Discount window lending.

1831r-1. Notice of branch closure.

(a) Notice to appropriate Federal banking agency.

(b) Notice to customers.

(c) Adoption of policies.

(d) Branch closures in interstate banking or

branching operations.

(e) Scope of application.

1831s. Transferred.

1831t. Depository institutions lacking Federal deposit insurance.

(a) Annual independent audit of private deposit

insurers.

(b) Disclosure required.

(c) Manner and content of disclosure.

(d) Exceptions for institutions not receiving retail

deposits.

(e) Eligibility for Federal deposit insurance.

(f) Definitions.

(g) Enforcement.

1831u. Interstate bank mergers.

(a) Approval of interstate merger transactions

authorized.

(b) Provisions relating to application and approval

process.

(c) Applicability of certain laws to interstate

banking operations.

(d) Operations of the resulting bank.

(e) Exception for banks in default or in danger of

default.

(f) Applicable rate and other charge limitations.

(g) Definitions.

1831v. Authority of State insurance regulator and Securities and

Exchange Commission.

(a) In general.

(b) Certain exemption authorized.

(c) Definitions.

1831w. Safety and soundness firewalls applicable to financial

subsidiaries of banks.

(a) In general.

(b) Preservation of existing subsidiaries.

(c) Definitions.

(d) Preservation of authority.

1831x. Insurance customer protections.

(a) Regulations required.

(b) Sales practices.

(c) Disclosures and advertising.

(d) Separation of banking and nonbanking activities.

(e) Domestic violence discrimination prohibition.

(f) Consumer grievance process.

(g) Effect on other authority.

(h) Non-discrimination against non-affiliated agents.

1831y. CRA sunshine requirements.

(a) Public disclosure of agreements.

(b) Annual report of activity by insured depository

institution.

(c) Annual report of activity by nongovernmental

entities.

(d) Applicability.

(e) Definitions.

(f) Violations.

(g) Rule of construction.

(h) Regulations.

1832. Withdrawals by negotiable or transferable instruments for

transfers to third parties.

(a) Authority of depository institution;

applicability.

(b) ''Depository institution'' defined.

(c) Fine.

1833. Repealed.

1833a. Civil penalties.

(a) In general.

(b) Maximum amount of penalty.

(c) Violations to which penalty is applicable.

(d) Effective date.

(e) Attorney General to bring action.

(f) Burden of proof.

(g) Administrative subpoenas.

(h) Statute of limitations.

1833b. Comparability in compensation schedules.

(a) In general.

(b) Commodity Futures Trading Commission.

1833c. Comptroller General audit and access to records.

(a) Audit of agencies or other persons performing

functions under banking laws.

(b) Audit of persons providing certain goods or

services.

(c) Provisions applicable to audits under this

section.

1833d. Repealed.

1833e. Equal opportunity.

(a) In general.

(b) Affirmative program for equal employment

opportunity.

(c) Solicitation of contracts.

(d) Report to Congress.

1834. Reduced assessment rate for deposits attributable to lifeline

accounts.

(a) Qualification of lifeline accounts by Federal

Reserve Board.

(b) Omitted.

(c) Availability of funds.

1834a. Assessment credits for qualifying activities relating to

distressed communities.

(a) Determination of credits for increases in

community enterprise activities.

(b) ''Qualified distressed community'' defined.

(c) Omitted.

(d) Community Enterprise Assessment Credit Board.

(e) Duties of Board.

(f) Availability of funds.

(g) Prohibition on double funding for same

activities.

(h) Priority of awards.

(i) Determination of amount of assessment credit.

(j) Definitions.

1834b. Community development organizations.

(a) Community development organizations described.

(b) Community development bank requirements.

(c) Community development corporation requirements.

(d) Adequate dispersal requirement.

(e) Definitions.

1835. Insured depository institution capital requirements for

transfers of small business obligations.

(a) Accounting principles.

(b) Capital and reserve requirements.

(c) Qualified institutions criteria.

(d) Aggregate amount of recourse.

(e) Institutions that cease to be qualified or exceed

aggregate limits.

(f) Prompt corrective action not affected.

(g) Regulations required.

(h) Alternative system permitted.

(i) Definitions.

1835a. Prohibition against deposit production offices.

(a) Regulations.

(b) Guidelines for meeting credit needs.

(c) Limitation on out-of-State loans.

(d) Application.

(e) Definitions.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 161, 203, 205, 211, 222,

329, 461, 1422, 1441, 1441a, 1464, 1467a, 1470, 1828a, 1841, 1843,

2254, 3104, 3105, 3108, 4713, 4717 of this title; title 7 section

2009cc-9; title 15 sections 78c, 78l, 78m; title 40 section 113;

title 42 section 5318a.

-CITE-

12 USC Sec. 1811 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1811. Federal Deposit Insurance Corporation

-STATUTE-

(a) Establishment of Corporation

There is hereby established a Federal Deposit Insurance

Corporation (hereinafter referred to as the ''Corporation'') which

shall insure, as hereinafter provided, the deposits of all banks

and savings associations which are entitled to the benefits of

insurance under this chapter, and which shall have the powers

hereinafter granted.

(b) Asset disposition division

(1) Establishment

The Corporation shall have a separate division of asset

disposition.

(2) Management

The division of asset disposition shall have an administrator

who shall be appointed by the Board of Directors.

(3) Responsibilities of division

The division of asset disposition shall carry out all of the

responsibilities of the Corporation under this chapter relating

to the liquidation of insured depository institutions and the

disposition of assets of such institutions.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(1), 64 Stat. 873; Pub. L. 101-73,

title II, Sec. 202, Aug. 9, 1989, 103 Stat. 188; Pub. L. 103-204,

Sec. 22(a), Dec. 17, 1993, 107 Stat. 2407.)

-COD-

CODIFICATION

The Federal Deposit Insurance Corporation was originally created

as a part of the Federal Reserve Act by act June 16, 1933, ch. 89,

Sec. 8, 48 Stat. 168, which added section 12B to the Federal

Reserve Act, act Dec. 23, 1913, ch. 6, 38 Stat. 103, and was

classified to section 264 of this title. Act Dec. 23, 1913, ch. 6,

Sec. 12B, as added June 16, 1933, ch. 89, Sec. 8, 48 Stat. 168 has

been amended by acts June 16, 1934, ch. 546, Sec. 1(1)-(10), 48

Stat. 969, 970; June 28, 1935, ch. 335, 49 Stat. 435; Aug. 23,

1935, ch. 614, Sec. 101, 49 Stat. 684; Apr. 21, 1936, ch. 244, 49

Stat. 1237; May 25, 1938, ch. 276, 52 Stat. 442; June 16, 1938, ch.

489, 52 Stat. 767; June 20, 1939, ch. 214, Sec. 2, 53 Stat. 842;

Apr. 13, 1943, ch. 62, Sec. 1, 57 Stat. 65; Aug. 5, 1947, ch. 492,

Sec. 2, 4, 61 Stat. 773; June 25, 1948, ch. 645, Sec. 21, 62 Stat.

862, eff. Sept. 1, 1948; Oct. 15, 1949, ch. 695, Sec. 4, 63 Stat.

880; Aug. 17, 1950, ch. 729, Sec. 5-7, 64 Stat. 457.

Section 12B of the Federal Reserve Act was withdrawn from the

Federal Reserve Act and made a separate Act by section 1 of act

Sept. 21, 1950, and set out as this chapter.

-MISC3-

PRIOR PROVISIONS

Section is derived from subsec. (a) of former section 264 of this

title. See Codification note above.

AMENDMENTS

1993 - Pub. L. 103-204 inserted ''Federal Deposit Insurance

Corporation'' as section catchline, redesignated existing

provisions as subsec. (a), inserted heading, and substituted

''There is hereby established'' for ''There is hereby created'',

and added subsec. (b).

1989 - Pub. L. 101-73 inserted ''and savings associations'' after

''banks''.

EFFECTIVE DATE OF 1993 AMENDMENT

Section 22(b) of Pub. L. 103-204 provided that: ''The amendments

made by subsection (a) (amending this section) shall become

effective on July 1, 1995.''

SHORT TITLE OF 2000 AMENDMENT

Pub. L. 106-569, title XII, Sec. 1200, Dec. 27, 2000, 114 Stat.

3032, provided that: ''This title (enacting sections 215a-2,

215a-3, and 4805a of this title, amending sections 11, 71 to 72,

83, 215b, 1426, 1464, 1467a, 1817, 1818, 1821, 1828, 1831n, and

3102 of this title, repealing sections 51, 1465, and 1831f-1 of

this title, enacting provisions set out as a note under section

1817 of this title, and amending provisions set out as a note under

section 1828 of this title) may be cited as the 'Financial

Regulatory Relief and Economic Efficiency Act of 2000'.''

SHORT TITLE OF 1999 AMENDMENT

Pub. L. 106-102, Sec. 1(a), Nov. 12, 1999, 113 Stat. 1338,

provided that: ''This Act (see Tables for classification) may be

cited as the 'Gramm-Leach-Bliley Act'.''

SHORT TITLE OF 1998 AMENDMENT

Pub. L. 105-277, div. H, Sec. 1, Oct. 21, 1998, 112 Stat.

2681-854, provided that: ''This Division (amending section 1828 of

this title) may be cited as the 'Depository Institution-GSE

Affiliation Act of 1998'.''

SHORT TITLE OF 1997 AMENDMENTS

Pub. L. 105-24, Sec. 1, July 3, 1997, 111 Stat. 238, provided

that: ''This Act (amending sections 36 and 1831a of this title and

enacting provisions set out as a note under section 1831a of this

title) may be cited as the 'Riegle-Neal Amendments Act of 1997'.''

Pub. L. 105-18, title V, Sec. 50001, June 12, 1997, 111 Stat.

211, provided that: ''This title (enacting provisions set out as

notes under this section and sections 1828, 1831o, and 4008 of this

title) may be cited as the 'Depository Institutions Disaster Relief

Act of 1997'.''

SHORT TITLE OF 1996 AMENDMENT

Pub. L. 104-208, div. A, title II, Sec. 2701, Sept. 30, 1996,

110 Stat. 3009-479, provided that: ''This subtitle (subtitle G

(Sec. 2701-2711) of title II of div. A of Pub. L. 104-208 amending

sections 24, 338a, 347b, 1431, 1441 to 1441b, 1464, 1467a, 1723i,

1735f-14, 1813, 1815 to 1817, 1821, 1821a, 1823 to 1825, 1827,

1828, 1831a, 1831e, 1831m, 1831o, 1833a, 1834, 1841, and 3341 of

this title and section 905 of Title 2, The Congress, repealing

section 1831h of this title, and enacting provisions set out as

notes under sections 1441, 1817, and 1821 of this title and section

162 of Title 26, Internal Revenue Code) may be cited as the

'Deposit Insurance Funds Act of 1996'.''

SHORT TITLE OF 1994 AMENDMENT

Pub. L. 103-328, Sec. 1(a), Sept. 29, 1994, 108 Stat. 2338,

provided that: ''This Act (enacting sections 43, 215a-1, 1831u, and

1835a of this title, amending sections 30, 36, 215, 215a, 215b,

1441a, 1462a, 1820, 1821, 1828, 1831a, 1831r-1, 1841, 1842, 1846,

2906, 3103 to 3105, and 3106a of this title and section 1927 of

Title 7, Agriculture, enacting provisions set out as notes under

this section, sections 215, 1828, 3104, 3105, and 3107 of this

title, section 1927 of Title 7, and section 5112 of Title 31, Money

and Finance, and amending provisions set out as notes under this

section and sections 5111 and 5112 of Title 31) may be cited as the

'Riegle-Neal Interstate Banking and Branching Efficiency Act of

1994'.''

SHORT TITLE OF 1993 AMENDMENT

Pub. L. 103-76, Sec. 1, Aug. 12, 1993, 107 Stat. 752, provided

that: ''This Act (enacting provisions set out as notes under this

section and sections 1828, 1831o, and 4008 of this title) may be

cited as the 'Depository Institutions Disaster Relief Act of

1993'.''

SHORT TITLE OF 1992 AMENDMENTS

Pub. L. 102-550, title XV, Sec. 1500, Oct. 28, 1992, 106 Stat.

4044, provided that: ''This title (see Tables for classification)

may be cited as the 'Annunzio-Wylie Anti-Money Laundering Act'.''

Pub. L. 102-485, Sec. 1, Oct. 23, 1992, 106 Stat. 2771, provided

that: ''This Act (enacting sections 338a and 3352 of this title,

amending section 24 of this title, and enacting provisions set out

as notes under this section and sections 1811, 1828, 1831o, and

4008 of this title) may be cited as the 'Depository Institutions

Disaster Relief Act of 1992'.''

SHORT TITLE OF 1991 AMENDMENT

Pub. L. 102-242, Sec. 1(a), Dec. 19, 1991, 105 Stat. 2236, as

amended by Pub. L. 102-550, title XVI, Sec. 1601, Oct. 28, 1992,

106 Stat. 4075, provided that: ''This Act (see Tables for

classification) may be cited as the 'Federal Deposit Insurance

Corporation Improvement Act of 1991'.''

Pub. L. 102-242, title II, Sec. 231, Dec. 19, 1991, 105 Stat.

2308, provided that: ''This subtitle (subtitle C (Sec. 231-234) of

title II of Pub. L. 102-242, enacting sections 1834, 1834a, and

1834b of this title and amending section 1817 of this title) may be

cited as the 'Bank Enterprise Act of 1991'.''

SHORT TITLE OF 1990 AMENDMENT

Pub. L. 101-508, title II, Sec. 2001, Nov. 5, 1990, 104 Stat.

1388-14, provided that: ''This Act (probably means this subtitle,

which is subtitle A (Sec. 2001-2005) of title II of Pub. L.

101-508, amending sections 1817 and 1824 of this title) may be

cited as the 'FDIC Assessment Rate Act of 1990'.''

SHORT TITLE OF 1989 AMENDMENT

Section 1(a) of Pub. L. 101-73 provided that: ''This Act (see

Tables for classification) may be cited as the 'Financial

Institutions Reform, Recovery, and Enforcement Act of 1989'.''

SHORT TITLE OF 1987 AMENDMENT

Pub. L. 100-86, title V, Sec. 501, Aug. 10, 1987, 101 Stat. 623,

provided that: ''This title (enacting sections 1439-1 and 1772b of

this title, amending sections 481, 1726, 1727, 1729, 1730a, 1785,

1786, 1813, 1821, 1823, 1828, 1842, 1843, and 1849 of this title

and sections 905 and 906 of Title 2, The Congress, enacting

provisions set out as a note under section 1464 of this title,

amending provisions set out as a note under section 1729 of this

title, and repealing provisions set out as a note under section

1464 of this title) may be cited as the 'Financial Institutions

Emergency Acquisitions Amendments of 1987'.''

SHORT TITLE OF 1982 AMENDMENT

Pub. L. 97-320, title I, Sec. 101, Oct. 15, 1982, 96 Stat. 1469,

provided that: ''This title (amending sections 1431, 1436, 1437,

1462, 1464, 1725, 1726, 1727, 1728, 1729, 1730, 1730a, 1785, 1786,

1813, 1814, 1817, 1818, 1820, 1821, 1822, 1823, 1828, 1831c, 1841,

1842, and 1843 of this title and enacting provisions set out as a

note under section 1464 of this title) may be cited as the 'Deposit

Insurance Flexibility Act'.''

Pub. L. 97-320, title II, Sec. 201, Oct. 15, 1982, 96 Stat. 1489,

provided that: ''This title (amending sections 1464, 1726, 1729,

and 1823 of this title and enacting provisions set out as notes

under section 1823 of this title) may be cited as the 'Net Worth

Certificate Act'.''

SHORT TITLE OF 1981 AMENDMENT

Pub. L. 97-110, title I, Sec. 101, Dec. 26, 1981, 95 Stat. 1513,

provided that: ''This title (amending sections 1813, 1817, and 1821

of this title) may be cited as the 'International Banking Facility

Deposit Insurance Act'.''

SHORT TITLE OF 1978 AMENDMENT

Pub. L. 95-630, title VI, Sec. 601, Nov. 10, 1978, 92 Stat. 3683,

provided that: ''This title (amending section 1817 of this title)

may be cited as the 'Change in Bank Control Act of 1978'.''

SHORT TITLE

Section 1 of act Sept. 21, 1950, provided: ''That section 12B of

the Federal Reserve Act, as amended, is hereby withdrawn as a part

of that Act and is made a separate Act (enacting this chapter) to

be known as the 'Federal Deposit Insurance Act'.''

SEPARABILITY

Pub. L. 102-242, title IV, Sec. 481, Dec. 19, 1991, 105 Stat.

2388, provided that: ''If any provision of this Act (see Short

Title of 1991 Amendment note above), or any application of any

provision of this Act to any person or circumstance, is held

invalid, the remainder of the Act, and the application of any

remaining provision of the Act to any other person or circumstance,

shall not be affected by such holding.''

Section 1221 of Pub. L. 101-73 provided that: ''If any provision

of this Act (see Short Title of 1989 Amendment note above) or the

application thereof to any person or circumstance is held invalid,

the remainder of the Act and the application of the provision to

other persons not similarly situated or to other circumstances

shall not be affected thereby.''

CONSTRUCTION OF 1999 AMENDMENTS

Pub. L. 106-102, title II, Sec. 210, Nov. 12, 1999, 113 Stat.

1396, provided that: ''Nothing in this Act (see Short Title of 1999

Amendment note above) shall supersede, affect, or otherwise limit

the scope and applicability of the Commodity Exchange Act (7 U.S.C.

1 et seq.).''

Pub. L. 106-102, title VII, Sec. 714, Nov. 12, 1999, 113 Stat.

1470, provided that: ''Nothing in this Act (see Short Title of 1999

Amendment note above) shall be construed to repeal any provision of

the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.).''

CONSTRUCTION OF 1997 AMENDMENT

Pub. L. 105-18, title V, Sec. 50006, June 12, 1997, 111 Stat.

213, provided that: ''No provision of this title (see Short Title

of 1997 Amendments note above) shall be construed as limiting the

authority of any department or agency under any other provision of

law.''

CONSTRUCTION OF 1994 AMENDMENT

Pub. L. 103-328, title I, Sec. 111, Sept. 29, 1994, 108 Stat.

2365, provided that: ''No provision of this title (enacting

sections 43, 215a-1, 1831u, and 1835a of this title, amending

sections 30, 36, 215, 215a, 215b, 1462a, 1820, 1828, 1831a,

1831r-1, 1841, 1842, 1846, 2906, 3103 to 3105, and 3106a of this

title and section 1927 of Title 7, Agriculture, enacting provisions

set out as notes under this section, sections 215, 1828, 3104,

3105, and 3107 of this title and section 1927 of Title 7, and

amending provisions set out as a note under this section) and no

amendment made by this title to any other provision of law shall be

construed as affecting in any way -

''(1) the authority of any State or political subdivision of

any State to adopt, apply, or administer any tax or method of

taxation to any bank, bank holding company, or foreign bank, or

any affiliate of any such bank, bank holding company, or foreign

bank, to the extent that such tax or tax method is otherwise

permissible by or under the Constitution of the United States or

other Federal law;

''(2) the right of any State, or any political subdivision of

any State, to impose or maintain a nondiscriminatory franchise

tax or other nonproperty tax instead of a franchise tax in

accordance with section 3124 of title 31, United States Code; or

''(3) the applicability of section 5197 of the Revised Statutes

(section 85 of this title) or section 27 of the Federal Deposit

Insurance Act (section 1831d of this title).''

CONSTRUCTION OF 1993 AMENDMENTS

Pub. L. 103-76, Sec. 7, Aug. 12, 1993, 107 Stat. 755, provided

that: ''Nothing in this Act (see Short Title of 1993 Amendment note

above) limits the authority of any department or agency under any

other provision of law.''

CONSTRUCTION OF 1992 AMENDMENTS

Pub. L. 102-485, Sec. 8, Oct. 23, 1992, 106 Stat. 2775, provided

that: ''Nothing in this Act (see Short Title of 1992 Amendments

note above) limits the authority of any department or agency under

any other provision of law.''

YEAR 2000 READINESS FOR FINANCIAL INSTITUTIONS

Pub. L. 105-164, Sec. 2, Mar. 20, 1998, 112 Stat. 32, provided

that:

''(a) Findings. - The Congress finds that -

''(1) the Year 2000 computer problem poses a serious challenge

to the American economy, including the Nation's banking and

financial services industries;

''(2) thousands of banks, savings associations, and credit

unions rely heavily on internal information technology and

computer systems, as well as outside service providers, for

mission-critical functions, such as check clearing, direct

deposit, accounting, automated teller machine networks, credit

card processing, and data exchanges with domestic and

international borrowers, customers, and other financial

institutions; and

''(3) Federal financial regulatory agencies must have

sufficient examination authority to ensure that the safety and

soundness of the Nation's financial institutions will not be at

risk.

''(b) Definitions. - For purposes of this section -

''(1) the terms 'depository institution' and 'Federal banking

agency' have the same meanings as in section 3 of the Federal

Deposit Insurance Act (12 U.S.C. 1813);

''(2) the term 'Federal home loan bank' has the same meaning as

in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422);

''(3) the term 'Federal reserve bank' means a reserve bank

established under the Federal Reserve Act (12 U.S.C. 221 et

seq.);

''(4) the term 'insured credit union' has the same meaning as

in section 101 of the Federal Credit Union Act (12 U.S.C. 1752);

and

''(5) the term 'Year 2000 computer problem' means, with respect

to information technology, any problem which prevents such

technology from accurately processing, calculating, comparing, or

sequencing date or time data -

''(A) from, into, or between -

''(i) the 20th and 21st centuries; or

''(ii) the years 1999 and 2000; or

''(B) with regard to leap year calculations.

''(c) Seminars and Model Approaches to Year 2000 Computer

Problem. -

''(1) Seminars. -

''(A) In general. - Each Federal banking agency and the

National Credit Union Administration Board shall offer seminars

to all depository institutions and insured credit unions under

the jurisdiction of such agency on the implication of the Year

2000 computer problem for -

''(i) the safe and sound operations of such depository

institutions and credit unions; and

''(ii) transactions with other financial institutions,

including Federal reserve banks and Federal home loan banks.

''(B) Content and schedule. - The content and schedule of

seminars offered pursuant to subparagraph (A) shall be

determined by each Federal banking agency and the National

Credit Union Administration Board taking into account the

resources and examination priorities of such agency.

''(2) Model approaches. -

''(A) In general. - Each Federal banking agency and the

National Credit Union Administration Board shall make available

to each depository institution and insured credit union under

the jurisdiction of such agency model approaches to common Year

2000 computer problems, such as model approaches with regard to

project management, vendor contracts, testing regimes, and

business continuity planning.

''(B) Variety of approaches. - In developing model approaches

to the Year 2000 computer problem pursuant to subparagraph (A),

each Federal banking agency and the National Credit Union

Administration Board shall take into account the need to

develop a variety of approaches to correspond to the variety of

depository institutions or credit unions within the

jurisdiction of the agency.

''(3) Cooperation. - In carrying out this section, the Federal

banking agencies and the National Credit Union Administration

Board may cooperate and coordinate their activities with each

other, the Financial Institutions Examination Council, and

appropriate organizations representing depository institutions

and credit unions.''

STUDY AND REPORT ON UNITED STATES FINANCIAL SERVICES SYSTEM

Pub. L. 103-328, title II, Sec. 210, Sept. 29, 1994, 108 Stat.

2379, provided that:

''(a) Study. -

''(1) In general. - The Secretary of the Treasury (hereafter in

this section referred to as the 'Secretary') shall, after

consultation with the Advisory Commission on Financial Services

established under subsection (b), and consultation in accordance

with paragraph (3), conduct a study of matters relating to the

strengths and weaknesses of the United States financial services

system in meeting the needs of the system's users, including the

needs of -

''(A) individual consumers and households;

''(B) communities;

''(C) agriculture;

''(D) small-, medium-, and large-sized businesses;

''(E) governmental and nonprofit entities; and

''(F) exporters and other users of international financial

services.

''(2) Matters studied. - The study required under paragraph (1)

shall include consideration of -

''(A) the changes underway in the national and international

economies and the financial services industry, and how those

changes affect the financial services system's ability to

efficiently meet the needs of the national economy and the

system's users during the next 10 years and beyond; and

''(B) the adequacy of existing statutes and regulations, and

the existing regulatory structure, to meet the needs of the

financial services system's users effectively, efficiently, and

without unfair, anticompetitive, or discriminatory practices.

''(3) Consultation. - Consultation in accordance with this

paragraph means consultation with -

''(A) the Board of Governors of the Federal Reserve System;

''(B) the Commodity Futures Trading Commission;

''(C) the Comptroller of the Currency;

''(D) the Director of the Office of Thrift Supervision;

''(E) the Federal Deposit Insurance Corporation;

''(F) the Secretary of the Department of Housing and Urban

Development;

''(G) the Securities and Exchange Commission;

''(H) the Director of the Congressional Budget Office; and

''(I) the Comptroller General of the United States.

''(b) Advisory Commission on Financial Services. -

''(1) Establishment. - There is established the Advisory

Commission on Financial Services (hereafter in this section

referred to as the 'Advisory Commission').

''(2) Membership of commission. - The Advisory Commission -

''(A) shall consist of not less than 9 nor more than 14

members appointed by the Secretary from among individuals -

''(i) who are -

''(I) users of the financial services system; or

''(II) experts in finance or on the financial services system; and

''(ii) who are not employees of the Federal Government; and

''(B) shall include representatives of business, agriculture,

and consumers.

''(3) Chairperson. - The Secretary or the Secretary's designee

shall serve as Chairperson of the Advisory Commission.

''(4) Travel expenses. - Members of the Advisory Commission

shall be allowed travel expenses, including per diem in lieu of

subsistence, at rates authorized for employees of agencies under

subchapter I of chapter 57 of title 5, United States Code, while

away from their homes or regular places of business in performing

services for the Advisory Commission.

''(5) Termination. - The Advisory Commission shall terminate 30

days after the date of submission of the report required under

subsection (d).

''(c) Recommendations. - Based on the results of the study

conducted under subsection (a), the Secretary shall develop such

recommendations as may be appropriate for changes in statutes,

regulations, and policies to improve the operation of the financial

services system, including changes to better -

''(1) meet the needs of, and assure access to the system for,

current and potential users;

''(2) promote economic growth;

''(3) protect consumers;

''(4) promote competition and efficiency;

''(5) avoid risk to the taxpayers;

''(6) control systemic risk; and

''(7) eliminate discrimination.

''(d) Report. - Not later than 15 months after the date of

enactment of this Act (Sept. 29, 1994), the Secretary shall submit

to the President pro tempore of the Senate and the Speaker of the

House of Representatives a report describing the study conducted

under subsection (a) and any recommendations developed under

subsection (c).''

STUDY AND REPORT ON DEPOSITORY INSTITUTIONS DISASTER RELIEF ACTS OF

1992 AND 1993

Pub. L. 103-76, Sec. 5, Aug. 12, 1993, 107 Stat. 754, directed

Secretary of the Treasury, after consultation with appropriate

Federal banking agencies to conduct a study that (1) examined how

agencies and entities granted authority by Depository Institutions

Disaster Relief Act of 1992 and by this Act have exercised such

authority, (2) evaluated the utility of such Acts in facilitating

recovery from disasters consistent with safety and soundness of

depository institutions, and (3) contained recommendations with

respect to whether the authority granted by this Act should be made

permanent, and, not later than 18 months after Aug. 12, 1993,

submit to Congress a report on the results of the study.

FEASIBILITY STUDY ON AUTHORIZING INSURED AND UNINSURED DEPOSIT

ACCOUNTS

Pub. L. 102-242, title III, Sec. 321, Dec. 19, 1991, 105 Stat.

2370, directed Federal Deposit Insurance Corporation to study the

feasibility of authorizing insured depository institutions to offer

both insured and uninsured deposit accounts to customers, specified

factors to be considered in conducting the study, and directed

Corporation, before the end of the 6-month period beginning on Dec.

19, 1991, to submit a report to Congress containing the

Corporation's findings and conclusions with respect to the study

and any recommendations for legislative or administrative action

the Corporation determined to be appropriate.

PRIVATE REINSURANCE STUDY

Pub. L. 102-242, title III, Sec. 322, Dec. 19, 1991, 105 Stat.

2370, directed Board of Directors of Federal Deposit Insurance

Corporation, in consultation with Secretary of the Treasury and

individuals from the private sector with expertise in private

insurance, private reinsurance, depository institutions, or

economics, to conduct a study of the feasibility of establishing a

private reinsurance system, such study to include a demonstration

project consisting of a simulation, by a sample of private

reinsurers and insured depository institutions, of the activities

required for a private reinsurance system, with a report to

Congress on the study before the end of the 18-month period

beginning on Dec. 19, 1991.

PURPOSES OF 1989 AMENDMENT

Section 101 of Pub. L. 101-73 provided that: ''The purposes of

this Act (see Short Title of 1989 Amendment note above) are as

follows:

''(1) To promote, through regulatory reform, a safe and stable

system of affordable housing finance.

''(2) To improve the supervision of savings associations by

strengthening capital, accounting, and other supervisory

standards.

''(3) To curtail investments and other activities of savings

associations that pose unacceptable risks to the Federal deposit

insurance funds.

''(4) To promote the independence of the Federal Deposit

Insurance Corporation from the institutions the deposits of which

it insures, by providing an independent board of directors,

adequate funding, and appropriate powers.

''(5) To put the Federal deposit insurance funds on a sound

financial footing.

''(6) To establish an Office of Thrift Supervision in the

Department of the Treasury, under the general oversight of the

Secretary of the Treasury.

''(7) To establish a new corporation, to be known as the

Resolution Trust Corporation, to contain, manage, and resolve

failed savings associations.

''(8) To provide funds from public and private sources to deal

expeditiously with failed depository institutions.

''(9) To strengthen the enforcement powers of Federal

regulators of depository institutions.

''(10) To strengthen the civil sanctions and criminal penalties

for defrauding or otherwise damaging depository institutions and

their depositors.''

STUDIES OF FEDERAL DEPOSIT INSURANCE, BANKING SERVICES, AND SAFETY

AND SOUNDNESS OF GOVERNMENT-SPONSORED ENTERPRISES

Title X of Pub. L. 101-73, as amended by Pub. L. 103-328, title

I, Sec. 108(a), Sept. 29, 1994, 108 Stat. 2361; Pub. L. 104-208,

div. A, title II, Sec. 2608, Sept. 30, 1996, 110 Stat. 3009-474,

provided that:

''SEC. 1001. STUDY OF FEDERAL DEPOSIT INSURANCE SYSTEM.

''(a) In General. - The Secretary of the Treasury, in

consultation with the Comptroller of the Currency, the Chairman of

the Board of Governors of the Federal Reserve System, the Director

of the Office of Thrift Supervision, the Chairperson of the Federal

Deposit Insurance Corporation, the Chairman of the National Credit

Union Administration Board, the Director of the Office of

Management and Budget, and individuals from the private sector,

shall conduct a study of the Federal deposit insurance system.

''(b) Topics. - As part of the study required under subsection

(a), the Secretary of the Treasury shall investigate, review, and

evaluate the following:

''(1) The feasibility of establishing a deposit insurance

premium rate structure which would take into account, on an

institution-by-institution basis -

''(A) asset quality risk;

''(B) interest rate risk;

''(C) quality of management; and

''(D) profitability and capital.

''(2) Incentives for market discipline, including the

advantages of -

''(A) limiting each depositor to 1 insured account per

institution;

''(B) reducing the amount insured, or providing for a

graduated decrease in the percentage of the amounts deposited

which are insured as the amounts deposited increase;

''(C) combining Federal with private insurance in order to

bring the market discipline of private insurance to bear on the

management of the depository institution; and

''(D) ensuring, by law or regulation, that on the closing of

any insured depository institution, the appropriate Federal

insurance fund will honor only its explicit liabilities, and

will never make good any losses on deposits not explicitly

covered by Federal deposit insurance.

''(3) The scope of deposit insurance coverage and its impact on

the liability of the insurance fund.

''(4) The feasibility of market value accounting, assessments

on foreign deposits, limitations on brokered deposits, the

addition of collateralized borrowings to the deposit insurance

base, and multiple insured accounts.

''(5) The impact on the deposit insurance funds of varying

State and Federal bankruptcy exemptions and the feasibility of -

''(A) uniform exemptions;

''(B) limits on exemptions when necessary to repay

obligations owed to federally insured depository institutions;

and

''(C) requiring borrowers from federally insured depository

institutions to post a personal or corporate bond when

obtaining a mortgage on real property.

''(6) Policies to be followed with respect to the

recapitalization or closure of insured depository institutions

whose capital is depleted to, or near the point of, insolvency.

''(7) The efficiency of housing subsidies through the Federal

home loan bank system.

''(8) Alternatives to Federal deposit insurance.

''(9) The feasibility of developing and administering, through

the appropriate Federal banking agency, an examination of the

principles and techniques of risk management and the application

of such principles and techniques to the management of insured

institutions.

''(10) The adequacy of capital of insured credit unions and the

National Credit Union Share Insurance Fund, including whether the

supervision of such fund should be separated from the other

functions of the National Credit Union Administration.

''(11) The feasibility of requiring, by statute or other means,

that -

''(A) independent auditors and accountants of a depository

institution report the results of any audit of the institution

to the relevant regulatory agency or agencies;

''(B) a regulator share reports on a depository institution

with the institution's independent auditors and accountants;

and

''(C) independent auditors and accountants participate in

conferences between the regulator and the depository

institution.

''(12) The feasibility of adopting regulations which are the

same as or similar to the provisions of England's Banking Act,

1987, ch. 22 (4 Halsbury's Statutes of England and Wales 527-650

(1987)), enacted on May 15, 1987, relating to the Bank of

England's relationship with auditors and reporting accountants

(including sections 8, 39, 41, 45, 46, 47, 82, 83, 85, and 94 of

such Act).

''(c) Final Report. - Not later than the close of the 18-month

period beginning on the date of the enactment of this Act (Aug. 9,

1989), the Secretary of the Treasury shall submit to the Congress a

final report containing a detailed statement of findings made, and

conclusions drawn from, the study conducted under this section,

including such recommendations for administrative and legislative

action as the Secretary determines to be appropriate.

''SEC. 1002. SURVEY OF BANK FEES AND SERVICES.

''(a) Annual Survey Required. - The Board of Governors of the

Federal Reserve System shall obtain a sample, which is

representative by geographic location and size of the institution,

of -

''(1) certain retail banking services provided by insured

depository institutions; and

''(2) the fees, if any, which are imposed by such institutions

for providing any such service, including fees imposed for not

sufficient funds, deposit items returned, and automated teller

machine transactions.

''(b) Annual Report to Congress Required. -

''(1) Preparation. - The Board of Governors of the Federal

Reserve System shall prepare a report of the results of each

survey conducted pursuant to subsection (a).

''(2) Contents of the report. - Each report prepared pursuant

to paragraph (1) shall include -

''(A) a description of any discernible trend, in the Nation

as a whole, in each of the 50 States, and in each consolidated

metropolitan statistical area or primary metropolitan

statistical area (as defined by the Director of the Office of

Management and Budget), in the cost and availability of retail

banking services (including fees imposed for providing such

services), that delineates differences between insured

depository institutions on the basis of both the size of the

institution and any engagement of the institution in multistate

activity; and

''(B) a description of the correlation, if any, among the

following factors:

''(i) An increase or decrease in the amount of any deposit

insurance premium assessed by the Federal Deposit Insurance

Corporation against insured depository institutions.

''(ii) An increase or decrease in the amount of the fees

imposed by such institutions for providing retail banking

services.

''(iii) A decrease in the availability of such services.

''(3) Submission to congress. - The Board of Governors of the

Federal Reserve System shall submit an annual report to the

Congress not later than September 1, 1995, and not later than

June 1 of each subsequent year.

''SEC. 1003. GENERAL ACCOUNTING OFFICE STUDY.

''(a) In General. - The Comptroller General of the United States

shall conduct a study of deposit insurance issues raised by section

1001 emphasizing in particular -

''(1) analysis of the policy considerations affecting the scope

of deposit insurance coverage;

''(2) evaluation of the risks associated with bank insurance

contracts both as to the issuing institution and the deposit

insurance funds; and

''(3) the effect of proposed changes in the definition of

'deposit' on -

''(A) market discipline; and

''(B) the ability of other participants in capital markets to

raise funds.

''(b) Report. - Not later than the close of the 18-month period

beginning on the date of the enactment of this Act (Aug. 9, 1989),

the Comptroller General shall submit to the Congress the results of

the study required by subsection (a).

''SEC. 1004. STUDY REGARDING CAPITAL REQUIREMENTS FOR

GOVERNMENT-SPONSORED ENTERPRISES.

''(a) In General. - The Comptroller General of the United States

shall conduct a study of the risks undertaken by all

government-sponsored enterprises and the appropriate level of

capital for such enterprises consistent with -

''(1) the financial soundness and stability of the

government-sponsored enterprises;

''(2) minimizing any potential financial exposure of the

Federal Government; and

''(3) minimizing any potential impact on borrowing of the

Federal Government.

''(b) Consultation and Cooperation With Other Agencies. - The

Comptroller General shall determine the structure and methodology

of the study under this section in consultation with and with the

cooperation of the Secretary of Agriculture and the Farm Credit

Administration (with respect to the Farm Credit Banks, the Banks

for Cooperatives, and the Federal Agricultural Mortgage

Corporation), the Secretary of Education (with respect to the

Student Loan Marketing Association and the College Construction

Loan Corporation), the Secretary of Housing and Urban Development

(with respect to the Federal National Mortgage Association and the

Federal Home Loan Mortgage Corporation), and the

government-sponsored enterprises.

''(c) Access to Relevant Information. - Each government-sponsored

enterprise shall provide full and prompt access to the Comptroller

General to its books and records and shall promptly provide any

other information requested by the Comptroller General. In

conducting the study under this section, the Comptroller General

may request information from, or the assistance of, any department

or agency of the Federal Government that is authorized by law to

supervise or approve any of the activities of any

government-sponsored enterprise.

''(d) Specific Requirements. - The study shall examine and

evaluate -

''(1) the degrees and types of risks that are undertaken by the

government-sponsored enterprises in the course of their

operations, including credit risk, interest rate risk, management

and operational risk, and business risk;

''(2) the most appropriate method or methods for quantifying

the types of risks undertaken by the government-sponsored

enterprises;

''(3) the actual level of risk that exists with respect to each

government-sponsored enterprise, which shall take into account

factors including the volume and type of securities outstanding

that are issued or guaranteed by each government-sponsored

enterprise and the extent of off-balance sheet expense of each

government-sponsored enterprise;

''(4) the appropriateness of applying a risk-based capital

standard to each government-sponsored enterprise, taking into

account the nature of the business each government-sponsored

enterprise conducts;

''(5) the costs and benefits to the public from application of

a risk-based capital standard to the government-sponsored

enterprises and the impact of such a standard on the capability

of each government-sponsored enterprise to carry out its purpose

under law;

''(6) the impact, if any, of the operation of the

government-sponsored enterprises on borrowing of the Federal

Government;

''(7) the overall level of capital appropriate for each of the

government-sponsored enterprises; and

''(8) the quality and timeliness of information currently

available to the public and the Federal Government concerning the

extent and nature of the activities of government-sponsored

enterprises and the financial risk associated with such

activities.

''(e) Reports to Congress. - The Comptroller General shall submit

to the Congress 2 reports regarding the study under this section.

The first report shall be submitted to the Congress not later than

9 months after the date of the enactment of this Act (Aug. 9, 1989)

and the second report shall be submitted to the Congress not later

than 21 months after the date of the enactment of this Act. Each

report shall set forth -

''(1) the results of the study under this section;

''(2) any recommendations of the Comptroller General with

respect to appropriate capital standards for each

government-sponsored enterprise;

''(3) any recommendations of the Comptroller General with

respect to information that, in the determination of the

Comptroller General, should be provided to the Congress

concerning -

''(A) the extent and nature of the activities of the

government-sponsored enterprises; and

''(B) the nature of any periodic reports that the Comptroller

General believes should be submitted to the Congress relating

to the capital condition and operations of the

government-sponsored enterprises; and

''(4) any recommendations and opinions of the Secretary of

Agriculture, the Secretary of Education, the Secretary of Housing

and Urban Development, and the Secretary of the Treasury

regarding the report, to the extent that the recommendations and

views of such officers differ from the recommendations and

opinions of the Comptroller General.

''(f) Definition. - For purposes of this section, the term

'government-sponsored enterprises' means the Federal Home Loan

Mortgage Corporation, the Federal National Mortgage Association,

the Federal Home Loan Bank System, the Farm Credit Banks, the Banks

for Cooperatives, the Federal Agricultural Mortgage Corporation,

the College Construction Loan Insurance Corporation, the Student

Loan Marketing Association.''

(Pub. L. 103-328, title I, Sec. 108(b), Sept. 29, 1994, 108 Stat.

2362, provided that: ''The requirements of subsection (a) (amending

section 1002 of Pub. L. 101-73, set out above) shall not apply

after the end of the 7-year period beginning on the date of

enactment of this Act (Sept. 29, 1994).'')

EXPANSION OF USE OF UNDERUTILIZED MINORITY BANKS, WOMEN'S BANKS,

AND LOW-INCOME CREDIT UNIONS

Section 1204 of Pub. L. 101-73 provided that:

''(a) Consultation on Expanded Use. - The Secretary of the

Treasury shall consult with the appropriate Federal banking

agencies and the National Credit Union Administration Board on

methods for increasing the use of underutilized minority banks,

women's banks, and limited income credit unions as depositaries or

financial agents of Federal agencies.

''(b) Report to Congress. - The Secretary of the Treasury shall

include, in the 1st annual report submitted to the Congress under

section 331(a) of title 31, United States Code, after the

completion of the consultation required by subsection (a), a report

of the actions taken by the Secretary to increase the use of

underutilized minority banks, women's banks, and limited income

credit unions as depositaries or financial agents of Federal

agencies.

''(c) Definitions. - For purposes of this section:

''(1) Appropriate federal banking agency. - The term

'appropriate Federal banking agency' has the meaning given to

such term in section 3(q) of the Federal Deposit Insurance Act

(12 U.S.C. 1813(q)).

''(2) Minority bank. - The term 'minority bank' means any

depository institution described in clause (i), (ii), or (iii) of

section 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C.

461(b)(1)(A)(i), (ii), (iii)) -

''(A) more than 50 percent of the ownership or control of

which is held by 1 or more minority individuals; and

''(B) more than 50 percent of the net profit or loss of which

accrues to 1 or more minority individuals.

''(3) Minority. - The term 'minority' means any Black American,

Native American, Hispanic American, or Asian American.

''(4) Low-income credit union. - The term 'low-income credit

union' means any depository institution described in section

19(b)(1)(A)(iv) of the Federal Reserve Act which serves

predominately low-income members (as defined by the National

Credit Union Administration Board pursuant to section 101(5) of

the Federal Credit Union Act (12 U.S.C. 1752(5))).

''(5) Women's bank. - The term 'women's bank' means any

depository institution described in clause (i), (ii), or (iii) of

section 19(b)(1)(A) of the Federal Reserve Act -

''(A) more than 50 percent of the outstanding shares of which

are held by 1 or more women;

''(B) a majority of the directors on the board of directors

of which are women; and

''(C) a significant percentage of senior management positions

of which are held by women.''

SMALL INVESTOR PARTICIPATION IN UNITED STATES GOVERNMENT SECURITIES

OFFERINGS; STUDY BY SECRETARY OF THE TREASURY

Section 1207 of Pub. L. 101-73 provided that: ''Not later than

the close of the 18-month period beginning on the date of the

enactment of this Act (Aug. 9, 1989), the Secretary of the Treasury

shall conduct a study and report to the Congress on -

''(1) whether, and to what extent, the issuance of securities

by the United States Government in small denominations benefits

small investors, increases the participation of small investors

in United States Government securities offerings, and promotes

savings and thrift by the average United States taxpayer; and

''(2) additional measures the Secretary recommends be taken to

expand the availability of securities issued by the United States

Government to benefit small investors, increase their

participation in United States Government securities offerings,

and to promote savings and thrift by the average United States

taxpayer.''

EXPENDITURE OF TAXPAYER MONEY ONLY FOR DEPOSIT INSURANCE PURPOSES

Section 1208 of Pub. L. 101-73 provided that: ''Funds

appropriated to the Secretary of the Treasury pursuant to an

authorization contained in this Act (see Short Title of 1989

Amendment note above), and any amount authorized to be borrowed

from the Secretary of the Treasury by any entity pursuant to this

Act, may only be used as permitted by law, and may not otherwise be

used for making any payment to any shareholder in, or creditor to,

any insured depository institution.''

STUDIES OF RELATIONSHIP BETWEEN PUBLIC DEBT AND ACTIVITIES OF

GOVERNMENT-SPONSORED ENTERPRISES

Section 1404 of Pub. L. 101-73 provided that:

''(a) In General. - In order to better manage the bonded

indebtedness of the United States, the Secretary shall conduct 2

annual studies to assess the financial safety and soundness of the

activities of all Government-sponsored enterprises and the impact

of their operations on Federal borrowing.

''(b) Access to Relevant Information. -

''(1) Information from gse's. - Each Government-sponsored

enterprise shall provide full and prompt access to the Secretary

to its books and records, and shall promptly provide any other

information requested by the Secretary.

''(2) Information from supervisory agencies. - In conducting

the studies under this section, the Secretary may request

information from, or the assistance of, any Federal department or

agency authorized by law to supervise the activities of any

Government-sponsored enterprise.

''(3) Confidentiality of information. -

''(A) In general. - The Secretary shall determine and

maintain the confidentiality of any book, record, or

information made available under this subsection in a manner

generally consistent with the level of confidentiality

established for the material by the Government-sponsored

enterprise involved.

''(B) Exemption from public disclosure requirements. - The

Department of the Treasury shall be exempt from section 552 of

title 5, United States Code, with respect to any book, record,

or information made available under this subsection and

determined by the Secretary to be confidential under

subparagraph (A).

''(C) Penalty for unauthorized disclosure. - Any officer or

employee of the Department of the Treasury shall be subject to

the penalties set forth in section 1906 of title 18, United

States Code, if -

''(i) by virtue of his employment or official position, he

has possession of or access to any book, record, or

information made available under this subsection and

determined by the Secretary to be confidential under

subparagraph (A); and

''(ii) he discloses the material in any manner other than -

''(I) to an officer or employee of the Department of the Treasury;

or

''(II) pursuant to the exceptions set forth in such section 1906.

''(c) Assessment of Risk. - In assessing the financial safety and

soundness of the activities of Government-sponsored enterprises,

and the impact of their activities on Federal borrowing, the

Secretary shall quantify the risks associated with each

Government-sponsored enterprise. In quantifying such risks, the

Secretary shall determine the volume and type of securities

outstanding which are issued or guaranteed by each

Government-sponsored enterprise, the capitalization of each

Government-sponsored enterprise, and the degree of risk involved in

the operations of each Government-sponsored enterprise due to

factors such as credit risk, interest rate risk, management and

operations risk, and business risk. The Secretary shall also

report on the quality and timeliness of information currently

available to the public and the Federal Government concerning the

extent and nature of the activities of Government-sponsored

enterprises and the financial risk associated with such activities.

''(d) Reports to Congress. - The Secretary shall submit to the

Congress -

''(1) by May 15, 1990, a report setting forth the results of

the 1st annual study conducted under this section; and

''(2) by May 15, 1991, a report setting forth the results of

the 2nd annual study conducted under this section.

''(e) Definitions. - For purposes of this section:

''(1) Government-sponsored enterprise. - The term

'Government-sponsored enterprise' means -

''(A) the Federal National Mortgage Association, the Federal

Home Loan Mortgage Corporation, the Federal Home Loan Bank

System, the Farm Credit Banks, the Banks for Cooperatives, the

Federal Agricultural Mortgage Corporation, the Student Loan

Marketing Association, the College Construction Loan Insurance

Association, and any of their affiliated or member

institutions; and

''(B) any other Government-sponsored enterprise, as

designated by the Secretary.

''(2) Secretary. - The term 'Secretary' means the Secretary of

the Treasury or his delegate.''

-CITE-

12 USC Sec. 1812 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1812. Management

-STATUTE-

(a) Board of Directors

(1) In general

The management of the Corporation shall be vested in a Board of

Directors consisting of 5 members -

(A) 1 of whom shall be the Comptroller of the Currency;

(B) 1 of whom shall be the Director of the Office of Thrift

Supervision; and

(C) 3 of whom shall be appointed by the President, by and

with the advice and consent of the Senate, from among

individuals who are citizens of the United States, 1 of whom

shall have State bank supervisory experience.

(2) Political affiliation

After February 28, 1993, not more than 3 of the members of the

Board of Directors may be members of the same political party.

(b) Chairperson and Vice Chairperson

(1) Chairperson

1 of the appointed members shall be designated by the

President, by and with the advice and consent of the Senate, to

serve as Chairperson of the Board of Directors for a term of 5

years.

(2) Vice Chairperson

1 of the appointed members shall be designated by the

President, by and with the advice and consent of the Senate, to

serve as Vice Chairperson of the Board of Directors.

(3) Acting Chairperson

In the event of a vacancy in the position of Chairperson of the

Board of Directors or during the absence or disability of the

Chairperson, the Vice Chairperson shall act as Chairperson.

(c) Terms

(1) Appointed members

Each appointed member shall be appointed for a term of 6 years.

(2) Interim appointments

Any member appointed to fill a vacancy occurring before the

expiration of the term for which such member's predecessor was

appointed shall be appointed only for the remainder of such term.

(3) Continuation of service

The Chairperson, Vice Chairperson, and each appointed member

may continue to serve after the expiration of the term of office

to which such member was appointed until a successor has been

appointed and qualified.

(d) Vacancy

(1) In general

Any vacancy on the Board of Directors shall be filled in the

manner in which the original appointment was made.

(2) Acting officials may serve

In the event of a vacancy in the office of the Comptroller of

the Currency or the office of Director of the Office of Thrift

Supervision and pending the appointment of a successor, or during

the absence or disability of the Comptroller or such Director,

the acting Comptroller of the Currency or the acting Director of

the Office of Thrift Supervision, as the case may be, shall be a

member of the Board of Directors in the place of the Comptroller

or Director.

(e) Ineligibility for other offices

(1) Postservice restriction

(A) In general

No member of the Board of Directors may hold any office,

position, or employment in any insured depository institution

or any depository institution holding company during -

(i) the time such member is in office; and

(ii) the 2-year period beginning on the date such member

ceases to serve on the Board of Directors.

(B) Exception for members who serve full term

The limitation contained in subparagraph (A)(ii) shall not

apply to any member who has ceased to serve on the Board of

Directors after serving the full term for which such member was

appointed.

(2) Restriction during service

No member of the Board of Directors may -

(A) be an officer or director of any insured depository

institution, depository institution holding company, Federal

Reserve bank, or Federal home loan bank; or

(B) hold stock in any insured depository institution or

depository institution holding company.

(3) Certification

Upon taking office, each member of the Board of Directors shall

certify under oath that such member has complied with this

subsection and such certification shall be filed with the

secretary of the Board of Directors.

(f) Status of employees

(1) In general

A director, member, officer, or employee of the Corporation has

no liability under the Securities Act of 1933 (15 U.S.C. 77a et

seq.) with respect to any claim arising out of or resulting from

any act or omission by such person within the scope of such

person's employment in connection with any transaction involving

the disposition of assets (or any interests in any assets or any

obligations backed by any assets) by the Corporation. This

subsection shall not be construed to limit personal liability for

criminal acts or omissions, willful or malicious misconduct, acts

or omissions for private gain, or any other acts or omissions

outside the scope of such person's employment.

(2) ''Employee of the Corporation'' defined

For purposes of this subsection, the term ''employee of the

Corporation'' includes any employee of the Office of the

Comptroller of the Currency or of the Office of Thrift

Supervision who serves as a deputy or assistant to a member of

the Board of Directors of the Corporation in connection with

activities of the Corporation.

(3) Effect on other law

This subsection does not affect -

(A) any other immunities and protections that may be

available to such person under applicable law with respect to

such transactions, or

(B) any other right or remedy against the Corporation,

against the United States under applicable law, or against any

person other than a person described in paragraph (1)

participating in such transactions.

This subsection shall not be construed to limit or alter in any

way the immunities that are available under applicable law for

Federal officials and employees not described in this subsection.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(2), 64 Stat. 873; Pub. L. 86-230,

Sec. 19, Sept. 8, 1959, 73 Stat. 460; Pub. L. 98-181, title VII,

Sec. 702(a), Nov. 30, 1983, 97 Stat. 1267; Pub. L. 101-73, title

II, Sec. 203(a), Aug. 9, 1989, 103 Stat. 188; Pub. L. 102-18, title

I, Sec. 103(b), Mar. 23, 1991, 105 Stat. 60; Pub. L. 104-208, div.

A, title II, Sec. 2243, Sept. 30, 1996, 110 Stat. 3009-419.)

-REFTEXT-

REFERENCES IN TEXT

The Securities Act of 1933, referred to in subsec. (f)(1), is act

May 27, 1933, ch. 38, title I, 48 Stat. 74, as amended, which is

classified generally to subchapter I (Sec. 77a et seq.) of chapter

2A of Title 15, Commerce and Trade. For complete classification of

this Act to the Code, see section 77a of Title 15 and Tables.

-MISC2-

PRIOR PROVISIONS

Section is derived from subsec. (b) of former section 264 of this

title. See Codification note set out under section 1811 of this

title.

AMENDMENTS

1996 - Subsec. (a)(1)(C). Pub. L. 104-208 inserted '', 1 of whom

shall have State bank supervisory experience'' before period at

end.

1991 - Subsec. (f). Pub. L. 102-18 added subsec. (f).

1989 - Pub. L. 101-73 amended section generally, designating

existing provisions as subsecs. (a) to (e), and making other

changes relating to the make-up and operation of the Board.

1983 - Pub. L. 98-181 inserted provision that each such

appointive member may continue to serve after the expiration of his

term until a successor has been appointed and qualified.

1959 - Pub. L. 86-230 provided for membership of Acting

Comptroller of the Currency on Board of Directors during absence or

disability of Comptroller instead of only during his absence from

Washington.

TRANSITION PROVISION

Section 203(b) of Pub. L. 101-73 provided that:

''(1) Chairperson. - Notwithstanding any provision of section 2

of the Federal Deposit Insurance Act (12 U.S.C. 1812), the Chairman

of the Board of Directors of the Federal Deposit Insurance

Corporation on the date of the enactment of the Financial

Institutions Reform, Recovery, and Enforcement Act of 1989 (Aug. 9,

1989) may continue to serve as the Chairperson until the end of the

term to which such Chairman was appointed.

''(2) Members. - Notwithstanding any provision of section 2 of

the Federal Deposit Insurance Act, the appointed member of the

Board of Directors of the Federal Deposit Insurance Corporation on

the date of the enactment of the Financial Institutions Reform,

Recovery, and Enforcement Act of 1989 who is not the Chairman shall

continue to serve in office until the earlier of -

''(A) the end of the term to which such member was appointed;

or

''(B) February 28, 1993,

except that such member may continue to serve after the end of such

term until a successor has been appointed and qualified.

''(3) Appointments before march 1, 1993. - Notwithstanding any

provision of section 2 of the Federal Deposit Insurance Act, the

term of any member appointed to the Board of Directors of the

Federal Deposit Insurance Corporation before February 28, 1993

(including the term of any Chairperson), shall end on such date.''

COMPENSATION OF BOARD OF DIRECTORS

Compensation of Chairman and members of the Board, see sections

5314 and 5315 of Title 5, Government Organization and Employees.

-CITE-

12 USC Sec. 1813 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1813. Definitions

-STATUTE-

As used in this chapter -

(a) Definitions of Bank and Related Terms. -

(1) Bank. - The term ''bank'' -

(A) means any national bank, State bank, and District bank,

and any Federal branch and insured branch;

(B) includes any former savings association that -

(i) has converted from a savings association charter; and

(ii) is a Savings Association Insurance Fund member.

(2) State bank. - The term ''State bank'' means any bank,

banking association, trust company, savings bank, industrial bank

(or similar depository institution which the Board of Directors

finds to be operating substantially in the same manner as an

industrial bank), or other banking institution which -

(A) is engaged in the business of receiving deposits, other

than trust funds (as defined in this section); and

(B) is incorporated under the laws of any State or which is

operating under the Code of Law for the District of Columbia

(except a national bank),

including any cooperative bank or other unincorporated bank the

deposits of which were insured by the Corporation on the day

before August 9, 1989.

(3) State. - The term ''State'' means any State of the United

States, the District of Columbia, any territory of the United

States, Puerto Rico, Guam, American Samoa, the Trust Territory of

the Pacific Islands, the Virgin Islands, and the Northern Mariana

Islands.

(4) District bank. - The term ''District bank'' means any State

bank operating under the Code of Law of the District of Columbia.

(b) Definition of Savings Associations and Related Terms. -

(1) Savings association. - The term ''savings association''

means -

(A) any Federal savings association;

(B) any State savings association; and

(C) any corporation (other than a bank) that the Board of

Directors and the Director of the Office of Thrift Supervision

jointly determine to be operating in substantially the same

manner as a savings association.

(2) Federal savings association. - The term ''Federal savings

association'' means any Federal savings association or Federal

savings bank which is chartered under section 1464 of this title.

(3) State savings association. - The term ''State savings

association'' means -

(A) any building and loan association, savings and loan

association, or homestead association; or

(B) any cooperative bank (other than a cooperative bank which

is a State bank as defined in subsection (a)(2) of this

section),

which is organized and operating according to the laws of the

State (as defined in subsection (a)(3) of this section) in which

it is chartered or organized.

(c) Definitions Relating to Depository Institutions. -

(1) Depository institution. - The term ''depository

institution'' means any bank or savings association.

(2) Insured depository institution. - The term ''insured

depository institution'' means any bank or savings association

the deposits of which are insured by the Corporation pursuant to

this chapter.

(3) Institutions included for certain purposes. - The term

''insured depository institution'' includes any uninsured branch

or agency of a foreign bank or a commercial lending company owned

or controlled by a foreign bank for purposes of section 1818 of

this title.

(4) Federal depository institution. - The term ''Federal

depository institution'' means any national bank, any Federal

savings association, and any Federal branch.

(5) State depository institution. - The term ''State depository

institution'' means any State bank, any State savings

association, and any insured branch which is not a Federal

branch.

(d) Definitions Relating to Member Banks. -

(1) National member bank. - The term ''national member bank''

means any national bank which is a member of the Federal Reserve

System.

(2) State member bank. - The term ''State member bank'' means

any State bank which is a member of the Federal Reserve System.

(e) Definitions Relating to Nonmember Banks. -

(1) National nonmember bank. - The term ''national nonmember

bank'' means any national bank which -

(A) is located in any territory of the United States, Puerto

Rico, Guam, American Samoa, the Virgin Islands, or the Northern

Mariana Islands; and

(B) is not a member of the Federal Reserve System.

(2) State nonmember bank. - The term ''State nonmember bank''

means any State bank which is not a member of the Federal Reserve

System.

(f) The term ''mutual savings bank'' means a bank without capital

stock transacting a savings bank business, the net earnings of

which inure wholly to the benefit of its depositors after payment

of obligations for any advances by its organizers.

(g) Savings Bank. - The term ''savings bank'' means a bank

(including a mutual savings bank) which transacts its ordinary

banking business strictly as a savings bank under State laws

imposing special requirements on such banks governing the manner of

investing their funds and of conducting their business.

(h) The term ''insured bank'' means any bank (including a foreign

bank having an insured branch) the deposits of which are insured in

accordance with the provisions of this chapter; and the term

''noninsured bank'' means any bank the deposits of which are not so

insured.

(i) New Bank and Bridge Bank Defined. -

(1) New bank. - The term ''new bank'' means a new national

bank, other than a bridge bank, organized by the Corporation in

accordance with section 1821(m) of this title.

(2) Bridge bank. - The term ''bridge bank'' means a new

national bank organized by the Corporation in accordance with

section 1821(n) of this title.

(j) The term ''receiver'' includes a receiver, liquidating agent,

conservator, commission, person, or other agency charged by law

with the duty of winding up the affairs of a bank or savings

association or of a branch of a foreign bank.

(k) The term ''Board of Directors'' means the Board of Directors

of the Corporation.

(l) The term ''deposit'' means -

(1) the unpaid balance of money or its equivalent received or

held by a bank or savings association in the usual course of

business and for which it has given or is obligated to give

credit, either conditionally or unconditionally, to a commercial,

checking, savings, time, or thrift account, or which is evidenced

by its certificate of deposit, thrift certificate, investment

certificate, certificate of indebtedness, or other similar name,

or a check or draft drawn against a deposit account and certified

by the bank or savings association, or a letter of credit or a

traveler's check on which the bank or savings association is

primarily liable: Provided, That, without limiting the generality

of the term ''money or its equivalent'', any such account or

instrument must be regarded as evidencing the receipt of the

equivalent of money when credited or issued in exchange for

checks or drafts or for a promissory note upon which the person

obtaining any such credit or instrument is primarily or

secondarily liable, or for a charge against a deposit account, or

in settlement of checks, drafts, or other instruments forwarded

to such bank or savings association for collection.

(2) trust funds as defined in this chapter received or held by

such bank or savings association, whether held in the trust

department or held or deposited in any other department of such

bank or savings association.

(3) money received or held by a bank or savings association, or

the credit given for money or its equivalent received or held by

a bank or savings association, in the usual course of business

for a special or specific purpose, regardless of the legal

relationship thereby established, including without being limited

to, escrow funds, funds held as security for an obligation due to

the bank or savings association or others (including funds held

as dealers reserves) or for securities loaned by the bank or

savings association, funds deposited by a debtor to meet maturing

obligations, funds deposited as advance payment on subscriptions

to United States Government securities, funds held for

distribution or purchase of securities, funds held to meet its

acceptances or letters of credit, and withheld taxes: Provided,

That there shall not be included funds which are received by the

bank or savings association for immediate application to the

reduction of an indebtedness to the receiving bank or savings

association, or under condition that the receipt thereof

immediately reduces or extinguishes such an indebtedness.

(4) outstanding draft (including advice or authorization to

charge a bank's or a savings association's balance in another

bank or savings association), cashier's check, money order, or

other officer's check issued in the usual course of business for

any purpose, including without being limited to those issued in

payment for services, dividends, or purchases, and

(5) such other obligations of a bank or savings association as

the Board of Directors, after consultation with the Comptroller

of the Currency, Director of the Office of Thrift Supervision,

and the Board of Governors of the Federal Reserve System, shall

find and prescribe by regulation to be deposit liabilities by

general usage, except that the following shall not be a deposit

for any of the purposes of this chapter or be included as part of

the total deposits or of an insured deposit:

(A) any obligation of a depository institution which is

carried on the books and records of an office of such bank or

savings association located outside of any State, unless -

(i) such obligation would be a deposit if it were carried

on the books and records of the depository institution, and

would be payable at, an office located in any State; and

(ii) the contract evidencing the obligation provides by

express terms, and not by implication, for payment at an

office of the depository institution located in any State;

(B) any international banking facility deposit, including an

international banking facility time deposit, as such term is

from time to time defined by the Board of Governors of the

Federal Reserve System in regulation D or any successor

regulation issued by the Board of Governors of the Federal

Reserve System; and

(C) any liability of an insured depository institution that

arises under an annuity contract, the income of which is tax

deferred under section 72 of title 26.

(m) Insured Deposit. -

(1) In general. - Subject to paragraph (2), the term ''insured

deposit'' means the net amount due to any depositor for deposits

in an insured depository institution as determined under sections

1817(i) and 1821(a) of this title.

(2) In the case of any deposit in a branch of a foreign bank,

the term ''insured deposit'' means an insured deposit as defined

in paragraph (1) of this subsection which -

(A) is payable in the United States to -

(i) an individual who is a citizen or resident of the

United States,

(ii) a partnership, corporation, trust, or other legally

cognizable entity created under the laws of the United States

or any State and having its principal place of business

within the United States or any State, or

(iii) an individual, partnership, corporation, trust, or

other legally cognizable entity which is determined by the

Board of Directors in accordance with its regulations to have

such business or financial relationships in the United States

as to make the insurance of such deposit consistent with the

purposes of this chapter;

and

(B) meets any other criteria prescribed by the Board of

Directors by regulation as necessary or appropriate in its

judgment to carry out the purposes of this chapter or to

facilitate the administration thereof.

(3) Uninsured deposits. - The term ''uninsured deposit'' means

the amount of any deposit of any depositor at any insured

depository institution in excess of the amount of the insured

deposits of such depositor (if any) at such depository

institution.

(4) Preferred deposits. - The term ''preferred deposits'' means

deposits of any public unit (as defined in paragraph (1)) at any

insured depository institution which are secured or

collateralized as required under State law.

(n) The term ''transferred deposit'' means a deposit in a new

bank or other insured depository institution made available to a

depositor by the Corporation as payment of the insured deposit of

such depositor in a closed bank, and assumed by such new bank or

other insured depository institution.

(o) The term ''domestic branch'' includes any branch bank, branch

office, branch agency, additional office, or any branch place of

business located in any State of the United States or in any

Territory of the United States, Puerto Rico, Guam, American Samoa,

the Trust Territory of the Pacific Islands, or the Virgin Islands

at which deposits are received or checks paid or money lent. The

term ''domestic branch'' does not include an automated teller

machine or a remote service unit. The term ''foreign branch''

means any office or place of business located outside the United

States, its territories, Puerto Rico, Guam, American Samoa, the

Trust Territory of the Pacific Islands, or the Virgin Islands, at

which banking operations are conducted.

(p) The term ''trust funds'' means funds held by an insured

depository institution in a fiduciary capacity and includes,

without being limited to, funds held as trustee, executor,

administrator, guardian, or agent.

(q) Appropriate Federal Banking Agency. - The term ''appropriate

Federal banking agency'' means -

(1) the Comptroller of the Currency, in the case of any

national banking association, any District bank, or any Federal

branch or agency of a foreign bank;

(2) the Board of Governors of the Federal Reserve System, in

the case of -

(A) any State member insured bank (except a District bank),

(B) any branch or agency of a foreign bank with respect to

any provision of the Federal Reserve Act (12 U.S.C. 221 et

seq.) which is made applicable under the International Banking

Act of 1978 (12 U.S.C. 3101 et seq.),

(C) any foreign bank which does not operate an insured

branch,

(D) any agency or commercial lending company other than a

Federal agency,

(E) supervisory or regulatory proceedings arising from the

authority given to the Board of Governors under section 7(c)(1)

of the International Banking Act of 1978 (12 U.S.C.

3105(c)(1)), including such proceedings under the Financial

Institutions Supervisory Act of 1966, and

(F) any bank holding company and any subsidiary of a bank

holding company (other than a bank);

(3) the Federal Deposit Insurance Corporation in the case of a

State nonmember insured bank (except a District bank), or a

foreign bank having an insured branch; and

(4) the Director of the Office of Thrift Supervision in the

case of any savings association or any savings and loan holding

company.

Under the rule set forth in this subsection, more than one agency

may be an appropriate Federal banking agency with respect to any

given institution.

(r) State Bank Supervisor. -

(1) In general. - The term ''State bank supervisor'' means any

officer, agency, or other entity of any State which has primary

regulatory authority over State banks or State savings

associations in such State.

(2) Interstate application. - The State bank supervisors of

more than 1 State may be the appropriate State bank supervisor

for any insured depository institution.

(s) Definitions Relating to Foreign Banks and Branches. -

(1) Foreign bank. - The term ''foreign bank'' has the meaning

given to such term by section 1(b)(7) of the International

Banking Act of 1978 (12 U.S.C. 3101(b)(7)).

(2) Federal branch. - The term ''Federal branch'' has the

meaning given to such term by section 1(b)(6) of the

International Banking Act of 1978 (12 U.S.C. 3101(b)(6)).

(3) Insured branch. - The term ''insured branch'' means any

branch (as defined in section 1(b)(3) of the International

Banking Act of 1978 (12 U.S.C. 3101(b)(3))) of a foreign bank any

deposits in which are insured pursuant to this chapter.

(t) Includes, Including. -

(1) In general. - The terms ''includes'' and ''including''

shall not be construed more restrictively than the ordinary usage

of such terms so as to exclude any other thing not referred to or

described.

(2) Rule of construction. - Paragraph (1) shall not be

construed as creating any inference that the term ''includes'' or

''including'' in any other provision of Federal law may be deemed

to exclude any other thing not referred to or described.

(u) Institution-Affiliated Party. - The term

''institution-affiliated party'' means -

(1) any director, officer, employee, or controlling stockholder

(other than a bank holding company) of, or agent for, an insured

depository institution;

(2) any other person who has filed or is required to file a

change-in-control notice with the appropriate Federal banking

agency under section 1817(j) of this title;

(3) any shareholder (other than a bank holding company),

consultant, joint venture partner, and any other person as

determined by the appropriate Federal banking agency (by

regulation or case-by-case) who participates in the conduct of

the affairs of an insured depository institution; and

(4) any independent contractor (including any attorney,

appraiser, or accountant) who knowingly or recklessly

participates in -

(A) any violation of any law or regulation;

(B) any breach of fiduciary duty; or

(C) any unsafe or unsound practice,

which caused or is likely to cause more than a minimal financial

loss to, or a significant adverse effect on, the insured

depository institution.

(v) Violation. - The term ''violation'' includes any action

(alone or with another or others) for or toward causing, bringing

about, participating in, counseling, or aiding or abetting a

violation.

(w) Definitions Relating to Affiliates of Depository

Institutions. -

(1) Depository institution holding company. - The term

''depository institution holding company'' means a bank holding

company or a savings and loan holding company.

(2) Bank holding company. - The term ''bank holding company''

has the meaning given to such term in section 1841 of this title.

(3) Savings and loan holding company. - The term ''savings and

loan holding company'' has the meaning given to such term in

section 1467a of this title.

(4) Subsidiary. - The term ''subsidiary'' -

(A) means any company which is owned or controlled directly

or indirectly by another company; and

(B) includes any service corporation owned in whole or in

part by an insured depository institution or any subsidiary of

such a service corporation.

(5) Control. - The term ''control'' has the meaning given to

such term in section 1841 of this title.

(6) Affiliate. - The term ''affiliate'' has the meaning given

to such term in section 1841(k) of this title.

(7) Company. - The term ''company'' has the same meaning as in

section 1841(b) of this title.

(x) Definitions Relating to Default. -

(1) Default. - The term ''default'' means, with respect to an

insured depository institution, any adjudication or other

official determination by any court of competent jurisdiction,

the appropriate Federal banking agency, or other public authority

pursuant to which a conservator, receiver, or other legal

custodian is appointed for an insured depository institution or,

in the case of a foreign bank having an insured branch, for such

branch.

(2) In danger of default. - The term ''in danger of default''

means an insured depository institution with respect to which (or

in the case of a foreign bank having an insured branch, with

respect to such insured branch) the appropriate Federal banking

agency or State chartering authority has advised the Corporation

(or, if the appropriate Federal banking agency is the

Corporation, the Corporation has determined) that -

(A) in the opinion of such agency or authority -

(i) the depository institution or insured branch is not

likely to be able to meet the demands of the institution's or

branch's depositors or pay the institution's or branch's

obligations in the normal course of business; and

(ii) there is no reasonable prospect that the depository

institution or insured branch will be able to meet such

demands or pay such obligations without Federal assistance;

or

(B) in the opinion of such agency or authority -

(i) the depository institution or insured branch has

incurred or is likely to incur losses that will deplete all

or substantially all of its capital; and

(ii) there is no reasonable prospect that the capital of

the depository institution or insured branch will be

replenished without Federal assistance.

(y) The term ''deposit insurance fund'' means the Bank Insurance

Fund or the Savings Association Insurance Fund, as appropriate.

(z) Federal Banking Agency. - The term ''Federal banking agency''

means the Comptroller of the Currency, the Director of the Office

of Thrift Supervision, the Board of Governors of the Federal

Reserve System, or the Federal Deposit Insurance Corporation.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(3), 64 Stat. 873; July 14, 1952,

ch. 725, 66 Stat. 605; Aug. 1, 1956, ch. 852, Sec. 3, 70 Stat. 908;

Pub. L. 86-671, Sec. 1, July 14, 1960, 74 Stat. 546; Pub. L.

89-695, title II, Sec. 201, title III, Sec. 301(a), 303(a), Oct.

16, 1966, 80 Stat. 1046, 1055, 1056; Pub. L. 91-151, Sec. 7(a)(1),

Dec. 23, 1969, 83 Stat. 375; Pub. L. 91-609, title IX, Sec.

910(a)-(f), Dec. 31, 1970, 84 Stat. 1811, 1812; Pub. L. 93-495,

title I, Sec. 101(a)(1), 102(a)(1), Oct. 28, 1974, 88 Stat. 1500,

1502; Pub. L. 95-369, Sec. 6(c)(2)-(6), Sept. 17, 1978, 92 Stat.

614, 615; Pub. L. 95-630, title III, Sec. 301(a), Nov. 10, 1978, 92

Stat. 3675; Pub. L. 96-221, title III, Sec. 308(a)(1)(A), Mar. 31,

1980, 94 Stat. 147; Pub. L. 97-110, title I, Sec. 102, 103(a), Dec.

26, 1981, 95 Stat. 1513; Pub. L. 97-320, title I, Sec. 113(a), (b),

title VII, Sec. 703(a), (b), Oct. 15, 1982, 96 Stat. 1473, 1538,

1539; Pub. L. 100-86, title I, Sec. 101(g)(1), title V, Sec.

503(b), Aug. 10, 1987, 101 Stat. 563, 632; Pub. L. 101-73, title

II, Sec. 201(a), 204, Aug. 9, 1989, 103 Stat. 187, 190; Pub. L.

102-242, title I, Sec. 111(e), 112(b), 131(c)(3), 141(f), 161(c),

title III, Sec. 305(c), 311(b)(5)(A), Dec. 19, 1991, 105 Stat.

2242, 2266, 2278, 2286, 2355, 2366; Pub. L. 102-550, title XVI,

Sec. 1603(b)(2)(B), (d)(5), 1606(g)(2), Oct. 28, 1992, 106 Stat.

4079, 4080, 4089; Pub. L. 103-204, Sec. 19(b), Dec. 17, 1993, 107

Stat. 2404; Pub. L. 103-325, title III, Sec. 326(b)(2), title VI,

Sec. 602(a)(1), Sept. 23, 1994, 108 Stat. 2229, 2288; Pub. L.

104-208, div. A, title II, Sec. 2205(b), 2614(a), 2704(d)(6)(A),

(14)(A), Sept. 30, 1996, 110 Stat. 3009-405, 3009-478, 3009-488,

3009-490.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Reserve Act, referred to in subsec. (q)(2)(B), is act

Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, which is classified

principally to chapter 3 (Sec. 221 et seq.) of this title. For

complete classification of this Act to the Code, see References in

Text note set out under section 226 of this title and Tables.

The International Banking Act of 1978, referred to in subsec.

(q)(2)(B), is Pub. L. 95-369, Sept. 17, 1978, 92 Stat. 607, which

enacted sections 347d, 611a, and 3101 to 3111 of this title,

amended sections 72, 378, 614, 615, 618, 619, 1813, 1815, 1817,

1818, 1820, 1821, 1822, 1823, 1828, 1829b, 1831b, and 1841 of this

title, and enacted provisions set out as notes under sections 36,

247, 601, 611a, and 3101 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 3101 of this title and Tables.

The Financial Institutions Supervisory Act of 1966, referred to

in subsec. (q)(2)(E), is Pub. L. 89-695, Oct. 16, 1966, 80 Stat.

1028. For complete classification of this Act to the Code, see

Short Title of 1966 Amendment note set out under section 1464 of

this title and Tables.

-MISC2-

PRIOR PROVISIONS

Section is derived from subsec. (c) of former section 264 of this

title. See Codification note set out under section 1811 of this

title.

AMENDMENTS

1996 - Subsec. (a)(1)(B). Pub. L. 104-208, Sec. 2704(d)(14)(A),

which directed striking out subpar. (B) and adding a new subpar.

(B), was not executed. See Effective Date of 1996 Amendment note

below.

Subsec. (l)(5)(C). Pub. L. 104-208, Sec. 2614(a), added subpar.

(C).

Subsec. (o). Pub. L. 104-208, Sec. 2205(b), substituted ''lent.

The term 'domestic branch' does not include an automated teller

machine or a remote service unit. The'' for ''lent; and the''.

Subsec. (y). Pub. L. 104-208, Sec. 2704(d)(6)(A), which directed

the general amendment of subsec. (y), was not executed. See

Effective Date of 1996 Amendment note below.

1994 - Subsec. (i)(1). Pub. L. 103-325, Sec. 602(a)(1)(A),

substituted ''section 1821(m) of this title'' for ''section 1821(h)

of this title''.

Subsec. (l)(4). Pub. L. 103-325, Sec. 602(a)(1)(B), substituted

''a bank's or a'' for ''bank's or'' before ''savings association's

balance''.

Subsec. (l)(5)(A). Pub. L. 103-325, Sec. 326(b)(2), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''any obligation of a bank or savings association which is

payable only at an office of such bank or savings association

located outside of the States of the United States, the District of

Columbia, Puerto Rico, Guam, American Samoa, the Trust Territory of

the Pacific Islands, the Virgin Islands, and the Northern Mariana

Islands; and''.

Subsec. (q)(2)(E). Pub. L. 103-325, Sec. 602(a)(1)(C),

substituted ''Financial Institutions Supervisory Act of 1966'' for

''Depository Institutions Supervisory Act''.

1993 - Subsec. (w)(7). Pub. L. 103-204, Sec. 19(b)(2), added par.

(7).

Subsec. (z). Pub. L. 103-204, Sec. 19(b)(1), amended subsec. (z)

generally. Prior to amendment, subsec. (z) read as follows:

''Federal Banking Agencies. - The term 'Federal banking agencies'

means the Office of the Comptroller of the Currency, the Office of

Thrift Supervision, the Board of Governors of the Federal Reserve

System, and the Federal Deposit Insurance Corporation.''

1992 - Subsec. (i)(2). Pub. L. 102-550, Sec. 1606(g)(2),

substituted ''1821(n)'' for ''1821(i)''.

Subsec. (r). Pub. L. 102-550, Sec. 1603(b)(2)(B), which directed

the amendment of section 112 of the ''Federal Deposit Insurance

Corporation Improvement Act of 1992'', was executed by amending

section 112 of Pub. L. 102-242, which is the Federal Deposit

Insurance Corporation Improvement Act of 1991, to reflect the

probable intent of Congress. See 1991 Amendment note below.

Subsec. (y). Pub. L. 102-550, Sec. 1603(d)(5), amended directory

language of Pub. L. 102-242, Sec. 131(c)(3). See 1991 Amendment

note below.

1991 - Subsec. (m). Pub. L. 102-242, Sec. 311(b)(5)(A), inserted

heading.

Subsec. (m)(1). Pub. L. 102-242, Sec. 311(b)(5)(A), added par.

(1) and struck out former par. (1) which read as follows: ''Subject

to the provisions of paragraph (2) of this subsection, the term

'insured deposit' means the net amount due to any depositor (other

than a depositor referred to in the third sentence of this

subsection) for deposits in an insured depository institution

(after deducting offsets) less any part thereof which is in excess

of $100,000. Such net amount shall be determined according to such

regulations as the Board of Directors may prescribe, and in

determining the amount due to any depositor there shall be added

together all deposits in the depository institution maintained in

the same capacity and the same right for his benefit either in his

own name or in the names of others except trust funds which shall

be insured as provided in subsection (i) of section 1817 of this

title. Each officer, employee, or agent of the United States, of

any State of the United States, of the District of Columbia, of any

Territory of the United States, of Puerto Rico, of Guam, of

American Samoa, of the Trust Territory of the Pacific Islands, of

the Virgin Islands, of the Northern Mariana Islands, of any county,

of any municipality, or of any political subdivision thereof,

herein called 'public unit', having official custody of public

funds and lawfully depositing the same in an insured depository

institution shall, for the purpose of determining the amount of the

insured deposits, be deemed a depositor in such custodial capacity

separate and distinct from any other officer, employee, or agent of

the same or any public unit having official custody of public funds

and lawfully depositing the same in the same insured depository

institution in custodial capacity. For the purpose of clarifying

and defining the insurance coverage under this subsection and

subsection (i) of section 1817 of this title, the Corporation is

authorized to define, with such classifications and exceptions as

it may prescribe, terms used in those subsections, in subsection

(p) of this section, and in subsections (a) and (i) of section 1821

of this title and the extent of the insurance coverage resulting

therefrom.''

Subsec. (m)(3), (4). Pub. L. 102-242, Sec. 141(f), added pars.

(3) and (4).

Subsec. (r). Pub. L. 102-242, Sec. 112(b), as added by Pub. L.

102-550, Sec. 1603(b)(2)(B), amended subsec. (r) generally. Prior

to amendment, subsec. (r) read as follows: ''The terms 'foreign

bank' and 'Federal branch' shall be construed consistently with the

usage of such terms in the International Banking Act of 1978.''

Subsec. (s). Pub. L. 102-242, Sec. 111(e), amended subsec. (s)

generally. Prior to amendment, subsec. (s) read as follows: ''The

term 'insured branch' means a branch of a foreign bank any deposits

in which are insured in accordance with the provisions of this

chapter.''

Subsec. (w). Pub. L. 102-242, Sec. 161(c), substituted

''Affiliates of Depository Institutions'' for ''Holding Companies''

in heading.

Subsec. (y). Pub. L. 102-242, Sec. 131(c)(3), as amended by Pub.

L. 102-550, Sec. 1603(d)(5), added subsec. (y).

Subsec. (z). Pub. L. 102-242, Sec. 305(c), added subsec. (z).

1989 - Subsec. (a). Pub. L. 101-73, Sec. 204(a), amended subsec.

(a) generally, substituting provisions defining ''bank'', ''State

bank'', ''State'', and ''District bank'' for provisions defining

''State bank'' and ''State''.

Subsec. (b). Pub. L. 101-73, Sec. 204(b), amended subsec. (b)

generally, substituting provisions defining ''savings

association'', ''Federal savings association'', and ''State savings

association'' for provisions defining ''State member bank'' and

''State nonmember bank''.

Subsec. (c). Pub. L. 101-73, Sec. 204(c), amended subsec. (c)

generally, substituting definitions relating to depository

institutions for definition of ''District bank''.

Subsec. (d). Pub. L. 101-73, Sec. 204(d), amended subsec. (d)

generally, substituting provisions defining ''national member

bank'' and ''State member bank'' for provisions defining ''national

member bank''.

Subsec. (e). Pub. L. 101-73, Sec. 204(e), amended subsec. (e)

generally, substituting provisions defining ''national nonmember

bank'' and ''State nonmember bank'' for provisions defining

''national nonmember bank''.

Subsec. (j). Pub. L. 101-73, Sec. 204(f)(1), inserted ''or

savings association'' after ''of a bank''.

Subsec. (l)(1) to (3). Pub. L. 101-73, Sec. 204(f)(2)(A),

inserted ''or savings association'' after ''a bank'', ''the bank'',

''receiving bank'', and ''such bank'' wherever appearing.

Subsec. (l)(4). Pub. L. 101-73, Sec. 204(f)(2)(A), (B), inserted

''or savings association'' after ''another bank'', and ''or savings

association's'' after ''bank's''.

Subsec. (l)(5). Pub. L. 101-73, Sec. 204(f)(2)(A), (C), inserted

''or savings association'' after ''a bank'', and '', Director of

the Office of Thrift Supervision,'' after ''Comptroller of the

Currency''.

Subsec. (l)(5)(A). Pub. L. 101-73, Sec. 204(f)(2)(A), (D),

inserted ''or savings association'' after ''a bank'' and after

''such bank'', and substituted ''the Virgin Islands, and the

Northern Mariana Islands'' for ''and the Virgin Islands''.

Subsec. (m)(1). Pub. L. 101-73, Sec. 204(f)(3)(A), substituted

''deposits in the depository institution maintained'' for

''deposits in the bank maintained'' and inserted reference to the

Northern Mariana Islands.

Pub. L. 101-73, Sec. 201(a), substituted ''insured depository

institution'' for ''insured bank'' wherever appearing.

Subsec. (m)(2). Pub. L. 101-73, Sec. 204(f)(3)(B), substituted

''term'' for ''ther''.

Subsec. (n). Pub. L. 101-73, Sec. 201(a), substituted ''insured

depository institution'' for ''insured bank'' wherever appearing.

Subsec. (p). Pub. L. 101-73, Sec. 201(a), substituted ''insured

depository institution'' for ''insured bank''.

Subsec. (q). Pub. L. 101-73, Sec. 204(f)(4), amended subsec. (q)

generally. Prior to amendment, subsec. (q) read as follows: ''The

term 'appropriate Federal banking agency' shall mean -

''(1) the Comptroller of the Currency in the case of a national

banking association, a District bank, or a Federal branch or

agency of a foreign bank;

''(2) the Board of Governors of the Federal Reserve System -

''(A) in the case of a State member insured bank (except a

District bank),

''(B) in the case of any branch or agency of a foreign bank

with respect to any provision of the Federal Reserve Act which

is made applicable under the International Banking Act of 1978,

''(C) in the case of any foreign bank which does not operate

an insured branch,

''(D) in the case of any agency or commercial lending company

other than a Federal agency, and

''(E) in the case of supervisory or regulatory proceedings

arising from the authority given to the Board of Governors

under section 7(c)(1) of the International Banking Act of 1978,

including such proceedings under the Financial Institutions

Supervisory Act,

''(3) the Federal Deposit Insurance Corporation in the case of

a State nonmember insured Bank (except a District bank) or a

foreign bank having an insured branch; and

''(4) the Federal Home Loan Bank Board in the case of an

insured Federal savings bank.

Under the rule set forth in this subsection, more than one agency

may be an appropriate Federal banking agency with respect to any

given institution. For the purposes of subsections (b) through (n)

of section 1818 of this title, the term 'insured bank' shall be

deemed to include any uninsured branch or agency of a foreign bank

or any commercial lending company owned or controlled by a foreign

bank.''

Subsec. (t). Pub. L. 101-73, Sec. 204(f)(5), amended subsec. (t)

generally, substituting provisions relating to definition and

construction of ''includes'' and ''including'' for provisions

defining ''insured Federal savings bank''.

Subsecs. (u) to (x). Pub. L. 101-73, Sec. 204(f)(6), added

subsecs. (u) to (x).

1987 - Subsec. (g). Pub. L. 100-86, Sec. 101(g)(1), amended

subsec. (g) generally. Prior to amendment, subsec. (g) read as

follows: ''The term 'savings bank' means a bank (other than a

mutual savings bank) which transacts its The term 'new bank' means

a new national banking association organized by the Corporation to

assume the insured deposits of an insured bank closed on account of

inability to meet the demands of its depositors and otherwise to

perform temporarily the functions prescribed in this

chapter.ordinary banking business strictly as a savings bank under

State laws imposing special requirements on such banks governing

the manner of investing their funds and of conducting their

business: Provided, That the bank maintains, until maturity date or

until withdrawn, all deposits made with it (other than funds held

by it in a fiduciary capacity) as time savings deposits of the

specific term type or of the type where the right is reserved to

the bank to require written notice before permitting withdrawal:

Provided further, That such bank to be considered a savings bank

must elect to become subject to regulations of the Corporation with

respect to the redeposit of maturing deposits and prohibiting

withdrawal of deposits by checking except in cases where such

withdrawal was permitted by law on August 23, 1935, from

specifically designated deposit accounts totaling not more than 15

per centum of the bank's total deposits.''

Subsec. (i). Pub. L. 100-86, Sec. 503(b), amended subsec. (i)

generally. Prior to amendment, subsec. (i) read as follows: ''The

term 'new bank' means a new national banking association organized

by the Corporation to assume the insured deposits of an insured

bank closed on account of inability to meet the demands of its

depositors and otherwise to perform temporarily the functions

prescribed in this chapter.''

1982 - Subsec. (a). Pub. L. 97-320, Sec. 703(a), inserted

''industrial bank or similar financial institution which the Board

of Directors finds to be operating substantially in the same manner

as an industrial bank,'' before ''or other banking institution''.

Subsec. (l)(1). Pub. L. 97-320, Sec. 703(b), inserted ''thrift

certificate, investment certificate, certificate of indebtedness,

or other similar name,'' before ''or a check or draft drawn against

a deposit account''.

Subsec. (q)(4). Pub. L. 97-320, Sec. 113(a), added par. (4).

Subsec. (t). Pub. L. 97-320, Sec. 113(b), added subsec. (t).

1981 - Subsec. (a). Pub. L. 97-110, Sec. 103(a)(1), inserted

''the Trust Territory of the Pacific Islands,'' after ''American

Samoa,'' wherever appearing.

Subsec. (l)(5). Pub. L. 97-110, Sec. 102, reenacted without

change the provisions preceding subpar. (A), redesignated remaining

existing provisions as subpar. (A), inserted reference to banks

located outside of the Trust Territory of the Pacific Islands in

subpar. (A) as thus redesignated, and added subpar. (B).

Subsec. (m)(1). Pub. L. 97-110, Sec. 103(a)(2), inserted ''of the

Trust Territory of the Pacific Islands,'' after ''American

Samoa,''.

Subsec. (o). Pub. L. 97-110, Sec. 103(a)(3), inserted ''the Trust

Territory of the Pacific Islands,'' after ''American Samoa,''

wherever appearing.

1980 - Subsec. (m)(1). Pub. L. 96-221 substituted ''$100,000''

for ''$40,000''.

1978 - Subsec. (h). Pub. L. 95-369, Sec. 6(c)(2), inserted

''(including a foreign bank having an insured branch)'' after ''The

term 'insured bank' means any bank''.

Subsec. (j). Pub. L. 95-369, Sec. 6(c)(3), inserted ''or of a

branch of a foreign bank'' after ''affairs of a bank''.

Subsec. (m). Pub. L. 95-369, Sec. 6(c)(4), designated existing

provisions as par. (1), inserted ''Subject to the provisions of

paragraph (2) of this subsection'', and added par. (2).

Subsec. (o). Pub. L. 95-630 inserted ''domestic'' before

''branch'' the first time it appeared, and inserted a definition of

''foreign branch'' at end.

Subsec. (q). Pub. L. 95-369, Sec. 6(c)(5), inserted reference to

a Federal branch or agency of a foreign bank in par. (1),

designated existing provisions of par. (2) as par. (2)(A) and added

subpars. (B) to (E), inserted reference to a foreign bank having an

insured branch in par. (3), and inserted closing provisions

relating to the number of agencies which may be an appropriate

Federal banking agency, and defining ''insured bank'' for purposes

of section 1818(b) to (n) of this title.

Subsecs. (r), (s). Pub. L. 95-369, Sec. 6(c)(6), added subsecs.

(r) and (s).

1974 - Subsec. (m). Pub. L. 93-495 inserted ''(other than a

depositor referred to in the third sentence of this subsection)''

after ''net amount due to any depositor'', and substituted

''$40,000'' for ''$20,000''.

1970 - Pub. L. 91-609 inserted reference to American Samoa in

subsecs. (a), (d), (e), (l)(5), (m), and (o), respectively.

1969 - Subsec. (m). Pub. L. 91-151 substituted $20,000 for

$15,000 in first sentence.

1966 - Subsec. (m). Pub. L. 89-695, Sec. 301(a), 303(a),

substituted ''$15,000'' for ''$10,000'' in first sentence and

inserted sentence which, for purpose of clarifying and defining the

insurance coverage under subsec. (m) of this section and section

1817(i) of this title, authorized the Corporation to define terms

used in those provisions, subsec. (p) of this section, and section

1821(a) and (i) of this title and the extent of insurance coverage

resulting therefrom, respectively.

Subsec. (q). Pub. L. 89-695, Sec. 201, added subsec. (q).

1960 - Subsec. (l). Pub. L. 86-671 amended subsec. (l) generally,

and among other changes, inserted in par. (1) ''or held'', ''either

conditionally or unconditionally'', ''or a check or draft drawn

against a deposit account and certified by the bank, or a letter of

credit or a traveler's check on which the bank is primarily

liable'', and inserted the proviso, added pars. (3) and (4),

inserted provisions in par. (5) requiring the Board of Directors to

consult with the Comptroller of the Currency and the Board of

Governors of the Federal Reserve System, and struck out provisions

which permitted mainland banks to exclude from deposit insurance

the deposits of any of its branches in the Virgin Islands.

1956 - Subsec. (a). Act Aug. 1, 1956, Sec. 3(a), inserted

''Guam,'' after ''Puerto Rico,'' and substituted a comma for the

period and inserted ''and the word 'State' means any State of the

United States, the District of Columbia, any Territory of the

United States, Puerto Rico, Guam, or the Virgin Islands''.

Subsecs. (d), (e). Act Aug. 1, 1956, Sec. 3(b), inserted

''Guam,'' after ''Puerto Rico,''.

Subsec. (l). Act Aug. 1, 1956, Sec. 3(c), inserted ''Guam,''

after ''Puerto Rico,'' in first proviso.

Subsec. (m). Act Aug. 1, 1956, Sec. 3(d), inserted ''of Guam,''

after ''of Puerto Rico,''.

Subsec. (o). Act Aug. 1, 1956, Sec. 3(b), inserted ''Guam,''

after ''Puerto Rico,''.

1952 - Subsec. (l). Act July 14, 1952, made it compulsory for

banks having branches in Puerto Rico to insure their deposits.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 2614(b) of div. A of Pub. L. 104-208 provided that:

''The amendments made by subsection (a) (amending this section)

shall apply to any liability of an insured depository that arises

under an annuity contract issued on or after the date of enactment

of this Act (Sept. 30, 1996).''

Amendment by section 2704(d)(6)(A), (14)(A) 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 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, except that where amendment is to

any provision of law added or amended by Pub. L. 102-242 effective

after Dec. 19, 1992, then amendment by Pub. L. 102-550 effective on

effective date of amendment by Pub. L. 102-242, see section 1609 of

Pub. L. 102-550, set out as a note under section 191 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by section 131(c)(3) of Pub. L. 102-242 effective 1

year after Dec. 19, 1991, see section 131(f) of Pub. L. 102-242,

set out as a note under section 1464 of this title.

Amendment by section 311(b)(5)(A) of Pub. L. 102-242 not

applicable to any time deposit which was made before Dec. 19, 1991,

and matures after end of 2-year period beginning Dec. 19, 1991,

with rollovers and renewals treated as new deposits, see section

311(c)(2) of Pub. L. 102-242, set out as a note under section 1821

of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-221 effective Mar. 31, 1980, see section

308(e) of Pub. L. 96-221, set out as a note under section 1817 of

this title.

APPLICABILITY OF 1980 AMENDMENT

Section 308(a)(2) of Pub. L. 96-221 provided that: ''The

amendments made by this subsection (amending this section and

sections 1817 and 1821 of this title) are not applicable to any

claim arising out of the closing of a bank prior to the effective

date of this section (see section 308(e) of Pub. L. 96-221, set out

as a note under section 1817 of this title).''

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-630 effective on 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 101(g) of Pub. L. 93-495 provided that: ''This section

and the amendments made by it (amending this section and sections

1464, 1724, 1728, 1757, 1787, 1817, and 1821 of this title) shall

take effect on the thirtieth day beginning after the date of

enactment of this Act (Oct. 28, 1974).''

Section 102(b), (c) of Pub. L. 93-495 provided that:

''(b) The amendments made by this section (amending this section

and sections 1817 and 1821 of this title) are not applicable to any

claim arising out of the closing of a bank prior to the effective

date of this section.

''(c) The amendments made by this section shall take effect on

the thirtieth day beginning after the date of enactment of this Act

(Oct. 28, 1974).''

EFFECTIVE DATE OF 1969 AMENDMENT

Section 7(b) of Pub. L. 91-151 provided that: ''The amendments

made by this section (amending this section and sections 1817 and

1821 of this title) are not applicable to any claim arising out of

the closing of a bank prior to the date of enactment of this Act

(Dec. 23, 1969).''

EFFECTIVE DATE OF 1966 AMENDMENT

Section 301(e) of Pub. L. 89-695 provided that: ''The amendments

made by this section (amending this section and sections 1817 and

1821 of this title) shall not be applicable to any claim arising

out of the closing of a bank where such closing is prior to the

date of enactment of this Act (Oct. 16, 1966).''

EXPIRATION OF 1966 AMENDMENT

Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84 Stat. 1811,

repealed section 401 of Pub. L. 89-695 which had provided that:

''The provisions of titles I and II of this Act (amending this

section and sections 1464, 1730, 1817 to 1820 of this title,

repealing section 77 of this title, and enacting provisions set out

as notes under this section and sections 1464 and 1730 of this

title) and any provisions of law enacted by said titles shall be

effective only during the period ending at the close of June 30,

1972. Effective upon the expiration of such period, each provision

of law amended by either of such titles is further amended to read

as it did immediately prior to the enactment of this Act (Oct. 16,

1966) and each provision of law repealed by either of such titles

is reenacted''.

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-671 effective Jan. 1, 1961, see section 7

of Pub. L. 86-671, set out as a note under section 1817 of this

title.

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-MISC5-

CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED,

MODIFIED, OR AFFECTED

Section 206 of title II of Pub. L. 89-695 provided that:

''Nothing contained in this title (amending this section and

sections 1817 to 1820 of this title and repealing section 77 of

this title) shall be construed to repeal, modify, or affect the

provisions of section 19 of the Federal Deposit Insurance Act (12

U.S.C. 1829).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 24, 24a, 30, 43, 93, 191,

248, 265, 347b, 371b-2, 375b, 461, 504, 505, 506, 1422, 1441,

1441a, 1462, 1462a, 1464, 1467, 1467a, 1715z-14, 1735f-7a, 1759,

1785, 1786, 1786a, 1790d, 1815, 1817, 1820a, 1828, 1828a, 1828b,

1831q, 1831r, 1831w, 1832, 1834, 1834a, 1834b, 1835, 1835a, 1841,

1842, 1843, 1847, 1861, 1953, 1972, 2013, 2122, 2245, 2278a-3,

2278b-4, 2802, 2804, 2902, 2903, 2906, 2907, 3101, 3102, 3103,

3104, 3105, 3108, 3110, 3350, 3413, 3902, 3909, 4009, 4204, 4224,

4309, 4421, 4702, 4713, 4742, 4801, 4805a, 4808, 4809, 4909 of this

title; title 7 sections 1a, 6f, 27; title 10 sections 4357, 6975,

9356; title 11 sections 101, 109, 781; title 15 sections 57a, 77c,

78c, 78m, 78o, 78o-5, 78q, 80a-2, 80a-17, 80a-26, 80a-34, 80b-3,

80b-10a, 1607, 1679a, 1681s, 1691c, 1692l, 1693o, 6701, 6716, 6805,

6809, 6825; title 18 sections 20, 656, 1004, 1005, 1906, 2113;

title 20 section 1085; title 22 section 5426; title 26 sections 42,

414; title 29 section 1134; title 31 sections 5312, 5318, 5318A,

5321, 5326; title 42 sections 669a, 5318a, 9601.

-CITE-

12 USC Sec. 1814 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1814. Insured depository institutions

-STATUTE-

(a) Continuation of insurance

(1) Banks

Each bank, which is an insured depository institution on

September 21, 1950, shall be and continue to be, without

application or approval, an insured depository institution and

shall be subject to the provisions of this chapter.

(2) Savings associations

Each savings association the accounts of which were insured by

the Federal Savings and Loan Insurance Corporation on the day

before August 9, 1989, shall be, without application or approval,

an insured depository institution.

(b) Continuation of insurance upon becoming a member bank

In the case of an insured bank which is admitted to membership in

the Federal Reserve System or an insured State bank which is

converted into a national member bank, the bank shall continue as

an insured bank.

(c) Continuation of insurance after conversion

Subject to section 1815(d) of this title -

(1) any State depository institution which results from the

conversion of any insured Federal depository institution; and

(2) any Federal depository institution which results from the

conversion of any insured State depository institution,

shall continue as an insured depository institution.

(d) Continuation of insurance after merger or consolidation

Any State depository institution or any Federal depository

institution which results from the merger or consolidation of

insured depository institutions, or from the merger or

consolidation of a noninsured depository institution with an

insured depository institution, shall continue as an insured

depository institution.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(4), 64 Stat. 875; Pub. L. 97-320,

title I, Sec. 113(c), Oct. 15, 1982, 96 Stat. 1473; Pub. L. 101-73,

title II, Sec. 201(a), 205, Aug. 9, 1989, 103 Stat. 187, 194; Pub.

L. 102-242, title I, Sec. 115(b), Dec. 19, 1991, 105 Stat. 2249;

Pub. L. 102-550, title XVI, Sec. 1603(b)(6), Oct. 28, 1992, 106

Stat. 4079.)

-MISC1-

PRIOR PROVISIONS

Section is derived from subsec. (e) of former section 264 of this

title. See Codification note set out under section 1811 of this

title.

AMENDMENTS

1992 - Subsec. (b). Pub. L. 102-550 amended directory language of

Pub. L. 102-242, Sec. 115(b). See 1991 Amendment note below.

1991 - Subsec. (b). Pub. L. 102-242, Sec. 115(b), as amended by

Pub. L. 102-550, Sec. 1603(b)(6), amended subsec. (b) generally,

substituting present provisions for provisions which related to

certification by other banking agencies.

1989 - Pub. L. 101-73, Sec. 201(a), substituted references to

insured depository institutions for references to insured banks

wherever appearing.

Subsec. (a). Pub. L. 101-73, Sec. 205(1), inserted heading,

designated existing provisions as par. (1), inserted par. (1)

heading, and substituted ''Each bank'' for ''Every bank'', and

added par. (2).

Subsec. (b). Pub. L. 101-73, Sec. 205(2)(A), (B), inserted after

first sentence ''Any application or notice for membership or to

commence or resume business shall be promptly provided by the

appropriate Federal banking agency to the Corporation and the

Corporation shall have a reasonable period of time to provide

comments on such application or notice. Any comments submitted by

the Corporation to the appropriate Federal banking agency shall be

considered by such agency.'' and struck out at end ''A State bank,

resulting from the conversion of an insured national bank, shall

continue as an insured bank. A State bank, resulting from the

merger or consolidation of insured banks, or from the merger or

consolidation of a noninsured bank or institution with an insured

State bank, shall continue as an insured bank.''

Pub. L. 101-73, Sec. 205(2)(C), which directed the amendment of

subsec. (b) by substituting ''(b) Certification by Other Banking

Agencies. - Every national bank'' for ''(b) Every national bank''

could not be executed literally because the original read ''(b)

Every national member bank'', but was executed by inserting the

heading without changing the text to reflect the probable intent of

Congress.

Subsec. (c). Pub. L. 101-73, Sec. 205(3), amended subsec. (c)

generally. Prior to amendment, subsec. (c) read as follows:

''Every Federal savings bank which is chartered pursuant to section

1464(o) of this title, and which is engaged in the business of

receiving deposits other than trust funds, shall be an insured bank

from the time it is authorized to commence business, until such

time as its accounts are insured by the Federal Savings and Loan

Insurance Corporation.''

Subsec. (d). Pub. L. 101-73, Sec. 205(3), added subsec. (d).

1982 - Subsec. (c). Pub. L. 97-320 added subsec. (c).

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-558 deemed to have become effective Mar.

1, 1992, see section 304 of Pub. L. 102-558, set out as a note

under section 2062 of Title 50, Appendix, War and National Defense.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1815, 1816, 1817, 1818 of

this title.

-CITE-

12 USC Sec. 1815 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1815. Deposit insurance

-STATUTE-

(a) Application to Corporation required

(1) In general

Except as provided in paragraphs (2) and (3), any depository

institution which is engaged in the business of receiving

deposits other than trust funds (as defined in section 1813(p) of

this title), upon application to and examination by the

Corporation and approval by the Board of Directors, may become an

insured depository institution.

(2) Interim depository institutions

In the case of any interim Federal depository institution that

is chartered by the appropriate Federal banking agency and will

not open for business, the depository institution shall be an

insured depository institution upon the issuance of the

institution's charter by the agency.

(3) Application and approval not required in cases of continued

insurance

Paragraph (1) shall not apply in the case of any depository

institution whose insured status is continued pursuant to section

1814 of this title.

(4) Review requirements

In reviewing any application under this subsection, the Board

of Directors shall consider the factors described in section 1816

of this title in determining whether to approve the application

for insurance.

(5) Notice of denial of application for insurance

If the Board of Directors votes to deny any application for

insurance by any depository institution, the Board of Directors

shall promptly notify the appropriate Federal banking agency and,

in the case of any State depository institution, the appropriate

State banking supervisor of the denial of such application,

giving specific reasons in writing for the Board of Directors'

determination with reference to the factors described in section

1816 of this title.

(6) Nondelegation requirement

The authority of the Board of Directors to make any

determination to deny any application under this subsection may

not be delegated by the Board of Directors.

(b) Foreign branch nonmember banks; matters considered

Subject to the provisions of this chapter and to such terms and

conditions as the Board of Directors may impose, any branch of a

foreign bank, upon application by the bank to the Corporation, and

examination by the Corporation of the branch, and approval by the

Board of Directors, may become an insured branch. Before approving

any such application, the Board of Directors shall give

consideration to -

(1) the financial history and condition of the bank,

(2) the adequacy of its capital structure,

(3) its future earnings prospects,

(4) the general character and fitness of its management,

including but not limited to the management of the branch

proposed to be insured,

(5) the risk presented to the Bank Insurance Fund or the

Savings Association Insurance Fund,

(6) the convenience and needs of the community to be served by

the branch,

(7) whether or not its corporate powers, insofar as they will

be exercised through the proposed insured branch, are consistent

with the purposes of this chapter, and

(8) the probable adequacy and reliability of information

supplied and to be supplied by the bank to the Corporation to

enable it to carry out its functions under this chapter.

(c) Protection to deposit insurance fund; surety bond, pledge of

assets, etc.; injunction

(1) Before any branch of a foreign bank becomes an insured

branch, the bank shall deliver to the Corporation or as the

Corporation may direct a surety bond, a pledge of assets, or both,

in such amounts and of such types as the Corporation may require or

approve, for the purpose set forth in paragraph (4) of this

subsection.

(2) After any branch of a foreign bank becomes an insured branch,

the bank shall maintain on deposit with the Corporation, or as the

Corporation may direct, surety bonds or assets or both, in such

amounts and of such types as shall be determined from time to time

in accordance with such regulations as the Board of Directors may

prescribe. Such regulations may impose differing requirements on

the basis of any factors which in the judgment of the Board of

Directors are reasonably related to the purpose set forth in

paragraph (4).

(3) The Corporation may require of any given bank larger deposits

of bonds and assets than required under paragraph (2) of this

subsection if, in the judgment of the Corporation, the situation of

that bank or any branch thereof is or becomes such that the

deposits of bonds and assets otherwise required under this section

would not adequately fulfill the purpose set forth in paragraph

(4). The imposition of any such additional requirements may be

without notice or opportunity for hearing, but the Corporation

shall afford an opportunity to any such bank to apply for a

reduction or removal of any such additional requirements so

imposed.

(4) The purpose of the surety bonds and pledges of assets

required under this subsection is to provide protection to the

deposit insurance fund against the risks entailed in insuring the

domestic deposits of a foreign bank whose activities, assets, and

personnel are in large part outside the jurisdiction of the United

States. In the implementation of its authority under this

subsection, however, the Corporation shall endeavor to avoid

imposing requirements on such banks which would unnecessarily place

them at a competitive disadvantage in relation to domestically

incorporated banks.

(5) In the case of any failure or threatened failure of a foreign

bank to comply with any requirement imposed under this subsection

(c), the Corporation, in addition to all other administrative and

judicial remedies, may apply to any United States district court,

or United States court of any territory, within the jurisdiction of

which any branch of the bank is located, for an injunction to

compel such bank and any officer, employee, or agent thereof, or

any other person having custody or control of any of its assets, to

deliver to the Corporation such assets as may be necessary to meet

such requirement, and to take any other action necessary to vest

the Corporation with control of assets so delivered. If the court

shall determine that there has been any such failure or threatened

failure to comply with any such requirement, it shall be the duty

of the court to issue such injunction. The propriety of the

requirement may be litigated only as provided in chapter 7 of title

5, and may not be made an issue in an action for an injunction

under this paragraph.

(d) Insurance fees

(1) Uninsured institutions

(A) In general

Any institution that becomes insured by the Corporation, and

any noninsured branch that becomes insured by the Corporation,

shall pay the Corporation any fee which the Corporation may by

regulation prescribe, after giving due consideration to the

need to establish and maintain reserve ratios in the Bank

Insurance Fund and the Savings Association Insurance Fund as

required by section 1817 of this title.

(B) Fee credited to appropriate fund

The fee paid by the depository institution shall be credited

to the Bank Insurance Fund if the depository institution

becomes a Bank Insurance Fund member, and to the Savings

Association Insurance Fund if the depository institution

becomes a Savings Association Insurance Fund member.

(C) Exception for certain depository institutions

Any depository institution that becomes an insured depository

institution by operation of section 1814(a) of this title shall

not pay any fee.

(2) Conversions

(A) In general

(i) Prior approval required

No insured depository institution may participate in a

conversion transaction without the prior approval of the

Corporation.

(ii) 5-year moratorium on conversions

Except as provided in subparagraph (C), the Corporation may

not approve any conversion transaction before the later of

the end of the 5-year period beginning on August 9, 1989, or

the date on which the Savings Association Insurance Fund

first meets or exceeds the designated reserve ratio for such

fund.

(B) ''Conversion transaction'' defined

For purposes of this paragraph, the term ''conversion

transaction'' means -

(i) the change of status of an insured depository

institution from a Bank Insurance Fund member to a Savings

Association Insurance Fund member or from a Savings

Association Insurance Fund member to a Bank Insurance Fund

member;

(ii) the merger or consolidation of a Bank Insurance Fund

member with a Savings Association Insurance Fund member;

(iii) the assumption of any liability by -

(I) any Bank Insurance Fund member to pay any deposits of

a Savings Association Insurance Fund member; or

(II) any Savings Association Insurance Fund member to pay

any deposits of a Bank Insurance Fund member;

(iv) the transfer of assets of -

(I) any Bank Insurance Fund member to any Savings

Association Insurance Fund member in consideration of the

assumption of liabilities for any portion of the deposits

of such Bank Insurance Fund member; or

(II) any Savings Association Insurance Fund member to any

Bank Insurance Fund member in consideration of the

assumption of liabilities for any portion of the deposits

of such Savings Association Insurance Fund member; and

(v) the transfer of deposits -

(I) from a Bank Insurance Fund member to a Savings

Association Insurance Fund member; or

(II) from a Savings Association Insurance Fund member to

a Bank Insurance Fund member;

in a transaction in which the deposit is received from a

depositor at an insured depository institution for which a

receiver has been appointed and the receiving insured

depository institution is acting as agent for the Corporation

in connection with the payment of such deposit to the

depositor at the institution for which a receiver has been

appointed.

(C) Approval during moratorium

The Corporation may approve a conversion transaction at any

time if -

(i) the conversion transaction affects an insubstantial

portion, as determined by the Corporation, of the total

deposits of each depository institution participating in the

conversion transaction;

(ii) the conversion occurs in connection with the

acquisition of a Savings Association Insurance Fund member in

default or in danger of default, and the Corporation

determines that the estimated financial benefits to the

Savings Association Insurance Fund or Resolution Trust

Corporation equal or exceed the Corporation's estimate of

loss of assessment income to such insurance fund over the

remaining balance of the moratorium period established by

subparagraph (A), and the Resolution Trust Corporation

concurs in the Corporation's determination; or

(iii) the conversion occurs in connection with the

acquisition of a Bank Insurance Fund member in default or in

danger of default and the Corporation determines that the

estimated financial benefits to the Bank Insurance Fund equal

or exceed the Corporation's estimate of the loss of

assessment income to the insurance fund over the remaining

balance of the moratorium period established by subparagraph

(A).

(D) Certain transfers deemed to affect insubstantial portion of

total deposits

For purposes of subparagraph (C)(i), any conversion

transaction shall be deemed to affect an insubstantial portion

of the total deposits of an insured depository institution, to

the extent the aggregate amount of the total deposits

transferred in such transaction and in all conversion

transactions occurring after August 9, 1989, does not exceed 35

percent of the lesser of -

(i) the amount which is equal to the sum of -

(I) the total deposits of such insured depository

institution on May 1, 1989; and

(II) the total amount of net interest credited to the

depository institution's deposits during the period

beginning on May 1, 1989, and ending on the date of the

transfer of deposits in connection with such transaction;

or

(ii) the amount which is equal to the total deposits of

such insured depository institution on the date of the

transfer of deposits in connection with such transaction.

(E) Exit and entrance fees

Each insured depository institution participating in a

conversion transaction shall pay -

(i) in the case of a conversion transaction in which the

resulting or acquiring depository institution is not a

Savings Association Insurance Fund member, an exit fee (in an

amount to be determined and assessed in accordance with

subparagraph (F)) which -

(I) shall be deposited in the Savings Association

Insurance Fund; or

(II) shall be paid to the Financing Corporation, if the

Secretary of the Treasury determines that the Financing

Corporation has exhausted all other sources of funding for

interest payments on the obligations of the Financing

Corporation and orders that such fees be paid to the

Financing Corporation;

(ii) in the case of a conversion transaction in which the

resulting or acquiring depository institution is not a Bank

Insurance Fund member, an exit fee in an amount to be

determined by the Corporation (and assessed in accordance

with subparagraph (F)(ii)) which shall be deposited in the

Bank Insurance Fund; and

(iii) an entrance fee in an amount to be determined by the

Corporation (and assessed in accordance with subparagraph

(F)(ii)), except that -

(I) in the case of a conversion transaction in which the

resulting or acquiring depository institution is a Bank

Insurance Fund member, the fee shall be the approximate

amount which the Corporation calculates as necessary to

prevent dilution of the Bank Insurance Fund, and shall be

paid to the Bank Insurance Fund; and

(II) in the case of a conversion transaction in which the

resulting or acquiring depository institution is a Savings

Association Insurance Fund member, the fee shall be the

approximate amount which the Corporation calculates as

necessary to prevent dilution of the Savings Association

Insurance Fund, and shall be paid to the Savings

Association Insurance Fund.

(F) Assessment of exit and entrance fees

(i) Determination of amount of exit fees

(I) Conversions before January 1, 1997

In the case of any exit fee assessed under subparagraph

(E)(i) for any conversion transaction consummated before

January 1, 1997, the amount of such fee shall be determined

jointly by the Corporation and the Secretary of the

Treasury.

(II) Assessments after December 31, 1996

In the case of any exit fee assessed under subparagraph

(E)(i) for any conversion transaction consummated after

December 31, 1996, the amount of such fee shall be

determined by the Corporation.

(ii) Procedures

The Corporation shall prescribe, by regulation, procedures

for assessing any exit or entrance fee under subparagraph

(E).

(G) Charter conversion of SAIF members

This subsection shall not be construed as prohibiting any

savings association which is a Savings Association Insurance

Fund member from converting to a bank charter during the period

described in subparagraph (A)(ii) if the resulting bank remains

a Savings Association Insurance Fund member.

(3) Optional conversions subject to special rules on deposit

insurance payments

(A) Conversions allowed

Notwithstanding paragraph (2)(A), and subject to the

requirements of this paragraph, any insured depository

institution may participate in a transaction described in

clause (ii), (iii), or (iv) of paragraph (2)(B) if the

transaction is approved by the responsible agency under section

1828(c)(2) of this title.

(B) Assessments on deposits attributable to former depository

institution

(i) Assessments by SAIF

In the case of any acquiring, assuming, or resulting

depository institution which is a Bank Insurance Fund member,

that portion of the deposits of such member for any

semiannual period which is equal to the adjusted attributable

deposit amount (determined under subparagraph (C) with

respect to the transaction) shall be treated as deposits

which are insured by the Savings Association Insurance Fund.

(ii) Assessments by BIF

In the case of any acquiring, assuming, or resulting

depository institution which is a Savings Association

Insurance Fund member, that portion of the deposits of such

member for any semiannual period which is equal to the

adjusted attributable deposit amount (determined under

subparagraph (C) with respect to the transaction) shall be

treated as deposits which are insured by the Bank Insurance

Fund.

(C) Determination of adjusted attributable deposit amount

Except as provided in subparagraph (K), the adjusted

attributable deposit amount which shall be taken into account

for purposes of determining the amount of the assessment under

subparagraph (B) for any semiannual period by any acquiring,

assuming, or resulting depository institution in connection

with a transaction under subparagraph (A) is the amount which

is equal to the sum of -

(i) the amount of any deposits acquired by the institution

in connection with the transaction (as determined at the time

of such transaction);

(ii) the total of the amounts determined under clause (iii)

for semiannual periods preceding the semiannual period for

which the determination is being made under this

subparagraph; and

(iii) the amount by which the sum of the amounts described

in clauses (i) and (ii) would have increased during the

preceding semiannual period (other than any semiannual period

beginning before the date of such transaction) if such

increase occurred at a rate equal to the annual rate of

growth of deposits of the acquiring, assuming, or resulting

depository institution minus the amount of any deposits

acquired through the acquisition, in whole or in part, of

another insured depository institution.

(D) Deposit of assessment

That portion of any assessment under section 1817 of this

title which -

(i) is determined in accordance with subparagraph (B)(i)

shall be deposited in the Savings Association Insurance Fund;

and

(ii) is determined in accordance with subparagraph (B)(ii)

shall be deposited in the Bank Insurance Fund.

(E) Conditions for approval, generally

(i) Information required

An application to engage in any transaction under this

paragraph shall contain such information relating to the

factors to be considered for approval as the responsible

agency may require, by regulation or by specific request, in

connection with any particular application.

(ii) No transfer of deposit insurance permitted

This paragraph shall not be construed as authorizing

transactions which result in the transfer of any insured

depository institution's Federal deposit insurance from 1

Federal deposit insurance fund to the other Federal deposit

insurance fund.

(iii) Capital requirements

A transaction described in this paragraph shall not be

approved under section 1828(c)(2) of this title unless the

acquiring, assuming, or resulting depository institution will

meet all applicable capital requirements upon consummation of

the transaction.

(F) Certain interstate transactions

A Bank Insurance Fund member which is a subsidiary of a bank

holding company may not be the acquiring, assuming, or

resulting depository institution in a transaction under

subparagraph (A) unless the transaction would comply with the

requirements of section 1842(d) of this title if, at the time

of such transaction, the Savings Association Insurance Fund

member involved in such transaction was a State bank that the

bank holding company was applying to acquire.

(G) Allocation of costs in event of default

If any acquiring, assuming, or resulting depository

institution is in default or danger of default at any time

before this paragraph ceases to apply, any loss incurred by the

Corporation shall be allocated between the Bank Insurance Fund

and the Savings Association Insurance Fund, in amounts

reflecting the amount of insured deposits of such acquiring,

assuming, or resulting depository institution assessed by the

Bank Insurance Fund and the Savings Association Insurance Fund,

respectively, under subparagraph (B).

(H) Subsequent approval of conversion transaction

This paragraph shall cease to apply if -

(i) after the end of the moratorium period established by

paragraph (2)(A), the Corporation approves an application by

any acquiring, assuming, or resulting depository institution

to treat the transaction described in subparagraph (A) as a

conversion transaction; and

(ii) the acquiring, assuming, or resulting depository

institution pays the amount of any exit and entrance fee

assessed by the Corporation under subparagraph (E) of

paragraph (2) with respect to such transaction.

(I) ''Acquiring, assuming, or resulting depository

institution'' defined

For purposes of this paragraph, the term ''acquiring,

assuming, or resulting depository institution'' means any

insured depository institution which -

(i) results from any transaction described in paragraph

(2)(B)(ii) and approved under this paragraph;

(ii) in connection with a transaction described in

paragraph (2)(B)(iii) and approved under this paragraph,

assumes any liability to pay deposits of another insured

depository institution; or

(iii) in connection with a transaction described in

paragraph (2)(B)(iv) and approved under this paragraph,

acquires assets from any insured depository institution in

consideration of the assumption of liability for any deposits

of such institution.

(J) Redesignated (I)

(K) Adjustment of adjusted attributable deposit amount

The amount determined under subparagraph (C)(i) for deposits

acquired by March 31, 1995, shall be reduced by 20 percent for

purposes of computing the adjusted attributable deposit amount

for the payment of any assessment for any semiannual period

that begins after September 30, 1996 (other than the special

assessment imposed under section 2702(a) of such Act), for a

Bank Insurance Fund member bank that, as of June 30, 1995 -

(i) had an adjusted attributable deposit amount that was

less than 50 percent of the total deposits of that member

bank; or

(ii)(I) had an adjusted attributable deposit amount equal

to less than 75 percent of the total assessable deposits of

that member bank;

(II) had total assessable deposits greater than

$5,000,000,000; and

(III) was owned or controlled by a bank holding company

that owned or controlled insured depository institutions

having an aggregate amount of deposits insured or treated as

insured by the Bank Insurance Fund greater than the aggregate

amount of deposits insured or treated as insured by the

Savings Association Insurance Fund.

(e) Liability of commonly controlled depository institutions

(1) In general

(A) Liability established

Any insured depository institution shall be liable for any

loss incurred by the Corporation, or any loss which the

Corporation reasonably anticipates incurring, after August 9,

1989, in connection with -

(i) the default of a commonly controlled insured depository

institution; or

(ii) any assistance provided by the Corporation to any

commonly controlled insured depository institution in danger

of default.

(B) Payment upon notice

An insured depository institution shall pay the amount of any

liability to the Corporation under subparagraph (A) upon

receipt of written notice by the Corporation in accordance with

this subsection.

(C) Notice required to be provided within 2 years of loss

No insured depository institution shall be liable to the

Corporation under subparagraph (A) if written notice with

respect to such liability is not received by such institution

before the end of the 2-year period beginning on the date the

Corporation incurred the loss.

(2) Amount of compensation; procedures

(A) Use of estimates

When an insured depository institution is in default or

requires assistance to prevent default, the Corporation shall -

(i) in good faith, estimate the amount of the loss the

Corporation will incur from such default or assistance;

(ii) if, with respect to such insured depository

institution, there is more than 1 commonly controlled insured

depository institution, estimate the amount of each such

commonly controlled depository institution's share of such

liability; and

(iii) advise each commonly controlled depository

institution of the Corporation's estimate of the amount of

such institution's liability for such losses.

(B) Procedures; immediate payment

The Corporation, after consultation with the appropriate

Federal banking agency and the appropriate State chartering

agency, shall -

(i) on a case-by-case basis, establish the procedures and

schedule under which any insured depository institution shall

reimburse the Corporation for such institution's liability

under paragraph (1) in connection with any commonly

controlled insured depository institution; or

(ii) require any insured depository institution to make

immediate payment of the amount of such institution's

liability under paragraph (1) in connection with any commonly

controlled insured depository institution.

(C) Priority

The liability of any insured depository institution under

this subsection shall have priority with respect to other

obligations and liabilities as follows:

(i) Superiority

The liability shall be superior to the following

obligations and liabilities of the depository institution:

(I) Any obligation to shareholders arising as a result of

their status as shareholders (including any depository

institution holding company or any shareholder or creditor

of such company).

(II) Any obligation or liability owed to any affiliate of

the depository institution (including any other insured

depository institution), other than any secured obligation

which was secured as of May 1, 1989.

(ii) Subordination

The liability shall be subordinate in right and payment to

the following obligations and liabilities of the depository

institution:

(I) Any deposit liability (which is not a liability

described in clause (i)(II)).

(II) Any secured obligation, other than any obligation

owed to any affiliate of the depository institution

(including any other insured depository institution) which

was secured after May 1, 1989.

(III) Any other general or senior liability (which is not

a liability described in clause (i)).

(IV) Any obligation subordinated to depositors or other

general creditors (which is not an obligation described in

clause (i)).

(D) Adjustment of estimated payment

(i) Overpayment

If the amount of compensation estimated by and paid to the

Corporation by 1 or more such commonly controlled depository

institutions is greater than the actual loss incurred by the

Corporation, the Corporation shall reimburse each such

commonly controlled depository institution its pro rata share

of any overpayment.

(ii) Underpayment

If the amount of compensation estimated by and paid to the

Corporation by 1 or more such commonly controlled depository

institutions is less than the actual loss incurred by the

Corporation, the Corporation shall redetermine in its

discretion the liability of each such commonly controlled

depository institution to the Corporation and shall require

each such commonly controlled depository institution to make

payment of any additional liability to the Corporation.

(3) Review

(A) Judicial

Actions of the Corporation shall be reviewable pursuant to

chapter 7 of title 5.

(B) Administrative

The Corporation shall prescribe regulations and establish

administrative procedures which provide for a hearing on the

record for the review of -

(i) the amount of any loss incurred by the Corporation in

connection with any insured depository institution;

(ii) the liability of individual commonly controlled

depository institutions for the amount of such loss; and

(iii) the schedule of payments to be made by such commonly

controlled depository institutions.

(4) Limitation on rights of private parties

To the extent the exercise of any right or power of any person

would impair the ability of any insured depository institution to

perform such institution's obligations under this subsection -

(A) the obligations of such insured depository institution

shall supersede such right or power; and

(B) no court may give effect to such right or power with

respect to such insured depository institution.

(5) Waiver authority

(A) In general

The Corporation, in its discretion, may exempt any insured

depository institution from the provisions of this subsection

if the Corporation determines that such exemption is in the

best interests of the Bank Insurance Fund or the Savings

Association Insurance Fund.

(B) Condition

During the period any exemption granted to any insured

depository institution under subparagraph (A) or (C) is in

effect, such insured depository institution and all other

insured depository institution affiliates of such depository

institution shall comply fully with the restrictions of

sections 371c and 371c-1 of this title without regard to

section 371c(d)(1) of this title.

(C) Limited partnerships

(i) In general

The Corporation may, in its discretion, exempt any limited

partnership and any affiliate of any limited partnership

(other than any insured depository institution which is a

majority owned subsidiary of such partnership) from the

provisions of this subsection if such limited partnership or

affiliate has filed a registration statement with the

Securities and Exchange Commission on or before April 10,

1989, indicating that as of the date of such filing such

partnership intended to acquire 1 or more insured depository

institutions.

(ii) Review and notice

Within 10 business days after the date of submission of any

request for an exemption under this subparagraph together

with such information as shall be reasonably requested by the

Corporation, the Corporation shall make a determination on

the request and shall so advise the applicant.

(6) 5-year transition rule

During the 5-year period beginning on August 9, 1989 -

(A) no Savings Association Insurance Fund member shall have

any liability to the Corporation under this subsection arising

out of assistance provided by the Corporation or any loss

incurred by the Corporation as a result of the default of a

Bank Insurance Fund member which was acquired by such Savings

Association Insurance Fund member or any affiliate of such

member before August 9, 1989; and

(B) no Bank Insurance Fund member shall have such liability

with respect to assistance provided by or loss incurred by the

Corporation as a result of the default of a Savings Association

Insurance Fund member which was acquired by such Bank Insurance

Fund member or any affiliate of such member before August 9,

1989.

(7) Exclusion for institutions acquired in debt collections

Any depository institution shall not be treated as commonly

controlled, for purposes of this subsection, during the 5-year

period beginning on the date of an acquisition described in

subparagraph (A) or such longer period as the Corporation may

determine after written application by the acquirer, if -

(A) 1 depository institution controls another by virtue of

ownership of voting shares acquired in securing or collecting a

debt previously contracted in good faith; and

(B) during the period beginning on August 9, 1989, and ending

upon the expiration of the exclusion, the controlling bank and

all other insured depository institution affiliates of such

controlling bank comply fully with the restrictions of sections

371c and 371c-1 of this title, without regard to section

371c(d)(1) of this title, in transactions with the acquired

insured depository institution.

(8) Exception for certain FSLIC assisted institutions

No depository institution shall have any liability to the

Corporation under this subsection as the result of the default

of, or assistance provided with respect to, an insured depository

institution which is an affiliate of such depository institution

if -

(A) such affiliate was receiving cash payments from the

Federal Savings and Loan Insurance Corporation under an

assistance agreement or note entered into before August 9,

1989;

(B) the Federal Savings and Loan Insurance Corporation, or

such other entity which has succeeded to the payment

obligations of such Corporation with respect to such assistance

agreement or note, is unable to continue such payments; and

(C) such affiliate -

(i) is in default or in need of assistance solely as a

result of the failure to meet the payment obligations

referred to in subparagraph (B); and

(ii) is not otherwise in breach of the terms of any

assistance agreement or note which would authorize the

Federal Savings and Loan Insurance Corporation or such other

successor entity, pursuant to the terms of such assistance

agreement or note, to refuse to make such payments.

(9) Commonly controlled defined

For purposes of this subsection, depository institutions are

commonly controlled if -

(A) such institutions are controlled by the same depository

institution holding company (including any company required to

file reports pursuant to section 1843(f)(6) of this title); or

(B) 1 depository institution is controlled by another

depository institution.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(5), 64 Stat. 876; Pub. L. 95-369,

Sec. 6(c)(7), Sept. 17, 1978, 92 Stat. 616; Pub. L. 97-320, title

VII, Sec. 703(c), Oct. 15, 1982, 96 Stat. 1539; Pub. L. 101-73,

title II, Sec. 201(a), 206(a), Aug. 9, 1989, 103 Stat. 187, 195;

Pub. L. 102-242, title I, Sec. 115(a), title III, Sec. 302(e)(1),

(2), title V, Sec. 501(a), Dec. 19, 1991, 105 Stat. 2249, 2349,

2388; Pub. L. 102-550, title XVI, Sec. 1605(a)(5)(B), 1607(a), Oct.

28, 1992, 106 Stat. 4085, 4089; Pub. L. 102-558, title III, Sec.

303(b)(6)(B), 305, Oct. 28, 1992, 106 Stat. 4225, 4226; Pub. L.

103-204, Sec. 9, Dec. 17, 1993, 107 Stat. 2388; Pub. L. 103-325,

title III, Sec. 319(b), title VI, Sec. 602(a)(2), (3), Sept. 23,

1994, 108 Stat. 2225, 2288; Pub. L. 104-208, div. A, title II,

Sec. 2201(a), 2702(i), 2704(d)(14)(B)-(E), Sept. 30, 1996, 110

Stat. 3009-403, 3009-483, 3009-491.)

-REFTEXT-

REFERENCES IN TEXT

Section 2702(a) of the Deposit Insurance Funds Act of 1996,

referred to in subsec. (d)(3)(K), is section 2702(a) of Pub. L.

104-208, which is set out as a note under section 1817 of this

title.

-MISC2-

PRIOR PROVISIONS

Section is derived from subsec. (f)(2) of former section 264 of

this title. See Codification note set out under section 1811 of

this title.

AMENDMENTS

1996 - Subsec. (b)(5). Pub. L. 104-208, Sec. 2704(d)(14)(B),

which directed substitution of ''Deposit Insurance Fund,'' for

''the Bank Insurance Fund or the Savings Association Insurance

Fund;'', was not executed. See Effective Date of 1996 Amendment

note below.

Subsec. (d). Pub. L. 104-208, Sec. 2704(d)(14)(C) and (D), which

directed the amendment of subsec. (d) by striking out par. (1)

designation and heading, redesignating subpar. (A) of par. (1) as

par. (1), realigning margin, and substituting ''the reserve ratio

of the Deposit Insurance Fund'' for ''reserve ratios in the Bank

Insurance Fund and the Savings Association Insurance Fund'',

striking out subpar. (B) of par. (1) and pars. (2) and (3) and

adding new par. (2), and redesignating subpar. (C) of par. (1) as

par. (3) and realigning margin, was not executed. See Effective

Date of 1996 Amendment note below.

Subsec. (d)(3)(A). Pub. L. 104-208, Sec. 2201(a)(1), substituted

''if the transaction is approved by'' for ''with the prior written

approval of''.

Subsec. (d)(3)(C). Pub. L. 104-208, Sec. 2702(i)(1), substituted

''Except as provided in subparagraph (K), the adjusted attributable

deposit amount'' for ''The adjusted attributable deposit amount''

in introductory provisions.

Subsec. (d)(3)(E). Pub. L. 104-208, Sec. 2201(a)(2), added cl.

(iii), redesignated former cls. (ii) and (iii) as (i) and (ii),

respectively, and struck out former cls. (i) and (iv), which

directed review of any application under the procedures and factors

set forth in section 1828(c) of this title and disapproval of any

application unless depository institution met all applicable

capital requirements, respectively.

Subsec. (d)(3)(G) to (J). Pub. L. 104-208, Sec. 2201(a)(3), (4),

redesignated subpars. (H) to (J) as (G) to (I), respectively and

struck out former subpar. (G) which related to expedited approval

of acquisitions.

Subsec. (d)(3)(K). Pub. L. 104-208, Sec. 2702(i)(2), added

subpar. (K).

Subsec. (e)(5)(A). Pub. L. 104-208, Sec. 2704(d)(14)(E)(i), which

directed substitution of ''Deposit Insurance Fund'' for ''Bank

Insurance Fund or the Savings Association Insurance Fund'', was not

executed. See Effective Date of 1996 Amendment note below.

Subsec. (e)(6) to (9). Pub. L. 104-208, Sec. 2704(d)(14)(E)(ii),

(iii), which directed striking out par. (6) and redesignating pars.

(7) to (9) as (6) to (8), respectively, was not executed. See

Effective Date of 1996 Amendment note below.

1994 - Subsec. (b)(5). Pub. L. 103-325, Sec. 602(a)(2),

substituted comma for semicolon at end.

Subsec. (d)(3)(A). Pub. L. 103-325, Sec. 319(b)(1), redesignated

cl. (i) formerly entitled ''In general'' as subpar. (A), inserted

comma after ''Notwithstanding paragraph (2)(A)'', and struck out

heading and text of cl. (ii). Text read as follows: ''If, in

connection with any transaction referred to in clause (i), the

acquiring, assuming, or resulting depository institution is a Bank

Insurance Fund member which is a subsidiary of a bank holding

company, the prior written approval of the Board shall be required

for such transaction in addition to the approval of any agency

referred to in clause (i).''

Subsec. (d)(3)(E)(i). Pub. L. 103-325, Sec. 319(b)(2)(A), struck

out ''(and, in the event the acquiring, assuming, or resulting

depository institution is a Bank Insurance Fund member which is a

subsidiary of a bank holding company, the Board)'' after

''responsible agency''.

Subsec. (d)(3)(E)(ii). Pub. L. 103-325, Sec. 319(b)(2)(B), struck

out ''or Board'' after ''responsible agency''.

Subsec. (d)(3)(E)(iv). Pub. L. 103-325, Sec. 319(b)(2)(C), struck

out '', and the appropriate Federal banking agency for any

depository institution holding company,'' after ''responsible

agency'', ''each'' before ''such agency determines'', and '', and

any depository institution holding company which controls such

institution,'' after ''resulting depository institution''.

Subsec. (d)(3)(F). Pub. L. 103-325, Sec. 319(b)(3), substituted

''A Bank'' for ''The Board may not approve any transaction under

subparagraph (A) in which the acquiring, assuming, or resulting

depository institution is a Bank'' and ''may not be the acquiring,

assuming, or resulting depository institution in a transaction

under subparagraph (A) unless'' for ''unless the Board determines

that''.

Subsec. (d)(3)(K). Pub. L. 103-325, Sec. 319(b)(4), struck out

heading and text of subpar. (K). Text read as follows: ''For

purposes of this paragraph, the term 'Board' (other than when such

term appears in connection with a reference to the Board of

Directors) means the Board of Governors of the Federal Reserve

System.''

Subsec. (e)(4). Pub. L. 103-325, Sec. 602(a)(3), redesignated

cls. (i) and (ii) as subpars. (A) and (B), respectively, and

realigned margins.

1993 - Subsec. (d)(2)(A)(ii). Pub. L. 103-204, Sec. 9(a),

substituted ''before the later of the end'' for ''before the end''

and inserted before period at end ''or the date on which the

Savings Association Insurance Fund first meets or exceeds the

designated reserve ratio for such fund''.

Subsec. (d)(2)(B)(v). Pub. L. 103-204, Sec. 9(b), added cl. (v).

Subsec. (d)(2)(C)(ii), (iii), (3)(I)(i). Pub. L. 103-204, Sec.

9(c), substituted ''moratorium period established by'' for ''5-year

period referred to in''.

1992 - Subsec. (d)(3)(B). Pub. L. 102-558, Sec. 303(b)(6)(B),

amended directory language of Pub. L. 102-242, Sec. 302(e). See

1991 amendment note below. Pub. L. 102-550, Sec. 1605(a)(5)(B),

which contained an identical amendment, was repealed, effective

Oct. 28, 1992, by Pub. L. 102-558, Sec. 305, set out as a Repeal of

Duplicative Provisions note below.

Subsec. (d)(3)(K). Pub. L. 102-550, Sec. 1607(a), added subpar.

(K).

1991 - Pub. L. 102-242, Sec. 115(a), amended section catchline.

Subsec. (a). Pub. L. 102-242, Sec. 115(a), added subsec. (a)

consisting of pars. (1) to (6) and struck out former subsec. (a)

relating to application for insurance, which consisted of pars. (1)

to (7).

Subsec. (d)(3). Pub. L. 102-242, Sec. 501(a), amended par. (3)

generally, substituting present provisions consisting of subpars.

(A) to (J) for provisions related to optional conversion through

merger, which consisted of subpars. (A) to (G).

Subsec. (d)(3)(B)(i). Pub. L. 102-242, Sec. 302(e)(1), as amended

by Pub. L. 102-558, Sec. 303(b)(6)(B), substituted ''deposits'' for

''average assessment base'' and ''shall be treated as deposits

which are insured by the Savings Association Insurance Fund.'' for

''shall -

''(I) be subject to assessment at the assessment rate

applicable under section 1817 of this title for Savings

Association Insurance Fund members;

''(II) not be taken into account for purposes of any assessment

under section 1817 of this title for Bank Insurance Fund members;

and

''(III) be treated as deposits which are insured by the Savings

Association Insurance Fund.''

Subsec. (d)(3)(B)(ii). Pub. L. 102-242, Sec. 302(e)(2), as added

by Pub. L. 102-558, Sec. 303(b)(6)(B), substituted ''deposits'' for

''average assessment base'' and ''shall be treated as deposits

which are insured by the Bank Insurance Fund.'' for ''shall -

''(I) be subject to assessment at the assessment rate

applicable under section 1817 of this title for Bank Insurance

Fund members;

''(II) not be taken into account for purposes of any assessment

under section 1817 of this title for Savings Association

Insurance Fund members; and

''(III) be treated as deposits which are insured by the Bank

Insurance Fund.''

1989 - Pub. L. 101-73, Sec. 201(a), substituted references to

insured depository institutions for references to insured banks

wherever appearing.

Subsec. (a). Pub. L. 101-73, Sec. 206(a)(1)-(4), inserted

heading, designated existing provisions as par. (1), inserted par.

(1) heading, and substituted ''Any'' for ''Subject to the

provisions of this chapter, any'', inserted ''and State savings

association'' after ''any State nonmember bank'' and after ''such

State nonmember bank'', ''or savings association'' after ''such

bank'', and ''or savings association, and in the case of an

application by a State savings association, the Corporation shall

notify the Director of the Office of Thrift Supervision of the

Corporation's approval of such application'' after ''books of the

bank'', and added pars. (2) to (7).

Subsec. (b)(4). Pub. L. 101-73, Sec. 206(a)(5), inserted ''and

fitness'' after ''character''.

Subsec. (b)(5) to (8). Pub. L. 101-73, Sec. 206(a)(6), added par.

(5) and redesignated former pars. (5) to (7) as (6) to (8),

respectively.

Subsecs. (d), (e). Pub. L. 101-73, Sec. 206(a)(7), added subsecs.

(d) and (e).

1982 - Subsec. (a). Pub. L. 97-320 inserted provision relating to

the determination before the application of an industrial bank or

similar institution is approved that it is chartered and operating

under provisions substantially comparable to those applicable to

banks operating in the same State.

1978 - Pub. L. 95-369 designated existing provision as subsec.

(a) and added subsecs. (b) and (c).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 2704(d)(14)(B)-(E) 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 1992 AMENDMENTS

Amendment by section 303(b)(6)(B) of Pub. L. 102-558 deemed to

have become effective Mar. 1, 1992, see section 304 of Pub. L.

102-558, set out as a note under section 2062 of Title 50,

Appendix, War and National Defense.

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, except that where amendment is to

any provision of law added or amended by Pub. L. 102-242 effective

after Dec. 19, 1992, then amendment by Pub. L. 102-550 effective on

effective date of amendment by Pub. L. 102-242, see section 1609 of

Pub. L. 102-550, set out as a note under section 191 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by section 302(e)(1), (2) of Pub. L. 102-242 effective

on earlier of 180 days after date on which final regulations

promulgated in accordance with section 302(c) of Pub. L. 102-242,

set out as a note under section 1817 of this title, become

effective or Jan. 1, 1994, see section 302(g) of Pub. L. 102-242,

set out as a note under section 1817 of this title.

Section 501(b) of Pub. L. 102-242 provided that: ''The amendment

made by subsection (a) to section 5(d)(3)(C) of the Federal Deposit

Insurance Act (12 U.S.C. 1815(d)(3)(C)) shall apply with respect to

semiannual periods beginning after the date of the enactment of

this Act (Dec. 19, 1991).''

REPEAL OF DUPLICATIVE PROVISIONS

Section 305 of Pub. L. 102-558 provided that: ''In the event of

the enactment of H.R. 5334 (An Act to amend and extend certain laws

relating to housing and community development, and for other

purposes) (enacted as Pub. L. 102-550), the following provisions of

that Act, and the amendments made by such provisions, are repealed,

effective on the date of enactment of this Act (Oct. 28, 1992):

''(1) Section 1603(a)(3) of such Act (amending section 1817 of

this title and enacting provisions set out as a note under

section 1817 of this title).

''(2) Section 1604(a)(11) of such Act (amending section 3104 of

this title).

''(3) Paragraphs (1), (2), and (3) of section 1604(b) of such

Act (amending sections 1817, 1834, and 1834a of this title).

''(3) (sic) Paragraphs (2) through (7) of section 1605(a) of

such Act (amending sections 1815, 1817, 1818, 1820, 1834, and

1834a of this title and enacting provisions set out as notes

under sections 1817, 1834, and 1834a of this title).''

NEWLY INSURED THRIFT PROVISION

Section 206(b) of Pub. L. 101-73 provided that: ''Any insured

depository institution (as defined in section 3(c)(2) of the

Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)), as added by

section 204(c) of this Act) -

''(1) which was an insured institution (as defined in section

401(a) of the National Housing Act (12 U.S.C. 1724(a)), as in

effect before the date of the enactment of this Act (Aug. 9,

1989)) on the day before the date of the enactment of this Act;

''(2) the board of directors of which determined, before April

1, 1987, to terminate such association's status as an insured

institution (as so defined) as evidenced in sworn minutes of the

board of directors meeting held before such date;

''(3) had insured deposits of less than $11,000,000 on April 1,

1987; and

''(4) was an insured institution (as so defined) for less than

1 year as of April 1, 1987,

may cease to be a Savings Association Insurance Fund member and

become a Bank Insurance Fund member at any time during the 2-year

period beginning on the date of the enactment of this Act without

the approval of the Federal Deposit Insurance Corporation under

section 5(d)(2) of the Federal Deposit Insurance Act (12 U.S.C.

1815(d)(2)) (as added by subsection (a) of this section) and

without incurring any liability for any exit or entrance fee

imposed under such section 5(d)(2).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 215c, 461, 1441, 1464,

1467a, 1814, 1816, 1821, 3104 of this title; title 26 section 593.

-CITE-

12 USC Sec. 1816 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1816. Factors to be considered

-STATUTE-

The factors that are required, under section 1814 of this title,

to be considered in connection with, and enumerated in, any

certificate issued pursuant to section 1814 of this title and that

are required, under section 1815 of this title, to be considered by

the Board of Directors in connection with any determination by such

Board pursuant to section 1815 of this title are the following:

(1) The financial history and condition of the depository

institution.

(2) The adequacy of the depository institution's capital

structure.

(3) The future earnings prospects of the depository

institution.

(4) The general character and fitness of the management of the

depository institution.

(5) The risk presented by such depository institution to the

Bank Insurance Fund or the Savings Association Insurance Fund.

(6) The convenience and needs of the community to be served by

such depository institution.

(7) Whether the depository institution's corporate powers are

consistent with the purposes of this chapter.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(6), 64 Stat. 876; Pub. L. 101-73,

title II, Sec. 207, Aug. 9, 1989, 103 Stat. 206; Pub. L. 104-208,

div. A, title II, Sec. 2704(d)(14)(F), Sept. 30, 1996, 110 Stat.

3009-491.)

-MISC1-

PRIOR PROVISIONS

Section is derived from subsec. (g) of former section 264 of this

title. See Codification note set out under section 1811 of this

title.

AMENDMENTS

1996 - Par. (5). Pub. L. 104-208, which directed substitution of

''Deposit Insurance Fund'' for ''Bank Insurance Fund or the Savings

Association Insurance Fund'', was not executed. See Effective Date

of 1996 Amendment note below.

1989 - Pub. L. 101-73 amended section generally. Prior to

amendment, section read as follows: ''The factors to be enumerated

in the certificate required under section 1814 of this title and to

be considered by the Board of Directors under section 1815 of this

title shall be the following: The financial history and condition

of the bank, the adequacy of its capital structure, its future

earnings prospects, the general character of its management, the

convenience and needs of the community to be served by the bank,

and whether or not its corporate powers are consistent with the

purposes of this chapter.''

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1815, 1828 of this title.

-CITE-

12 USC Sec. 1817 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1817. Assessments

-STATUTE-

(a) Reports of condition; access to reports

(1) Each insured State nonmember bank (except a District bank)

and each foreign bank having an insured branch which is not a

Federal branch shall make to the Corporation reports of condition

which shall be in such form and shall contain such information as

the Board of Directors may require. Such reports shall be made to

the Corporation on the dates selected as provided in paragraph (3)

of this subsection and the deposit liabilities shall be reported

therein in accordance with and pursuant to paragraphs (4) and (5)

of this subsection. The Board of Directors may call for additional

reports of condition on dates to be fixed by it and may call for

such other reports as the Board may from time to time require. Any

such bank which (A) maintains procedures reasonably adapted to

avoid any inadvertent error and, unintentionally and as a result of

such an error, fails to make or publish any report required under

this paragraph, within the period of time specified by the

Corporation, or submits or publishes any false or misleading report

or information, or (B) inadvertently transmits or publishes any

report which is minimally late, shall be subject to a penalty of

not more than $2,000 for each day during which such failure

continues or such false or misleading information is not

corrected. Such bank shall have the burden of proving that an

error was inadvertent and that a report was inadvertently

transmitted or published late. Any such bank which fails to make

or publish any report required under this paragraph, within the

period of time specified by the Corporation, or submits or

publishes any false or misleading report or information, in a

manner not described in the 2nd preceding sentence shall be subject

to a penalty of not more than $20,000 for each day during which

such failure continues or such false or misleading information is

not corrected. Notwithstanding the preceding sentence, if any such

bank knowingly or with reckless disregard for the accuracy of any

information or report described in such sentence submits or

publishes any false or misleading report or information, the

Corporation may assess a penalty of not more than $1,000,000 or 1

percent of total assets of such bank, whichever is less, per day

for each day during which such failure continues or such false or

misleading information is not corrected. Any penalty imposed under

any of the 4 preceding sentences shall be assessed and collected by

the Corporation in the manner provided in subparagraphs (E), (F),

(G), and (I) of section 1818(i)(2) of this title (for penalties

imposed under such section) and any such assessment (including the

determination of the amount of the penalty) shall be subject to the

provisions of such section. Any such bank against which any

penalty is assessed under this subsection shall be afforded an

agency hearing if such bank submits a request for such hearing

within 20 days after the issuance of the notice of assessment.

Section 1818(h) of this title shall apply to any proceeding under

this paragraph.

(2)(A) The Corporation and, with respect to any State depository

institution, any appropriate State bank supervisor for such

institution, shall have access to reports of examination made by,

and reports of condition made to, the Comptroller of the Currency,

the Director of the Office of Thrift Supervision, the Federal

Housing Finance Board, any Federal home loan bank, or any Federal

Reserve bank and to all revisions of reports of condition made to

any of them, and they shall promptly advise the Corporation of any

revisions or changes in respect to deposit liabilities made or

required to be made in any report of condition. The Corporation

may accept any report made by or to any commission, board, or

authority having supervision of a depository institution, and may

furnish to the Comptroller of the Currency, the (FOOTNOTE 1)

Director of the Office of Thrift Supervision, the (FOOTNOTE 1)

Federal Housing Finance Board, any (FOOTNOTE 1) Federal home loan

bank, to any Federal Reserve bank, and to any such commission,

board, or authority, reports of examinations made on behalf of, and

reports of condition made to, the Corporation.

(FOOTNOTE 1) So in original. Probably should be preceded by

''to''.

(B) Additional reports. - The Board of Directors may from time to

time require any insured depository institution to file such

additional reports as the Corporation, after agreement with the

Comptroller of the Currency, the Board of Governors of the Federal

Reserve System, and the Director of the Office of Thrift

Supervision, as appropriate, may deem advisable for insurance

purposes.

(3) Each insured depository institution shall make to the

appropriate Federal banking agency 4 reports of condition annually

upon dates which shall be selected by the Chairman of the Board of

Directors, the Comptroller of the Currency, and the Chairman of the

Board of Governors of the Federal Reserve System, and the Director

of the Office of Thrift Supervision. The dates selected shall be

the same for all insured depository institutions, except that when

any of said reporting dates is a nonbusiness day for any depository

institution, the preceding business day shall be its reporting

date. Two dates shall be selected within the semiannual period of

January to June inclusive, and the reports on such dates shall be

the basis for the certified statement to be filed in July pursuant

to subsection (c) of this section, and two dates shall be selected

within the semiannual period of July to December inclusive, and the

reports on such dates shall be the basis for the certified

statement to be filed in January pursuant to subsection (c) of this

section. The deposit liabilities shall be reported in said reports

of conditions in accordance with and pursuant to paragraphs (4) and

(5) of this subsection, and such other information shall be

reported therein as may be required by the respective agencies.

Each said report of condition shall contain a declaration by the

president, a vice president, the cashier or the treasurer, or by

any other officer designated by the board of directors or trustees

of the reporting depository institution to make such declaration,

that the report is true and correct to the best of his knowledge

and belief. The correctness of said report of condition shall be

attested by the signatures of at least two directors or trustees of

the reporting depository institution other than the officer making

such declaration, with a declaration that the report has been

examined by them and to the best of their knowledge and belief is

true and correct. At the time of making said reports of condition

each insured depository institution shall furnish to the

Corporation a copy thereof containing such signed declaration and

attestations. Nothing herein shall preclude any of the foregoing

agencies from requiring the banks or savings associations under its

jurisdiction to make additional reports of condition at any time.

(4) In the reports of condition required to be made by paragraph

(3) of this subsection, each insured depository institution shall

report the total amount of the liability of the depository

institution for deposits in the main office and in any branch

located in any State of the United States, the District of

Columbia, any Territory of the United States, Puerto Rico, Guam,

American Samoa, the Trust Territory of the Pacific Islands, or the

Virgin Islands, according to the definition of the term ''deposit''

in and pursuant to subsection (l) of section 1813 of this title

without any deduction for indebtedness of depositors or creditors

or any deduction for cash items in the process of collection drawn

on others than the reporting depository institution: Provided, That

the depository institution in reporting such deposits may (i)

subtract from the deposit balance due to any depository institution

the deposit balance due from the same depository institution (other

than trust funds deposited by either depository institution) and

any cash items in the process of collection due from or due to such

depository institutions shall be included in determining such net

balance, except that balances of time deposits of any depository

institution and any balances standing to the credit of private

depository institutions, of depository institutions in foreign

countries, of foreign branches of other American depository

institutions, and of American branches of foreign banks shall be

reported gross without any such subtraction, and (ii) exclude any

deposits received in any office of the depository institution for

deposit in any other office of the depository institution: And

provided further, That outstanding drafts (including advices and

authorizations to charge depository institution's balance in

another depository institution) drawn in the regular course of

business by the reporting depository institution on depository

institutions need not be reported as deposit liabilities. The

amount of trust funds held in the depository institution's own

trust department, which the reporting depository institution keeps

segregated and apart from its general assets and does not use in

the conduct of its business, shall not be included in the total

deposits in such reports, but shall be separately stated in such

reports. Deposits which are accumulated for the payment of

personal loans and are assigned or pledged to assure payment of

loans at maturity shall not be included in the total deposits in

such reports, but shall be deducted from the loans for which such

deposits are assigned or pledged to assure repayment.

(5) The deposits to be reported on such reports of condition

shall be segregated between (i) time and savings deposits and (ii)

demand deposits. For this purpose, the time and savings deposits

shall consist of time certificates of deposit, time deposits-open

account, and savings deposits; and demand deposits shall consist of

all deposits other than time and savings deposits.

(6) Lifeline account deposits. - In the reports of condition

required to be reported under this subsection, the deposits in

lifeline accounts (as defined in section 1834(a)(3)(C) of this

title) shall be reported separately.

(7) The Board of Directors, after consultation with the

Comptroller of the Currency, the Director of the Office of Thrift

Supervision, and the Board of Governors of the Federal Reserve

System, may by regulation define the terms ''cash items'' and

''process of collection'', and shall classify deposits as ''time'',

''savings'', and ''demand'' deposits, for the purposes of this

section.

(8) In respect of any report required or authorized to be

supplied or published pursuant to this subsection or any other

provision of law, the Board of Directors or the Comptroller of the

Currency, as the case may be, may differentiate between domestic

banks and foreign banks to such extent as, in their judgment, may

be reasonably required to avoid hardship and can be done without

substantial compromise of insurance risk or supervisory and

regulatory effectiveness.

(9) Data collections. - In addition to or in connection with any

other report required under this subsection, the Corporation shall

take such action as may be necessary to ensure that -

(A) each insured depository institution maintains; and

(B) the Corporation receives on a regular basis from such

institution,

information on the total amount of all insured deposits, preferred

deposits, and uninsured deposits at the institution. In

prescribing reporting and other requirements for the collection of

actual and accurate information pursuant to this paragraph, the

Corporation shall minimize the regulatory burden imposed upon

insured depository institutions that are well capitalized (as

defined in section 1831o of this title) while taking into account

the benefit of the information to the Corporation, including the

use of the information to enable the Corporation to more accurately

determine the total amount of insured deposits in each insured

depository institution for purposes of compliance with this

chapter.

(10) A Federal banking agency may not, by regulation or

otherwise, designate, or require an insured institution or an

affiliate to designate, a corporation as highly leveraged or a

transaction with a corporation as a highly leveraged transaction

solely because such corporation is or has been a debtor or bankrupt

under title 11, if, after confirmation of a plan of reorganization,

such corporation would not otherwise be highly leveraged.

(b) Assessments

(1) Risk-based assessment system

(A) Risk-based assessment system required

The Board of Directors shall, by regulation, establish a

risk-based assessment system for insured depository

institutions.

(B) Private reinsurance authorized

In carrying out this paragraph, the Corporation may -

(i) obtain private reinsurance covering not more than 10

percent of any loss the Corporation incurs with respect to an

insured depository institution; and

(ii) base that institution's semiannual assessment (in

whole or in part) on the cost of the reinsurance.

(C) ''Risk-based assessment system'' defined

For purposes of this paragraph, the term ''risk-based

assessment system'' means a system for calculating a depository

institution's semiannual assessment based on -

(i) the probability that the deposit insurance fund will

incur a loss with respect to the institution, taking into

consideration the risks attributable to -

(I) different categories and concentrations of assets;

(II) different categories and concentrations of

liabilities, both insured and uninsured, contingent and

noncontingent; and

(III) any other factors the Corporation determines are

relevant to assessing such probability;

(ii) the likely amount of any such loss; and

(iii) the revenue needs of the deposit insurance fund.

(D) Separate assessment systems

The Board of Directors may establish separate risk-based

assessment systems for large and small members of each deposit

insurance fund.

(2) Setting assessments

(A) Achieving and maintaining designated reserve ratio

(i) In general

The Board of Directors shall set semiannual assessments for

insured depository institutions when necessary, and only to

the extent necessary -

(I) to maintain the reserve ratio of each deposit

insurance fund at the designated reserve ratio; or

(II) if the reserve ratio is less than the designated

reserve ratio, to increase the reserve ratio to the

designated reserve ratio as provided in paragraph (3).

(ii) Factors to be considered

In carrying out clause (i), the Board of Directors shall

consider the deposit insurance fund's -

(I) expected operating expenses,

(II) case resolution expenditures and income,

(III) the effect of assessments on members' earnings and

capital, and

(IV) any other factors that the Board of Directors may

deem appropriate.

(iii) Limitation on assessment

Except as provided in clause (v), the Board of Directors

shall not set semiannual assessments with respect to a

deposit insurance fund in excess of the amount needed -

(I) to maintain the reserve ratio of the fund at the

designated reserve ratio; or

(II) if the reserve ratio is less than the designated

reserve ratio, to increase the reserve ratio to the

designated reserve ratio.

(iv) Designated reserve ratio defined

The designated reserve ratio of each deposit insurance fund

for each year shall be -

(I) 1.25 percent of estimated insured deposits; or

(II) a higher percentage of estimated insured deposits

that the Board of Directors determines to be justified for

that year by circumstances raising a significant risk of

substantial future losses to the fund.

(v) Exception to limitation on assessments

The Board of Directors may set semiannual assessments in

excess of the amount permitted under clauses (i) and (iii)

with respect to insured depository institutions that exhibit

financial, operational, or compliance weaknesses ranging from

moderately severe to unsatisfactory, or are not well

capitalized, as that term is defined in section 1831o of this

title.

(B) Independent treatment of funds

The Board of Directors shall -

(i) set semiannual assessments for members of each deposit

insurance fund independently from semiannual assessments for

members of any other deposit insurance fund; and

(ii) set the designated reserve ratio of each deposit

insurance fund independently from the designated reserve

ratio of any other deposit insurance fund.

(C) Notice of assessments

The Corporation shall notify each insured depository

institution of that institution's semiannual assessment.

(D) Repealed. Pub. L. 104-208, div. A, title II, Sec. 2703(b),

Sept. 30, 1996, 110 Stat. 3009-485

(E) Minimum assessments

The Corporation shall design the risk-based assessment system

for any deposit insurance fund so that, if the Corporation has

borrowings outstanding under section 1824 of this title on

behalf of that fund or the reserve ratio of that fund remains

below the designated reserve ratio, the total amount raised by

semiannual assessments on members of that fund shall be not

less than the total amount that would have been raised if -

(i) this subsection as in effect on July 15, 1991 remained

in effect;

(ii) the assessment rate in effect on July 15, 1991

remained in effect; and

(iii) notwithstanding any other provision of this

subsection, during the period beginning on September 30,

1996, and ending on December 31, 1998, the assessment rate

for a Savings Association Insurance Fund member may not be

less than the assessment rate for a Bank Insurance Fund

member that poses a comparable risk to the deposit insurance

fund.

(F) Transition rule for Savings Association Insurance Fund

With respect to the Savings Association Insurance Fund,

during the period beginning on the effective date of the

amendments made by section 302(a) of the Federal Deposit

Insurance Corporation Improvement Act of 1991 and ending on

December 31, 1997 -

(i) subparagraph (A)(i)(II) shall apply as if such

subparagraph did not include ''as provided in paragraph

(3)''; and

(ii) subparagraph (E) shall be applied by substituting ''if

this subsection as in effect on July 15, 1991 remained in

effect.'' for ''if - '' and all that follows through clause

(ii).

(G) Special rule until the insurance funds achieve the

designated reserve ratio

Until a deposit insurance fund achieves the designated

reserve ratio, the Corporation may limit the maximum assessment

on insured depository institutions under the risk-based

assessment system authorized under paragraph (1) to not less

than 10 basis points above the average assessment on insured

depository institutions under that system.

(H) Bank Enterprise Act requirement

The Corporation shall design the risk-based assessment system

so that, insofar as the system bases assessments, directly or

indirectly, on deposits, the portion of the deposits of any

insured depository institution which are attributable to

lifeline accounts established in accordance with the Bank

Enterprise Act of 1991 shall be subject to assessment at a rate

determined in accordance with such Act.

(3) Special rule for recapitalizing undercapitalized funds

(A) In general

Except as provided in paragraph (2)(F), if the reserve ratio

of any deposit insurance fund is less than the designated

reserve ratio under paragraph (2)(A)(iv), the Board of

Directors shall set semiannual assessment rates for members of

that fund -

(i) that are sufficient to increase the reserve ratio for

that fund to the designated reserve ratio not later than 1

year after such rates are set; or

(ii) in accordance with a schedule promulgated by the

Corporation under subparagraph (B).

(B) Recapitalization schedules

For purposes of subparagraph (A)(ii), the Corporation shall

by regulation promulgate a schedule that specifies, at

semiannual intervals, target reserve ratios for that fund,

culminating in a reserve ratio that is equal to the designated

reserve ratio not later than 15 years after the date on which

the schedule is implemented.

(C) Amending schedule

The Corporation may, by regulation, amend a schedule

promulgated under subparagraph (B) and such amendment may

extend the date specified in subparagraph (B) to such later

date as the Corporation determines will, over time, maximize

the amount of semiannual assessments received by the Savings

Association Insurance Fund, net of insurance losses incurred by

the Fund.

(D) Application to SAIF members

This paragraph shall become applicable to Savings Association

Insurance Fund members on January 1, 1998.

(4) ''Semiannual period'' defined

For purposes of this section, the term ''semiannual period''

means a period beginning on January 1 of any calendar year and

ending on June 30 of the same year, or a period beginning on July

1 of any calendar year and ending on December 31 of the same

year.

(5) Records to be maintained

Each insured depository institution shall maintain all records

that the Corporation may require for verifying the correctness of

the institution's semiannual assessments. No insured depository

institution shall be required to retain those records for that

purpose for a period of more than 5 years from the date of the

filing of any certified statement, except that when there is a

dispute between the insured depository institution and the

Corporation over the amount of any assessment, the depository

institution shall retain the records until final determination of

the issue.

(6) Emergency special assessments

In addition to the other assessments imposed on insured

depository institutions under this subsection, the Corporation

may impose 1 or more special assessments on insured depository

institutions in an amount determined by the Corporation if the

amount of any such assessment -

(A) is necessary -

(i) to provide sufficient assessment income to repay

amounts borrowed from the Secretary of the Treasury under

section 1824(a) of this title in accordance with the

repayment schedule in effect under section 1824(c) of this

title during the period with respect to which such assessment

is imposed;

(ii) to provide sufficient assessment income to repay

obligations issued to and other amounts borrowed from Bank

Insurance Fund members under section 1824(d) of this title;

or

(iii) for any other purpose the Corporation may deem

necessary; and

(B) is allocated between Bank Insurance Fund members and

Savings Association Insurance Fund members in amounts which

reflect the degree to which the proceeds of the amounts

borrowed are to be used for the benefit of the respective

insurance funds.

(7) Community enterprise credits

The Corporation shall allow a credit against any semiannual

assessment to any insured depository institution which satisfies

the requirements of the Community Enterprise Assessment Credit

Board under section 233(a)(1) of the Bank Enterprise Act of 1991

(12 U.S.C. 1834a(a)(1)) in the amount determined by such Board by

regulation.

(c) Certified statements; payments

(1) Certified statements required

(A) In general

Each insured depository institution shall file with the

Corporation a certified statement containing such information

as the Corporation may require for determining the

institution's semiannual assessment.

(B) Form of certification

The certified statement required under subparagraph (A) shall

-

(i) be in such form and set forth such supporting

information as the Board of Directors shall prescribe; and

(ii) be certified by the president of the depository

institution or any other officer designated by its board of

directors or trustees that to the best of his or her

knowledge and belief, the statement is true, correct and

complete, and in accordance with this chapter and regulations

issued hereunder.

(2) Payments required

(A) In general

Each insured depository institution shall pay to the

Corporation the semiannual assessment imposed under subsection

(b) of this section.

(B) Form of payment

The payments required under subparagraph (A) shall be made in

such manner and at such time or times as the Board of Directors

shall prescribe by regulation.

(3) Newly insured institutions

To facilitate the administration of this section, the Board of

Directors may waive the requirements of paragraphs (1) and (2)

for the semiannual period in which a depository institution

becomes insured.

(4) Penalty for failure to make accurate certified statement

(A) First tier

Any insured depository institution which -

(i) maintains procedures reasonably adapted to avoid any

inadvertent error and, unintentionally and as a result of

such an error, fails to submit the certified statement under

paragraph (1) within the period of time required under

paragraph (1) or submits a false or misleading certified

statement; or

(ii) submits the statement at a time which is minimally

after the time required in such paragraph,

shall be subject to a penalty of not more than $2,000 for each

day during which such failure continues or such false and

misleading information is not corrected. The institution shall

have the burden of proving that an error was inadvertent or

that a statement was inadvertently submitted late.

(B) Second tier

Any insured depository institution which fails to submit the

certified statement under paragraph (1) within the period of

time required under paragraph (1) or submits a false or

misleading certified statement in a manner not described in

subparagraph (A) shall be subject to a penalty of not more than

$20,000 for each day during which such failure continues or

such false and misleading information is not corrected.

(C) Third tier

Notwithstanding subparagraphs (A) and (B), if any insured

depository institution knowingly or with reckless disregard for

the accuracy of any certified statement described in paragraph

(1) submits a false or misleading certified statement under

paragraph (1), the Corporation may assess a penalty of not more

than $1,000,000 or not more than 1 percent of the total assets

of the institution, whichever is less, per day for each day

during which the failure continues or the false or misleading

information in such statement is not corrected.

(D) Assessment procedure

Any penalty imposed under this paragraph shall be assessed

and collected by the Corporation in the manner provided in

subparagraphs (E), (F), (G), and (I) of section 1818(i)(2) of

this title (for penalties imposed under such section) and any

such assessment (including the determination of the amount of

the penalty) shall be subject to the provisions of such

section.

(E) Hearing

Any insured depository institution against which any penalty

is assessed under this paragraph shall be afforded an agency

hearing if the institution submits a request for such hearing

within 20 days after the issuance of the notice of the

assessment. Section 1818(h) of this title shall apply to any

proceeding under this subparagraph.

(d) Corporation exempt from apportionment

Notwithstanding any other provision of law, amounts received

pursuant to any assessment under this section and any other amounts

received by the Corporation shall not be subject to apportionment

for the purposes of chapter 15 of title 31 or under any other

authority.

(e) Refunds

(1) Overpayments

In the case of any payment of an assessment by an insured

depository institution in excess of the amount due to the

Corporation, the Corporation may -

(A) refund the amount of the excess payment to the insured

depository institution; or

(B) credit such excess amount toward the payment of

subsequent semiannual assessments until such credit is

exhausted.

(2) Balance in insurance fund in excess of designated reserve

(A) In general

Subject to subparagraphs (B) and (C), if, as of the end of

any semiannual assessment period beginning after September 30,

1996, the amount of the actual reserves in -

(i) the Bank Insurance Fund (until the merger of such fund

into the Deposit Insurance Fund pursuant to section 2704 of

the Deposit Insurance Funds Act of 1996); or

(ii) the Deposit Insurance Fund (after the establishment of

such fund),

exceeds the balance required to meet the designated reserve

ratio applicable with respect to such fund, such excess amount

shall be refunded to insured depository institutions by the

Corporation on such basis as the Board of Directors determines

to be appropriate, taking into account the factors considered

under the risk-based assessment system.

(B) Refund not to exceed previous semiannual assessment

The amount of any refund under this paragraph to any member

of a deposit insurance fund for any semiannual assessment

period may not exceed the total amount of assessments paid by

such member to the insurance fund with respect to such period.

(C) Refund limitation for certain institutions

No refund may be made under this paragraph with respect to

the amount of any assessment paid for any semiannual assessment

period by any insured depository institution described in

clause (v) of subsection (b)(2)(A) of this section.

(f) Action against depository institutions failing to file

certified statements

Any insured depository institution which fails to make any report

of condition under subsection (a) of this section or to file any

certified statement required to be filed by it in connection with

determining the amount of any assessment payable by the depository

institution to the Corporation may be compelled to make such report

or file such statement by mandatory injunction or other appropriate

remedy in a suit brought for such purpose by the Corporation

against the depository institution and any officer or officers

thereof in any court of the United States of competent jurisdiction

in the District or Territory in which such depository institution

is located.

(g) Action by Corporation to recover assessments

The Corporation, in a suit brought at law or in equity in any

court of competent jurisdiction, shall be entitled to recover from

any insured depository institution the amount of any unpaid

assessment lawfully payable by such insured depository institution

to the Corporation, whether or not such depository institution

shall have made any such report of condition under subsection (a)

of this section or filed any such certified statement and whether

or not suit shall have been brought to compel the depository

institution to make any such report or file any such statement. No

action or proceeding shall be brought for the recovery of any

assessment due to the Corporation, or for the recovery of any

amount paid to the Corporation in excess of the amount due to it,

unless such action or proceeding shall have been brought within

five years after the right accrued for which the claim is made,

except where the insured depository institution has made or filed

with the Corporation a false or fraudulent certified statement with

the intent to evade, in whole or in part, the payment of

assessment, in which case the claim shall not be deemed to have

accrued until the discovery by the Corporation that the certified

statement is false or fraudulent: Provided, however, That where a

cause of action has already accrued, and the period herein

prescribed within which an action may be brought has expired, or

will expire within one year from September 21, 1950, an action may

be brought on such cause of action within one year from September

21, 1950: And provided further, That no action or proceeding shall

be brought for the recovery of any assessment on deposits alleged

to have been omitted from the assessment base of any insured

depository institution for any year prior to 1945 except that any

claim of the Corporation for the payment of any assessment may be

offset by it against any claim of the depository institution for

the overpayment of any assessment.

(h) Forfeiture of rights for failure to comply with law

Should any national member bank or any insured national nonmember

bank fail to make any report of condition under subsection (a) of

this section or to file any certified statement required to be

filed by such bank under any provision of this section, or fail to

pay any assessment required to be paid by such bank under any

provision of this chapter, and should the bank not correct such

failure within thirty days after written notice has been given by

the Corporation to an officer of the bank, citing this subsection,

and stating that the bank has failed to make any report of

condition under subsection (a) of this section or to file or pay as

required by law, all the rights, privileges, and franchises of the

bank granted to it under the National Bank Act, as amended (12

U.S.C. 21 et seq.), the Federal Reserve Act, as amended (12 U.S.C.

221 et seq.), or this chapter, shall be thereby forfeited. Whether

or not the penalty provided in this subsection has been incurred

shall be determined and adjudged in the manner provided in the

sixth paragraph of section 2 of the Federal Reserve Act, as amended

(12 U.S.C. 501a). The remedies provided in this subsection and in

subsections (f) and (g) of this section shall not be construed as

limiting any other remedies against any insured depository

institution, but shall be in addition thereto.

(i) Insurance of trust funds

(1) In general

Trust funds held on deposit by an insured depository

institution in a fiduciary capacity as trustee pursuant to any

irrevocable trust established pursuant to any statute or written

trust agreement shall be insured in an amount not to exceed

$100,000 for each trust estate.

(2) Interbank deposits

Trust funds described in paragraph (1) which are deposited by

the fiduciary depository institution in another insured

depository institution shall be similarly insured to the

fiduciary depository institution according to the trust estates

represented.

(3) Bank deposit financial assistance program

Notwithstanding paragraph (1), funds deposited by an insured

depository institution pursuant to the Bank Deposit Financial

Assistance Program of the Department of Energy shall be

separately insured in an amount not to exceed $100,000 for each

insured depository institution depositing such funds.

(4) Regulations

The Board of Directors may prescribe such regulations as may be

necessary to clarify the insurance coverage under this subsection

and to prescribe the manner of reporting and depositing such

trust funds.

(j) Change in control of insured depository institutions

(1) No person, acting directly or indirectly or through or in

concert with one or more other persons, shall acquire control of

any insured depository institution through a purchase, assignment,

transfer, pledge, or other disposition of voting stock of such

insured depository institution unless the appropriate Federal

banking agency has been given sixty days' prior written notice of

such proposed acquisition and within that time period the agency

has not issued a notice disapproving the proposed acquisition or,

in the discretion of the agency, extending for an additional 30

days the period during which such a disapproval may issue. The

period for disapproval under the preceding sentence may be extended

not to exceed 2 additional times for not more than 45 days each

time if -

(A) the agency determines that any acquiring party has not

furnished all the information required under paragraph (6);

(B) in the agency's judgment, any material information

submitted is substantially inaccurate;

(C) the agency has been unable to complete the investigation of

an acquiring party under paragraph (2)(B) because of any delay

caused by, or the inadequate cooperation of, such acquiring

party; or

(D) the agency determines that additional time is needed to

investigate and determine that no acquiring party has a record of

failing to comply with the requirements of subchapter II of

chapter 53 of title 31.

An acquisition may be made prior to expiration of the disapproval

period if the agency issues written notice of its intent not to

disapprove the action.

(2)(A) Notice to State Agency. - Upon receiving any notice under

this subsection, the appropriate Federal banking agency shall

forward a copy thereof to the appropriate State depository

institution supervisory agency if the depository institution the

voting shares of which are sought to be acquired is a State

depository institution, and shall allow thirty days within which

the views and recommendations of such State depository institution

supervisory agency may be submitted. The appropriate Federal

banking agency shall give due consideration to the views and

recommendations of such State agency in determining whether to

disapprove any proposed acquisition. Notwithstanding the

provisions of this paragraph, if the appropriate Federal banking

agency determines that it must act immediately upon any notice of a

proposed acquisition in order to prevent the probable default of

the depository institution involved in the proposed acquisition,

such Federal banking agency may dispense with the requirements of

this paragraph or, if a copy of the notice is forwarded to the

State depository institution supervisory agency, such Federal

banking agency may request that the views and recommendations of

such State depository institution supervisory agency be submitted

immediately in any form or by any means acceptable to such Federal

banking agency.

(B) Investigation of Principals Required. - Upon receiving any

notice under this subsection, the appropriate Federal banking

agency shall -

(i) conduct an investigation of the competence, experience,

integrity, and financial ability of each person named in a notice

of a proposed acquisition as a person by whom or for whom such

acquisition is to be made; and

(ii) make an independent determination of the accuracy and

completeness of any information described in paragraph (6) with

respect to such person.

(C) Report. - The appropriate Federal banking agency shall

prepare a written report of any investigation under subparagraph

(B) which shall contain, at a minimum, a summary of the results of

such investigation. The agency shall retain such written report as

a record of the agency.

(D) Public Comment. - Upon receiving notice of a proposed

acquisition, the appropriate Federal banking agency shall, unless

such agency determines that an emergency exists, within a

reasonable period of time -

(i) publish the name of the insured depository institution

proposed to be acquired and the name of each person identified in

such notice as a person by whom or for whom such acquisition is

to be made; and

(ii) solicit public comment on such proposed acquisition,

particularly from persons in the geographic area where the bank

(FOOTNOTE 2) proposed to be acquired is located, before final

consideration of such notice by the agency,

(FOOTNOTE 2) So in original. Probably should be ''depository

institution''.

unless the agency determines in writing that such disclosure or

solicitation would seriously threaten the safety or soundness of

such bank. (FOOTNOTE 2)

(3) Within three days after its decision to disapprove any

proposed acquisition, the appropriate Federal banking agency shall

notify the acquiring party in writing of the disapproval. Such

notice shall provide a statement of the basis for the disapproval.

(4) Within ten days of receipt of such notice of disapproval, the

acquiring party may request an agency hearing on the proposed

acquisition. In such hearing all issues shall be determined on the

record pursuant to section 554 of title 5. The length of the

hearing shall be determined by the appropriate Federal banking

agency. At the conclusion thereof, the appropriate Federal banking

agency shall by order approve or disapprove the proposed

acquisition on the basis of the record made at such hearing.

(5) Any person whose proposed acquisition is disapproved after

agency hearings under this subsection may obtain review by the

United States court of appeals for the circuit in which the home

office of the bank (FOOTNOTE 2) to be acquired 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 ten days

from the date of such order, and simultaneously sending a copy of

such notice by registered or certified mail to the appropriate

Federal banking agency. The appropriate Federal banking agency

shall promptly certify and file in such court the record upon which

the disapproval was based. The findings of the appropriate Federal

banking agency shall be set aside if found to be arbitrary or

capricious or if found to violate procedures established by this

subsection.

(6) Except as otherwise provided by regulation of the appropriate

Federal banking agency, a notice filed pursuant to this subsection

shall contain the following information:

(A) The identity, personal history, business background and

experience of each person by whom or on whose behalf the

acquisition is to be made, including his material business

activities and affiliations during the past five years, and a

description of any material pending legal or administrative

proceedings in which he is a party and any criminal indictment or

conviction of such person by a State or Federal court.

(B) A statement of the assets and liabilities of each person by

whom or on whose behalf the acquisition is to be made, as of the

end of the fiscal year for each of the five fiscal years

immediately preceding the date of the notice, together with

related statements of income and source and application of funds

for each of the fiscal years then concluded, all prepared in

accordance with generally accepted accounting principles

consistently applied, and an interim statement of the assets and

liabilities for each such person, together with related

statements of income and source and application of funds, as of a

date not more than ninety days prior to the date of the filing of

the notice.

(C) The terms and conditions of the proposed acquisition and

the manner in which the acquisition is to be made.

(D) The identity, source and amount of the funds or other

consideration used or to be used in making the acquisition, and

if any part of these funds or other consideration has been or is

to be borrowed or otherwise obtained for the purpose of making

the acquisition, a description of the transaction, the names of

the parties, and any arrangements, agreements, or understandings

with such persons.

(E) Any plans or proposals which any acquiring party making the

acquisition may have to liquidate the bank, (FOOTNOTE 3) to sell

its assets or merge it with any company or to make any other

major change in its business or corporate structure or

management.

(FOOTNOTE 3) So in original. Probably should be ''depository

institution''.

(F) The identification of any person employed, retained, or to

be compensated by the acquiring party, or by any person on his

behalf, to make solicitations or recommendations to stockholders

for the purpose of assisting in the acquisition, and a brief

description of the terms of such employment, retainer, or

arrangement for compensation.

(G) Copies of all invitations or tenders or advertisements

making a tender offer to stockholders for purchase of their stock

to be used in connection with the proposed acquisition.

(H) Any additional relevant information in such form as the

appropriate Federal banking agency may require by regulation or

by specific request in connection with any particular notice.

(7) The appropriate Federal banking agency may disapprove any

proposed acquisition if -

(A) the proposed acquisition of control would result in a

monopoly or 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;

(B) the effect of the proposed acquisition of control in any

section of the country may be substantially to lessen competition

or to tend to create a monopoly or the proposed acquisition of

control would in any other manner be in restraint of trade, and

the anticompetitive effects of the proposed acquisition of

control are not 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;

(C) the financial condition of any acquiring person is such as

might jeopardize the financial stability of the bank (FOOTNOTE 3)

or prejudice the interests of the depositors of the bank;

(FOOTNOTE 3)

(D) the competence, experience, or integrity of any acquiring

person or of any of the proposed management personnel indicates

that it would not be in the interest of the depositors of the

bank, or in the interest of the public to permit such person to

control the bank; (FOOTNOTE 3)

(E) any acquiring person neglects, fails, or refuses to furnish

the appropriate Federal banking agency all the information

required by the appropriate Federal banking agency; or

(F) the appropriate Federal banking agency determines that the

proposed transaction would result in an adverse effect on the

Bank Insurance Fund or the Savings Association Insurance Fund.

(8) For the purposes of this subsection, the term -

(A) ''person'' means an individual or a corporation,

partnership, trust, association, joint venture, pool, syndicate,

sole proprietorship, unincorporated organization, or any other

form of entity not specifically listed herein; and

(B) ''control'' means the power, directly or indirectly, to

direct the management or policies of an insured depository

institution or to vote 25 per centum or more of any class of

voting securities of an insured depository institution.

(9) Reporting of stock loans. -

(A) Report required. - Any foreign bank, or any affiliate

thereof, that has credit outstanding to any person or group of

persons which is secured, directly or indirectly, by shares of an

insured depository institution shall file a consolidated report

with the appropriate Federal banking agency for such insured

depository institution if the extensions of credit by the foreign

bank or any affiliate thereof, in the aggregate, are secured,

directly or indirectly, by 25 percent or more of any class of

shares of the same insured depository institution.

(B) Definitions. - For purposes of this paragraph, the

following definitions shall apply:

(i) Foreign bank. - The terms ''foreign bank'' and

''affiliate'' have the same meanings as in section 3101 of this

title.

(ii) Credit outstanding. - The term ''credit outstanding''

includes -

(I) any loan or extension of credit,

(II) the issuance of a guarantee, acceptance, or letter of

credit, including an endorsement or standby letter of credit,

and

(III) any other type of transaction that extends credit or

financing to the person or group of persons.

(iii) Group of persons. - The term ''group of persons''

includes any number of persons that the foreign bank or any

affiliate thereof reasonably believes -

(I) are acting together, in concert, or with one another to

acquire or control shares of the same insured depository

institution, including an acquisition of shares of the same

insured depository institution at approximately the same time

under substantially the same terms; or

(II) have made, or propose to make, a joint filing under

section 78m of title 15 regarding ownership of the shares of

the same insured depository institution.

(C) Inclusion of shares held by the financial institution. -

Any shares of the insured depository institution held by the

foreign bank or any affiliate thereof as principal shall be

included in the calculation of the number of shares in which the

foreign bank or any affiliate thereof has a security interest for

purposes of subparagraph (A).

(D) Report requirements. -

(i) Timing of report. - The report required under this

paragraph shall be a consolidated report on behalf of the

foreign bank and all affiliates thereof, and shall be filed in

writing within 30 days of the date on which the foreign bank or

affiliate thereof first believes that the security for any

outstanding credit consists of 25 percent or more of any class

of shares of an insured depository institution.

(ii) Content of report. - The report under this paragraph

shall indicate the number and percentage of shares securing

each applicable extension of credit, the identity of the

borrower, and the number of shares held as principal by the

foreign bank and any affiliate thereof.

(iii) Copy to other agencies. - A copy of any report under

this paragraph shall be filed with the appropriate Federal

banking agency for the foreign bank or any affiliate thereof

(if other than the agency receiving the report under this

paragraph).

(iv) Other information. - Each appropriate Federal banking

agency may require any additional information necessary to

carry out the agency's supervisory responsibilities.

(E) Exceptions. -

(i) Exception where information provided by borrower. -

Notwithstanding subparagraph (A), a foreign bank or any

affiliate thereof shall not be required to report a transaction

under this paragraph if the person or group of persons referred

to in such subparagraph has disclosed the amount borrowed from

such foreign bank or any affiliate thereof and the security

interest of the foreign bank or any affiliate thereof to the

appropriate Federal banking agency for the insured depository

institution in connection with a notice filed under this

subsection, an application filed under the Bank Holding Company

Act of 1956 (12 U.S.C. 1841 et seq.), section 1467a of this

title, or any other application filed with the appropriate

Federal banking agency for the insured depository institution

as a substitute for a notice under this subsection, such as an

application for deposit insurance, membership in the Federal

Reserve System, or a national bank charter.

(ii) Exception for shares owned for more than 1 year. -

Notwithstanding subparagraph (A), a foreign bank and any

affiliate thereof shall not be required to report a transaction

involving -

(I) a person or group of persons that has been the owner or

owners of record of the stock for a period of 1 year or more;

or

(II) stock issued by a newly chartered bank before the

bank's opening.

(10) The reports required by paragraph (9) of this subsection

shall contain such of the information referred to in paragraph (6)

of this subsection, and such other relevant information, as the

appropriate Federal banking agency may require by regulation or by

specific request in connection with any particular report.

(11) The Federal banking agency receiving a notice or report

filed pursuant to paragraph (1) or (9) shall immediately furnish to

the other Federal banking agencies a copy of such notice or report.

(12) Whenever such a change in control occurs, each insured

depository institution shall report promptly to the appropriate

Federal banking agency any changes or replacement of its chief

executive officer or of any director occurring in the next

twelve-month period, including in its report a statement of the

past and current business and professional affiliations of the new

chief executive officer or directors.

(13) The appropriate Federal banking agencies are authorized to

issue rules and regulations to carry out this subsection.

(14) Within two years after the effective date of the Change in

Bank Control Act of 1978, and each year thereafter in each

appropriate Federal banking agency's annual report to the Congress,

the appropriate Federal banking agency shall report to the Congress

the results of the administration of this subsection, and make any

recommendations as to changes in the law which in the opinion of

the appropriate Federal banking agency would be desirable.

(15) Investigative and Enforcement Authority. -

(A) Investigations. - The appropriate Federal banking agency

may exercise any authority vested in such agency under section

1818(n) of this title in the course of conducting any

investigation under paragraph (2)(B) or any other investigation

which the agency, in its discretion, determines is necessary to

determine whether any person has filed inaccurate, incomplete, or

misleading information under this subsection or otherwise is

violating, has violated, or is about to violate any provision of

this subsection or any regulation prescribed under this

subsection.

(B) Enforcement. - Whenever it appears to the appropriate

Federal banking agency that any person is violating, has

violated, or is about to violate any provision of this subsection

or any regulation prescribed under this subsection, the agency

may, in its discretion, apply to the appropriate district court

of the United States or the United States court of any territory

for -

(i) a temporary or permanent injunction or restraining order

enjoining such person from violating this subsection or any

regulation prescribed under this subsection; or

(ii) such other equitable relief as may be necessary to

prevent any such violation (including divestiture).

(C) Jurisdiction. -

(i) The district courts of the United States and the United

States courts in any territory shall have the same jurisdiction

and power in connection with any exercise of any authority by

the appropriate Federal banking agency under subparagraph (A)

as such courts have under section 1818(n) of this title.

(ii) The district courts of the United States and the United

States courts of any territory shall have jurisdiction and

power to issue any injunction or restraining order or grant any

equitable relief described in subparagraph (B). When

appropriate, any injunction, order, or other equitable relief

granted under this paragraph shall be granted without requiring

the posting of any bond.

The resignation, termination of employment or participation,

divestiture of control, or separation of or by an

institution-affiliated party (including a separation caused by the

closing of a depository institution) shall not affect the

jurisdiction and authority of the appropriate Federal banking

agency to issue any notice and proceed under this subsection

against any such party, if such notice is served before the end of

the 6-year period beginning on the date such party ceased to be

such a party with respect to such depository institution (whether

such date occurs before, on, or after August 9, 1989).

(16) Civil money penalty. -

(A) First tier. - Any person who violates any provision of this

subsection, or any regulation or order issued by the appropriate

Federal banking agency under this subsection, shall forfeit and

pay a civil penalty of not more than $5,000 for each day during

which such violation continues.

(B) Second tier. - Notwithstanding subparagraph (A), any person

who -

(i)(I) commits any violation described in any clause of

subparagraph (A);

(II) recklessly engages in an unsafe or unsound practice in

conducting the affairs of a depository institution; or

(III) breaches any fiduciary duty;

(ii) which violation, practice, or breach -

(I) is part of a pattern of misconduct;

(II) causes or is likely to cause more than a minimal loss

to such institution; or

(III) results in pecuniary gain or other benefit to such

person,

shall forfeit and pay a civil penalty of not more than $25,000

for each day during which such violation, practice, or breach

continues.

(C) Third tier. - Notwithstanding subparagraphs (A) and (B),

any person who -

(i) knowingly -

(I) commits any violation described in any clause of

subparagraph (A);

(II) engages in any unsafe or unsound practice in

conducting the affairs of a depository institution; or

(III) breaches any fiduciary duty; and

(ii) knowingly or recklessly causes a substantial loss to

such institution or a substantial pecuniary gain or other

benefit to such person by reason of such violation, practice,

or breach,

shall forfeit and pay a civil penalty in an amount not to exceed

the applicable maximum amount determined under subparagraph (D)

for each day during which such violation, practice, or breach

continues.

(D) Maximum amounts of penalties for any violation described in

subparagraph (c). - The maximum daily amount of any civil penalty

which may be assessed pursuant to subparagraph (C) for any

violation, practice, or breach described in such subparagraph is

-

(i) in the case of any person other than a depository

institution, an amount to not exceed $1,000,000; and

(ii) in the case of a depository institution, an amount not

to exceed the lesser of -

(I) $1,000,000; or

(II) 1 percent of the total assets of such institution.

(E) Assessment; etc. - Any penalty imposed under subparagraph

(A), (B), or (C) shall be assessed and collected by the

appropriate Federal banking agency in the manner provided in

subparagraphs (E), (F), (G), and (I) of section 1818(i)(2) of

this title for penalties imposed (under such section) and any

such assessment shall be subject to the provisions of such

section.

(F) Hearing. - The depository institution or other person

against whom any penalty is assessed under this paragraph shall

be afforded an agency hearing if such institution or other person

submits a request for such hearing within 20 days after the

issuance of the notice of assessment. Section 1818(h) of this

title shall apply to any proceeding under this paragraph.

(G) Disbursement. - All penalties collected under authority of

this paragraph shall be deposited into the Treasury.

(17) Exceptions. - This subsection shall not apply with respect

to a transaction which is subject to -

(A) section 1842 of this title;

(B) section 1828(c) of this title; or

(C) section 1467a of this title.

(18) Applicability of change in control provisions to other

institutions. - For purposes of this subsection, the term ''insured

depository institution'' includes -

(A) any depository institution holding company; and

(B) any other company which controls an insured depository

institution and is not a depository institution holding company.

(k) Federal banking agency rules and regulations for reports and

public disclosure by banks of extension of credit to executive

officers or principal shareholders or the related interests of

such persons

The appropriate Federal banking agencies are authorized to issue

rules and regulations, including definitions of terms, to require

the reporting and public disclosure of information by a bank or any

executive officer or principal shareholder thereof concerning

extensions of credit by the bank to any of its executive officers

or principal shareholders, or the related interests of such

persons.

(l) Designation of fund membership for newly insured depository

institutions; definitions

For purposes of this section:

(1) Bank Insurance Fund

Any institution which -

(A) becomes an insured depository institution; and

(B) does not become a Savings Association Insurance Fund

member pursuant to paragraph (2),

shall be a Bank Insurance Fund member.

(2) Savings Association Insurance Fund

Any savings association, other than any Federal savings bank

chartered pursuant to section 1464(o) of this title, which

becomes an insured depository institution shall be a Savings

Association Insurance Fund member.

(3) Transition provision

(A) Bank Insurance Fund

Any depository institution the deposits of which were insured

by the Federal Deposit Insurance Corporation on the day before

August 9, 1989, including -

(i) any Federal savings bank chartered pursuant to section

1464(o) of this title; and

(ii) any cooperative bank,

shall be a Bank Insurance Fund member as of August 9, 1989.

(B) Savings Association Insurance Fund

Any savings association which is an insured depository

institution by operation of section 1814(a)(2) of this title

shall be a Savings Association Insurance Fund member as of

August 9, 1989.

(4) Bank Insurance Fund member

The term ''Bank Insurance Fund member'' means any depository

institution the deposits of which are insured by the Bank

Insurance Fund.

(5) Savings Association Insurance Fund member

The term ''Savings Association Insurance Fund member'' means

any depository institution the deposits of which are insured by

the Savings Association Insurance Fund.

(6) Bank Insurance Fund reserve ratio

The term ''Bank Insurance Fund reserve ratio'' means the ratio

of the net worth of the Bank Insurance Fund to the value of the

aggregate estimated insured deposits held in all Bank Insurance

Fund members.

(7) Savings Association Insurance Fund reserve ratio

The term ''Savings Association Insurance Fund reserve ratio''

means the ratio of the net worth of the Savings Association

Insurance Fund to the value of the aggregate estimated insured

deposits held in all Savings Association Insurance Fund members.

(m) Secondary reserve offsets against premiums

(1) Offsets in calendar years beginning before 1993

Subject to the maximum amount limitation contained in paragraph

(2) and notwithstanding any other provision of law, any insured

savings association may offset such association's pro rata share

of the statutorily prescribed amount against any premium assessed

against such association under subsection (b) of this section for

any calendar year beginning before 1993.

(2) Annual maximum amount limitation

The amount of any offset allowed for any savings association

under paragraph (1) for any calendar year beginning before 1993

shall not exceed an amount which is equal to 20 percent of such

association's pro rata share of the statutorily prescribed amount

(as computed for such calendar year).

(3) Offsets in calendar years beginning after 1992

Notwithstanding any other provision of law, a savings

association may offset such association's pro rata share of the

statutorily prescribed amount against any premium assessed

against such association under subsection (b) of this section for

any calendar year beginning after 1992.

(4) Transferability

No right, title, or interest of any insured depository

institution in or with respect to its pro rata share of the

secondary reserve shall be assignable or transferable whether by

operation of law or otherwise, except to the extent that the

Corporation may provide for transfer of such pro rata share in

cases of merger or consolidation, transfer of bulk assets or

assumption of liabilities, and similar transactions, as defined

by the Corporation for purposes of this paragraph.

(5) Pro rata distribution on termination of insured status

If -

(A) the status of any savings association as an insured

depository institution is terminated pursuant to any provision

of section 1818 of this title or the insurance of accounts of

any such institution is otherwise terminated;

(B) a receiver or other legal custodian is appointed for the

purpose of liquidation or winding up the affairs of any savings

association; or

(C) the Corporation makes a determination that for the

purposes of this subsection any savings association has

otherwise gone into liquidation,

the Corporation shall pay in cash to such institution its pro

rata share of the secondary reserve, in accordance with such

terms and conditions as the Corporation may prescribe, or, at the

option of the Corporation, the Corporation may apply the whole or

any part of the amount which would otherwise be paid in cash

toward the payment of any indebtedness or obligation, whether

matured or not, of such institution to the Corporation, existing

or arising before such payment in cash. Such payment or such

application need not be made to the extent that the provisions of

the exception in paragraph (4) are applicable.

(6) ''Statutorily prescribed amount'' defined

For purposes of this subsection, the term ''statutorily

prescribed amount'' means, with respect to any calendar year

which ends after August 9, 1989 -

(A) $823,705,000, minus

(B) the sum of -

(i) the aggregate amount of offsets made before August 9,

1989, by all insured institutions under section 404(e)(2)

(FOOTNOTE 4) of the National Housing Act (12 U.S.C.

1727(e)(2)) (as in effect before August 9, 1989); and

(FOOTNOTE 4) See References in Text note below.

(ii) the aggregate amount of offsets made by all savings

associations under this subsection before the beginning of

such calendar year.

(7) Savings association's pro rata amount

For purposes of this subsection, any savings association's pro

rata share of the statutorily prescribed amount is the percentage

which is equal to such association's share of the secondary

reserve as determined under section 404(e) (FOOTNOTE 4) of the

National Housing Act on the day before the date on which the

Federal Savings and Loan Insurance Corporation ceased to

recognize the secondary reserve (as such Act (12 U.S.C. 1701 et

seq.) was in effect on the day before such date).

(8) Year of enactment rule

With respect to the calendar year in which the Financial

Institutions Reform, Recovery, and Enforcement Act of 1989 is

enacted, the Corporation shall make such adjustments as may be

necessary -

(A) in the computation of the statutorily prescribed amount

which shall be applicable for the remainder of such calendar

year after taking into account the aggregate amount of offsets

by all insured institutions under section 404(e)(2) (FOOTNOTE

4) of the National Housing Act (12 U.S.C. 1727(e)(2)) (as in

effect before August 9, 1989) after the beginning of such

calendar year and before August 9, 1989; and

(B) in the computation of the maximum amount of any savings

association's offset for such calendar year under paragraph (1)

after taking into account -

(i) the amount of any offset by such savings association

under section 404(e)(2) (FOOTNOTE 4) of the National Housing

Act (as in effect before August 9, 1989) after the beginning

of such calendar year and before August 9, 1989; and

(ii) the change of such association's premium year from the

1-year period applicable under section 404(b) (FOOTNOTE 4) of

the National Housing Act (as in effect before August 9, 1989)

to a calendar year basis.

(n) Collections on behalf of Director of Office of Thrift

Supervision

When requested by the Director of the Office of Thrift

Supervision, the Corporation shall collect on behalf of the

Director assessments on savings associations levied by the Director

under section 1467 of this title. The Corporation shall be

reimbursed for its actual costs for the collection of such

assessments. Any such assessments by the Director shall be in

addition to any amounts assessed by the Corporation, the Financing

Corporation, and the Resolution Funding Corporation.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(7), 64 Stat. 876; Pub. L. 86-671,

Sec. 2, 3, July 14, 1960, 74 Stat. 547-551; Pub. L. 88-593, Sept.

12, 1964, 78 Stat. 940; Pub. L. 89-695, title II, Sec. 201, title

III, Sec. 301(b), Oct. 16, 1966, 80 Stat. 1046, 1055; Pub. L.

91-151, Sec. 7(a)(2), Dec. 23, 1969, 83 Stat. 375; Pub. L. 91-609,

title IX, Sec. 910(g), (h), Dec. 31, 1970, 84 Stat. 1812; Pub. L.

93-495, title I, Sec. 101(a)(2), 102(a)(2), Oct. 28, 1974, 88 Stat.

1500, 1502; Pub. L. 95-369, Sec. 6(c)(8)-(13), Sept. 17, 1978, 92

Stat. 617, 618; Pub. L. 95-630, title III, Sec. 302, 310, title VI,

Sec. 602, title IX, Sec. 901, Nov. 10, 1978, 92 Stat. 3676, 3678,

3683, 3693; Pub. L. 96-221, title III, Sec. 308(a)(1)(B), (d), Mar.

31, 1980, 94 Stat. 147, 148; Pub. L. 97-110, title I, Sec. 103(b),

Dec. 26, 1981, 95 Stat. 1514; Pub. L. 97-320, title I, Sec.

113(d)-(f), (q), 117, title IV, Sec. 429, Oct. 15, 1982, 96 Stat.

1473, 1475, 1479, 1527; Pub. L. 99-570, title I, Sec. 1360, Oct.

27, 1986, 100 Stat. 3207-29; Pub. L. 100-86, title V, Sec. 505(a),

Aug. 10, 1987, 101 Stat. 633; Pub. L. 101-73, title II, Sec. 201,

208, title IX, Sec. 905(c), 907(d), 911(c), 931(a), Aug. 9, 1989,

103 Stat. 187, 206, 460, 468, 479, 493; Pub. L. 101-508, title II,

Sec. 2002-2004, Nov. 5, 1990, 104 Stat. 1388-14 - 1388-16; Pub. L.

102-242, title I, Sec. 103(b), 104, 113(c)(1), 141(c), title II,

Sec. 205, 232(b), 233(c), title III, Sec. 302(a), (b), (e)(3), (4),

formerly (e)(2), (3), 311(a)(2), (b)(3), 313(a), title IV, Sec.

474, Dec. 19, 1991, 105 Stat. 2238, 2247, 2277, 2292, 2310, 2314,

2345, 2348, 2349, 2363, 2365, 2368, 2386; Pub. L. 102-550, title

IX, Sec. 931(a), (b), title XVI, Sec. 1603(a)(1), (3), 1604(b)(1),

(3), 1605(a)(2), (5)(A), (6), (b)(1), (2), 1606(i)(1), Oct. 28,

1992, 106 Stat. 3888, 4078, 4083, 4085-4087, 4089; Pub. L. 102-558,

title III, Sec. 303(a), (b)(1), (3), (6)(A), (7), (8), 305, Oct.

28, 1992, 106 Stat. 4224-4226; Pub. L. 103-204, Sec. 8(h), 38(a),

Dec. 17, 1993, 107 Stat. 2388, 2416; Pub. L. 103-325, title III,

Sec. 305(b), 308(b), 348, title VI, Sec. 602(a)(4)-(10), Sept. 23,

1994, 108 Stat. 2217, 2218, 2241, 2288; Pub. L. 104-208, div. A,

title II, Sec. 2226, 2703(b), 2704(d)(6)(B), (14)(G), 2706-2708,

Sept. 30, 1996, 110 Stat. 3009-417, 3009-485, 3009-488, 3009-491,

3009-496, 3009-497; Pub. L. 106-569, title XII, Sec. 1231(a), Dec.

27, 2000, 114 Stat. 3036.)

-REFTEXT-

REFERENCES IN TEXT

For effective date of amendments made by section 302(a) of the

Federal Deposit Insurance Corporation Improvement Act of 1991,

referred to in subsec. (b)(2)(F), see section 302(g) of Pub. L.

102-242, set out as an Effective Date of 1991 Amendment note below.

The Bank Enterprise Act of 1991, referred to in subsec.

(b)(2)(H), is subtitle C (Sec. 231-234) of title II of Pub. L.

102-242, Dec. 19, 1991, 105 Stat. 2308-2315, which enacted sections

1834 to 1834b of this title, amended this section, and enacted

provisions set out as a note under section 1811 of this title. For

complete classification of this Act to the Code, see Short Title of

1991 Amendment note set out under section 1811 of this title and

Tables.

Section 2704 of the Deposit Insurance Funds Act of 1996, referred

to in subsec. (e)(2)(A)(i), is section 2704 of Pub. L. 104-208. For

complete classification of this section to the Code, see section

2704(c) of Pub. L. 104-208, set out as an Effective Date of 1996

Amendment note under section 1821 of this title and Tables.

The National Bank Act, referred to in subsec. (h), is act June 3,

1864, ch. 106, 13 Stat. 99, as amended, which is classified

principally to chapter 2 (Sec. 21 et seq.) of this title. For

complete classification of this Act to the Code, see References in

Text note set out under section 38 of this title.

The Federal Reserve Act, referred to in subsec. (h), is act Dec.

23, 1913, ch. 6, 38 Stat. 251, as amended, which is classified

principally to chapter 3 (Sec. 221 et seq.) of this title. For

complete classification of this Act to the Code, see References in

Text note set out under section 226 of this title and Tables.

The Bank Holding Company Act of 1956, referred to in subsec.

(j)(9)(E)(i), is act May 9, 1956, ch. 240, 70 Stat. 133, as

amended, which is classified principally to chapter 17 (Sec. 1841

et seq.) of this title. For complete classification of this Act to

the Code, see Short Title note set out under section 1841 of this

title and Tables.

For effective date of the Change in Bank Control Act of 1978

(title VI of Pub. L. 95-630), referred to in subsec. (j)(14), see

section 2101 of Pub. L. 95-630, set out as an Effective Date note

under section 375b of this title.

The National Housing Act, referred to in subsec. (m)(6) to (8),

is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is

classified principally to chapter 13 (Sec. 1701 et seq.) of this

title. Section 404 of the National Housing Act, is section 1727 of

this title, as such section was in effect prior to repeal by Pub.

L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363. For

complete classification of this Act to the Code, see section 1701

of this title and Tables.

The calendar year in which the Financial Institutions Reform,

Recovery, and Enforcement Act of 1989 is enacted, referred to in

subsec. (m)(8), means the calendar year in which Pub. L. 101-73 was

enacted. Such Act was approved Aug. 9, 1989.

-MISC2-

PRIOR PROVISIONS

Section is derived from subsec. (h) of former section 264 of this

title. See Codification note under section 1811 of this title.

AMENDMENTS

2000 - Subsec. (b)(2)(E)(iii). Pub. L. 106-569 amended directory

language of Pub. L. 104-208, Sec. 2707. See 1996 Amendment note

below.

1996 - Subsec. (b)(1)(D). Pub. L. 104-208, Sec.

2704(d)(14)(G)(i), which directed substitution of ''the Deposit

Insurance Fund'' for ''each deposit insurance fund'', was not

executed. See Effective Date of 1996 Amendment note below.

Subsec. (b)(2)(A)(i). Pub. L. 104-208, Sec. 2708(a), inserted

''when necessary, and only to the extent necessary'' after

''insured depository institutions'' in introductory provisions.

Subsec. (b)(2)(A)(i)(I). Pub. L. 104-208, Sec.

2704(d)(14)(G)(ii), which directed substitution of ''the Deposit

Insurance Fund'' for ''each deposit insurance fund'', was not

executed. See Effective Date of 1996 Amendment note below.

Subsec. (b)(2)(A)(iii). Pub. L. 104-208, Sec. 2708(b), amended

heading and text of cl. (iii) generally. Prior to amendment, text

read as follows: ''The semiannual assessment for each member of a

deposit insurance fund shall be not less than $1,000.''

Pub. L. 104-208, Sec. 2704(d)(14)(G)(iii), which directed

substitution of ''the Deposit Insurance Fund'' for ''a deposit

insurance fund'', was not executed. See Effective Date of 1996

Amendment note below.

Subsec. (b)(2)(A)(iv). Pub. L. 104-208, Sec. 2704(d)(14)(G)(ii),

(iv), which directed substitution of ''the Deposit Insurance Fund''

for ''each deposit insurance fund'' and striking out cl. (iv), was

not executed. See Effective Date of 1996 Amendment note below.

Subsec. (b)(2)(A)(v). Pub. L. 104-208, Sec. 2708(c), added cl.

(v).

Subsec. (b)(2)(B). Pub. L. 104-208, Sec. 2704(d)(6)(B)(iii),

which directed the striking of subpar. (B) and the redesignation of

subpar. (C) as (B), was not executed. See Effective Date of 1996

Amendment note below.

Subsec. (b)(2)(C). Pub. L. 104-208, Sec. 2704(d)(6)(B)(iii),

(14)(G)(v), which directed the redesignation of subpar. (E) as (C)

and substitution of ''the Deposit Insurance Fund'' for ''any

deposit insurance fund'' and ''the Deposit Insurance Fund'' for

''that fund'' wherever appearing, was not executed. See Effective

Date of 1996 Amendment note below.

Subsec. (b)(2)(D). Pub. L. 104-208, Sec. 2704(d)(6)(B)(iii),

(14)(G)(vi), which directed the redesignation of subpar. (G) as (D)

and substitution of ''fund achieves'' for ''funds achieve'' in

heading and ''the Deposit Insurance Fund'' for ''a deposit

insurance fund'' in text, was not executed. See Effective Date of

1996 Amendment note below.

Pub. L. 104-208, Sec. 2703(b), struck out heading and text of

subpar. (D). Text read as follows: ''Notwithstanding any other

provision of this paragraph, amounts assessed by the Financing

Corporation under section 1441 of this title against Savings

Association Insurance Fund members shall be subtracted from the

amounts authorized to be assessed by the Corporation under this

paragraph.''

Subsec. (b)(2)(E). Pub. L. 104-208, Sec. 2704(d)(6)(B)(iii),

which directed the redesignation of subpar. (H) as (E), was not

executed. See Effective Date of 1996 Amendment note below.

Subsec. (b)(2)(E)(iii). Pub. L. 104-208, Sec. 2707, as amended by

Pub. L. 106-569, added cl. (iii).

Subsec. (b)(2)(F) to (H). Pub. L. 104-208, Sec.

2704(d)(6)(B)(iii), which directed the striking of subpar. (F) and

the redesignation of subpars. (G) and (H) as (D) and (E),

respectively, was not executed. See Effective Date of 1996

Amendment note below.

Subsec. (b)(3). Pub. L. 104-208, Sec. 2704(d)(14)(G)(vii)(I),

which directed substitution of ''fund'' for ''funds'' in heading,

was not executed. See Effective Date of 1996 Amendment note below.

Subsec. (b)(3)(A). Pub. L. 104-208, Sec.

2704(d)(14)(G)(vii)(II)-(V), which directed substitution of ''If''

for ''Except as provided in paragraph (2)(F), if'', ''the Deposit

Insurance Fund'' for ''any deposit insurance fund'', and ''insured

depository institutions'' for ''members of that fund'' in

introductory provisions and directed substitution of ''the Deposit

Insurance Fund'' for ''that fund'' in cl. (i), was not executed.

See Effective Date of 1996 Amendment note below.

Subsec. (b)(3)(B). Pub. L. 104-208, Sec.

2704(d)(14)(G)(vii)(III), which directed substitution of ''the

Deposit Insurance Fund'' for ''that fund'', was not executed. See

Effective Date of 1996 Amendment note below.

Subsec. (b)(3)(C), (D). Pub. L. 104-208, Sec.

2704(d)(14)(G)(vii)(VI), which directed the striking of subpars.

(C) and (D) and the addition of a new subpar. (C), was not

executed. See Effective Date of 1996 Amendment note below.

Subsec. (b)(6). Pub. L. 104-208, Sec. 2704(d)(14)(G)(viii), which

directed the amendment of par. (6) by substituting ''any such

assessment is necessary'' for ''any such assessment'' in

introductory provisions, striking subpar. (A) designation,

introductory provisions, and subpar. (B), redesignating cls. (i) to

(iii) of subpar. (A) as subpars. (A) to (C), respectively,

realigning margins, and substituting period for ''; and'' at end of

subpar. (C), was not executed. See Effective Date of 1996

Amendment note below.

Subsec. (e). Pub. L. 104-208, Sec. 2706, inserted heading and

amended text of subsec. (e) generally. Prior to amendment, text

read as follows: ''The Corporation (1) may refund to an insured

depository institution any payment of assessment in excess of the

amount due to the Corporation or (2) may credit such excess toward

the payment of the assessment next becoming due from such

depository institution and upon succeeding assessments until the

credit is exhausted.''

Subsec. (j)(9)(A). Pub. L. 104-208, Sec. 2226(1), substituted

''foreign bank, or any affiliate thereof,'' for ''financial

institution and any affiliate of any financial institution'' and

''by the foreign bank or any affiliate thereof'' for ''by the

financial institution and such institution's affiliates''.

Subsec. (j)(9)(B). Pub. L. 104-208, Sec. 2226(2)(A), substituted

''paragraph, the following definitions shall apply:'' for

''paragraph - '' in introductory provisions.

Subsec. (j)(9)(B)(i). Pub. L. 104-208, Sec. 2226(2)(B), added cl.

(i) and struck out heading and text of former cl. (i). Text read as

follows: ''The term 'financial institution' means any insured

depository institution and any foreign bank that is subject to the

provisions of the Bank Holding Company Act of 1956 by virtue of

section 3106(a) of this title.''

Subsec. (j)(9)(B)(iii). Pub. L. 104-208, Sec. 2226(2)(C),

substituted ''foreign bank or any affiliate thereof'' for

''financial institution'' in introductory provisions.

Subsec. (j)(9)(C). Pub. L. 104-208, Sec. 2226(3), substituted

''foreign bank or any affiliate thereof'' for ''financial

institution or any of its affiliates'' before ''as principal'' and

for ''financial institution or its affiliates'' before ''has a

security interest''.

Subsec. (j)(9)(D)(i). Pub. L. 104-208, Sec. 2226(4)(A),

substituted ''the foreign bank and all affiliates thereof'' for

''the financial institution and all affiliates of the institution''

and ''foreign bank or affiliate thereof'' for ''financial

institution or any such affiliate''.

Subsec. (j)(9)(D)(ii), (iii). Pub. L. 104-208, Sec. 2226(4)(B),

(C), substituted ''foreign bank and any affiliate thereof'' for

''financial institution and any affiliate of such institution''

before period at end of cl. (ii) and ''foreign bank or any

affiliate thereof'' for ''financial institution'' before

parenthetical at end of cl. (iii).

Subsec. (j)(9)(E)(i). Pub. L. 104-208, Sec. 2226(5)(A),

substituted ''subparagraph (A), a foreign bank or any affiliate

thereof'' for ''subparagraph (A), a financial institution and the

affiliates of such institution'' and substituted ''foreign bank or

any affiliate thereof'' for ''institution or affiliate'' in two

places.

Subsec. (j)(9)(E)(ii). Pub. L. 104-208, Sec. 2226(5)(B),

substituted ''foreign bank and any affiliate thereof'' for

''financial institution and any affiliate of such institution''.

Subsecs. (l) to (n). Pub. L. 104-208, Sec. 2704(d)(6)(B)(i),

(ii), which directed the striking of subsec. (l) and the

redesignation of subsecs. (m) and (n) as (l) and (m), respectively,

was not executed. See Effective Date of 1996 Amendment note below.

1994 - Subsec. (a)(1). Pub. L. 103-325, Sec. 308(b), struck out

after third sentence ''The Board of Directors may require reports

of condition to be published in such manner, not inconsistent with

any applicable law, as it may direct.''

Subsec. (a)(2)(A). Pub. L. 103-325, Sec. 305(b), inserted ''and,

with respect to any State depository institution, any appropriate

State bank supervisor for such institution,'' after ''The

Corporation'' in first sentence.

Subsec. (a)(3). Pub. L. 103-325, Sec. 602(a)(4), struck out

''Chairman of the'' before ''Director of the Office of Thrift

Supervision''.

Subsec. (a)(9). Pub. L. 103-325, Sec. 348, inserted at end ''In

prescribing reporting and other requirements for the collection of

actual and accurate information pursuant to this paragraph, the

Corporation shall minimize the regulatory burden imposed upon

insured depository institutions that are well capitalized (as

defined in section 1831o of this title) while taking into account

the benefit of the information to the Corporation, including the

use of the information to enable the Corporation to more accurately

determine the total amount of insured deposits in each insured

depository institution for purposes of compliance with this

chapter.''

Subsec. (b)(3)(C). Pub. L. 103-325, Sec. 602(a)(5), struck out

first period at end.

Subsec. (j)(2)(A). Pub. L. 103-325, Sec. 602(a)(6), in third

sentence substituted ''this paragraph'' for ''this section (j)(2)''

and ''this subsection (j)(2)'', respectively.

Subsec. (j)(7)(A). Pub. L. 103-325, Sec. 602(a)(7), substituted

''monopolize'' for ''monoplize'' after ''conspiracy to''.

Subsec. (l)(7). Pub. L. 103-325, Sec. 602(a)(8), substituted

''the ratio of'' for ''the ratio of the value of''.

Subsec. (m)(5)(A). Pub. L. 103-325, Sec. 602(a)(9), substituted

''such institution'' for ''savings association institution''.

Subsec. (m)(7). Pub. L. 103-325, Sec. 602(a)(10), inserted

''the'' before ''Federal''.

1993 - Subsec. (b)(3)(C). Pub. L. 103-204, Sec. 8(h), substituted

''and such amendment may extend the date specified in subparagraph

(B) to such later date as the Corporation determines will, over

time, maximize the amount of semiannual assessments received by the

Savings Association Insurance Fund, net of insurance losses

incurred by the Fund.'' for '', but such amendments may not extend

the date specified in subparagraph (B)''.

Subsec. (i)(3), (4). Pub. L. 103-204, Sec. 38(a), added par. (3)

and redesignated former par. (3) as (4).

1992 - Subsec. (a). Pub. L. 102-558, Sec. 303(b)(1), amended

directory language of Pub. L. 102-242, Sec. 232(b)(1). See 1991

Amendment note below. Pub. L. 102-550, Sec. 1604(b)(1), which

contained a similar amendment, was repealed, effective Oct. 28,

1992, by Pub. L. 102-558, Sec. 305, set out as a Repeal of

Duplicative Provisions note under section 1815 of this title.

Subsec. (a)(5). Pub. L. 102-558, Sec. 303(b)(6)(A), amended

directory language of Pub. L. 102-242, Sec. 302(e). See 1991

Amendment note below. Pub. L. 102-550, Sec. 1605(a)(5)(A), which

contained an identical amendment, was repealed, effective Oct. 28,

1992, by Pub. L. 102-558, Sec. 305, set out as a Repeal of

Duplicative Provisions note under section 1815 of this title.

Subsec. (a)(9), (10). Pub. L. 102-550, Sec. 1606(i)(1),

redesignated par. (9), relating to designation of debtor or

bankrupt corporation or transaction with such a corporation as

highly leveraged, as (10).

Subsec. (b)(1)(A)(iii). Pub. L. 102-550, Sec. 1603(a)(1),

substituted ''assessment rate.'' for ''assessment.''

Subsec. (b)(2). Pub. L. 102-558, Sec. 303(a), struck out comma

after ''members'' in subpar. (D) and added subpar. (H). Pub. L.

102-550, Sec. 1605(a)(2), which contained an identical amendment,

was repealed, effective Oct. 28, 1992, by Pub. L. 102-558, Sec.

305, set out as a Repeal of Duplicative Provisions note under

section 1815 of this title.

Subsec. (b)(2)(A)(iii)(I). Pub. L. 102-550, Sec. 931(b), amended

subcl. (I) generally. Prior to amendment, subcl. (I) read as

follows: '' 1/2 the assessment rate applicable with respect to such

deposits pursuant to paragraph (10) during that semiannual

assessment period; and''.

Subsec. (b)(6). Pub. L. 102-558, Sec. 303(b)(7), added par. (6).

Pub. L. 102-550, Sec. 1603(a)(3), which contained an identical

amendment, was repealed, effective Oct. 28, 1992, by Pub. L.

102-558, Sec. 305, set out as a Repeal of Duplicative Provisions

note under section 1815 of this title.

Subsec. (b)(6)(D). Pub. L. 102-550, Sec. 1605(b)(1), added

subpar. (D) and struck out former subpar. (D) which read as

follows: ''any liability of the insured depository institution

which is not treated as an insured deposit pursuant to section

1821(a)(8) of this title.''

Subsec. (b)(7). Pub. L. 102-558, Sec. 303(b)(8), added par. (7).

Pub. L. 102-550, Sec. 1605(a)(6), which contained an identical

amendment, was repealed, effective Oct. 28, 1992, by Pub. L.

102-558, Sec. 305, set out as a Repeal of Duplicative Provisions

note under section 1815 of this title.

Subsec. (b)(10). Pub. L. 102-550, Sec. 931(a), substituted ''at

an assessment rate to be determined by the Corporation by

regulation. Such assessment rate may not be less than 1/2 the

maximum assessment rate.'' for ''at the assessment rate of 1/2 the

maximum rate.''

Subsec. (c)(4). Pub. L. 102-550, Sec. 1605(b)(2), added par. (4)

and substituted ''paragraph (1)'' for ''paragraph (1) or (2)''

wherever appearing.

Subsec. (d). Pub. L. 102-558, Sec. 303(b)(6)(A), amended

directory language of Pub. L. 102-242, Sec. 302(e). See 1991

Amendment note below. Pub. L. 102-550, Sec. 1605(a)(5)(A), which

contained an identical amendment, was repealed, effective Oct. 28,

1992, by Pub. L. 102-558, Sec. 305, set out as a Repeal of

Duplicative Provisions note under section 1815 of this title.

Subsec. (d)(5). Pub. L. 102-558, Sec. 303(b)(3), made technical

amendment to reference to section 1834b of this title, to correct

underlying provisions of original act. Pub. L. 102-550, Sec.

1604(b)(3), which contained an identical amendment, was repealed,

effective Oct. 28, 1992, by Pub. L. 102-558, Sec. 305, set out as a

Repeal of Duplicative Provisions note under section 1815 of this

title.

1991 - Subsec. (a). Pub. L. 102-242, Sec. 474, added par. (9)

relating to designation of debtor or bankrupt corporation or

transaction with such a corporation as highly leveraged.

Pub. L. 102-242, Sec. 232(b)(1), as amended by Pub. L. 102-558,

Sec. 303(b)(1), added par. (6) and redesignated former pars. (6) to

(8) as (7) to (9), respectively.

Pub. L. 102-242, Sec. 141(c), amended par. (8) generally,

substituting provisions relating to data collections for provisions

which required that the reports of conditions made by depository

institutions be provided to auditors which had made independent

audits of insured depository institutions within the past two years

and that such reports also include specified additional

information. Par. (8) subsequently redesignated (9), see above.

Subsec. (a)(5). Pub. L. 102-242, Sec. 302(e)(3), as renumbered by

Pub. L. 102-558, Sec. 303(b)(6)(A), struck out ''and for the

computation of assessments provided in subsection (b) of this

section'' after ''For this purpose''.

Subsec. (b). Pub. L. 102-242, Sec. 302(a), amended subsec. (b)

generally, revising and restating as pars. (1) to (5) provisions of

former pars. (1) to (11).

Subsec. (b)(1)(A)(iii). Pub. L. 102-242, Sec. 104(b), added cl.

(iii) and struck out former cl. (iii) which read as follows:

''Deadline for announcing rate changes. - The Corporation shall

announce any change in assessment rates. -

''(I) for the semiannual period beginning on January 1 and

ending on June 30, not later than the preceding November 1; and

''(II) for the semiannual period beginning on July 1 and ending

on December 31, not later than the preceding May 1.''

Subsec. (b)(1)(C). Pub. L. 102-242, Sec. 104(a), amended subpar.

(C) generally. Prior to amendment, subpar. (C) read as follows:

''Assessment rate for bank insurance fund members. -

''(i) In general. - The assessment rate for Bank Insurance Fund

members shall be the greater of 0.15 percent or such rate as the

Board of Directors, in its sole discretion, determines to be

appropriate -

''(I) to maintain the reserve ratio at the designated reserve

ratio; or

''(II) if the reserve ratio is less than the designated reserve

ratio, to increase the reserve ratio to the designated reserve

ratio within a reasonable period of time.

''(ii) Factors to be considered. - In making any determination

under clause (i), the Board of Directors shall consider the Bank

Insurance Fund's expected operating expenses, case resolution

expenditures, and income, the effect of the assessment rate on

members' earnings and capital, and such other factors as the Board

of Directors may deem appropriate.

''(iii) Minimum assessment. - Notwithstanding clause (i), the

assessment shall not be less than $1,000 for each member in each

year.''

Subsec. (b)(2)(A)(i)(II). Pub. L. 102-242, Sec. 232(b)(3)(A),

added subcl. (II) and struck out former subcl. (II) which read as

follows: ''such Bank Insurance Fund member's average assessment

base for the immediately preceding semiannual period; and''.

Subsec. (b)(2)(A)(ii)(II). Pub. L. 102-242, Sec. 232(b)(3)(B),

added subcl. (II) and struck out former subcl. (II) which read as

follows: ''such Savings Association Insurance Fund member's average

assessment base for the immediately preceding semiannual period.''

Subsec. (b)(2)(A)(iii). Pub. L. 102-242, Sec. 232(b)(3)(C), added

cl. (iii).

Subsec. (b)(6)(D). Pub. L. 102-242, Sec. 311(a)(2), added subpar.

(D).

Subsec. (b)(7) to (9). Pub. L. 102-242, Sec. 103(b), added par.

(7) and redesignated former pars. (7) and (8) as (8) and (9),

respectively. Former par. (9) redesignated (10).

Subsec. (b)(10). Pub. L. 102-242, Sec. 232(b)(2), added par. (10)

and redesignated former par. (10) as (11).

Pub. L. 102-242, Sec. 113(c)(1), inserted ''or section 1820(e) of

this title'' after ''under this section''.

Pub. L. 102-242, Sec. 103(b)(1), redesignated par. (9) as (10).

Subsec. (b)(11). Pub. L. 102-242, Sec. 232(b)(2), redesignated

par. (10) as (11).

Subsec. (c). Pub. L. 102-242, Sec. 302(b), amended subsec. (c)

generally, revising and restating as pars. (1) to (3) provisions of

former pars. (1) to (5).

Subsec. (c)(5). Pub. L. 102-242, Sec. 313(a), added par. (5).

Subsec. (d). Pub. L. 102-242, Sec. 302(e)(4), as renumbered by

Pub. L. 102-558, Sec. 303(b)(6)(A), amended subsec. (d) generally,

substituting provisions exempting Corporation from apportionment

for purposes of chapter 15 of title 31 for provisions relating to

assessment credits.

Subsec. (d)(1)(A). Pub. L. 102-242, Sec. 233(c)(2)(A), inserted

''(other than credits allowed pursuant to paragraph (4))'' after

''amount to be credited''.

Subsec. (d)(1)(B). Pub. L. 102-242, Sec. 233(c)(2)(B), inserted

''(taking into account any assessment credit allowed pursuant to

paragraph (4))'' after ''should be reduced''.

Subsec. (d)(4) to (7). Pub. L. 102-242, Sec. 233(c)(1), added

pars. (4) and (5) and redesignated former pars. (4) and (5) as (6)

and (7), respectively.

Subsec. (i). Pub. L. 102-242, Sec. 311(b)(3), amended subsec. (i)

generally. Prior to amendment, subsec. (i) read as follows:

''Except with respect to trust funds which are owned by a depositor

referred to in paragraph (2) of section 1821(a) of this title,

trust funds held by an insured depository institution in a

fiduciary capacity whether held in its trust department or held or

deposited in any other department of the fiduciary depository

institution shall be insured in an amount not to exceed $100,000

for each trust estate, and when deposited by the fiduciary

depository institution in another insured depository institution

such trust fund shall be similarly insured to the fiduciary

depository institution according to the trust estates represented.

Notwithstanding any other provision of this chapter, such insurance

shall be separate from and additional to that covering other

deposits of the owners of such trust funds or the beneficiaries of

such trust estates. The Board of Directors shall have power by

regulation to prescribe the manner of reporting and of depositing

such trust funds.''

Subsec. (j)(9). Pub. L. 102-242, Sec. 205, amended par. (9)

generally. Prior to amendment, par. (9) read as follows:

''Whenever any insured depository institution makes a loan or

loans, secured, or to be secured, by 25 per centum or more of the

outstanding voting stock of an insured depository institution, the

president or other chief executive officer of the lending bank

shall promptly report such fact to the appropriate Federal banking

agency of the bank whose stock secures the loan or loans upon

obtaining knowledge of such loan or loans, except that no report

need be made in those cases where the borrower has been the owner

of record of the stock for a period of one year or more or where

the stock is that of the newly organized bank prior to its

opening.''

1990 - Subsec. (b)(1)(A). Pub. L. 101-508, Sec. 2003(a), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows:

''(A) Annual assessment rates prescribed. -

''(i) The Corporation shall set assessment rates for insured

depository institutions annually.

''(ii) The Corporation shall fix the annual assessment rate of

Bank Insurance Fund members independently from the annual

assessment rate for Savings Association Insurance Fund members.

''(iii) The Corporation shall, by September 30 of each year,

announce the assessment rates for the succeeding calendar year.''

Subsec. (b)(1)(B)(i)(II), (ii)(II). Pub. L. 101-508, Sec.

2004(1), struck out '', not exceeding 1.50 percent,'' after

''insured deposits''.

Subsec. (b)(1)(B)(iii). Pub. L. 101-508, Sec. 2004(2), inserted

''and'' after ''Fund;'' in subcl. (I), redesignated subcl. (IV) as

(II) and struck out former subcls. (II) and (III) which read as

follows:

''(II) allocate each calendar quarter to an Earnings

Participation Account in the Bank Insurance Fund the investment

income earned by the Bank Insurance Fund on such Supplemental

Reserves in the preceding calendar quarter;

''(III) distribute such Earnings Participation Account at the

conclusion of each calendar year to Bank Insurance Fund members;

and''.

Subsec. (b)(1)(B)(iv). Pub. L. 101-508, Sec. 2004(3), inserted

''and'' after ''Fund;'' in subcl. (I), redesignated subcl. (IV) as

(II), and struck out former subcls. (II) and (III) which read as

follows:

''(II) allocate each calendar quarter to an Earnings

Participation Account in the Savings Association Insurance Fund the

investment income earned by the Savings Association Insurance Fund

on such Supplemental Reserves in the preceding calendar quarter;

''(III) distribute such Earnings Participation Account at the

conclusion of each calendar year to Savings Association Insurance

Fund members; and''.

Subsec. (b)(1)(C). Pub. L. 101-508, Sec. 2002(a), amended subpar.

(C) generally. Prior to amendment, subpar. (C) read as follows:

''Assessment rate for bank insurance fund members. - The annual

assessment rate for Bank Insurance Fund members shall be -

''(i) until December 31, 1989, 1/12 of 1 percent;

''(ii) from January 1, 1990, through December 31, 1990, 0.12

percent;

''(iii) on and after January 1, 1991, 0.15 percent;

''(iv) on January 1 of a calendar year in which the reserve

ratio of the Bank Insurance Fund is expected to be less than the

designated reserve ratio by determination of the Board of

Directors, such rate determined by the Board of Directors to be

appropriate to restore the reserve ratio to the designated

reserve ratio within a reasonable period of time, after taking

into consideration the expected operating expenses, case

resolution expenditures, and investment income of the Bank

Insurance Fund, and the impact on insured bank earnings and

capitalization, except that -

''(I) from August 9, 1989, until the earlier of January 1,

1995, or January 1 of the calendar year in which the Bank

Insurance Fund reserve ratio is expected to first attain the

designated reserve ratio, the rate shall be as specified in

clauses (i), (ii), and (iii) of this subparagraph so long as

the Bank Insurance Fund reserve ratio is increasing on a

calendar year basis;

''(II) the rate shall not exceed 0.325 percent; and

''(III) the increase in the rate in any 1 year shall not

exceed 0.075 percent; and

''(v) sufficient to ensure that for each member in each year

the assessment shall not be less than $1,000.''

Subsec. (b)(1)(D). Pub. L. 101-508, Sec. 2002(b), amended subpar.

(D) generally. Prior to amendment, subpar. (D) read as follows:

''Assessment rate for savings association insurance fund members. -

The annual assessment rate for Savings Association Insurance Fund

members shall be -

''(i) until December 31, 1990, 0.208 percent;

''(ii) from January 1, 1991, through December 31, 1993, 0.23

percent;

''(iii) from January 1, 1994, through December 31, 1997, 0.18

percent;

''(iv) on and after January 1, 1998, 0.15 percent;

''(v) on January 1 of a calendar year in which the reserve

ratio of the Savings Association Insurance Fund is expected to be

less than the designated reserve ratio by determination of the

Board of Directors, such rate determined by the Board of

Directors to be appropriate to restore the reserve ratio to the

designated reserve ratio within a reasonable period of time,

after taking into consideration the expected expenses and income

of the Savings Association Insurance Fund, and the effect on

insured savings association earnings and capitalization, except

that -

''(I) from August 9, 1989, through December 31, 1994, the

rate shall be as specified in clauses (i), (ii), and (iii)

above;

''(II) the rate shall not exceed 0.325 percent; and

''(III) the increase in the rate in any one year shall not

exceed 0.075 percent; and

''(vi) sufficient to ensure that for each member in each year

the assessment shall not be less than $1,000.''

Subsec. (b)(2)(A). Pub. L. 101-508, Sec. 2002(c)(1), inserted

''or subparagraph (C)(iii) or (D)(iii) of subsection (b)(1) of this

section'' after ''subsection (c)(2) of this section'' in

introductory provisions.

Subsec. (b)(2)(A)(i). Pub. L. 101-508, Sec. 2002(c)(2), inserted

''the greater of $500 or an amount'' before ''equal to the product

of'' in introductory provisions.

Subsec. (b)(2)(A)(i)(I). Pub. L. 101-508, Sec. 2003(b)(1), (2),

struck out ''annual'' before ''assessment'' and inserted ''during

that semiannual period'' after ''member''.

Subsec. (b)(2)(A)(ii). Pub. L. 101-508, Sec. 2002(c)(2), inserted

''the greater of $500 or an amount'' before ''equal to the product

of'' in introductory provisions.

Subsec. (b)(2)(A)(ii)(I). Pub. L. 101-508, Sec. 2003(b)(1), (3),

struck out ''annual'' before ''assessment'' and inserted ''during

that semiannual period'' after ''member''.

Subsec. (d)(1)(A). Pub. L. 101-508, Sec. 2003(c), amended subpar.

(A) generally. Prior to amendment, subpar. (A) read as follows:

''By September 30 of each calendar year, the Corporation shall

prescribe and publish the aggregate amount to be credited to

insured depository institutions in the succeeding calendar year.''

1989 - Pub. L. 101-73, Sec. 201, substituted references to

insured depository institutions for references to insured banks

wherever appearing in this section and references to Director of

the Office of Thrift Supervision for references to Federal Home

Loan Bank Board wherever appearing in this section.

Subsec. (a)(1). Pub. L. 101-73, Sec. 911(c), substituted

provisions for different and increasing levels of penalties, and

provisions regarding assessment and collection of penalties and

agency hearings, for provision at end that every such bank which

failed to make or publish any such report within 10 days would be

subject to a penalty of not more than $100 for each day of such

failure recoverable by the Corporation for its use.

Subsec. (a)(2)(A). Pub. L. 101-73, Sec. 208(1)(A)-(C), (E),

inserted references to Director of Office of Thrift Supervision,

Federal Housing Finance Board, and any Federal home loan bank in

two places, substituted ''any of them'' for ''either of them'', and

substituted ''depository institution, and may furnish'' for ''State

nonmember bank (except a District bank), and may furnish''.

Pub. L. 101-73, Sec. 208(1)(D), which directed the amendment of

last sentence of subpar. (A) by inserting ''or savings

associations'' after ''banks'' could not be executed, because

''banks'' does not appear in text.

Subsec. (a)(2)(B). Pub. L. 101-73, Sec. 208(1)(F), added subpar.

(B) and struck out former subpar. (B) which read as follows: ''The

Corporation shall have access to reports of examination made by,

and reports of condition made to, the Federal Home Loan Bank Board

or any Federal Home Loan Bank, respecting any insured Federal

savings bank, and the Corporation shall have access to all

revisions of reports of condition made to either such agency. Such

agency shall promptly advise the Corporation of any revisions or

changes in respect to deposit liabilities made or required to be

made in any report of condition.''

Subsec. (a)(3). Pub. L. 101-73, Sec. 208(2)(A), substituted

''Each insured depository institution shall make to the appropriate

Federal banking agency 4 reports'' for ''Each insured State

nonmember bank (except a District bank) and each foreign bank

having an insured branch (other than a Federal branch) shall make

to the Corporation, each insured national bank, each foreign bank

having an insured branch which is a Federal branch, and each

insured District bank shall make to the Comptroller of the

Currency, each insured State member bank shall make to the Federal

Reserve bank of which it is a member, and each insured Federal

savings bank shall make to the Federal Home Loan Bank Board, four

reports''.

Pub. L. 101-73, Sec. 208(2)(B)-(D), substituted ''depository

institution, the preceding'' for ''bank, the preceding'',

''depository institution to make such'' for ''bank to make such'',

''depository institution other than the officer'' for ''bank other

than the officer'', ''insured depository institution shall furnish

to the Corporation'' for ''insured national, District and State

member bank shall furnish to the Corporation'', and ''banks or

savings associations under its jurisdiction'' for ''banks under its

jurisdiction''.

Subsec. (a)(4). Pub. L. 101-73, Sec. 208(3), which directed the

substitution of references to depository institutions for

references to banks, except where ''foreign bank'' appeared, was

executed as directed, except that the exception was made for

''foreign banks'' rather than ''foreign bank'', as the probable

intent of Congress.

Subsec. (a)(8). Pub. L. 101-73, Sec. 931(a), added par. (8).

Subsec. (b)(1). Pub. L. 101-73, Sec. 208(4), added par. (1) and

struck out former par. (1) which read as follows: ''The annual

assessment rate shall be one-twelfth of 1 per centum. Except as

provided in subsection (c)(2) of this section, the semiannual

assessment due from any insured bank for any semiannual period

shall be equal to one-half the annual assessment rate multiplied by

such bank's average assessment base for the immediately preceding

semiannual period.''

Subsec. (b)(2). Pub. L. 101-73, Sec. 208(4), added par. (2) and

struck out former par. (2) which read as follows: ''For the

purposes of this section the term 'semiannual period' means a

period beginning on January 1 of any calendar year and ending on

June 30 of the same year, or a period beginning on July 1 of any

calendar year and ending on December 31 of the same year.''

Subsec. (b)(3) to (8). Pub. L. 101-73, Sec. 208(6), substituted

references to depository institutions for references to banks

wherever appearing.

Subsec. (c)(1) to (3). Pub. L. 101-73, Sec. 208(7), substituted

''depository institution'' for ''bank'' wherever appearing.

Subsec. (d). Pub. L. 101-73, Sec. 208(5), amended subpar. (d)

generally, substituting provisions relating to computation,

applicability, definitions, etc., respecting assessment credits,

for provisions relating to transfer of net assessment income of

Corporation to capital account, pro rata credit to insured banks,

and adjustment of transferred income.

Subsecs. (e) to (g), (i). Pub. L. 101-73, Sec. 208(7),

substituted ''depository institution'' for ''bank'' wherever

appearing.

Subsec. (j)(1). Pub. L. 101-73, Sec. 208(8), struck out at end

''For purposes of this subsection, the term 'insured bank' shall

include any 'bank holding company', as that term is defined in

section 1841 of this title, which has control of any such insured

bank, and the appropriate Federal banking agency in the case of

bank holding companies shall be the Board of Governors of the

Federal Reserve System.''

Subsec. (j)(2)(A). Pub. L. 101-73, Sec. 208(9), substituted

''depository institution'' for ''bank'' wherever appearing, and

substituted ''default'' for ''failure''.

Subsec. (j)(2)(D). Pub. L. 101-73, Sec. 208(10), inserted

''unless such agency determines that an emergency exists,'' after

''banking agency shall,''.

Subsec. (j)(7)(F). Pub. L. 101-73, Sec. 208(11), added subpar.

(F).

Subsec. (j)(15). Pub. L. 101-73, Sec. 905(c), inserted at end

''The resignation, termination of employment or participation,

divestiture of control, or separation of or by an

institution-affiliated party (including a separation caused by the

closing of a depository institution) shall not affect the

jurisdiction and authority of the appropriate Federal banking

agency to issue any notice and proceed under this subsection

against any such party, if such notice is served before the end of

the 6-year period beginning on the date such party ceased to be

such a party with respect to such depository institution (whether

such date occurs before, on, or after the date of the enactment of

this sentence).''

Subsec. (j)(16). Pub. L. 101-73, Sec. 907(d), amended par. (16)

generally. Prior to amendment, par. (16) read as follows: ''Any

person who willfully violates any provision of this subsection, or

any regulation or order issued by the appropriate Federal banking

agency pursuant thereto, shall forfeit and pay a civil penalty of

not more than $10,000 per day for each day during which such

violation continues. The appropriate Federal banking agency shall

have authority to assess such a civil penalty, after giving notice

and an opportunity to the person to submit data, views, and

arguments, and after giving due consideration to the

appropriateness of the penalty with respect to the size of

financial resources and good faith of the person charged, the

gravity of the violation, and any data, views, and arguments

submitted. The agency may collect such civil penalty by agreement

with the person or by bringing an action in the appropriate United

States district court, except that in any such action, the person

against whom the penalty has been assessed shall have a right to

trial de novo.''

Subsec. (j)(17). Pub. L. 101-73, Sec. 208(12), amended par. (17)

generally. Prior to amendment, par. (17) read as follows: ''This

subsection shall not apply to a transaction subject to section 1842

or section 1828 of this title. This subsection shall not apply to

an insured Federal savings bank.''

Subsec. (j)(18). Pub. L. 101-73, Sec. 208(13), added par. (18).

Subsec. (l). Pub. L. 101-73, Sec. 208(14), added subsec. (l).

Subsecs. (m), (n). Pub. L. 101-73, Sec. 208(15), added subsecs.

(m) and (n).

1987 - Subsec. (b)(9). Pub. L. 100-86 added par. (9).

1986 - Subsec. (j)(1). Pub. L. 99-570, Sec. 1360(a), substituted

''or, in the discretion of the agency, extending for an additional

30 days'' for ''or extending for up to another thirty days'' in

first sentence, notwithstanding directory language that new wording

be substituted for ''or extending up to another thirty days'', and

amended second sentence generally. Prior to amendment, second

sentence read as follows: ''The period for disapproval may be

further extended only if the agency determines that any acquiring

party has not furnished all the information required under

paragraph (6) of this subsection or that in its judgment any

material information submitted is substantially inaccurate''.

Subsec. (j)(2). Pub. L. 99-570, Sec. 1360(b), (c), designated

existing provisions as subpar. (A) and added subpars. (B) to (D).

Subsec. (j)(15) to (16). Pub. L. 99-570, Sec. 1360(d), added par.

(15) and redesignated former pars. (15) and (16) as (16) and (17),

respectively.

1982 - Subsec. (a)(2). Pub. L. 97-320, Sec. 113(d), designated

existing provisions as subpar. (A) and added subpar. (B).

Subsec. (a)(3). Pub. L. 97-320, Sec. 113(e), inserted the

reporting requirement for each insured Federal savings bank, added

the Chairman of the Federal Home Loan Bank Board to the group

designated to decide upon which dates the reports will be made, and

struck out alternative provision that such decision would be made

by a majority of such group.

Subsec. (a)(6). Pub. L. 97-320, Sec. 113(f), inserted '', the

Federal Home Loan Bank Board,'' after ''Comptroller of the

Currency''.

Subsec. (d)(1)(4). Pub. L. 97-320, Sec. 117, added cl. (4).

Subsec. (j)(16). Pub. L. 97-320, Sec. 113(q), inserted provision

that this subsection shall not apply to an insured Federal savings

bank.

Subsec. (k). Pub. L. 97-320, Sec. 429, substituted requirement

that Federal banking agencies issue rules and regulations for

reports and public disclosure by banks of extensions of credits to

its executive officers or principal shareholders or the relative

interests of such persons for prior provisions: covering annual

reports of insured banks to Federal banking agencies containing

information respecting preceding calendar year listing names of

stockholders of record owning, controlling, or having more than a

10 per centum voting control of any class of voting securities of

the bank and also listing names of executive officers and

controlling stockholders and aggregate amount of extensions of

credit to such persons, any company controlled by such persons, and

any political or campaign committee the funds or services of which

will benefit such persons, or which is controlled by such persons;

defining an executive officer as one meant under section 375a of

this title; authorizing Federal banking agencies to issue rules and

regulations to require filed information to be included in any

required reports to be made available to the public upon request;

and requiring copies of any reports to be made publicly available

upon request.

1981 - Subsec. (a)(4). Pub. L. 97-110, Sec. 103(b)(1), inserted

''the Trust Territory of the Pacific Islands,'' after ''American

Samoa,''.

Subsec. (b)(5)(B). Pub. L. 97-110, Sec. 103(b)(2), inserted ''the

Trust Territory of the Pacific Islands,'' after ''American

Samoa,''.

1980 - Subsec. (d). Pub. L. 96-221, Sec. 308(d), designated

existing provisions as par. (1), substituted ''1980'' for ''1961''

and ''40'' for ''33 1/3'', and added par. (2).

Subsec. (i). Pub. L. 96-221, Sec. 308(a)(1)(B), substituted

''$100,000'' for ''$40,000''.

1978 - Subsec. (a)(1). Pub. L. 95-369, Sec. 6(c)(8), inserted

''and each foreign bank having an insured branch which is not a

Federal branch'' after ''(except a District bank)''.

Subsec. (a)(3). Pub. L. 95-630, Sec. 302, substituted ''the

signatures of at least two directors or trustees of the reporting

bank other than the officer making such declaration'' for ''the

signatures of at least three of the directors or trustees of the

reporting bank other than the officer making such declaration, or

by at least two if there are not more than three directors or

trustees''.

Pub. L. 95-369, Sec. 6(c)(9), inserted ''and each foreign bank

having an insured branch (other than a Federal branch)'' after

''(except a District Bank)'' and ''each foreign bank having an

insured branch which is a Federal branch'' after ''each insured

national bank''.

Subsec. (a)(4). Pub. L. 95-630, Sec. 310(a), inserted provision

that deposits which are accumulated for payment of personal loans

and are assigned or pledged to assure payment of loans at maturity

not be included in total deposits in such reports, but shall be

deducted from loans for which such deposits are assigned or pledged

to assure repayment.

Subsec. (a)(5). Pub. L. 95-630, Sec. 310(b), struck out

''deposits accumulated for the payment of personal loans,'' after

''deposit-open account,''.

Subsec. (a)(7). Pub. L. 95-369, Sec. 6(c)(10), added par. (7).

Subsec. (b)(4). Pub. L. 95-369, Sec. 6(c)(11), designated

existing provisions as subpar. (A), substituted ''Except as

provided in subparagraph (B) of this paragraph, a bank's assessment

base'' for ''A bank's assessment base'', and added subpar. (B).

Subsec. (b)(6). Pub. L. 95-630, Sec. 310(c), redesignated

subpars. (C) and (D) as (B) and (C) and struck out former subpar.

(B) which related to deposits included in reported deposit

liabilities which are accumulated for the payment of personal loans

and are assigned or pledged to assure repayment of the loans at

maturity.

Subsec. (j). Pub. L. 95-630, Sec. 602, amended subsec. (j)

generally, substituting provisions relating to the requirement that

no person shall acquire control of any insured bank unless the

appropriate Federal agency is notified 60 days prior to such

transfer and authorizing the appropriate Federal agency to approve

or disapprove such transfer for provisions relating to the

requirement that notification of a transfer of control of an

insured bank be given to the appropriate Federal agency after such

transfer.

Subsec. (j)(1). Pub. L. 95-369, Sec. 6(c)(12), designated

existing provisions as subpar. (A), substituted ''Except as

provided in subparagraph (B) of this paragraph, whenever'' for

''Whenever'', and added subpar. (B).

Subsec. (j)(2). Pub. L. 95-369, Sec. 6(c)(13), designated

existing provisions as subpar. (A), substituted ''Except as

provided in subparagraph (B) of this paragraph, whenever'' for

''Whenever'', and added subpars. (B) and (C).

Subsec. (k). Pub. L. 95-630, Sec. 901, added subsec. (k).

1974 - Subsec. (i). Pub. L. 93-495 inserted exception relating to

trust funds owned by a depositor referred to par. (2) of section

1821(a) of this title, and substituted ''$40,000'' for ''$20,000''.

1970 - Pub. L. 91-609 inserted reference to American Samoa in

subsecs. (a)(4) and (b)(5)(B), respectively.

1969 - Subsec. (i). Pub. L. 91-151 substituted $20,000 for

$15,000 in first sentence.

1966 - Subsec. (i). Pub. L. 89-695, Sec. 301(b), substituted

''$15,000'' for ''$10,000'' in first sentence.

Subsec. (j)(6). Pub. L. 89-695, Sec. 201, repealed par. (6)

definition of ''appropriate Federal banking agency'', now

incorporated in section 1813(q) of this title.

1964 - Subsec. (j). Pub. L. 88-593 added subsec. (j).

1960 - Subsec. (a). Pub. L. 86-671, Sec. 2, amended subsec. (a)

generally, and among other changes, provided for reports of

condition, the form, contents, date of making, number, and

publication of the reports of condition, declaration and

attestation of officers, penalties, access to reports, computation

of deposit liabilities, segregation and classification of deposits

and definitions. Former provisions of the subsection relating to

rate and amount of assessment, assessment base and deductions

therefrom, form and contents of certified statements, and payment

of assessments, are either covered or superseded by provisions

incorporated in subsecs. (b)(1), (3), (4), (6) including the last

paragraph, and (c)(3) of this section.

Subsec. (b). Pub. L. 86-671, Sec. 2, amended subsec. (b)

generally, and among other changes, provided for the computation of

assessments, the rate and amount, the base, additions and

deductions, records and definition. Former provisions of the

subsection relating to filing of certified statements of assessment

base and amounts due and payment thereof are incorporated in

subsec. (c)(1) of this section.

Subsec. (c). Pub. L. 86-671, Sec. 2, inserted provisions of pars.

(1) and (3), incorporated in par. (2) the provisions of former

subsec. (c) relating to exemption from payment of assessment for

semiannual period in which bank became an insured bank and amount

of first semiannual assessment due, omitted therefrom the provision

for inclusion in the assessment base of the assumed liabilities for

deposits of other banks, and required the filing of certified

statement of the assessment base or the making of a special report

of condition.

Subsec. (d). Pub. L. 86-671, Sec. 3, substituted ''December 31,

1961'' and ''33 1/3'' for ''December 31, 1960'' and ''40'',

respectively.

Subsec. (f). Pub. L. 86-671, Sec. 3, substituted ''fails to make

any report of condition under subsection (a) of this section or to

file'' for ''fails to file'' and inserted ''make such report or''

before ''file such statement''.

Subsec. (g). Pub. L. 86-671, Sec. 3, substituted ''made any such

report of condition under subsection (a) of this section or filed''

for ''filed'' and ''to make any such report or file'' for ''to

file'' in first sentence.

Subsec. (h). Pub. L. 86-671, Sec. 3, inserted ''to make any

report of condition under subsection (a) of this section or''

before ''to file''.

Subsec. (i). Pub. L. 86-671, Sec. 3, substituted ''in its trust

department or held or deposited in any other department of the

fiduciary bank'' for ''in its trust or deposited in any other

department or in another bank'' in first sentence and deleted

proviso respecting deposit liability of insured bank in which trust

funds are deposited rather than deposit liability of depositing

fiduciary bank from second sentence.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-569, title XII, Sec. 1231(b), Dec. 27, 2000, 114

Stat. 3037, provided that: ''The amendments made by subsection (a)

(amending this section) shall be deemed to have the same effective

date as section 2707 of the Deposit Insurance Funds Act of 1996

(Public Law 104-208; 110 Stat. 3009-496).''

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 2703(b) of Pub. L. 104-208 applicable with

respect to semiannual periods which begin after Dec. 31, 1996, see

section 2703(c)(1) of Pub. L. 104-208, set out as an Effective and

Termination Dates of 1996 Amendment note under section 1441 of this

title.

Amendment by section 2704(d)(6)(B), (14)(G) 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 1993 AMENDMENT

Section 8(h) of Pub. L. 103-204 provided that the amendment made

by that section is effective on the effective date of the amendment

made by section 302(a) of Pub. L. 102-242. See Effective Date of

1991 Amendment note below.

Section 38(a) of Pub. L. 103-204 provided that the amendment made

by that section is effective Dec. 19, 1993.

EFFECTIVE DATE OF 1992 AMENDMENTS

Section 303(b)(7) of Pub. L. 102-558 provided that the amendment

made by that section is effective on the effective date of the

amendment made by section 302(a) of Pub. L. 102-242. See Effective

Date of 1991 Amendment note below.

Section 303(b)(8) of Pub. L. 102-558 provided that the amendment

made by that section is effective on the effective date of the

amendment made by section 302(e)(4) of Pub. L. 102-242. See

Effective Date of 1991 Amendment note below.

Amendment by section 303(a), (b)(1), (3), (6)(A) of Pub. L.

102-558 deemed to have become effective Mar. 1, 1992, see section

304 of Pub. L. 102-558, set out as a note under section 2062 of

Title 50, Appendix, War and National Defense.

Sections 1603(a)(3) and 1605(a)(6) of Pub. L. 102-550, which

provided effective date provisions for the amendments made by those

sections, were repealed, effective Oct. 28, 1992, by section 305 of

Pub. L. 102-558, set out as a Repeal of Duplicative Provisions note

under section 1815 of this title.

Section 1605(b)(2) of Pub. L. 102-550 provided that the amendment

made by that section is effective on the effective date of the

amendment made by section 302(b) of Pub. L. 102-242. See Effective

Date of 1991 Amendment note below.

Amendment by sections 1603(a)(1), 1604(b)(1), (3), 1605(a)(2),

(5)(A), (b)(1), 1606(i)(1) of 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, except that

where amendment is to any provision of law added or amended by Pub.

L. 102-242 effective after Dec. 19, 1992, then amendment by Pub. L.

102-550 effective on effective date of amendment by Pub. L.

102-242, see section 1609 of Pub. L. 102-550, set out as a note

under section 191 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Section 302(g) of Pub. L. 102-242 provided that: ''The amendments

made by this section (amending this section and sections 1815,

1818, and 1820 of this title) shall become effective on the earlier

of -

''(1) 180 days after the date on which final regulations

promulgated in accordance with subsection (c) (set out below)

become effective (Final regulations became effective Oct. 1,

1993. See 58 F.R. 34357.); or

''(2) January 1, 1994.''

Amendment by section 311(a)(2), (b)(3) of Pub. L. 102-242

effective at end of 2-year period beginning Dec. 19, 1991, but not

applicable to any time deposit which was made before Dec. 19, 1991,

and matures after end of 2-year period beginning on Dec. 19, 1991,

with rollovers and renewals treated as new deposits, see section

311(c)(1), (2) of Pub. L. 102-242, set out as a note under section

1821 of this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 907(d) 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.

Amendment by section 911(c) of Pub. L. 101-73 applicable with

respect to reports filed or required to be filed after Aug. 9,

1989, see section 911(i) of Pub. L. 101-73, set out as a note under

section 161 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1364(f) of Pub. L. 99-570 provided that: ''The amendments

made by sections 1360 and 1361 (amending this section and section

1730 of this title) shall apply with respect to notices of proposed

acquisitions filed after the date of the enactment of this Act

(Oct. 27, 1986).''

EFFECTIVE DATE OF 1982 AMENDMENT

Section 430 of Pub. L. 97-320 provided that: ''The provision of

law amended by section 428(b) (amending section 1972 of this title)

and section 429 (amending this section) shall remain in effect

until the regulations referred to in such amendments become

effective.''

EFFECTIVE DATE OF 1980 AMENDMENT

Section 308(e) of Pub. L. 96-221 provided that: ''The amendments

made by this section (amending this section and sections 1724,

1728, 1787, 1813, and 1821 of this title) shall take effect on the

date of enactment of this Act (Mar. 31, 1980).''

Amendment by section 308(a)(1)(B) of Pub. L. 96-221 not

applicable to any claim arising out of the closing of a bank prior

to the effective date of section 308 of Pub. L. 96-221, Mar. 31,

1980, see section 308(a)(2) of Pub. L. 96-221, set out as a note

under section 1813 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-630 effective upon expiration of 120 days

after Nov. 10, 1978, see section 2101 of Pub. L. 95-630, set out as

an Effective Date note under section 375b of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

For effective date of amendment by section 101(a)(2) of Pub. L.

93-495, see section 101(g) of Pub. L. 93-495, set out as a note

under section 1813 of this title.

For effective date of amendment by section 102(a)(2) of Pub. L.

93-495, see section 102(b), (c) of Pub. L. 93-495, set out as a

note under section 1813 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

For effective date of amendment by Pub. L. 91-151, see section

7(b) of Pub. L. 91-151, set out as a note under section 1813 of

this title.

EFFECTIVE DATE OF 1966 AMENDMENT

For effective date of amendment by section 301(b) of Pub. L.

89-695, see section 301(e) of Pub. L. 89-695, set out as a note

under section 1813 of this title.

EXPIRATION OF 1966 AMENDMENT

Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84 Stat. 1811,

repealed section 401 of Pub. L. 89-695 which had provided that:

''The provisions of titles I and II of this Act (amending this

section and sections 1464, 1730, 1813, 1818 to 1820 of this title,

repealing section 77 of this title, and enacting provisions set out

as notes under sections 1464, 1730, and 1813 of this title) and any

provisions of law enacted by said titles shall be effective only

during the period ending at the close of June 30, 1972. Effective

upon the expiration of such period, each provision of law amended

by either of such titles is further amended to read as it did

immediately prior to the enactment of this Act (Oct. 16, 1966) and

each provision of law repealed by either of such titles is

reenacted.''

EFFECTIVE DATE OF 1960 AMENDMENT

Section 7 of Pub. L. 86-671 provided that: ''The amendments made

by this Act (amending this section and sections 161, 1813, 1820 and

repealing section 162 of this title) shall take effect on January

1, 1961, except that the certified statements covering the

semiannual period ending December 31, 1960, and the determination

and payment of assessments (for the semiannual period ending June

30, 1961) required to be certified in such statements, shall be

made as if such amendments were not in effect.''

SHORT TITLE OF 1978 AMENDMENT

For short title of title VI of Pub. L. 95-630 as the ''Change in

Bank Control Act of 1978'', see section 601 of Pub. L. 95-630, set

out as a note under section 1811 of this title.

REGULATIONS

Section 302(c) of Pub. L. 102-242 provided that: ''To implement

the risk-based assessment system required under section 7(b) of the

Federal Deposit Insurance Act (12 U.S.C. 1817(b)) (as amended by

subsection (a)), the Federal Deposit Insurance Corporation shall -

''(1) provide notice of proposed regulations in the Federal

Register, not later than December 31, 1992, with an opportunity

for comment on the proposal of not less than 120 days; and

''(2) promulgate final regulations not later than July 1,

1993.''

Section 302(f) of Pub. L. 102-242 provided that: ''To carry out

the amendments made by this section (amending this section and

sections 1815, 1818, and 1820 of this title), the Corporation may

promulgate regulations governing the transition from the assessment

system in effect on the date of enactment of this Act (Dec. 19,

1991) to the assessment system required under the amendments made

by this section.''

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-MISC5-

SPECIAL ASSESSMENT TO CAPITALIZE SAIF

Section 2702 of Pub. L. 104-208 provided that:

''(a) In General. - Except as provided in subsection (f), the

Board of Directors of the Federal Deposit Insurance Corporation

shall impose a special assessment on the SAIF-assessable deposits

of each insured depository institution in accordance with

assessment regulations of the Corporation at a rate applicable to

all such institutions that the Board of Directors, in its sole

discretion, determines (after taking into account the adjustments

described in subsections (g), (h), and (j)) will cause the Savings

Association Insurance Fund to achieve the designated reserve ratio

on the first business day of the 1st month beginning after the date

of the enactment of this Act (Sept. 30, 1996).

''(b) Factors To Be Considered. - In carrying out subsection (a),

the Board of Directors shall base its determination on -

''(1) the monthly Savings Association Insurance Fund balance

most recently calculated;

''(2) data on insured deposits reported in the most recent

reports of condition filed not later than 70 days before the date

of enactment of this Act (Sept. 30, 1996) by insured depository

institutions; and

''(3) any other factors that the Board of Directors deems

appropriate.

''(c) Date of Determination. - For purposes of subsection (a),

the amount of the SAIF-assessable deposits of an insured depository

institution shall be determined as of March 31, 1995.

''(d) Date Payment Due. - Except as provided in subsection (g),

the special assessment imposed under this section shall be -

''(1) due on the first business day of the 1st month beginning

after the date of the enactment of this Act (Sept. 30, 1996); and

''(2) paid to the Corporation on the later of -

''(A) the first business day of the 1st month beginning after

such date of enactment; or

''(B) such other date as the Corporation shall prescribe, but

not later than 60 days after the date of enactment of this Act.

''(e) Assessment Deposited in SAIF. - Notwithstanding any other

provision of law, the proceeds of the special assessment imposed

under this section shall be deposited in the Savings Association

Insurance Fund.

''(f) Exemptions for Certain Institutions. -

''(1) Exemption for weak institutions. - The Board of Directors

may, by order, in its sole discretion, exempt any insured

depository institution that the Board of Directors determines to

be weak, from paying the special assessment imposed under this

section if the Board of Directors determines that the exemption

would reduce risk to the Savings Association Insurance Fund.

''(2) Guidelines required. - Not later than 30 days after the

date of enactment of this Act (Sept. 30, 1996), the Board of

Directors shall prescribe guidelines setting forth the criteria

that the Board of Directors will use in exempting institutions

under paragraph (1). Such guidelines shall be published in the

Federal Register.

''(3) Exemption for certain newly chartered and other defined

institutions. -

''(A) In general. - In addition to the institutions exempted

from paying the special assessment under paragraph (1), the

Board of Directors shall exempt any insured depository

institution from payment of the special assessment if the

institution -

''(i) was in existence on October 1, 1995, and held no

SAIF-assessable deposits before January 1, 1993;

''(ii) is a Federal savings bank which -

''(I) was established de novo in April 1994 in order to acquire

the deposits of a savings association which was in default

or in danger of default; and

''(II) received minority interim capital assistance from the

Resolution Trust Corporation under section 21A(w) of the

Federal Home Loan Bank Act (12 U.S.C. 1441a(w)) in

connection with the acquisition of any such savings

association; or

''(iii) is a savings association, the deposits of which are

insured by the Savings Association Insurance Fund, which -

''(I) before January 1, 1987, was chartered as a Federal savings

bank insured by the Federal Savings and Loan Insurance

Corporation for the purpose of acquiring all or

substantially all of the assets and assuming all or

substantially all of the deposit liabilities of a national

bank in a transaction consummated after July 1, 1986; and

''(II) as of the date of that transaction, had assets of less than

$150,000,000.

''(B) Definition. - For purposes of this paragraph, an

institution shall be deemed to have held SAIF-assessable

deposits before January 1, 1993, if -

''(i) it directly held SAIF-assessable deposits before that

date; or

''(ii) it succeeded to, acquired, purchased, or otherwise

holds any SAIF-assessable deposits as of the date of

enactment of this Act (Sept. 30, 1996) that were

SAIF-assessable deposits before January 1, 1993.

''(4) Exempt institutions required to pay assessments at former

rates. -

''(A) Payments to saif and dif. - Any insured depository

institution that the Board of Directors exempts under this

subsection from paying the special assessment imposed under

this section shall pay semiannual assessments -

''(i) during calendar years 1996, 1997, and 1998, into the

Savings Association Insurance Fund, based on SAIF-assessable

deposits of that institution, at assessment rates calculated

under the schedule in effect for Savings Association

Insurance Fund members on June 30, 1995; and

''(ii) during calendar year 1999 -

''(I) into the Deposit Insurance Fund, based on SAIF-assessable

deposits of that institution as of December 31, 1998, at

assessment rates calculated under the schedule in effect

for Savings Association Insurance Fund members on June 30,

1995; or

''(II) in accordance with clause (i), if the Bank Insurance Fund

and the Savings Association Insurance Fund are not merged

into the Deposit Insurance Fund.

''(B) Optional pro rata payment of special assessment. - This

paragraph shall not apply with respect to any insured

depository institution (or successor insured depository

institution) that has paid, during any calendar year from 1997

through 1999, upon such terms as the Corporation may announce,

an amount equal to the product of -

''(i) 16.7 percent of the special assessment that the

institution would have been required to pay under subsection

(a), if the Board of Directors had not exempted the

institution; and

''(ii) the number of full semiannual periods remaining

between the date of the payment and December 31, 1999.

''(g) Special Election for Certain Institutions Facing Hardship

as a Result of the Special Assessment. -

''(1) Election authorized. - If -

''(A) an insured depository institution, or any depository

institution holding company which, directly or indirectly,

controls such institution, is subject to terms or covenants in

any debt obligation or preferred stock outstanding on September

13, 1995; and

''(B) the payment of the special assessment under subsection

(a) would pose a significant risk of causing such depository

institution or holding company to default or violate any such

term or covenant,

the depository institution may elect, with the approval of the

Corporation, to pay such special assessment in accordance with

paragraphs (2) and (3) in lieu of paying such assessment in the

manner required under subsection (a).

''(2) 1st assessment. - An insured depository institution which

makes an election under paragraph (1) shall pay an assessment in

an amount equal to 50 percent of the amount of the special

assessment that would otherwise apply under subsection (a), by

the date on which such special assessment is payable under

subsection (d).

''(3) 2d assessment. - An insured depository institution which

makes an election under paragraph (1) shall pay a 2d assessment,

by the date established by the Board of Directors in accordance

with paragraph (4), in an amount equal to the product of 51

percent of the rate determined by the Board of Directors under

subsection (a) for determining the amount of the special

assessment and the SAIF-assessable deposits of the institution on

March 31, 1996, or such other date in calendar year 1996 as the

Board of Directors determines to be appropriate.

''(4) Due date of 2d assessment. - The date established by the

Board of Directors for the payment of the assessment under

paragraph (3) by a depository institution shall be the earliest

practicable date which the Board of Directors determines to be

appropriate, which is at least 15 days after the date used by the

Board of Directors under paragraph (3).

''(5) Supplemental special assessment. - An insured depository

institution which makes an election under paragraph (1) shall pay

a supplemental special assessment, at the same time the payment

under paragraph (3) is made, in an amount equal to the product of

-

''(A) 50 percent of the rate determined by the Board of

Directors under subsection (a) for determining the amount of

the special assessment; and

''(B) 95 percent of the amount by which the SAIF-assessable

deposits used by the Board of Directors for determining the

amount of the 1st assessment under paragraph (2) exceeds, if

any, the SAIF-assessable deposits used by the Board for

determining the amount of the 2d assessment under paragraph

(3).

''(h) Adjustment of Special Assessment for Certain Bank Insurance

Fund Member Banks. -

''(1) In general. - For purposes of computing the special

assessment imposed under this section with respect to a Bank

Insurance Fund member bank, the amount of any deposits of any

insured depository institution which section 5(d)(3) of the

Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) treats as

insured by the Savings Association Insurance Fund shall be

reduced by 20 percent -

''(A) if the adjusted attributable deposit amount of the Bank

Insurance Fund member bank is less than 50 percent of the total

domestic deposits of that member bank as of June 30, 1995; or

''(B) if, as of June 30, 1995, the Bank Insurance Fund member

-

''(i) had an adjusted attributable deposit amount equal to

less than 75 percent of the total assessable deposits of that

member bank;

''(ii) had total assessable deposits greater than

$5,000,000,000; and

''(iii) was owned or controlled by a bank holding company

that owned or controlled insured depository institutions

having an aggregate amount of deposits insured or treated as

insured by the Bank Insurance Fund greater than the aggregate

amount of deposits insured or treated as insured by the

Savings Association Insurance Fund.

''(2) Adjusted attributable deposit amount. - For purposes of

this subsection, the 'adjusted attributable deposit amount' shall

be determined in accordance with section 5(d)(3)(C) of the

Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)(C)).

''(i) Adjustment to the Adjusted Attributable Deposit Amount for

Certain Bank Insurance Fund Member Banks. - (Amended section

1815(d)(3) of this title.)

''(j) Adjustment of Special Assessment for Certain Savings

Associations. -

''(1) Special assessment reduction. - For purposes of computing

the special assessment imposed under this section, in the case of

any converted association, the amount of any deposits of such

association which were insured by the Savings Association

Insurance Fund as of March 31, 1995, shall be reduced by 20

percent.

''(2) Converted association. - For purposes of this subsection,

the term 'converted association' means -

''(A) any Federal savings association -

''(i) that is a member of the Savings Association Insurance

Fund and that has deposits subject to assessment by that fund

which did not exceed $4,000,000,000, as of March 31, 1995;

and

''(ii) that had been, or is a successor by merger,

acquisition, or otherwise to an institution that had been, a

State savings bank, the deposits of which were insured by the

Federal Deposit Insurance Corporation before August 9, 1989,

that converted to a Federal savings association pursuant to

section 5(i) of the Home Owners' Loan Act (12 U.S.C. 1464(i))

before January 1, 1985;

''(B) a State depository institution that is a member of the

Savings Association Insurance Fund that had been a State

savings bank before October 15, 1982, and was a Federal savings

association on August 9, 1989;

''(C) an insured bank that -

''(i) was established de novo in order to acquire the

deposits of a savings association in default or in danger of

default;

''(ii) did not open for business before acquiring the

deposits of such savings association; and

''(iii) was a Savings Association Insurance Fund member

before the date of enactment of this Act (Sept. 30, 1996);

and

''(D) an insured bank that -

''(i) resulted from a savings association before December

19, 1991, in accordance with section 5(d)(2)(G) of the

Federal Deposit Insurance Act (12 U.S.C. 1815(d)(2)(G)); and

''(ii) had an increase in its capital in conjunction with

the conversion in an amount equal to more than 75 percent of

the capital of the institution on the day before the date of

the conversion.''

SMALL BUSINESS AND SMALL FARM LOAN INFORMATION

Section 122 of Pub. L. 102-242, as amended by Pub. L. 102-550,

title XVI, Sec. 1603(c), Oct. 28, 1992, 106 Stat. 4079, provided

that:

''(a) In General. - Before the end of the 180-day period

beginning on the date of the enactment of this Act (Dec. 19, 1991),

the appropriate Federal banking agency shall prescribe regulations

requiring insured depository institutions to annually submit

information on small businesses and small farm lending in their

reports of condition.

''(b) Credit Availability. - The regulations prescribed under

subsection (a) shall require insured depository institutions to

submit such information as the agency may need to assess the

availability of credit to small businesses and small farms.

''(c) Contents. - The information required under subsection (a)

may include information regarding the following:

''(1) The total number and aggregate dollar amount of

commercial loans and commercial mortgage loans to small

businesses.

''(2) Charge-offs, interest, and interest fee income on

commercial loans and commercial mortgage loans to small

businesses.

''(3) Agricultural loans to small farms.''

CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED,

MODIFIED, OR AFFECTED

Nothing contained in section 201 of Pub. L. 89-695, which amended

this section, to be construed as repealing, modifying, or affecting

section 1829 of this title, see section 206 of Pub. L. 89-695, set

out as a note under section 1813 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 375a, 461, 1441, 1441b,

1790a, 1813, 1815, 1818, 1821, 1821a, 1824, 1831i, 1834, 1834a,

1841 of this title; title 7 section 6f; title 15 sections 78o-5,

78q.

-CITE-

12 USC Sec. 1818 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1818. Termination of status as insured depository institution

-STATUTE-

(a) Termination of insurance

(1) Voluntary termination

Any insured depository institution which is not -

(A) a national member bank;

(B) a State member bank;

(C) a Federal branch;

(D) a Federal savings association; or

(E) an insured branch which is required to be insured under

subsection (a) or (b) (FOOTNOTE 1) of section 3104 of this

title,

(FOOTNOTE 1) See References in Text note below.

may terminate such depository institution's status as an insured

depository institution if such insured institution provides

written notice to the Corporation of the institution's intent to

terminate such status not less than 90 days before the effective

date of such termination.

(2) Involuntary termination

(A) Notice to primary regulator

If the Board of Directors determines that -

(i) an insured depository institution or the directors or

trustees of an insured depository institution have engaged or

are engaging in unsafe or unsound practices in conducting the

business of the depository institution;

(ii) an insured depository institution is in an unsafe or

unsound condition to continue operations as an insured

institution; or

(iii) an insured depository institution or the directors or

trustees of the insured institution have violated any

applicable law, regulation, order, condition imposed in

writing by the Corporation in connection with the approval of

any application or other request by the insured depository

institution, or written agreement entered into between the

insured depository institution and the Corporation,

the Board of Directors shall notify the appropriate Federal

banking agency with respect to such institution (if other than

the Corporation) or the State banking supervisor of such

institution (if the Corporation is the appropriate Federal

banking agency) of the Board's determination and the facts and

circumstances on which such determination is based for the

purpose of securing the correction of such practice, condition,

or violation. Such notice shall be given to the appropriate

Federal banking agency not less than 30 days before the notice

required by subparagraph (B), except that this period for

notice to the appropriate Federal banking agency may be reduced

or eliminated with the agreement of such agency.

(B) Notice of intention to terminate insurance

If, after giving the notice required under subparagraph (A)

with respect to an insured depository institution, the Board of

Directors determines that any unsafe or unsound practice or

condition or any violation specified in such notice requires

the termination of the insured status of the insured depository

institution, the Board shall -

(i) serve written notice to the insured depository

institution of the Board's intention to terminate the insured

status of the institution;

(ii) provide the insured depository institution with a

statement of the charges on the basis of which the

determination to terminate such institution's insured status

was made (or a copy of the notice under subparagraph (A));

and

(iii) notify the insured depository institution of the date

(not less than 30 days after notice under this subparagraph)

and place for a hearing before the Board of Directors (or any

person designated by the Board) with respect to the

termination of the institution's insured status.

(3) Hearing; termination

If, on the basis of the evidence presented at a hearing before

the Board of Directors (or any person designated by the Board for

such purpose), in which all issues shall be determined on the

record pursuant to section 554 of title 5 and the written

findings of the Board of Directors (or such person) with respect

to such evidence (which shall be conclusive), the Board of

Directors finds that any unsafe or unsound practice or condition

or any violation specified in the notice to an insured depository

institution under paragraph (2)(B) or subsection (w) of this

section has been established, the Board of Directors may issue an

order terminating the insured status of such depository

institution effective as of a date subsequent to such finding.

(4) Appearance; consent to termination

Unless the depository institution shall appear at the hearing

by a duly authorized representative, it shall be deemed to have

consented to the termination of its status as an insured

depository institution and termination of such status thereupon

may be ordered.

(5) Judicial review

Any insured depository institution whose insured status has

been terminated by order of the Board of Directors under this

subsection shall have the right of judicial review of such order

only to the same extent as provided for the review of orders

under subsection (h) of this section.

(6) Publication of notice of termination

The Corporation may publish notice of such termination and the

depository institution shall give notice of such termination to

each of its depositors at his last address of record on the books

of the depository institution, in such manner and at such time as

the Board of Directors may find to be necessary and may order for

the protection of depositors.

(7) Temporary insurance of deposits insured as of termination

After the termination of the insured status of any depository

institution under the provisions of this subsection, the insured

deposits of each depositor in the depository institution on the

date of such termination, less all subsequent withdrawals from

any deposits of such depositor, shall continue for a period of at

least 6 months or up to 2 years, within the discretion of the

Board of Directors, to be insured, and the depository institution

shall continue to pay to the Corporation assessments as in the

case of an insured depository institution during such period. No

additions to any such deposits and no new deposits in such

depository institution made after the date of such termination

shall be insured by the Corporation, and the depository

institution shall not advertise or hold itself out as having

insured deposits unless in the same connection it shall also

state with equal prominence that such additions to deposits and

new deposits made after such date are not so insured. Such

depository institution shall, in all other respects, be subject

to the duties and obligations of an insured depository

institution for the period referred to in the 1st sentence from

the date of such termination, and in the event that such

depository institution shall be closed on account of inability to

meet the demands of its depositors within such period, the

Corporation shall have the same powers and rights with respect to

such depository institution as in case of an insured depository

institution.

(8) Temporary suspension of insurance

(A) In general

If the Board of Directors initiates a termination proceeding

under paragraph (2), and the Board of Directors, after

consultation with the appropriate Federal banking agency, finds

that an insured depository institution (other than a savings

association to which subparagraph (B) applies) has no tangible

capital under the capital guidelines or regulations of the

appropriate Federal banking agency, the Corporation may issue a

temporary order suspending deposit insurance on all deposits

received by the institution.

(B) Special rule for certain savings institutions

(i) Certain goodwill included in tangible capital

In determining the tangible capital of a savings

association for purposes of this paragraph, the Board of

Directors shall include goodwill to the extent it is

considered a component of capital under section 1464(t) of

this title. Any savings association which would be subject

to a suspension order under subparagraph (A) but for the

operation of this subparagraph, shall be considered by the

Corporation to be a ''special supervisory association''.

(ii) Suspension order

The Corporation may issue a temporary order suspending

deposit insurance on all deposits received by a special

supervisory association whenever the Board of Directors

determines that -

(I) the capital of such association, as computed

utilizing applicable accounting standards, has suffered a

material decline;

(II) that such association (or its directors or officers)

is engaging in an unsafe or unsound practice in conducting

the business of the association;

(III) that such association is in an unsafe or unsound

condition to continue operating as an insured association;

or

(IV) that such association (or its directors or officers)

has violated any applicable law, rule, regulation, or

order, or any condition imposed in writing by a Federal

banking agency, or any written agreement including a

capital improvement plan entered into with any Federal

banking agency, or that the association has failed to enter

into a capital improvement plan which is acceptable to the

Corporation within the time period set forth in section

1464(t) of this title.

Nothing in this paragraph limits the right of the Corporation

or the Director of the Office of Thrift Supervision to

enforce a contractual provision which authorizes the

Corporation or the Director of the Office of Thrift

Supervision, as a successor to the Federal Savings and Loan

Insurance Corporation or the Federal Home Loan Bank Board, to

require a savings association to write down or amortize

goodwill at a faster rate than otherwise required under this

chapter or under applicable accounting standards.

(C) Effective period of temporary order

Any order issued under subparagraph (A) shall become

effective not earlier than 10 days from the date of service

upon the institution and, unless set aside, limited, or

suspended by a court in proceedings authorized hereunder, such

temporary order shall remain effective and enforceable until an

order of the Board under paragraph (3) becomes final or until

the Corporation dismisses the proceedings under paragraph (3).

(D) Judicial review

Before the close of the 10-day period beginning on the date

any temporary order has been served upon an insured depository

institution under subparagraph (A), such institution may apply

to the United States District Court for the District of

Columbia, or the United States district court for the judicial

district in which the home office of the institution is

located, for an injunction setting aside, limiting, or

suspending the enforcement, operation, or effectiveness of such

order, and such court shall have jurisdiction to issue such

injunction.

(E) Continuation of insurance for prior deposits

The insured deposits of each depositor in such depository

institution on the effective date of the order issued under

this paragraph, minus all subsequent withdrawals from any

deposits of such depositor, shall continue to be insured,

subject to the administrative proceedings as provided in this

chapter.

(F) Publication of order

The depository institution shall give notice of such order to

each of its depositors in such manner and at such times as the

Board of Directors may find to be necessary and may order for

the protection of depositors.

(G) Notice by Corporation

If the Corporation determines that the depository institution

has not substantially complied with the notice to depositors

required by the Board of Directors, the Corporation may provide

such notice in such manner as the Board of Directors may find

to be necessary and appropriate.

(H) Lack of notice

Notwithstanding subparagraph (A), any deposit made after the

effective date of a suspension order issued under this

paragraph shall remain insured to the extent that the depositor

establishes that -

(i) such deposit consists of additions made by automatic

deposit the depositor was unable to prevent; or

(ii) such depositor did not have actual knowledge of the

suspension of insurance.

(9) Final decisions to terminate insurance

Any decision by the Board of Directors to -

(A) issue a temporary order terminating deposit insurance; or

(B) issue a final order terminating deposit insurance (other

than under subsection (p) or (q) of this section);

shall be made by the Board of Directors and may not be delegated.

(10) Low- to moderate-income housing lender

In making any determination regarding the termination of

insurance of a solvent savings association, the Corporation may

consider the extent of the association's low- to moderate-income

housing loans.

(b) Cease-and-desist proceedings

(1) If, in the opinion of the appropriate Federal banking agency,

any insured depository institution, depository institution which

has insured deposits, or any institution-affiliated party is

engaging or has engaged, or the agency has reasonable cause to

believe that the depository institution or any

institution-affiliated party is about to engage, in an unsafe or

unsound practice in conducting the business of such depository

institution, or is violating or has violated, or the agency has

reasonable cause to believe that the depository institution or any

institution-affiliated party is about to violate, a law, rule, or

regulation, or any condition imposed in writing by the agency in

connection with the granting of any application or other request by

the depository institution or any written agreement entered into

with the agency, the agency may issue and serve upon the depository

institution or such party a notice of charges in respect thereof.

The notice shall contain a statement of the facts constituting the

alleged violation or violations or the unsafe or unsound practice

or practices, and shall fix a time and place at which a hearing

will be held to determine whether an order to cease and desist

therefrom should issue against the depository institution or the

institution-affiliated party. Such hearing shall be fixed for a

date not earlier than thirty days nor later than sixty days after

service of such notice unless an earlier or a later date is set by

the agency at the request of any party so served. Unless the party

or parties so served shall appear at the hearing personally or by a

duly authorized representative, they shall be deemed to have

consented to the issuance of the cease-and-desist order. In the

event of such consent, or if upon the record made at any such

hearing, the agency shall find that any violation or unsafe or

unsound practice specified in the notice of charges has been

established, the agency may issue and serve upon the depository

institution or the institution-affiliated party an order to cease

and desist from any such violation or practice. Such order may, by

provisions which may be mandatory or otherwise, require the

depository institution or its institution-affiliated parties to

cease and desist from the same, and, further, to take affirmative

action to correct the conditions resulting from any such violation

or practice.

(2) A cease-and-desist order shall become effective at the

expiration of thirty days after the service of such order upon the

depository institution or other person concerned (except in the

case of a cease-and-desist order issued upon consent, which shall

become effective at the time specified therein), and shall remain

effective and enforceable as provided therein, except to such

extent as it is stayed, modified, terminated, or set aside by

action of the agency or a reviewing court.

(3) This subsection and subsections (c) through (s) and

subsection (u) of this section shall apply to any bank holding

company, and to any subsidiary (other than a bank) of a bank

holding company, as those terms are defined in the Bank Holding

Company Act of 1956 (12 U.S.C. 1841 et seq.), and to any

organization organized and operated under section 25(a) (FOOTNOTE

2) of the Federal Reserve Act (12 U.S.C. 611 et seq.) or operating

under section 25 of the Federal Reserve Act (12 U.S.C. 601 et

seq.), in the same manner as they apply to a State member insured

bank. Nothing in this subsection or in subsection (c) of this

section shall authorize any Federal banking agency, other than the

Board of Governors of the Federal Reserve System, to issue a notice

of charges or cease-and-desist order against a bank holding company

or any subsidiary thereof (other than a bank or subsidiary of that

bank).

(FOOTNOTE 2) See References in Text note below.

(4) This subsection and subsections (c) through (s) and

subsection (u) of this section shall apply to any foreign bank or

company to which subsection (a) of section 3106 of this title

applies and to any subsidiary (other than a bank) of any such

foreign bank or company in the same manner as they apply to a bank

holding company and any subsidiary thereof (other than a bank)

under paragraph (3) of this subsection. For the purposes of this

paragraph, the term ''subsidiary'' shall have the meaning assigned

to it in section 2 of the Bank Holding Company Act of 1956 (12

U.S.C. 1841).

(5) This section shall apply, in the same manner as it applies to

any insured depository institution for which the appropriate

Federal banking agency is the Comptroller of the Currency, to any

national banking association chartered by the Comptroller of the

Currency, including an uninsured association.

(6) Affirmative action to correct conditions resulting from

violations or practices. - The authority to issue an order under

this subsection and subsection (c) of this section which requires

an insured depository institution or any institution-affiliated

party to take affirmative action to correct or remedy any

conditions resulting from any violation or practice with respect to

which such order is issued includes the authority to require such

depository institution or such party to -

(A) make restitution or provide reimbursement, indemnification,

or guarantee against loss if -

(i) such depository institution or such party was unjustly

enriched in connection with such violation or practice; or

(ii) the violation or practice involved a reckless disregard

for the law or any applicable regulations or prior order of the

appropriate Federal banking agency;

(B) restrict the growth of the institution;

(C) dispose of any loan or asset involved;

(D) rescind agreements or contracts; and

(E) employ qualified officers or employees (who may be subject

to approval by the appropriate Federal banking agency at the

direction of such agency); and

(F) take such other action as the banking agency determines to

be appropriate.

(7) Authority to limit activities. - The authority to issue an

order under this subsection or subsection (c) of this section

includes the authority to place limitations on the activities or

functions of an insured depository institution or any

institution-affiliated party.

(8) Unsatisfactory asset quality, management, earnings, or

liquidity as unsafe or unsound practice. - If an insured depository

institution receives, in its most recent report of examination, a

less-than-satisfactory rating for asset quality, management,

earnings, or liquidity, the appropriate Federal banking agency may

(if the deficiency is not corrected) deem the institution to be

engaging in an unsafe or unsound practice for purposes of this

subsection.

(9) Expansion of authority to savings and loan affiliates and

entities. - Subsections (a) through (s) of this section and

subsection (u) of this section shall apply to any savings and loan

holding company and to any subsidiary (other than a bank or

subsidiary of that bank) of a savings and loan holding company,,

(FOOTNOTE 3) whether wholly or partly owned, in the same manner as

such subsections apply to a savings association.

(FOOTNOTE 3) So in original.

(10) Standard for certain orders. - No authority under this

subsection or subsection (c) of this section to prohibit any

institution-affiliated party from withdrawing, transferring,

removing, dissipating, or disposing of any funds, assets, or other

property may be exercised unless the appropriate Federal banking

agency meets the standards of Rule 65 of the Federal Rules of Civil

Procedure, without regard to the requirement of such rule that the

applicant show that the injury, loss, or damage is irreparable and

immediate.

(c) Temporary cease-and-desist orders

(1) Whenever the appropriate Federal banking agency shall

determine that the violation or threatened violation or the unsafe

or unsound practice or practices, specified in the notice of

charges served upon the depository institution or any

institution-affiliated party pursuant to paragraph (1) of

subsection (b) of this section, or the continuation thereof, is

likely to cause insolvency or significant dissipation of assets or

earnings of the depository institution, or is likely to weaken the

condition of the depository institution or otherwise prejudice the

interests of its depositors prior to the completion of the

proceedings conducted pursuant to paragraph (1) of subsection (b)

of this section, the agency may issue a temporary order requiring

the depository institution or such party to cease and desist from

any such violation or practice and to take affirmative action to

prevent or remedy such insolvency, dissipation, condition, or

prejudice pending completion of such proceedings. Such order may

include any requirement authorized under subsection (b)(6) of this

section. Such order shall become effective upon service upon the

depository institution or such institution-affiliated party and,

unless set aside, limited, or suspended by a court in proceedings

authorized by paragraph (2) of this subsection, shall remain

effective and enforceable pending the completion of the

administrative proceedings pursuant to such notice and until such

time as the agency shall dismiss the charges specified in such

notice, or if a cease-and-desist order is issued against the

depository institution or such party, until the effective date of

such order.

(2) Within ten days after the depository institution concerned or

any institution-affiliated party has been served with a temporary

cease-and-desist order, the depository institution or such party

may apply to the United States district court for the judicial

district in which the home office of the depository institution is

located, or the United States District Court for the District of

Columbia, for an injunction setting aside, limiting, or suspending

the enforcement, operation, or effectiveness of such order pending

the completion of the administrative proceedings pursuant to the

notice of charges served upon the depository institution or such

party under paragraph (1) of subsection (b) of this section, and

such court shall have jurisdiction to issue such injunction.

(3) Incomplete or inaccurate records. -

(A) Temporary order. - If a notice of charges served under

subsection (b)(1) of this section specifies, on the basis of

particular facts and circumstances, that an insured depository

institution's books and records are so incomplete or inaccurate

that the appropriate Federal banking agency is unable, through

the normal supervisory process, to determine the financial

condition of that depository institution or the details or

purpose of any transaction or transactions that may have a

material effect on the financial condition of that depository

institution, the agency may issue a temporary order requiring -

(i) the cessation of any activity or practice which gave

rise, whether in whole or in part, to the incomplete or

inaccurate state of the books or records; or

(ii) affirmative action to restore such books or records to a

complete and accurate state, until the completion of the

proceedings under subsection (b)(1) of this section.

(B) Effective period. - Any temporary order issued under

subparagraph (A) -

(i) shall become effective upon service; and

(ii) unless set aside, limited, or suspended by a court in

proceedings under paragraph (2), shall remain in effect and

enforceable until the earlier of -

(I) the completion of the proceeding initiated under

subsection (b)(1) of this section in connection with the

notice of charges; or

(II) the date the appropriate Federal banking agency

determines, by examination or otherwise, that the insured

depository institution's books and records are accurate and

reflect the financial condition of the depository

institution.

(d) Temporary cease-and-desist orders; enforcement

In the case of violation or threatened violation of, or failure

to obey, a temporary cease-and-desist order issued pursuant to

paragraph (1) of subsection (c) of this section, the appropriate

Federal banking agency may apply to the United States district

court, or the United States court of any territory, within the

jurisdiction of which the home office of the depository institution

is located, for an injunction to enforce such order, and, if the

court shall determine that there has been such violation or

threatened violation or failure to obey, it shall be the duty of

the court to issue such injunction.

(e) Removal and prohibition authority

(1) Authority to issue order. - Whenever the appropriate Federal

banking agency determines that -

(A) any institution-affiliated party has, directly or

indirectly -

(i) violated -

(I) any law or regulation;

(II) any cease-and-desist order which has become final;

(III) any condition imposed in writing by the appropriate

Federal banking agency in connection with the grant of any

application or other request by such depository institution;

or

(IV) any written agreement between such depository

institution and such agency;

(ii) engaged or participated in any unsafe or unsound

practice in connection with any insured depository institution

or business institution; or

(iii) committed or engaged in any act, omission, or practice

which constitutes a breach of such party's fiduciary duty;

(B) by reason of the violation, practice, or breach described

in any clause of subparagraph (A) -

(i) such insured depository institution or business

institution has suffered or will probably suffer financial loss

or other damage;

(ii) the interests of the insured depository institution's

depositors have been or could be prejudiced; or

(iii) such party has received financial gain or other benefit

by reason of such violation, practice, or breach; and

(C) such violation, practice, or breach -

(i) involves personal dishonesty on the part of such party;

or

(ii) demonstrates willful or continuing disregard by such

party for the safety or soundness of such insured depository

institution or business institution,

the agency may serve upon such party a written notice of the

agency's intention to remove such party from office or to prohibit

any further participation by such party, in any manner, in the

conduct of the affairs of any insured depository institution.

(2) Specific violations. -

(A) In general. - Whenever the appropriate Federal banking

agency determines that -

(i) an institution-affiliated party has committed a violation

of any provision of subchapter II of chapter 53 of title 31 and

such violation was not inadvertent or unintentional;

(ii) an officer or director of an insured depository

institution has knowledge that an institution-affiliated party

of the insured depository institution has violated any such

provision or any provision of law referred to in subsection

(g)(1)(A)(ii) of this section; or

(iii) an officer or director of an insured depository

institution has committed any violation of the Depository

Institution Management Interlocks Act (12 U.S.C. 3201 et seq.),

the agency may serve upon such party, officer, or director a

written notice of the agency's intention to remove such party

from office.

(B) Factors to be considered. - In determining whether an

officer or director should be removed as a result of the

application of subparagraph (A)(ii), the agency shall consider

whether the officer or director took appropriate action to stop,

or to prevent the recurrence of, a violation described in such

subparagraph.

(3) Suspension order. -

(A) Suspension or prohibition authorized. - If the appropriate

Federal banking agency serves written notice under paragraph (1)

or (2) to any institution-affiliated party of such agency's

intention to issue an order under such paragraph, the appropriate

Federal banking agency may suspend such party from office or

prohibit such party from further participation in any manner in

the conduct of the affairs of the depository institution, if the

agency -

(i) determines that such action is necessary for the

protection of the depository institution or the interests of

the depository institution's depositors; and

(ii) serves such party with written notice of the suspension

order.

(B) Effective period. - Any suspension order issued under

subparagraph (A) -

(i) shall become effective upon service; and

(ii) unless a court issues a stay of such order under

subsection (f) of this section, shall remain in effect and

enforceable until -

(I) the date the appropriate Federal banking agency

dismisses the charges contained in the notice served under

paragraph (1) or (2) with respect to such party; or

(II) the effective date of an order issued by the agency to

such party under paragraph (1) or (2).

(C) Copy of order. - If an appropriate Federal banking agency

issues a suspension order under subparagraph (A) to any

institution-affiliated party, the agency shall serve a copy of

such order on any insured depository institution with which such

party is associated at the time such order is issued.

(4) A notice of intention to remove an institution-affiliated

party from office or to prohibit such party from participating in

the conduct of the affairs of an insured depository institution,

shall contain a statement of the facts constituting grounds

therefor, and shall fix a time and place at which a hearing will be

held thereon. Such hearing shall be fixed for a date not earlier

than thirty days nor later than sixty days after the date of

service of such notice, unless an earlier or a later date is set by

the agency at the request of (A) such party, and for good cause

shown, or (B) the Attorney General of the United States. Unless

such party shall appear at the hearing in person or by a duly

authorized representative, such party shall be deemed to have

consented to the issuance of an order of such removal or

prohibition. In the event of such consent, or if upon the record

made at any such hearing the agency shall find that any of the

grounds specified in such notice have been established, the agency

may issue such orders of suspension or removal from office, or

prohibition from participation in the conduct of the affairs of the

depository institution, as it may deem appropriate. In any action

brought under this section by the Comptroller of the Currency in

respect to any such party with respect to a national banking

association or a District depository institution, the findings and

conclusions of the Administrative Law Judge shall be certified to

the Board of Governors of the Federal Reserve System for the

determination of whether any order shall issue. Any such order

shall become effective at the expiration of thirty days after

service upon such depository institution and such party concerned

(except in the case of an order issued upon consent, which shall

become effective at the time specified therein). Such order shall

remain effective and enforceable except to such extent as it is

stayed, modified, terminated, or set aside by action of the agency

or a reviewing court.

(5) For the purpose of enforcing any law, rule, regulation, or

cease-and-desist order in connection with an interlocking

relationship, the term ''officer'' within the term

''institution-affiliated party'' as used in this subsection means

an employee or officer with management functions, and the term

''director'' within the term ''institution-affiliated party'' as

used in this subsection includes an advisory or honorary director,

a trustee of a depository institution under the control of

trustees, or any person who has a representative or nominee serving

in any such capacity.

(6) Prohibition of certain specific activities. - Any person

subject to an order issued under this subsection shall not -

(A) participate in any manner in the conduct of the affairs of

any institution or agency specified in paragraph (7)(A);

(B) solicit, procure, transfer, attempt to transfer, vote, or

attempt to vote any proxy, consent, or authorization with respect

to any voting rights in any institution described in subparagraph

(A);

(C) violate any voting agreement previously approved by the

appropriate Federal banking agency; or

(D) vote for a director, or serve or act as an

institution-affiliated party.

(7) Industrywide Prohibition. -

(A) In general. - Except as provided in subparagraph (B), any

person who, pursuant to an order issued under this subsection or

subsection (g) of this section, has been removed or suspended

from office in an insured depository institution or prohibited

from participating in the conduct of the affairs of an insured

depository institution may not, while such order is in effect,

continue or commence to hold any office in, or participate in any

manner in the conduct of the affairs of -

(i) any insured depository institution;

(ii) any institution treated as an insured bank under

subsection (b)(3) or (b)(4) of this section, or as a savings

association under subsection (b)(9) of this section;

(iii) any insured credit union under the Federal Credit Union

Act (12 U.S.C. 1751 et seq.);

(iv) any institution chartered under the Farm Credit Act of

1971 (12 U.S.C. 2001 et seq.);

(v) any appropriate Federal depository institution regulatory

agency;

(vi) the Federal Housing Finance Board and any Federal home

loan bank; and

(vii) the Resolution Trust Corporation.

(B) Exception if agency provides written consent. - If, on or

after the date an order is issued under this subsection which

removes or suspends from office any institution-affiliated party

or prohibits such party from participating in the conduct of the

affairs of an insured depository institution, such party receives

the written consent of -

(i) the agency that issued such order; and

(ii) the appropriate Federal financial institutions

regulatory agency of the institution described in any clause of

subparagraph (A) with respect to which such party proposes to

become an institution-affiliated party,

subparagraph (A) shall, to the extent of such consent, cease to

apply to such party with respect to the institution described in

each written consent. Any agency that grants such a written

consent shall report such action to the Corporation and publicly

disclose such consent.

(C) Violation of paragraph treated as violation of order. - Any

violation of subparagraph (A) by any person who is subject to an

order described in such subparagraph shall be treated as a

violation of the order.

(D) ''Appropriate federal financial institutions regulatory

agency'' defined. - For purposes of this paragraph and subsection

(j) of this section, the term ''appropriate Federal financial

institutions regulatory agency'' means -

(i) the appropriate Federal banking agency, in the case of an

insured depository institution;

(ii) the Farm Credit Administration, in the case of an

institution chartered under the Farm Credit Act of 1971 (12

U.S.C. 2001 et seq.);

(iii) the National Credit Union Administration Board, in the

case of an insured credit union (as defined in section 101(7)

of the Federal Credit Union Act (12 U.S.C. 1752(7)));

(iv) the Secretary of the Treasury, in the case of the

Federal Housing Finance Board and any Federal home loan bank;

and

(v) the Thrift Depositor Protection Oversight Board, in the

case of the Resolution Trust Corporation.

(E) Consultation between agencies. - The agencies referred to

in clauses (i) and (ii) of subparagraph (B) shall consult with

each other before providing any written consent described in

subparagraph (B).

(F) Applicability. - This paragraph shall only apply to a

person who is an individual, unless the appropriate Federal

banking agency specifically finds that it should apply to a

corporation, firm, or other business enterprise.

(f) Stay of suspension and/or prohibition of institution-affiliated

party

Within ten days after any institution-affiliated party has been

suspended from office and/or prohibited from participation in the

conduct of the affairs of an insured depository institution under

subsection (e)(3) of this section, such party may apply to the

United States district court for the judicial district in which the

home office of the depository institution is located, or the United

States District Court for the District of Columbia, for a stay of

such suspension and/or prohibition pending the completion of the

administrative proceedings pursuant to the notice served upon such

party under subsection (e)(1) or (e)(2) of this section, and such

court shall have jurisdiction to stay such suspension and/or

prohibition.

(g) Suspension or removal of institution-affiliated party charged

with felony

(1) Suspension or prohibition. -

(A) In general. - Whenever any institution-affiliated party is

charged in any information, indictment, or complaint, with the

commission of or participation in -

(i) a crime involving dishonesty or breach of trust which is

punishable by imprisonment for a term exceeding one year under

State or Federal law, or

(ii) a criminal violation of section 1956, 1957, or 1960 of

title 18 or section 5322 or 5324 of title 31,

the appropriate Federal banking agency may, if continued service

or participation by such party may pose a threat to the interests

of the depository institution's depositors or may threaten to

impair public confidence in the depository institution, by

written notice served upon such party, suspend such party from

office or prohibit such party from further participation in any

manner in the conduct of the affairs of the depository

institution.

(B) Provisions applicable to notice. -

(i) Copy. - A copy of any notice under subparagraph (A) shall

also be served upon the depository institution.

(ii) Effective period. - A suspension or prohibition under

subparagraph (A) shall remain in effect until the information,

indictment, or complaint referred to in such subparagraph is

finally disposed of or until terminated by the agency.

(C) Removal or prohibition. -

(i) In general. - If a judgment of conviction or an agreement

to enter a pretrial diversion or other similar program is

entered against an institution-affiliated party in connection

with a crime described in subparagraph (A)(i), at such time as

such judgment is not subject to further appellate review, the

appropriate Federal banking agency may, if continued service or

participation by such party may pose a threat to the interests

of the depository institution's depositors or may threaten to

impair public confidence in the depository institution, issue

and serve upon such party an order removing such party from

office or prohibiting such party from further participation in

any manner in the conduct of the affairs of the depository

institution without the prior written consent of the

appropriate agency.

(ii) Required for certain offenses. - In the case of a

judgment of conviction or agreement against an

institution-affiliated party in connection with a violation

described in subparagraph (A)(ii), the appropriate Federal

banking agency shall issue and serve upon such party an order

removing such party from office or prohibiting such party from

further participation in any manner in the conduct of the

affairs of the depository institution without the prior written

consent of the appropriate agency.

(D) Provisions applicable to order. -

(i) Copy. - A copy of any order under subparagraph (C) shall

also be served upon the depository institution, whereupon the

institution-affiliated party who is subject to the order (if a

director or an officer) shall cease to be a director or officer

of such depository institution.

(ii) Effect of acquittal. - A finding of not guilty or other

disposition of the charge shall not preclude the agency from

instituting proceedings after such finding or disposition to

remove such party from office or to prohibit further

participation in depository institution affairs, pursuant to

paragraph (1), (2), or (3) of subsection (e) of this section.

(iii) Effective period. - Any notice of suspension or order

of removal issued under this paragraph shall remain effective

and outstanding until the completion of any hearing or appeal

authorized under paragraph (3) unless terminated by the agency.

(2) If at any time, because of the suspension of one or more

directors pursuant to this section, there shall be on the board of

directors of a national bank less than a quorum of directors not so

suspended, all powers and functions vested in or exercisable by

such board shall vest in and be exercisable by the director or

directors on the board not so suspended, until such time as there

shall be a quorum of the board of directors. In the event all of

the directors of a national bank are suspended pursuant to this

section, the Comptroller of the Currency shall appoint persons to

serve temporarily as directors in their place and stead pending the

termination of such suspensions, or until such time as those who

have been suspended, cease to be directors of the bank and their

respective successors take office.

(3) Within thirty days from service of any notice of suspension

or order of removal issued pursuant to paragraph (1) of this

subsection, the institution-affiliated party concerned may request

in writing an opportunity to appear before the agency to show that

the continued service to or participation in the conduct of the

affairs of the depository institution by such party does not, or is

not likely to, pose a threat to the interests of the bank's

(FOOTNOTE 4) depositors or threaten to impair public confidence in

the depository institution. Upon receipt of any such request, the

appropriate Federal banking agency shall fix a time (not more than

thirty days after receipt of such request, unless extended at the

request of such party) and place at which such party may appear,

personally or through counsel, before one or more members of the

agency or designated employees of the agency to submit written

materials (or, at the discretion of the agency, oral testimony) and

oral argument. Within sixty days of such hearing, the agency shall

notify such party whether the suspension or prohibition from

participation in any manner in the conduct of the affairs of the

depository institution will be continued, terminated, or otherwise

modified, or whether the order removing such party from office or

prohibiting such party from further participation in any manner in

the conduct of the affairs of the depository institution will be

rescinded or otherwise modified. Such notification shall contain a

statement of the basis for the agency's decision, if adverse to

such party. The Federal banking agencies are authorized to

prescribe such rules as may be necessary to effectuate the purposes

of this subsection.

(FOOTNOTE 4) So in original. Probably should be ''depository

institution's''.

(h) Hearings and judicial review

(1) Any hearing provided for in this section (other than the

hearing provided for in subsection (g)(3) of this section) shall be

held in the Federal judicial district or in the territory in which

the home office of the depository institution is located unless the

party afforded the hearing consents to another place, and shall be

conducted in accordance with the provisions of chapter 5 of title

5. After such hearing, and within ninety days after the appropriate

Federal banking agency or Board of Governors of the Federal Reserve

System has notified the parties that the case has been submitted to

it for final decision, it shall render its decision (which shall

include findings of fact upon which its decision is predicated) and

shall issue and serve upon each party to the proceeding an order or

orders consistent with the provisions of this section. Judicial

review of any such order shall be exclusively as provided in this

subsection (h). Unless a petition for review is timely filed in a

court of appeals of the United States, as hereinafter provided in

paragraph (2) of this subsection, and thereafter until the record

in the proceeding has been filed as so provided, the issuing agency

may at any time, upon such notice and in such manner as it shall

deem proper, modify, terminate, or set aside any such order. Upon

such filing of the record, the agency may modify, terminate, or set

aside any such order with permission of the court.

(2) Any party to any proceeding under paragraph (1) may obtain a

review of any order served pursuant to paragraph (1) of this

subsection (other than an order issued with the consent of the

depository institution or the institution-affiliated party

concerned, or an order issued under paragraph (1) of subsection (g)

of this section) by the filing in the court of appeals of the

United States for the circuit in which the home office of the

depository institution is located, or in the United States Court of

Appeals for the District of Columbia Circuit, within thirty days

after the date of service of such order, a written petition praying

that the order of the agency be modified, terminated, or set

aside. A copy of such petition shall be forthwith transmitted by

the clerk of the court to the agency, and thereupon the agency

shall file in the court the record in the proceeding, as provided

in section 2112 of title 28. Upon the filing of such petition, such

court shall have jurisdiction, which upon the filing of the record

shall except as provided in the last sentence of said paragraph (1)

be exclusive, to affirm, modify, terminate, or set aside, in whole

or in part, the order of the agency. Review of such proceedings

shall be had as provided in chapter 7 of title 5. The judgment and

decree of the court shall be final, except that the same shall be

subject to review by the Supreme Court upon certiorari, as provided

in section 1254 of title 28.

(3) The commencement of proceedings for judicial review under

paragraph (2) of this subsection shall not, unless specifically

ordered by the court, operate as a stay of any order issued by the

agency.

(i) Jurisdiction and enforcement; penalty

(1) The appropriate Federal banking agency may in its discretion

apply to the United States district court, or the United States

court of any territory, within the jurisdiction of which the home

office of the depository institution is located, for the

enforcement of any effective and outstanding notice or order issued

under this section or under section 1831o or 1831p-1 of this title,

and such courts shall have jurisdiction and power to order and

require compliance herewith; but except as otherwise provided in

this section or under section 1831o or 1831p-1 of this title no

court shall have jurisdiction to affect by injunction or otherwise

the issuance or enforcement of any notice or order under any such

section, or to review, modify, suspend, terminate, or set aside any

such notice or order.

(2) Civil money penalty. -

(A) First tier. - Any insured depository institution which, and

any institution-affiliated party who -

(i) violates any law or regulation;

(ii) violates any final order or temporary order issued

pursuant to subsection (b), (c), (e), (g), or (s) of this

section or any final order under section 1831o or 1831p-1 of

this title;

(iii) violates any condition imposed in writing by the

appropriate Federal banking agency in connection with the grant

of any application or other request by such depository

institution; or

(iv) violates any written agreement between such depository

institution and such agency,

shall forfeit and pay a civil penalty of not more than $5,000 for

each day during which such violation continues.

(B) Second tier. - Notwithstanding subparagraph (A), any

insured depository institution which, and any

institution-affiliated party who -

(i)(I) commits any violation described in any clause of

subparagraph (A);

(II) recklessly engages in an unsafe or unsound practice in

conducting the affairs of such insured depository institution;

or

(III) breaches any fiduciary duty;

(ii) which violation, practice, or breach -

(I) is part of a pattern of misconduct;

(II) causes or is likely to cause more than a minimal loss

to such depository institution; or

(III) results in pecuniary gain or other benefit to such

party,

shall forfeit and pay a civil penalty of not more than $25,000

for each day during which such violation, practice, or breach

continues.

(C) Third tier. - Notwithstanding subparagraphs (A) and (B),

any insured depository institution which, and any

institution-affiliated party who -

(i) knowingly -

(I) commits any violation described in any clause of

subparagraph (A);

(II) engages in any unsafe or unsound practice in

conducting the affairs of such depository institution; or

(III) breaches any fiduciary duty; and

(ii) knowingly or recklessly causes a substantial loss to

such depository institution or a substantial pecuniary gain or

other benefit to such party by reason of such violation,

practice, or breach,

shall forfeit and pay a civil penalty in an amount not to exceed

the applicable maximum amount determined under subparagraph (D)

for each day during which such violation, practice, or breach

continues.

(D) Maximum amounts of penalties for any violation described in

subparagraph (c). - The maximum daily amount of any civil penalty

which may be assessed pursuant to subparagraph (C) for any

violation, practice, or breach described in such subparagraph is

-

(i) in the case of any person other than an insured

depository institution, an amount to not exceed $1,000,000; and

(ii) in the case of any insured depository institution, an

amount not to exceed the lesser of -

(I) $1,000,000; or

(II) 1 percent of the total assets of such institution.

(E) Assessment. -

(i) Written notice. - Any penalty imposed under subparagraph

(A), (B), or (C) may be assessed and collected by the

appropriate Federal banking agency by written notice.

(ii) Finality of assessment. - If, with respect to any

assessment under clause (i), a hearing is not requested

pursuant to subparagraph (H) within the period of time allowed

under such subparagraph, the assessment shall constitute a

final and unappealable order.

(F) Authority to modify or remit penalty. - Any appropriate

Federal banking agency may compromise, modify, or remit any

penalty which such agency may assess or had already assessed

under subparagraph (A), (B), or (C).

(G) Mitigating factors. - In determining the amount of any

penalty imposed under subparagraph (A), (B), or (C), the

appropriate agency shall take into account the appropriateness of

the penalty with respect to -

(i) the size of financial resources and good faith of the

insured depository institution or other person charged;

(ii) the gravity of the violation;

(iii) the history of previous violations; and

(iv) such other matters as justice may require.

(H) Hearing. - The insured depository institution or other

person against whom any penalty is assessed under this paragraph

shall be afforded an agency hearing if such institution or person

submits a request for such hearing within 20 days after the

issuance of the notice of assessment.

(I) Collection. -

(i) Referral. - If any insured depository institution or

other person fails to pay an assessment after any penalty

assessed under this paragraph has become final, the agency that

imposed the penalty shall recover the amount assessed by action

in the appropriate United States district court.

(ii) Appropriateness of penalty not reviewable. - In any

civil action under clause (i), the validity and appropriateness

of the penalty shall not be subject to review.

(J) Disbursement. - All penalties collected under authority of

this paragraph shall be deposited into the Treasury.

(K) Regulations. - Each appropriate Federal banking agency

shall prescribe regulations establishing such procedures as may

be necessary to carry out this paragraph.

(3) Notice under this section after separation from service. -

The resignation, termination of employment or participation, or

separation of a institution-affiliated party (including a

separation caused by the closing of an insured depository

institution) shall not affect the jurisdiction and authority of the

appropriate Federal banking agency to issue any notice and proceed

under this section against any such party, if such notice is served

before the end of the 6-year period beginning on the date such

party ceased to be such a party with respect to such depository

institution (whether such date occurs before, on, or after August

9, 1989).

(4) Prejudgment attachment. -

(A) In general. - In any action brought by an appropriate

Federal banking agency (excluding the Corporation when acting in

a manner described in section 1821(d)(18) of this title) pursuant

to this section, or in actions brought in aid of, or to enforce

an order in, any administrative or other civil action for money

damages, restitution, or civil money penalties brought by such

agency, the court may, upon application of the agency, issue a

restraining order that -

(i) prohibits any person subject to the proceeding from

withdrawing, transferring, removing, dissipating, or disposing

of any funds, assets or other property; and

(ii) appoints a temporary receiver to administer the

restraining order.

(B) Standard. -

(i) Showing. - Rule 65 of the Federal Rules of Civil

Procedure shall apply with respect to any proceeding under

subparagraph (A) without regard to the requirement of such rule

that the applicant show that the injury, loss, or damage is

irreparable and immediate.

(ii) State proceeding. - If, in the case of any proceeding in

a State court, the court determines that rules of civil

procedure available under the laws of such State provide

substantially similar protections to a party's right to due

process as Rule 65 (as modified with respect to such proceeding

by clause (i)), the relief sought under subparagraph (A) may be

requested under the laws of such State.

(j) Criminal penalty

Whoever, being subject to an order in effect under subsection (e)

or (g) of this section, without the prior written approval of the

appropriate Federal financial institutions regulatory agency,

knowingly participates, directly or indirectly, in any manner

(including by engaging in an activity specifically prohibited in

such an order or in subsection (e)(6) of this section) in the

conduct of the affairs of -

(1) any insured depository institution;

(2) any institution treated as an insured bank under subsection

(b)(3) or (b)(4) of this section, or as a savings association

under subsection (b)(9) of this section;

(3) any insured credit union (as defined in section 101(7) of

the Federal Credit Union Act (12 U.S.C. 1752(7)));

(4) any institution chartered under the Farm Credit Act of 1971

(12 U.S.C. 2001 et seq.); or

(5) the Resolution Trust Corporation,

shall be fined not more than $1,000,000, imprisoned for not more

than 5 years, or both.

(k) Repealed. Pub. L. 101-73, title IX, Sec. 920(c), Aug. 9, 1989,

103 Stat. 488

(l) Notice of service

Any service required or authorized to be made by the appropriate

Federal banking agency under this section may be made by registered

mail, or in such other manner reasonably calculated to give actual

notice as the agency may by regulation or otherwise provide.

Copies of any notice or order served by the agency upon any State

depository institution or any institution-affiliated party,

pursuant to the provisions of this section, shall also be sent to

the appropriate State supervisory authority.

(m) Notice to State authorities

In connection with any proceeding under subsection (b), (c)(1),

or (e) of this section involving an insured State bank or any

institution-affiliated party, the appropriate Federal banking

agency shall provide the appropriate State supervisory authority

with notice of the agency's intent to institute such a proceeding

and the grounds therefor. Unless within such time as the Federal

banking agency deems appropriate in the light of the circumstances

of the case (which time must be specified in the notice prescribed

in the preceding sentence) satisfactory corrective action is

effectuated by action of the State supervisory authority, the

agency may proceed as provided in this section. No bank or other

party who is the subject of any notice or order issued by the

agency under this section shall have standing to raise the

requirements of this subsection as ground for attacking the

validity of any such notice or order.

(n) Ancillary provisions; subpena power, etc.

In the course of or in connection with any proceeding under this

section, or in connection with any claim for insured deposits or

any examination or investigation under section 1820(c) of this

title, the agency conducting the proceeding, examination, or

investigation or considering the claim for insured deposits, or any

member or designated representative thereof, including any person

designated to conduct any hearing under this section, shall have

the power to administer oaths and affirmations, to take or cause to

be taken depositions, and to issue, revoke, quash, or modify

subpenas and subpenas duces tecum; and such agency is empowered to

make rules and regulations with respect to any such proceedings,

claims, examinations, or investigations. The attendance of

witnesses and the production of documents provided for in this

subsection may be required from any place in any State or in any

territory or other place subject to the jurisdiction of the United

States at any designated place where such proceeding is being

conducted. Any such agency or any party to proceedings under this

section may apply to the United States District Court for the

District of Columbia, or the United States district court for the

judicial district or the United States court in any territory in

which such proceeding is being conducted, or where the witness

resides or carries on business, for enforcement of any subpena or

subpena duces tecum issued pursuant to this subsection, and such

courts shall have jurisdiction and power to order and require

compliance therewith. Witnesses subpenaed under this subsection

shall be paid the same fees and mileage that are paid witnesses in

the district courts of the United States. Any court having

jurisdiction of any proceeding instituted under this section by an

insured depository institution or a director or officer thereof,

may allow to any such party such reasonable expenses and attorneys'

fees as it deems just and proper; and such expenses and fees shall

be paid by the depository institution or from its assets. Any

person who willfully shall fail or refuse to attend and testify or

to answer any lawful inquiry or to produce books, papers,

correspondence, memoranda, contracts, agreements, or other records,

if in such person's power so to do, in obedience to the subpoena of

the appropriate Federal banking agency, shall be guilty of a

misdemeanor and, upon conviction, shall be subject to a fine of not

more than $1,000 or to imprisonment for a term of not more than one

year or both.

(o) Termination of membership of State bank in Federal Reserve

System

Whenever the insured status of a State member bank shall be

terminated by action of the Board of Directors, the Board of

Governors of the Federal Reserve System shall terminate its

membership in the Federal Reserve System in accordance with the

provisions of subchapter VIII of chapter 3 of this title, and

whenever the insured status of a national member bank shall be so

terminated the Comptroller of the Currency shall appoint a receiver

for the bank, which shall be the Corporation. Except as provided in

subsection (c) or (d) of section 1814 of this title, whenever a

member bank shall cease to be a member of the Federal Reserve

System, its status as an insured depository institution shall,

without notice or other action by the Board of Directors, terminate

on the date the bank shall cease to be a member of the Federal

Reserve System, with like effect as if its insured status had been

terminated on said date by the Board of Directors after proceedings

under subsection (a) of this section. Whenever the insured status

of an insured Federal savings bank shall be terminated by action of

the Board of Directors, the Director of the Office of Thrift

Supervision shall appoint a receiver for the bank, which shall be

the Corporation.

(p) Banks not receiving deposits

Notwithstanding any other provision of law, whenever the Board of

Directors shall determine that an insured depository institution is

not engaged in the business of receiving deposits, other than trust

funds as herein defined, the Corporation shall notify the

depository institution that its insured status will terminate at

the expiration of the first full semiannual assessment period

following such notice. A finding by the Board of Directors that a

depository institution is not engaged in the business of receiving

deposits, other than such trust funds, shall be conclusive. The

Board of Directors shall prescribe the notice to be given by the

depository institution of such termination and the Corporation may

publish notice thereof. Upon the termination of the insured status

of any such depository institution, its deposits shall thereupon

cease to be insured and the depository institution shall thereafter

be relieved of all future obligations to the Corporation, including

the obligation to pay future assessments.

(q) Assumption of liabilities

Whenever the liabilities of an insured depository institution for

deposits shall have been assumed by another insured depository

institution or depository institutions, whether by way of merger,

consolidation, or other statutory assumption, or pursuant to

contract (1) the insured status of the depository institution whose

liabilities are so assumed shall terminate on the date of receipt

by the Corporation of satisfactory evidence of such assumption; (2)

the separate insurance of all deposits so assumed shall terminate

at the end of six months from the date such assumption takes effect

or, in the case of any time deposit, the earliest maturity date

after the six-month period. Where the deposits of an insured

depository institution are assumed by a newly insured depository

institution, the depository institution whose deposits are assumed

shall not be required to pay any assessment with respect to the

deposits which have been so assumed after the semiannual period in

which the assumption takes effect.

(r) Action or proceeding against foreign bank; basis; removal of

officer or other person; venue; service of process

(1) Except as otherwise specifically provided in this section,

the provisions of this section shall be applied to foreign banks in

accordance with this subsection.

(2) An act or practice outside the United States on the part of a

foreign bank or any officer, director, employee, or agent thereof

may not constitute the basis for any action by any officer or

agency of the United States under this section, unless -

(A) such officer or agency alleges a belief that such act or

practice has been, is, or is likely to be a cause of or carried

on in connection with or in furtherance of an act or practice

within any one or more States which, in and of itself, would

constitute an appropriate basis for action by a Federal officer

or agency under this section; or

(B) the alleged act or practice is one which, if proven, would,

in the judgment of the Board of Directors, adversely affect the

insurance risk assumed by the Corporation.

(3) In any case in which any action or proceeding is brought

pursuant to an allegation under paragraph (2) of this subsection

for the suspension or removal of any officer, director, or other

person associated with a foreign bank, and such person fails to

appear promptly as a party to such action or proceeding and to

comply with any effective order or judgment therein, any failure by

the foreign bank to secure his removal from any office he holds in

such bank and from any further participation in its affairs shall,

in and of itself, constitute grounds for termination of the

insurance of the deposits in any branch of the bank.

(4) Where the venue of any judicial or administrative proceeding

under this section is to be determined by reference to the location

of the home office of a bank, the venue of such a proceeding with

respect to a foreign bank having one or more branches or agencies

in not more than one judicial district or other relevant

jurisdiction shall be within such jurisdiction. Where such a bank

has branches or agencies in more than one such jurisdiction, the

venue shall be in the jurisdiction within which the branch or

branches or agency or agencies involved in the proceeding are

located, and if there is more than one such jurisdiction, the venue

shall be proper in any such jurisdiction in which the proceeding is

brought or to which it may appropriately be transferred.

(5) Any service required or authorized to be made on a foreign

bank may be made on any branch or agency located within any State,

but if such service is in connection with an action or proceeding

involving one or more branches or one or more agencies located in

any State, service shall be made on at least one branch or agency

so involved.

(s) Compliance with monetary transaction recordkeeping and report

requirements

(1) Compliance procedures required

Each appropriate Federal banking agency shall prescribe

regulations requiring insured depository institutions to

establish and maintain procedures reasonably designed to assure

and monitor the compliance of such depository institutions with

the requirements of subchapter II of chapter 53 of title 31.

(2) Examinations of depository institution to include review of

compliance procedures

(A) In general

Each examination of an insured depository institution by the

appropriate Federal banking agency shall include a review of

the procedures required to be established and maintained under

paragraph (1).

(B) Exam report requirement

The report of examination shall describe any problem with the

procedures maintained by the insured depository institution.

(3) Order to comply with requirements

If the appropriate Federal banking agency determines that an

insured depository institution -

(A) has failed to establish and maintain the procedures

described in paragraph (1); or

(B) has failed to correct any problem with the procedures

maintained by such depository institution which was previously

reported to the depository institution by such agency,

the agency shall issue an order in the manner prescribed in

subsection (b) or (c) of this section requiring such depository

institution to cease and desist from its violation of this

subsection or regulations prescribed under this subsection.

(t) Authority of FDIC to take enforcement action against insured

depository institutions and institution-affiliated parties

(1) Recommending action by appropriate Federal banking agency

The Corporation, based on an examination of an insured

depository institution by the Corporation or by the appropriate

Federal banking agency or on other information, may recommend in

writing to the appropriate Federal banking agency that the agency

take any enforcement action authorized under section 1817(j) of

this title, this section, or section 1828(j) of this title with

respect to any insured depository institution or any

institution-affiliated party. The recommendation shall be

accompanied by a written explanation of the concerns giving rise

to the recommendation.

(2) FDIC's authority to act if appropriate Federal banking agency

fails to follow recommendation

If the appropriate Federal banking agency does not, before the

end of the 60-day period beginning on the date on which the

agency receives the recommendation under paragraph (1), take the

enforcement action recommended by the Corporation or provide a

plan acceptable to the Corporation for responding to the

Corporation's concerns, the Corporation may take the recommended

enforcement action if the Board of Directors determines, upon a

vote of its members, that -

(A) the insured depository institution is in an unsafe or

unsound condition;

(B) the institution or institution-affiliated party is

engaging in unsafe or unsound practices, and the recommended

enforcement action will prevent the institution or

institution-affiliated party from continuing such practices; or

(C) the conduct or threatened conduct (including any acts or

omissions) poses a risk to the deposit insurance fund, or may

prejudice the interests of the institution's depositors.

(3) Effect of exigent circumstances

(A) Authority to act

The Corporation may, upon a vote of the Board of Directors,

and after notice to the appropriate Federal banking agency,

exercise its authority under paragraph (2) in exigent

circumstances without regard to the time period set forth in

paragraph (2).

(B) Agreement on exigent circumstances

The Corporation shall, by agreement with the appropriate

Federal banking agency, set forth those exigent circumstances

in which the Corporation may act under subparagraph (A).

(4) Corporation's powers; institution's duties

For purposes of this subsection -

(A) the Corporation shall have the same powers with respect

to any insured depository institution and its affiliates as the

appropriate Federal banking agency has with respect to the

institution and its affiliates; and

(B) the institution and its affiliates shall have the same

duties and obligations with respect to the Corporation as the

institution and its affiliates have with respect to the

appropriate Federal banking agency.

(5) Requests for formal actions and investigations

(A) Submission of requests

A regional office of an appropriate Federal banking agency

(including a Federal Reserve bank) that requests a formal

investigation of or civil enforcement action against an insured

depository institution or institution-affiliated party shall

submit the request concurrently to the chief officer of the

appropriate Federal banking agency and to the Corporation.

(B) Agencies required to report on requests

Each appropriate Federal banking agency shall report

semiannually to the Corporation on the status or disposition of

all requests under subparagraph (A), including the reasons for

any decision by the agency to approve or deny such requests.

(u) Public disclosures of final orders and agreements

(1) In general

The appropriate Federal banking agency shall publish and make

available to the public on a monthly basis -

(A) any written agreement or other written statement for

which a violation may be enforced by the appropriate Federal

banking agency, unless the appropriate Federal banking agency,

in its discretion, determines that publication would be

contrary to the public interest;

(B) any final order issued with respect to any administrative

enforcement proceeding initiated by such agency under this

section or any other law; and

(C) any modification to or termination of any order or

agreement made public pursuant to this paragraph.

(2) Hearings

All hearings on the record with respect to any notice of

charges issued by a Federal banking agency shall be open to the

public, unless the agency, in its discretion, determines that

holding an open hearing would be contrary to the public interest.

(3) Transcript of hearing

A transcript that includes all testimony and other documentary

evidence shall be prepared for all hearings commenced pursuant to

subsection (i) of this section. A transcript of public hearings

shall be made available to the public pursuant to section 552 of

title 5.

(4) Delay of publication under exceptional circumstances

If the appropriate Federal banking agency makes a determination

in writing that the publication of a final order pursuant to

paragraph (1)(B) would seriously threaten the safety and

soundness of an insured depository institution, the agency may

delay the publication of the document for a reasonable time.

(5) Documents filed under seal in public enforcement hearings

The appropriate Federal banking agency may file any document or

part of a document under seal in any administrative enforcement

hearing commenced by the agency if disclosure of the document

would be contrary to the public interest. A written report shall

be made part of any determination to withhold any part of a

document from the transcript of the hearing required by paragraph

(2).

(6) Retention of documents

Each Federal banking agency shall keep and maintain a record,

for a period of at least 6 years, of all documents described in

paragraph (1) and all informal enforcement agreements and other

supervisory actions and supporting documents issued with respect

to or in connection with any administrative enforcement

proceeding initiated by such agency under this section or any

other laws.

(7) Disclosures to Congress

No provision of this subsection may be construed to authorize

the withholding, or to prohibit the disclosure, of any

information to the Congress or any committee or subcommittee of

the Congress.

(v) Foreign investigations

(1) Requesting assistance from foreign banking authorities

In conducting any investigation, examination, or enforcement

action under this chapter, the appropriate Federal banking agency

may -

(A) request the assistance of any foreign banking authority;

and

(B) maintain an office outside the United States.

(2) Providing assistance to foreign banking authorities

(A) In general

Any appropriate Federal banking agency may, at the request of

any foreign banking authority, assist such authority if such

authority states that the requesting authority is conducting an

investigation to determine whether any person has violated, is

violating, or is about to violate any law or regulation

relating to banking matters or currency transactions

administered or enforced by the requesting authority.

(B) Investigation by Federal banking agency

Any appropriate Federal banking agency may, in such agency's

discretion, investigate and collect information and evidence

pertinent to a request for assistance under subparagraph (A).

Any such investigation shall comply with the laws of the United

States and the policies and procedures of the appropriate

Federal banking agency.

(C) Factors to consider

In deciding whether to provide assistance under this

paragraph, the appropriate Federal banking agency shall

consider -

(i) whether the requesting authority has agreed to provide

reciprocal assistance with respect to banking matters within

the jurisdiction of any appropriate Federal banking agency;

and

(ii) whether compliance with the request would prejudice

the public interest of the United States.

(D) Treatment of foreign banking authority

For purposes of any Federal law or appropriate Federal

banking agency regulation relating to the collection or

transfer of information by any appropriate Federal banking

agency, the foreign banking authority shall be treated as

another appropriate Federal banking agency.

(3) Rule of construction

Paragraphs (1) and (2) shall not be construed to limit the

authority of an appropriate Federal banking agency or any other

Federal agency to provide or receive assistance or information to

or from any foreign authority with respect to any matter.

(w) Termination of insurance for money laundering or cash

transaction reporting offenses

(1) In general

(A) Conviction of title 18 offenses

(i) Duty to notify

If an insured State depository institution has been

convicted of any criminal offense under section 1956 or 1957

of title 18, the Attorney General shall provide to the

Corporation a written notification of the conviction and

shall include a certified copy of the order of conviction

from the court rendering the decision.

(ii) Notice of termination; pretermination hearing

After receipt of written notification from the Attorney

General by the Corporation of such a conviction, the Board of

Directors shall issue to the insured depository institution a

notice of its intention to terminate the insured status of

the insured depository institution and schedule a hearing on

the matter, which shall be conducted in all respects as a

termination hearing pursuant to paragraphs (3) through (5) of

subsection (a) of this section.

(B) Conviction of title 31 offenses

If an insured State depository institution is convicted of

any criminal offense under section 5322 or 5324 of title 31

after receipt of written notification from the Attorney General

by the Corporation, the Board of Directors may initiate

proceedings to terminate the insured status of the insured

depository institution in the manner described in subparagraph

(A).

(C) Notice to State supervisor

The Corporation shall simultaneously transmit a copy of any

notice issued under this paragraph to the appropriate State

financial institutions supervisor.

(2) Factors to be considered

In determining whether to terminate insurance under paragraph

(1), the Board of Directors shall take into account the following

factors:

(A) The extent to which directors or senior executive

officers of the depository institution knew of, or were

involved in, the commission of the money laundering offense of

which the institution was found guilty.

(B) The extent to which the offense occurred despite the

existence of policies and procedures within the depository

institution which were designed to prevent the occurrence of

any such offense.

(C) The extent to which the depository institution has fully

cooperated with law enforcement authorities with respect to the

investigation of the money laundering offense of which the

institution was found guilty.

(D) The extent to which the depository institution has

implemented additional internal controls (since the commission

of the offense of which the depository institution was found

guilty) to prevent the occurrence of any other money laundering

offense.

(E) The extent to which the interest of the local community

in having adequate deposit and credit services available would

be threatened by the termination of insurance.

(3) Notice to State banking supervisor and public

When the order to terminate insured status initiated pursuant

to this subsection is final, the Board of Directors shall -

(A) notify the State banking supervisor of any State

depository institution described in paragraph (1) and the

Office of Thrift Supervision, where appropriate, at least 10

days prior to the effective date of the order of termination of

the insured status of such depository institution, including a

State branch of a foreign bank; and

(B) publish notice of the termination of the insured status

of the depository institution in the Federal Register.

(4) Temporary insurance of previously insured deposits

Upon termination of the insured status of any State depository

institution pursuant to paragraph (1), the deposits of such

depository institution shall be treated in accordance with

subsection (a)(7) of this section.

(5) Successor liability

This subsection shall not apply to a successor to the interests

of, or a person who acquires, an insured depository institution

that violated a provision of law described in paragraph (1), if

the successor succeeds to the interests of the violator, or the

acquisition is made, in good faith and not for purposes of

evading this subsection or regulations prescribed under this

subsection.

(6) ''Senior executive officer'' defined

The term ''senior executive officer'' has the same meaning as

in regulations prescribed under section 1831i(f) of this title.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(8), 64 Stat. 879; Pub. L. 89-695,

title II, Sec. 202, 204, Oct. 16, 1966, 80 Stat. 1046, 1054; Pub.

L. 93-495, title I, Sec. 110, Oct. 28, 1974, 88 Stat. 1506; Pub. L.

95-369, Sec. 6(c)(14), (15), 11, Sept. 17, 1978, 92 Stat. 618, 624;

Pub. L. 95-630, title I, Sec. 107(a)(1), (b), (c)(1), (d)(1),

(e)(1), 111(a), title II, Sec. 208(a), title III, Sec. 303, 304,

Nov. 10, 1978, 92 Stat. 3649, 3653, 3654, 3656, 3660, 3665, 3674,

3676; Pub. L. 97-320, title I, Sec. 113(g), (h), title IV, Sec.

404(c), 424(c), (d)(6), (e), 425(b), (c), 427(d), 433(a), Oct. 15,

1982, 96 Stat. 1473, 1474, 1512, 1523-1527; Pub. L. 99-570, title

I, Sec. 1359(a), Oct. 27, 1986, 100 Stat. 3207-27; Pub. L. 101-73,

title II, Sec. 201, title IX, Sec. 901(b)(1), (d), 902(a), 903(a),

904(a), 905(a), 906(a), 907(a), 908(a), 912, 913(a), 920(a), (c),

926, Aug. 9, 1989, 103 Stat. 187, 446, 450, 453, 457, 459, 462,

477, 482, 483, 488; Pub. L. 101-647, title XXV, Sec. 2521(b)(1),

2532(a), 2547(a)(1), (2), 2596(a), (b), Nov. 29, 1990, 104 Stat.

4864, 4880, 4886, 4887, 4908; Pub. L. 102-233, title III, Sec.

302(a), Dec. 12, 1991, 105 Stat. 1767; Pub. L. 102-242, title I,

Sec. 131(c)(1), (2), title III, Sec. 302(e)(5), formerly (e)(4),

307, Dec. 19, 1991, 105 Stat. 2266, 2349, 2360; Pub. L. 102-550,

title XV, Sec. 1503(a), 1504(a), title XVI, Sec. 1603(d)(2)-(4),

1605(a)(5)(A), (11), Oct. 28, 1992, 106 Stat. 4048, 4051, 4080,

4085, 4086; Pub. L. 102-558, title III, Sec. 303(b)(6)(A), 305,

Oct. 28, 1992, 106 Stat. 4225, 4226; Pub. L. 103-204, Sec. 25, Dec.

17, 1993, 107 Stat. 2408; Pub. L. 103-325, title IV, Sec.

411(c)(2)(A), title VI, Sec. 602(a)(11)-(18), Sept. 23, 1994, 108

Stat. 2253, 2289; Pub. L. 105-164, Sec. 3(a)(2), Mar. 20, 1998, 112

Stat. 35; Pub. L. 105-362, title X, Sec. 1001(d), Nov. 10, 1998,

112 Stat. 3291; Pub. L. 106-569, title XII, Sec. 1232, Dec. 27,

2000, 114 Stat. 3037.)

-REFTEXT-

REFERENCES IN TEXT

Subsections (a) and (b) of section 3104 of this title, referred

to in subsec. (a)(1)(E), were redesignated subsections (b) and (c),

respectively, of section 3104 of this title by Pub. L. 103-328,

title I, Sec. 107(a)(1), Sept. 29, 1994, 108 Stat. 2358.

The Bank Holding Company Act of 1956, referred to in subsec.

(b)(3), is act May 9, 1956, ch. 240, 70 Stat. 133, as amended,

which is classified principally to chapter 17 (Sec. 1841 et seq.)

of this title. For complete classification of this Act to the

Code, see Short Title note set out under section 1841 of this title

and Tables.

Section 25(a) of the Federal Reserve Act, referred to in subsec.

(b)(3), which is classified to subchapter II (Sec. 611 et seq.) of

chapter 6 of this title, was renumbered section 25A of that Act by

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281. Section 25 of the Federal Reserve Act is classified to

subchapter I (Sec. 601 et seq.) of chapter 6 of this title.

The Federal Rules of Civil Procedure, referred to in subsecs.

(b)(10) and (i)(4)(B), are set out in the Appendix to Title 28,

Judiciary and Judicial Procedure.

The Depository Institution Management Interlocks Act, referred to

in subsec. (e)(2)(A)(iii), is title II of Pub. L. 95-630, Nov. 10,

1978, 92 Stat. 3672, as amended, which is classified principally to

chapter 33 (Sec. 3201 et seq.) of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 3201 of this title and Tables.

The Federal Credit Union Act, referred to in subsec.

(e)(7)(A)(iii), is act June 26, 1934, ch. 750, 48 Stat. 1216, as

amended, which is classified generally to chapter 14 (Sec. 1751 et

seq.) of this title. For complete classification of this Act to

the Code, see section 1751 of this title and Tables.

The Farm Credit Act of 1971, referred to in subsecs.

(e)(7)(A)(iv), (D)(ii) and (j)(4), is Pub. L. 92-181, Dec. 10,

1971, 85 Stat. 583, as amended, which is classified generally to

chapter 23 (Sec. 2001 et seq.) of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 2001 of this title and Tables.

Subchapter VIII of chapter 3 of this title, referred to in

subsec. (o), was in the original ''section 9 of the Federal Reserve

Act'', meaning section 9 of act Dec. 23, 1913, ch. 6, 38 Stat. 251,

as amended, which is classified generally to subchapter VIII (Sec.

321 et seq.) of chapter 3 of this title.

-MISC2-

PRIOR PROVISIONS

Section is derived from subsec. (i) of former section 264 of this

title. See Codification note set out under section 1811 of this

title.

AMENDMENTS

2000 - Subsec. (o). Pub. L. 106-569 substituted ''subsection (c)

or (d) of section 1814'' for ''subsection (d) of section 1814''.

1998 - Subsec. (b)(9). Pub. L. 105-164, Sec. 3(a)(2)(A), struck

out ''to any service corporation of a savings association and to

any subsidiary of such service corporation'' after ''of a savings

and loan holding company,''.

Subsec. (e)(7)(A)(ii). Pub. L. 105-164, Sec. 3(a)(2)(B),

substituted ''(b)(9)'' for ''(b)(8)''.

Subsec. (j)(2). Pub. L. 105-164, Sec. 3(a)(2)(C), substituted

''(b)(9)'' for ''(b)(8)''.

Subsec. (u)(3) to (8). Pub. L. 105-362 redesignated pars. (4) to

(8) as (3) to (7), respectively, and struck out heading and text of

former par. (3). Text read as follows: ''A written report shall be

made part of a determination not to hold a public hearing pursuant

to paragraph (2) or not to publish a document pursuant to paragraph

(1)(A). At the end of each calendar quarter, all such reports shall

be transmitted to the Congress.''

1994 - Subsec. (a)(3). Pub. L. 103-325, Sec. 602(a)(11),

substituted ''paragraph (2)(B)'' for ''subparagraph (B) of this

subsection''.

Subsec. (a)(7). Pub. L. 103-325, Sec. 602(a)(12), inserted comma

after ''Board of Directors'' in first sentence and substituted

''the period'' for ''the period the period'' in third sentence.

Subsec. (b)(4). Pub. L. 103-325, Sec. 602(a)(13), substituted

''paragraph (3)'' for ''subparagraph (3)''.

Subsec. (c)(2). Pub. L. 103-325, Sec. 602(a)(14), substituted

''injunction'' for ''injuction''.

Subsec. (g)(1)(A)(ii). Pub. L. 103-325, Sec. 411(c)(2)(A),

substituted ''section 5322 or 5324 of title 31'' for ''section 5322

of title 31''.

Subsec. (g)(2). Pub. L. 103-325, Sec. 602(a)(15), substituted

''bank'' for ''depository institution'' wherever appearing.

Subsec. (o). Pub. L. 103-325, Sec. 602(a)(16), in second

sentence, substituted ''subsection (d)'' for ''subsection (b)'' and

''Board of Directors'' for ''board of directors'' in two places.

Subsec. (p). Pub. L. 103-325, Sec. 602(a)(17), substituted

''depository'' for ''banking'' wherever appearing.

Subsec. (r)(2). Pub. L. 103-325, Sec. 602(a)(18), substituted

''agent thereof'' for ''agent therof''.

Subsec. (w)(1)(B). Pub. L. 103-325, Sec. 411(c)(2)(A),

substituted ''section 5322 or 5324 of title 31'' for ''section 5322

of title 31''.

1993 - Subsec. (b)(10). Pub. L. 103-204, Sec. 25(2), added par.

(10).

Subsec. (i)(4)(B). Pub. L. 103-204, Sec. 25(1), added subpar. (B)

and struck out former subpar. (B) which read as follows: ''A

permanent or temporary injunction or restraining order shall be

granted without bond upon a prima facie showing that money damages,

restitution, or civil money penalties, as sought by such agency, is

appropriate.''

1992 - Subsec. (a)(3). Pub. L. 102-550, Sec. 1503(a)(2), inserted

''of this subsection or subsection (w) of this section'' after

''subparagraph (B)''.

Subsec. (e)(2). Pub. L. 102-550, Sec. 1504(a)(1), amended par.

(2) generally. Prior to amendment, par. (2) read as follows:

''Whenever, in the opinion of the appropriate Federal banking

agency, any director or officer of an insured depository

institution has committed any violation of the Depository

Institution Management Interlocks Act, the agency may serve upon

such director or officer a written notice of its intention to

remove him from office.''

Subsec. (g)(1). Pub. L. 102-550, Sec. 1504(a)(2), amended par.

(1) generally, subdividing existing provisions into subpars. (A) to

(D) and, in subpar. (A), including violations under section 1956,

1957, or 1960 of title 18, or section 5322 of title 31, as cause

for suspension of any institution-affiliated party.

Subsec. (i)(1). Pub. L. 102-550, Sec. 1603(d)(3), inserted

reference to section 1831p-1 of this title in two places, and

substituted ''order under any such section, or to review'' for

''order under this section, or to review''.

Pub. L. 102-550, Sec. 1603(d)(2), amended directory language of

Pub. L. 102-242, Sec. 131(c)(2)(A). See 1991 Amendment note below.

Subsec. (i)(2)(A)(ii). Pub. L. 102-550, Sec. 1603(d)(4),

substituted ''subsection (b), (c), (e), (g), or (s) of this section

or any final order under section 1831o or 1831p-1 of this title''

for ''subsection (b), (c), (e), (g), or (s) of this section, or

final order under section 1831o of this title''.

Subsec. (q). Pub. L. 102-558, Sec. 303(b)(6)(A), amended

directory language of Pub. L. 102-242, Sec. 302(e). See 1991

amendment note below. Pub. L. 102-550, Sec. 1605(a)(5)(A), which

contained an identical amendment, was repealed, effective Oct. 28,

1992, by Pub. L. 102-558, Sec. 305, set out in a Repeal of

Duplicative Provisions note under section 1815 of this title.

Subsec. (t)(2)(B). Pub. L. 102-550, Sec. 1605(a)(11)(A), inserted

''or institution-affiliated party'' after ''institution'' in two

places.

Subsec. (t)(2)(C). Pub. L. 102-550, Sec. 1605(a)(11)(B),

substituted ''the conduct or threatened conduct'' for ''the

institution's conduct or threatened conduct''.

Subsec. (t)(5)(A). Pub. L. 102-550, Sec. 1605(a)(11)(C), inserted

''or institution-affiliated party'' after ''depository

institution''.

Subsec. (w). Pub. L. 102-550, Sec. 1503(a)(1), added subsec. (w).

1991 - Subsec. (b)(8), (9). Pub. L. 102-242, Sec. 131(c)(1),

added par. (8) and redesignated former par. (8) as (9).

Subsec. (i)(1). Pub. L. 102-242, Sec. 131(c)(2)(A), as amended by

Pub. L. 102-550, Sec. 1603(d)(2), inserted ''or under section 1831o

of this title'' after first and second references to ''section''.

Subsec. (i)(2)(A)(ii). Pub. L. 102-242, Sec. 131(c)(2)(B),

inserted '', or final order under section 1831o of this title''

after ''section''.

Subsec. (q). Pub. L. 102-242, Sec. 302(e)(5), as renumbered by

Pub. L. 102-558, Sec. 303(b)(6)(A), substituted ''assessment with

respect to the deposits'' for ''assessment upon the deposits''.

Subsec. (t). Pub. L. 102-242, Sec. 307, amended subsec. (t)

generally, substituting present provisions for provisions relating

to authority of Board to take enforcement action against savings

associations.

1990 - Subsec. (b)(4). Pub. L. 101-647, Sec. 2596(a)(2),

substituted ''subsections (c) through (s) and subsection (u) of

this section'' for ''subsections (c), (d), (h), (i), (k), (l), (m),

and (n) of this section''.

Subsec. (b)(6). Pub. L. 101-647, Sec. 2596(a)(1), inserted ''or

remedy'' after ''to correct''.

Subsec. (c)(1). Pub. L. 101-647, Sec. 2596(b), inserted ''or

remedy'' after ''to prevent'' and substituted ''(b)(6)'' for

''(b)(6)(B)''.

Subsec. (h)(1). Pub. L. 101-647, Sec. 2547(a)(2), struck out

after first sentence ''Such hearing shall be private, unless the

appropriate Federal banking agency, in its discretion, after fully

considering the views of the party afforded the hearing, determines

that a public hearing is necessary to protect the public

interest.''

Subsec. (i)(4). Pub. L. 101-647, Sec. 2521(b)(1), added par. (4).

Subsec. (u). Pub. L. 101-647, Sec. 2547(a)(1), amended subsec.

(u) generally. Prior to amendment, subsec. (u) read as follows:

''(1) In general. - The appropriate Federal banking agency shall

publish and make available to the public -

''(A) any final order issued with respect to any administrative

enforcement proceeding initiated by such agency under this

section or any other provision of law; and

''(B) any modification to or termination of any final order

described in subparagraph (A) of this paragraph.

''(2) Delay of publication under exceptional circumstances. - If

the appropriate Federal banking agency makes a determination in

writing that the publication of any final order pursuant to

paragraph (1) would seriously threaten the safety or soundness of

an insured depository institution, such agency may delay the

publication of such order for a reasonable time.''

Subsec. (v). Pub. L. 101-647, Sec. 2532(a), added subsec. (v).

1989 - Pub. L. 101-73, Sec. 201(a), substituted references to

insured depository institutions for references to insured banks

wherever appearing in this section.

Subsec. (a). Pub. L. 101-73, Sec. 926(1), inserted heading.

Subsec. (a)(1) to (3). Pub. L. 101-73, Sec. 926(1), added pars.

(1) to (3) and struck out first four sentences which read as

follows: ''Any insured bank (except a national member bank, a

foreign bank having an insured branch which is a Federal branch, a

foreign bank having an insured branch which is required to be

insured under section 3104(a) or (b) of this title, or State member

bank) may, upon not less than ninety days' written notice to the

Corporation, terminate its status as an insured bank. Whenever the

Board of Directors shall find that an insured bank or its directors

or trustees have engaged or are engaging in unsafe or unsound

practices in conducting the business of such bank, or is in an

unsafe or unsound condition to continue operations as an insured

bank, or violated an applicable law, rule, regulation or order, or

any condition imposed in writing by the Corporation in connection

with the granting of any application or other request by the bank,

or any written agreement entered into with the Corporation the

Board of Directors shall first give to the Comptroller of the

Currency in the case of a national bank or a district bank, to the

Federal Home Loan Bank Board in the case of an insured Federal

savings bank, to the authority having supervision of the bank in

the case of a State bank, and to the Board of Governors of the

Federal Reserve System in the case of a State member bank, a

statement with respect to such practices or violations for the

purpose of securing the correction thereof and shall give a copy

thereof to the bank. Unless such correction shall be made within

one hundred and twenty days, or such shorter period not less than

twenty days fixed by the Corporation in any case where the Board of

Directors in its discretion has determined that the insurance risk

of the Corporation is unduly jeopardized, or fixed by the

Comptroller of the Currency in the case of a national bank, or the

Federal Home Loan Bank Board in the case of an insured Federal

savings bank, or the State authority in the case of a State bank,

or Board of Governors of the Federal Reserve System in the case of

a State member bank as the case may be, the Board of Directors, if

it shall determine to proceed further, shall give to the bank not

less than thirty days' written notice of intention to terminate the

status of the bank as an insured bank, and shall fix a time and

place for a hearing before the Board of Directors or before a

person designated by it to conduct such hearing, at which evidence

may be produced, and upon such evidence the Board of Directors

shall make written findings which shall be conclusive. If the

Board of Directors shall find that any unsafe or unsound practice

or condition or violation specified in such statement has been

established and has not been corrected within the time above

prescribed in which to make such corrections, the Board of

Directors may order that the insured status of the bank be

terminated on a date subsequent to such finding and to the

expiration of the time specified in such notice of intention.''

Subsec. (a)(4). Pub. L. 101-73, Sec. 926(2), designated fifth

sentence as par. (4) and inserted heading.

Pub. L. 101-73, Sec. 901(d), substituted ''depository

institution'' for ''bank''.

Subsec. (a)(5). Pub. L. 101-73, Sec. 926(3), designated sixth

sentence as par. (5), inserted heading, and substituted ''Any

insured depository institution whose insured status'' for ''Any

insured bank whose insured status''.

Subsec. (a)(6). Pub. L. 101-73, Sec. 926(4), designated seventh

sentence as par. (6) and inserted heading.

Pub. L. 101-73, Sec. 901(d), substituted ''depository

institution'' for ''bank'' wherever appearing.

Subsec. (a)(7). Pub. L. 101-73, Sec. 926(5), (6), designated last

three sentences as par. (7), inserted heading, substituted ''of at

least 6 months or up to 2 years, within the discretion of the Board

of Directors'' for first reference to ''of two years'', and ''the

period referred to in the 1st sentence'' for second reference to

''of two years'', and struck out ''of two years'' after ''within

such period''.

Pub. L. 101-73, Sec. 901(d), substituted ''depository

institution'' for ''bank'' wherever appearing.

Subsec. (a)(8) to (10). Pub. L. 101-73, Sec. 926(7), added pars.

(8) to (10).

Subsec. (b)(1). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank'' wherever appearing.

Pub. L. 101-73, Sec. 901(b)(1)(A)(i), (B), substituted references

to institution-affiliated parties for references to directors,

officers, employees, agents, or other persons participating in the

conduct of banks.

Pub. L. 101-73, Sec. 901(b)(1)(A)(ii), which directed that

''institution-affiliated parties'' be substituted for ''directors,

officers, employees, agents, or other persons participating in the

conduct of the affairs of such bank'', was executed by making the

substitution for ''directors, officers, employees, agents, and

other persons participating in the conduct of the affairs of such

bank'', as the probable intent of Congress.

Subsec. (b)(2). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank''.

Subsec. (b)(3). Pub. L. 101-73, Sec. 902(a)(1)(A), substituted

''subsections (c) through (s) and subsection (u)'' for

''subsections (c) through (f) and (h) through (n)''.

Subsec. (b)(4). Pub. L. 101-73, Sec. 902(a)(1)(B), which directed

the substitution of ''subsections (c) through (s) and subsection

(u)'' for ''subsections (c) through (f) and (h) through (n)'',

could not be executed because the words ''subsections (c) through

(f) and (h) through (n)'' did not appear. See 1990 Amendment note

above.

Subsec. (b)(6) to (8). Pub. L. 101-73, Sec. 902(a)(1)(C), added

pars. (6) to (8).

Subsec. (c)(1). Pub. L. 101-73, Sec. 902(a)(2)(A), substituted

''insolvency or significant dissipation'' for ''insolvency or

substantial dissipation'', struck out ''seriously'' before ''weaken

the condition of'' and before ''prejudice the interests of'', and

inserted after first sentence ''Such order may include any

requirement authorized under subsection (b)(6)(B) of this

section''.

Pub. L. 101-73, Sec. 901(d), substituted ''depository

institution'' for ''bank'' wherever appearing.

Pub. L. 101-73, Sec. 901(b)(1)(B), substituted references to

institution-affiliated parties for references to directors,

officers, employees, agents or other persons participating in the

conduct of the affairs of banks.

Subsec. (c)(2). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank'' wherever appearing.

Pub. L. 101-73, Sec. 901(b)(1)(B), substituted references to

institution-affiliated parties for references to directors,

officers, employees, agents or other persons participating in the

conduct of the affairs of banks.

Subsec. (c)(3). Pub. L. 101-73, Sec. 902(a)(2)(B), added par.

(3).

Subsec. (d). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank''.

Subsec. (e)(1). Pub. L. 101-73, Sec. 903(a)(1), amended par. (1)

generally, by, among other changes, giving existing provisions

subpar. designations, and by adding as conditions for removal of a

party a violation of any condition imposed by writing in connection

with a grant of any application or request, and violation of any

written agreement between such depository institution and agency.

Subsec. (e)(2). Pub. L. 101-73, Sec. 903(a)(2), redesignated par.

(3) as (2) and struck out former par. (2) which read as follows:

''Whenever, in the opinion of the appropriate Federal banking

agency, any director or officer of an insured bank, by conduct or

practice with respect to another insured bank or other business

institution which resulted in substantial financial loss or other

damage, has evidenced either his personal dishonesty or a willful

or continuing disregard for its safety and soundness, and, in

addition, has evidenced his unfitness to continue as a director or

officer and, whenever, in the opinion of the appropriate Federal

banking agency, any other person participating in the conduct of

the affairs of an insured bank, by conduct or practice with respect

to such bank or other insured bank or other business institution

which resulted in substantial financial loss or other damage, has

evidenced either his personal dishonesty or a willful or continuing

disregard for its safety and soundness, and, in addition, has

evidenced his unfitness to participate in the conduct of the

affairs of such insured bank, the agency may serve upon such

director, officer, or other person a written notice of its

intention to remove him from office or to prohibit his further

participation in any manner in the conduct of the affairs of the

bank.''

Subsec. (e)(3). Pub. L. 101-73, Sec. 903(a)(2), added par. (3).

Former par. (3) redesignated (2).

Subsec. (e)(4). Pub. L. 101-73, Sec. 903(a)(2), redesignated par.

(5) as (4) and struck out former par. (4) which read as follows:

''In respect to any director or officer of an insured bank or any

other person referred to in paragraph (1), (2), or (3) of this

subsection, the appropriate Federal banking agency may, if it deems

it necessary for the protection of the bank or the interests of its

depositors, by written notice to such effect served upon such

director, officer, or other person, suspend him from office or

prohibit him from further participation in any manner in the

conduct of the affairs of the bank. Such suspension or prohibition

shall become effective upon service of such notice and, unless

stayed by a court in proceedings authorized by subsection (f) of

this section, shall remain in effect pending the completion of the

administrative proceedings pursuant to the notice served under

paragraph (1), (2), or (3) of this subsection and until such time

as the agency shall dismiss the charges specified in such notice,

or, if an order of removal or prohibition is issued against the

director or officer or other person, until the effective date of

any such order. Copies of any such notice shall also be served

upon the bank of which he is a director or officer or in the

conduct of whose affairs he has participated.''

Pub. L. 101-73, Sec. 901(b)(1)(C), substituted references to

institution-affiliated parties for references to directors,

officers, or other persons.

Pub. L. 101-73, Sec. 901(d), substituted reference to depository

institutions for reference to banks.

Subsec. (e)(5). Pub. L. 101-73, Sec. 903(a)(2), redesignated par.

(6) as (5). Former par. (5) redesignated (4).

Pub. L. 101-73, Sec. 901(b)(1)(D), inserted ''within the term

'institution-affiliated party' '' after ''the term 'officer' '',

and inserted ''within the term 'institution-affiliated party' as

used in this subsection'' after ''the term 'director' ''.

Pub. L. 101-73, Sec. 901(d), substituted reference to depository

institution for reference to bank.

Subsec. (e)(6). Pub. L. 101-73, Sec. 903(a)(2), (3), added par.

(6) and redesignated former par. (6) as (5).

Subsec. (e)(7). Pub. L. 101-73, Sec. 904(a), added par. (7).

Subsec. (f). Pub. L. 101-73, Sec. 903(a)(4)(A), substituted

''(e)(3)'' for ''(e)(4)'' and ''(e)(1) or (e)(2)'' for ''(e)(1),

(e)(2), or (e)(3)''.

Pub. L. 101-73, Sec. 901(b)(1)(E), substituted ''any

institution-affiliated party'' and ''such party'' for ''any

director, officer, or other person'' and ''such director, officer,

or other person'', respectively, wherever appearing.

Pub. L. 101-73, Sec. 901(d), substituted ''depository

institution'' for ''bank''.

Subsec. (g)(1). Pub. L. 101-73, Sec. 906(a), struck out

''authorized by a United States attorney'' after ''information,

indictment, or complaint'', and substituted ''or an agreement to

enter a pre-trial diversion or other similar program'' for ''with

respect to such crime''.

Pub. L. 101-73, Sec. 903(a)(4)(B), substituted ''(1), (2), or

(3)'' for ''(1), (2), (3), or (4)''.

Pub. L. 101-73, Sec. 901(d), substituted references to depository

institutions for references to banks wherever appearing.

Pub. L. 101-73, Sec. 901(b)(1)(F)(i), substituted

''institution-affiliated party'' for ''director or officer of an

insured bank, or other person participating in the conduct of the

affairs of such bank''.

Pub. L. 101-73, Sec. 901(b)(1)(F)(v), which directed the

substitution of ''party'' for ''director, officer or other

person'', could not be executed, because the phrase did not appear.

Pub. L. 101-73, Sec. 901(b)(1)(F)(ii)-(iv), (vi), substituted

''such party'' for ''the individual'' wherever appearing, ''such

party'' for ''such director, officer, or other person'' wherever

appearing, ''such party'' for ''him'' wherever appearing, and

''whereupon such party (if a director or an officer)'' for

''whereupon such director or officer''.

Subsec. (g)(2). Pub. L. 101-73, Sec. 901(d), substituted

references to depository institutions for references to banks

wherever appearing.

Subsec. (g)(3). Pub. L. 101-73, Sec. 901(d), substituted

references to depository institutions for references to banks

wherever appearing.

Pub. L. 101-73, Sec. 901(b)(1)(G), substituted ''the

institution-affiliated party concerned'' for ''the director,

officer, or other person concerned'' and substituted ''such party''

for ''such individual'', for ''the concerned director, officer, or

other person'', and for any other reference to the director,

officer or other person.

Subsec. (h)(1). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank''.

Subsec. (h)(2). Pub. L. 101-73, Sec. 920(a), substituted ''Any

party to any proceeding under paragraph (1)'' for ''Any party to

the proceeding, or any person required by an order issued under

this section to cease and desist from any of the violations or

practices stated therein,''.

Pub. L. 101-73, Sec. 901(d), substituted ''depository

institution'' for ''bank'' wherever appearing.

Pub. L. 101-73, Sec. 901(b)(1)(H), substituted

''institution-affiliated party'' for ''director or officer or other

person''.

Subsec. (i)(1). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank''.

Subsec. (i)(2). Pub. L. 101-73, Sec. 907(a), amended par. (2)

generally, revising and restating as subpars. (A) to (K) provisions

of former cls. (i) to (vii).

Subsec. (i)(3). Pub. L. 101-73, Sec. 905(a), added par. (3).

Subsec. (j). Pub. L. 101-73, Sec. 908(a), amended subsec. (j)

generally. Prior to amendment, subsec. (j) read as follows: ''Any

director or officer, or former director or officer of an insured

bank, or any other person, against whom there is outstanding and

effective any notice or order (which is an order which has become

final) served upon such director, officer, or other person under

subsections (e)(4), (e)(5), or (g) of this section, and who (i)

participates in any manner in the conduct of the affairs of the

bank involved, or directly or indirectly solicits or procures, or

transfers or attempts to transfer, or votes or attempts to vote,

any proxies, consents, or authorizations in respect of any voting

rights in such bank, or (ii) without the prior written approval of

the appropriate Federal banking agency, votes for a director,

serves or acts as a director, officer, or employee of any bank,

shall upon conviction be fined not more than $5,000 or imprisoned

for not more than one year, or both.''

Subsec. (k). Pub. L. 101-73, Sec. 920(c), struck out subsec. (k)

which defined the terms ''cease-and-desist order which has become

final'', ''order which has become final'', and ''violation'', as

those terms were used in this section.

Subsec. (l). Pub. L. 101-73, Sec. 901(d), substituted ''State

depository institution'' for ''State bank''.

Pub. L. 101-73, Sec. 901(b)(1)(I), substituted

''institution-affiliated party'' for ''director or officer thereof

or other person participating in the conduct of its affairs''.

Subsec. (m). Pub. L. 101-73, Sec. 901(b)(1)(J), substituted

''institution-affiliated party'' for ''director or officer or other

person participating in the conduct of its affairs''.

Subsec. (n). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank''.

Subsec. (o). Pub. L. 101-73, Sec. 201(b), substituted ''Director

of the Office of Thrift Supervision'' for ''Federal Home Loan Bank

Board''.

Subsec. (q). Pub. L. 101-73, Sec. 901(d), substituted

''depository institution'' for ''bank'' wherever appearing and

''depository institutions'' for ''banks''.

Subsec. (s). Pub. L. 101-73, Sec. 901(d), substituted references

to depository institutions for references to banks wherever

appearing.

Subsec. (t). Pub. L. 101-73, Sec. 912, added subsec. (t).

Subsec. (u). Pub. L. 101-73, Sec. 913(a), added subsec. (u).

1986 - Subsec. (i)(2)(i). Pub. L. 99-570, Sec. 1359(a)(2),

inserted reference to subsec. (s) of this section.

Subsec. (s). Pub. L. 99-570, Sec. 1359(a)(1), added subsec. (s).

1982 - Subsec. (a). Pub. L. 97-320, Sec. 113(g), inserted ''to

the Federal Home Loan Bank Board in the case of an insured Federal

savings bank,'' after ''national bank or a district bank,'' and

''or the Federal Home Loan Bank Board in the case of an insured

Federal savings bank,'' after ''Currency in the case of a national

bank,''.

Subsec. (b)(3). Pub. L. 97-320, Sec. 425(b), substituted

''25(a)'' for ''25A''.

Subsec. (b)(4). Pub. L. 97-320, Sec. 425(c), which directed the

amendment of subsec. (b) by adding a new par. (4) at end, was

executed (as the probable intent of Congress) as a general

amendment of existing par. (4), as added by Pub. L. 95-369, the two

pars. (4) being identical except that the new par. (4) refers to

''purposes of this paragraph'' rather than ''purposes of this

subparagraph''.

Subsec. (b)(5). Pub. L. 97-320, Sec. 404(c), added par. (5).

Subsec. (e)(3). Pub. L. 97-320, Sec. 427(d)(1)(A), added par.

(3). Former par. (3) redesignated (4).

Subsec. (e)(4). Pub. L. 97-320, Sec. 427(d)(1)(A), (B),

redesignated former par. (3) as (4) and inserted references to par.

(3) of this subsection in two places. Former par. (4) redesignated

(5).

Subsec. (e)(5), (6). Pub. L. 97-320, Sec. 427(d)(1)(A),

redesignated former pars. (4) and (5) as (5) and (6), respectively.

Subsec. (f). Pub. L. 97-320, Sec. 427(d)(2), substituted

references to ''subsection (e)(4)'' for ''subsection (e)(5) or

(e)(7)'' and ''subsection (e)(1), (e)(2), or (e)(3)'' for

''subsection (e)(1), (e)(3), or (e)(7)''.

Subsec. (g)(1). Pub. L. 97-320, Sec. 427(d)(3), in penultimate

sentence, included reference to par. (4) of subsec. (e) of this

section.

Subsec. (i)(2)(i). Pub. L. 97-320, Sec. 424(c), (d)(6), inserted

proviso giving agency discretionary authority to compromise, etc.,

any civil money penalty imposed under such authority, and

substituted ''may be assessed'' for ''shall be assessed''.

Subsec. (i)(2)(iv). Pub. L. 97-424(e) substituted ''twenty days

from the service'' for ''ten days from the date''.

Subsec. (j). Pub. L. 97-320, Sec. 427(d)(4), struck out reference

to subsec. (e)(3) and included reference to subsec. (e)(5) of this

section.

Subsec. (o). Pub. L. 97-320, Sec. 113(h), inserted provision that

whenever the insured status of an insured Federal savings bank

shall be terminated by action of the Board of Directors, the

Federal Home Loan Bank Board shall appoint a receiver for the bank,

which shall be the Corporation.

Subsec. (q). Pub. L. 97-320, Sec. 433(a), struck out item (3)

provisions requiring the assuming or resulting bank to give notice

of an assumption to each of the depositors of the bank whose

liabilities are assumed within thirty days after such assumption

takes effect.

1978 - Subsec. (a). Pub. L. 95-369, Sec. 6(c)(14), inserted ''a

foreign bank having an insured branch which is a Federal branch, a

foreign bank having an insured branch which is required to be

insured under section 3104(a) or (b) of this title'' after

''(except a national member bank''.

Subsec. (b)(1), (2). Pub. L. 95-630, Sec. 107(a)(1), extended

coverage of par. (1) to include directors, officers, employees,

agents, or other persons participating in the conduct of the

affairs of an insured bank or a bank which has insured deposits,

and reenacted par. (2) without change.

Subsec. (b)(3). Pub. L. 95-630, Sec. 107(b), substituted

''subsections (c) through (f) and (h) through (n) of this section''

for ''subsections (c), (d), (h), (i), (k), (l), (m), and (n) of

this section'' and inserted provisions relating to any organization

organized and operated under section 25A of the Federal Reserve Act

or operating under section 25 of the Federal Reserve Act and

provisions relating to the issuance of a notice of charges or

cease-and-desist order against a bank holding company or subsidiary

by any Federal banking agency other than the Board of Governors of

the Federal Reserve System.

Subsec. (b)(4). Pub. L. 95-369, Sec. 11, added par. (4).

Subsec. (c). Pub. L. 95-630, Sec. 107(c)(1), in pars. (1) and (2)

inserted references to any director, officer, employee, agent, or

other person participating in the conduct of the affairs of the

bank and in par. (1) inserted ''prior to the completion of the

proceedings conducted pursuant to paragraph (1) of subsection (b)

of this section'' after ''interests of its depositors'' and ''and

to take affirmative action to prevent such insolvency, dissipation,

condition, or prejudice pending completion of such proceedings''

after ''violation or practice''.

Subsec. (e). Pub. L. 95-630, Sec. 107(d)(1), 208(a), generally

revised and condensed the provisions relating to the suspension and

removal of bank directors and officers, consolidated procedures

relating to the certification of facts to the Board of Governors of

the Federal Reserve System by the Comptroller of the Currency,

substituted references to insured banks for references to insured

State banks (other than a District Bank), and inserted provisions

defining ''officer'' and ''director'' for the purpose of enforcing

any law, rule, etc., in connection with an interlocking

relationship.

Subsec. (g). Pub. L. 95-630, Sec. 111(a)(1), among other changes,

inserted in par. (1) '', if continued service or participation by

the individual may pose a threat to the interests of the bank's

depositors or may threaten to impair public confidence in the

bank'' after ''agency may'' in two places, inserted provision that

any notice of suspension or order of removal issued under this

paragraph remain effective and outstanding until the completion of

any hearing or appeal authorized under paragraph (3) hereof unless

terminated by the agency, and added par. (3).

Subsec. (h)(1). Pub. L. 95-630, Sec. 111(a)(2), inserted ''(other

than the hearing provided for in subsection (g)(3) of this

section)'' after ''provided for in this section''.

Subsec. (i). Pub. L. 95-630, Sec. 107(e)(1), designated existing

provisions as par. (1) and added par. (2).

Subsec. (j). Pub. L. 95-630, Sec. 111(a)(3), substituted

''subsections (e)(3), (e)(4)'' for ''subsections (e)(5), (e)(7),

(e)(8)''.

Subsec. (k). Pub. L. 95-630, Sec. 111(a)(4), substituted

''paragraph (1) or (3) of subsection (g)'' for ''paragraph (1) of

subsection (g)''.

Subsec. (n). Pub. L. 95-630, Sec. 111(a)(5), inserted provision

creating a criminal penalty for a willful failure or refusal to

attend and testify or to answer any lawful inquiry or to produce

books, papers, etc. in obedience to the subpoena of the appropriate

Federal banking agency.

Pub. L. 95-630, Sec. 303, inserted ''or in connection with any

claim for insured deposits or any examination or investigation

under section 1820(c) of this title,'' after ''proceeding under

this section,'', ''examination, or investigation or considering the

claim for insured deposits,'' after ''conducting the proceeding,'',

and ''such agency or any'' before ''party to proceedings'' and

substituted ''any such proceedings, claims, examinations, or

investigations'' for ''any such proceedings'' and ''subpenaed under

this subsection'' for ''subpenaed under this section''.

Subsec. (q). Pub. L. 95-630, Sec. 304, among other changes,

substituted provisions requiring the assuming or resulting bank to

give notice of an assumption to each of the depositors of the bank

whose liabilities are so assumed within thirty days after such

assumption takes effect for provisions requiring the bank whose

liabilities are being assumed to give notice of such assumption to

its depositors within thirty days after such assumption takes

effect, by publication or by any reasonable means, in accordance

with regulations to be prescribed by the Board of Directors.

Subsec. (r). Pub. L. 95-369, Sec. 6(c)(15), added subsec. (r).

1974 - Subsec. (b)(3). Pub. L. 93-495 added par. (3).

1966 - Subsec. (a). Pub. L. 89-695, Sec. 204, enlarged the

authority of the Corporation to institute involuntary termination

proceedings against an insured bank which had engaged in or whose

directors or trustees had engaged in, rather than merely continued

unsafe or unsound practices, or was in an unsafe or unsound

condition to continue operations as an insured bank, or had

violated any law, rule, regulation or order, or any condition

imposed in writing by the Corporation or any written agreement

entered into with the Corporation; made it clear that the

Corporation would be required to give the State authority a copy of

the statement dealing the practices or violations where the State

bank involved was a State member bank; provided for an alternative

and shortened correction period of not less than twenty days in

those cases where the Board of Directors of the Corporation on its

discretion determined that the insurance risk of the Corporation

was unduly jeopardized; provided the State authority with power to

shorten the correction period in those cases involving State banks

whether member or nonmember banks; transposed the position of the

fourth and fifth sentences; and provided a bank whose insured

status had been terminated with right of judicial review to the

extent provided in subsec. (h) of this section.

Subsecs. (b) to (q). Pub. L. 89-695, Sec. 202, added subsecs. (b)

to (n) and redesignated former subsecs. (b) to (d) as (o) to (q),

respectively.

-CHANGE-

CHANGE OF NAME

Oversight Board redesignated Thrift Depositor Protection

Oversight Board, effective Feb. 1, 1992, see section 302(a) of Pub.

L. 102-233, set out as a note under section 1441a of this title.

Thrift Depositor Protection Oversight Board abolished, see section

14(a)-(d) of Pub. L. 105-216, set out as a note under section 1441a

of this title.

-MISC4-

EFFECTIVE DATE OF 1992 AMENDMENTS

Amendment by section 303(b)(6)(A) of Pub. L. 102-558 deemed to

have become effective Mar. 1, 1992, see section 304 of Pub. L.

102-558, set out as a note under section 2062 of Title 50,

Appendix, War and National Defense.

Amendment by sections 1603(d)(2)-(4) and 1605(a)(5)(A), (11) of

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, except that where amendment is to any provision

of law added or amended by Pub. L. 102-242 effective after Dec. 19,

1992, then amendment by Pub. L. 102-550 effective on effective date

of amendment by Pub. L. 102-242, see section 1609 of Pub. L.

102-550, set out as a note under section 191 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by section 131(c)(1), (2) of Pub. L. 102-242 effective

1 year after Dec. 19, 1991, see section 131(f) of Pub. L. 102-242,

set out as a note under section 1464 of this title.

Amendment by section 302(e)(4) of Pub. L. 102-242 effective on

earlier of 180 days after date on which final regulations

promulgated in accordance with section 302(c) of Pub. L. 102-242,

set out as a note under section 1817 of this title, become

effective or Jan. 1, 1994, see section 302(g) of Pub. L. 102-242,

set out as a note under section 1817 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 2547(a)(3) of Pub. L. 101-647 provided that: ''The

amendment made by paragraph (1) (amending this section) shall apply

with respect to all written agreements which are entered into and

all written statements which become effective after the date of the

enactment of this Act (Nov. 29, 1990).''

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 903(a) of Pub. L. 101-73 applicable with

respect to violations committed and activities engaged in after

Aug. 9, 1989, see section 903(e) of Pub. L. 101-73, set out as a

note under section 1786 of this title.

Amendment by section 907(a) 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 REGULATIONS PRESCRIBED UNDER 1986 AMENDMENT

The regulations required to be prescribed under amendment by Pub.

L. 99-570 effective at end of 3-month period beginning on Oct. 27,

1986, see section 1364(e) of Pub. L. 99-570, set out as a note

under section 1464 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-630, except for amendment by section

107(e)(1), effective upon expiration of 120 days after Nov. 10,

1978, see section 2101 of Pub. L. 95-630, set out as an Effective

Date note under section 375b of this title.

Amendment by section 107(e)(1) 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.

EXPIRATION OF 1966 AMENDMENT

Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84 Stat. 1811,

repealed section 401 of Pub. L. 89-695 which had provided that:

''The provisions of titles I and II of this Act (amending sections

1464, 1730, 1813, 1817 to 1820 and repealing section 77 of this

title and enacting provisions set out as notes under sections 1464,

1730, and 1813 of this title) and any provisions of law enacted by

said titles shall be effective only during the period ending at the

close of June 30, 1972. Effective upon the expiration of such

period, each provision of law amended by either of such titles is

further amended to read as it did immediately prior to the

enactment of this Act (Oct. 16, 1966) and each provision of law

repealed by either of such titles is reenacted.''

IMPROVED ADMINISTRATIVE HEARINGS AND PROCEDURES FOR FEDERAL BANKING

AGENCIES AND NATIONAL CREDIT UNION ADMINISTRATION BOARD

Section 916 of Pub. L. 101-73 provided that before close of

24-month period beginning on Aug. 9, 1989, appropriate Federal

banking agencies (as defined in section 3(q) of the Federal Deposit

Insurance Act (12 U.S.C. 1813(q))) and National Credit Union

Administration Board jointly establish their own pool of

administrative law judges and develop a set of uniform rules and

procedures for administrative hearings, including provisions for

summary judgment rulings where there are no disputes as to material

facts of the case.

TASK FORCE STUDY OF DELEGATION OF ENFORCEMENT ACTIONS

Section 917 of Pub. L. 101-73 directed appropriate Federal

banking agencies (as defined in section 1813(q) of this title and

National Credit Union Administration Board to create a joint task

force to study desirability and feasibility of delegating

investigation and enforcement authority to their regional or

district offices or banks, provided for composition of task force,

and required that not later than Sept. 30, 1990, task force report

to Congress its findings and recommendations, together with

responses of Comptroller of the Currency, Director of Office of

Thrift Supervision, Chairperson of Federal Deposit Insurance

Corporation, Chairman of Board of Governors of Federal Reserve

System, and Chairman of National Credit Union Administration.

CREDIT STANDARDS ADVISORY COMMITTEE

Section 1205 of Pub. L. 101-73, as amended by Pub. L. 102-242,

title IV, Sec. 422, Dec. 19, 1991, 105 Stat. 2377, provided that:

''(a) Establishment. - There is hereby established the Credit

Standards Advisory Committee (in this section referred to as the

'Committee').

''(b) Membership. -

''(1) Appointment. - The Committee shall consist of 11 members,

as follows:

''(A) The Chairman of the Board of Governors of the Federal

Reserve System, or the Chairman's designee.

''(B) The Director of the Office of Thrift Supervision, or

the Director's designee.

''(C) The Chairperson of the Federal Deposit Insurance

Corporation, or the Chairperson's designee.

''(D) The Comptroller of the Currency, or the Comptroller's

designee.

''(E) The Chairman of the National Credit Union

Administration, or the Chairman's designee.

''(F) 6 members of the public appointed by the President who

are knowledgeable with the credit standards and lending

practices of insured depository institutions, no more than 3 of

whom shall be from the same political party.

''(2) Terms. - Each member appointed under paragraph (1)(F)

shall serve for the life of the Committee.

''(3) Chairperson. - The Chairperson of the Committee shall be

designated by the President from among the members appointed

under paragraph (1)(F).

''(4) Vacancies. - Any vacancy on the Committee shall be filled

in the manner in which the original appointment was made.

''(5) Pay and expenses. - Members of the Committee shall serve

without pay but each member of the Committee shall be reimbursed

for expenses incurred in connection with attendance of such

members at meetings of the Committee. All expenses of the

Committee shall be shared on a pro rata basis, based upon each

agency's total budget for the preceding year by the Federal

financial regulators specified in subparagraphs (A) through (E)

of paragraph (1).

''(6) Meetings. - The Committee shall meet, not less frequently

than quarterly, at the call of the chairperson or a majority of

the members.

''(c) Duties of the Committee. - The Committee shall do the

following:

''(1) Review credit standards, lending practices, and

supervision by federal regulators. - Review the credit standards

and lending practices of insured depository institutions and the

supervision of such standards and practices by the Federal

financial regulators.

''(2) Prepare recommendations. - Prepare written comments and

recommendations for the Federal financial regulators to ensure

that insured depository institutions adhere to prudential credit

standards and lending practices that are consistent for all

insured depository institutions, to the maximum extent possible.

''(3) Monitor credit standards, lending practices, and

supervision by federal regulators. - Monitor the credit standards

and lending practices of insured depository institutions, and the

supervision of such standards and practices by the Federal

financial regulators, to ensure that insured depository

institutions can meet the demands of a modern and globally

competitive financial world.

''(d) Annual Report. -

''(1) Required. - Not later than January 30 of each year, the

Committee shall submit a report to the Committee on Banking,

Finance and Urban Affairs (now Committee on Financial Services)

of the House of Representatives and the Committee on Banking,

Housing, and Urban Affairs of the Senate.

''(2) Contents. - The report required by paragraph (1) shall

describe the activities of the Committee during the preceding

year and the reports and recommendations made by the Committee to

the Federal financial regulators.

''(e) Conflict of Interest Guidelines. - The Committee shall

prescribe such guidelines as the Committee determines to be

appropriate to avoid conflicts of interest with respect to the

disclosure to and use by members of the Committee of information

relating to insured depository institutions and the Federal

financial regulators.

''(f) Federal Advisory Committee Act Does not Apply. - The

Federal Advisory Committee Act (5 App. U.S.C.) shall not apply with

respect to the Committee.''

(For termination, effective May 15, 2000, of reporting provisions

under 1205(d) of Pub. L. 101-73, set out above, see section 3003 of

Pub. L. 104-66, as amended, set out as a note under section 1113 of

Title 31, Money and Finance, and page 159 of House Document No.

Pub. L. 103-7.)

CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED,

MODIFIED, OR AFFECTED

Nothing contained in sections 202 and 204 of Pub. L. 89-695

amending this section to be construed as repealing, modifying, or

affecting section 1829 of this title, see section 206 of Pub. L.

89-695, set out as a note under section 1813 of this title.

-TRANS-

ABOLITION OF RECONSTRUCTION FINANCE CORPORATION

Section 6(a) of Reorg. Plan No. 1 of 1957, eff. June 30, 1957,

22 F.R. 4633, 71 Stat. 647, set out as a note under section 601 of

Title 15, Commerce and Trade, abolished the Reconstruction Finance

Corporation.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 92a, 93, 164, 205, 324,

371b-2, 375a, 504, 505, 1422b, 1464, 1467, 1467a, 1468, 1786, 1813,

1817, 1820, 1821, 1828, 1831b, 1831g, 1831m, 1831m-1, 1831o,

1831p-1, 1835a, 1841, 1843, 1847, 1848a, 1867, 1972, 2804, 2805,

3108, 3110, 3349, 3420, 3907, 3908, 3909, 4009, 4309, 4717, 4909 of

this title; title 15 sections 57a, 78o-4, 78o-5, 78q-1, 1607,

1681s, 1691c, 1692l, 1693o, 6505, 6805, 6822; title 18 section 981;

title 31 sections 3121, 9110.

-CITE-

12 USC Sec. 1819 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1819. Corporate powers

-STATUTE-

(a) In general

Upon June 16, 1933, the Corporation shall become a body corporate

and as such shall have power -

First. To adopt and use a corporate seal.

Second. To have succession until dissolved by an Act of Congress.

Third. To make contracts.

Fourth. To sue and be sued, and complain and defend, by and

through its own attorneys, in any court of law or equity, State or

Federal.

Fifth. To appoint by its Board of Directors such officers and

employees as are not otherwise provided for in this chapter, to

define their duties, fix their compensation, require bonds of them

and fix the penalty thereof, and to dismiss at pleasure such

officers or employees. Nothing in this chapter or any other Act

shall be construed to prevent the appointment and compensation as

an officer or employee of the Corporation of any officer or

employee of the United States in any board, commission, independent

establishment, or executive department thereof.

Sixth. To prescribe, by its Board of Directors, bylaws not

inconsistent with law, regulating the manner in which its general

business may be conducted, and the privileges granted to it by law

may be exercised and enjoyed.

Seventh. To exercise by its Board of Directors, or duly

authorized officers or agents, all powers specifically granted by

the provisions of this chapter, and such incidental powers as shall

be necessary to carry out the powers so granted.

Eighth. To make examinations of and to require information and

reports from depository institutions, as provided in this chapter.

Ninth. To act as receiver.

Tenth. To prescribe by its Board of Directors such rules and

regulations as it may deem necessary to carry out the provisions of

this chapter or of any other law which it has the responsibility of

administering or enforcing (except to the extent that authority to

issue such rules and regulations has been expressly and exclusively

granted to any other regulatory agency).

(b) Agency authority

(1) Status

The Corporation, in any capacity, shall be an agency of the

United States for purposes of section 1345 of title 28 without

regard to whether the Corporation commenced the action.

(2) Federal court jurisdiction

(A) In general

Except as provided in subparagraph (D), all suits of a civil

nature at common law or in equity to which the Corporation, in

any capacity, is a party shall be deemed to arise under the

laws of the United States.

(B) Removal

Except as provided in subparagraph (D), the Corporation may,

without bond or security, remove any action, suit, or

proceeding from a State court to the appropriate United States

district court before the end of the 90-day period beginning on

the date the action, suit, or proceeding is filed against the

Corporation or the Corporation is substituted as a party.

(C) Appeal of remand

The Corporation may appeal any order of remand entered by any

United States district court.

(D) State actions

Except as provided in subparagraph (E), any action -

(i) to which the Corporation, in the Corporation's capacity

as receiver of a State insured depository institution by the

exclusive appointment by State authorities, is a party other

than as a plaintiff;

(ii) which involves only the preclosing rights against the

State insured depository institution, or obligations owing

to, depositors, creditors, or stockholders by the State

insured depository institution; and

(iii) in which only the interpretation of the law of such

State is necessary,

shall not be deemed to arise under the laws of the United

States.

(E) Rule of construction

Subparagraph (D) shall not be construed as limiting the right

of the Corporation to invoke the jurisdiction of any United

States district court in any action described in such

subparagraph if the institution of which the Corporation has

been appointed receiver could have invoked the jurisdiction of

such court.

(3) Service of process

The Board of Directors shall designate agents upon whom service

of process may be made in any State, territory, or jurisdiction

in which any insured depository institution is located.

(4) Bonds or fees

The Corporation shall not be required to post any bond to

pursue any appeal and shall not be subject to payments of any

filing fees in United States district courts or courts of appeal.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(9), 64 Stat. 881; Pub. L. 89-695,

title II, Sec. 205, Oct. 16, 1966, 80 Stat. 1055; Pub. L. 95-630,

title III, Sec. 309, Nov. 10, 1978, 92 Stat. 3677; Pub. L. 101-73,

title II, Sec. 209, Aug. 9, 1989, 103 Stat. 216; Pub. L. 102-242,

title I, Sec. 161(d), Dec. 19, 1991, 105 Stat. 2286; Pub. L.

103-325, title III, Sec. 331(e), Sept. 23, 1994, 108 Stat. 2232.)

-MISC1-

PRIOR PROVISIONS

Section is derived from subsec. (j) of former section 264 of this

title. See Codification note set out under section 1811 of this

title.

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-325 in par. Fourth inserted ''by

and through its own attorneys,'' after ''complain and defend,''.

1991 - Subsec. (b)(2)(B). Pub. L. 102-242 inserted before period

at end ''before the end of the 90-day period beginning on the date

the action, suit, or proceeding is filed against the Corporation or

the Corporation is substituted as a party''.

1989 - Subsec. (a). Pub. L. 101-73, Sec. 209(2), designated

existing provisions as subsec. (a) and inserted heading.

Pub. L. 101-73, Sec. 209(3), amended par. Fourth generally.

Prior to amendment, par. Fourth read as follows: ''Fourth. To sue

and be sued, complain and defend, in any court of law or equity,

State or Federal. All suits of a civil nature at common law or in

equity to which the Corporation shall be a party shall be deemed to

arise under the laws of the United States, and the United States

district courts shall have original jurisdiction thereof, without

regard to the amount in controversy; and the Corporation may,

without bond or security, remove any such action, suit, or

proceeding from a State court to the United States district court

for the district or division embracing the place where the same is

pending by following any procedure for removal now or hereafter in

effect, except that any such suit to which the Corporation is a

party in its capacity as receiver of a State bank and which

involves only the rights or obligations of depositors, creditors,

stockholders, and such State bank under State law shall not be

deemed to arise under the laws of the United States. No attachment

or execution shall be issued against the Corporation or its

property before final judgment in any suit, action, or proceeding

in any State, county, municipal, or United States court. The Board

of Directors shall designate an agent upon whom service of process

may be made in any State, Territory, or jurisdiction in which any

insured bank is located.''

Pub. L. 101-73, Sec. 209(1), in par. Eighth, substituted

reference to depository institutions for reference to banks.

Subsec. (b). Pub. L. 101-73, Sec. 209(4), added subsec. (b).

1978 - Pub. L. 95-630 in par. Tenth inserted ''or of any other

law which it has the responsibility of administering or enforcing

(except to the extent that authority to issue such rules and

regulations has been expressly and exclusively granted to any other

regulatory agency)'' after ''provisions of this chapter''.

1966 - Pub. L. 89-695 in par. Fourth vested United States

district courts, without regard to the amount in controversy, with

original jurisdiction over any action to which the Corporation is a

party and authorized the removal of such actions to the Federal

courts.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment effective upon expiration of 120 days after Nov. 10,

1978, see section 2101 of Pub. L. 95-630, set out as an Effective

Date note under section 375b of this title.

EXPIRATION OF 1966 AMENDMENT

Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84 Stat. 1811,

repealed section 401 of Pub. L. 89-695 which provided that: ''The

provisions of titles I and II of this Act (amending sections 1464,

1730, 1813, 1817 to 1820 and repealing section 77 of this title and

enacting provisions set out as notes under sections 1464, 1730, and

1813 of this title) and any provisions of law enacted by said

titles shall be effective only during the period ending at the

close of June 30, 1972. Effective upon the expiration of such

period, each provision of law amended by either of such titles is

further amended to read as it did immediately prior to the

enactment of this Act (Oct. 16, 1966) and each provision of law

repealed by either of such titles is reenacted.''

CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED,

MODIFIED, OR AFFECTED

Nothing contained in section 205 of Pub. L. 89-695 amending

subsec. Fourth of this section to be construed as repealing,

modifying, or affecting section 1829 of this title, see section 206

of Pub. L. 89-695, set out as a note under section 1813 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 5 section 5373.

-CITE-

12 USC Sec. 1820 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1820. Administration of Corporation

-STATUTE-

(a) Board of Directors; use of mails; cooperation with other

Federal agencies

The Board of Directors shall administer the affairs of the

Corporation fairly and impartially and without discrimination. The

Board of Directors of the Corporation shall determine and prescribe

the manner in which its obligations shall be incurred and its

expenses allowed and paid. The Corporation shall be entitled to

the free use of the United States mails in the same manner as the

executive departments of the Government. The Corporation with the

consent of any Federal Reserve bank or of any board, commission,

independent establishment, or executive department of the

Government, including any field service thereof, may avail itself

of the use of information, services, and facilities thereof in

carrying out the provisions of this chapter.

(b) Examinations

(1) Appointment of examiners and claims agents

The Board of Directors shall appoint examiners and claims

agents.

(2) Regular examinations

Any examiner appointed under paragraph (1) shall have power, on

behalf of the Corporation, to examine -

(A) any insured State nonmember bank (except a District bank)

or insured State branch of any foreign bank;

(B) any depository institution which files an application

with the Corporation to become an insured depository

institution; and

(C) any insured depository institution in default,

whenever the Board of Directors determines an examination of any

such depository institution is necessary.

(3) Special examination of any insured depository institution

In addition to the examinations authorized under paragraph (2),

any examiner appointed under paragraph (1) shall have power, on

behalf of the Corporation, to make any special examination of any

insured depository institution whenever the Board of Directors

determines a special examination of any such depository

institution is necessary to determine the condition of such

depository institution for insurance purposes.

(4) Examination of affiliates

(A) In general

In making any examination under paragraph (2) or (3), any

examiner appointed under paragraph (1) shall have power, on

behalf of the Corporation, to make such examinations of the

affairs of any affiliate of any depository institution as may

be necessary to disclose fully -

(i) the relationship between such depository institution

and any such affiliate; and

(ii) the effect of such relationship on the depository

institution.

(B) Commitment by foreign banks to allow examinations of

affiliates

No branch or depository institution subsidiary of a foreign

bank may become an insured depository institution unless such

foreign bank submits a written binding commitment to the Board

of Directors to permit any examination of any affiliate of such

branch or depository institution subsidiary pursuant to

subparagraph (A) to the extent determined by the Board of

Directors to be necessary to carry out the purposes of this

chapter.

(5) Examination of insured State branches

The Board of Directors shall -

(A) coordinate examinations of insured State branches of

foreign banks with examinations conducted by the Board of

Governors of the Federal Reserve System under section

3105(c)(1) of this title; and

(B) to the extent possible, participate in any simultaneous

examination of the United States operations of a foreign bank

requested by the Board under such section.

(6) Power and duty of examiners

Each examiner appointed under paragraph (1) shall -

(A) have power to make a thorough examination of any insured

depository institution or affiliate under paragraph (2), (3),

(4), or (5); and

(B) shall make a full and detailed report of condition of any

insured depository institution or affiliate examined to the

Corporation.

(7) Power of claim agents

Each claim agent appointed under paragraph (1) shall have power

to investigate and examine all claims for insured deposits.

(c) Administration of oaths and affirmations; evidence; subpena

powers

In connection with examinations of insured depository

institutions and any State nonmember bank, savings association, or

other institution making application to become insured depository

institutions, and affiliates thereof, or with other types of

investigations to determine compliance with applicable law and

regulations, the appropriate Federal banking agency, or its

designated representatives, are authorized to administer oaths and

affirmations, and to examine and to take and preserve testimony

under oath as to any matter in respect to the affairs or ownership

of any such bank or institution or affiliate thereof, and to

exercise such other powers as are set forth in section 1818(n) of

this title.

(d) Annual on-site examinations of all insured depository

institutions required

(1) In general

The appropriate Federal banking agency shall, not less than

once during each 12-month period, conduct a full-scope, on-site

examination of each insured depository institution.

(2) Examinations by Corporation

Paragraph (1) shall not apply during any 12-month period in

which the Corporation has conducted a full-scope, on-site

examination of the insured depository institution.

(3) State examinations acceptable

The examinations required by paragraph (1) may be conducted in

alternate 12-month periods, as appropriate, if the appropriate

Federal banking agency determines that an examination of the

insured depository institution conducted by the State during the

intervening 12-month period carries out the purpose of this

subsection.

(4) 18-month rule for certain small institutions

Paragraphs (1), (2), and (3) shall apply with ''18-month''

substituted for ''12-month'' if -

(A) the insured depository institution has total assets of

less than $250,000,000;

(B) the institution is well capitalized, as defined in

section 1831o of this title;

(C) when the institution was most recently examined, it was

found to be well managed, and its composite condition -

(i) was found to be outstanding; or

(ii) was found to be outstanding or good, in the case of an

insured depository institution that has total assets of not

more than $100,000,000;

(D) the insured institution is not currently subject to a

formal enforcement proceeding or order by the Corporation or

the appropriate Federal banking agency; and

(E) no person acquired control of the institution during the

12-month period in which a full-scope, on-site examination

would be required but for this paragraph.

(5) Certain Government-controlled institutions exempted

Paragraph (1) does not apply to -

(A) any institution for which the Corporation or the

Resolution Trust Corporation is conservator; or

(B) any bridge bank, none of the voting securities of which

are owned by a person or agency other than the Corporation or

the Resolution Trust Corporation.

(6) Coordinated examinations

To minimize the disruptive effects of examinations on the

operations of insured depository institutions -

(A) each appropriate Federal banking agency shall, to the

extent practicable and consistent with principles of safety and

soundness and the public interest -

(i) coordinate examinations to be conducted by that agency

at an insured depository institution and its affiliates;

(ii) coordinate with the other appropriate Federal banking

agencies in the conduct of such examinations;

(iii) work to coordinate with the appropriate State bank

supervisor -

(I) the conduct of all examinations made pursuant to this

subsection; and

(II) the number, types, and frequency of reports required

to be submitted to such agencies and supervisors by insured

depository institutions, and the type and amount of

information required to be included in such reports; and

(iv) use copies of reports of examinations of insured

depository institutions made by any other Federal banking

agency or appropriate State bank supervisor to eliminate

duplicative requests for information; and

(B) not later than 2 years after September 23, 1994, the

Federal banking agencies shall jointly establish and implement

a system for determining which one of the Federal banking

agencies or State bank supervisors shall be the lead agency

responsible for managing a unified examination of each insured

depository institution and its affiliates, as required by this

subsection.

(7) Separate examinations permitted

Notwithstanding paragraph (6), each appropriate Federal banking

agency may conduct a separate examination in an emergency or

under other exigent circumstances, or when the agency believes

that a violation of law may have occurred.

(8) Report

At the time the system provided for in paragraph (6) is

established, the Federal banking agencies shall submit a joint

report describing the system to the Committee on Banking,

Housing, and Urban Affairs of the Senate and the Committee on

Banking, Finance and Urban Affairs of the House of

Representatives. Thereafter, the Federal banking agencies shall

annually submit a joint report to the Committee on Banking,

Housing, and Urban Affairs of the Senate and the Committee on

Banking, Finance and Urban Affairs of the House of

Representatives regarding the progress of the agencies in

implementing the system and indicating areas in which

enhancements to the system, including legislature improvements,

would be appropriate.

(9) Standards for determining adequacy of State examinations

The Federal Financial Institutions Examination Council shall

issue guidelines establishing standards to be used at the

discretion of the appropriate Federal banking agency for purposes

of making a determination under paragraph (3).

(10) Agencies authorized to increase maximum asset amount of

institutions for certain purposes

At any time after the end of the 2-year period beginning on

September 23, 1994, the appropriate Federal banking agency, in

the agency's discretion, may increase the maximum amount

limitation contained in paragraph (4)(C)(ii), by regulation, from

$100,000,000 to an amount not to exceed $250,000,000 for purposes

of such paragraph, if the agency determines that the greater

amount would be consistent with the principles of safety and

soundness for insured depository institutions.

(e) Examination fees

(1) Regular and special examinations of depository institutions

The cost of conducting any regular examination or special

examination of any depository institution under subsection

(b)(2), (b)(3), or (d) of this section may be assessed by the

Corporation against the institution to meet the Corporation's

expenses in carrying out such examinations.

(2) Examination of affiliates

The cost of conducting any examination of any affiliate of any

insured depository institution under subsection (b)(4) of this

section may be assessed by the Corporation against each affiliate

which is examined to meet the Corporation's expenses in carrying

out such examination.

(3) Assessment against depository institution in case of

affiliate's refusal to pay

(A) In general

Subject to subparagraph (B), if any affiliate of any insured

depository institution -

(i) refuses to pay any assessment under paragraph (2); or

(ii) fails to pay any such assessment before the end of the

60-day period beginning on the date the affiliate receives

notice of the assessment,

the Corporation may assess such cost against, and collect such

cost from, the depository institution.

(B) Affiliate of more than 1 depository institution

If any affiliate referred to in subparagraph (A) is an

affiliate of more than 1 insured depository institution, the

assessment under subparagraph (A) may be assessed against the

depository institutions in such proportions as the Corporation

determines to be appropriate.

(4) Civil money penalty for affiliate's refusal to cooperate

(A) Penalty imposed

If any affiliate of any insured depository institution -

(i) refuses to permit an examiner appointed by the Board of

Directors under subsection (b)(1) of this section to conduct

an examination; or

(ii) refuses to provide any information required to be

disclosed in the course of any examination,

the depository institution shall forfeit and pay a penalty of

not more than $5,000 for each day that any such refusal

continues.

(B) Assessment and collection

Any penalty imposed under subparagraph (A) shall be assessed

and collected by the Corporation in the manner provided in

section 1818(i)(2) of this title.

(5) Deposits of examination assessment

Amounts received by the Corporation under this subsection

(other than paragraph (4)) may be deposited in the manner

provided in section 1823 of this title.

(f) Preservation of records by photography; admissibility as

evidence

The Corporation may cause any and all records, papers, or

documents kept by it or in its possession or custody to be

photographed or microphotographed or otherwise reproduced upon

film, which photographic film shall comply with the minimum

standards of quality approved for permanent photographic records by

the National Institute of Standards and Technology. Such

photographs, microphotographs, or photographic film or copies

thereof shall be deemed to be an original record for all purposes,

including introduction in evidence in all State and Federal courts

or administrative agencies and shall be admissible to prove any

act, transaction, occurrence, or event therein recorded. Such

photographs, microphotographs, or reproduction shall be preserved

in such manner as the Board of Directors of the Corporation shall

prescribe and the original records, papers, or documents may be

destroyed or otherwise disposed of as the Board shall direct.

(g) Authority to prescribe regulations and definitions

Except to the extent that authority under this chapter is

conferred on any of the Federal banking agencies other than the

Corporation, the Corporation may -

(1) prescribe regulations to carry out this chapter; and

(2) by regulation define terms as necessary to carry out this

chapter.

(h) Coordination of examination authority

(1) In general

The appropriate State bank supervisor of a host State may

examine a branch operated in such State by an out-of-State

insured State bank that resulted from an interstate merger

transaction approved under section 1831u of this title or a

branch established in such State pursuant to section 36(g) of

this title or section 1828(d)(4) of this title -

(A) for the purpose of determining compliance with host State

laws, including those that govern banking, community

reinvestment, fair lending, consumer protection, and

permissible activities; and

(B) to ensure that the activities of the branch are not

conducted in an unsafe or unsound manner.

(2) Enforcement

If the State bank supervisor of a host State determines that

there is a violation of the law of the host State concerning the

activities being conducted by a branch described in paragraph (1)

or that the branch is being operated in an unsafe and unsound

manner, the State bank supervisor of the host State or, to the

extent authorized by the law of the host State, a State law

enforcement officer may undertake such enforcement actions and

proceedings as would be permitted under the law of the host State

as if the branch were a bank chartered by that host State.

(3) Cooperative agreement

The State bank supervisors from 2 or more States may enter into

cooperative agreements to facilitate State regulatory supervision

of State banks, including cooperative agreements relating to the

coordination of examinations and joint participation in

examinations.

(4) Federal regulatory authority

No provision of this subsection shall be construed as limiting

in any way the authority of an appropriate Federal banking agency

to examine or to take any enforcement actions or proceedings

against any bank or branch of a bank for which the agency is the

appropriate Federal banking agency.

(i) Flood insurance compliance by insured depository institutions

(1) Examinations

The appropriate Federal banking agency shall, during each

scheduled on-site examination required by this section, determine

whether the insured depository institution is complying with the

requirements of the national flood insurance program.

(2) Report

(A) Requirement

Not later than 1 year after September 23, 1994, and

biennially thereafter for the next 4 years, each appropriate

Federal banking agency shall submit a report to the Congress on

compliance by insured depository institutions with the

requirements of the national flood insurance program.

(B) Contents

Each report submitted under this paragraph shall include a

description of the methods used to determine compliance, the

number of institutions examined during the reporting year, a

listing and total number of institutions found not to be in

compliance, actions taken to correct incidents of

noncompliance, and an analysis of compliance, including a

discussion of any trends, patterns, and problems, and

recommendations regarding reasonable actions to improve the

efficiency of the examinations processes.

(j) Consultation among examiners

(1) In general

Each appropriate Federal banking agency shall take such action

as may be necessary to ensure that examiners employed by the

agency -

(A) consult on examination activities with respect to any

depository institution; and

(B) achieve an agreement and resolve any inconsistencies in

the recommendations to be given to such institution as a

consequence of any examinations.

(2) Examiner-in-charge

Each appropriate Federal banking agency shall consider

appointing an examiner-in-charge with respect to a depository

institution to ensure consultation on examination activities

among all of the examiners of that agency involved in

examinations of the institution.

-SOURCE-

(Sept. 21, 1950, ch. 967, Sec. 2(10), 64 Stat. 882; Pub. L. 86-671,

Sec. 4, July 14, 1960, 74 Stat. 551; Pub. L. 89-695, title II, Sec.

203, Oct. 16, 1966, 80 Stat. 1053; Pub. L. 91-452, title II, Sec.

208, Oct. 15, 1970, 84 Stat. 929; Pub. L. 95-369, Sec. 6(c)(16),

Sept. 17, 1978, 92 Stat. 619; Pub. L. 95-630, title III, Sec. 305,

Nov. 10, 1978, 92 Stat. 3677; Pub. L. 97-320, title I, Sec. 113(i),

title IV, Sec. 410(g), Oct. 15, 1982, 96 Stat. 1474, 1520; Pub. L.

100-418, title V, Sec. 5115(c), Aug. 23, 1988, 102 Stat. 1433; Pub.

L. 101-73, title II, Sec. 201(a), 210, Aug. 9, 1989, 103 Stat. 187,

217; Pub. L. 102-242, title I, Sec. 111(a), 113(a), (b), (c)(2),

title II, Sec. 203(c), title III, Sec. 302(d), Dec. 19, 1991, 105

Stat. 2240, 2246-2248, 2292, 2349; Pub. L. 102-550, title XVI, Sec.

1603(b)(1), (4), 1604(a)(3), 1605(a)(4), Oct. 28, 1992, 106 Stat.

4078, 4079, 4082, 4085; Pub. L. 102-558, title III, Sec. 303(b)(5),

305, Oct. 28, 1992, 106 Stat. 4225, 4226; Pub. L. 103-325, title

III, Sec. 305(a), 306, 349(a), title V, Sec. 529(a), title VI, Sec.

602(a)(19), (20), Sept. 23, 1994, 108 Stat. 2216, 2217, 2242, 2266,

2289; Pub. L. 103-328, title I, Sec. 105, Sept. 29, 1994, 108 Stat.

2357; Pub. L. 104-208, div. A, title II, Sec. 2221, 2244, Sept.

30, 1996, 110 Stat. 3009-414, 3009-419.)

-MISC1-

PRIOR PROVISIONS

Subsecs. (a), (b), (former) (e), and (former) (f) are derived

from subsec. (k) of former section 264 of this title. See

Codification note set out under section 1811 of this title.

AMENDMENTS

1996 - Subsec. (d)(6)(B). Pub. L. 104-208, Sec. 2244(b), which

directed insertion of ''or State bank supervisors'' after ''one of

the Federal agencies'', was executed by making the insertion after

''one of the Federal banking agencies'' to reflect the probable

intent of Congress.

Subsec. (d)(8). Pub. L. 104-208, Sec. 2221(1), redesignated par.

(8), relating to agencies authorized to increase maximum asset

amount of institutions for certain purposes, as (10).

Subsec. (d)(10). Pub. L. 104-208, Sec. 2221(2), substituted

''$250,000,000'' for ''$175,000,000''.

Pub. L. 104-208, Sec. 2221(1), redesignated par. (8), relating to

agencies authorized to increase maximum asset amount of

institutions for certain purposes, as (10).

Subsec. (j). Pub. L. 104-208, Sec. 2244(a), added subsec. (j).

1994 - Subsec. (b)(1). Pub. L. 103-325, Sec. 602(a)(19),

substituted ''claims'' for ''claim''.

Subsec. (b)(2)(B). Pub. L. 103-325, Sec. 602(a)(20), inserted

''and'' at end.

Subsec. (d)(4)(A). Pub. L. 103-325, Sec. 306(a)(1), substituted

''$250,000,000'' for ''$100,000,000''.

Subsec. (d)(4)(C). Pub. L. 103-325, Sec. 306(a)(2), substituted

''and its composite condition -

''(i) was found to be outstanding; or

''(ii) was found to be outstanding or good, in the case of an

insured depository institution that has total assets of not more

than $100,000,000;''

for ''and its composite condition was found to be outstanding;

and''.

Subsec. (d)(4)(D), (E). Pub. L. 103-325, Sec. 306(a)(3), (4),

added subpar. (D) and redesignated former subpar. (D) as (E).

Subsec. (d)(6), (7). Pub. L. 103-325, Sec. 305(a), added pars.

(6) and (7).

Subsec. (d)(8). Pub. L. 103-325, Sec. 306(b), added par. (8)

relating to agencies authorized to increase maximum asset amount of

institutions for certain purposes.

Pub. L. 103-325, Sec. 305(a), added par. (8) relating to report

requirements.

Subsec. (d)(9). Pub. L. 103-325, Sec. 349(a), added par. (9).

Subsec. (h). Pub. L. 103-328 added subsec. (h).

Subsec. (i). Pub. L. 103-325, Sec. 529(a), added subsec. (i).

1992 - Subsec. (b)(6)(A). Pub. L. 102-550, Sec. 1604(a)(3),

substituted ''paragraph (2), (3), (4), or (5);'' for '' 'paragraph

(2)' and all that follows through the semicolon'' resulting in no

change in text.

Subsec. (d)(5). Pub. L. 102-550, Sec. 1603(b)(1)(A), (B),

inserted ''or the Resolution Trust Corporation'' in subpars. (A)

and (B) and inserted a comma after ''bank'' in subpar. (B).

Subsec. (d)(6). Pub. L. 102-550, Sec. 1603(b)(1)(C), struck out

par. (6) which read as follows: ''(6) Consumer compliance

examinations excluded. - For purposes of this subsection, the term

'full-scope, on-site examination' does not include a consumer

compliance examination, as defined in section 41(b).''

Subsec. (e). Pub. L. 102-550, Sec. 1603(b)(4), amended directory

language of Pub. L. 102-242, Sec. 113(a)(2). See 1991 Amendment

note below.

Subsec. (g). Pub. L. 102-558, Sec. 303(b)(5), redesignated

subsec. (f), relating to authority to prescribe regulations and

definitions, as (g). Pub. L. 102-550, Sec. 1605(a)(4), which

contained an identical amendment, was repealed, effective Oct. 28,

1992, by Pub. L. 102-558, Sec. 305, set out as a Repeal of

Duplicative Provisions note under section 1815 of this title.

1991 - Subsec. (b)(2)(B). Pub. L. 102-242, Sec. 113(b), amended

subpar. (B) generally. Prior to amendment, subpar. (B) read as

follows: ''any savings association, State nonmember bank, or State

branch of a foreign bank, or other depository institution which

files an application with the Corporation to become an insured

depository institution; and''.

Subsec. (b)(4)(A). Pub. L. 102-242, Sec. 113(c)(2), struck out

''insured'' before ''depository institution'' in three places.

Subsec. (b)(5) to (7). Pub. L. 102-242, Sec. 203(c), added par.

(5), redesignated former par. (5) as (6) and substituted ''(4), or

(5)'' for ''or (4)'', and redesignated former par. (6) as (7).

Subsec. (d). Pub. L. 102-242, Sec. 111(a), added subsec. (d).

Subsec. (e). Pub. L. 102-242, Sec. 113(a)(2), as amended by Pub.

L. 102-550, Sec. 1603(b)(4), added subsec. (e). Former subsec. (e)

redesignated (f).

Subsec. (f). Pub. L. 102-242, Sec. 302(d), added subsec. (f)

relating to authority to prescribe regulations and definitions.

Pub. L. 102-242, Sec. 113(a)(1), redesignated subsec. (e),

relating to preservation of records by photography, as (f).

1989 - Subsec. (b). Pub. L. 101-73, Sec. 210(a), amended subsec.

(b) generally, revising and restating as pars. (1) to (6)

provisions formerly contained in a single unnumbered paragraph.

Subsec. (c). Pub. L. 101-73, Sec. 210(b)(1), substituted ''and

any State nonmember bank, savings association, or other

institution'' for '', State nonmember banks or other

institutions''.

Pub. L. 101-73, Sec. 201(a), substituted ''insured depository

institutions'' for ''insured banks'' wherever appearing.

Subsec. (d). Pub. L. 101-73, Sec. 210(b)(2), struck out subsec.

(d) which defined ''affiliate'' and ''member bank'' for purposes of

this section.

1988 - Subsec. (e). Pub. L. 100-418 substituted ''National

Institute of Standards and Technology'' for ''National Bureau of

Standards''.

1982 - Subsec. (b). Pub. L. 97-320, Sec. 113(i), inserted ''or

any insured Federal savings bank,'' after ''foreign bank, or

District bank,''.

Subsec. (d). Pub. L. 97-320, Sec. 410(g), inserted ''as in

section 221a(b) of this title and''.

1978 - Subsec. (b). Pub. L. 95-630, Sec. 305(a), inserted ''or

other institution'' after ''any State nonmember bank'' and struck

out provisions that each claim agent have power to administer oaths

and affirmations and to examine and to take and preserve testimony

under oath as to any matter in respect to claims for insured

deposits, and to issue subpenas and subpenas duces tecum, and, for

the enforcement thereof, to apply to the United States district

court for the judicial district or the United States court in any

territory in which the main office of the bank or affiliate thereof

is located, or in which the witness resides or carriers on business

and that such courts have jurisdiction and power to order and

require compliance with any such subpena.

Pub. L. 95-369 inserted ''any insured State branch of a foreign

bank, any State branch of a foreign bank making application to

become an insured bank'' after ''(except a District bank)'',

inserted ''or branch'' after ''and any closed insured bank'',

substituted ''any national bank, insured Federal branch of a

foreign bank, or District bank'' for ''any national bank or

District bank'' and inserted ''and in the case of a foreign bank, a

binding commitment by such bank to permit such examination to the

extent determined by the Board of Directors to be necessary to

carry out the purposes of this chapter shall be required as a

condition to the insurance of any deposits'' after ''effect of such

relations upon such banks''.

Subsec. (c). Pub. L. 95-630, Sec. 305(b), among other changes,

inserted references to State nonmember banks, other institutions

making application to become insured banks, and investigations to

determine compliance with applicable law and regulations and struck

out provisions defining ''affiliate'' and ''member bank''.

Subsec. (d). Pub. L. 95-630, Sec. 305(b), substituted provisions

defining the terms ''affiliate'' and ''member bank'' for provisions

relating to the enforcement of subpenas and orders.

1970 - Subsec. (d). Pub. L. 91-452 struck out provisions which

granted immunity from prosecution for any individual compelled to

testify or produce evidence, documentary or otherwise, after

claiming his privilege against self-incrimination.

1966 - Subsec. (b). Pub. L. 89-695 empowered Corporation

examiners making examinations of insured banks to make such

examinations of the affairs of all affiliates of such banks as

shall be necessary to disclose fully the relations between such

banks and their affiliates and the effect of such relations upon

such banks, authorized Corporation claim agents to issue subpenas

and subpenas duces tecum in connection with investigation and

examination of claims for insured deposits and to apply to the

proper United States district court for the enforcement of such

subpenas and provided such courts with jurisdiction and power to

order and require compliance with any such subpena.

Subsec. (c). Pub. L. 89-695 provided that in connection with

examinations of insured banks and affiliates thereof, the

appropriate Federal banking agency, or its designated

representatives, could administer oaths and affirmations, take and

preserve testimony under oath as to any matter in respect of the

affairs or ownership of such bank or affiliate thereof, issue

subpenas and subpenas duces tecum, and apply to the proper United

States district court for the enforcement of such subpenas,

provided such courts with jurisdiction and power to order and

require compliance with any such subpena, and defined ''affiliate''

and ''member bank''.

1960 - Subsecs. (e) to (g). Pub. L. 86-671 struck out subsecs.

(e) and (f) which related to reports of condition by insured

nonmember State banks and access by Corporation to information of

other bank supervisory authorities, and redesignated subsec. (g) as

(e). See section 1817(a)(1) and (2) of this title.

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee on Banking and

Financial Services of House of Representatives by section 1(a) of

Pub. L. 104-14, set out as a note preceding section 21 of Title 2,

The Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-MISC4-

EFFECTIVE DATE OF 1992 AMENDMENTS

Amendment by section 303(b)(5) of Pub. L. 102-558 deemed to have

become effective Mar. 1, 1992, see section 304 of Pub. L. 102-558,

set out as a note under section 2062 of Title 50, Appendix, War and

National Defense.

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, except that where amendment is to

any provision of law added or amended by Pub. L. 102-242 effective

after Dec. 19, 1992, then amendment by Pub. L. 102-550 effective on

effective date of amendment by Pub. L. 102-242, see section 1609 of

Pub. L. 102-550, set out as a note under section 191 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Section 111(b) of Pub. L. 102-242 provided that: ''The amendment

made by subsection (a) (amending this section) shall become

effective 1 year after the date of enactment of this Act (Dec. 19,

1991).''

Amendment by section 302(d) of Pub. L. 102-242 effective on

earlier of 180 days after date on which final regulations

promulgated in accordance with section 302(c) of Pub. L. 102-242,

set out as a note under section 1817 of this title, become

effective or Jan. 1, 1994, see section 302(g) of Pub. L. 102-242,

set out as a note under section 1817 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-630 effective upon expiration of 120 days

after Nov. 10, 1978, see section 2101 of Pub. L. 95-630, set out as

an Effective Date note under section 375b of this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-452 effective on sixtieth day following

Oct. 15, 1970, not to affect any immunity to which any individual

is entitled under this section by reason of any testimony given

before sixtieth day following Oct. 15, 1970, see section 260 of

Pub. L. 91-452, set out as an Effective Date; Savings Provision

note under section 6001 of Title 18, Crimes and Criminal Procedure.

EXPIRATION OF 1966 AMENDMENT

Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84 Stat. 1811,

repealed section 401 of Pub. L. 89-695 which had provided that:

''The provisions of titles I and II of this Act (amending sections

1464, 1730, 1813, 1817 to 1820 and repealing section 77 of this

title and enacting provisions set out as notes under sections 1464,

1730, and 1813 of this title) and any provisions of law enacted by

said titles shall be effective only during the period ending at the

close of June 30, 1972. Effective upon the expiration of such

period, each provision of law amended by either of such titles is

further amended to read as it did immediately prior to the

enactment of this Act (Oct. 16, 1966) and each provision of law

repealed by either of such titles is reenacted.''

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-671 effective Jan. 1, 1961, see section 7

of Pub. L. 86-671, set out as a note under section 1817 of this

title.

EFFECTIVE DATE OF INITIAL GUIDELINES

Section 349(b) of Pub. L. 103-325 provided that: ''The initial

guidelines required to be issued pursuant to the amendment made by

subsection (a) (amending this section) shall become effective not

later than 1 year after the date of enactment of this Act (Sept.

23, 1994).''

TRANSITION RULE

Section 111(c) of Pub. L. 102-242 provided that:

''Notwithstanding section 10(d) of the Federal Deposit Insurance

Act (12 U.S.C. 1820(d)) (as added by subsection (a)), during the

period beginning on the date of enactment of this Act (Dec. 19,

1991) and ending on December 31, 1993, a full-scope, on-site

examination of an insured depository institution is not required

more often than once during every 18-month period, unless -

''(1) the institution, when most recently examined, was found

to be in a less than satisfactory condition; or

''(2) 1 or more persons acquired control of the institution.''

CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED,

MODIFIED, OR AFFECTED

Nothing contained in section 203 of Pub. L. 89-695 amending

subsecs. (b) and (c) of this section to be construed as repealing,

modifying, or affecting section 1829 of this title, see section 206

of Pub. L. 89-695, set out as a note under section 1813 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1464, 1820a, 1821, 1831v,

4204, 4224 of this title.

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12 USC Sec. 1820a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1820a. Examination of investment companies

-STATUTE-

(a) Exclusive Commission authority

Except as provided in subsection (c) of this section, a Federal

banking agency may not inspect or examine any registered investment

company that is not a bank holding company or a savings and loan

holding company.

(b) Examination results and other information

The Commission shall provide to any Federal banking agency, upon

request, the results of any examination, reports, records, or other

information with respect to any registered investment company to

the extent necessary for the agency to carry out its statutory

responsibilities.

(c) Certain examinations authorized

Nothing in this section shall prevent the Corporation, if the

Corporation finds it necessary to determine the condition of an

insured depository institution for insurance purposes, from

examining an affiliate of any insured depository institution,

pursuant to its authority under section 1820(b)(4) of this title,

as may be necessary to disclose fully the relationship between the

insured depository institution and the affiliate, and the effect of

such relationship on the insured depository institution.

(d) Definitions

For purposes of this section, the following definitions shall

apply:

(1) Bank holding company

The term ''bank holding company'' has the meaning given the

term in section 1841 of this title.

(2) Commission

The term ''Commission'' means the Securities and Exchange

Commission.

(3) Corporation

The term ''Corporation'' means the Federal Deposit Insurance

Corporation.

(4) Federal banking agency

The term ''Federal banking agency'' has the meaning given the

term in section 1813(z) of this title.

(5) Insured depository institution

The term ''insured depository institution'' has the meaning

given the term in section 1813(c) of this title.

(6) Registered investment company

The term ''registered investment company'' means an investment

company that is registered with the Commission under the

Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.).

(7) Savings and loan holding company

The term ''savings and loan holding company'' has the meaning

given the term in section 1467a(a)(1)(D) of this title.

-SOURCE-

(Pub. L. 106-102, title I, Sec. 115, Nov. 12, 1999, 113 Stat.

1371.)

-REFTEXT-

REFERENCES IN TEXT

The Investment Company Act of 1940, referred to in subsec.

(d)(6), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as

amended, which is classified generally to subchapter I (Sec. 80a-1

et seq.) of chapter 2D of Title 15, Commerce and Trade. For

complete classification of this Act to the Code, see section 80a-51

of Title 15 and Tables.

-COD-

CODIFICATION

Section was enacted as part of the Gramm-Leach-Bliley Act, and

not as part of the Federal Deposit Insurance Act which comprises

this chapter.

-MISC3-

EFFECTIVE DATE

Section effective 120 days after Nov. 12, 1999, see section 161

of Pub. L. 106-102, set out as an Effective Date of 1999 Amendment

note under section 24 of this title.

-CITE-

12 USC Sec. 1821 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 1821. Insurance Funds

-STATUTE-

(a) Deposit insurance

(1) Insured amounts payable. -

(A) In general. - The Corporation shall insure the deposits of

all insured depository institutions as provided in this chapter.

(B) Net amount of insured deposit. - The net amount due to any

depositor at an insured depository institution shall not exceed

$100,000 as determined in accordance with subparagraphs (C) and

(D).

(C) Aggregation of deposits. - For the purpose of determining

the net amount due to any depositor under subparagraph (B), the

Corporation shall aggregate the amounts of all deposits in the

insured depository institution which are maintained by a

depositor in the same capacity and the same right for the benefit

of the depositor either in the name of the depositor or in the

name of any other person, other than any amount in a trust fund

described in paragraph (1) or (2) of section 1817(i) of this

title or any funds described in section 1817(i)(3) of this title.

(D) Coverage on pro rata or ''pass-through'' basis. -

(i) In general. - Except as provided in clause (ii), for the

purpose of determining the amount of insurance due under

subparagraph (B), the Corporation shall provide deposit

insurance coverage with respect to deposits accepted by any

insured depository institution on a pro rata or

''pass-through'' basis to a participant in or beneficiary of an

employee benefit plan (as defined in subsection (a)(8)(B)(ii)

of this section), including any eligible deferred compensation

plan described in section 457 of title 26.

(ii) Exception. - After the end of the 1-year period

beginning on December 19, 1991, the Corporation shall not

provide insurance coverage on a pro rata or ''pass-through''

basis pursuant to clause (i) with respect to deposits accepted

by any insured depository institution which, at the time such

deposits are accepted, may not accept brokered deposits under

section 1831f of this title.

(iii) Coverage under certain circumstances. - Clause (ii)

shall not apply with respect to any deposit accepted by an

insured depository institution described in such clause if, at

the time the deposit is accepted -

(I) the institution meets each applicable capital standard;

and

(II) the depositor receives a written statement from the

institution that such deposits at such institution are

eligible for insurance coverage on a pro rata or

''pass-through'' basis.

(2)(A) Notwithstanding any limitation in this chapter or in any

other provision of law relating to the amount of deposit insurance

available for the account of any one depositor, in the case of a

depositor who is -

(i) an officer, employee, or agent of the United States having

official custody of public funds and lawfully investing or

depositing the same in time and savings deposits in an insured

depository institution;

(ii) an officer, employee, or agent of any State of the United

States, or of any county, municipality, or political subdivision

thereof having official custody of public funds and lawfully

investing or depositing the same in time and savings deposits in

an insured depository institution in such State;

(iii) an officer, employee, or agent of the District of

Columbia having official custody of public funds and lawfully

investing or depositing the same in time and savings deposits in

an insured depository institution in the District of Columbia;

(iv) an officer, employee, or agent of the Commonwealth of

Puerto Rico, of the Virgin Islands, of American Samoa, of the

Trust Territory of the Pacific Islands, or of Guam, or of any

county, municipality, or political subdivision thereof having

official custody of public funds and lawfully investing or

depositing the same in time and savings deposits in an insured

depository institution in the Commonwealth of Puerto Rico, the

Virgin Islands, American Samoa, the Trust Territory of the

Pacific Islands, or Guam, respectively; or

(v) an officer, employee, or agent of any Indian tribe (as

defined in section 1452(c) of title 25) or agency thereof having

official custody of tribal funds and lawfully investing or

depositing the same in time and savings deposits in an insured

depository institution;

such depositor shall, for the purpose of determining the amount of

insured deposits under this subsection, be deemed a depositor in

such custodial capacity separate and distinct from any other

officer, employee, or agent of the United States or any public unit

referred to in clause (ii), (iii), (iv), or (v) and the deposit of

any such depositor shall be insured in an amount not to exceed

$100,000 per account in an amount not to exceed $100,000 per

account. (FOOTNOTE 1)

(FOOTNOTE 1) So in original. The second occurrence of the

phrase ''in an amount not to exceed $100,000 per account'' probably

should not appear.

(B) The Corporation may limit the aggregate amount of funds that

may be invested or deposited in deposits in any insured depository

institution by any depositor referred to in subparagraph (A) of

this paragraph on the basis of the size of any such bank (FOOTNOTE

2) in terms of its assets: Provided, however, such limitation may

be exceeded by the pledging of acceptable securities to the

depositor referred to in subparagraph (A) of this paragraph when

and where required.

(FOOTNOTE 2) So in original. Probably should be ''depository

institution''.

(3) Certain retirement accounts. -

(A) In general. - Notwithstanding any limitation in this

chapter relating to the amount of deposit insurance available for

the account of any 1 depositor, deposits in an insured depository

institution made in connection with -

(i) any individual retirement account described in section

408(a) of title 26;

(ii) subject to the exception contained in paragraph

(1)(D)(ii), any eligible deferred compensation plan described

in section 457 of title 26; and

(iii) any individual account plan defined in section 1002(34)

of title 29, and any plan described in section 401(d) of title

26, to the extent that participants and beneficiaries under

such plan have the right to direct the