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

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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.

(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.

(d) Continuation of insurance after merger or

consolidation.

1815. Deposit insurance.

(a) Application to Corporation required.

(b) Foreign branch nonmember banks; matters

considered.

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.

(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.

(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(k) Repealed.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.

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.

(d) Definitions.

1821. Insurance Funds.

(a) Deposit insurance.

(b) Liquidation as closing of depository institution.

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.

(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.

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.

(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.

(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.

(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.

(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.

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.

1828b. Interagency data sharing.

(a) In general.

(b) Confidentiality requirements.

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.

(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.

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.

(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.

(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.

(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.

(d) No private right of action.

(e) Study.

1831h. Savings Association Insurance Fund Industry Advisory

Committee.

(a) Establishment.

(b) Membership.

(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.

(d) Additional information.

(e) Standard for disapproval.

(f) Definition regulations.

1831j. Depository institution employee protection remedy.

(a) In general.

(b) Enforcement.

(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.

(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.

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.

(d) Definitions.

1831n. Accounting objectives, standards, and requirements.

(a) In general.

(b) Uniform accounting of capital standards.

1831o. Prompt corrective action.

(a) Resolving problems to protect deposit insurance

fund.

(b) Definitions.

(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.

(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.

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.

1831r-1. Notice of branch closure.

(a) Notice to appropriate Federal banking agency.

(b) Notice to customers.

(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.

(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.

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.

1831w. Safety and soundness firewalls applicable to financial

subsidiaries of banks.

(a) In general.

(b) Preservation of existing subsidiaries.

(d) Preservation of authority.

1831x. Insurance customer protections.

(a) Regulations required.

(b) Sales practices.

(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.

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.

1833. Repealed.

1833a. Civil penalties.

(a) In general.

(b) Maximum amount of penalty.

(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.

section.

1833d. Repealed.

1833e. Equal opportunity.

(a) In general.

(b) Affirmative program for equal employment

opportunity.

(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.

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.

(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.

(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.

(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.

(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.

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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;

''(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

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.

(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;

''(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

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.

(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

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.),

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

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;

(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.

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.

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.

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.

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;

(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.

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.

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.

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.

(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

(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.

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.

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.

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;

(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.

(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.

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.

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;

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.

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.

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;

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.

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;

(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).

(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.

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

(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

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.

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