FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
SEC. 10. ADMINISTRATION OF CORPORATION.--
(a) Board of directors; use of mails; cooperation with other
federal agencies.--The Board of Directors shall administer the
affairs of the Corporation fairly and impartially and without
discrimination. The Board of Directors of the Corporation shall
determine and prescribe the manner in which its obligations shall be
incurred and its expenses allowed and paid. The Corporation shall be
entitled to the free use of the United States mails in the same manner
as the executive departments of the Government. The Corporation with
the consent of any Federal Reserve bank or of any board, commission,
independent establishment, or executive department of the Government,
including any field service thereof, may avail itself of the use of
information, services, and facilities thereof in carrying out the
provisions of this Act.
[Codified to 12 U.S.C. 1820(a)]
[Source: Section 2[10(a)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21,
1950]
(b) Examinations.--
(1) APPOINTMENT OF EXAMINERS AND CLAIMS AGENTS.--The
Board of Directors shall appoint examiners and claims agents.
(2) REGULAR EXAMINATIONS.--Any examiner appointed under
paragraph (1) shall have power, on behalf of the Corporation, to
examine--
(A) any insured State nonmember bank or insured State branch of
any foreign bank;
(B) any depository institution which files an application with
the Corporation to become an insured depository institution; and
(C) any insured depository institution in default,
whenever the Board of Directors determines an examination of any such
depository institution is necessary.
(3) SPECIAL EXAMINATION OF ANY INSURED DEPOSITORY
INSTITUTION.--
(A) IN GENERAL.--In addition to the examinations
authorized under paragraph (2), any examiner appointed under paragraph
(1) shall have power, on behalf of the Corporation, to make any special
examination of any insured depository institution or nonbank financial
company supervised by the Board of Governors or a bank holding company
described in section 165(a) of the Financial Stability Act of 2010,
whenever the Board of Directors determines that a special examination
of any such depository institution is necessary to determine the
condition of such depository institution for insurance purposes, or of
such nonbank financial company supervised by the Board of Governors or
bank holding company described in section 165(a) of the Financial
Stability Act of 2010, for the purpose of implementing its authority to
provide for orderly liquidation of any such company under title II of
that Act, provided that such authority may not be used with respect to
any such company that is in a generally sound condition.
(B) LIMITATION.--Before conducting a special examination
of a nonbank financial company supervised by the Board of Governors or
a bank holding company described in section 165(a) of the Financial
Stability Act of 2010, the Corporation shall review any available and
acceptable resolution plan that the company has submitted in accordance
with section 165(d) of that Act, consistent with the nonbinding effect
of such plan, and available reports of examination, and shall
coordinate to the maximum extent practicable with the Board of
Governors, in order to minimize duplicative or conflicting
examinations.
(4) EXAMINATION OF AFFILIATES.--
(A) IN GENERAL.--In making any examination under
paragraph (2) or (3), any examiner appointed under paragraph (1) shall
have power, on behalf of the Corporation, to make such examinations of
the affairs of any affiliate of any depository institution as may be
necessary to disclose fully--
(i) the relationship between such depository institution and any
such affiliate; and
(ii) the effect of such relationship on the depository
institution.
(B) COMMITMENT BY FOREIGN BANKS TO ALLOW EXAMINATIONS OF
AFFILIATES.--No branch or depository institution subsidiary of a
foreign bank may become an insured depository institution unless such
foreign bank submits a written binding commitment to the Board of
Directors to permit any examination of any affiliate of such branch or
depository institution subsidiary pursuant to subparagraph (A) to the
extent determined by the Board of Directors to be necessary to carry
out the purposes of this Act.
(5) EXAMINATION OF INSURED STATE BRANCHES.--The Board of
Directors shall--
(A) coordinate examinations of insured State branches of foreign
banks with examinations conducted by the Board of Governors of the
Federal Reserve System under
section
7(c)(1) of the International Banking Act of 1978; and
(B) to the extent possible, participate in any simultaneous
examination of the United States operations of a foreign bank requested
by the Board under such section.
(6) POWER AND DUTY OF EXAMINERS.--Each examiner
appointed under paragraph (1) shall--
(A) have power to make a thorough examination of any insured
depository institution or affiliate under paragraph (2), (3), (4) or
(5); and
(B) shall make a full and detailed report of condition of any
insured depository institution or affiliate examined to the
Corporation.
(7) POWER OF CLAIM AGENTS.--Each claim agent appointed
under paragraph (1) shall have power to investigate and examine all
claims for insured deposits.
[Codified to 12 U.S.C. 1820(b)]
[Source: Section 2[10(b)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as amended by
section 203 of title II of the Act of October 16, 1966 (Pub. L. No.
89--695; 80 Stat. 1053), effective October 16, 1966; section 6(c)(16)
of the Act of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 619),
effective September 17, 1978; section 305(a) of title III of the Act of
November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3677), effective March
10, 1979; section 113(i) of title I of the Act of October 15, 1982
(Pub. L. No. 97--320; 96 Stat. 1474), effective October 15, 1982;
sections 201(a) and 210(a) of title II of the Act of August 9, 1989
(Pub. L. No. 101--73; 103 Stat. 187 and 217, respectively), effective
August 9, 1989; sections 113(b) and (c)(2) of title I and section
203(c) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2247, 2248, and 2292, respectively), effective
December 19, 1991; section 1604(a)(3) of title XVI of the Act of
October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4082), effective
December 19, 1991; section 602(a)(19) and (20) of title VI of the Act
of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2289), effective
September 23, 1994; section 8(a)(3) of the Act of October 30, 2004
(Pub. L. No. 108-386; 118 Stat. 2231), effective October 30, 2004;
amended by P.L. 111--203, July 21, 2010]
(c) Administration of Oaths and Affirmations; Evidence;
Subpoena Powers.--In connection with examinations of insured
depository institutions and any State nonmember bank, savings
association, or other institution making application to become insured
depository institutions, and affiliates thereof, or with other types of
investigations to determine compliance with applicable law and
regulations, the appropriate Federal banking agency, or its designated
representatives, are authorized to administer oaths and affirmations,
and to examine and to take and preserve testimony under oath as to any
matter in respect to the affairs or ownership of any such bank or
institution or affiliate thereof, and to exercise such other powers as
are set forth in section 8(n) of this Act.
[Codified to 12 U.S.C. 1820(c)]
[Source: Section 2[10(c)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as amended by
section 203 of title II of the Act of October 16, 1966 (Pub. L. No.
89--695; 80 Stat. 1053), effective October 16, 1966, section 305(b) of
title III of the Act of November 10, 1978 (Pub. L. No. 95--630; 92
Stat. 3677), effective March 10, 1979; sections 201(a) and 210(b)(1) of
title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat.
187 and 218, respectively), effective August 9,
1989]
(d) Annual On-Site Examinations of All Insured Depository
Institutions Required.--
(1) IN GENERAL.--The appropriate Federal banking agency
shall, not less than once during each 12-month period, conduct a
full-scope, on-site examination of each insured depository institution.
(2) EXAMINATIONS BY CORPORATION.--Paragraph (1) shall
not apply during any 12-month period in which the Corporation has
conducted a full-scope, on-site examination of the insured depository
institution.
(3) STATE EXAMINATIONS ACCEPTABLE.--The examinations
required by paragraph (1) may be conducted in alternate 12-month
periods, as appropriate, if the appropriate Federal banking agency
determines that an examination of the insured depository institution
conducted by the State during the intervening 12-month period carries
out the purpose of this subsection.
(4) 18-MONTH RULE FOR CERTAIN SMALL
INSTITUTIONS.--Paragraphs (1), (2), and (3) shall apply with
"18-month" substituted for "12-month" if--
(A) the insured depository institution has total assets of less
than $3,000,000,000;
(B) the institution is well capitalized, as defined in section
38;
(C) when the institution was most recently examined, it was found
to be well managed, and its composite condition--
(i) was found to be outstanding; or
(ii) was found to be outstanding or good, in the case of an
insured depository institution that has total assets of not more than
$200,000,000;
(D) the insured institution is not currently subject to a formal
enforcement proceeding or order by the Corporation or the appropriate
Federal banking agency; and
(E) no person acquired control of the institution during the
12-month period in which a full-scope, on-site examination would be
required but for this paragraph.
(5) CERTAIN GOVERNMENT-CONTROLLED INSTITUTIONS
EXEMPTED.--Paragraph (1) does not apply to--
(A) any institution for which the Corporation is conservator; or
(B) any bridge depository institution, none of the voting
securities of which are owned by a person or agency other than the
Corporation.
(6) COORDINATED EXAMINATIONS.--To minimize the
disruptive effects of examinations on the operations of insured
depository institutions--
(A) each appropriate Federal banking agency shall, to the extent
practicable and consistent with principles of safety and soundness and
the public interest--
(i) coordinate examinations to be conducted by that agency at an
insured depository institution and its affiliates;
(ii) coordinate with the other appropriate Federal banking
agencies in the conduct of such examinations;
(iii) work to coordinate with the appropriate State bank
supervisor--
(I) the conduct of all examinations made pursuant to this
subsection; and
(II) the number, types, and frequency of reports required to be
submitted to such agencies and supervisors by insured depository
institutions, and the type and amount of information required to be
included in such reports; and
(iv) use copies of reports of examinations of insured depository
institutions made by any other Federal banking agency or appropriate
State bank supervisor to eliminate duplicative requests for
information; and
(B) not later than 2 years after September 23, 1994, the Federal
banking agencies shall jointly establish and implement a system for
determining which one of the Federal banking agencies or State bank
supervisors shall be the lead agency responsible for managing a unified
examination of each insured depository institution and its affiliates,
as required by this subsection.
(7) SEPARATE EXAMINATIONS PERMITTED.--Notwithstanding
paragraph (6), each appropriate Federal banking agency may conduct a
separate examination in an emergency or under other exigent
circumstances, or when the agency believes that a violation of law may
have occurred.
(8) REPORT.--At the time the system provided for in
paragraph (6) is established, the Federal banking agencies shall submit
a joint report describing the system to the Committee
on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Banking, Finance and Urban Affairs of the
House of Representatives. Thereafter, the Federal banking agencies
shall annually submit a joint report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Banking,
Finance and Urban Affairs of the House of Representatives regarding the
progress of the agencies in implementing the system and indicating
areas in which enhancements to the system, including legislature
improvements, would be appropriate.
(9) STANDARDS FOR DETERMINING ADEQUACY OF STATE
EXAMINATIONS.--The Federal Financial Institutions Examination
Council shall issue guidelines establishing standards to be used at the
discretion of the appropriate Federal banking agency for purposes of
making a determination under paragraph (3).
(10) AGENCIES AUTHORIZED TO INCREASE MAXIMUM ASSET AMOUNT OF
INSTITUTIONS FOR CERTAIN PURPOSES.--At any time after the end of
the 2-year period beginning on September 23, 1994, the appropriate
Federal banking agency, in the agency's discretion, may increase the
maximum amount limitation contained in paragraph (4)(C)(ii), by
regulation, from $200,000,000 to an amount not to exceed $3,000,000,000
for purposes of such paragraph, if the agency determines that the
greater amount would be consistent with the principles of safety and
soundness for insured depository institutions.
[Codified to 12 U.S.C. 1820(d)]
[Source: Section 2[10(d)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 111(a)(1) of title I of the Act of December 19, 1991 (Pub. L.
No. 102--242; 105 Stat. 2240), effective December 19, 1992; as amended
by section 1603(b)(1)(A) of title XVI of the Act of October 28, 1992
(Pub. L. No. 102--550; 106 Stat. 4078), effective December 19, 1991;
sections 305, 306 and 349 of title III of the Act of September 23, 1994
(Pub. L. No. 103--325; 108 Stat. 2216, 2217 and 2242, respectively),
effective September 23, 1994; sections 2221 and 2243(b) of title II of
the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat.
3009--414 and 3009--419, respectively), effective September 30, 1996;
section 605 of title VI of the Act of October 13, 2006 (Pub. L. No.
109--351; 120 Stat. 1981), effective October 13, 2006; section 1 of the
Act of January 11, 2007 (Pub. L. No. 109--473; 120 Stat. 3561),
effective January 11, 2007; section 1604(b)(1)(B) of title VII of the
Act of July 30, 2008 (Pub. L. No. 110--289; 122 Stat. 2829), effective
July 30, 2008; section 172(a) of title III of the Act of July 21, 2010
(Pub. L. No. 111--203; 124 Stat. 1438 and 1439), effective July 21,
2010; section 83001 of title LXXXIII of the Act of December 4, 2015
(Pub. L. No. 114-94; 129 Stat. 1796), effective December 4, 2015;
section 210 of title II of the Act of May 24, 2018 (Pub. L. No.
115--174; 132 Stat. 1316), effective May 24, 2018]
(e) Examination Fees.--
(1) REGULAR AND SPECIAL EXAMINATIONS OF DEPOSITORY
INSTITUTIONS.--The cost of conducting any regular examination or
special examination of any depository institution under subsection
(b)(2), (b)(3), or (d) or of any entity described in section 3(q)(2)
may be assessed by the Corporation against the institution or entity to
meet the expenses of the Corporation in carrying out such examinations.
(2) EXAMINATION OF AFFILIATES.--The cost of conducting
any examination of any affiliate of any insured depository institution
under subsection (b)(4) may be assessed by the Corporation against each
affiliate which is examined to meet the Corporation's expenses in
carrying out such examination.
(3) ASSESSMENT AGAINST DEPOSITORY INSTITUTION IN CASE OF
AFFILIATE'S REFUSAL TO PAY.--
(A) IN GENERAL.--Subject to subparagraph (B), if any
affiliate of any insured depository institution--
(i) refuses to pay any assessment under paragraph (2); or
(ii) fails to pay any such assessment before the end of the
60-day period beginning on the date the affiliate receives notice of
the assessment,
the Corporation may assess such cost against, and collect such cost
from, the depository institution.
(B) AFFILIATE OF MORE THAN 1 DEPOSITORY INSTITUTION.--If
any affiliate referred to in subparagraph (A) is an affiliate of more
than 1 insured depository institution, the
assessment under subparagraph (A) may be
assessed against the depository institution in such proportions as the
Corporation determines to be appropriate.
(4) CIVIL MONEY PENALTY FOR AFFILIATE'S REFUSAL TO
COOPERATE.--
(A) PENALTY IMPOSED.--If any affiliate of any insured
depository institution--
(i) refuses to permit an examiner appointed by the Board of
Directors under subsection (b)(1) to conduct an examination; or
(ii) refuses to provide any information required to be disclosed
in the course of any examination, the depository institution shall
forfeit and pay a penalty of not more than $5,000 for each day that any
such refusal continues.
(B) ASSESSMENT AND COLLECTION.--Any penalty imposed
under subparagraph (A) shall be assessed and collected by the
Corporation in the manner provided in
section 8(i)(2).
(5) DEPOSITS OF EXAMINATION ASSESSMENT.--Amounts
received by the Corporation under this subsection (other than paragraph
(4)) may be deposited in the manner provided in
section 13.
[Codified to 12 U.S.C. 1820(e)]
[Source: Section 2[10(e)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 113(a)(2) of title I of the Act of December 19, 1991 (Pub. L.
No. 102--242; 105 Stat. 2246), effective December 19, 1991; section
318(d) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203;
124 Stat. 1527), effective July 21, 2010]
(f) Preservation of Agency Records.--
(1) IN GENERAL.--A Federal banking agency may cause any
and all records, papers, or documents kept by the agency or in the
possession or custody of the agency to be--
(A) photographed or microphotographed or otherwise reproduced
upon film; or
(B) preserved in any electronic medium or format which is capable
of--
(i) being read or scanned by computer; and
(ii) being reproduced from such electronic medium or format by
printing any other form of reproduction of electronically stored data.
(2) TREATMENT AS ORIGINAL RECORDS.--Any photographs,
microphotographs, or photographic film or copies thereof described in
paragraph (1)(A) or reproduction of electronically stored data
described in paragraph (1)(B) shall be deemed to be an original record
for all purposes, including introduction in evidence in all State and
Federal courts or administrative agencies, and shall be admissible to
prove any act, transaction, occurrence, or event therein recorded.
(3) AUTHORITY OF THE FEDERAL BANKING AGENCIES.--Any
photographs, microphotographs, or photographic film or copies thereof
described in paragraph (1)(A) or reproduction of electronically stored
data described in paragraph (1)(B) shall be preserved in such manner as
the Federal banking agency shall prescribe, and the original records,
papers, or documents may be destroyed or otherwise disposed of as the
Federal banking agency may direct.
[Codified to 12 U.S.C. 1820(f)]
[Source: Section 2[10(f), formerly 10(e) and 10(g)] of the Act
of September 21, 1950 (Pub. L. No. 797; 64 Stat. 883), effective
September 21, 1950, as redesignated by section 4 of the Act of July 14,
1960 (Pub. L. No. 86--671; 74 Stat. 551), effective January 1, 1961; as
redesignated by section 113(a)(1) of title I of the Act of December 19,
1991 (Pub. L. No. 102--242; 105 Stat. 2246), effective December 19,
1991; section 723(a) of title VII of the Act of October 13, 2006 (Pub.
L. No. 109--351; 120 Stat. 2000), effective October 13,
2006]
(g) Authority To Prescribe Regulations and Definitions.--
Except to the extent that authority under this Act is conferred on any
of the Federal banking agencies other than the Corporation, the
Corporation may--
(1) prescribe regulations to carry out this Act; and
(2) by regulation define terms as necessary to carry out this
Act.
[Codified to 12 U.S.C. 1820(g)]
[Source: Section 2[10(f)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 302(d) of title III of the Act of December 19, 1991 (Pub. L.
No. 102--242; 105 Stat. 2349), effective on the earlier of-- 1) 180
days after the date on which final regulations promulgated in
accordance with section 302(c) of the Act become effective; or 2)
January 1, 1994; as redesignated by section 303(b)(5) of title III of
the Act of October 28, 1992 (Pub. L. No. 102--558; 106 Stat. 4225),
effective March 1, 1992]
(h) Coordination of Examination Authority.--
(1) STATE BANK SUPERVISORS OF HOME AND HOST STATES.--
(A) HOME STATE OF BANK.--The appropriate State bank
supervisor of the home State of an insured State bank has authority to
examine and supervise the bank.
(B) HOST STATE BRANCHES.--The State bank supervisor of
the home State of an insured State bank and any State bank supervisor
of an appropriate host State shall exercise its respective authority to
supervise and examine the branches of the bank in a host State in
accordance with the terms of any applicable cooperative agreement
between the home State bank supervisor and the State bank supervisor of
the relevant host State.
(C) SUPERVISORY FEES.--Except as expressly provided in a
cooperative agreement between the State bank supervisors of the home
State and any host State of an insured State bank, only the State bank
supervisor of the home State of an insured State bank may levy or
charge State supervisory fees on the bank.
(2) HOST STATE EXAMINATION.--
(A) IN GENERAL.--With respect to a branch operated in a
host State by an out-of-State insured State bank that resulted from an
interstate merger transaction approved under section 44, or that was
established in such State pursuant to section 5155(g) of the Revised
Statutes of the United States, the third undesignated paragraph of
section 9 of the Federal Reserve Act or section 18(d)(4) of this Act,
the appropriate State bank supervisor of such host State may--
(i) with written notice to the State bank supervisor of the
bank's home State and subject to the terms of any applicable
cooperative agreement with the State bank supervisor of such home
State, examine such branch for the purpose of determining compliance
with host State laws that are applicable pursuant to section 24(j),
including those that govern community reinvestment, fair lending, and
consumer protection; and
(ii) if expressly permitted under and subject to the terms of a
cooperative agreement with the State bank supervisor of the bank's
home State or if such out-of-State insured State bank has been
determined to be in a troubled condition by either the State bank
supervisor of the bank's home State or the bank's appropriate Federal
banking agency, participate in the examination of the bank by the State
bank supervisor of the bank's home State to ascertain that the
activities of the branch in such host State are not conducted in an
unsafe or unsound manner.
(B) NOTICE OF DETERMINATION.--
(i) IN GENERAL.--The State bank supervisor of the home
State of an insured State bank shall notify the State bank supervisor
of each host State of the bank if there has been a final determination
that the bank is in a troubled condition.
(ii) TIMING OF NOTICE.--The State bank supervisor of the
home State of an insured State bank shall provide notice under clause
(i) as soon as is reasonably possible, but in all cases not later than
15 business days after the date on which the State bank supervisor has
made such final determination or has received written notification of
such final determination.
(3) HOST STATE ENFORCEMENT.--If the State bank
supervisor of a host State determines that a branch of an out-of-State
insured State bank is violating any law of the host State that is
applicable to such branch pursuant to section 24(j), including a law
that governs community reinvestment, fair lending, or consumer
protection, the State bank supervisor of the host State or, to the
extent authorized by the law of the host State, a host State law
enforcement officer may, with written notice to the State bank
supervisor of the bank's home State and subject to the terms of any
applicable cooperative agreement with
the State bank supervisor of the bank's home
State, undertake such enforcement actions and proceedings as would be
permitted under the law of the host State as if the branch were a bank
chartered by that host State.
(4) COOPERATIVE AGREEMENT.--
(A) IN GENERAL.--The State bank supervisors from 2 or
more States may enter into cooperative agreements to facilitate State
regulatory supervision of State banks, including cooperative agreements
relating to the coordination of examinations and joint participation in
examinations.
(B) DEFINITION.--For purposes of this subsection, the
term "cooperative agreement" means a written agreement that is
signed by the home State bank supervisor and the host State bank
supervisor to facilitate State regulatory supervision of State banks,
and includes nationwide or multi-State cooperative agreements and
cooperative agreements solely between the home State and host State.
(C) RULE OF CONSTRUCTION.--Except for State bank
supervisors, no provision of this subsection relating to such
cooperative agreements shall be construed as limiting in any way the
authority of home State and host State law enforcement officers,
regulatory supervisors, or other officials that have not signed such
cooperative agreements to enforce host State laws that are applicable
to a branch of an out-of-State insured State bank located in the host
State pursuant to section 24(j).
(5) FEDERAL REGULATORY AUTHORITY.--No provision of this
subsection shall be construed as limiting in any way the authority of
any Federal banking agency.
(6) STATE TAXATION AUTHORITY NOT AFFECTED.--No provision
of this subsection shall be construed as affecting 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 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.
(7) DEFINITIONS.--For purpose of this section, the
following definitions shall apply:
(A) HOST STATE, HOME STATE, OUT-OF-STATE BANK.--The
terms "host State", "home State", and "out-of-State
bank" have the same meanings as in section 44(g).
(B) STATE SUPERVISORY FEES.--The term "State
supervisory fees" means assessments, examination fees, branch fees,
license fees, and all other fees that are levied or charged by a State
bank supervisor directly upon an insured State bank or upon branches of
an insured State bank.
(C) TROUBLED CONDITION.--Solely for purposes of
paragraph (2)(B), an insured State bank has been determined to be in
troubled condition' if the bank--
(i) has a composite rating, as determined in its most recent
report of examination, of 4 or 5 under the Uniform Financial
Institutions Ratings System;
(ii) is subject to a proceeding initiated by the Corporation for
termination or suspension of deposit insurance; or
(iii) is subject to a proceeding initiated by the State bank
supervisor of the bank's home State to vacate, revoke, or terminate
the charter of the bank, or to liquidate the bank, or to appoint a
receiver for the bank.
(D) FINAL DETERMINATION.--For purposes of paragraph
(2)(B), the term "final determination" means the transmittal of a
report of examination to the bank or transmittal of official notice of
proceedings to the bank.
[Codified to 12 U.S.C. 1820(h)]
[Source: Section 2[10(h)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882, effective September 21, 1950, as added by
section 105 of title I of the Act of September 29, 1994 (Pub. L. No.
103--328; 108 Stat. 2357), effective September 29, 1994; section 711 of
title VII of the Act of October 13, 2006 (Pub. L. No. 109--351; 120
Stat. 1991), effective October 13, 2006]
(i) Flood Insurance Compliance by Insured Depository
Institutions.--
(1) EXAMINATIONS.--The appropriate Federal banking
agency shall, during each scheduled on-site examination required by
this section, determine whether the insured depository institution is
complying with the requirements of the national flood insurance
program.
(2) REPORT.--
(A) REQUIREMENT.--Not later than 1 year after
[September 23, 1994], the date of enactment of the Riegle Community
Development and Regulatory Improvement Act of 1994 and biennially
thereafter for the next 4 years, each appropriate Federal banking
agency shall submit a report to the Congress on compliance by insured
depository institutions with the requirements of the national flood
insurance program.
(B) CONTENTS.--Each report submitted under this
paragraph shall include a description of the methods used to determine
compliance, the number of institutions examined during the reporting
year, a listing and total number of institutions found not to be in
compliance, actions taken to correct incidents of noncompliance, and an
analysis of compliance, including a discussion of any trends, patterns,
and problems, and recommendations regarding reasonable actions to
improve the efficiency of the examinations processes.
[Codified to 12 U.S.C. 1820(i)]
[Source: Section 2[10(i)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 529(a) of title V of the Act of September 23, 1994 (Pub. L. No.
103--325; 108 Stat. 2266), effective September 23,
1994]
(j) Consultation Among Examiners.--
(1) IN GENERAL.--Each appropriate Federal banking agency
shall take such action as may be necessary to ensure that examiners
employed by the agency--
(A) consult on examination activities with respect to any
depository institution; and
(B) achieve an agreement and resolve any inconsistencies in the
recommendations to be given to such institution as a consequence of any
examinations.
(2) EXAMINER-IN-CHARGE.--Each appropriate Federal
banking agency shall consider appointing an examiner-in-charge with
respect to a depository institution to ensure consultation on
examination activities among all of the examiners of that agency
involved in examinations of the institution.
[Codified to 12 U.S.C. 1820(j)]
[Source: Section 2[1(j)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 2244(a) of title II of the Act of September 30, 1996 (Pub. L.
No. 104--208; 110 Stat. 3009--419), effective September 30,
1996]
(k) One-year restrictions on federal examiners of financial
institutions--
(1) IN GENERAL.--In addition to other applicable
restrictions set forth in Title 18, the penalties set forth in
paragraph (6) of this subsection shall apply to any person who--
(A) was an officer or employee (including any special Government
employee) of a Federal banking agency or a Federal reserve bank;
(B) served 2 or more months during the final 12 months of his or
her employment with such agency or entity as the senior examiner (or a
functionally equivalent position) of a depository institution or
depository institution holding company with continuing, broad
responsibility for the examination (or inspection) of that depository
institution or depository institution holding company on behalf of the
relevant agency or Federal reserve bank; and
(C) within 1 year after the termination date of his or her
service or employment with such agency or entity, knowingly accepts
compensation as an employee, officer, director, or consultant from--
(i) such depository institution, any depository institution
holding company that controls such depository institution, or any other
company that controls such depository institution; or
(ii) such depository institution holding company or any
depository institution that is controlled by such depository
institution holding company.
(2) DEFINITIONS.--For purposes of this
subsection--
(A) the term "depository institution" includes an uninsured
branch or agency of a foreign bank, if such branch or agency is located
in any State; and
(B) the term "depository institution holding company"
includes any foreign bank or company described in section 8(a) of the
International Banking Act of 1978.
(3) RULES OF CONSTRUCTION.--For purposes of this
subsection, a foreign bank shall be deemed to control any branch or
agency of the foreign bank, and a person shall be deemed to act as a
consultant for a depository institution, depository institution holding
company, or other company, only if such person directly works on
matters for, or on behalf of, such depository institution, depository
institution holding company, or other company.
(4) REGULATIONS.--
(A) IN GENERAL.--Each Federal banking agency shall
prescribe rules or regulations to administer and carry out this
subsection, including rules, regulations, or guidelines to define the
scope of persons referred to in paragraph (1)(B).
(B) CONSULTATION REQUIRED.--The Federal banking agencies
shall consult with each other for the purpose of assuring that the
rules and regulations issued by the agencies under subparagraph (A)
are, to the extent possible, consistent, comparable, and practicable,
taking into account any differences in the supervisory programs
utilized by the agencies for the supervision of depository institutions
and depository institution holding companies.
(5) WAIVER.--
(A) AGENCY AUTHORITY.--A Federal banking agency may
grant a waiver, on a case by case basis, of the restriction imposed by
this subsection to any officer or employee (including any special
Government employee) of that agency, and the Board of Governors of the
Federal Reserve System may grant a waiver of the restriction imposed by
this subsection to any officer or employee of a Federal reserve bank,
if the head of such agency certifies in writing that granting the
waiver would not affect the integrity of the supervisory program of the
relevant Federal banking agency.
(B) DEFINITION.--For purposes of this paragraph, the
head of an agency is--
(i) the Comptroller of the Currency, in the case of the Office of
the Comptroller of the Currency;
(ii) the Chairman of the Board of Governors of the Federal
Reserve System, in the case of the Board of Governors of the Federal
Reserve System; and
(iii) the Chairperson of the Board of Directors, in the case of
the Corporation.
(iv) [Repealed]
(6) PENALTIES.--
(A) IN GENERAL.--In addition to any other
administrative, civil, or criminal remedy or penalty that may otherwise
apply, whenever a Federal banking agency determines that a person
subject to paragraph (1) has become associated, in the manner described
in paragraph (1)(C), with a depository institution, depository
institution holding company, or other company for which such agency
serves as the appropriate Federal banking agency, the agency shall
impose upon such person one or more of the following penalties:
(i) Industry-wide prohibition order.--The Federal
banking agency shall serve a written notice or order in accordance with
and subject to the provisions of section 1818(e)(4) of this title for
written notices or orders under paragraph (1) or (2) of section 1818(e)
of this title, upon such person of the intention of the agency--
(I) to remove such person from office or to prohibit such person
from further participation in the conduct of the affairs of the
depository institution, depository institution holding company, or
other company for a period of up to 5 years; and
(II) to prohibit any further participation by such person, in any
manner, in the conduct of the affairs of any insured depository
institution for a period of up to 5 years.
(ii)
Civil monetary penalty.--The Federal banking
agency may, in an administrative proceeding or civil action in an
appropriate United States district court, impose on such person a civil
monetary penalty of not more than $250,000. Any administrative
proceeding under this clause shall be conducted in accordance with
section 1818(i) of this title. In lieu of an action by the Federal
banking agency under this clause, the Attorney General of the United
States may bring a civil action under this clause in the appropriate
United States district court.
(B) SCOPE OF PROHIBITION ORDER.--Any person subject to
an order issued under subparagraph (A)(i) shall be subject to
paragraphs (6) and (7) of section 1818(e) of this title in the same
manner and to the same extent as a person subject to an order issued
under such section.
(C) DEFINITIONS.--Solely for purposes of this paragraph,
the "appropriate Federal banking agency" for a company that is
not a depository institution or depository institution holding company
shall be the Federal banking agency on whose behalf the person
described in paragraph (1) performed the functions described in
paragraph (1)(B).
[Codified to 12 U.S.C. 1820(k)]
[Source: Section 6063 of the Act of December 17, 2004 (Pub. L. No.
108--458; 118 Stat. 3638), effective September 21, 1950; as amended by
section 363(4)(B) of title III of the Act of July 21, 2010 (Pub. L. No.
111--203; 124 Stat. 1552), effective July 21, 2010]
NOTES
Derivation. Section 10(a) derives from section 12B(k) of the
Federal Reserve Act, as added by section 8 of the Act of June 16, 1933
(Pub. L. No. 66; 48 Stat. 172), effective June 16, 1933. Section 12B(k)
of the Federal Reserve Act was amended by section 101[12B(k)] of
title I of the Act of August 23, 1935 (Pub. L. No. 305; 49 Stat. 693),
effective August 23, 1935, which restated what is now section 10(a) and
added what is now section 10(b) of the Federal Deposit Insurance Act.
By section 1 of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 873), effective September 21, 1950, section 12B of the Federal
Reserve Act was withdrawn as a part of that Act and was made a separate
act known as the "Federal Deposit Insurance Act."
Sections 10(c)--(e) were enacted by section 2[10(c)--(g)] of the
Act of September 21, 1950 (Pub. L. No. 797; 64 Stat. 882), effective
September 21, 1950.
Sections 10(h) and 10(i) were enacted by sections 105 of title I and
529(a) of title V, respectively, of the Act of September 23, 1994 (Pub.
L. No. 103--325; 108 Stat. 2357 and 2266, respectively), effective
September 23, 1994.
Section 10(j) was enacted by section 2244(a) of title II of the Act
of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--419),
effective September 30, 1996.
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