FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
(m) New Depository Institutions.--
(1) ORGANIZATION AUTHORIZED.--As soon as possible after
the default of an insured depository institution, the Corporation, if
it finds that it is advisable and in the interest of the depositors of
the insured depository institution in default or the public shall
organize a new national bank or Federal savings association in the same
community as the insured depository institution in default to assume
the insured deposits of such depository institution in default and
otherwise to perform temporarily the functions hereinafter provided
for.
(2) ARTICLES OF ASSOCIATION.--The articles of
association and the organization certificate of the new depository
institution shall be executed by representatives designated by the
Corporation.
(4) EXECUTIVE OFFICER.--The new depository institution
shall not have a board of directors, but shall be managed by an
executive officer appointed by the Board of Directors of the
Corporation who shall be subject to its directions.
(5) SUBJECT TO LAWS RELATING TO NATIONAL BANKS.--In all
other respects the new depository institution shall be organized in
accordance with the then existing provisions of law relating to the
organization of national banking associations.
(6) NEW DEPOSITS.--The new depository institution may,
with the approval of the Corporation, accept new deposits which shall
be subject to withdrawal on demand and which, except where the new
depository institution is the only depository institution in the
community, shall not exceed an amount equal to the standard maximum
deposit insurance amount from any depositor.
(7) INSURED STATUS.--The new depository institution,
without application to or approval by the Corporation, shall be an
insured depository institution and shall maintain on deposit with the
Federal Reserve bank of its district reserves in the amount required by
law for member banks, but it shall not be required to subscribe for
stock of the Federal Reserve bank.
(8) INVESTMENTS.--Funds of the new depository
institution shall be kept on hand in cash, invested in obligations of
the United States or obligations guaranteed as to principal and
interest by the United States, or deposited with the Corporation, any
Federal Reserve bank, or, to the extent of the insurance coverage on
any such deposit, an insured depository institution.
(9) CONDUCT OF BUSINESS.--The new depository
institution, unless otherwise authorized by the Comptroller of the
Currency shall transact business only as authorized by this Act and as
may be incidental to its organization.
(10) EXEMPT STATUS.--Notwithstanding any other provision
of Federal or State law, the new depository institution, its franchise,
property, and income shall be exempt from all taxation now or hereafter
imposed by the United States, by any territory, dependency, or
possession thereof, or by any State, county, municipality, or local
taxing authority.
(11) TRANSFER OF DEPOSITS.--(A) Upon the organization of
a new depository institution, the Corporation shall promptly make
available to it an amount equal to the estimated insured deposits of
such depository institution in default plus the estimated amount of the
expenses of operating the new depository institution, and shall
determine as soon as possible the amount due each depositor for the
depositor's insured deposit in the insured depository institution in
default, and the total expenses of operation of the new depository
institution.
(B) Upon such determination, the amounts so estimated and made
available shall be adjusted to conform to the amounts so determined.
(12) EARNINGS.--Earnings of the new depository
institution shall be paid over or credited to the Corporation in such
adjustment.
(13) LOSSES.--If any new depository institution, during
the period it continues its status as such, sustains any losses with
respect to which it is not effectively protected except by reason of
being an insured depository institution, the Corporation shall furnish
to it additional funds in the amount of such losses.
(14) PAYMENT OF INSURED DEPOSITS.--(A) The new
depository institution shall assume as transferred deposits the payment
of the insured deposits of such depository institution in default to
each of its depositors.
(B) Of the amounts so made available, the Corporation shall
transfer to the new depository institution, in cash, such sums as may
be necessary to enable it to meet its expenses of operation and
immediate cash demands on such transferred deposits, and the remainder
of such amounts shall be subject to withdrawal by the new depository
institution on demand.
(15) ISSUANCE OF STOCK.--(A) Whenever in the judgment of
the Board of Directors it is desirable to do so, the Corporation shall
cause capital stock of the new depository institution to be offered for
sale on such terms and conditions as the Board of
Directors
shall deem advisable in an amount sufficient,
in the opinion of the Board of Directors, to make possible the conduct
of the business of the new depository institution on a sound basis.
(B) The stockholders of the insured depository institution in
default shall be given the first opportunity to purchase any shares of
common stock so offered.
(16) ISSUANCE OF CERTIFICATE.--Upon proof that an
adequate amount of capital stock in the new depository institution has
been subscribed and paid for in cash, the Comptroller of the Currency
shall require the articles of association and the organization
certificate to be amended to conform to the requirements for the
organization of a national bank or Federal savings association, and
thereafter, when the requirements of law with respect to the
organization of a national bank or Federal savings association have
been complied with, the Comptroller of the Currency shall issue to the
depository institution a certificate of authority to commence business,
and thereupon the depository institution shall cease to have the status
of a new depository institution, shall be managed by directors elected
by its own shareholders, may exercise all the powers granted by law,
and shall be subject to all provisions of law relating to national
banks or Federal savings associations. Such depository institution
shall thereafter be an insured national bank or Federal savings
association, without certification to or approval by the Corporation.
(17) TRANSFER TO OTHER INSTITUTION.--If the capital
stock of the new depository institution is not offered for sale, or if
an adequate amount of capital for such new depository institution is
not subscribed and paid for, the Board of Directors may offer to
transfer its business to any insured depository institution in the same
community which will take over its assets, assume its liabilities, and
pay to the Corporation for such business such amount as the Board of
Directors may deem adequate; or the Board of Directors in its
discretion may change the location of the new depository institution to
the office of the Corporation or to some other place or may at any time
wind up its affairs as herein provided.
(18) WINDING UP.--Unless the capital stock of the new
depository institution is sold or its assets are taken over and its
liabilities are assumed by an insured depository institution as above
provided within 2 years after the date of its organization, the
Corporation shall wind up the affairs of such depository institution,
after giving such notice, if any, as the Comptroller of the Currency
may require, and shall certify to the Comptroller of the Currency the
termination of the new depository institution. Thereafter the
Corporation shall be liable for the obligations of such depository
institution and shall be the owner of its assets.
(19) APPLICABILITY OF CERTAIN LAWS.--The provisions of
sections 5220 and 5221 of the Revised Statutes shall not apply to a new
depository institution under this subsection.
[Codified to 12 U.S.C. 1821(m)]
[Source: Section 2[11(m)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 213 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 243), effective August 9, 1989; section 2(c)(1) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3602), effective date shall take effect on the date on which the final regulations required under section 2109(a)(2), of the Federal Deposit Insurance Reform Act of 2005 take effect; section 1604(3) of title VII of the Act of July 30, 2008 (Pub. L. No. 110--289; 122 Stat. 2827), effective July 30, 2008; section 363(5)(C) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1552 and 1553), effective July 21, 2010]
(n) Bridge Depository Institutions.--
(1) ORGANIZATION.--
(A) PURPOSE.--When 1 or more insured depository
institutions are in default, or when the Corporation anticipates that 1
or more insured depository institutions may become in default, the
Corporation may, in its discretion, organize, and the Office of the
Comptroller of the Currency with respect to 1 or more insured banks or
1 or more insured savings associations, shall charter, 1 or more
national banks or Federal savings associations, as appropriate, with
respect thereto with the powers and attributes of national
banking
associations or Federal savings associations
as applicable, subject to the provisions of this subsection, to be
referred to as "bridge depository institutions."
(B) AUTHORITIES.--Upon the granting of a charter to a
bridge depository institution, the bridge depository institution may--
(i) assume such deposits of such insured depository institution
or institutions that is or are in default or in danger of default as
the Corporation may, in its discretion, determine to be appropriate;
(ii) assume such other liabilities (including liabilities
associated with any trust business) of such insured depository
institution or institutions that is or are in default or in danger of
default as the Corporation may, in its discretion, determine to be
appropriate;
(iii) purchase such assets (including assets associated with any
trust business) of such insured depository institution or institutions
that is or are in default or in danger of default as the Corporation
may, in its discretion, determine to be appropriate; and
(iv) perform any other temporary function which the Corporation
may, in its discretion, prescribe in accordance with this Act.
(C) ARTICLES OF ASSOCIATION.--The articles of
association and organization certificate of a bridge depository
institution as approved by the Corporation shall be executed by 3
representatives designated by the Corporation.
(D) INTERIM DIRECTORS.--A bridge depository institution
shall have an interim board of directors consisting of not fewer than 5
nor more than 10 members appointed by the Corporation.
(E) NATIONAL BANK OR FEDERAL SAVINGS ASSOCIATION.--A
bridge depository institution shall be organized as a national bank, in
the case of 1 or more insured banks, and as a Federal savings
association, in the case of 1 or more insured savings associations.
(2) CHARTERING.--
(A) CONDITIONS.--A national bank or Federal savings
association may be chartered by the Comptroller of the Currency as a
bridge depository institution only if the Board of Directors determines
that--
(i) the amount which is reasonably necessary to operate such
bridge depository institution will not exceed the amount which is
reasonably necessary to save the cost of liquidating, including paying
the insured accounts of, 1 or more insured depository institutions in
default or in danger of default with respect to which the bridge
depository institution is chartered;
(ii) the continued operation of such insured depository
institution or institutions in default or in danger of default with
respect to which the bridge depository institution is chartered is
essential to provide adequate banking services in the community where
each such depository institution in default or in danger of default is
located; or
(iii) the continued operation of such insured depository
institution or institutions in default or in danger of default with
respect to which the bridge depository institution is chartered is in
the best interest of the depositors of such depository institution or
institutions in default or in danger of default or the public.
(B) INSURED NATIONAL BANK OR FEDERAL SAVINGS
ASSOCIATION.--A bridge depository institution shall be an insured
depository institution from the time it is chartered as a national bank
or Federal savings association.
(C) BRIDGE BANK TREATED AS BEING IN DEFAULT FOR CERTAIN
PURPOSES.--A bridge depository institution shall be treated as an
insured depository institution in default at such times and for such
purposes as the Corporation may, in its discretion, determine.
(D) MANAGEMENT.--A bridge depository institution, upon
the granting of its charter, shall be under the management of a board
of directors consisting of not fewer than 5 nor more than 10 members
appointed by the Corporation.
(E) BYLAWS.--The board of directors of a bridge
depository institution shall adopt such bylaws as may be approved by
the Corporation.
(3) TRANSFER OF ASSETS AND LIABILITIES.--
(A) IN GENERAL.--
(i) TRANSFER UPON GRANT OF CHARTER.--Upon the granting
of a charter to a bridge depository institution pursuant to this
subsection, the Corporation, as receiver, or any other receiver
appointed with respect to any insured depository institution in default
with respect to which the bridge depository institution is chartered
may transfer any assets and liabilities of such depository institution
in default to the bridge depository institution in accordance with
paragraph (1).
(ii) SUBSEQUENT TRANSFERS.--At any time after a charter
is granted to a bridge depository institution, the Corporation, as
receiver, or any other receiver appointed with respect to an insured
depository institution in default may transfer any assets and
liabilities of such insured depository institution in default as the
Corporation may, in its discretion, determine to be appropriate in
accordance with paragraph (1).
(iii) TREATMENT OF TRUST BUSINESS.--For purposes of this
paragraph, the trust business, including fiduciary appointments, of any
insured depository institution in default is included among its assets
and liabilities.
(iv) EFFECTIVE WITHOUT APPROVAL.--The transfer of any
assets or liabilities, including those associated with any trust
business, of an insured depository institution in default transferred
to a bridge depository institution shall be effective without any
further approval under Federal or State law, assignment, or consent
with respect thereto.
(B) INTENT OF CONGRESS REGARDING CONTINUING
OPERATIONS.--It is the intent of the Congress that, in order to
prevent unnecessary hardship or losses to the customers of any insured
depository institution in default with respect to which a bridge
depository institution is chartered, especially creditworthy farmers,
small businesses, and households, the Corporation should--
(i) continue to honor commitments made by the depository
institution in default to creditworthy customers, and
(ii) not interrupt or terminate adequately secured loans which
are transferred under subparagraph (A) and are being repaid by the
debtor in accordance with the terms of the loan instrument.
(4) POWERS OF BRIDGE DEPOSITORY INSTITUTIONS.--Each
bridge depository institution chartered under this subsection shall
have all corporate powers of, and be subject to the same provisions of
law as, a national bank or Federal savings association, as appropriate,
except that--
(A) the Corporation may--
(i) remove the interim directors and directors of a bridge
depository institution;
(ii) fix the compensation of members of the interim board of
directors and the board of directors and senior management, as
determined by the Corporation in its discretion, of a bridge depository
institution; and
(iii) waive any requirement established under section 5145, 5146,
5147, 5148, or 5149 of the Revised Statutes (relating to directors of
national banks) or section 31 of the Banking Act of 1933 which would
otherwise be applicable with respect to directors of a bridge
depository institution by operation of paragraph (2)(B);
(B) the Corporation may indemnify the representatives for
purposes of paragraph (1)(B) and the interim directors, directors,
officers, employees, and agents of a bridge depository institution on
such terms as the Corporation determines to be appropriate;
(C) no requirement under any provision of law relating to the
capital of a national bank shall apply with respect to a bridge
depository institution;
(D) the Comptroller of the Currency may establish a limitation on
the extent to which any person may become indebted to a bridge
depository institution without regard to the amount of the bridge
depository institution's capital or surplus;
(E)(i) the board of directors of a bridge depository
institution shall elect a chairperson who may also serve in the
position of chief executive officer, except that such person shall not
serve either as chairperson or as chief executive officer without the
prior approval of the Corporation; and
(ii) the board of directors of a bridge depository institution
may appoint a chief executive officer who is not also the chairperson,
except that such person shall not serve as chief executive officer
without the prior approval of the Corporation;
(F) a bridge depository institution shall not be required to
purchase stock of any Federal Reserve bank;
(G) the Comptroller of the Currency shall waive any requirement
for a fidelity bond with respect to a bridge depository institution at
the request of the Corporation;
(H) any judicial action to which a bridge depository institution
becomes a party by virtue of its acquisition of any assets or
assumption of any liabilities of a depository institution in default
shall be stayed from further proceedings for a period of up to 45 days
at the request of the bridge depository institution;
(I) no agreement which tends to diminish or defeat the right,
title or interest of a bridge depository institution in any asset of an
insured depository institution in default acquired by it shall be valid
against the bridge depository institution unless such agreement--
(i) is in writing,
(ii) was executed by such insured depository institution in
default and the person or persons claiming an adverse interest
thereunder, including the obligor, contemporaneously with the
acquisition of the asset by such insured depository institution in
default,
(iii) was approved by the board of directors of such insured
depository institution in default or its loan committee, which approval
shall be reflected in the minutes of said board or committee, and
(iv) has been, continuously from the time of its execution, an
official record of such insured depository institution in default;
(J) notwithstanding section
13(e)(2), any agreement relating to an extension of credit
between a Federal home loan bank or Federal Reserve bank and any
insured depository institution which was executed before the extension
of credit by such bank to such depository institution shall be treated
as having been executed contemporaneously with such extension of credit
for purposes of subparagraph (I); and
(K) except with the prior approval of the Corporation, a bridge
depository institution may not, in any transaction or series of
transactions, issue capital stock or be a party to any merger,
consolidation, disposition of assets or liabilities, sale or exchange
of capital stock, or similar transaction, or change its charter.
(5) CAPITAL.--
(A) NO CAPITAL REQUIRED.--The Corporation shall not be
required to--
(i) issue any capital stock on behalf of a bridge depository
institution chartered under this subsection; or
(ii) purchase any capital stock of a bridge depository
institution, except that notwithstanding any other provision of Federal
or State law, the Corporation may purchase and retain capital stock of
a bridge depository institution in such amounts and on such terms as
the Corporation, in its discretion, determines to be appropriate.
(B) OPERATING FUNDS IN LIEU OF CAPITAL.--Upon the
organization of a bridge depository institution, and thereafter, as the
Board of Directors may, in its discretion, determine to be necessary or
advisable, the Corporation may make available to the bridge depository
institution, upon such terms and conditions and in such form and
amounts as the Corporation may in its discretion determine, funds for
the operation of the bridge depository institution in lieu of capital.
(C) AUTHORITY TO ISSUE CAPITAL STOCK.--Whenever the
Board of Directors determines it is advisable to do so, the Corporation
shall cause capital stock of a bridge depository institution to be
issued and offered for sale in such amounts and on such terms and
conditions as the Corporation may, in its discretion, determine.
(D) CAPITAL LEVELS.--A bridge depository institution
shall not be considered an undercapitalized depository institution or a
critically undercapitalized depository institution for purposes of
section 10B(b) of the Federal Reserve Act.
(6) NO FEDERAL STATUS.--
(A) AGENCY STATUS.--A bridge depository institution is
not an agency, establishment, or instrumentality of the United States.
(B) EMPLOYEE STATUS.--Representatives for purposes of
paragraph (1)(B), interim directors, directors, officers, employees, or
agents of a bridge depository institution are not, solely by virtue of
service in any such capacity, officers or employees of the United
States. Any employee of the Corporation or of any Federal
instrumentality who serves at the request of the Corporation as a
representative for purposes of paragraph (1)(B), interim director,
director, officer, employee, or agent of a bridge depository
institution shall not--
(i) solely by virtue of service in any such capacity lose any
existing status as an officer or employee of the United States for
purposes of title 5, United States Code, or any other provision of law,
or
(ii) receive any salary or benefits for service in any such
capacity with respect to a bridge depository institution in addition to
such salary or benefits as are obtained through employment with the
Corporation or such Federal instrumentality.
(7) ASSISTANCE AUTHORIZED.--The Corporation may, in its
discretion, provide assistance under section 13(c) to facilitate any
transaction described in clause (i), (ii), or (iii) of paragraph
(10)(A) with respect to any bridge depository institution in the same
manner and to the same extent as such assistance may be provided under
such section with respect to an insured depository institution in
default, or to facilitate a bridge depository institution's acquisition
of any assets or the assumption of any liabilities of an insured
depository institution in default.
(8) ACQUISITION.--
(A) IN GENERAL.--The responsible agency shall notify the
Attorney General of any transaction involving the merger or sale of a
bridge depository institution requiring approval under
section 18(c) and if a report
on competitive factors is requested within 10 days, such transaction
may not be consummated before the 5th calendar day after the date of
approval by the responsible agency with respect thereto. If the
responsible agency has found that it must act immediately to prevent
the probable failure of 1 of the depository institutions involved, the
preceding sentence does not apply and the transaction may be
consummated immediately upon approval by the agency.
(B) BY OUT-OF-STATE HOLDING COMPANY.--Any depository
institution, including an out-of-State depository institution, or any
out-of-State depository institution holding company may acquire and
retain the capital stock or assets of, or otherwise acquire and retain
a bridge depository institution if the bridge depository institution at
any time had assets aggregating $500,000,000 or more, as determined by
the Corporation on the basis of the bridge depository institution's
reports of condition or on the basis of the last available reports of
condition of any insured depository institution in default, which
institution has been acquired, or whose assets have been acquired, by
the bridge depository institution. The acquiring entity may acquire the
bridge depository institution only in the same manner and to the same
extent as such entity may acquire an insured depository institution in
default under section
13(f)(2).
(9) DURATION OF BRIDGE DEPOSITORY INSTITUTIONS.--Subject
to paragraphs (11) and (12), the status of a bridge depository
institution as such shall terminate at the end of the 2-year period
following the date it was granted a charter. The Board of Directors
may, in its discretion, extend the status of the bridge depository
institution as such for 3 additional 1-year periods.
(10) TERMINATION OF BRIDGE DEPOSITORY INSTITUTIONS
STATUS.--The status of any bridge depository institution as such
shall terminate upon the earliest of--
(A) the merger or consolidation of the bridge depository
institution with a depository institution that is not a bridge
depository institution;
(B) at the election of the Corporation, the sale of a majority of
the capital stock of the bridge depository institution to an entity
other than the Corporation and other than another bridge depository
institution;
(C) the sale of 80 percent, or more, of the capital stock of the
bridge depository institution to an entity other than the Corporation
and other than another bridge depository institution;
(D) at the election of the Corporation, either the assumption of
all or substantially all of the deposits and other liabilities of the
bridge depository institution by a depository institution holding
company or a depository institution that is not a bridge depository
institution, or the acquisition of all or substantially all of the
assets of the bridge depository institution by a depository institution
holding company, a depository institution that is not a bridge
depository institution, or other entity as permitted under applicable
law; and
(E) the expiration of the period provided in paragraph (9), or
the earlier dissolution of the bridge depository institution as
provided in paragraph (12).
(11) EFFECT OF TERMINATION EVENTS.--
(A) MERGER OR CONSOLIDATION.--A bridge depository
institution that participates in a merger or consolidation as provided
in paragraph (10)(A) shall be for all purposes a national bank or a
Federal savings association, as the case may be, with all the rights,
powers, and privileges thereof, and such merger or consolidation shall
be conducted in accordance with, and shall have the effect provided in,
the provisions of applicable law.
(B) CHARTER CONVERSION.--Following the sale of a
majority of the capital stock of the bridge depository institution as
provided in paragraph (10)(B), the Corporation may amend the charter of
the bridge depository institution to reflect the termination of the
status of the bridge depository institution as such, whereupon the
depository institution shall remain a national bank or a Federal
savings association, as the case may be, with all of the rights,
powers, and privileges thereof, subject to all laws and regulations
applicable thereto.
(C) SALE OF STOCK.--Following the sale of 80 percent or
more of the capital stock of a bridge depository institution as
provided in paragraph (10)(C), the depository institution shall remain
a national bank or a Federal savings association, as the case may be,
with all of the rights, powers, and privileges thereof, subject to all
laws and regulations applicable thereto.
(D) ASSUMPTION OF LIABILITIES AND SALE OF ASSETS.--
Following the assumption of all or substantially all of the liabilities
of the bridge depository institution, or the sale of all or
substantially all of the assets of the bridge depository institution,
as provided in paragraph (10)(D), at the election of the Corporation
the bridge depository institution may retain its status as such for the
period provided in paragraph (9).
(E) EFFECT ON HOLDING COMPANIES.--A depository
institution holding company acquiring a bridge depository institution
under section 13(f),
paragraph (8)(B) (or any predecessor provision), or both provisions,
shall not be impaired or adversely affected by the termination of the
status of a bridge depository institution as a result of subparagraph
(A), (B), (C), or (D) of paragraph (10), and shall be entitled to the
rights and privileges provided in section 13(f).
(F) AMENDMENTS TO CHARTER.--Following the consummation
of a transaction described in subparagraph (A), (B), (C), or (D) of
paragraph (10), the charter of the resulting institution shall be
amended to reflect the termination of bridge depository institution
status, if appropriate.
(12) DISSOLUTION OF BRIDGE DEPOSITORY INSTITUTION.--
(A) IN GENERAL.--Notwithstanding any other provision of
State or Federal law, if the bridge depository institution's status as
such has not previously been terminated by the occurrence of an event
specified in subparagraph (A), (B), (C), or (D) of paragraph (10)--
(i) the Board of Directors may, in its discretion, dissolve a
bridge depository institution in accordance with this paragraph at any
time; and
(ii) the Board of Directors shall promptly commence dissolution
proceedings in accordance with this paragraph upon the expiration of
the 2-year period following the date the bridge depository institution
was chartered, or any extension thereof, as provided in paragraph (9).
(B) PROCEDURES.--The Comptroller of the Currency shall
appoint the Corporation as receiver for a bridge depository institution
upon certification by the Board of Directors to the Comptroller of the
Currency of its determination to dissolve the bridge
depository
institution. The Corporation as such receiver
shall wind up the affairs of the bridge depository institution in
conformity with the provisions of law relating to the liquidation of
closed national banks or Federal savings associations, as appropriate.
With respect to any such bridge depository institution, the Corporation
as such receiver shall have all the rights, powers, and privileges and
shall perform the duties related to the exercise of such rights,
powers, or privileges granted by law to a receiver of any insured
depository institution and notwithstanding any other provision of law
in the exercise of such rights, powers, and privileges the Corporation
shall not be subject to the direction or supervision of any State
agency or other Federal agency.
(13) MULTIPLE BRIDGE DEPOSITORY INSTITUTIONS.--Subject
to paragraph (1)(B)(i), the Corporation may, in the Corporation's
discretion, organize 2 or more bridge depository institutions under
this subsection to assume any deposits of, assume any other liabilities
of, and purchase any assets of a single depository institution in
default.
[Codified to 12 U.S.C. 1821(n)]
[Source: Section 2[11(n)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 214 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 246), effective August 9, 1989; as amended by section 161(a) of title I of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2285), effective December 19, 1991; section 602(a)(30) and (31) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2289), effective September 23, 1994; section 1604(a)(5) and (d) of title VII of the Act of July 30, 2008 (Pub. L. No. 110--289; 122 Stat. 2827, 2828, and 2829 respectively), effective July 30, 2008; section 363(5)(D) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1553), effective July 21, 2010]
(o) Supervisory Records.--In addition to the requirements of section 7(a)(2) to provide to the Corporation copies of reports of examination and reports of condition, whenever the Corporation has been appointed as receiver for an insured depository institution, the appropriate Federal banking agency shall make available all supervisory records to the receiver which may be used by the receiver in any manner the receiver determines to be appropriate.
[Codified to 12 U.S.C. 1821(o)]
[Source: Section 2[11(o)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 909 of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 477), effective August 9, 1989]
(p) Certain Sales of Assets Prohibited.--
(1) PERSONS WHO ENGAGED IN IMPROPER CONDUCT WITH, OR CAUSED
LOSSES TO, DEPOSITORY INSTITUTIONS.--The Corporation shall
prescribe regulations which, at a minimum, shall prohibit the sale of
assets of a failed institution by the Corporation to--
(A) any person who--
(i) has defaulted, or was a member of a partnership or
an officer or director of a corporation that has defaulted, on 1 or
more obligations the aggregate amount of which exceed $1,000,000, to
such failed institution;
(ii) has been found to have engaged in fraudulent
activity in connection with any obligation referred to in clause (i);
and
(iii) proposes to purchase any such asset in whole or
in part through the use of the proceeds of a loan or advance of credit
from the Corporation or from any institution for which the Corporation
has been appointed as conservator or receiver;
(B) any person who participated, as an officer or
director of such failed institution or of any affiliate of such
institution, in a material way in transactions that resulted in a
substantial loss to such failed institution;
(C) any person who has been removed from, or
prohibited from participating in the affairs of, such failed
institution pursuant to any final enforcement action by an appropriate
Federal banking agency; or
(D) any person who has demonstrated a pattern or
practice of defalcation regarding obligations to such failed
institution.
(A) has been convicted of an offense under section
215,
656,
657,
1005,
1006,
1007, 1008,
1014, 1032,
1341,
1343, or
1344 of title 18, United
States Code, or of conspiring to commit such an offense, affecting any
insured depository institution for which any conservator or receiver
has been appointed; and
(B) is in default on any loan or other extension of
credit from such insured depository institution which, if not paid,
will cause substantial loss to the institution, the deposit insurance
fund, or the Corporation may not purchase any asset of such institution
from the conservator or receiver.
(3) SETTLEMENT OF CLAIMS.--Paragraphs (1) and
(2) shall not apply to the sale or transfer by the Corporation of any
asset of any insured depository institution to any person if the sale
or transfer of the asset resolves or settles, or is part of the
resolution or settlement, of--
(A) 1 or more claims that have been, or could have
been, asserted by the Corporation against the person; or
(B) obligations owed by the person to any insured
depository institution, or the Corporation.
(4) "DEFAULT" DEFINED.--For purposes of
this subsection, the term "default" means a failure to comply
with the terms of a loan or other obligation to such an extent that the
property securing the obligation is foreclosed upon.
[Codified to 12 U.S.C. 1821(p)]
[Source: Section 2[11(p)] of the Act of September 1, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 2526(a) of title XXV of the Act of November 29, 1990 (Pub. L. No. 101--647; 104 Stat. 4875), effective November 29, 1990; amended by sections 20(a) and (b) of the Act of December 17, 1993 (Pub. L. No. 103--204; 107 Stat. 2404 and 2405), effective December 17, 1993; section 8(a)(14) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3612 and 3613), effective date shall take effect the day of the merger of the bank Insurance Fund and the Savings Association Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of 2005; section 363(5)(E) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1553), effective July 21, 2010 ]