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1000 - Federal Deposit Insurance Act


SEC. 25.  DISCLOSURES WITH RESPECT TO CERTAIN FEDERALLY RELATED MORTGAGE LOANS.--

(a)  IDENTITY OF BENEFICIARY INTEREST AS CONDITION FOR A LOAN; REPORT TO CORPORATION.--No insured depository institution, insured branch of a foreign bank, or mutual savings or cooperative bank which is not an insured depository institution, shall make any federally related mortgage loan to any agent, trustee, nominee, or other person acting in a fiduciary capacity without the prior condition that the identity of the person receiving the beneficial interest of such loan shall at all times be revealed to the insured depository institution, insured branch, or bank. At the request of the Corporation, the insured depository institution, insured branch, or bank shall report to the Corporation on the identity of such person and the nature and amount of the loan, discount, or other extension of credit.

[Codified to 12 U.S.C. 1831b(a)]

[Source:  Section 2[25(a)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 11(a) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975, and as amended by section 6(c)(30) of the Act of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 620), effective September 17, 1978; section 201(a)(1) of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187), effective August 9, 1989; section 602(a)(55) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2290), effective September 23, 1994]

(b)  ENFORCEMENT; BANK STATUS.--In addition to other available remedies, this section may be enforced with respect to mutual savings and cooperative banks which are not insured depository institutions in accordance with section 8 of this Act, and for such purpose such mutual savings and cooperative banks shall be held and considered to be State nonmember insured banks and the appropriate Federal agency with respect to such mutual savings and cooperative banks shall be the Federal Deposit Insurance Corporation.

[Codified to 12 U.S.C. 1831b(b)]

[Source:  Section 2[25(b)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 11(a) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975, and as amended by section 201(a)(1) of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187), effective August 9, 1989]

NOTES AND DECISIONS

Derivation.  Section 25 derives from section 11(a) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975.

Definition of terms.  The terms used in section 25 of the Federal Deposit Insurance Act are defined in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602), appearing under the "Miscellaneous Statutes and Regulations" tabcard.

Authority of FDIC to exempt classes or types of transactions from the provisions of section 25.   Section 11(c) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975, provides in part as follows:

"(c)  The Federal Deposit Insurance Corporation... may by regulation exempt classes or types of transactions from the provisons [of section 25 of the Federal Deposit Insurance Act] if the Corporation... determines that the purposes of such provisions would not be advanced materially by their application to such transactions."

SEC. 26.  ASSURING CONSISTENT OVERSIGHT OF SUBSIDIARIES OF HOLDING COMPANIES.

(a)  DEFINITIONS.--For purposes of this section:

(1)  BOARD.--The term "Board" means the Board of Governors of the Federal Reserve System.

(2)  FUNCTIONALLY REGULATED SUBSIDIARY.--The term "functionally regulated subsidiary" has the same meaning as in section 5(c)(5) of the Bank Holding Company Act.

(3)  LEAD INSURED DEPOSITORY INSTITUTION.--The term "lead insured depository institution" has the same meaning as in section 2(o)(8) of the Bank Holding Company Act.

(b)  EXAMINATION REQUIREMENTS.--Subject to subtitle B of the Consumer Financial Protection Act of 2010, the Board shall examine the activities of a nondepository institution subsidiary (other than a functionally regulated subsidiary or a subsidiary of a depository institution) of a depository institution holding company that are permissible for the insured depository institution subsidiaries of the depository institution holding company in the same manner, subject to the same standards, and with the same frequency as would be required if such activities were conducted in the lead insured depository institution of the depository institution holding company.

(c)  STATE COORDINATION.--

(1)  CONSULTATION AND COORDINATION.--If a nondepository institution subsidiary is supervised by a State bank supervisor or other State regulatory authority, the Board, in conducting the examinations required in subsection (b), shall consult and coordinate with such State regulator.

(2)  ALTERNATING EXAMINATIONS PERMITTED.--The examinations required under subsection (b) may be conducted in joint or alternating manner with a State regulator, if the Board determines that an examination of a nondepository institution subsidiary conducted by the State carries out the purposes of this section.

(d)  APPROPRIATE FEDERAL BANKING AGENCY BACKUP EXAMINATION AUTHORITY.--

(1)  IN GENERAL.--In the event that the Board does not conduct examinations required under subsection (b) in the same manner, subject to the same standards, and with the same frequency as would be required if such activities were conducted by the lead insured depository institution subsidiary of the depository institution holding company, the appropriate Federal banking agency for the lead insured depository institution may recommend in writing (which shall include a written explanation of the concerns giving rise to the recommendation) that the Board perform the examination required under subsection (b).

(2)  EXAMINATION BY AN APPROPRIATE BANKING AGENCY.--If the Board does not, before the end of the 60-day period beginning on the date on which the Board receives a recommendation under paragraph (1), begin an examination as required under subsection (b) or provide a written explanation or plan to the appropriate Federal banking agency making such recommendation responding to the concerns raised by the appropriate Federal banking agency for the lead insured depository institution, the appropriate Federal banking agency for the lead insured depository institution may, subject to the Consumer Financial Protection Act of 2010, examine the activities that are permissible for a depository institution subsidiary conducted by such nondepository institution subsidiary (other than a functionally regulated subsidiary or a subsidiary of a depository institution) of the depository institution holding company as if the nondepository institution subsidiary were an insured depository institution for which the appropriate Federal banking agency of the lead insured depository institution was the appropriate Federal banking agency, to determine whether the activities-

(A)  pose a material threat to the safety and soundness of any insured depository institution subsidiary of the depository institution holding company;

(B)  are conducted in accordance with applicable Federal law; and

(C)  are subject to appropriate systems for monitoring and controlling the financial, operating, and other material risks of the activities that may pose a material threat to the safety and soundness of the insured depository institution subsidiaries of the holding company.

(3)  AGENCY COORDINATION WITH THE BOARD.--An appropriate Federal banking agency that conducts an examination pursuant to paragraph (2) shall coordinate examination of the activities of nondepository institution subsidiaries described in subsection (b) with the Board in a manner that--

(A)  avoids duplication;

(B)  shares information relevant to the supervision of the depository institution holding company;

(C)  achieves the objectives of subsection (b); and

(D)  ensures that the depository institution holding company and the subsidiaries of the depository institution holding company are not subject to conflicting supervisory demands by such agency and the Board.

(4)  FEE PERMITTED FOR EXAMINATION COSTS.--An appropriate Federal banking agency that conducts an examination or enforcement action pursuant to this section may collect an assessment, fee, or such other charge from the subsidiary as the appropriate Federal banking agency determines necessary or appropriate to carry out the responsibilities of the appropriate Federal banking agency in connection with such examination.

(e)  REFERRALS FOR ENFORCEMENT BY APPROPRIATE FEDERAL BANKING AGENCY.--

(1)  RECOMMENDATION OF ENFORCEMENT ACTION.--The appropriate Federal banking agency for the lead insured depository institution, based upon its examination of a nondepository institution subsidiary conducted pursuant to subsection (d), or other relevant information, may submit to the Board, in writing, a recommendation that the Board take enforcement action against such nondepository institution subsidiary, together with an explanation of the concerns giving rise to the recommendation, if the appropriate Federal banking agency determines (by a vote of its members, if applicable) that the activities of the nondepository institution subsidiary pose a material threat to the safety and soundness of any insured depository institution subsidiary of the depository institution holding company.

(2)  BACK-UP AUTHORITY OF THE APPROPRIATE FEDERAL BANKING AGENCY.--If, within the 60-day period beginning on the date on which the Board receives a recommendation under paragraph (1), the Board does not take enforcement action against the nondepository institution subsidiary or provide a plan for supervisory or enforcement action that is acceptable to the appropriate Federal banking agency that made the recommendation pursuant to paragraph (1), such agency may take the recommended enforcement action against the nondepository institution subsidiary, in the same manner as if the nondepository institution subsidiary were an insured depository institution for which the agency was the appropriate Federal banking agency.

(f)  COORDINATION AMONG APPROPRIATE FEDERAL BANKING AGENCIES.--Each Federal banking agency, prior to or when exercising authority under subsection (d) or (e) shall--

(1)  provide reasonable notice to, and consult with, the appropriate Federal banking agency or State bank supervisor (or other State regulatory agency) of the nondepository institution subsidiary of a depository institution holding company that is described in subsection (d) before commencing any examination of the subsidiary;

(2)  to the fullest extent possible--

(A)  rely on the examinations, inspections, and reports of the appropriate Federal banking agency or the State bank supervisor (or other State regulatory agency) of the subsidiary;

(B)  avoid duplication of examination activities, reporting requirements, and requests for information; and

(C)  ensure that the depository institution holding company and the subsidiaries of the depository institution holding company are not subject to conflicting supervisory demands by the appropriate Federal banking agencies.

(g)  RULE OF CONSTRUCTION.--No provision of this section shall be construed as limiting any authority of the Board, the Corporation, or the Comptroller of the Currency under any other provision of law.

[Codified to 12 U.S.C. 1831(c)]


[Source:  Section 2[26] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 1205 of title XII of the Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3711), effective March 10, 1979; as amended by section 113(p) of title I of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1474), effective October 15, 1982; section 3 of the Act of January 12, 1983 (Pub. L. No. 97--457; 96 Stat. 2507), effective January 12, 1983; repealed by section 602(f)(1) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2292), effective September 23, 1994; section 26 added by section 605(a) of title VI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1604), effective July 21, 2010]


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Last updated September 16, 2013 regs@fdic.gov