FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
(j) Criminal penalty.--Whoever, being subject to an order in effect under subsection (e) or (g), without the prior written approval of the appropriate Federal financial institutions regulatory agency, knowingly participates, directly or indirectly, in any manner (including by engaging in an activity specifically prohibited in such an order or in subsection (e)(6)) in the conduct of the affairs of--
shall be fined not more than $1,000,000, imprisoned for not more than 5 years, or both.
[Codified to 12 U.S.C. 1818(j)]
[Source: Section 2[8(j)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1052), effective October 16, 1966; as amended by section 111(a)(3) of title I of the Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3667), effective March 10, 1979; section 427(d)(4) of title IV of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1526), effective October 15, 1982; section 201(a)(1) of title II and sections 901(d) and 908(a) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187, 450, and 477, respectively), effective August 9, 1989; section 363(3)(E) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1552), effective July 21, 2010 ]
(k) [Repealed]
[Codified to 12 U.S.C. 1818(k)]
[Source: Section 2[8(k)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1052), effective October 16, 1966; and as amended by section 111(a)(4) of title I of the Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3667), effective March 10, 1979; as removed by section 920(c) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 488), effective August 9, 1989]
(l) Notice of Service.--Any service required or authorized to be made by the appropriate Federal banking agency under this section may be made by registered mail, or in such other manner reasonably calculated to give actual notice as the agency may by regulation or otherwise provide. Copies of any notice or order served by the agency upon any State depository institution or any institution-affiliated party, pursuant to the provisions of this section, shall also be sent to the appropriate State supervisory authority.
[Codified to 12 U.S.C. 1818(l)]
[Source: Section 2[8(l)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1052), effective October 16, 1966, and as amended by section 901(b)(1)(I) and (d) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 448 and 450), effective August 9, 1989]
(m) Notice to State Authorities.--In connection with any proceeding under subsection (b), (c)(1), or (e) of this section involving an insured State bank or any institution-affiliated party, the appropriate Federal banking agency shall provide the appropriate State supervisory authority with notice of the agency's intent to institute such a proceeding and the grounds therefor. Unless within such time as the Federal banking agency deems appropriate in the light of the circumstances of the case (which time must be specified in the notice prescribed in the preceding sentence) satisfactory corrective action is effectuated by action of the State supervisory authority, the agency may proceed as provided in this section. No bank or other party who is the subject of any notice or order issued by the agency under this section shall have standing to raise the requirements of this subsection as ground for attacking the validity of any such notice or order.
[Codified to 12 U.S.C. 1818(m)]
[Source: Section 2[8(m)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1052), effective October 16, 1966, and as amended by section 901(b)(1)(J) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 448), effective August 9, 1989]
(n) Ancillary Provisions; Subpoena Power, etc.--In the course of or in connection with any proceeding under this section, or in connection with any claim for insured deposits or any examination or investigation under section 10(c), the agency conducting the proceeding, examination, or investigation or considering the claim for insured deposits, or any member or designated representative thereof, including any person designated to conduct any hearing under this section, shall have the power to administer oaths and affirmations, to take or cause to be taken depositions, and to issue, revoke, quash, or modify subpoenas and subpoenas duces tecum; and such agency is empowered to make rules and regulations with respect to any such proceedings, claims, examinations, or investigations. The attendance of witnesses and the production of documents provided for in this subsection may be required from any place in any State or in any territory or other place subject to the jurisdiction of the United States at any designated place where such proceeding is being conducted. Any such agency or any party to proceedings under this section may apply to the United States District Court for the District of Columbia, or the United States district court for the judicial district or the United States court in any territory in which such proceeding is being conducted, or where the witness resides or carries on business, for enforcement of any subpoena or subpoena duces tecum issued pursuant to this subsection, and such courts shall have jurisdiction and power to order and require compliance therewith. Witnesses subpoenaed under this subsection shall be paid the same fees and mileage that are paid witnesses in the district courts of the United States. Any court having jurisdiction of any proceeding instituted under this section by an insured depository institution or a director or officer thereof, may allow to any such party such reasonable expenses and attorneys' fees as it deems just and proper; and such expenses and fees shall be paid by the depository institution or from its assets. Any person who willfully shall fail or refuse to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, memoranda, contracts, agreements, or other records, if in such person's power so to do, in obedience to the subpoena of the appropriate Federal banking agency, shall be guilty of a misdemeanor and, upon conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for a term of not more than one year or both.
[Codified to 12 U.S.C. 1818(n)]
[Source: Section 2[8(n)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1052), effective October 16, 1966; and as amended by section 111(a)(5) of title I and section 303 of title III of the Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3667 and 3676), effective March 10, 1979; and section 901(d) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 450), effective August 9, 1989]
(o) Termination of Membership of State Bank in Federal Reserve System.--Whenever the insured status of a State member bank shall be terminated by action of the Board of Directors, the Board of Governors of the Federal Reserve System shall terminate its membership in the Federal Reserve System in accordance with the provisions of section 9 of the Federal Reserve Act, and whenever the insured status of a national member bank shall be so terminated the Comptroller of the Currency shall appoint a receiver for the bank, which shall be the Corporation. Except as provided in subsection (c) or (d) of section 4, whenever a member bank shall cease to be a member of the Federal Reserve System, its status as an insured depository institution shall, without notice or other action by the Board of Directors, terminate on the date the bank shall cease to be a member of the Federal Reserve System, with like effect as if its insured status had been terminated on said date by the Board of Directors after proceedings under subsection (a) of this section. Whenever the insured status of an insured Federal savings bank shall be terminated by action of the Board of Directors, the Comptroller of the Currency shall appoint a receiver for the bank, which shall be the Corporation.
[Codified to 12 U.S.C. 1818(o)]
[Source: Section 2[8(o), formerly 8(b)] of the Act of September 21, 1950 (Pub. L. No. 797; 64 Stat. 880), effective September 21, 1950; as redesignated by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1046), effective October 16, 1966; and as amended by section 113(h) of title I of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1474), effective October 15, 1982; section 201(a)(1) and (b) of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and 188), effective August 9, 1989; section 602(a)(16) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2289), effective September 23, 1994; section 1232 of title XII of the Act of December 27, 2000 (Pub. L. No. 106--569; 114 Stat. 3037, effective December 27, 2000; section 363(3)(F) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1552), effective July 21, 2010]
(p) Banks Not Receiving Deposits.--Notwithstanding any other provision of law, whenever the Board of Directors shall determine that an insured depository institution is not engaged in the business of receiving deposits, other than trust funds as herein defined, the Corporation shall notify the depository institution that its insured status will terminate at the expiration of the first full assessment period following such notice. A finding by the Board of Directors that a depository institution is not engaged in the business of receiving deposits, other than such trust funds, shall be conclusive. The Board of Directors shall prescribe the notice to be given by the depository institution of such termination and the Corporation may publish notice thereof. Upon the termination of the insured status of any such depository institution, its deposits shall thereupon cease to be insured and the depository institution shall thereafter be relieved of all future obligations to the Corporation, including the obligation to pay future assessments.
[Codified to 12 U.S.C. 1818(p)]
[Source: Section 2[8(p), formerly 8(c)] of the Act of September 21, 1950 (Pub. L. No. 797; 64 Stat. 880), effective September 21, 1950; as redesignated by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1046), effective October 16, 1966; section 602(a)(17) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2289), effective September 23, 1994; section 3(a)(6) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3605), effective date shall take effect on the date that the final regulations required under section 2109(a)(5) of the Federal Deposit Insurance Reform Act of 2005 take effect]
(q) Assumption of Liabilities.--Whenever the liabilities of an insured depository institution for deposits shall have been assumed by another insured depository institution or depository institutions, whether by way of merger, consolidation, or other statutory assumption, or pursuant to contract (1) the insured status of the depository institution whose liabilities are so assumed shall terminate on the date of receipt by the Corporation of satisfactory evidence of such assumption; (2) the separate insurance of all deposits so assumed shall terminate at the end of six months from the date such assumption takes effect or, in the case of any time deposit, the earliest maturity date after the six-month period. Where the deposits of an insured depository institution are assumed by a newly insured depository institution, the depository institution whose deposits are assumed shall not be required to pay any assessment with respect to the deposits which have been so assumed after the assessment period in which the assumption takes effect.
[Codified to 12 U.S.C. 1818(q)]
[Source: Section 2[8(q), formerly 8(d)] of the Act of September 21, 1950 (Pub. L. No. 797; 64 Stat. 881), effective September 21, 1950; as redesignated by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1046), effective October 16, 1966, and as amended by section 304 of title III of the Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3676), effective March 10, 1979; section 433(a) of title IV of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1527), effective October 15, 1982; section 201(a)(1) of title II and section 901(d) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and 450), effective August 9, 1989; section 302(e)(4) of title III of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2349), effective December 19, 1991; section 3(a)(7) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3605), effective date shall take effect on the date that the final regulations required under section 2109(a)(5) of the Federal Deposit Insurance Reform Act of 2005 take effect]
(r) Action or Proceeding Against Foreign Bank; Basis; Removal of Officer or Other Person; Venue; Service of Process.--
[Codified to 12 U.S.C. 1818(r)]
[Source: Section 2[8(r)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 6(c)(15) of the Act of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 618--619), effective September 17, 1978; section 602(a)(18) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2289), effective September 23, 1994]
(s) Compliance With Monetary Transaction Recordkeeping and Report Requirements.--
the agency shall issue an order in the manner prescribed in subsection (b) or (c) requiring such depository institution to cease and desist from its violation of this subsection or regulations prescribed under this subsection.
[Codified to 12 U.S.C. 1818(s)]
[Source: Section 2[8(s)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 1359(a)(1) of subtitle H of title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--27), effective (January 27, 1987), and as amended by section 201(a)(1) of title II and section 901(d) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and 450), effective August 9, 1989]
(t) Authority of FDIC To Take Enforcement Action Against Insured Depository Institutions and Institution-Affiliated Parties.--
[Codified to 12 U.S.C. 1818(t)]
[Source: Section 2[18(t)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 912 of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 482), effective August 9, 1989; as amended by section 307 of title III of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2360), effective December 19, 1991; section 1605(a)(11) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4086), effective October 28, 1992; section 8(a)(10) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3611), effective date shall take effect on the day of the merger of the Bank Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of 2005; section 172(b) of title I of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1439), and section 1090(1) of title X of the Act of July 21, 2010 (Pub.L. No. 111--203; 124 Stat. 2094), effective July 21, 2010]
(u) Public Disclosures of Final Orders and Agreements.--
[Codified to 12 U.S.C. 1818(u)]
[Source: Section 2[18(u)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 913 of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 483), effective August 9, 1989; amended by section 2547(a)(1) of title XXV of the Act of November 29, 1990 (Pub. L. No. 101--647; 104 Stat. 4886), effective November 29, 1990; section 1001(d) of title X of the Act of November 10, 1998 (Pub. L. No. 105--362; 112 Stat. 3291), effective November 10, 1998]
(v) Foreign Investigations.--
[Codified to 12 U.S.C. 1818(v)]
[Source: Section 2[18(v)] of the Act of September 1, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 2532(a) of title XXV of the Act of November 29, 1990 (Pub. L. No. 101--647; 104 Stat. 4880), effective November 29, 1990]
(w) Termination of Insurance for Money Laundering or Cash Transaction Reporting Offenses.--
[Codified to 12 U.S.C. 1818(w)]
[Source: Section 2[18(w)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 1503(a)(1) of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4048), effective October 28, 1992; section 411(c)(2)(A) of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2253), effective September 23, 1994; section 363(3)(G) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1552), effective July 21, 2010]
NOTES
Derivation. Sections 8(a), 8(o) [formerly 8(b)], and 8(q) [formerly 8(d)] derive from sections 12B(i)(1), 12B(i)(2), and 12B(i)(4), respectively, of the Federal Reserve Act, as added by section 101[12B(i)(1), 12B(i)(2), and 12B(i)(4)] of title I of the Act of August 23, 1935 (Pub. L. No. 305; 49 Stat. 690), effective August 23, 1935. Section 12B(i)(2) of the Federal Reserve Act was amended by section 7 of the Act of August 17, 1950 (Pub. L. No. 706; 64 Stat. 458), effective August 17, 1950. 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."
Section 8(p) [formerly 8(c)] was enacted by section 2[8(p), formerly 8(c)] of the Act of September 21, 1950 (Pub. L. No. 797; 64 Stat. 880), effective September 21, 1950.
Sections 8(b)--(n) were added by section 202 of title II of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1046), effective October 16, 1966. They were originally effective only during the period ending at the close of June 30, 1972. They were made "permanent" law by section 908 of title IX of the Act of December 31, 1970 (Pub. L. No. 91--609; 84 Stat. 1811), effective December 31, 1970.
Section 8(r) was added by section 6(c)(15) of the Act of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 618), effective September 17, 1978.
Section 8(s) derives from section 1359(a)(10 of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207), effective January 27, 1987.
Sections 8(t) and 8(u) were enacted by sections 912 and 913 of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 482 and 483, respectively), effective August 9, 1989.
Implementing regulations. FDIC regulations regarding notification of changes of insured status are entitled "Part 307--Notification of Changes of Insured Status." Regulations regarding involuntary termination of insured status, cease-and-desist, and suspension or removal proceedings are entitled "Part 308--Rules of Practice and Procedures." Both parts appear under the "FDIC Rules and Regulations" tabcard.