FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
(i) Insurance of Trust Funds.--
(1) IN GENERAL.--Trust funds held on deposit by an
insured depository institution in a fiduciary capacity as trustee
pursuant to any irrevocable trust established pursuant to any statute
or written trust agreement shall be insured in an amount not to exceed
the standard maximum deposit insurance amount (as determined under
section 11(a)(1)) for each trust estate.
(2) INTERBANK DEPOSITS.--Trust funds described in
paragraph (1) which are deposited by the fiduciary depository
institution in another insured depository institution shall be
similarly insured to the fiduciary depository institution according to
the trust estates represented.
(3) BANK DEPOSIT FINANCIAL ASSISTANCE
PROGRAM.--Notwithstanding paragraph (1), funds deposited by an
insured depository institution pursuant to the Bank Deposit Financial
Assistance Program of the Department of Energy shall be separately
insured in an amount not to exceed the standard maximum deposit
insurance amount (as determined under section 11(a)(1)) for each
insured depository institution depositing such funds.
(4) REGULATIONS.--The Board of Directors may prescribe
such regulations as may be necessary to clarify the insurance coverage
under this subsection and to prescribe the manner of reporting and
depositing such trust funds.
[Codified to 12 U.S.C. 1817(i)]
[Source: Section 2[7(i)] of the Act of September 21,
1950 (Pub. L. No. 797; 64 Stat. 879), effective September 21, 1950, as
amended by section 3 of the Act of July 14, 1960 (Pub. L. No. 86--671;
74 Stat. 551), effective January 1, 1961; section 301(b) of title III
of the Act of October 16, 1966 (Pub. L. No. 89--695; 80 Stat. 1055),
effective October 16, 1966; section 7(a)(2) of title I of the Act of
December 23, 1969 (Pub. L. No. 91--51; 83 Stat. 376), effective
December 23, 1969; sections 101(a)(2) and 102(a)(2) of title I of the
Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1500 and 1502),
effective November 27, 1974; section 308 of title III of the Act of
March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 147), effective March 31,
1980; sections 201(a)(1) and 208(7) of title II of the Act of August 9,
1989 (Pub. L. No. 101--73; 103 Stat. 187 and 213, respectively),
effective August 9, 1989; section 311(b)(3) of title III of the Act of
December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2365), effective
December 19, 1993; section 38(a) of the Act of December 17, 1993 (Pub.
L. No. 103--204; 107 Stat. 2416), effective December 19, 1993; section
2(b) 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]
(j) Change in Control of Insured Depository
Institutions.--(1) No person, acting directly or indirectly or
through or in concert with one or more other persons, shall acquire
control of any insured depository institution through a purchase,
assignment, transfer, pledge, or other disposition of voting stock of
such insured depository institution unless the appropriate Federal
banking agency has been given sixty days' prior written notice of such
proposed acquisition and within that time period the agency has not
issued a notice disapproving the proposed acquisition or, in the
discretion of the agency, extending for an additional 30 days the
period during which such a disapproval may issue. The period for
disapproval under the preceding sentence may be extended not to exceed
2 additional times for not more than 45 days each time if--
(A) the agency determines that any acquiring party has not
furnished all the information required under paragraph (6);
(B) in the agency's judgment, any material information submitted
is substantially inaccurate;
(C) the agency has been unable to complete the investigation of
an acquiring party under paragraph (2)(B) because of any delay caused
by, or the inadequate cooperation of, such acquiring party; or
(D) the agency determines that additional time is needed--
(i) to investigate and determine that no acquiring party has a
record of failing to comply with the requirements of subchapter II of
chapter 53 of title 31, United States Code.
(ii) to analyze the safety and soundness of any plans or
proposals described in paragraph (6)(E) or the future prospects of the
institution.
An acquisition may be made prior to expiration of the
disapproval period if the agency issues written notice of its intent
not to disapprove the action.
(2)(A) NOTICE TO STATE AGENCY.--Upon receiving
any notice under this subsection, the appropriate Federal banking
agency shall forward a copy thereof to the appropriate State
depository institution supervisory agency if the depository institution
the voting shares of which are sought to be acquired is a State
depository institution, and shall allow thirty days within which the
views and recommendations of such State depository institution
supervisory agency may be submitted. The appropriate Federal banking
agency shall give due consideration to the views and recommendations of
such State agency in determining whether to disapprove any proposed
acquisition. Notwithstanding the provisions of this paragraph, if the
appropriate Federal banking agency determines that it must
act immediately upon any notice of a proposed acquisition in order
to prevent the probable default of the depository institution involved
in the proposed acquisition, such Federal banking agency may dispense
with the requirements of this paragraph or, if a copy of the notice is
forwarded to the State depository institution supervisory agency, such
Federal banking agency may request that the views and recommendations
of such State depository institution supervisory agency be submitted
immediately in any form or by any means acceptable to such Federal
banking agency.
(B) INVESTIGATION OF PRINCIPALS REQUIRED.--Upon
receiving any notice under this subsection, the appropriate Federal
banking agency shall--
(i) conduct an investigation of the competence, experience,
integrity, and financial ability of each person named in a notice of a
proposed acquisition as a person by whom or for whom such acquisition
is to be made; and
(ii) make an independent determination of the accuracy and
completeness of any information described in paragraph (6) with respect
to such person.
(C) REPORT.--The appropriate Federal banking agency
shall prepare a written report of any investigation under subparagraph
(B) which shall contain, at a minimum, a summary of the results of such
investigation. The agency shall retain such written report as a record
of the agency.
(D) PUBLIC COMMENT.--Upon receiving notice of a
proposed acquisition, the appropriate Federal banking agency shall,
unless such agency determines that an emergency exists, within a
reasonable period of time--
(i) publish the name of the insured depository institution
proposed to be acquired and the name of each person identified in such
notice as a person by whom or for whom such acquisition is to be made;
and
(ii) solicit public comment on such proposed acquisition,
particularly from persons in the geographic area where the bank
proposed to be acquired is located, before final consideration of such
notice by the agency,
unless the agency determines in writing that such disclosure or
solicitation would seriously threaten the safety or soundness of such
bank.
(3) Within three days after its decision to disapprove any
proposed acquisition, the appropriate Federal banking agency shall
notify the acquiring party in writing of the disapproval. Such notice
shall provide a statement of the basis for the disapproval.
(4) Within ten days of receipt of such notice of disapproval, the
acquiring party may request an agency hearing on the proposed
acquisition. In such hearing all issues shall be determined on the
record pursuant to
section 554 of title
5, United States Code. The length of the hearing shall be
determined by the appropriate Federal banking agency. At the conclusion
thereof, the appropriate Federal banking agency shall by order approve
or disapprove the proposed acquisition on the basis of the record made
at such hearing.
(5) Any person whose proposed acquisition is disapproved after
agency hearings under this subsection may obtain review by the United
States court of appeals for the circuit in which the home office of the
bank to be acquired is located, or the United States Court of Appeals
for the District of Columbia Circuit, by filing a notice of appeal in
such court within ten days from the date of such order, and
simultaneously sending a copy of such notice by registered or certified
mail to the appropriate Federal banking agency. The appropriate Federal
banking agency shall promptly certify and file in such court the record
upon which the disapproval was based. The findings of the appropriate
Federal banking agency shall be set aside if found to be arbitrary or
capricious or if found to violate procedures established by this
subsection.
(6) Except as otherwise provided by regulation of the appropriate
Federal banking agency, a notice filed pursuant to this subsection
shall contain the following information:
(A) The identity, personal history, business background and
experience of each person by whom or on whose behalf the acquisition is
to be made, including his material business activities and affiliations
during the past five years, and a description of any material pending
legal or administrative proceedings in which he is a party and any
criminal indictment or conviction of such person by a State or Federal
court.
(B) A statement of the assets and liabilities of each
person by whom or on whose behalf the acquisition is to be made, as of
the end of the fiscal year for each of the five fiscal years
immediately preceding the date of the notice, together with related
statements of income and source and application of funds for each of
the fiscal years then concluded, all prepared in accordance with
generally accepted accounting principles consistently applied, and an
interim statement of the assets and liabilities for each such person,
together with related statements of income and source and application
of funds, as of a date not more than ninety days prior to the date of
the filing of the notice.
(C) The terms and conditions of the proposed acquisition and the
manner in which the acquisition is to be made.
(D) The identity, source and amount of the funds or other
consideration used or to be used in making the acquisition, and if any
part of these funds or other consideration has been or is to be
borrowed or otherwise obtained for the purpose of making the
acquisition, a description of the transaction, the names of the
parties, and any arrangements, agreements, or understandings with such
persons.
(E) Any plans or proposals which any acquiring party making the
acquisition may have to liquidate the bank, to sell its assets or merge
it with any company or to make any other major change in its business
or corporate structure or management.
(F) The identification of any person employed, retained, or to be
compensated by the acquiring party, or by any person on his behalf, to
make solicitations or recommendations to stockholders for the purpose
of assisting in the acquisition, and a brief description of the terms
of such employment, retainer, or arrangement for compensation.
(G) Copies of all invitations or tenders or advertisements making
a tender offer to stockholders for purchase of their stock to be used
in connection with the proposed acquisition.
(H) Any additional relevant information in such form as the
appropriate Federal banking agency may require by regulation or by
specific request in connection with any particular notice.
(7) The appropriate Federal banking agency may disapprove any
proposed acquisition if--
(A) the proposed acquisition of control would result in a
monopoly or would be in furtherance of any combination or conspiracy to
monopolize or to attempt to monopolize the business of banking in any
part of the United States;
(B) the effect of the proposed acquisition of control in any
section of the country may be substantially to lessen competition or to
tend to create a monopoly or the proposed acquisition of control would
in any other manner be in restraint of trade, and the anticompetitive
effects of the proposed acquisition of control are not clearly
outweighed in the public interest by the probable effect of the
transaction in meeting the convenience and needs of the community to be
served;
(C) either the financial condition of any acquiring person or the
future prospects of the institution is such as might jeopardize the
financial stability of the bank or prejudice the interests of the
depositors of the bank;
(D) the competence, experience, or integrity of any acquiring
person or of any of the proposed management personnel indicates that it
would not be in the interest of the depositors of the bank, or in the
interest of the public to permit such person to control the bank;
(E) any acquiring person neglects, fails, or refuses to furnish
the appropriate Federal banking agency all the information required by
the appropriate Federal banking agency; or
(F) the appropriate Federal banking agency determines that the
proposed transaction would result in an adverse effect on the Deposit
Insurance Fund.
(8) For the purposes of this subsection, the term--
(A) "person" means an individual or a corporation,
partnership, trust, association, joint venture, pool, syndicate, sole
proprietorship, unincorporated organization, or any other form of
entity not specifically listed herein; and
(B) "control" means the power, directly or indirectly, to
direct the management or policies of an insured depository institution
or to vote 25 per centum or more of any class of voting securities of
an insured depository institution.
(9) REPORTING OF STOCK LOANS.--
(A) REPORT REQUIRED.--Any foreign bank, or any affiliate
thereof, that has credit outstanding to any person or group of persons
which is secured, directly or indirectly, by shares of an insured
depository institution shall file a consolidated report with the
appropriate Federal banking agency for such insured depository
institution if the extensions of credit by the foreign bank or any
affiliate thereof, in the aggregate, are secured, directly or
indirectly, by 25 percent or more of any class of shares of the same
insured depository institution.
(B) DEFINITIONS.--For purposes of this paragraph, the
following definitions shall apply:
(i) FOREIGN BANK.--The term "foreign bank" and
"affiliate" have the same meanings as in section 1 of the
International Banking Act of 1978.
(ii) CREDIT OUTSTANDING.--The term "credit
outstanding" includes--
(I) any loan or extension of credit,
(II) the issuance of a guarantee, acceptance, or letter of
credit, including an endorsement or standby letter of credit, and
(III) any other type of transaction that extends credit or
financing to the person or group of persons.
(iii) GROUP OF PERSONS.--The term "group of
persons" includes any number of persons that the foreign bank or any
affiliate thereof reasonably believes--
(I) are acting together, in concert, or with one another to
acquire or control shares of the same insured depository institution,
including an acquisition of shares of the same insured depository
institution at approximately the same time under substantially the same
terms; or
(C) INCLUSION OF SHARES HELD BY THE FINANCIAL
INSTITUTION.--Any shares of the insured depository institution
held by the foreign bank or any affiliate thereof as principal shall be
included in the calculation of the number of shares in which the
foreign bank or any affiliate thereof has a security interest for
purposes of subparagraph (A).
(D) REPORT REQUIREMENTS.--
(i) TIMING OF REPORT.--The report required under this
paragraph shall be a consolidated report on behalf of the foreign bank
and all affiliates thereof and shall be filed in writing within 30 days
of the date on which the foreign bank or affiliate thereof first
believes that the security for any outstanding credit consists of 25
percent or more of any class of shares of an insured depository
institution.
(ii) CONTENT OF REPORT.--The report under this paragraph
shall indicate the number and percentage of shares securing each
applicable extension of credit, the identity of the borrower, and the
number of shares held as principal by the foreign bank and any
affiliate thereof.
(iii) COPY TO OTHER AGENCIES.--A copy of any report
under this paragraph shall be filed with the appropriate Federal
banking agency for the foreign bank or any affiliate thereof (if other
than the agency receiving the report under this paragraph).
(iv) OTHER INFORMATION.--Each appropriate Federal
banking agency may require any additional information necessary to
carry out the agency's supervisory responsibilities.
(E) EXCEPTIONS.--
(i) EXCEPTION WHERE INFORMATION PROVIDED BY
BORROWER.--Notwithstanding subparagraph (A), a foreign bank or
any affiliate thereof shall not be required to report a transaction
under this paragraph if the person or group of persons referred to in
such subparagraph has disclosed the amount borrowed from such foreign
bank or any affiliate thereof and the security interest of the foreign
bank or any affiliate thereof to the appropriate Federal banking agency
for the insured depository institution in connection with a notice
filed under this subsection, an application filed under the Bank
Holding Company Act of 1956,
section 10
of the Home Owners' Loan Act, or any other application filed
with the appropriate Federal banking agency for the insured depository
institution as a substitute for a notice under this subsection, such as
an application for deposit insurance, membership in the Federal Reserve
System, or a national bank charter.
(ii) EXCEPTION FOR SHARES OWNED FOR MORE THAN 1
YEAR.--Notwithstanding subparagraph (A), a foreign bank and any
affiliate thereof shall not be required to report a transaction
involving--
(I) a person or group of persons that has been the owner or
owners of record of the stock for a period of 1 year or more; or
(II) stock issued by a newly chartered bank before the bank's
opening.
(10) The reports required by paragraph (9) of this subsection
shall contain such of the information referred to in paragraph (6) of
this subsection, and such other relevant information, as the
appropriate Federal banking agency may require by regulation or by
specific request in connection with any particular report.
(11) The Federal banking agency receiving a notice or report
filed pursuant to paragraph (1) or (9) shall immediately furnish to the
other Federal banking agencies a copy of such notice or report.
(12) Whenever such a change in control occurs, each insured
depository institution shall report promptly to the appropriate Federal
banking agency any changes or replacement of its chief executive
officer or of any director occurring in the next twelve-month period,
including in its report a statement of the past and current business
and professional affiliations of the new chief executive officer or
directors.
(13) The appropriate Federal banking agencies are authorized to
issue rules and regulations to carry out this subsection.
(14) Within two years after the effective date of the Change in
Bank Control Act of 1978, and each year thereafter in each appropriate
Federal banking agency's annual report to the Congress, the appropriate
Federal banking agency shall report to the Congress the results of the
administration of this subsection, and make any recommendations as
to
changes in the law which in the opinion of the
appropriate Federal banking agency would be desirable.
(15) INVESTIGATIVE AND ENFORCEMENT AUTHORITY.--
(A) INVESTIGATIONS.--The appropriate Federal banking
agency may exercise any authority vested in such agency under section
8(n) in the course of conducting any investigation under paragraph
(2)(B) or any other investigation which the agency, in its discretion,
determines is necessary to determine whether any person has filed
inaccurate, incomplete, or misleading information under this subsection
or otherwise is violating, has violated, or is about to violate any
provision of this subsection or any regulation prescribed under this
subsection.
(B) ENFORCEMENT.--Whenever it appears to the
appropriate Federal banking agency that any person is violating, has
violated, or is about to violate any provision of this subsection or
any regulation prescribed under this subsection, the agency may, in its
discretion, apply to the appropriate district court of the United
States or the United States court of any territory for--
(i) a temporary or permanent injunction or restraining order
enjoining such person from violating this subsection or any regulation
prescribed under this subsection; or
(ii) such other equitable relief as may be necessary to prevent
any such violation (including divestiture).
(C) JURISDICTION.--
(i) The district courts of the United States and the United
States courts in any territory shall have the same jurisdiction and
power in connection with any exercise of any authority by the
appropriate Federal banking agency under subparagraph (A) as such
courts have under
section 8(n).
(ii) The district courts of the United States and the United
States courts of any territory shall have jurisdiction and power to
issue any injunction or restraining order or grant any equitable relief
described in subparagraph (B). When appropriate, any injunction, order,
or other equitable relief granted under this paragraph shall be granted
without requiring the posting of any bond.
The resignation, termination of employment or participation,
divestiture of control, or separation of or by an
institution-affiliated party (including a separation caused by the
closing of a depository institution) shall not affect the jurisdiction
and authority of the appropriate Federal banking agency to issue any
notice and proceed under this subsection against any such party, if
such notice is served before the end of the 6-year period beginning on
the date such party ceased to be such a party with respect to such
depository institution (whether such date occurs before, on, or after
[August 9, 1989], the date of the enactment of this sentence).
(16) CIVIL MONEY PENALTY.--
(A) FIRST TIER.--Any person who violates any provision
of this subsection, or any regulation or order issued by the
appropriate Federal banking agency under this subsection, shall forfeit
and pay a civil penalty of not more than $5,000 for each day during
which such violation continues.
(B) SECOND TIER.--Notwithstanding subparagraph (A), any
person who--
(i)(I) commits any violation described in any clause of
subparagraph (A);
(II) recklessly engages in an unsafe or unsound practice in
conducting the affairs of a depository institution; or
(III) breaches any fiduciary duty;
(ii) which violation, practice, or breach--
(I) is part of a pattern of misconduct;
(II) causes or is likely to cause more than a minimal loss
to such institution; or
(III) results in pecuniary gain or other benefit to such person,
shall forfeit and pay a civil penalty of not more than $25,000 for
each day during which such violation, practice, or breach continues.
(C) THIRD TIER.--Notwithstanding subparagraphs (A) and
(B), any person who--
(i) knowingly--
(I) commits any violation described in any clause of subparagraph
(A);
(II) engages in any unsafe or unsound practice in conducting the
affairs of a depository institution; or
(III) breaches any fiduciary duty; and
(ii) knowingly or recklessly causes a substantial loss to such
institution or a substantial pecuniary gain or other benefit to such
person by reason of such violation, practice, or breach,
shall forfeit and pay a civil penalty in an amount not to exceed the
applicable maximum amount determined under subparagraph (D) for each
day during which such violation, practice, or breach continues.
(D) MAXIMUM AMOUNTS OF PENALTIES FOR ANY VIOLATION DESCRIBED
IN SUBPARAGRAPH (c).--The maximum daily amount of any civil penalty
which may be assessed pursuant to subparagraph (C) for any violation,
practice, or breach described in such subparagraph is--
(i) in the case of any person other than a depository
institution, an amount to not exceed $1,000,000; and
(ii) in the case of a depository institution, an amount not to
exceed the lesser of--
(I) $1,000,000; or
(II) 1 percent of the total assets of such institution.
(E) ASSESSMENT; ETC.--Any penalty imposed under
subparagraph (A), (B), or (C) shall be assessed and collected by the
appropriate Federal banking agency in the manner provided in
subparagraphs (E), (F), (G), and (I) of
section 8(i)(2) for penalties
imposed (under such section) and any such assessment shall be subject
to the provisions of such section.
(F) HEARING.--The depository institution or other person
against whom any penalty is assessed under this paragraph shall be
afforded an agency hearing if such institution or other person submits
a request for such hearing within 20 days after the
issuance of the notice of assessment.
Section 8(h) shall apply to any
proceeding under this paragraph.
(G) DISBURSEMENT.--All penalties collected
under authority of this paragraph shall be deposited into the Treasury.
(17) EXCEPTIONS.--This subsection shall not
apply with respect to a transaction which is subject to--
(A)
section 3
of the Bank Holding Company Act of 1956;
(18) APPLICABILITY OF CHANGE IN CONTROL
PROVISIONS TO OTHER INSTITUTIONS.--For purposes of this subsection,
the term "insured depository institution" includes--
(A) any depository institution holding company; and
(B) any other company which controls an insured
depository institution and is not a depository institution holding
company.
[Codified to 12 U.S.C. 1817(j)]
[Source: Section 2[7(j)] of the Act of September
21, 1950 (Pub. L. No. 797), as added by the Act of September 12, 1964
(Pub. L. No. 88--593; 78 Stat. 940), effective September 12, 1964; and
as amended by section 201 of title II of the Act of October 16, 1966
(Pub. L. No. 89--695; 80 Stat. 1046), effective October 16, 1966;
sections 6(c)(12) and (13) of the Act of September 17, 1978 (Pub. L.
No. 95--369; 92 Stat. 617--618), effective September 17, 1978; section
602 of title VI of the Act of November 10, 1978 (Pub. L. No. 95--630;
92 Stat. 3683), effective March 10, 1979; section 113(q) of title I of
the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1475),
effective October 15, 1982; section 1360 of subtitle H of title I of
the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat.
3207--29--3207--31), effective with respect to notices of proposed
acquisitions filed after the date of the enactment of this Act (October
27, 1986); sections 201(a)(1) and 208(8)--(13) of title II and sections
905(c) and 907(d) of title IX of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 187, 213, 460 and 468, respectively), effective
August 9, 1989; section 205 of title II of the Act of December 19, 1991
(Pub. L. No. 102--242; 105 Stat. 2292), effective December 19, 1991;
section 602(a)(6) and (7) of title VI of the Act of September 23, 1994
(Pub. L. No. 103--325; 108 Stat. 2288), effective September 23, 1994;
section 2226 of title II of the Act of September 30, 1996 (Pub. L. No.
104--208; 110 Stat. 3009--417), effective September 30, 1996; section
8(a)(9) 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 and the Savings Association Insurance Fund
pursuant to the Federal Deposit Insurance Reform Act of 2005; section
705 of title VII of the Act of October 13, 2006 (Pub. L. No. 109--351;
120 Stat. 1987), effective October 13, 2006]
(k) Federal Banking Agency Rules and Regulations for
Reports and Public Disclosure by Banks of Extension of Credit to
Executive Officers or Principal Shareholders or the Related Interests
of Such Persons.--The appropriate Federal banking agencies are
authorized to issue rules and regulations, including definitions of
terms, to require the reporting and public disclosure of information by
a bank or any executive officer or principal shareholder thereof
concerning extensions of credit by the bank to any of its executive
officers or principal shareholders, or the related interests of such
persons.
[Codified to 12 U.S.C. 1817(k)]
[Source: Section 2[7(k)] of the Act of September 21,
1950 (Pub. L. No. 797), as added by section 901 of title IX of the Act
of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3693), effective
March 10, 1979; as amended by section 429 of title IV of the Act of
October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1527), effective
October 15, 1982]
(l) Designation of Fund Membership
for Newly Insured Depository Institutions; Definitions.--For
purposes of this section:
(1) BANK INSURANCE FUND.--Any institution
which--
(A) becomes an insured depository institution; and
(B) does not become a Savings Association Insurance
Fund member pursuant to paragraph (2),
shall be a Bank Insurance Fund member.
(2) SAVINGS ASSOCIATION INSURANCE FUND.--Any
savings association, other than any
Federal savings bank chartered pursuant to
section 5(o) of the Home Owners' Loan
Act, which becomes an insured depository institution shall be a
Savings Association Insurance Fund member.
(3) TRANSITION PROVISION.--
(A) BANK INSURANCE FUND.--Any depository
institution the deposits of which were insured by the Federal Deposit
Insurance Corporation on [August 9, 1989], the day before the date of
the enactment of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, including--
(i) any Federal savings bank chartered pursuant to section 5(o)
of the Home Owners' Loan Act; and
(ii) any cooperative bank,
shall be a Bank Insurance Fund member as of [August 9, 1989], such
date of enactment.
(B) SAVINGS ASSOCIATION INSURANCE FUND.--Any
savings association which is an insured depository institution by
operation of
section 4(a)(2)
shall be a Savings Association Insurance Fund member as of [August 9,
1989], the date of the enactment of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
(4) BANK INSURANCE FUND MEMBER.--The term
"Bank Insurance Fund member" means any depository institution the
deposits of which are insured by the Bank Insurance Fund.
(5) SAVINGS ASSOCIATION INSURANCE FUND
MEMBER.--The term "Savings Association Insurance Fund member"
means any depository institution the deposits of which are insured by
the Savings Association Insurance Fund.
(6) BANK INSURANCE FUND RESERVE RATIO.--The
term "Bank Insurance Fund reserve ratio" means the ratio of the
net worth of the Bank Insurance Fund to the value of the aggregate
estimated insured deposits held in all Bank Insurance Fund members.
(7) SAVINGS ASSOCIATION INSURANCE FUND RESERVE
RATIO.-- The term "Savings Association Insurance Fund reserve
ratio" means the ratio of the net worth of the Savings Association
Insurance Fund to the value of the aggregate estimated insured deposits
held in all Savings Association Insurance Fund members.
[Codified to 12 U.S.C. 1817(l)]
[Source: Section 2[7(l)] of the Act of September 21, 1950 (Pub.
L. No. 797), effective September 21, 1950, as added by section 208(14)
of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103
Stat. 213), effective August 9, 1989; section 602(a)(8) of title VI of
the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2288),
effective September 23, 1994]
(m) Secondary Reserve Offsets Against Premiums.--
(1) OFFSETS IN CALENDAR YEARS BEGINNING BEFORE
1993.-- Subject to the maximum amount limitation contained in
paragraph (2) and notwithstanding any other provision of law, any
insured savings association may offset such association's pro rata
share of the statutorily prescribed amount against any premium assessed
against such association under subsection (b) of this section for any
calendar year beginning before 1993.
(2) ANNUAL MAXIMUM AMOUNT LIMITATION.--The
amount of any offset allowed for any savings association under
paragraph (1) for any calendar year beginning before 1993 shall not
exceed an amount which is equal to 20 percent of such association's pro
rata share of the statutorily prescribed amount (as computed for such
calendar year).
(3) OFFSETS IN CALENDAR YEARS BEGINNING AFTER
1992.-- Notwithstanding any other provision of law, a savings
association may offset such association's pro rata share of the
statutorily prescribed amount against any premium assessed against such
association under subsection (b) for any calendar year beginning after
1992.
(4) TRANSFERABILITY.--No right, title, or
interest of any insured depository institution in or with respect to
its pro rata share of the secondary reserve shall be assignable or
transferable whether by operation of law or otherwise, except to the
extent that the Corporation may provide for transfer of such pro rata
share in cases of merger or consolidation, transfer of bulk assets or
assumption of liabilities, and similar transactions, as defined by the
Corporation for purposes of this paragraph.
(5) PRO RATA DISTRIBUTION ON TERMINATION OF
INSURED STATUS.--If--
(A) the status of any savings association as an insured
depository institution is terminated pursuant to any provision of
section 8 or the insurance of
accounts of any such institution is otherwise terminated;
(B) a receiver or other legal custodian is appointed for the
purpose of liquidation or winding up the affairs of any savings
association; or
(C) the Corporation makes a determination that for the purposes
of this subsection any savings association has otherwise gone into
liquidation,
the Corporation shall pay in cash to such institution its pro rata
share of the secondary reserve, in accordance with such terms and
conditions as the Corporation may prescribe, or, at the option of the
Corporation, the Corporation may apply the whole or any part of the
amount which would otherwise be paid in cash toward the payment of any
indebtedness or obligation, whether matured or not, of such institution
to the Corporation, existing or arising before such payment in cash.
Such payment or such application need not be made to the extent that
the provisions of the exception in paragraph (4) are applicable.
(6) STATUTORILY PRESCRIBED AMOUNT DEFINED.--For purposes
of this subsection, the term "statutorily prescribed amount"
means, with respect to any calendar year which ends after [August 9,
1989], the date of the enactment of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989--
(A) $823,705,000, minus
(B) the sum of--
(i) the aggregate amount of offsets made before such date of
enactment by all insured institutions under section 404(e)(2) of the
National Housing Act (as in effect before [August 9, 1989], such date
of enactment); and
(ii) the aggregate amount of offsets made by all savings
associations under this subsection before the beginning of such
calendar year.
(7) SAVINGS ASSOCIATION'S PRO RATA AMOUNT.--For purposes
of this subsection, any savings association's pro rata share of the
statutorily prescribed amount is the percentage which is equal to such
association's share of the secondary reserve as determined under
section 404(e) of the National Housing Act on the day before the date
on which the Federal Savings and Loan Insurance Corporation ceased to
recognize the secondary reserve (as such Act was in effect on the day
before such date).
(8) YEAR OF ENACTMENT RULE.--With respect to the
calendar year in which the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 is enacted, the Corporation shall make such
adjustments as may be necessary--
(A) in the computation of the statutorily prescribed amount which
shall be applicable for the remainder of such calendar year after
taking into account the aggregate amount of offsets by all insured
institutions under section 404(e)(2) of the National Housing Act (as in
effect before the date of the enactment of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989) after the beginning of
[August 9, 1989], such calendar year and before such date of
enactment; and
(B) in the computation of the maximum amount of any savings
association's offset for such calendar year under paragraph (1) after
taking into account--
(i) the amount of any offset by such savings association under
section 404(e)(2) of the National Housing Act (as in effect before
[August 9, 1989], such date of enactment) after the beginning of such
calendar year and before such date of enactment; and
(ii) the change of such association's premium year from the
1-year period applicable under section 404(b) of the National Housing
Act (as in effect before [August 9, 1989] such date of enactment) to
a calendar year basis.
[Codified to 12 U.S.C. 1817(m)]
[Source: Section 2[7(m)] of the Act of September 21,
1950 (Pub. L. No. 797), effective September 21, 1950, as added by
section 208(15) of title II of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 214), effective August 9, 1989; section 608(a)(9)
and (10) of title VI of the Act of September 23, 1994 (Pub. L. No.
103--325; 108 Stat. 2288), effective September 23,
1994]
(n) Collections on behalf of the comptroller of the
currency.----When requested by the Comptroller of the Currency, the
Corporation shall collect on behalf of the Comptroller assessments on
Federal savings associations levied by the Comptroller under section 9
of the Home Owners' Loan Act. The Corporation shall be reimbursed for
its actual costs for the collection of such assessments. Any such
assessments by the Comptroller shall be in addition to any amounts
assessed by the Corporation.
[Codified to 12 U.S.C. 1817(n)]
[Source: Section 2[7(n)] of the Act of September 21, 1950 (Pub.
L. No. 797), effective September 21, 1950, as added by section 208(15)
of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103
Stat. 214), effective August 9, 1989; as amended by section 363(b)(2)
of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124
Stat. 1550), effective July 21, 2010]
NOTES
Derivation. Sections 7(a)--(j) derive from section
12B(h) of the Federal Reserve Act, as added by section 101 [12B(h)]
of title I of the Act of August 23, 1935 (Pub. L. No. 305; 49 Stat.
688), effective August 23, 1935. Section 12B(h) of the Federal Reserve
Act was amended by section 1 of the Act of April 13, 1943 (Pub. L. No.
37; 57 Stat. 65), effective April 13, 1943. 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 7(k) was added by section 901 of title IX of the Act of
November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3693), effective March
10, 1979.
Sections 7(l)--(n) were added by section 208 of
title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat.
213 and 214), effective August 9, 1989.
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