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1000 - Federal Deposit Insurance Act


SEC. 19.  PENALTY FOR UNAUTHORIZED PARTICIPATION BY CONVICTED INDIVIDUAL.

(a)  Prohibition.--

(1)  IN GENERAL.--Except with the prior written consent of the Corporation--

(A)  any person who has been convicted of any criminal offense involving dishonesty or a breach of trust or money laundering, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such offense, may not--

(i)  become, or continue as, an institution-affiliated party with respect to any insured depository institution;

(ii)  own or control, directly or indirectly, any insured depository institution; or

(iii)  otherwise participate, directly or indirectly, in the conduct of the affairs of any insured depository institution; and

(B)  any insured depository institution may not permit any person referred to in subparagraph (A) to engage in any conduct or continue any relationship prohibited under such subparagraph.

(2)  MINIMUM 10-YEAR PROHIBITION PERIOD FOR CERTAIN OFFENSES.--

(A)  IN GENERAL.--If the offense referred to in paragraph (1)(A) in connection with any person referred to in such paragraph is--

(i)  an offense under--

(I)  section 215, 656, 657, 1005, 1006, 1007, 1008, 1014, 1032, 1344, 1517, 1956, or 1957 of title 18, United States Code; or

(II)  section 1341 or 1343 of such title which affects any financial institution (as defined in section 20 of such title); or

(ii)  the offense of conspiring to commit any such offense,

the Corporation may not consent to any exception to the application of paragraph (1) to such person during the 10-year period beginning on the date the conviction or the agreement of the person becomes final.

(B)  EXCEPTION BY ORDER OF SENTENCING COURT.--

(i)  IN GENERAL.--On motion of the Corporation, the court in which the conviction or the agreement of a person referred to in subparagraph (A) has been entered may grant an exception to the application of paragraph (1) to such person if granting the exception is in the interest of justice.

(ii)  PERIOD FOR FILING.--A motion may be filed under clause (i) at any time during the 10-year period described in subparagraph (A) with regard to the person on whose behalf such motion is made.

[Codified to 12 U.S.C. 1829(a)]

[Source:  Section 2[19(a)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as amended by section 910(a) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 477), effective August 9, 1989; section 2502(a) of title XXV of the Act of November 29, 1990 (Pub. L. No. 101--647; 104 Stat. 4860), effective November 29, 1990; section 1505 of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4055), effective October 28, 1992; section 320605 of title XXXII of the Act of September 13, 1994 (Pub. L. No. 103--322; 108 Stat. 2119), effective September 13, 1994]

(b)  Penalty.--Whoever knowingly violates subsection (a) shall be fined not more than $1,000,000 for each day such prohibition is violated or imprisoned for not more than 5 years, or both.

[Codified to 12 U.S.C. 1829(b)]

[Source:  Section 2[19(b)] of the Act of September 21, 1950 (Pub. L. No. 797; 64 Stat. 893), effective September 21, 1950, as added by section 910(a) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 477), effective August 9, 1989]


(d)  Bank Holding Companies.--

(1)  IN GENERAL.--Subsections (a) and (b) shall apply to any company (other than a foreign bank) that is a bank holding company and any organization organized and operated under section 25A of the Federal Reserve Act or operating under section 25 of the Federal Reserve Act, as if such bank holding company or organization were an insured depository institution, except that such subsections shall be applied for purposes of this subsection by substituting "Board of Governors of the Federal Reserve System" for "Corporation" each place that term appears in such subsections.

(2)  AUTHORITY OF BOARD.--The Board of Governors of the Federal Reserve System may provide exemptions, by regulation or order, from the application of paragraph (1) if the exemption is consistent with the purposes of this subsection.

[Codified to 12 U.S.C. 1829(d)]

[Source: Section 2[19(d)] of the Act of September 1, 1950 (Pub. L. No. 797; 64 Stat. 893), effective September 21, 1950 as added by section 710(a) of title VII of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1990), effective October 13, 2006]

(e)  Savings and Loan Holding Companies.--

(1)  IN GENERAL.--Subsections (a) and (b) shall apply to any savings and loan holding company as if such savings and loan holding company were an insured depository institution, except that such subsections shall be applied for purposes of this subsection by substituting "Board of Governors of the Federal Reserve System" for "Corporation" each place that term appears in such subsections.

(2)  AUTHORITY OF DIRECTOR.--The1 "Board of Governors of the Federal Reserve System" may provide exemptions, by regulation or order, from the application of paragraph (1) if the exemption is consistent with the purposes of this subsection.

[Codified to 12 U.S.C. § 1829(e)]

[Source: Section 2[19(e)] of the Act of September 1, 1950 (Pub. L. No. 797; 64 Stat. 893), effective September 21, 1950 as added by Section 710(a) of title VII of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1990), effective October 13, 2006]


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