FDIC Law, Regulations, Related Acts
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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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