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1000 - Federal Deposit Insurance Act


The factors that are required, under section 4, to be considered in connection with, and enumerated in, any certificate issued pursuant to section 4 and that are required, under section 5, to be considered by the Board of Directors in connection with any determination by such Board pursuant to section 5 are the following:

(1)  The financial history and condition of the depository institution.

(2)  The adequacy of the depository institution's capital structure.

(3)  The future earnings prospects of the depository institution.

(4)  The general character and fitness of the management of the depository institution.

(5)  The risk presented by such depository institution to the Deposit Insurance Fund.

(6)  The convenience and needs of the community to be served by such depository institution.

(7)  Whether the depository institution's corporate powers are consistent with the purposes of this Act.

[Codified to 12 U.S.C. 1816]

[Source:  Section 2[6] of the Act of September 21, 1950 (Pub. L. No. 797; 64 Stat. 876), effective September 21, 1950, as amended by section 207 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 206), effective August 9, 1989; section 8(a)(7) 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]


Derivation.  Section 6 derives from section 12B(g) of the Federal Reserve Act, as added by section 101[12B(g)] of title I of the Act of August 23, 1935 (Pub. L. No. 305; 49 Stat. 688), effective August 23, 1935. 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 L. No. 797; 64 Stat. 873), effective September 21, 1950, section 12B of the Federal Reserve Act was withdrawn as a part of that Act and was made a separate act known as the "Federal Deposit Insurance Act."

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