§ 1815. Deposit insurance

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1950

   Pub. L. 81–967 § 2 · 64 Stat. 873

   Enacted · 12 U.S.C. § 1815

   Sept. 21, 1950, ch. 967, § 2[5], 64 Stat. 876

   Source evidence

   Code source credit
   Sept. 21, 1950, ch. 967, § 2[5], 64 Stat. 876

   Enacted provision · exact public law section
   Sec. 2. The Federal Deposit Insurance Act is amended to read as follows: “Sec. 1. There is hereby created a Federal Deposit Insurance Corporation Creation of Corporation. (hereinafter referred to as the ‘Corporation’) which shall insure, as hereinafter provided, the deposits of all banks which are entitled to the benefits of insurance under this Act, and which shall have the powers hereinafter granted. “Sec. 2. The management of the Corporation shall be vested in a Board of Directors. Board of Directors consisting of three members, one of whom shall be the Comptroller of the Currency, and two of whom shall be citizens of the United States to be appointed by the President, by and with the advice and consent of the Senate. One of the appointive members shall be the Chairman of the Board of Directors of the Corporation and not more than two of the members of such Board of Directors shall be members of the same political party. Each such appointive member Terms of office. shall hold office for a term of six years. In the event of a vacancy in the office of the Comptroller of the Currency, and pending the appointment of his successor, or during the absence of the Comptroller from Washington, the Acting Comptroller of the Currency shall be a member of the Board of Directors in the place and stead of the Comptroller. In the event of a vacancy in the office of the Chairman of the Board of Directors, and pending the appointment of his successor, the Comptroller of the Currency shall act as Chairman. The members of the Restrictions. Board of Directors shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any insured bank, except that this restriction shall not apply to any member who has served the full term for which he was appointed. No member of the Board of Directors shall be an officer or director of any insured bank or Federal Reserve bank or hold stock in any insured bank; and before entering upon his duties as a member of the Board of Directors he shall certify under oath that he has complied with this requirement and such certification shall be filed with the secretary of the Board of Directors. “Sec. 3. As used in this Act— Definitions. “(a) The term ‘State bank’ means any bank, banking association, trust company, savings bank, or other banking institution which is engaged in the business of receiving deposits, other than trust funds as herein defined, and which is incorporated under the laws of any State, any Territory of the United States, Puerto Rico, or the Virgin Islands, or which is operating under the Code of Law for the District of Columbia (except a national bank), and includes any unincorporated bank the deposits of which are insured on the effective date of this amendment. “(b) The term ‘State member bank’ means any State bank which is a member of the Federal Reserve System, and the term ‘State nonmember bank’ means any State bank which is not a member of the Federal Reserve System. “(c) The term ‘District bank means any State bank operating under the Code of Law for the District of Columbia. “(d) The term ‘national member bank’ means any national bank located in any of the States of the United States, the District of Columbia, any Territory of the United States, Puerto Rico, or the Virgin Islands which is a member of the Federal Reserve System. “(e) The term ‘national nonmember bank’ means any national bank located in any Territory of the United States, Puerto Rico, or the Virgin Islands which is not a member of the Federal Reserve System. “(f) The term ‘mutual savings bank’ means a bank without capital stock transacting a savings bank business, the net earnings of which inure wholly to the benefit of its depositors after payment of obligations for any advances by its organizers. “(g) The term ‘savings bank means a bank (other than a mutual savings bank) which transacts its ordinary banking business strictly as a savings bank under State laws imposing special requirements on such banks governing the manner of investing their funds and of conducting their business: Provided, That the bank maintains, until maturity date or until withdrawn, all deposits made with it (other than funds held by it in a fiduciary capacity) as time savings deposits of the specific term type or of the type where the right is reserved to the bank to require written notice before permitting withdrawal: Provided further, That such bank to be considered a savings bank must elect to become subject to regulations of the Corporation with respect to the redeposit of maturing deposits and prohibiting withdrawal of deposits by checking except in cases where such withdrawal was permitted by law on August 23, 1935, from specifically designated deposit accounts totaling not more than 15 per centum of the bank’s total deposits. “(h) The term ‘insured bank’ means any bank the deposits of which are insured in accordance with the provisions of this Act; and the term ‘noninsured bank’ means any bank the deposits of which are not so insured. “(i) The term ‘new bank’ means a new national banking association organized by the Corporation to assume the insured deposits of an insured bank closed on account of inability to meet the demands of its depositors and otherwise to perform temporarily the functions prescribed in this Act. “(j) The term ‘receiver’ includes a receiver, liquidating agent, conservator, commission, person, or other agency charged by law with the duty of winding up the affairs of a bank. “(k) The term ‘Board of Directors’ means the Board of Directors of the Corporation. “(l) The term ‘deposit’ means the unpaid balance of money or its equivalent received by a bank in the usual course of business and for which it has given or is obligated to give credit to a commercial, checking, savings, time, or thrift account, or which is evidenced by its certificate of deposit, and trust funds held by such bank whether retained or deposited in any department of such bank or deposited in another bank, together with such other obligations of a bank as the Board of Directors shall find and shall prescribe by its regulations to be deposit liabilities by general usage: Provided, That any obligation of a bank which is payable only at an office of the bank located outside the States of the United States, the District of Columbia, any Territory of the United States, Puerto Rico, and the Virgin Islands, shall not be a deposit for any of the purposes of this Act or be included as a part of total deposits or of an insured deposit: Provided further, That any insured bank having its principal place of business in any of the States of the United States or m the District of Columbia which maintains a branch in any Territory of the United States, Puerto Rico, or the Virgin Islands may elect to exclude from insurance under this Act its deposit obligations which are payable only at such branch, and upon so electing the insured bank with respect to such branch shall comply with the provisions of this Act applicable to the termination of insurance by nonmember banks: Provided, further, That the bank may elect to restore the insurance to such deposits at any time its capital stock is unimpaired. “(m) The term ‘insured deposit’ means the net amount due to any depositor for deposits in an insured bank (after deducting offsets) less any part thereof which is in excess of $10,000. Such net amount shall be determined according to such regulations as the Board of Directors may prescribe, and in determining the amount due to any depositor there shall be added together all deposits in the bank maintained in the same capacity and the same right for his benefit either in his own name or in the names of others except trust funds which shall be insured as provided in subsection (i) of section 7. Each officer, employee, or Post, p. 879. agent of the United States, of any State of the United States, of the District of Columbia, of any Territory of the United States, of Puerto Rico, of the Virgin Islands, of any county, of any municipality, or of any political subdivision thereof, herein called ‘public unit’, having official custody of public funds and lawfully depositing the same in an insured bank shall, for the purpose of determining the amount of the insured deposits, be deemed a depositor in such custodial capacity separate and distinct from any other officer, employee, or agent of the same or any public unit having official custody of public funds and lawfully depositing the same in the same insured bank in custodial capacity. “(n) The term ‘transferred deposit’ means a deposit in a new bank or other insured bank made available to a depositor by the Corporation as payment of the insured deposit of such depositor in a closed bank, and assumed by such new bank or other insured bank. “(o) The term ‘branch’ includes any branch bank, branch office, branch agency, additional office, or any branch place of business located in any State of the United States or in any Territory of the United States, Puerto Rico, or the Virgin Islands at which deposits are received or checks paid or money lent. “(p) The term ‘trust funds’ means funds held by an insured bank in a fiduciary capacity and includes, without being limited to, funds held as trustee, executor, administrator, guardian, or agent. “Sec. 4. (a) Every bank, which is an insured bank on the effective Insured bank. date of this amendment, shall be and continue to be, without application or approval, an insured bank and shall be subject to the provisions of this Act. “(b) Every national member bank which is authorized to commence National member banks. or resume the business of banking, and which is engaged in the business of receiving deposits other than trust funds as herein defined, and every such national nonmember bank which becomes a member of the Federal Reserve System, and every State bank which is converted into a national member bank or which becomes a member of the Federal Reserve System, and which is engaged in the business of receiving deposits, other than trust funds as herein defined, shall be an insured bank from the time it is authorized to commence or resume business or becomes a member of the Federal Reserve System. The certificate herein prescribed shall be issued to the Corporation Issuance of certificate. by the Comptroller of the Currency in the case of such national member bank, or by the Board of Governors of the Federal Reserve System in the case of such State member bank: Provided, That in Exception. the case of an insured bank which is admitted to membership in the Federal Reserve System or an insured State bank which is converted into a national member bank, such certificate shall not be required, and the bank shall continue as an insured bank. Such certificate shall state that the bank is authorized to transact the business of banking in the case of a national member bank, or is a member of the Federal Reserve System in the case of a State member bank, and that consideration has been given to the factors enumerated in State banks. section 6. A State bank, resulting from the conversion of an insured national bank, shall continue as an insured bank. A State bank, resulting from the merger or consolidation of insured banks, or from the merger or consolidation of a noninsured bank or institution with an insured State bank, shall continue as an insured bank. “Sec. 5. Subject to the provisions of this Act, any national nonmember Application for Insurance by nonmember bank. bank which is engaged in the business of receiving deposits, other than trust funds as herein defined, upon application by the bank and certification by the Comptroller of the Currency in the manner prescribed in subsection (b) of section 4 and any State nonmember bank, upon application to and examination by the Corporation and approval by the Board of Directors, may become an insured bank. Before approving the application of any such State nonmember bank, the Board of Directors shall give consideration to the factors enumerated in section 6 and shall determine, upon the basis of a thorough examination of such bank, that its assets in excess of its capital requirements are adequate to enable it to meet all of its liabilities to depositors and other creditors as shown by the books of the bank. “Sec. 6. The factors to be enumerated in the certificate required Factors enumerated in certificate, etc. under section 4 and to be considered by the Board of Directors under section 5 shall be the following: The financial history and condition of the bank, the adequacy of its capital structure, its future earnings prospects, the general character of its management, the convenience and needs of the community to be served by the bank, and whether or not its corporate powers are consistent with the purposes of this Act. “Sec. 7. (a) The assessment rate shall be one-twelfth of 1 per centum Assessment rate, base, etc. per annum. The semiannual assessment for each insured bank shall be in the amount of the product of one-half the annual assessment rate multiplied by the assessment base. The assessment base shall be the amount of the liability of the bank for deposits, according to the definition of the term ‘deposit’ in and pursuant to subsection (1) of section 3, without any deduction for indebtedness of depositors: Provided, That the bank— “(1) may deduct (i) from the deposit balance due to an insured Deductions. bank the deposit balance due from such insured bank (other than trust funds deposited by it in such bank) which is subject to immediate withdrawal; (ii) trust funds held by the bank in a fiduciary capacity and which are deposited in another insured bank; and (iii) cash items as determined by either of the following methods, at the option of the bank: (aa) By multiplying by 2 the total of the cash items forwarded for collection on the assessment base days (being the days on which the average deposits are computed) and cash items held for clearings at the close of business on said days, which are in the process of collection and which the bank has paid in the regular course of business or credited to deposit accounts; or (bb) by deducting the total of cash items forwarded for collection on the assessment base days and cash items held for clearings at the close of business on said days, which are in the process of collection and which the bank has paid in the regular course of business or credited to deposit accounts, plus such uncollected items paid or credited on preceding days which Definitions, etc., by Board of Directors. are in the process of collection: Provided, That the Board of Directors may define the terms ‘cash items’, ‘process of collection’, and ‘uncollected items’ and shall fix the maximum period for which any such item may be deducted; and “(2) may exclude from its assessment base (i) drafts drawn by Exclusions. it on deposit accounts in other banks which are issued in the regular course of business; and the amount of any advices or authorizations, issued by it for cash letters received, directing that its deposit account in the sending bank be charged with the amount thereof; and (ii) cash funds which are received and held solely for the purpose of securing a liability to the bank but not. in an amount in excess of such liability, and which are not subject to withdrawal by the obligor and are carried in a special non-interest-bearing account designated to properly show their purpose. Each insured bank, as a condition to the right to make any such Maintenance of records. deduction or exclusion in determining its assessment base, shall maintain such records as will readily permit verification of the correctness thereof. The semiannual assessment base for one semiannual period Semiannual assessment base. shall be the average of the assessment base of the bank as of the close of business on March 31 and June 30, and the semiannual assessment base for the other semiannual period shall be the average of the assessment base of the bank as of the close of business on September 30 and December 31: Provided, That when any of said days is a nonbusiness day or a legal holiday, either National or State, the preceding business day shall be used. The certified statements required Certified statements. to be filed with the Corporation under subsections (b) and (c) of this section shall be in such form and set forth such supporting information as the Board of Directors shall prescribe. The assessment Assessment payments. payments required from insured banks under subsections (b) and (c) of this section shall be made in such manner and at such time or times as the Board of Directors shall prescribe, provided the time or times so prescribed shall not be later than sixty Jays after filing the certified statement, setting forth the amount of assessment. “(b) On or before the 15th day of July of each year, each insured Filing of certified statements. bank shall file with the Corporation a certified statement showing for the six months ending on the preceding June 30 the amount of the assessment base and the amount of the semiannual assessment due to the Corporation for the period ending on the following December 31, determined in accordance with subsection (a) of this section, which shall contain or be verified by a written declaration that it is made under the penalties of perjury. Each insured bank shall pay to the Corporation the amount of the semiannual assessment it is required to certify. On or before the 15th day of January of each year, each insured bank shall file with the Corporation a similar certified statement for the six months ending on the preceding December 31 and shall pay to the Corporation the amount of the semiannual assessment for the period ending on the following June 30 which it is required to certify. “(c) Each bank which becomes an insured bank shall not be Exemptions. required to file any certified statement or pay any assessment for the semiannual period in which it becomes an insured bank. On the expiration of such period, each such bank shall comply with the provisions of subsection (b) of this section except that the semiannual assessment base for its first certified statement shall be the assessment base of the bank as of the close of business on the preceding June 30 or December 31, whichever is applicable, determined in accordance with subsection (a) of this section. If such bank has assumed the liabilities for deposits of another bank or banks, it shall include such liabilities in its assessment base. The first certified statement shall show as the amount of the first semiannual assessment due to the Corporation, an amount equal to the product of one-half of the annual assessment rate multiplied by such assessment base. “(d) As of December 31, 1950, and as of December 31, of each Net assessment income. calendar year thereafter, the Corporation shall transfer 40 per centum of its net assessment income to its capital account and the balance of the net assessment income shall be credited pro rata to the insured banks based upon the assessments of each bank becoming due during said calendar year. Each year such credit shall be applied by the Corporation toward the payment of the total assessment becoming due for the semiannual assessment period beginning the next ensuing July 1 and any excess credit shall be applied upon the assessment next becoming due. The term ‘net assessment income’ as used herein means the total assessments which become due during the calendar year less (1) the operating costs and expenses of the Corporation for the calendar year; (2) additions to reserve to provide for insurance losses during the calendar year, except that any adjustments to reserve which result in a reduction of such reserve shall be added; and (3) the insurance losses sustained in said calendar year plus losses from any preceding years in excess of such reserves. If the above deductions exceed in amount the total assessments which become due during the calendar year, the amount of such excess shall be restored by deduction from total assessments becoming due in subsequent years. “(e) The Corporation (1) may refund to an insured bank any Refund or credit of excess payment. payment of assessment in excess of the amount due to the Corporation or (2) may credit such excess toward the payment of the assessment next becoming due from such bank and upon succeeding assessments until the credit is exhausted. “(f) Any insured bank which fails to file any certified statement Sult to compel filing of statement. required to be filed by it in connection with determining the amount of any assessment payable by the bank to the Corporation may be compelled to file such statement by mandatory injunction or other appropriate remedy in a suit brought for such purpose by the Corporation against the bank and any officer or officers thereof in any court of the United States of competent jurisdiction in the District or Territory in which such bank is located. “(g) The Corporation, in a suit brought at law or in equity in any Recovery of unpaid assessment, etc. court of competent jurisdiction, shall be entitled to recover from any insured bank the amount of any unpaid assessment lawfully payable by such insured bank to the Corporation, whether or not such bank shall have filed any such certified statement and whether or not suit shall have been brought to compel the bank to file any such statement. No action or proceeding shall be brought for the recovery of any assessment due to the Corporation, or for the recovery of any amount paid to the Corporation in excess of the amount due to it, unless such action or proceeding shall have been brought within five years after the right accrued for which the claim is made, except where the insured bank has made or filed with the Corporation a false or fraudulent certified statement with the intent to evade, in whole or in part, the payment of assessment, in which case the claim shall not be deemed to have accrued until the discovery by the Corporation that the certified statement is false or fraudulent: Provided, however, That where a cause of action has already accrued, and the period herein prescribed within which an action may be brought has expired, or will expire within one year from the date this amendment becomes effective, an action may be brought on such cause of action within one year from the effective date of this amendment: And provided further, That no action or proceeding shall be brought for the recovery of any assessment on deposits alleged to have been omitted from the assessment base of any insured bank for any year prior to 1945 except that any claim of the Corporation for the payment of any assessment may be offset by it against any claim of the bank for the overpayment of any assessment. “(h) Should any national member bank or any insured national Forfeiture of franchises, etc. nonmember bank fail to file any certified statement required to be filed by such bank under any provision of this section, or fail to pay any assessment required to be paid by such bank under any provision of this Act, and should the bank not correct such failure within thirty days after written notice has been given by the Corporation to an officer of the bank, citing this subsection, and stating that the bank has failed to file or pay as required by law, all the rights, privileges, and franchises of the bank granted to it under the National Bank Act, as amended, the Federal Reserve Act, as amended, or 18 Stat. 123; 38 Stat. 251. 12 U. S. C. §§ 38 and note, 226 and note; Sup. III, 2 et seq., 241 et seq. Ante, pp. 80, 307, 457, 458, 463. 38 Stat. 252. 12 U. S. C. § 501a. this Act, shall be thereby forfeited. Whether or not the penalty provided in this subsection has been incurred shall be determined and adjudged in the manner provided in the sixth paragraph of section 2 of the Federal Reserve Act, as amended. The remedies provided in this subsection and in the two preceding subsections shall not be construed as limiting any other remedies against any insured bank, but shall be in addition thereto. “(i) Trust funds held by an insured bank in a fiduciary capacity Insurance of trust funds. whether held in its trust or deposited in any other department or in another bank shall be insured in an amount not to exceed $10,000 for each trust estate, and when deposited by the fiduciary bank in another insured bank such trust funds shall be similarly insured to the fiduciary bank according to the trust estates represented. Notwithstanding any other provision of this Act, such insurance shall be separate from and additional to that covering other deposits of the owners of such trust funds or the beneficiaries of such trust estates: Provided, That where the fiduciary bank deposits any of such trust funds in other insured banks, the amount so held by other insured banks on deposit shall not for the purpose of any certified statement required under subsections (b) and (c) of this section be considered to be a deposit liability of the fiduciary bank, but shall be considered to be a deposit liability of the bank in which such funds are so deposited by such fiduciary bank. The Board of Directors shall have power by regulation to prescribe the manner of reporting and of depositing such trust funds. “Sec. 8. (a) Any insured bank (except a national member bank or Termination of status by insured bank. State member bank) may, upon not less than ninety days’ written notice to the Corporation, and to the Reconstruction Finance Corporation if it owns or holds as pledgee any preferred stock, capital notes, or debentures of such bank, terminate its status as an insured bank. Whenever the Board of Directors shall find that an insured bank or its Correction of unsafe practices, etc. directors or trustees have continued unsafe or unsound practices in conducting the business of such bank, or have knowingly or negligently permitted any of its officers or agents to violate any provision of any law or regulation to which the insured bank is subject, the Board of Directors shall first give to the Comptroller of the Currency in the case of a national bank or a District bank, to the authority having supervision of the bank in the ease of a State bank, or to the Board of Governors of the. Federal Reserve System in the case of a State member bank, a statement with respect to such practices or violations for the purpose of securing the correction thereof and shall give a copy thereof to the bank. Unless such correction shall be made within one hundred and twenty days or such shorter period of time as the Comptroller of the Currency, the State authority, or Board of Governors of the Federal Reserve System, as the case may be, shall require, the Board of Directors, if it shall determine to proceed further, shall give to the bank not less than thirty days’ written notice of intention to terminate the status of the bank as an insured bank, and shall fix a time and Hearing. place for a hearing before the Board of Directors or before a person designated by it to con duet such hearing, at which evidence may be produced, and upon such evidence the Board of Directors shall make written findings which shall be conclusive. Unless the bank shall appear at the hearing by a duly authorized representative, it shall be deemed to have consented to the termination of its status as an insured bank. If the Board of Directors shall find that any unsafe or unsound practice or violation specified in such notice has been established and has not been corrected within the time above prescribed in which to make such corrections, the Board of Directors may order that the insured status of the bank be terminated on a date subsequent to such finding and to the expiration of the time specified in such Publication of notice. notice of intention. The Corporation may publish notice of such termination and the bank shall give notice of such termination to each of its depositors at his last address of record on the books of the bank, in such manner and at such time as the Board of Directors may find to be Continuation of insured deposits. necessary and may order for the protection of depositors. After the termination of the insured status of any bank under the provisions of this subsection, the insured deposits of each depositor in the bank on the date of such termination, less all subsequent withdrawals from any deposits of such depositor, shall continue for a period of two years to be insured, and the bank shall continue to pay to the Corporation Noninsurance of additions and new deposits. assessments as in the case of an insured bank during such period. No additions to any such deposits and no new deposits in such bank made after the date of such termination shall be insured by the Corporation, and the bank shall not advertise or hold itself out as having insured deposits unless in the same connection it shall also state with equal prominence that such additions to deposits and new deposits made Duties of insured hank after termination, etc. after such date are not so insured. Such bank shall, in all other respects, be subject to the duties and obligations of an insured bank for the period of two years from the date of such termination, and in the event that such bank shall be closed on account of inability to meet the demands of its depositors within such period of two years, the Corporation shall have the same powers and rights with respect to such bank as in case of an insured bank. “(b) Whenever the insured status of a State member bank shall be State member bank. Termination of membership in Federal Reserve System. 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 38 Stat. 260. 12 U. S. C. § 327. Appointment of receiver for national member bank. Ante, p. 875. 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 (b) of section 4, whenever a member bunk shall cease to be a member of the Federal Reserve System, its status as an insured bank 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. “(c) Notwithstanding any other provision of law, whenever the Bank not receiving deposits other than trust funds. Termination of insured status. Board of Directors shall determine that an insured banking institution is not engaged in the business of receiving deposits, other than trust funds as herein defined, the Corporation shall notify the banking institution that its insured status will terminate at the expiration of the first full semiannual assessment period following such notice, A finding by the Board of Directors that a banking 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 banking institution of such termination and the Corporation may publish notice thereof. Upon the termination of the insured status of any such banking institution, its deposits shall thereupon cease to be insured and the banking institution shall thereafter be relieved of all future obligations to the Corporation, including the obligation to pay future assessments. “(d) Whenever the liabilities of an insured bank for deposits shall Assumption of liabilities by another insured bank. have been assumed by another insured bank or banks, the insured status of the bank whose liabilities are so assumed shall terminate on the date of receipt by the Corporation of satisfactory evidence of such assumption 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: Provided, That if the bank whose liabilities are so assumed gives to its depositors notice of such assumption within thirty days after such assumption takes effect, by publication or by any reasonable means, in accordance with regulations to be prescribed by the Board of Directors, the insurance of its deposits shall terminate at the end of six months from the date such assumption takes effect. Such bank shall be subject to the duties and obligations of an insured bank for the period its deposits are insured: Provided, That if the deposits are assumed by a newly insured bank, the bank whose deposits are assumed shall not be required to pay any assessment upon the deposits which have been so assumed after the semiannual period in which the assumption takes effect. “Sec. 9. Upon the date of enactment of the Banking Act of 1933, Corporate powers. 48 Stat. 162. 12 U. S. C. § 227 and note; Sup. III, § 24 et seq. Ante, pp. 457, 458. the Corporation shall become a body corporate and as such shall have power— “First. To adopt and use a corporate seal. “Second. To have succession until dissolved by an Act of Congress. “Third. To make contracts. “Fourth. To sue and be sued, complain and defend, in any court of law or equity, State or Federal. All suits of a civil nature at common law or in equity to which the Corporation shall be a party shall be deemed to arise under the laws of the United States: Provided, That any such suit to which the Corporation is a party in its capacity as receiver of a State bank and which involves only the rights or obligations of depositors, creditors, stockholders, and such State bank under State law shall not be deemed to arise under the laws of the United States. No attachment or execution shall be issued against the Corporation or its property before final judgment in any suit, action, or proceeding in any State, county, municipal, or United States court. The Board of Directors shall designate an agent upon whom service of process may be made in any State, Territory, or jurisdiction in which any insured bank is located. “Fifth. To appoint by its Board of Directors such officers and employees as are not otherwise provided for in this Act, to define their duties, fix their compensation, require bonds of them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. Nothing in this or any other Act shall be construed to prevent the appointment and compensation as an officer or employee of the Corporation of any officer or employee of the United States in any Board, commission, independent establishment, or executive department thereof. “Sixth. To prescribe, by its Board of Directors, by laws not inconsistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed. “Seventh. To exercise by its Board of Directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this Act, and such incidental powers as shall be necessary to carry out the powers so granted. “Eighth. To make examinations of and to require information and reports from banks, as provided in this Act. “Ninth. To act as receiver. “Tenth. To prescribe by its Board of Directors such rules and regulations as it may deem necessary to carry out the provisions of this Act. “Sec. 10. (a) The Board of Directors shall administer the affairs Administration of Corporation. of the Corporation fairly and impartially and without discrimination. The Board of Directors of the Corporation shall determine and prescribe the manner in which its obligations shall be incurred and Free use of U. S. mails. its expenses allowed and paid. The Corporation shall be entitled to the free use of the United States mails in the same manner as the executive departments of the Government. The Corporation with the consent of any Federal Reserve bank or of any board, commission, independent establishment, or executive department of the Government, including any field service thereof, may avail itself of the use of information, services, and facilities thereof in carrying out the provisions of this Act. “(b) The Board of Directors shall appoint examiners who shall Examiners. have power, on behalf of the Corporation, to examine any insured State nonmember bank (except a District bank), any State nonmember bank making application to become an insured bank, and any closed insured bank, whenever in the judgment of the Board of Directors an examination of the bank is necessary. In addition to the examinations provided for in the preceding sentence, such examiners shall have like power to make special examination of any State member bank and any national bank or District bank, whenever in the judgment of the Board of Directors such special examination is necessary to determine the condition of any such bank for insurance purposes. Oaths. Each such examiner shall have power to make a thorough examination of all the affairs of the bank and in doing so he shall have power to administer oaths and to examine and take and preserve the testimony of any of the officers and agents thereof, and shall make a full and Claim agents. detailed report of the condition of the bank to the Corporation. The Board of Directors in like manner shall appoint claim agents who shall have power to investigate and examine all claims for insured Oaths. deposits and transferred deposits. Each claim agent shall have power to administer oaths and to examine under oath and take and preserve the testimony of any persons relating to such claims. “(c) For the purpose of any hearing under this Act, the Board of Conduct of hearing. Directors, any Powers of Board. member thereof or any person designated by the Board of Directors to conduct any such hearing, is empowered to administer oaths and affirmations, subpena any officer or employee of the insured bank, compel his attendance, take evidence, take depositions and require the production of any books, records, or other papers of the insured U. S. Courts. bank which are relevant or material to the inquiry. For the purpose of any hearing, examination, or investigation under this Act, the Board of Directors may apply to any judge or clerk of any court of the United States within the jurisdiction of which such hearing, examination, or investigation is carried on, or where such pei’son resides or carries on business, to issue a subpena commanding each person to whom it is directed to attend and give testimony or for the taking of his deposition and to produce books, records, or other papers relevant or material to such hearing, examination, or investigation at a time and place and before a person therein specified. Such attendance of witnesses and the production of any such papers 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 a hearing is being held or such examination or i lives- tigation is being made: Provided, however, That the production of a person’s documents at any place other than his place of business shall not be required in any case in which, prior to the return date specified in the subpena with respect thereto, such person either has furnished as directed a copy of such documents (certified by such person under oath to be a true and correct copy) or has entered into a stipulation with any authorized representative of the Corporation as to the information contained in such documents. Witnesses subpenaed under Witness fees. this section shall be paid the same fees and mileage that are paid witnesses in the district courts of the United States. “(d) In cases of refusal to obey a subpena issued to, or contumacy Contumacy, etc. by, any person, the Board of Directors may invoke the aid of any court of the United States within the jurisdiction of which such hearing, examination or investigation is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, records, or other papers. And such court may issue an order requiring such person to appear before the Board of Directors or member or person designated by the Board of Directors, there to produce records, if so ordered, or to give testimony touching the matter in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such person is an inhabitant or carries on business or wherever he may be found. No person shall be excused from attending and testifying or from producing books, records, or other papers in obedience to a subpena issued under the authority of this Act on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to penalty or forfeiture; but no individual shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled to testify or produce evidence, documentary or otherwise, after having claimed his privilege against self-incrimination, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. “(e) Each insured State nonmember bank (except a District bank) Reports of condition by State nonmember banks. shall make to the Corporation reports of condition in such form and at such times as the Board of Directors may require. The Board of Directors may require such reports to be published in such manner, not inconsistent with any applicable law, as it may direct. Every such bank which fails to make or publish any such report within such time, not less than five days, as the Board of Directors may require, shall be subject to a penalty of not more than $100 for each day of such failure recoverable by the Corporation for its use. “(f) The Corporation shall have access to reports of examination Access to reports. made by, and reports of condition made to, the Comptroller of the Currency or any Federal Reserve bank, may accept any report made by or to any commission, board, or authority having supervision of a State nonmember bank (except a District bank), and may furnish to the Comptroller of the Currency, to any Federal Reserve bank, and to any such commission, board, or authority, reports of examinations made on behalf of, and reports of condition made to, the Corporation. “(g) The Corporation may cause any and all records, papers, or Permanent photographic records. documents kept by it or in its possession or custody to be photographed or microphotographed or otherwise reproduced upon film, which photographic film shall comply with the minimum standards of quality approved for permanent photographic records by the National Bureau of Standards. Such photographs, microphotographs, or photographic film or copies thereof shall be deemed to be an original record for all purposes, including introduction in evidence in all State and Federal courts or administrative agencies and shall be admissible to prove any act, transaction, occurrence, or event therein recorded. Such photographs, microphotographs, or reproduction shall be preserved in such manner as the Board of Directors of the Corporation shall prescribe and the original records, papers, or documents may be destroyed or otherwise disposed of as the Board shall direct. “Sec. 11. (a) The Temporary Federal Deposit Insurance Fund and Permanent insurance Fund. the Fund For Mutuals heretofore created pursuant to the provisions Ante, p. 873. of section 12B of the Federal Reserve Act, as amended, are hereby consolidated into a Permanent Insurance Fund for insuring deposits, and the assets therein shall be held by the Corporation for the uses and purposes of the Corporation: Provided, That the obligations to and rights of the Corporation, depositors, banks, and other persons arising out of any event or transaction prior to the effective date of this amendment shall remain unimpaired. On and after August 23, 1935, the Corporation shall insure the deposits of all insured banks as provided in this Act: Provided further, That the insurance shall apply only to deposits of insured banks which have been made available since March 10, 1933, for withdrawal in the usual course of the banking business: Provided further, That if any insured bank shall, without the consent of the Corporation, release or modify restrictions on or deferments of deposits which had not been made available for withdrawal in the usual course of the banking business on or before Maximum amount of insured deposit. August 23, 1935, such deposits shall not be insured. The maximum amount of the insured deposit of any depositor shall be $10,000: And provided further, That in the case of banks closing prior to the effective date of this amendment, the maximum amount of the insured deposit of any depositor shall be $5,000. “(b) For the purposes of this Act an insured bank shall be deemed Closed bank; inability to meet demands. to have been closed on account of inability to meet the demands of its depositors in any case in which it has been closed for the purpose of liquidation without adequate provision being made for payment of its depositors. “(c) Notwithstanding any other provision of law, whenever the Appointment of receiver. Comptroller of the Currency shall appoint a receiver other than a conservator of any insured national bank or insured District bank, or of any noninsured national bank or District bank hereafter closed, he shall appoint the Corporation receiver for such dosed bank. “(d) Notwithstanding any other provision of law, it shall be Duties of Corporation as receiver. the duty of the Corporation as such receiver to cause notice to be given, by advertisement in such newspapers as it may direct, to all persons having claims against such closed bank pursuant to section 5235 of the Revised Statutes (U. S. C., title 12, sec. 193); to realize upon the assets of such closed bank, having due regard to the condition of credit in the locality; to enforce the individual liability of the stockholders and directors thereof; and to wind up the affairs of such closed bank in conformity with the provisions of law relating to the liquidation of closed national banks, except as herein otherwise provided. The Corporation as such receiver shall pay to itself for its own account such portion of the amounts realized from such liquidation as it shall be entitled to receive on account of its subrogation to the claims of depositors, and it shall pay to depositors and other creditors the net amounts available for distribution to them. The Corporation as such receiver, however, may, in its discretion, pay dividends on proved claims at any time after the expiration of the period of advertisement made pursuant to the aforesaid section of the Revised Statutes, and no liability shall attach to the Corporation itself or as such receiver by reason of any such payment for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment. With respect to any Rights, powers, etc., as receiver. such closed bank, the Corporation as such receiver shall have all the rights, powers, and privileges now possessed by or hereafter granted by law to a receiver of a national bank or District bank and notwithstanding any other provision of law in the exercise of such rights, Sowers, and privileges the Corporation shall not be subject to the direction or supervision of the Secretary of the Treasury or the Comptroller of the Currency. “(e) Whenever any insured State bank (except a District bank) Receiver for closed State bank. shall have been closed by action of its board of directors or by the authority having supervision of such bank, as the case may be, on account of inability to meet the demands of its depositors, the Corporation shall accept appointment as receiver thereof, if such appointment is tendered by the authority having supervision of such bank and is authorized or permitted by State law. With respect to any such insured State bank, the Corporation as such receiver shall possess all the rights, powers and privileges granted by State law to a receiver of a State bank. “(f) Whenever an insured bank shall have been closed on account Payment of insured deposits. of inability to meet the demands of its depositors, payment of the insured deposits in such bank shall be made by the Corporation as soon as possible, subject to the provisions of subsection (g) of this section either (1) by cash or (2) by making available to each depositor a transferred deposit in a new bank in the same community or in another insured bank in an amount equal to the insured deposit of such depositor: Provided, That the Corporation, in its discretion, Proof of claims. may require proof of claims to be filed before paying the insured deposits, and that in any case where the Corporation is not satisfied as to the validity of a claim for an insured deposit, it may require the final determination of a court of competent jurisdiction before paying such claim. “(g) In the case of a closed national bank or District bank, the Closed national or District, bank, etc. Subrogation of depositor’s rights. Corporation, upon the payment to any depositor as provided in subsection (f) of this section, shall be subrogated to all rights of the depositor against the closed bank to the extent of such payment. In the case of any other closed insured bank, the Corporation shall not make any payment to any depositor until the right of the Corporation to be subrogated to the rights of such depositor on the same basis as provided in the case of a closed national bank under this Act shall nave been recognized either by express provision of State law, by allowance of claims by the authority having supervision of such bank, by assignment of claims by depositors, or by any other effective method. In the case of any closed insured bank, such subrogation shall include the right on the part of the Corporation to receive the same dividends from the proceeds of the assets of such closed bank and recoveries on account of stockholders’ liability as would have been payable to the depositor on a claim for the insured deposit, but such depositor shall retain his claim for any uninsured portion of his deposit: Provided, That, with respect to any bank which closes after Banks closing after May 25, 1938. Waiver of claim. May 25, 1938, the Corporation shall waive, in favor only of any person against whom stockholders’ individual liability may be asserted, any claim on account of such liability in excess of the liability, if any, to the bank or its creditors, for the amount unpaid upon his stock in such bank j but any such waiver shall be effected in such manner and on such terms and conditions as will not increase recoveries or dividends on account of claims to which the Corporation is not subrogated: Provided further, That the rights of depositors and other creditors of any State bank shall be determined in accordance with the applicable provisions of State law. “(h) As soon as possible after the closing of an insured bank, the Organization of new national bank. Corporation, if it finds that it is advisable and in the interest of the depositors of the closed bank or the public, shall organize a new national bank to assume the insured deposits of such closed bank and otherwise to perform temporarily the functions hereinafter provided for. The new bank shall have its place of business in the same community as the closed bank. “(i) The articles of association and the organization certificate of the new bank shall be executed by representatives designated by the Corporation. No capital stock need be paid in by the Corporation. The new bank shall not have a board of directors, but shall be managed by an executive officer appointed by the Board of Directors of the Corporation who shall be subject to its directions. In all other respects the new bank shall be organized in accordance with the then existing provisions of law relating to the organization of national Deposit limitation. banking associations. The new bank may, with the approval of the Corporation, accept new deposits which shall be subject to withdrawal on demand and which, except where the new bank is the only bank Insured status of new bank. in the community, shall not exceed $10,000 from any depositor. The new bank, without application to or approval by the Corporation, shall be an insured bank and shall maintain on deposit with the Federal Reserve bank of its district reserves in the amount required by law for member banks, but it shall not be required to subscribe for stock of the Federal Reserve bank. Funds of the new bank shall be kept on hand in cash, invested in obligations of the United States, or m obligations guaranteed as to principal and interest by the United States, or deposited with the Corporation, with a Federal Reserve bank, or, to the extent of the insurance coverage thereon, with an Restriction on transaction of business. insured bank. The new bank, unless otherwise authorized by the Comptroller of the Currency, shall transact no business except that authorized by this Act and as may be incidental to its organization. Tax exemption. Notwithstanding any other provision of law the new bank, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. “(j) Upon the organization of a new bank, the Corporation shall Availability of funds. promptly make available to it an amount equal to the estimated insured deposits of such closed bank plus the estimated amount of the expenses of operating the new bank, and shall determine as soon as possible the amount due each depositor for his insured deposit in the closed bank, and the total expenses of operation of the new bank. Upon such determination, the amounts so estimated and made available shall be Earnings. adjusted to conform to the amounts so determined. Earnings of the new bank shall be paid over or credited to the Corporation in such Additional funds for losses. adjustment. If any new bank, during the period it continues its status as such, sustains any losses with respect to which it is not effectively protected except by reason of being an insured bank, the Corporation shall furnish to it additional funds in the amount of such losses. The new bank shall assume as transferred deposits the payment of the Cash transfers. insured deposits of such closed bank to each of its depositors. Of the amounts so made available, the Corporation shall transfer to the new bank, in cash, such sums as may be necessary to enable it to meet its expenses of operation and immediate cash demands on such transferred deposits, and the remainder of such amounts shall be subject to withdrawal by the new bank on demand. “(k) Whenever in the judgment of the Board of Directors it is Capital stock. desirable to do so, the Corporation shall cause capital stock of the new bank to be offered for sale on such terns and conditions as the Board of Directors shall deem advisable in an amount sufficient, in the opinion of the Board of Directors, to make possible the conduct of the business of the new bank on a sound basis, but in no event less than that required by section 5138 of the Revised Statutes, as amended (U. S. C., title 12, sec. 51), for the organization of a national bank in the place where such new bank is located. The stockholders of the Purchase by stockholders of closed bank. closed insured bank shall be given the first opportunity to purchase any shares of common stock so offered. Upon proof that an adequate amount of capital stock in the new bank has been subscribed and paid for in cash, the Comptroller of the Currency shall require the articles of association and the organization certificate to be amended to conform to the requirements for the organization of a national bank, and thereafter, Issuance of certificate of authority. when the requirements of law with respect to the organization of a national bank have been complied with, he shall issue to the bank a certificate of authority to commence business, and thereupon the bank shall cease to have the status of a new bank, shall be managed by directors elected by its own shareholders and may exercise all the powers granted by law, and it shall be subject, to all the provisions of law relating to national banks. Such bank shall thereafter be an insured national bank, without certification to or approval by the Corporation. “(l) If the capital stock of the new bank is not offered for sale, Transfer of business. or if an adequate amount of capital for such new bank is not subscribed and paid for, the Board of Directors may offer to transfer its business to any insured bank in the same community which will take over its assets, assume its liabilities, and pay to the Corporation for such business such amount as the Board of Directors may deem adequate; or the Board of Directors in its discretion may change the location of the new bank to the office of the Corporation or to some other place or may at any time wind up its affairs as herein provided. Unless the capital stock of the new bank is sold or its assets are taken over and its liabilities are assumed by an insured bank as above Termination of new bank. provided within two years from the date of its organization, the Corporation shall wind up the affairs of such bank, after giving such notice, if any, as the Comptroller of the Currency may require, and shall certify to the Comptroller of the Currency the termination of the new bank. Thereafter the Corporation shall be liable for the Liability for obligations. obligations of such bank and shall be the owner of its assets. The provisions of sections 5220 and 5221 of the Revised Statutes (U. S. C., title 12, secs. 181 and 182) shall not apply to such new banks. “Sec. 12. (a) Notwithstanding any other provision of law, the Corporation as receiver. Corporation as receiver of a closed national bank or District bank shall not be required to furnish bond and shall have the right to appoint an agent or agents to assist it in its duties as such receiver, and all fees, compensation, and expenses of liquidation and administration thereof shall be fixed by the Corporation, and may be paid by it out. of funds coming into its possession as such receiver. “(b) Payment of an insured deposit to any person by the Corporation shall discharge the Corporation, and payment of a transferred deposit to any person by the new bank or by an insured bank in which a transferred deposit has been made available shall discharge the Corporation and such new bank or other insured bank, to the same extent that payment to such person by the closed bank would have discharged it from liability for the insured deposit. “(c) Except as otherwise prescribed by the Board of Directors, neither the Corporation nor such new bank or other insured bank shall be required to recognize as the owner of any portion of a deposit appearing on the records of the closed bank under a name other than that of the claimant, any person whose name or interest as such owner is not disclosed on the records of such closed bank as part owner of said deposit, if such recognition would increase the aggregate amount of the insured deposits in such closed bank. “(d) The Corporation may withhold payment of such portion of Withholding payment for liability. the insured deposit of any depositor in a closed bank as may be required to provide for the payment of any liability of such depositor as a stockholder of the closed bank, or of any liability of such depositor to the closed bank or its receiver, which is not offset against a claim due from such bank, pending the determination and payment of such liability by such depositor or any other person liable therefor. “(e) If, after the Corporation shall have given at least three months’ Barring of depositor’s rights, etc. notice to the depositor by mailing a copy thereof to his last-known address appearing on the records of the closed bank, any depositor in the closed bank shall fail to claim his insured deposit from the Corporation within eighteen months after the appointment of the receiver for the closed bank, or shall fail within such period to claim or arrange to continue the transferred deposit with the new bank or with the other insured bank which assumes liability therefor, all rights of the depositor against the Corporation with respect to the insured deposit, and against the new bank and such other insured bank with respect to the transferred deposit, shall be barred, and all rights of the depositor against the closed bank and its shareholders, or the receivership estate to which the Corporation may have become Refund of transferred deposits. subrogated, shall thereupon revert to the depositor. The amount of any transferred deposits not claimed within such eighteen months’ period, shall be refunded to the Corporation. “Sec. 13. (a) Money of the Corporation not otherwise employed Investment of funds. shall be invested in obligations of the United States or in obligations guaranteed as to principal and interest by the United States: Provided, That the Corporation shall not sell or purchase any such obligations for its own account and in its own right and interest, at any one time aggregating in excess of $100,000, without the approval of the Secretary of the Treasury: And provided further, That the Secretary of the Treasury may waive the requirement of his approval with respect to any transaction or classes of transactions subject to the provisions of this subsection for such period of time and under such conditions as he may determine. “(b) The banking or checking accounts of the Corporation shall be Banking or checking accounts. kept with the Treasurer of the United States, or, with the approval of the Secretary of the Treasury, with a Federal Reserve bank, or with a bank designated as a depositary or fiscal agent of the United States: Provided, That the Secretary of the Treasury may waive the requirements of this subsection under such conditions as he may determine: And provided further, That this subsection shall not apply to the establishment and maintenance in any bank for temporary purposes of banking and checking accounts not in excess of $50,000 in any one bank, or to the establishment and maintenance in any bank of any banking and checking accounts to facilitate the payment of insured deposits, or the making of loans to, or the purchase of assets of, Depositary of public moneys. insured banks. When designated for that purpose by the Secretary of the Treasury, the Corporation shall be a depositary of public moneys, except receipts from customs, under such regulations as may be prescribed by the said Secretary, and may also be employed as a financial agent of the Government. It shall perform all such reasonable duties as depositary of public moneys and financial agent of the Government as may be required of it. “(c) In order to reopen a closed insured bank or, when the Corporation Loans, etc. has determined that an insured bank is in danger of closing, in order to prevent such closing, the Corporation, in the discretion of its Board of Directors, is authorized to make loans to, or purchase the assets of, or make deposits in, such insured bank, upon such terms and conditions as the Board of Directors may prescribe, when in the opinion of the Board of Directors the continued operation of such bank is essential to provide adequate banking service in the community. Such loans and deposits may be in subordination to the rights of depositors and other creditors. “(d) Receivers or liquidators of insured banks closed on account of Offer of assets for sale to Corporation, etc. inability to meet the demands of their depositors shall be entitled to offer the assets of such banks for sale to the Corporation or as security for loans from the Corporation, upon receiving permission from the appropriate State authority in accordance with express provisions of State law in the case of insured State banks. The proceeds of every such sale or loan shall be utilized for the same purposes and in the same manner as other funds realized from the liquidation of the assets of such banks. In any ease where prior to the effective date of this amendment, Payment of dividends on proved claims. the Comptroller of the Currency has appointed a receiver of a closed national bank other than the Corporation, he may, in his discretion, pay dividends on proved claims at. any time after the expiration of the period of advertisement made pursuant to section 5235 of the Revised Statutes (U. S. C., title 12, sec. 193), and no liability shall attach to the Comptroller of the Currency or to the receiver of any such national bank by reason of any such payment for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment. The Corporation, in its discretion, may make loans on the security of or may purchase and liquidate or sell any part of the assets of an insured bank which is now or may hereafter be closed on account of inability to meet the demands of its depositors, but in any case in which the Corporation is acting as receiver of a closed insured bank, no such loan or purchase shall be made without the approval of a court of competent jurisdiction. “(e) Whenever in the judgment of the Board of Directors such Loans secured by assets. action will reduce the risk or avert a threatened loss to the Corporation and will facilitate a merger or consolidation of an insured bank with another insured bank, or will facilitate the sale of the assets of an open or closed insured bank to and assumption of its liabilities by another insured bank, the Corporation may, upon such terms and conditions as it may determine, make loans secured in whole or in part by assets of an open or closed insured bank, which loans may be in subordination to the rights of depositors and other creditors, or the Corporation may purchase any such assets or may guarantee any other insured bank against loss by reason of its assuming the liabilities and purchasing the assets of an open or closed insured bank. Any insured national bank or District bank, or the Corporation as receiver thereof, is authorized to contract for such sales or loans and to pledge any assets of the bank to secure such loans. “No agreement which tends to diminish or defeat the right, title Validity of agreement. or interest of the Corporation in any asset acquired by it under this section, either as security for a loan or by purchase, shall be valid against the Corporation unless such agreement (1) shall be in writing, (2) shall have been executed by the bank and the person or persons claiming an adverse interest thereunder, including the obligor, contemporaneously with the acquisition of the asset by the bank, (3) shall have been approved by the board of directors of the bank or its loan committee, which approval shall be reflected in the minutes of said board or committee, and (4) shall have been, continuously, from the time of its execution, an official record of the bank. “(f) Prior to July 1, 1951, the Corporation shall pay out of its Payment on advances. capital account to the Secretary of the Treasury an amount equal to 2 per centum simple interest per annum on amounts advanced to the Corporation on stock subscriptions by the Secretary of the Treasury and the Federal Reserve banks, from the time of such advances until the amounts thereof were repaid. The amount payable hereunder shall be paid in two equal installments, the first installment to be paid prior to December 31, 1950. “Sec. 14. The Corporation is authorized to borrow from the Funds required for insurance. Treasury, and the Secretary of the Treasury is authorized and directed to loan to the Corporation on such terms as may be fixed by the Corporation and the Secretary, such funds as in the judgment of the Board of Directors of the Corporation are from time to time required for insurance purposes, not exceeding in the aggregate Interest rate. $3,000,000,000 outstanding at any one time: Provided, That the rate of interest to be charged in connection with any loan made pursuant to this section shall not be less than the current average rate on outstanding marketable and nonmarketable obligations of the United States as of the last day of the month preceding the making of such loan. For such purpose the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds of the sale of any 40 Stat. 288. 31 U. S. C. § 774 (2); Sup. III, § 760 et seq. securities hereafter issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under the Second Liberty Bond Act, as amended, are extended to include such loans. Any such loan shall be used by the Corporation solely in carrying out its functions with respect to such insurance. AU loans and repayments under this section shall be treated as public-debt transactions of the United States. “Sec. 15. All notes, debentures, bonds, or other such obligations Tax exemption. issued by the Corporation shall be exempt, both as to principal and interest, from all taxation (except estate and inheritance taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or Exceptions. local taxing authority: Provided, That interest upon or any income from any such obligations and gain from the sale or other disposition of such obligations shall not have any exemption, as such, and loss from the sale or other disposition of such obligations shall not have any special treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The Corporation, including its franchise, its capital, reserves, and surplus, and its income, shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property of the Corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. “Sec. 16. In order that the Corporation may be supplied with such Forms of notes, etc. forms of notes, debentures, bonds, or other such obligations as it may need for issuance under this Act, the Secretary of the Treasury is authorized to prepare such forms as shall be suitable and approved by the Corporation, to be held in the Treasury subject to delivery, Custody of plates, etc. upon order of the Corporation. The engraved plates, dies, bed pieces, and other material executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The Corporation shall reimburse the Secretary of the Treasury for any expenses incurred in the preparation, custody, and delivery of such notes, debentures, bonds, or other such obligations. “Sec. 17. (a) The Corporation shall annually make a report of its Report to Congress. operations to the Congress as soon as practicable after the 1st day of January in each year. “(b) The financial transactions of the Corporation shall be audited Audit by General Accounting Office. by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where accounts of the Corporation are normally kept. The representatives of the General Accounting Office shall have access to all books, accounts, records, reports, files, and all other papers, things, or property belonging to or in use by the Corporation pertaining to its financial transactions and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. All such books, accounts, records, reports, files, papers, and property of the Corporation shall remain in possession and custody of the Corporation. The audit shall begin with financial transactions occurring on and after August 31, 1948. “(c) A report of the audit for each fiscal year ending on June 30 Audit report to Congress, etc. shall be made by the Comptroller General to the Congress not later than January 15 following the close of such fiscal year. On or Short form report. before December 15 following such fiscal year the Comptroller General shall furnish the Corporation a short form report showing the financial position of the Corporation at the close of the fiscal year. The report to the Congress shall set forth the scope of the audit and shall include a statement of assets and liabilities and surplus or deficit; a statement of surplus or deficit analysis; a statement of income and expenses; a statement of sources and application of funds and such comments and information as may be deemed necessary to inform Congress of the financial operations and condition of the Corporation, together with such recommendations with respect thereto as the Comptroller General may deem advisable. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law. A copy of each report shall be furnished to the President, to the Secretary of the Treasury, and to the Corporation at the time submitted to the Congress. “(d) For the purpose of conducting such audit the Comptroller Contracts for professional services. General is authorized in his discretion to employ by contract, without regard to section 3709 of the Revised Statutes, professional services 41 U. S. C., Sup. III, § 5. of firms and organizations of certified public accountants, with the concurrence of the Corporation, for temporary periods or for special purposes. The Corporation shall reimburse the General Accounting Reimbursement for cost of audit. Office for the cost of any such audit as billed therefor by the Comptroller General, and the General Accounting Office shall deposit the sums so reimbursed into the Treasury as miscellaneous receipts. “Sec. 18. (a) Every insured bank shall display at each place of Display of sign by insured banks. business maintained by it a sign or signs, and shall include a statement to the effect that its deposits are insured by the Corporation in all of its advertisements: Provided, That the Board of Directors may exempt from this requirement advertisements which do not relate to deposits or when it is impractical to include such statement therein. The Board of Directors shall prescribe by regulation the forms of such signs and the manner of display and the substance of such statements and the manner of use. For each day an insured Penalty. bank continues to violate any provisions of this subsection or any lawful provisions of said regulations, it shall be subject to a penalty of not more than $100, which the Corporation may recover for its use. “(b) No insured bank shall pay any dividends on its capital stock Payment of dividend s while in default, etc. or interest on its capital notes or debentures (if such interest is required to be paid only out of net profits) or distribute any of its capital assets while it remains in default in the payment of any assessment due to the Corporation: and any director or officer of any insured bank who participates in the declaration or payment of any such dividend or interest or in any such distribution shall, upon conviction, be fined not more than $1,000 or imprisoned not more than Nonapplicability. one year, or both: Provided, That, if such default is due to a dispute between the insured bank and the Corporation over the amount of such assessment, this subsection shall not apply, if such bank shall deposit security satisfactory to the Corporation for payment upon final determination of the issue. “(c) Without prior written consent by the Corporation, no insured Restrictions, bank shall (1) merge or consolidate with any noninsured bank or institution or convert into a noninsured bank or institution or (2) assume liability to pay any deposits made in, or similar liabilities of, any noninsured bank or institution or (3) transfer assets to any noninsured bank or institution in consideration of the assumption of liabilities for any portion of the deposits made in such insured bank. No insured bank shall convert into an insured State bank if its capital stock, or its surplus will be less than the capital stock or surplus, respectively, of the converting bank at the time of the shareholders’ meeting approving such conversion, without prior written consent by the Comptroller of the Currency if the resulting bank is to be a District bank, or by the Board of Governors of the Federal Reserve System if the resulting bank is to be a State member bank (except a District bank), or by the Corporation if the resulting bank is to be a State nonmember insured bank (except a District bank). No insured bank shall (i) merge or consolidate with an insured State bank under the charter of a State bank or (ii) assume liability to pay any deposits made in another insured bank, if the capital stock or surplus of the resulting or assuming bank will be less than the aggregate capital stock or aggregate surplus, respectively, of all the merging or consolidating banks or of all the parties to the assumption of liabilities, at the time of the shareholders’ meetings which authorized the merger or consolidation or at the time of the assumption of liabilities, unless the Comptroller of the Currency shall give prior written consent if the assuming bank is to be a national bank or the assuming or resulting bank is to be a District bank; or unless the Board of Governors of the Federal Reserve System gives prior written consent if the assuming or resulting bank is to be a State member bank (except a District bank),; or unless the Corporation gives prior written consent if the assuming or resulting bank is to be a nonmember insured bank (except a District bank). No insured State nonmember bank (except a District bank) shall, without the prior consent of the Corporation, reduce the amount or retire any part of its common or preferred capital stock, or retire any part of its capital notes or debentures. “(d) No State nonmember insured bank (except a District bank) shall establish and operate any new branch unless it shall have the prior written consent of the Corporation, and no State nonmember insured bank (except a District bank) shall move its main office or any branch from one location to another without such consent. The factors to be considered in granting or withholding the consent of the Corporation under this subsection shall be those enumerated in section 6 of this Act. “(e) The Corporation may require any insured bank to provide Ante, p. 876. Indemnity against burglary, etc. protection and indemnity against burglary, defalcation, and other similar insurable losses. Whenever any insured bank refuses to comply with any such requirement the Corporation may contract for such protection and indemnity and add the cost thereof to the assessment otherwise payable by such bank. “(f) Whenever any insured bank (except a national bank or a District Failure to comply with recommendations. bank), after written notice of the recommendations of the Corpo- ration based on a report of examination of such bank by an examiner of the Corporation, shall fail to comply with such recommendations within one hundred and twenty days after such notice, the Corporation shall have the power, and is hereby authorized, to publish only such part of such report of examination as relates to any recommendation not complied with: Provided, That notice of intention to make such Notice of intention to make publication. publication shall be given to the bank at least ninety days before such publication is made. “(g) The Board of Directors shall by regulation prohibit the payment. Certain Interest and dividend payments. Regulations. of interest on demand deposits in insured nonmember banks and for such purpose it may define the term ‘demand deposits’; but such exceptions from this prohibition shall be made as are now or may hereafter be prescribed with respect to deposits payable on demand in member banks by section 19 of the Federal Reserve 38 Stat. 270. 12 U. S. C. §§ 371a, 461. Time and savings deposits; regulations. Act, as amended, or by regulation of the Board of Governors of the Federal Reserve System. The Board of Directors shall from time to time limit by regulation the rates of interest or dividends which may be paid by insured nonmember banks on time and savings deposits, but such regulations shall be consistent with the contractual obligations of such banks to their depositors. For the purpose of fixing such rates of interest or dividends, the Board of Directors shall by regulation prescribe different rates for such payment on time and savings deposits having different maturities, or subject to different conditions respecting withdrawal or repayment, or subject to different conditions by reason of different locations, or according to the varying discount rates of member banks in the several Federal Reserve districts. The Board Regulation defining time and savings deposits. of Directors shall by regulation define what constitutes time and savings deposits in an insured nonmember bank. Such regulations shall prohibit any insured nonmember bank from paying any time deposit before its maturity except upon such conditions and in accordance with such rules and regulations as may be prescribed by the Board of Directors, and from waiving any requirement of notice before payment of any savings deposit except as to all savings deposits having the same requirement. For each violation of any provision Penalty. of this subsection or any lawful provision of such regulations relating to the payment of interest or dividends on deposits or to withdrawal of deposits, the offending bank shall be subject to a penalty of not more than $100, which the Corporation may recover for its use. “(h) Any insured bank which willfully fails or refuses to file any Failure to file certified statement, etc. certified statement or pay any assessment required under this Act shall be subject to a penalty of not more than $100 for each day that such violations continue, which penalty the Corporation may recover for its use: Provided, That this subsection shall not be applicable under the circumstances stated in the proviso of subsection (b) of this section. “Sec. 19. Except with the written consent of the Corporation, no Restriction on personnel. person shall serve as a director, officer, or employee of an insured bank who has been convicted, or who is hereafter convicted, of any criminal offense involving dishonesty or a breach of trust. For each willful violation of this prohibition, the bank involved shall be subject to a penalty of not more than $100 for each day this prohibition is violated, which the Corporation may recover for its use. “Sec. 20. It is not the purpose of this Act to discriminate in any Nondiscrimination. manner against State nonmember banks and in favor of national or member banks; but the purpose is to provide all banks with the same opportunity to obtain and enjoy the benefits of this Act. No bank shall be discriminated against because its capital stock is less than the amount required for eligibility for admission into the Federal Reserve System. “Sec. 21. The provisions of this Act limiting the insurance of the Separability provision. deposits of any depositor to a maximum less than the full amount shall be independent and separable from each and all of the provisions of this Act.”

2. 1978

   International Banking Act of 1978

   Pub. L. 95–369 § 6(c)(7) · 92 Stat. 607

   1. Amended · 12 U.S.C. § 1815

      Pub. L. 95–369 designated existing provision as subsec. (a)

   2. Added · 12 U.S.C. § 1815

      Pub. L. 95–369 added subsecs. (b) and (c)

   Source evidence

   Code amendment note
   Pub. L. 95–369 designated existing provision as subsec. (a) and added subsecs. (b) and (c).

   Enacted provision · exact public law section
   (7) Section 5 is amended (A) by changing “Sec. 5.” to read “Sec. 5. 12 USC 1815. (a)” and (B) by adding at the end thereof the following new subsections: “(b) Subject to the provisions of this Act and to such terms and conditions as the Board of Directors may impose, any branch of a foreign bank, upon application by the bank to the Corporation, and examination by the Corporation of the branch, and approval by the Board of Directors, may become an insured branch. Before approving any such application, the Board of Directors shall give consideration to— “(1) the financial history and condition of the bank, “(2) the adequacy of its capital structure, “(3) its future earnings prospects, “(4) the general character of its management, including but not limited to the management of the branch proposed to be insured, “(5) the convenience and needs of the community to be served by the branch, “(6) whether or not its corporate powers, insofar as they will be exercised through the proposed insured branch, are consistent with the purposes of this Act, and “(7) the probable adequacy and reliability of information supplied and to be supplied by the bank to the Corporation to enable it to carry out its functions under this Act.” “(c) (1) Before any branch of a foreign bank becomes an insured branch, the bank shall deliver to the Corporation or as the Corporation may direct a surety bond, a pledge of assets, or both, in such amounts and of such types as the Corporation may require or approve, for the purpose set forth in paragraph (4) of this subsection. “(2) After any branch of a foreign bank becomes an insured branch, Regulations. the bank shall maintain on deposit with the Corporation, or as the Corporation may direct, surety bonds or assets or both, in such amounts and of such types as shall be determined from time to time in accordance with such regulations as the Board of Directors may prescribe. Such regulations may impose differing requirements on the basis of any factors which in the judgment of the Board of Directors are reasonably related to the purpose set forth in paragraph (4). “(3) The Corporation may require of any given bank larger deposits of bonds and assets than required under paragraph (2) of this subsection if, in the judgment of the Corporation, the situation of that bank or any branch thereof is or becomes such that the deposits of bonds and assets otherwise required under this section would not adequately fulfill the purpose set forth in paragraph (4). The imposition of any such additional requirements may be without notice or opportunity for hearing, but the Corporation shall afford an opportunity to any such bank to apply for a reduction or removal of any such additional requirements so imposed. “(4) The purpose of the surety bonds and pledges of assets required under this subsection is to provide protection to the deposit insurance fund against the risks entailed in insuring the domestic deposits of a foreign bank whose activities, assets, and personnel are in large part outside the jurisdiction of the United States. In the implementation of its authority under this subsection, however, the Corporation shall endeavor to avoid imposing requirements on such banks which would unnecessarily place them at a competitive disadvantage in relation to domestically incorporated banks. “(5) In the case of any failure or threatened failure of a foreign Injunction. bank to comply with any requirement imposed under this subsection (c), the Corporation, in addition to all other administrative and judicial remedies, may apply to any United States district court, or United States court of any territory, within the jurisdiction of which any branch of the bank is located, for an injunction to compel such bank and any officer, employee, or agent thereof, or any other person having custody or control of any of its assets, to deliver to the Corporation such assets as may be necessary to meet such requirement, and to take any other action necessary to vest the Corporation with control of assets so delivered. If the court shall determine that there has been any such failure or threatened failure to comply with any such requirement, it shall be the duty of the court to issue such injunction. The propriety of the requirement may be litigated only as provided in chapter 7 of title 5 of the United States Code, and may not be made an issue in an action for an injunction under this paragraph.”.

3. 1982

   Garn-St Germain Depository Institutions Act of 1982

   Pub. L. 97–320 title VII § 703(c) · 96 Stat. 1469

   Inserted · 12 U.S.C. § 1815(a)

   Pub. L. 97–320 inserted provision relating to the determination before the application of an industrial bank or similar institution is approved that it is chartered and operating under provisions substantially comparable to those applicable to banks operating in the same State

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–320 inserted provision relating to the determination before the application of an industrial bank or similar institution is approved that it is chartered and operating under provisions substantially comparable to those applicable to banks operating in the same State.

   Enacted provision · exact public law section
   (c) Section 5(a) of such Act (12 U.S.C. 1815(a)) is amended by adding at the end thereof the following: “Before approving the application of any industrial bank or similar financial institution, the Board of Directors shall determine that it is chartered and operating under laws providing for examination, supervision, and liquidation substantially comparable to those applicable to banks operating in the same State.”.

4. 1989

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 § 201(a) · 103 Stat. 183

   Substituted · 12 U.S.C. § 1815

   Pub. L. 101–73, § 201(a), substituted references to insured depository institutions for references to insured banks wherever appearing

   Source evidence

   Code amendment note
   Pub. L. 101–73, § 201(a), substituted references to insured depository institutions for references to insured banks wherever appearing.

   Enacted provision · exact public law section
   (a) Amendments to References to Insured Bank.— (1) In general.— Except as provided in paragraph (2), the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by striking out “insured bank”, “insured banks”, and “insured bank’s” each place each term appears in such Act (except where any such term is preceded by “member” or “nonmember”) and inserting in lieu thereof “insured depository institution”, “insured depository institutions”, and “insured depository institution’s”, respectively. (2) Exceptions.— The terms “insured bank” and “insured banks” shall not be amended pursuant to paragraph (1) in sections 3(h), 11(h), ll(i), 13(c)(1)(B), 13(f), and 18(d) of the Federal Deposit Insurance Act.

5. 1989

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 § 206(a)(1) · 103 Stat. 183

   1. Inserted · 12 U.S.C. § 1815(a)

      Pub. L. 101–73, § 206(a)(1)–(4), inserted heading

   2. Amended · 12 U.S.C. § 1815(a)

      Pub. L. 101–73, § 206(a)(1)–(4), designated existing provisions as par. (1)

   3. Inserted · 12 U.S.C. § 1815(a)

      Pub. L. 101–73, § 206(a)(1)–(4), inserted par. (1) heading

   4. Substituted · 12 U.S.C. § 1815(a)

      Pub. L. 101–73, § 206(a)(1)–(4), substituted “Any” for “Subject to the provisions of this chapter, any”

   5. Inserted · 12 U.S.C. § 1815(a)

      Pub. L. 101–73, § 206(a)(1)–(4), inserted “and State savings association” after “any State nonmember bank” and after “such State nonmember bank”, “or savings association” after “such bank”, and “or savings association, and in the case of an application by a State savings association, the Corporation shall notify the Director of the Office of Thrift Supervision of the Corporation’s approval of such application” after “books of the bank”

   6. Added · 12 U.S.C. § 1815(a)

      Pub. L. 101–73, § 206(a)(1)–(4), added pars. (2) to (7)

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 101–73, § 206(a)(1)–(4), inserted heading, designated existing provisions as par. (1), inserted par. (1) heading, and substituted “Any” for “Subject to the provisions of this chapter, any”, inserted “and State savings association” after “any State nonmember bank” and after “such State nonmember bank”, “or savings association” after “such bank”, and “or savings association, and in the case of an application by a State savings association, the Corporation shall notify the Director of the Office of Thrift Supervision of the Corporation’s approval of such application” after “books of the bank”, and added pars. (2) to (7).

   Enacted provision · exact public law section
   (1) by striking out “(a) Subject to the provisions of this Act, any” and inserting in lieu thereof the following: “(a) Application for Insurance.— “(1) National and state nonmember banks; state savings associations.— Any”;

6. 1989

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 § 206(a)(5) · 103 Stat. 183

   Inserted · 12 U.S.C. § 1815(b)(4)

   Pub. L. 101–73, § 206(a)(5), inserted “and fitness” after “character”

   Source evidence

   Code amendment note
   Subsec. (b)(4). Pub. L. 101–73, § 206(a)(5), inserted “and fitness” after “character”.

   Enacted provision · exact public law section
   (5) in subsection (b)(4), by inserting “and fitness” after character;

7. 1989

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 § 206(a)(6) · 103 Stat. 183

   1. Added · 12 U.S.C. § 1815(b)(5)(8)

      Pub. L. 101–73, § 206(a)(6), added par. (5)

   2. Redesignated · 12 U.S.C. § 1815(b)(5)(8)

      Pub. L. 101–73, § 206(a)(6), redesignated former pars. (5) to (7) as (6) to (8), respectively

   Source evidence

   Code amendment note
   Subsec. (b)(5) to (8). Pub. L. 101–73, § 206(a)(6), added par. (5) and redesignated former pars. (5) to (7) as (6) to (8), respectively.

   Enacted provision · exact public law section
   (6) in subsection (b)— (A) by redesignating paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), respectively; and (B) by inserting after paragraph (4) the following: “(5) the risk presented to the Bank Insurance Fund or the Savings Association Insurance Fund;”; and

8. 1989

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 § 206(a)(7) · 103 Stat. 183

   Added · 12 U.S.C. § 1815(d); 12 U.S.C. § 1815(e)

   Pub. L. 101–73, § 206(a)(7), added subsecs. (d) and (e)

   Source evidence

   Code amendment note
   Subsecs. (d), (e). Pub. L. 101–73, § 206(a)(7), added subsecs. (d) and (e).

   Enacted provision · exact public law section
   (7) by adding at the end thereof the following new subsections: ‘(d) Insurance Fees.— “(1) Uninsured institutions.— “(A) In general.— Any institution that becomes insured by the Corporation, and any noninsured branch that becomes insured by the Corporation, shall pay the Corporation any fee which the Corporation may by regulation prescribe, after giving due consideration to the need to establish and maintain reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund as required by section 7. “(B) Fee credited to appropriate fund.— The fee paid by the depository institution shall be credited to the Bank Insurance Fund if the depository institution becomes a Bank Insurance Fund member, and to the Savings Association Insurance Fund if the depository institution becomes a Savings Association Insurance Fund member. “(C) Exception for certain depository institutions.— Any depository institution that becomes an insured deposi-tory institution by operation of section 4(a) shall not pay any fee. “(2) Conversions.— “(A) In general.— “(i) Prior approval required.— No insured depository institution may participate in a conversion transaction without the prior approval of the Corporation. “(ii) 5-year moratorium on conversions.— Except as provided in subparagraph (C), the Corporation may not approve any conversion transaction before the end of the 5-year period beginning on the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. “(B) Conversion defined.— For purposes of this paragraph, the term ‘conversion transaction’ means— “(i) the change of status of an insured depository institution from a Bank Insurance Fund member to a Savings Association Insurance Fund member or from a Savings Association Insurance Fund member to a Bank Insurance Fund member; “(ii) the merger or consolidation of a Bank Insurance Fund member with a Savings Association Insurance Fund member; “(iii) the assumption of any liability by— “(I) any Bank Insurance Fund member to pay any deposits of a Savings Association Insurance Fund member; or “(II) any Savings Association Insurance Fund member to pay any deposits of a Bank Insurance Fund member; “(iv) the transfer of assets of— “(I) any Bank Insurance Fund member to any Savings Association Insurance Fund member in consideration of the assumption of liabilities for any portion of the deposits of such Bank Insurance Fund member; or “(II) any Savings Association Insurance Fund member to any Bank Insurance Fund member in consideration of the assumption of liabilities for any portion of the deposits of such Savings Association Insurance Fund member. “(C) Approval during moratorium.— The Corporation may approve a conversion transaction at any time if— “(i) the conversion transaction affects an insubstantial portion, as determined by the Corporation, of the total deposits of each depository institution participating in the conversion transaction; “(ii) the conversion occurs in connection with the acquisition of a Savings Association Insurance Fund member in default or in danger of default, and the Corporation determines that the estimated financial benefits to the Savings Association Insurance Fund or Resolution Trust Corporation equal or exceed the Corporation’s estimate of loss of assessment income to such insurance fund over the remaining balance of the 5-year period referred to in subparagraph (A), and the Resolution Trust Corporation concurs in the Corporation’s determination; or “(iii) the conversion occurs in connection with the acquisition of a Bank Insurance Fund member in default or in danger of default and the Corporation determines that the estimated financial benefits to the Bank Insurance Fund equal or exceed the Corporation’s estimate of the loss of assessment income to the insurance fund over the remaining balance of the 5-year period referred to in subparagraph (A). “(D) Certain transfers deemed to affect insubstantial portion of total deposits.— For purposes of subparagraph (C)(i), any conversion transaction shall be deemed to affect an insubstantial portion of the total deposits of an insured depository institution, to the extent the aggregate amount of the total deposits transferred in such transaction and in all conversion transactions occurring after the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 does not exceed 35 percent of the lesser of— “(i) the amount which is equal to the sum of— “(I) the total deposits of such insured depository institution on May 1, 1989; and “(II) the total amount of net interest credited to the depository institution’s deposits during the period beginning on May 1, 1989, and ending on the date of the transfer of deposits in connection with such transaction; or “(ii) the amount which is equal to the total deposits of such insured depository institution on the date of the transfer of deposits in connection with such transaction. “(E) Exit and entrance fees.— Each insured depository institution participating in a conversion transaction shall pay— “(i) in the case of a conversion transaction in which the resulting or acquiring depository institution is not a Savings Association Insurance Fund member, an exit fee (in an amount to be determined and assessed in accordance with subparagraph (F)) which— “(I) shall be deposited in the Savings Association Insurance Fund; or “(II) shall be paid to the Financing Corporation, if the Secretary of the Treasury determines that the Financing Corporation has exhausted all other sources of funding for interest payments on the obligations of the Financing Corporation and orders that such fees be paid to the Financing Corporation; “(ii) in the case of a conversion transaction in which the resulting or acquiring depository institution is not a Bank Insurance Fund member, an exit fee in an amount to be determined by the Corporation (and assessed in accordance with subparagraph (F)(ii)) which shall be deposited in the Bank Insurance Fund; and “(iii) an entrance fee in an amount to be determined by the Corporation (and assessed in accordance with subparagraph (F)(ii)), except that— “(I) in the case of a conversion transaction in which the resulting or acquiring depository institution is a Bank Insurance Fund member, the fee shall be the approximate amount which the Corporation calculates as necessary to prevent dilution of the Bank Insurance Fund, and shall be paid to the Bank Insurance Fund; and “(II) in the case of a conversion transaction in which the resulting or acquiring depository institution is a Savings Association Insurance Fund member, the fee shall be the approximate amount which the Corporation calculates as necessary to prevent dilution of the Savings Association Insurance Fund, and shall be paid to the Savings Association Insurance Fund. “(F) Assessment of exit and entrance fees.— “(i) Determination of amount of exit fees.— “(I) Conversions before January i, 1997.— In the case of any exit fee assessed under subparagraph (E)(i) for any conversion transaction consummated before January 1, 1997, the amount of such fee shall be determined jointly by the Corporation and the Secretary of the Treasury. “(II) Assessments after December, 31, 1996.— In the case of any exit fee assessed under subparagraph (E)(i) for any conversion transaction consummated after December 31, 1996, the amount of such fee shall be determined by the Corporation. “(ii) Procedures.— The Corporation shall prescribe, Regulations. by regulation, procedures for assessing any exit or entrance fee under subparagraph (E). “(G) Charter conversion of saif members.— This subsection shall not be construed as prohibiting any savings association which is a Savings Association Insurance Fund member from converting to a bank charter during the period described in subparagraph (A)(ii) if the resulting bank remains a Savings Association Insurance Fund member. “(3) Optional conversion through merger.— “(A) In general.— Notwithstanding paragraph (2)(A), any bank holding company that controls any savings association may merge or consolidate the assets and liabilities of such savings association with, or transfer such assets and liabilities to, any subsidiary bank which is a Bank Insurance Fund member with the approval of the appropriate Federal banking agency and the Board of Governors of the Federal Reserve System. “(B) Assessments by saif on deposits attributable to former savings association.— That portion of the average assessment base of any subsidiary bank referred to in subparagraph (A) for any semiannual period which is equal to the adjusted attributable deposit amount (determined under subparagraph (C) with respect to the transaction described in subparagraph (A)) shall— “(i) be subject to assessment at the assessment rate applicable under section 7 for Savings Association Insurance Fund members; “(ii) shall not be taken into account for purposes of any assessment under section 7 for Bank Insurance Fund members; and “(iii) shall be treated as deposits which are insured by the Savings Association Insurance Fund. “(C) Determination of adjusted attributable deposit amount.— The adjusted attributable deposit amount which shall be taken into account by any bank subsidiary referred to in subparagraph (A) for purposes of determining the amount of the assessment under subparagraph (B)(i) for any semiannual period is the amount which is equal to the sum of— “(i) the amount of any deposits acquired by such bank subsidiary in connection with any transaction described in subparagraph (A) (as determined at the time of such transaction); “(ii) the total of the amounts determined under clause (iii) for semiannual periods preceding the semiannual period for which the determination is being made under this subparagraph; and “(iii) the amount by which the sum of the amounts described in clauses (i) and (ii) would have increased during the preceding semiannual period (other than any semiannual period beginning before the date of such transaction) if such increase occurred at a rate equal to the greater of— “(I) an annual rate of 7 percent; or “(II) the annual rate of growth of deposits of such subsidiary bank minus the amount of any deposits acquired through the acquisition, in whole or in part, of a Bank Insurance Fund member during such semiannual period. “(D) Deposit of assessment.— The amount of the assessment referred to in subparagraph (B)(i) shall be deposited in the Savings Association Insurance Fund. “(E) Conditions for federal reserve board approval.— The Board of Governors of the Federal Reserve System may not approve any application by any bank holding company to engage in any transaction described in subparagraph (A) unless such Board determines that— “(i) the amount which is equal to the aggregate amount of the total assets of all depository institution subsidiaries of such bank holding company is not less than the amount which is equal to 200 percent of the total assets of the savings association (at the time of the proposed transaction); “(ii) the bank holding company and all bank subsidiaries of such holding company will meet all applicable capital standards upon consummation of the proposed transaction; “(iii) the transaction is not in substance the acquisition of any Bank Insurance Fund member bank by any Savings Association Insurance Fund member; “(iv) in the case of any transaction which occurs— “(I) during the 1-year period beginning on the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the savings association had tangible capital of less than 4 percent during the preceding quarter; and “(II) during the 1-year period beginning after the end of the 1-year period referred to in subclause (1), the savings association had tangible capital of less than 5 percent during the preceding quarter; and “(v) the transaction would comply with the requirements of section 3(d) of the Bank Holding Company Act of 1956 if, at the time of such transaction, the savings association were a State bank which the bank holding company was applying to acquire. “(F) Allocation of costs in event of default.— If any subsidiary bank referred to in subparagraph (A) is in default or danger of default at any time before this paragraph ceases to apply, any loss incurred by the Corporation shall be allocated between the Bank Insurance Fund and the Savings Association Insurance Fund, in amounts reflecting the amount of insured deposits of such bank subsidiary (other than the adjusted attributable deposit amount) which is insured by the Bank Insurance Fund and the adjusted attributable deposit amount which is insured by the Savings Association Insurance Fund pursuant to subparagraph (B)(iii)- “(G) Subsequent approval of conversion transaction.— This paragraph shall cease to apply if— “(i) after the end of the 5-year period referred to in paragraph (2)(A), the Corporation approves an application by the bank described in subparagraph (A) to treat the transaction described in subparagraph (A) as a conversion transaction; and “(ii) such bank pays the amount of any exit and entrance fee assessed by the Corporation under paragraph (2)(E) with respect to such transaction. “(e) Liability of Commonly Controlled Depository Institutions.— “(1) In general.— “(A) Liability established.— Any insured depository institution shall be liable for any loss incurred by the Corporation, or any loss which the Corporation reasonably anticipates incurring, after the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 in connection with— “(i) the default of a commonly controlled insured depository institution; or “(ii) any assistance provided by the Corporation to any commonly controlled insured depository institution in danger of default. “(B) Payment upon notice.— An insured depository institution shall pay the amount of any liability to the Corporation under subparagraph (A) upon receipt of written notice by the Corporation in accordance with this subsection. “(C) Notice required to be provided within 2 years of loss.— No insured depository institution shall be liable to the Corporation under subparagraph (A) if written notice with respect to such liability is not received by such institution before the end of the 2-year period beginning on the date the Corporation incurred the loss. “(2) Amount of compensation; procedures.— “(A) Use of estimates.— When an insured depository institution is in default or requires assistance to prevent default, the Corporation shall— “(i) in good faith, estimate the amount of the loss the Corporation will incur from such default or assistance; “(ii) if, with respect to such insured depository institution, there is more than 1 commonly controlled insured depository institution, estimate the amount of each such commonly controlled depository institution’s share of such liability; and “(iii) advise each commonly controlled depository institution of the Corporation’s estimate of the amount of such institution’s liability for such losses. “(B) Procedures; immediate payment.— The Corporation, after consultation with the appropriate Federal banking agency and the appropriate State chartering agency, shall— “(i) on a case-by-case basis, establish the procedures and schedule under which any insured depository institution shall reimburse the Corporation for such institution’s liability under paragraph (1) in connection with any commonly controlled insured depository institution; or “(ii) require any insured depository institution to make immediate payment of the amount of such institution’s liability under paragraph (1) in connection with any commonly controlled insured depository institution. “(C) Priority.— The liability of any insured depository institution under this subsection shall have priority with respect to other obligations and liabilities as follows: “(i) Superiority.— The liability shall be superior to the following obligations and liabilities of the depository institution: “(I) Any obligation to shareholders arising as a result of their status as shareholders (including any depository institution holding company or any shareholder or creditor of such company). “(II) Any obligation or liability owed to any affiliate of the depository institution (including any other insured depository institution), other than any secured obligation which was secured as of May 1, 1989. “(ii) Subordination.— The liability shall be subordinate in right and payment to the following obligations and liabilities of the depository institution: “(I) Any deposit liability (which is not a liability described in clause (i)(II). “(II) Any secured obligation, other than any obligation owed to any affiliate of the depository institution (including any other insured depository institution) which was secured after May 1, 1989. “(III) Any other general or senior liability (which is not a liability described in clause (i)). “(IV) Any obligation subordinated to depositors or other general creditors (which is not an obligation described in clause (i)). “(D) Adjustment of estimated payment.— “(i) Overpayment.— If the amount of compensation estimated by and paid to the Corporation by 1 or more such commonly controlled depository institutions is greater than the actual loss incurred by the Corporation, the Corporation shall reimburse each such commonly controlled depository institution its pro rata share of any overpayment. “(ii) Underpayment.— If the amount of compensation estimated by and paid to the Corporation by 1 or more such commonly controlled depository institutions is less than the actual loss incurred by the Corporation, the Corporation shall redetermine in its discretion the liability of each such commonly controlled depository institution to the Corporation and shall require each such commonly controlled depository institution to make payment of any additional liability to the Corporation. “(3) Review.— “(A) Judicial.— Actions of the Corporation shall be reviewable pursuant to chapter 7 of title 5, United States Code. “(B) Administrative.— The Corporation shall prescribe Regulations. regulations and establish administrative procedures which provide for a hearing on the record for the review of— “(i) the amount of any loss incurred by the Corporation in connection with any insured depository institution; “(ii) the liability of individual commonly controlled depository institutions for the amount of such loss; and “(iii) the schedule of payments to be made by such commonly controlled depository institutions. “(4) Limitation on rights of private parties.— To the extent the exercise of any right or power of any person would impair the ability of any insured depository institution to perform such institution’s obligations under this subsection— “(i) the obligations of such insured depository institution shall supersede such right or power; and “(ii) no court may give effect to such right or power with respect to such insured depository institution. “(5) Waiver authority.— “(A) In general.— The Corporation, in its discretion, may exempt any insured depository institution from the provisions of this subsection if the Corporation determines that such exemption is in the best interests of the Bank Insurance Fund or the Savings Association Insurance Fund. “(B) Condition.— During the period any exemption granted to any insured depository institution under subparagraph (A) or (C) is in effect, such insured depository institution and all other insured depository institution affiliates of such depository institution shall comply fully with the restrictions of sections 23A and 23B of the Federal Reserve Act without regard to section 23A(d)(1). “(C) Limited partnerships.— “(i) In general.— The Corporation may, in its discretion, exempt any limited partnership and any affiliate of any limited partnership (other than any insured depository institution which is a majority owned subsidiary of such partnership) from the provisions of this subsection if such limited partnership or affiliate has filed a registration statement with the Securities and Exchange Commission on or before April 10, 1989, indicating that as of the date of such filing such partnership intended to acquire 1 or more insured depository institutions. “(ii) Review and notice.— Within 10 business days after the date of submission of any request for an exemption under this subparagraph together with such information as shall be reasonably requested by the Corporation, the Corporation shall make a determination on the request and shall so advise the applicant. “(6) 5-year transition rule.— During the 5-year period beginning on the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989— “(A) no Savings Association Insurance Fund member shall have any liability to the Corporation under this subsection arising out of assistance provided by the Corporation or any loss incurred by the Corporation as a result of the default of a Bank Insurance Fund member which was acquired by such Savings Association Insurance Fund member or any affiliate of such member before the date of the enactment of such Act; and “(B) no Bank Insurance Fund member shall have such liability with respect to assistance provided by or loss incurred by the Corporation as a result of the default of a Savings Association Insurance Fund member which was acquired by such Bank Insurance Fund member or any affiliate of such member before the date of the enactment of such Act. “(7) Exclusion for institutions acquired in debt collections.— Any depository institution shall not be treated as commonly controlled, for purposes of this subsection, during the 5-year period beginning on the date of an acquisition described in subparagraph (A) or such longer period as the Corporation may determine after written application by the acquirer, if— “(A) 1 depository institution controls another by virtue of ownership of voting shares acquired in securing or collecting a debt previously contracted in good faith; and “(B) during the period beginning on the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and ending upon the expiration of the exclusion, the controlling bank and all other insured depository institution affiliates of such controlling bank comply fully with the restrictions of sections 23A and 23B of the Federal Reserve Act, without regard to section 23A(d)(1) of such Act, in transactions with the acquired insured depository institution. “(8) Exception for certain fslic assisted institutions.— No depository institution shall have any liability to the Corporation under this subsection as the result of the default of, or assistance provided with respect to, an insured depository institution which is an affiliate of such depository institution if— “(A) such affiliate was receiving cash payments from the Federal Savings and Loan Insurance Corporation under an assistance agreement or note entered into before the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989; “(B) the Federal Savings and Loan Insurance Corporation, or such other entity which has succeeded to the payment obligations of such Corporation with respect to such assistance agreement or note, is unable to continue such payments; and “(C) such affiliate— “(i) is in default or in need of assistance solely as a result of the failure to meet the payment obligations referred to in subparagraph (B); and “(ii) is not otherwise in breach of the terms of any assistance agreement or note which would authorize the Federal Savings and Loan Insurance Corporation or such other successor entity, pursuant to the terms of such assistance agreement or note, to refuse to make such payments. “(9) Commonly controlled defined.— For purposes of this subsection, depository institutions are commonly controlled if— “(A) such institutions are controlled by the same depository institution holding company (including any company required to file reports pursuant to section 4(f)(6) of the Bank Holding Company Act of 1956); or “(B) 1 depository institution is controlled by another depository institution.”.

9. 1991

   Federal Deposit Insurance Corporation Improvement Act of 1991

   Pub. L. 102–242 § 115(a) · 105 Stat. 2236

   Amended · 12 U.S.C. § 1815

   Pub. L. 102–242, § 115(a), amended section catchline

   Source evidence

   Code amendment note
   Pub. L. 102–242, § 115(a), amended section catchline.

   Enacted provision · exact public law section
   (a) In General.— Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815(a)) is amended by striking all that precedes subsection (b) and inserting the following: “SEC. 5. DEPOSIT INSURANCE. “(a) Application to Corporation Required.— “(1) In general.— Except as provided in paragraphs (2) and (3), any depository institution which is engaged in the business of receiving deposits other than trust funds (as defined in section 3(p)), upon application to and examination by the Corporation and approval by the Board of Directors, may become an insured depository institution. “(2) Interim depository institutions.— In the case of any interim Federal depository institution that is chartered by the appropriate Federal banking agency and will not open for business, the depository institution shall be an insured depository institution upon the issuance of the institution’s charter by the agency. “(3) Application and approval not required in cases of continued insurance.— Paragraph (1) shall not apply in the case of any depository institution whose insured status is continued pursuant to section 4. “(4) Review requirements.— In reviewing any application under this subsection, the Board of Directors shall consider the factors described in section 6 in determining whether to approve the application for insurance. “(5) Notice of denial of application for insurance.— If the Board of Directors votes to deny any application for insurance by any depository institution, the Board of Directors shall promptly notify the appropriate Federal banking agency and, in the case of any State depository institution, the appropriate State banking supervisor of the denial of such application, giving specific reasons in writing for the Board of Directors’ determination with reference to the factors described in section 6. “(6) Nondelegation requirement.— The authority of the Board of Directors to make any determination to deny any application under this subsection may not be delegated by the Board of Directors.”.

10. 1991

    Federal Deposit Insurance Corporation Improvement Act of 1991

    Pub. L. 102–242 § 115(a) · 105 Stat. 2236

    1. Added · 12 U.S.C. § 1815(a)

       Pub. L. 102–242, § 115(a), added subsec. (a) consisting of pars. (1) to (6)

    2. Struck · 12 U.S.C. § 1815(a)

       Pub. L. 102–242, § 115(a), struck out former subsec. (a) relating to application for insurance, which consisted of pars. (1) to (7)

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 102–242, § 115(a), added subsec. (a) consisting of pars. (1) to (6) and struck out former subsec. (a) relating to application for insurance, which consisted of pars. (1) to (7).

    Enacted provision · exact public law section
    (a) In General.— Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815(a)) is amended by striking all that precedes subsection (b) and inserting the following: “SEC. 5. DEPOSIT INSURANCE. “(a) Application to Corporation Required.— “(1) In general.— Except as provided in paragraphs (2) and (3), any depository institution which is engaged in the business of receiving deposits other than trust funds (as defined in section 3(p)), upon application to and examination by the Corporation and approval by the Board of Directors, may become an insured depository institution. “(2) Interim depository institutions.— In the case of any interim Federal depository institution that is chartered by the appropriate Federal banking agency and will not open for business, the depository institution shall be an insured depository institution upon the issuance of the institution’s charter by the agency. “(3) Application and approval not required in cases of continued insurance.— Paragraph (1) shall not apply in the case of any depository institution whose insured status is continued pursuant to section 4. “(4) Review requirements.— In reviewing any application under this subsection, the Board of Directors shall consider the factors described in section 6 in determining whether to approve the application for insurance. “(5) Notice of denial of application for insurance.— If the Board of Directors votes to deny any application for insurance by any depository institution, the Board of Directors shall promptly notify the appropriate Federal banking agency and, in the case of any State depository institution, the appropriate State banking supervisor of the denial of such application, giving specific reasons in writing for the Board of Directors’ determination with reference to the factors described in section 6. “(6) Nondelegation requirement.— The authority of the Board of Directors to make any determination to deny any application under this subsection may not be delegated by the Board of Directors.”.

11. 1991

    Federal Deposit Insurance Corporation Improvement Act of 1991

    Pub. L. 102–242 § 501(a) · 105 Stat. 2236

    1. Amended · 12 U.S.C. § 1815(d)(3)

       Pub. L. 102–242, § 501(a), amended par. (3) generally

    2. Substituted · 12 U.S.C. § 1815(d)(3)

       Pub. L. 102–242, § 501(a), substituting present provisions consisting of subpars. (A) to (J) for provisions related to optional conversion through merger, which consisted of subpars. (A) to (G)

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 102–242, § 501(a), amended par. (3) generally, substituting present provisions consisting of subpars. (A) to (J) for provisions related to optional conversion through merger, which consisted of subpars. (A) to (G).

    Enacted provision · exact public law section
    (a) In General.— Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended to read as follows: “(3) Optional conversions subject to special rules on deposit insurance payments.— “(A) Conversions allowed.— “(i) In general.— Notwithstanding paragraph (2)(A) and subject to the requirements of this paragraph, any insured depository institution may participate in a transaction described in clause (ii), (iii), or (iv) of paragraph (2)(B) with the prior written approval of the responsible agency under section 18(c)(2). “(ii) Holding company subsidiaries.— If, in connection with any transaction referred to in clause (i), the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company, the prior written approval of the Board shall be required for such transaction in addition to the approval of any agency referred to in clause (i). “(B) Assessments on deposits attributable to former depository institution.— “(i) Assessments by saif.— In the case of any acquiring, assuming, or resulting depository institution which is a Bank Insurance Fund member, that portion of the average assessment base of such member for any semiannual period which is equal to the adjusted attributable deposit amount (determined under subparagraph (C) with respect to the transaction) shall— “(I) be subject to assessment at the assessment rate applicable under section 7 for Savings Association Insurance Fund members; “(II) not be taken into account for purposes of any assessment under section 7 for Bank Insurance Fund members; and “(III) be treated as deposits which are insured by the Savings Association Insurance Fund. “(ii) Assessments by bif.— In the case of any acquiring, assuming, or resulting depository institution which is a Savings Association Insurance Fund member, that portion of the average assessment base of such member for any semiannual period which is equal to the adjusted attributable deposit amount (determined under subparagraph (C) with respect to the transaction) shall— “(I) be subject to assessment at the assessment rate applicable under section 7 for Bank Insurance Fund members; “(II) not be taken into account for purposes of any assessment under section 7 for Savings Association Insurance Fund members; and “(III) be treated as deposits which are insured by the Bank Insurance Fund. “(C) Determination of adjusted attributable deposit amount.— The adjusted attributable deposit amount which shall be taken into account for purposes of determining the amount of the assessment under subparagraph (B) for any semiannual period by any acquiring, assuming, or resulting depository institution in connection with a transaction under subparagraph (A) is the amount which is equal to the sum of— “(i) the amount of any deposits acquired by the institution in connection with the transaction (as determined at the time of such transaction); “(ii) the total of the amounts determined under clause (iii) for semiannual periods preceding the semi-annual period for which the determination is being made under this subparagraph; and “(iii) the amount by which the sum of the amounts described in clauses (i) and (ii) would have increased during the preceding semiannual period (other than any semiannual period beginning before the date of such transaction) if such increase occurred at a rate equal to the annual rate of growth of deposits of the acquiring, assuming, or resulting depository institution minus the amount of any deposits acquired through the acquisition, in whole or in part, of another insured depository institution. “(D) Deposit of assessment.— That portion of any assessment under section 7 which— “(i) is determined in accordance with subparagraph (B)(i) shall be deposited in the Savings Association Insurance Fund; and “(ii) is determined in accordance with subparagraph (B)(ii) shall be deposited in the Bank Insurance Fund. “(E) Conditions for approval, generally.— “(i) Factors to be considered; approval process.— In reviewing any application for a proposed transaction under subparagraph (A), the responsible agency (and, in the event the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company, the Board) shall follow the procedures and consider the factors set forth in section 18(c). “(ii) Information required.— An application to engage in any transaction under this paragraph shall contain such information relating to the factors to be considered for approval as the responsible agency or Board may require, by regulation or by specific request, in connection with any particular application. “(iii) No transfer of deposit insurance permitted.— This paragraph shall not be construed as authorizing transactions which result in the transfer of any insured depository institution’s Federal deposit insurance from 1 Federal deposit insurance fund to the other Federal deposit insurance fund. “(iv) Minimum capital.— The responsible agency, and the appropriate Federal banking agency for any depository institution holding company, shall disapprove any application for any transaction under this paragraph unless each such agency determines that the acquiring, assuming, or resulting depository institution, and any depository institution holding company which controls such institution, will meet all applicable capital requirements upon consummation of the transaction. “(F) Certain interstate transactions.— The Board may not approve any transaction under subparagraph (A) in which the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company unless the Board determines that the transaction would comply with the requirements of section 3(d) of the Bank Holding Company Act of 1956 if, at the time of such transaction, the Savings Association Insurance Fund member involved in such transaction was a State bank that the bank holding company was applying to acquire. “(G) Expedited approval of acquisitions.— “(i) In general.— Any application by a State nonmember insured bank to acquire another insured depository institution that is required to be filed with the Corporation by subparagraph (A) or any other applicable law or regulation shall be approved or disapproved in writing by the Corporation before the end of the 60-day period beginning on the date such application is filed with the Corporation. “(ii) Extensions of period.— The period for approval or disapproval referred to in clause (i) may be extended for an additional 30-day period if the Corporation determines that— “(I) an applicant has not furnished all of the information required to be submitted; or “(II) in the Corporation’s judgment, any material information submitted is substantially inaccurate or incomplete. “(H) Allocation of costs in event of default.— If any acquiring, assuming, or resulting depository institution is in default or danger of default at any time before this paragraph ceases to apply, any loss incurred by the Corporation shall be allocated between the Bank Insurance Fund and the Savings Association Insurance Fund, in amounts reflecting the amount of insured deposits of such acquiring, assuming, or resulting depository institution assessed by the Bank Insurance Fund and the Savings Association Insurance Fund, respectively, under subparagraph (B). “(I) Subsequent approval of conversion transaction.— This paragraph shall cease to apply if— “(i) after the end of the 5-year period referred to in paragraph (2)(A), the Corporation approves an application by any acquiring, assuming, or resulting depository institution to treat the transaction described in subparagraph (A) as a conversion transaction; and “(ii) the acquiring, assuming, or resulting depository institution pays the amount of any exit and entrance fee assessed by the Corporation under subparagraph (E) of paragraph (2) with respect to such transaction. “(J) Acquiring, assuming, or resulting depository institution defined.— For purposes of this paragraph, the term ‘acquiring, assuming, or resulting depository institution’ means any insured depository institution which— “(i) results from any transaction described in paragraph (2)(B)(ii) and approved under this paragraph; “(ii) in connection with a transaction described in paragraph (2)(B)(iii) and approved under this paragraph, assumes any liability to pay deposits of another insured depository institution; or “(iii) in connection with a transaction described in paragraph (2)(B)(iv) and approved under this paragraph, acquires assets from any insured depository institution in consideration of the assumption of liability for any deposits of such institution.”.

12. 1991

    Federal Deposit Insurance Corporation Improvement Act of 1991

    Pub. L. 102–242 § 302(e)(1) · 105 Stat. 2236

    1. Amended · 12 U.S.C. § 1815(d)(3)(B)(i)

       Pub. L. 102–242, § 302(e)(1), as amended by Pub. L. 102–558, § 303(b)(6)(B)

    2. Substituted · 12 U.S.C. § 1815(d)(3)(B)(i)

       Pub. L. 102–242, § 302(e)(1), as substituted “deposits” for “average assessment base” and “shall be treated as deposits which are insured by the Savings Association Insurance Fund.” for “shall—

    Source evidence

    Code amendment note
    Subsec. (d)(3)(B)(i). Pub. L. 102–242, § 302(e)(1), as amended by Pub. L. 102–558, § 303(b)(6)(B), substituted “deposits” for “average assessment base” and “shall be treated as deposits which are insured by the Savings Association Insurance Fund.” for “shall—

    “(I) be subject to assessment at the assessment rate applicable under section 1817 of this title for Savings Association Insurance Fund members; “(II) not be taken into account for purposes of any assessment under section 1817 of this title for Bank Insurance Fund members; and “(III) be treated as deposits which are insured by the Savings Association Insurance Fund.”

    Enacted provision · exact public law section
    (1) in section 5(d)(3)(B)— 12 USC 1815. (A) by striking “average assessment base” and inserting “deposits”; and (B) by striking “shall—” and all that follows through “(iii) shall be treated” and inserting “shall be treated”;

13. 1991

    Federal Deposit Insurance Corporation Improvement Act of 1991

    Pub. L. 102–242 § 302(e)(2) · 105 Stat. 2236

    1. Added · 12 U.S.C. § 1815(d)(3)(B)(ii)

       Pub. L. 102–242, § 302(e)(2), as added by Pub. L. 102–558, § 303(b)(6)(B)

    2. Substituted · 12 U.S.C. § 1815(d)(3)(B)(ii)

       Pub. L. 102–242, § 302(e)(2), as substituted “deposits” for “average assessment base” and “shall be treated as deposits which are insured by the Bank Insurance Fund.” for “shall—

    Source evidence

    Code amendment note
    Subsec. (d)(3)(B)(ii). Pub. L. 102–242, § 302(e)(2), as added by Pub. L. 102–558, § 303(b)(6)(B), substituted “deposits” for “average assessment base” and “shall be treated as deposits which are insured by the Bank Insurance Fund.” for “shall—

    “(I) be subject to assessment at the assessment rate applicable under section 1817 of this title for Bank Insurance Fund members; “(II) not be taken into account for purposes of any assessment under section 1817 of this title for Savings Association Insurance Fund members; and “(III) be treated as deposits which are insured by the Bank Insurance Fund.”

    Enacted provision · exact public law section
    (2) in section 7(a)(5) by striking “and for the computation of 12 USC 1817. assessments provided in subsection (b) of this section”,

14. 1992

    Defense Production Act Amendments of 1992

    Pub. L. 102–558 § 303(b)(6)(B) · 106 Stat. 4198

    Repealed · 12 U.S.C. § 1815(d)(3)(B)

    Pub. L. 102–558, § 303(b)(6)(B), amended directory language of Pub. L. 102–242, § 302(e). See 1991 amendment note below. Pub. L. 102–550, § 1605(a)(5)(B), which contained an identical amendment, was repealed, effective Oct. 28, 1992, by Pub. L. 102–558, § 305, set out as a Repeal of Duplicative Provisions note below

    Source evidence

    Code amendment note
    Subsec. (d)(3)(B). Pub. L. 102–558, § 303(b)(6)(B), amended directory language of Pub. L. 102–242, § 302(e). See 1991 amendment note below. Pub. L. 102–550, § 1605(a)(5)(B), which contained an identical amendment, was repealed, effective Oct. 28, 1992, by Pub. L. 102–558, § 305, set out as a Repeal of Duplicative Provisions note below.

    Enacted provision · exact public law section
    (B) by striking paragraph (1) and inserting the following 12 USC 1815. new paragraphs: “(1) in section 5(d)(3)(B)(i)— “(A) by striking ‘average assessment base’ and inserting ‘deposits’; and “(B) by striking ‘shall—’and all that follows through the period and inserting ‘shall be treated as deposits which are insured by the Savings Association Insurance Fund.’; “(2) in section 5(d)(3)(B)(ii)— “(A) by striking ‘average assessment base’ and inserting ‘deposits’; and “(B) by striking ‘shall—’and all that follows through the period and inserting ‘shall be treated as deposits which are insured by the Bank Insurance Fund.’”.

15. 1992

    Housing and Community Development Act of 1992

    Pub. L. 102–550 § 1607(a) · 106 Stat. 3672

    Added · 12 U.S.C. § 1815(d)(3)(K)

    Pub. L. 102–550, § 1607(a), added subpar. (K)

    Source evidence

    Code amendment note
    Subsec. (d)(3)(K). Pub. L. 102–550, § 1607(a), added subpar. (K).

    Enacted provision · exact public law section
    (a) Amendment Relating to Section 501.— Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) (as amended by section 501(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended by adding at the end the following new subparagraph: “(K) Board defined.— For purposes of this paragraph, the term ‘Board’ (other than when such term appears in connection with a reference to the Board of Directors) means the Board of Governors of the Federal Reserve System.”.

16. 1993

    Pub. L. 103–204 § 9(a) · 107 Stat. 2369

    1. Substituted · 12 U.S.C. § 1815(d)(2)(A)(ii)

       Pub. L. 103–204, § 9(a), substituted “before the later of the end” for “before the end”

    2. Inserted · 12 U.S.C. § 1815(d)(2)(A)(ii)

       Pub. L. 103–204, § 9(a), inserted before period at end “or the date on which the Savings Association Insurance Fund first meets or exceeds the designated reserve ratio for such fund”

    Source evidence

    Code amendment note
    Subsec. (d)(2)(A)(ii). Pub. L. 103–204, § 9(a), substituted “before the later of the end” for “before the end” and inserted before period at end “or the date on which the Savings Association Insurance Fund first meets or exceeds the designated reserve ratio for such fund”.

    Enacted provision · exact public law section
    (a) Conversion Moratorium Until SAIF Recapitalized.— Section 5(d)(2)(A)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(2)(A)(ii)) is amended— (1) by striking “before the end” and inserting “before the later of the end”; and (2) by inserting “or the date on which the Savings Association Insurance Fund first meets or exceeds the designated reserve ratio for such fund” before the period.

17. 1993

    Pub. L. 103–204 § 9(b) · 107 Stat. 2369

    Added · 12 U.S.C. § 1815(d)(2)(B)(v)

    Pub. L. 103–204, § 9(b), added cl. (v)

    Source evidence

    Code amendment note
    Subsec. (d)(2)(B)(v). Pub. L. 103–204, § 9(b), added cl. (v).

    Enacted provision · exact public law section
    (b) Clarification of Definition.— Section 5(d)(2)(B) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(2)(B)) is amended— (1) by striking the period at the end of clause (iv) and inserting “; and”; and (2) by adding at the end the following: “(v) the transfer of deposits— “(I) from a Bank Insurance Fund member to a Savings Association Insurance Fund member; or “(II) from a Savings Association Insurance Fund member to a Bank Insurance Fund member; in a transaction in which the deposit is received from a depositor at an insured depository institution for which a receiver has been appointed and the receiving insured depository institution is acting as agent for the Corporation in connection with the payment of such deposit to the depositor at the institution for which a receiver has been appointed.”.

18. 1993

    Pub. L. 103–204 § 9(c) · 107 Stat. 2369

    Substituted · 12 U.S.C. § 1815(d)(2)(C)(ii); 12 U.S.C. § 1815(d)(2)(C)(iii); 12 U.S.C. § 1815(d)(3)(I)(i)

    Pub. L. 103–204, § 9(c), substituted “moratorium period established by” for “5-year period referred to in”

    Source evidence

    Code amendment note
    Subsec. (d)(2)(C)(ii), (iii), (3)(I)(i). Pub. L. 103–204, § 9(c), substituted “moratorium period established by” for “5-year period referred to in”.

    Enacted provision · exact public law section
    (c) Technical and Conforming Amendments.— Section 5(d) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)) is amended— (1) in clauses (ii) and (iii) of paragraph (2)(C); and (2) in paragraph (3)(I)(i); by striking “5-year period referred to in” and inserting “moratorium period established by”.

19. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 602(a)(2) · 108 Stat. 2160

    Substituted · 12 U.S.C. § 1815(b)(5)

    Pub. L. 103–325, § 602(a)(2), substituted comma for semicolon at end

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 103–325, § 602(a)(2), substituted comma for semicolon at end.

    Enacted provision · exact public law section
    (2) in section 5(b)(5), by striking the semicolon at the end and inserting a comma;

20. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 319(b)(1) · 108 Stat. 2160

    1. Redesignated · 12 U.S.C. § 1815(d)(3)(A)

       Pub. L. 103–325, § 319(b)(1), redesignated cl. (i) formerly entitled “In general” as subpar. (A)

    2. Inserted · 12 U.S.C. § 1815(d)(3)(A)

       Pub. L. 103–325, § 319(b)(1), inserted comma after “Notwithstanding paragraph (2)(A)”

    3. Struck · 12 U.S.C. § 1815(d)(3)(A)

       Pub. L. 103–325, § 319(b)(1), struck out heading and text of cl. (ii). Text read as follows: “If, in connection with any transaction referred to in clause (i), the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company, the prior written approval of the Board shall be required for such transaction in addition to the approval of any agency referred to in clause (i).”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(A). Pub. L. 103–325, § 319(b)(1), redesignated cl. (i) formerly entitled “In general” as subpar. (A), inserted comma after “Notwithstanding paragraph (2)(A)”, and struck out heading and text of cl. (ii). Text read as follows: “If, in connection with any transaction referred to in clause (i), the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company, the prior written approval of the Board shall be required for such transaction in addition to the approval of any agency referred to in clause (i).”

    Enacted provision · exact public law section
    (1) by striking subparagraph (A) and inserting the following: “(A) Conversions allowed.— Notwithstanding paragraph (2)(A), and subject to the requirements of this paragraph, any insured depository institution may participate in a transaction described in clause (ii), (iii), or (iv) of paragraph (2)(B) with the prior written approval of the responsible agency under section 18(c)(2).”;

21. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 319(b)(2)(A) · 108 Stat. 2160

    Struck · 12 U.S.C. § 1815(d)(3)(E)(i)

    Pub. L. 103–325, § 319(b)(2)(A), struck out “(and, in the event the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company, the Board)” after “responsible agency”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(E)(i). Pub. L. 103–325, § 319(b)(2)(A), struck out “(and, in the event the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company, the Board)” after “responsible agency”.

    Enacted provision · exact public law section
    (A) in clause (i), by striking “(and, in the event the acquiring, assuming, or resulting depository institution is a Bank Insurance Fund member which is a subsidiary of a bank holding company, the Board)”;

22. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 319(b)(2)(B) · 108 Stat. 2160

    Struck · 12 U.S.C. § 1815(d)(3)(E)(ii)

    Pub. L. 103–325, § 319(b)(2)(B), struck out “or Board” after “responsible agency”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(E)(ii). Pub. L. 103–325, § 319(b)(2)(B), struck out “or Board” after “responsible agency”.

    Enacted provision · exact public law section
    (B) in clause (ii), by striking “or Board”; and

23. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 319(b)(2)(C) · 108 Stat. 2160

    Struck · 12 U.S.C. § 1815(d)(3)(E)(iv)

    Pub. L. 103–325, § 319(b)(2)(C), struck out “, and the appropriate Federal banking agency for any depository institution holding company,” after “responsible agency”, “each” before “such agency determines”, and “, and any depository institution holding company which controls such institution,” after “resulting depository institution”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(E)(iv). Pub. L. 103–325, § 319(b)(2)(C), struck out “, and the appropriate Federal banking agency for any depository institution holding company,” after “responsible agency”, “each” before “such agency determines”, and “, and any depository institution holding company which controls such institution,” after “resulting depository institution”.

    Enacted provision · exact public law section
    (C) in clause (iv)— (i) by striking “, and the appropriate Federal banking agency for any depository institution holding company,”; (ii) by striking “each”; and (iii) by striking “, and any depository institution holding company which controls such institution,”;

24. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 319(b)(3) · 108 Stat. 2160

    1. Substituted · 12 U.S.C. § 1815(d)(3)(F)

       Pub. L. 103–325, § 319(b)(3), substituted “A Bank” for “The Board may not approve any transaction under subparagraph (A) in which the acquiring, assuming, or resulting depository institution is a Bank”

    2. Substituted · 12 U.S.C. § 1815(d)(3)(F)

       Pub. L. 103–325, § 319(b)(3), substituted “may not be the acquiring, assuming, or resulting depository institution in a transaction under subparagraph (A) unless” for “unless the Board determines that”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(F). Pub. L. 103–325, § 319(b)(3), substituted “A Bank” for “The Board may not approve any transaction under subparagraph (A) in which the acquiring, assuming, or resulting depository institution is a Bank” and “may not be the acquiring, assuming, or resulting depository institution in a transaction under subparagraph (A) unless” for “unless the Board determines that”.

    Enacted provision · exact public law section
    (3) in subparagraph (F)— (A) by striking “The Board” and all that follows through “a Bank” and inserting “A Bank”; and (B) by striking “unless the Board determines that” and inserting “may not be the acquiring, assuming, or resulting depository institution in a transaction under subparagraph (A) unless”; and

25. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 319(b)(4) · 108 Stat. 2160

    Struck · 12 U.S.C. § 1815(d)(3)(K)

    Pub. L. 103–325, § 319(b)(4), struck out heading and text of subpar. (K). Text read as follows: “For purposes of this paragraph, the term ‘Board’ (other than when such term appears in connection with a reference to the Board of Directors) means the Board of Governors of the Federal Reserve System.”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(K). Pub. L. 103–325, § 319(b)(4), struck out heading and text of subpar. (K). Text read as follows: “For purposes of this paragraph, the term ‘Board’ (other than when such term appears in connection with a reference to the Board of Directors) means the Board of Governors of the Federal Reserve System.”

    Enacted provision · exact public law section
    (4) by striking subparagraph (K).

26. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 § 602(a)(3) · 108 Stat. 2160

    Redesignated · 12 U.S.C. § 1815(e)(4)

    Pub. L. 103–325, § 602(a)(3), redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively, and realigned margins

    Source evidence

    Code amendment note
    Subsec. (e)(4). Pub. L. 103–325, § 602(a)(3), redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively, and realigned margins.

    Enacted provision · exact public law section
    (3) in section 5(e)(4), by redesignating clauses (i) and (ii) as subparagraphs (A) and (B) respectively, and indenting appropriately;

27. 1996

    Deposit Insurance Funds Act of 1996

    Pub. L. 104–208 § 2704(d)(14)(B) · 110 Stat. 3009

    Repealed · 12 U.S.C. § 1815(b)(5)

    Pub. L. 104–208, § 2704(d)(14)(B), which directed substitution of “Deposit Insurance Fund,” for “the Bank Insurance Fund or the Savings Association Insurance Fund;”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 104–208, § 2704(d)(14)(B), which directed substitution of “Deposit Insurance Fund,” for “the Bank Insurance Fund or the Savings Association Insurance Fund;”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

    Enacted provision · exact public law section
    (B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking “the Bank Insurance Fund or the Savings Association Insurance Fund;” and inserting “Deposit Insurance Fund,”;

28. 1996

    Deposit Insurance Funds Act of 1996

    Pub. L. 104–208 § 2704(d)(14)(C) · 110 Stat. 3009

    1. Struck · 12 U.S.C. § 1815(d)

       Pub. L. 104–208, § 2704(d)(14)(C) and (D), which directed the amendment of subsec. (d) by striking out par. (1) designation and heading

    2. Redesignated · 12 U.S.C. § 1815(d)

       Pub. L. 104–208, § 2704(d)(14)(C) and (D), which directed the amendment of subsec. (d) by redesignating subpar. (A) of par. (1) as par. (1), realigning margin

    3. Substituted · 12 U.S.C. § 1815(d)

       Pub. L. 104–208, § 2704(d)(14)(C) and (D), which directed the amendment of subsec. (d) by substituting “the reserve ratio of the Deposit Insurance Fund” for “reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund”

    4. Struck · 12 U.S.C. § 1815(d)

       Pub. L. 104–208, § 2704(d)(14)(C) and (D), which directed the amendment of subsec. (d) by striking out subpar. (B) of par. (1) and pars. (2) and (3)

    5. Added · 12 U.S.C. § 1815(d)

       Pub. L. 104–208, § 2704(d)(14)(C) and (D), which directed the amendment of subsec. (d) by adding new par. (2)

    6. Redesignated · 12 U.S.C. § 1815(d)

       Pub. L. 104–208, § 2704(d)(14)(C) and (D), which directed the amendment of subsec. (d) by redesignating subpar. (C) of par. (1) as par. (3) and realigning margin, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 104–208, § 2704(d)(14)(C) and (D), which directed the amendment of subsec. (d) by striking out par. (1) designation and heading, redesignating subpar. (A) of par. (1) as par. (1), realigning margin, and substituting “the reserve ratio of the Deposit Insurance Fund” for “reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund”, striking out subpar. (B) of par. (1) and pars. (2) and (3) and adding new par. (2), and redesignating subpar. (C) of par. (1) as par. (3) and realigning margin, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

    Enacted provision · exact public law section
    (C) in section 5(d) (12 U.S.C. 1815(d)), by striking paragraphs (2) and (3);

29. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2201(a)(1) · 110 Stat. 3009

    Substituted · 12 U.S.C. § 1815(d)(3)(A)

    Pub. L. 104–208, § 2201(a)(1), substituted “if the transaction is approved by” for “with the prior written approval of”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(A). Pub. L. 104–208, § 2201(a)(1), substituted “if the transaction is approved by” for “with the prior written approval of”.

    Enacted provision · exact public law section
    (1) in subparagraph (A), by striking “with the prior written approval of” and inserting “if the transaction is approved by”;

30. 1996

    Deposit Insurance Funds Act of 1996

    Pub. L. 104–208 § 2702(i)(1) · 110 Stat. 3009

    Substituted · 12 U.S.C. § 1815(d)(3)(C)

    Pub. L. 104–208, § 2702(i)(1), substituted “Except as provided in subparagraph (K), the adjusted attributable deposit amount” for “The adjusted attributable deposit amount” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (d)(3)(C). Pub. L. 104–208, § 2702(i)(1), substituted “Except as provided in subparagraph (K), the adjusted attributable deposit amount” for “The adjusted attributable deposit amount” in introductory provisions.

    Enacted provision · exact public law section
    (1) in subparagraph (C), by striking “The adjusted attributable deposit amount” and inserting “Except as provided in subparagraph (K), the adjusted attributable deposit amount”; and

31. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2201(a)(2) · 110 Stat. 3009

    1. Added · 12 U.S.C. § 1815(d)(3)(E)

       Pub. L. 104–208, § 2201(a)(2), added cl. (iii)

    2. Redesignated · 12 U.S.C. § 1815(d)(3)(E)

       Pub. L. 104–208, § 2201(a)(2), redesignated former cls. (ii) and (iii) as (i) and (ii), respectively

    3. Struck · 12 U.S.C. § 1815(d)(3)(E)

       Pub. L. 104–208, § 2201(a)(2), struck out former cls. (i) and (iv), which directed review of any application under the procedures and factors set forth in section 1828(c) of this title and disapproval of any application unless depository institution met all applicable capital requirements, respectively

    Source evidence

    Code amendment note
    Subsec. (d)(3)(E). Pub. L. 104–208, § 2201(a)(2), added cl. (iii), redesignated former cls. (ii) and (iii) as (i) and (ii), respectively, and struck out former cls. (i) and (iv), which directed review of any application under the procedures and factors set forth in section 1828(c) of this title and disapproval of any application unless depository institution met all applicable capital requirements, respectively.

    Enacted provision · exact public law section
    (2) in subparagraph (E)— (A) by striking clauses (i) and (iv); (B) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and (C) by adding at the end the following new clause: “(iii) Capital requirements.— A transaction described in this paragraph shall not be approved under section 18(c)(2) unless the acquiring, assuming, or resulting depository institution will meet all applicable capital requirements upon consummation of the transaction.”;

32. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2201(a)(3) · 110 Stat. 3009

    1. Redesignated · 12 U.S.C. § 1815(d)(3)(G)(J)

       Pub. L. 104–208, § 2201(a)(3), (4), redesignated subpars. (H) to (J) as (G) to (I), respectively

    2. Struck · 12 U.S.C. § 1815(d)(3)(G)(J)

       Pub. L. 104–208, § 2201(a)(3), (4), struck out former subpar. (G) which related to expedited approval of acquisitions

    Source evidence

    Code amendment note
    Subsec. (d)(3)(G) to (J). Pub. L. 104–208, § 2201(a)(3), (4), redesignated subpars. (H) to (J) as (G) to (I), respectively and struck out former subpar. (G) which related to expedited approval of acquisitions.

    Enacted provision · exact public law section
    (3) by striking subparagraph (G); and

33. 1996

    Deposit Insurance Funds Act of 1996

    Pub. L. 104–208 § 2702(i)(2) · 110 Stat. 3009

    Added · 12 U.S.C. § 1815(d)(3)(K)

    Pub. L. 104–208, § 2702(i)(2), added subpar. (K)

    Source evidence

    Code amendment note
    Subsec. (d)(3)(K). Pub. L. 104–208, § 2702(i)(2), added subpar. (K).

    Enacted provision · exact public law section
    (2) by adding at the end the following new subparagraph: “(K) Adjustment of adjusted attributable deposit amount.— The amount determined under subparagraph (C)(i) for deposits acquired by March 31, 1995, shall be reduced by 20 percent for purposes of computing the adjusted attributable deposit amount for the payment of any assessment for any semiannual period that begins after the date of the enactment of the Deposit Insurance Funds Act of 1996 (other than the special assessment imposed under section 2702(a) of such Act), for a Bank Insurance Fund member bank that, as of June 30, 1995— “(i) had an adjusted attributable deposit amount that was less than 50 percent of the total deposits of that member bank; or “(ii) (I) had an adjusted attributable deposit amount equal to less than 75 percent of the total assessable deposits of that member bank; “(II) had total assessable deposits greater than $5,000,000,000; and “(III) was owned or controlled by a bank holding company that owned or controlled insured depository institutions having an aggregate amount of deposits insured or treated as insured by the Bank Insurance Fund greater than the aggregate amount of deposits insured or treated as insured by the Savings Association Insurance Fund.”.

34. 1996

    Deposit Insurance Funds Act of 1996

    Pub. L. 104–208 § 2704(d)(14)(E)(i) · 110 Stat. 3009

    Repealed · 12 U.S.C. § 1815(e)(5)(A)

    Pub. L. 104–208, § 2704(d)(14)(E)(i), which directed substitution of “Deposit Insurance Fund” for “Bank Insurance Fund or the Savings Association Insurance Fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above

    Source evidence

    Code amendment note
    Subsec. (e)(5)(A). Pub. L. 104–208, § 2704(d)(14)(E)(i), which directed substitution of “Deposit Insurance Fund” for “Bank Insurance Fund or the Savings Association Insurance Fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

    Enacted provision · exact public law section
    (i) in paragraph (5)(A), by striking “Bank Insurance Fund or the Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”;

35. 1996

    Deposit Insurance Funds Act of 1996

    Pub. L. 104–208 § 2704(d)(14)(E)(ii) · 110 Stat. 3009

    1. Struck · 12 U.S.C. § 1815(e)(6)(9)

       Pub. L. 104–208, § 2704(d)(14)(E)(ii), (iii), which directed striking out par. (6)

    2. Redesignated · 12 U.S.C. § 1815(e)(6)(9)

       Pub. L. 104–208, § 2704(d)(14)(E)(ii), (iii), which directed redesignating pars. (7) to (9) as (6) to (8), respectively, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above

    Source evidence

    Code amendment note
    Subsec. (e)(6) to (9). Pub. L. 104–208, § 2704(d)(14)(E)(ii), (iii), which directed striking out par. (6) and redesignating pars. (7) to (9) as (6) to (8), respectively, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

    Enacted provision · exact public law section
    (ii) by striking paragraph (6); and

36. 2006

    Federal Deposit Insurance Reform Act of 2005

    Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

    Repealed · 12 U.S.C. § 1815(b)(5)

    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(B). See 1996 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(B). See 1996 Amendment note below.

    Enacted provision · exact public law section
    (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

37. 2006

    Federal Deposit Insurance Reform Act of 2005

    Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

    Repealed · 12 U.S.C. § 1815(d)

    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(C), (D). See 1996 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(C), (D). See 1996 Amendment note below.

    Enacted provision · exact public law section
    (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

38. 2006

    Federal Deposit Insurance Reform Act of 2005

    Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

    Repealed · 12 U.S.C. § 1815(e)(5)(A)

    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(E)(i). See 1996 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(E)(i). See 1996 Amendment note below.

    Enacted provision · exact public law section
    (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

39. 2006

    Federal Deposit Insurance Reform Act of 2005

    Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

    Repealed · 12 U.S.C. § 1815(e)(6)(9)

    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(E)(ii), (iii). See 1996 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(E)(ii), (iii). See 1996 Amendment note below.

    Enacted provision · exact public law section
    (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

40. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 8(a)(2) · 119 Stat. 3601

    Substituted · 12 U.S.C. § 1815(b)(5)

    Pub. L. 109–173, § 8(a)(2), substituted “the Deposit Insurance Fund,” for “the Bank Insurance Fund or the Savings Association Insurance Fund,”

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 109–173, § 8(a)(2), substituted “the Deposit Insurance Fund,” for “the Bank Insurance Fund or the Savings Association Insurance Fund,”.

    Enacted provision · exact public law section
    (2) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking “the Bank Insurance Fund or the Savings Association Insurance Fund,” and inserting “the Deposit Insurance Fund,”;

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

41. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 8(a)(3) · 119 Stat. 3601

    Substituted · 12 U.S.C. § 1815(c)(4)

    Pub. L. 109–173, § 8(a)(3), substituted “Deposit Insurance Fund” for “deposit insurance fund”

    Source evidence

    Code amendment note
    Subsec. (c)(4). Pub. L. 109–173, § 8(a)(3), substituted “Deposit Insurance Fund” for “deposit insurance fund”.

    Enacted provision · exact public law section
    (3) in section 5(c)(4), by striking “deposit insurance fund” and inserting “Deposit Insurance Fund”;

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

42. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 8(a)(5) · 119 Stat. 3601

    1. Substituted · 12 U.S.C. § 1815(d)(1)

       Pub. L. 109–173, § 8(a)(5) substituted, “the reserve ratio of the Deposit Insurance Fund” for “reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund as required by section 1817 of this title” in subpar. (A)

    2. Struck · 12 U.S.C. § 1815(d)(1)

       Pub. L. 109–173, § 8(a)(5) struck out par. (1) designation and heading

    3. Redesignated · 12 U.S.C. § 1815(d)(1)

       Pub. L. 109–173, § 8(a)(5) redesignated subpar. (A) as par. (1) and realigned margin

    4. Redesignated · 12 U.S.C. § 1815(d)(1)

       Pub. L. 109–173, § 8(a)(5) struck out subpar. (B), the text of which read as follows: “The fee paid by the depository institution shall be credited to the Bank Insurance Fund if the depository institution becomes a Bank Insurance Fund member, and to the Savings Association Insurance Fund if the depository institution becomes a Savings Association Insurance Fund member.” Former subpar. (C) redesignated par. (3)

    Source evidence

    Code amendment note
    Subsec. (d)(1). Pub. L. 109–173, § 8(a)(5) substituted, “the reserve ratio of the Deposit Insurance Fund” for “reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund as required by section 1817 of this title” in subpar. (A), struck out par. (1) designation and heading, redesignated subpar. (A) as par. (1) and realigned margin, and struck out subpar. (B), the text of which read as follows: “The fee paid by the depository institution shall be credited to the Bank Insurance Fund if the depository institution becomes a Bank Insurance Fund member, and to the Savings Association Insurance Fund if the depository institution becomes a Savings Association Insurance Fund member.” Former subpar. (C) redesignated par. (3).

    Enacted provision · exact public law section
    (5) in section 5(d)(1) (12 U.S.C. 1815(d)(1))— (A) in subparagraph (A), by striking “reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund as required by section 7” and inserting “the reserve ratio of the Deposit Insurance Fund”; (B) by striking subparagraph (B) and inserting the following: “(2) Fee credited to the deposit insurance fund.— The fee paid by the depository institution under paragraph (1) shall be credited to the Deposit Insurance Fund.” ; (C) by striking “(1) uninsured institutions.—”; and (D) by redesignating subparagraphs (A) and (C) as paragraphs (1) and (3), respectively, and moving the left margins 2 ems to the left;

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

43. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 8(a)(4) · 119 Stat. 3601

    1. Added · 12 U.S.C. § 1815(d)(2)

       Pub. L. 109–173, § 8(a)(4), (5)(B), added par. (2)

    2. Struck · 12 U.S.C. § 1815(d)(2)

       Pub. L. 109–173, § 8(a)(4), (5)(B), struck out former par. (2) which related to conversion transactions by insured depository institutions

    Source evidence

    Code amendment note
    Subsec. (d)(2). Pub. L. 109–173, § 8(a)(4), (5)(B), added par. (2) and struck out former par. (2) which related to conversion transactions by insured depository institutions.

    Enacted provision · exact public law section
    (4) 12 USC 1815 note. in section 5(d) (12 U.S.C. 1815(d)), by striking paragraphs (2) and (3) (and any funds resulting from the application of such paragraph (2) prior to its repeal shall be deposited into the general fund of the Deposit Insurance Fund);

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

44. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 8(a)(4) · 119 Stat. 3601

    1. Redesignated · 12 U.S.C. § 1815(d)(3)

       Pub. L. 109–173, § 8(a)(4), (5)(D), redesignated par. (1)(C) of subsec. (d) as (3), realigned margin

    2. Struck · 12 U.S.C. § 1815(d)(3)

       Pub. L. 109–173, § 8(a)(4), (5)(D), struck out former par. (3) which related to optional conversions by insured depository institutions subject to special rules on deposit insurance payments

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 109–173, § 8(a)(4), (5)(D), redesignated par. (1)(C) of subsec. (d) as (3), realigned margin, and struck out former par. (3) which related to optional conversions by insured depository institutions subject to special rules on deposit insurance payments.

    Enacted provision · exact public law section
    (4) 12 USC 1815 note. in section 5(d) (12 U.S.C. 1815(d)), by striking paragraphs (2) and (3) (and any funds resulting from the application of such paragraph (2) prior to its repeal shall be deposited into the general fund of the Deposit Insurance Fund);

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

45. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 8(a)(6)(A) · 119 Stat. 3601

    Substituted · 12 U.S.C. § 1815(e)(5)(A)

    Pub. L. 109–173, § 8(a)(6)(A), substituted “Deposit Insurance Fund” for “Bank Insurance Fund or the Savings Association Insurance Fund”

    Source evidence

    Code amendment note
    Subsec. (e)(5)(A). Pub. L. 109–173, § 8(a)(6)(A), substituted “Deposit Insurance Fund” for “Bank Insurance Fund or the Savings Association Insurance Fund”.

    Enacted provision · exact public law section
    (A) in paragraph (5)(A), by striking “Bank Insurance Fund or the Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”;

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

46. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 8(a)(6)(B) · 119 Stat. 3601

    1. Redesignated · 12 U.S.C. § 1815(e)(6)(9)

       Pub. L. 109–173, § 8(a)(6)(B), (C), redesignated pars. (7) to (9) as (6) to (8), respectively

    2. Struck · 12 U.S.C. § 1815(e)(6)(9)

       Pub. L. 109–173, § 8(a)(6)(B), (C), struck out heading and text of former par. (6). Text read as follows: “During the 5-year period beginning on August 9, 1989—

    Source evidence

    Code amendment note
    Subsec. (e)(6) to (9). Pub. L. 109–173, § 8(a)(6)(B), (C), redesignated pars. (7) to (9) as (6) to (8), respectively, and struck out heading and text of former par. (6). Text read as follows: “During the 5-year period beginning on August 9, 1989—

    “(A) no Savings Association Insurance Fund member shall have any liability to the Corporation under this subsection arising out of assistance provided by the Corporation or any loss incurred by the Corporation as a result of the default of a Bank Insurance Fund member which was acquired by such Savings Association Insurance Fund member or any affiliate of such member before August 9, 1989; and “(B) no Bank Insurance Fund member shall have such liability with respect to assistance provided by or loss incurred by the Corporation as a result of the default of a Savings Association Insurance Fund member which was acquired by such Bank Insurance Fund member or any affiliate of such member before August 9, 1989.”

    Enacted provision · exact public law section
    (B) by striking paragraph (6); and

    Effective date note
    Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

47. 2006

    Pub. L. 109–351 § 703 · 120 Stat. 1966

    Changed · 12 U.S.C. § 1815(e)(8)(A)

    Pub. L. 109–351, § 703, which directed general amendment of par. (9)(A) of subsec. (e), was executed by making the amendment to par. (8)(A) to reflect the probable intent of Congress and amendment by 109–173, § 8(a)(6)(B), (C). Prior to amendment, subpar. (A) read as follows: “such institutions are controlled by the same depository institution holding company (including any company required to file reports pursuant to section 1843(f)(6) of this title); or”

    Source evidence

    Code amendment note
    Subsec. (e)(8)(A). Pub. L. 109–351, § 703, which directed general amendment of par. (9)(A) of subsec. (e), was executed by making the amendment to par. (8)(A) to reflect the probable intent of Congress and amendment by 109–173, § 8(a)(6)(B), (C). Prior to amendment, subpar. (A) read as follows: “such institutions are controlled by the same depository institution holding company (including any company required to file reports pursuant to section 1843(f)(6) of this title); or”.

    Enacted provision · exact public law section
    SEC. 703. CROSS GUARANTEE AUTHORITY.   Section 5(e)(9)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1815(e)(9)(A)) is amended to read as follows: “(A) such institutions are controlled by the same company; or” .

77 of 77 references resolved to an enrolled provision