§ 1831i. Agency disapproval of directors and senior executive officers of insured depository institutions or depository institution holding companies

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

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 title IX § 914(a) · 103 Stat. 183

   Enacted · 12 U.S.C. § 1831i

   Sept. 21, 1950, ch. 967, § 2[32], as added Pub. L. 101–73, title IX, § 914(a), Aug. 9, 1989, 103 Stat. 484

   Source evidence

   Code source credit
   Sept. 21, 1950, ch. 967, § 2[32], as added Pub. L. 101–73, title IX, § 914(a), Aug. 9, 1989, 103 Stat. 484

   Enacted provision · exact public law section
   (a) Depository Institution Insured By the FDIC.— The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by adding after the section added by section 226 of this Act the following new section: “SEC. 32. AGENCY DISAPPROVAL OF DIRECTORS AND SENIOR EXECUTIVE OFFICERS OF INSURED DEPOSITORY INSTITUTIONS OR DEPOSITORY INSTITUTION HOLDING COMPANIES. “(a) Prior Notice Required.— An insured depository institution or depository institution holding company shall notify the appropriate Federal banking agency of the proposed addition of any individual to the board of directors or the employment of any individual as a senior executive officer of such institution or holding company at least 30 days before such addition or employment becomes effective, if the insured depository institution or depository institution holding company— “(1) has been chartered less than 2 years in the case of an insured depository institution; “(2) has undergone a change in control within the preceding 2 years; or “(3) is not in compliance with the minimum capital requirement applicable to such institution or is otherwise in a troubled condition, as determined by such agency on the basis of such institution’s or holding company’s most recent report of condition or report of examination or inspection. “(b) Disapproval by Agency.— An insured depository institution or depository institution holding company may not add any individual to the board of directors or employ any individual as a senior executive officer if the appropriate Federal banking agency issues a notice of disapproval of such addition or employment before the end of the 30-day period beginning on the date the agency receives notice of the proposed action pursuant to subsection (a). “(c) Exception in Extraordinary Circumstances.— “(1) In general.— Each appropriate Federal banking agency may prescribe by regulation conditions under which the prior notice requirement of subsection (a) may be waived in the event of extraordinary circumstances. “(2) No effect on disapproval authority of agency.— Such waivers shall not affect the authority of each agency to issue notices of disapproval of such additions or employment of such individuals within 30 days after each such waiver. “(d) Additional Information.— Any notice submitted to an appropriate Federal banking agency with respect to an individual by any insured depository institution or depository institution holding company pursuant to subsection (a) shall include— “(1) the information described in section 7(j)(6)(A) about the individual; and “(2) such other information as the agency may prescribe by regulation. “(e) Standard for Disapproval.— The appropriate Federal banking agency shall issue a notice of disapproval with respect to a notice submitted pursuant to subsection (a) if the competence, experience, character, or integrity of the individual with respect to whom such notice is submitted indicates that it would not be in the best interests of the depositors of the depository institution or in the best interests of the public to permit the individual to be employed by, or associated with, the depository institution or depository institution holding company. “(f) Definition Regulations.— Each appropriate Federal banking agency shall prescribe by regulation a definition for the terms ‘troubled condition’ and ’senior executive officer’ for purposes of subsection (a).”.

2. 1996

   Department of Commerce and Related Agencies Appropriations Act, 1997

   Pub. L. 104–208 § 2209(1)(A) · 110 Stat. 3009

   1. Inserted · 12 U.S.C. § 1831i(a)

      Pub. L. 104–208, § 2209(1)(A), (B), in introductory provisions, inserted “(or such other period, as determined by the appropriate Federal banking agency)” after “30 days”

   2. Substituted · 12 U.S.C. § 1831i(a)

      Pub. L. 104–208, § 2209(1)(A), (B), in introductory provisions, substituted “if” for “if the insured depository institution or depository institution holding company”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 104–208, § 2209(1)(A), (B), in introductory provisions, inserted “(or such other period, as determined by the appropriate Federal banking agency)” after “30 days” and substituted “if” for “if the insured depository institution or depository institution holding company”.

   Enacted provision · exact public law section
   (A) by inserting “(or such other period, as determined by the appropriate Federal banking agency)” after “30 days”;

3. 1996

   Department of Commerce and Related Agencies Appropriations Act, 1997

   Pub. L. 104–208 § 2209(1)(E) · 110 Stat. 3009

   1. Inserted · 12 U.S.C. § 1831i(a)(1)

      Pub. L. 104–208, § 2209(1)(E), inserted “the insured depository institution or depository institution holding company” before “is not in compliance”

   2. Substituted · 12 U.S.C. § 1831i(a)(1)

      Pub. L. 104–208, § 2209(1)(E), substituted “; or” for period at end

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 104–208, § 2209(1)(E), inserted “the insured depository institution or depository institution holding company” before “is not in compliance” and substituted “; or” for period at end.

   Enacted provision · exact public law section
   (E) in paragraph (1), as redesignated— (i) by inserting “the insured depository institution or depository institution holding company” before “is not in compliance”; and (ii) by striking the period at the end and inserting “; or”; and

4. 1996

   Department of Commerce and Related Agencies Appropriations Act, 1997

   Pub. L. 104–208 § 2209(1)(C) · 110 Stat. 3009

   1. Redesignated · 12 U.S.C. § 1831i(a)(1)

      Pub. L. 104–208, § 2209(1)(C), (D), redesignated par. (3) as (1)

   2. Struck · 12 U.S.C. § 1831i(a)(1)

      Pub. L. 104–208, § 2209(1)(C), (D), struck out former par. (1) which read as follows: “has been chartered less than 2 years in the case of an insured depository institution;”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 104–208, § 2209(1)(C), (D), redesignated par. (3) as (1) and struck out former par. (1) which read as follows: “has been chartered less than 2 years in the case of an insured depository institution;”.

   Enacted provision · exact public law section
   (C) by striking paragraphs (1) and (2);

5. 1996

   Department of Commerce and Related Agencies Appropriations Act, 1997

   Pub. L. 104–208 § 2209(1)(C) · 110 Stat. 3009

   1. Added · 12 U.S.C. § 1831i(a)(2)

      Pub. L. 104–208, § 2209(1)(C), (F), added par. (2)

   2. Struck · 12 U.S.C. § 1831i(a)(2)

      Pub. L. 104–208, § 2209(1)(C), (F), struck out former par. (2) which read as follows: “has undergone a change in control within the preceding 2 years; or”

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 104–208, § 2209(1)(C), (F), added par. (2) and struck out former par. (2) which read as follows: “has undergone a change in control within the preceding 2 years; or”.

   Enacted provision · exact public law section
   (C) by striking paragraphs (1) and (2);

6. 1996

   Department of Commerce and Related Agencies Appropriations Act, 1997

   Pub. L. 104–208 § 2209(1)(D) · 110 Stat. 3009

   Redesignated · 12 U.S.C. § 1831i(a)(3)

   Pub. L. 104–208, § 2209(1)(D), redesignated par. (3) as (1)

   Source evidence

   Code amendment note
   Subsec. (a)(3). Pub. L. 104–208, § 2209(1)(D), redesignated par. (3) as (1).

   Enacted provision · exact public law section
   (D) by redesignating paragraph (3) as paragraph (1);

7. 1996

   Department of Commerce and Related Agencies Appropriations Act, 1997

   Pub. L. 104–208 § 2209(2) · 110 Stat. 3009

   Substituted · 12 U.S.C. § 1831i(b)

   Pub. L. 104–208, § 2209(2), substituted “notice period, not to exceed 90 days,” for “30-day period”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 104–208, § 2209(2), substituted “notice period, not to exceed 90 days,” for “30-day period”.

   Enacted provision · exact public law section
   (2) in subsection (b), by striking “30-day period” and inserting “notice period, not to exceed 90 days,”.

11 of 11 references resolved to an enrolled provision