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1000 - Federal Deposit Insurance Act
{{2-29-08 p.1219}}
SEC. 13 (a) INVESTMENT OF CORPORATION'S FUNDS.--
(1) AUTHORITY.--Funds held in the Deposit Insurance Fund
or the FSLIC Resolution Fund, that are not otherwise employed shall be
invested in obligations of the United States or in obligations
guaranteed as to principal and interest by the United States.
(2) LIMITATION.--The Corporation shall not sell or
purchase any obligations described in paragraph (1) for its own
account, at any one time aggregating in excess of $100,000, without the
approval of the Secretary of the Treasury. The Secretary may approve a
transaction or class of transactions subject to the provisions of this
paragraph under such conditions as the Secretary may determine.
[Codified to 12 U.S.C. 1823(a)]
[Source: Section 2[13(a)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 888), effective September 21, 1950, as amended by
section 217(1) of title II of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 254), effective August 9, 1989; section 8(a)(19)(A)
and (B) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119
Stat. 3613), effective date shall take effect on the day of the merger
of the Bank Insurance Fund and the Savings Association Insurance Fund
pursuant to the Federal Deposit Insurance Reform Act of
2005]
(b) The depository accounts of the Corporation shall be 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
depository institution 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 depository institution for temporary purposes of depository
accounts not in excess of $50,000 in any one bank, or to the
establishment and maintenance in any depository institution of any
depository accounts to facilitate the payment of insured deposits, or
the making of loans to, or the purchase of assets of, insured
depository institutions. 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.
[Codified to 12 U.S.C. 1823(b)]
[Source: Section 2[13(b)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 888), effective September 21, 1950, as amended by
sections 201(a)(1) and 217(2) of title II of the Act of August 9, 1989
(Pub. L. No. 101--73; 103 Stat. 187 and 255), effective August 9,
1989]
(c)(1) The Corporation is authorized, in its sole discretion and
upon such terms and conditions as the Board of Directors may prescribe,
to make loans to, to make deposits in, to purchase the assets or
securities of, to assume the liabilities of, or to make contributions
to, any insured depository institution--
(A) if such action is taken to prevent the default of such
insured depository institution;
(B) if, with respect to an insured
bank *
in default, such action is taken to restore such insured bank to normal
operation; or
(C) if, when severe financial conditions exist which threaten the
stability of a significant number of insured depository institutions or
of insured depository institutions possessing significant financial
resources, such action is taken in order to lessen the risk to the
Corporation posed by such insured depository institution under such
threat of instability.
(2)(A) In order to facilitate a merger or consolidation of
another insured depository institution described in subparagraph (B)
with another insured depository institution or the sale of any or all
of the assets of such insured depository institution or the assumption
of any or all of such insured depository institution's liabilities by
another insured depository
{{2-29-08 p.1220}}institution, or the acquisition of the stock
of such insured depository institution, the Corporation is authorized,
in its sole discretion and upon such terms and conditions as the Board
of Directors may prescribe--
(i) to purchase any such assets or assume any such liabilities;
(ii) to make loans or contributions to, or deposits in, or
purchase the securities of, such other insured depository institution
or the company which controls or will acquire control of such other
insured depository institution;
(iii) to guarantee such other insured depository institution or
the company which controls or will acquire control of such other
insured depository institution against loss by reason of such other
insured depository institution's merging or consolidating with or
assuming the liabilities and purchasing the assets of such insured
depository institution or by reason of such company acquiring control
of such insured depository institution; or
(iv) to take any combination of the actions referred to in
subparagraphs (i) through (iii).
(B) For the purpose of subparagraph (A), the insured depository
institution must be an insured depository institution--
(i) which is in default;
(ii) which, in the judgment of the Board of Directors, is in
danger of default; or
(iii) which, when severe financial conditions exist which
threaten the stability of a significant number of insured depository
institutions or of insured depository institutions possessing
significant financial resources, is determined by the Corporation, in
its sole discretion, to require assistance under subparagraph (A) in
order to lessen the risk to the Corporation posed by such insured
depository institution under such threat of instability.
(C) Any action to which the Corporation is or becomes a party by
acquiring any asset or exercising any other authority set forth in this
section shall be stayed for a period of 60 days at the request of the
Corporation.
(3) The Corporation may provide any person acquiring control of,
merging with, consolidating with or acquiring the assets of an insured
depository institution under section subsection (f) or (k) of this
section with such financial assistance as it could provide an insured
institution under this subsection.
(4) Least-cost resolution
required.-- *
(A) IN GENERAL.--Notwithstanding any other provision of
this Act, the Corporation may not exercise any authority under this
subsection or subsection (d), (f), (h), (i), or (k) with respect to any
insured depository institution unless--
(i) the Corporation determines that the exercise of such
authority is necessary to meet the obligation of the Corporation to
provide insurance coverage for the insured deposits in such
institution; and
(ii) the total amount of the expenditures by the Corporation and
obligations incurred by the Corporation (including any immediate and
long-term obligation of the Corporation and any direct or contingent
liability for future payment by the Corporation) in connection with the
exercise of any such authority with respect to such institution is the
least costly to the deposit insurance fund of all possible methods for
meeting the Corporation's obligation under this section.
(B) DETERMINING LEAST COSTLY APPROACH.--In determining
how to satisfy the Corporation's obligations to an institution's
insured depositors at the least possible cost to the deposit insurance
fund, the Corporation shall comply with the following provisions:
(i) PRESENT-VALUE ANALYSIS; DOCUMENTATION REQUIRED.--The
Corporation shall--
{{4-28-06 p.1221}}
(I) evaluate alternatives on a present-value basis, using a
realistic discount rate;
(II) document that evaluation and the assumptions on which the
evaluation is based, including any assumptions with regard to interest
rates, asset recovery rates, asset holding costs, and payment of
contingent liabilities; and
(III) retain the documentation for not less than 5 years.
(ii) FOREGONE TAX REVENUES.--Federal tax revenues that
the Government would forego as the result of a proposed transaction, to
the extent reasonably ascertainable, shall be treated as if they were
revenues foregone by the deposit insurance fund.
(C) TIME OF DETERMINATION.--
(i) GENERAL RULE.--For purposes of this subsection, the
determination of the costs of providing any assistance under paragraph
(1) or (2) or any other provision of this section with respect to any
depository institution shall be made as of the date on which the
Corporation makes the determination to provide such assistance to the
institution under this section.
(ii) RULE FOR LIQUIDATIONS.--For purposes of this
subsection, the determination of the costs of liquidation of any
depository institution shall be made as of the earliest of--
(I) the date on which a conservator is appointed for such
institution;
(II) the date on which a receiver is appointed for such
institution; or
(III) the date on which the Corporation makes any determination
to provide any assistance under this section with respect to such
institution.
(D) LIQUIDATION COSTS.--In determining the cost of
liquidating any depository institution for the purpose of comparing the
costs under subparagraph (A) (with respect to such institution), the
amount of such cost may not exceed the amount which is equal to the sum
of the insured deposits of such institution as of the earliest of the
dates described in subparagraph (C), minus the present value of the
total net amount the Corporation reasonably expects to receive from the
disposition of the assets of such institution in connection with such
liquidation.
(E) Deposit insurance fund available for intended purpose
only.--
(i) IN GENERAL.--After December 31, 1994, or at such
earlier time as the Corporation determines to be appropriate, the
Corporation may not take any action, directly or indirectly, with
respect to any insured depository institution that would have the
effect of increasing losses to the Deposit Insurance Fund by
protecting--
(I) depositors for more than the insured portion of deposits
(determined without regard to whether such institution is liquidated);
or
(II) creditors other than depositors.
(ii) DEADLINE FOR REGULATIONS.--The Corporation shall
prescribe regulations to implement clause (i) not later than January 1,
1994, and the regulations shall take effect not later than January 1,
1995.
(iii) PURCHASE AND ASSUMPTION TRANSACTIONS.--No
provision of this subparagraph shall be construed as prohibiting the
Corporation from allowing any person who acquires any assets or assumes
any liabilities of any insured depository institution for which the
Corporation has been appointed conservator or receiver to acquire
uninsured deposit liabilities of such institution so long as the
insurance fund does not incur any loss with respect to such deposit
liabilities in an amount greater than the loss which would have been
incurred with respect to such liabilities if the institution had been
liquidated.
(F) DISCRETIONARY DETERMINATIONS.--Any determination
which the Corporation may make under this paragraph shall be made in
the sole discretion of the Corporation.
(G) SYSTEMIC RISK.--
(i) Emergency determination by secretary of the
treasury.--Notwithstanding subparagraphs (A) and (E), if, upon
the written recommendation of the Board of Directors (upon a vote of
not less than two-thirds of the members of the Board of Directors) and
the Board of Governors of the Federal Reserve System (upon a vote of
not
{{4-28-06 p.1222}}less than two-thirds of the members of such
Board), the Secretary of the Treasury (in consultation with the
President) determines that--
(I) the Corporation's compliance with subparagraphs (A) and (E)
with respect to an insured depository institution would have serious
adverse effects on economic conditions or financial stability; and
(II) any action or assistance under this subparagraph would avoid
or mitigate such adverse effects,
the Corporation may take other action or provide assistance under
this section as necessary to avoid or mitigate such effects.
(ii) REPAYMENT OF LOSS.--The Corporation shall recover
the loss to the Deposit Insurance Fund arising from any action taken or
assistance provided with respect to an insured depository institution
under clause (i) expeditiously from 1 or more emergency special
assessments on insured depository institutions equal to the product
of--
(I) an assessment rate established by the Corporation; and
(II) the amount of each insured depository institution's average
total assets during the assessment period, minus the sum of the amount
of the institution's average total tangible equity and the amount of
the institution's average total subordinated debt.
(iii) DOCUMENTATION REQUIRED.--The Secretary of the
Treasury shall--
(I) document any determination under clause (i); and
(II) retain the documentation for review under clause (iv).
(iv) GAO REVIEW.--The Comptroller General of the United
States shall review and report to the Congress on any determination
under clause (i), including--
(I) the basis for the determination;
(II) the purpose for which any action was taken pursuant to such
clause; and
(III) the likely effect of the determination and such action on
the incentives and conduct of insured depository institutions and
uninsured depositors.
(v) NOTICE.--
(I) IN GENERAL.--The Secretary of the Treasury shall
provide written notice of any determination under clause (i) to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives.
(II) DESCRIPTION OF BASIS OF DETERMINATION.--The notice
under subclause (I) shall include a description of the basis for any
determination under clause (i).
(H) RULE OF CONSTRUCTION.--No provision of law shall be
construed as permitting the Corporation to take any action prohibited
by paragraph (4) unless such provision expressly provides, by direct
reference to this paragraph, that this paragraph shall not apply with
respect to such action.
(5) The Corporation may not use its authority under this
subsection to purchase the voting or common stock of an insured
depository institution. Nothing in the preceding sentence shall be
construed to limit the ability of the Corporation to enter into and
enforce covenants and agreements that it determines to be necessary to
protect its financial interest.
(6)(A) During any period in which an insured depository
institution has received assistance under this subsection and such
assistance is still outstanding, such insured depository institution
may defer the payment of any State or local tax which is determined on
the basis of the deposits held by such insured depository institution
or of the interest or dividends paid on such deposits.
(B) When such insured depository institution no longer has any
outstanding assistance, such insured depository institution shall pay
all taxes which were deferred under subparagraph (A). Such payments
shall be made in accordance with a payment plan established by the
Corporation, after consultation with the applicable State and local
taxing authorities.
{{12-31-08 p.1222.01}}
(7) The transfer of any assets or liabilities associated with any
trust business of an insured depository institution in default under
subparagraph (2)(A) shall be effective without any State or Federal
approval, assignment, or consent with respect thereto.
(8) Assistance before appointment on conservator of
receiver.--
(A) IN GENERAL.--Subject to the least-cost provisions of
paragraph (4), the Corporation shall consider providing direct
financial assistance under this section for depository institutions
before the appointment of a conservator or receiver for such
institution only under the following circumstances.--
(i) TROUBLED CONDITION CRITERIA.--The Corporation
determines--
(I) grounds for the appointment of a conservator or receiver
exist or likely will exist in the future unless the depository
institution's capital levels are increased; and
(II) it is unlikely that the institution can meet all currently
applicable capital standards without assistance.
(ii) OTHER CRITERIA.--The depository institution meets
the following criteria:
(I) The appropriate Federal banking agency and the Corporation
have determined that, during such period of time preceding the date of
such determination as the agency or the Corporation considers to be
relevant, the institution's management has been competent and has
complied with applicable laws, rules, and supervisory directives and
orders.
(II) The institution's management did not engage in any insider
dealing, speculative practice, or other abusive activity.
(B) PUBLIC DISCLOSURE.--Any determination under this
paragraph to provide assistance under this section shall be made in
writing and published in the Federal Register.
(9) Any assistance provided under this subsection may be in
subordination to the rights of depositors and other creditors.
(10) In its annual report to the Congress, the Corporation shall
report the total amount it has saved, or estimates it has saved, by
exercising the authority provided in this subsection.
(11) UNENFORCEABILITY OF CERTAIN AGREEMENTS.--No
provision contained in any existing or future standstill,
confidentiality, or other agreement that, directly or indirectly--
(A) affects, restricts, or limits the ability of any person to
offer to acquire or acquire,
(B) prohibits any person from offering to acquire or acquiring,
or
(C) prohibits any person from using any previously disclosed
information in connection with any such offer to acquire or acquisition
of, all or part of any insured depository institution, including any
liabilities, assets, or interest therein, in connection with any
transaction in which the Corporation exercises its authority under
section 11 or 13, shall be enforceable against or impose any liability
on such person, as such enforcement or liability shall be contrary to
public policy.
[Codified to 12 U.S.C. 1823(c)]
[Source: Section 2[13(c)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 888), effective September 21, 1950, as amended by
section 111 of title I of the Act of October 15, 1982 (Pub. L. No.
97--320; 96 Stat. 1469--1471), effective October 15, 1982; section 1(a)
of the Act of January 12, 1983 (Pub. L. No. 97--457; 96 Stat. 2507),
effective January 12, 1983; sections 201(a)(1) and 217(3) of title II
of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and
255), effective August 9, 1989; sections 141(a) and (e) of title I of
the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2273 and
2278, respectively), effective December 19, 1991; section 602(a)(34)
and (35) of title VI of the Act of September 23, 1994 (Pub. L. No.
103--325; 108 Stat. 2289), effective September 23, 1994; section
8(a)(19)(C), (D), and (E) of the Act of February 15, 2006 (Pub. L. No.
109--173; 119 Stat. 3613), effective date shall take effect on the day
of the merger of the Bank Insurance Fund and the Savings Association
Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of
2005; section 126(c) of title I of the Act of October 3, 2008 (Pub. L.
No. 110--343; 122 Stat. 3795), effective October 3,
2008]
(d) SALE OF ASSETS TO CORPORATION.--
{{12-31-08 p.1222.02}}
(1) IN GENERAL.--Any conservator, receiver, or
liquidator appointed for any insured depository institution in default,
including the Corporation acting in such capacity, shall be entitled to
offer the assets of such depository institutions for sale to the
Corporation or as security for loans from the Corporation.
(2) PROCEEDS.--The proceeds of every sale or loan of
assets to the Corporation shall be utilized for the same purposes and
in the same manner as other funds realized from the liquidation of the
assets of such depository institutions.
(3) RIGHTS AND POWERS OF CORPORATION.--
(A) IN GENERAL.--With respect to any asset acquired or
liability assumed pursuant to this section, the Corporation shall have
all of the rights, powers, privileges, and authorities of the
Corporation as receiver under
sections 11 and
15(b).
(B) RULE OF CONSTRUCTION.--Such rights, powers,
privileges, and authorities shall be in addition to and not in
derogation of any rights, powers, privileges, and authorities otherwise
applicable to the Corporation.
(C) FIDUCIARY RESPONSIBILITY.--In exercising any right,
power, privilege, or authority described in subparagraph (A), the
Corporation shall continue to be subject to the fiduciary duties and
obligations of the Corporation as receiver to claimants against the
insured depository institution in receivership.
(D) DISPOSITION OF ASSETS.--In exercising any right,
power, privilege, or authority described in subparagraph (A) regarding
the sale or disposition of assets sold to the Corporation pursuant to
paragraph (1), the Corporation shall conduct its operations in a manner
which--
(i) maximizes the net present value return from the sale or
disposition of such assets;
(ii) minimizes the amount of any loss realized in the resolution
of cases;
(iii) ensures adequate competition and fair and consistent
treatment of offerors;
(iv) prohibits discrimination on the basis of race, sex, or
ethnic groups in the solicitation and consideration of offers; and
(v) maximizes the preservation of the availability and
affordability of residential real property for low- and moderate-income
individuals.
(4) LOANS.--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 depository institution which is now or may
hereafter be in default.
[Codified to 12 U.S.C. 1823(d)]
[Source: Section 2[13(d)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 889), effective September 21, 1950, as amended by
sections 201(a)(1) and 217(4) of title II of the Act of August 9, 1989
(Pub. L. No. 101--73; 103 Stat. 187 and 256), effective August 9, 1989;
section 123(b) of title I of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2252), effective December 19,
1991]
(e) AGREEMENTS AGAINST INTERESTS OF CORPORATION.--
(1) IN GENERAL.--No agreement which tends to diminish or
defeat the interest of the Corporation in any asset acquired by it
under this section or section 11, either as security for a loan or by
purchase or as receiver of any insured depository institution, shall be
valid against the Corporation unless such agreement--
(A) is in writing,
(B) was executed by the depository institution and any person
claiming an adverse interest thereunder, including the obligor,
contemporaneously with the acquisition of the asset by the depository
institution,
(C) was approved by the board of directors of the depository
institution or its loan committee, which approval shall be reflected in
the minutes of said board or committee, and
(D) has been, continuously, from the time of its execution, an
official record of the depository institution.
(2) Exemptions From Contemporaneous Execution
Requirement.--An agreement to provide for the lawful
collateralization of--
{{12-31-08 p.1222.03}}
(A) deposits of, or other credit extension by, a Federal, State,
or local governmental entity, or of any depsoitor referred to in
section 11(a)(2), including an agreement to provide collateral in lieu
of a surety bond;
(B) bankruptcy estate funds pursuant to section 345(b)(2) of
title 11, United States Code;
(C) extensions of credit, including any overdraft, from a Federal
reserve bank or Federal home loan bank; or
(D) one or more qualified financial contracts, as defined in
section 11(e)(8)(D), shall not be deemed invlaid pursuant to paragraph
(1)(B) solely because such agreement was not executed contemporaneously
with the acquisition of the collateral or because of pledges, delivery,
or substitution of the collateral made in accordance with such
agreement.
[Codified to 12 U.S.C. 1823(e)]
[Source: Section 2[13(e)] of the Act of September 21, 1950
(Pub. L. No. 797; 64 Stat. 889), effective September 21, 1950, as
amended by section 113(m) of title I of the Act of October 15, 1982
(Pub. L. No. 97--320; 96 Stat. 1474), effective October 15, 1982;
section 217(4) of title II of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 256), effective August 9, 1989; section 317 of title
III of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat.
2223), effective September 23, 1994; section 909 of title IX of the Act
of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 183), effective April
20, 2005]
(f) ASSISTED EMERGENCY INTERSTATE ACQUISITIONS.--(1) This
subsection shall apply only to an acquisition of an insured bank or a
holding company by an out-of-State bank [or] savings association or
out-of-State holding company for which the Corporation provides
assistance under subsection (c).
(2)(A) Whenever an insured bank with total assets of $500,000,000
or more (as determined from its most recent report of condition) is in
default, the Corporation, as receiver, may, in its discretion and upon
such terms and conditions as the Corporation may determine, arrange the
sale of assets of the bank in default and the assumption of the
liabilities of the bank in default, including the sale of such assets
to and the assumption of such liabilities by an insured depository
institution located in the State where the bank in default was
chartered but established by an out-of-State bank or holding company.
Where otherwise lawfully required, a transaction under this subsection
must be approved by the primary Federal or State supervisor of all
parties thereto.
(B)(i) Before making a determination to take any action under
subparagraph (A), the Corporation shall consult the State bank
supervisor of the State in which the insured bank in default was
chartered.
(ii) The State bank supervisor shall be given a reasonable
opportunity, and in no event less than forty-eight hours, to object to
the use of the provisions of this paragraph. Such notice may be
provided by the Corporation prior to its appointment as receiver, but
in anticipation of an impending appointment.
(iii) If the State supervisor objects during such period, the
Corporation may use the authority of this paragraph only by a vote of
75 percent of the Board of Directors. The Board of Directors shall
provide to the State supervisor, as soon as practicable, a written
certification of its determination.
(3) Emergency Interstate Acquisitions of Insured Banks in
Danger of Default.--
(A) Acquisition of insured banks in danger of
default.--One or more out-of-State banks or out-of-State holding
companies may acquire and retain all or part of the shares or assets
of, or otherwise acquire and retain--
(i) an insured bank in danger of default which has total assets
of $500,000,000 or more; or
(ii) 2 or more affiliated insured banks in danger of default
which have aggregate total assets of $500,000,000 or more, if the
aggregate total assets of such banks is equal to or greater than 33
percent of the aggregate total assets of all affiliated insured banks.
(B) Acquisition of a holding company or other bank
affiliate.--If one or more out-of-State banks or out-of-State
holding companies acquire 1 or more affiliated insured banks under
subparagraph (A) the aggregate total assets of which is equal to
or
{{10-31-94 p.1223}}greater than 33 percent of the aggregate total
assets of all affiliated insured banks, any such out-of-State bank or
out-of-State holding company may also, as part of the same transaction,
acquire and retain the shares or assets of, or otherwise acquire and
retain--
(i) the holding company which controls the affiliated insured
banks so acquired; or
(ii) any other affiliated insured bank.
(C) Request for assistance by corporate board of
directors.--The Corporation may assist an acquisition or merger
authorized under subparagraph (A) only if the board of directors or
trustees of each insured bank in danger of default which is being
acquired has requested in writing that the Corporation assist the
acquisition or merger.
(D) Certain acquisitions authorized after assistance is
provided.--Notwithstanding paragraph (1), if--
(i) at any time after the date of the enactment of the Financial
Institutions Emergency Acquisitions Amendments of 1987, the Corporation
provides any assistance under subsection (c) to an insured bank; and
(ii) at the time such assistance is granted, the insured bank,
the holding company which controls the insured bank (if any), or any
affiliated insured bank is eligible to be acquired by an out-of-State
bank or out-of-State holding company under this paragraph,
the insured bank, the holding company, and such other affiliated
insured bank shall remain eligible, subject to such terms and
conditions as the Corporation (in the Corporation's discretion) may
impose, to be acquired by an out-of-State bank or out-of-State holding
company under this paragraph as long as any portion of such assistance
remains outstanding.
(E) STATE BANK SUPERVISOR APPROVAL.--The Corporation may
take no final action in connection with any acquisition under this
paragraph unless the State bank supervisor of the State in which the
bank in danger of default is located approves the acquisition.
(F) OTHER REQUIREMENTS NOT AFFECTED.--This paragraph
does not affect any other requirement under Federal or State law for
regulatory approval of an acquisition under this paragraph.
(G) Acquisition may be conditioned on receipt of
consideration for corporation's assistance.--Any acquisition
described in subparagraph (D) may be conditioned on the receipt of such
consideration for the Corporation's assistance as the Board of
Directors deems appropriate.
(4)(A) Acquisitions Not Subject to Certain Other
Laws.--Section 3(d) of the Bank
Holding Company Act of 1956, any provision of State law, and
section 408(e)(3) of the National Housing Act shall not apply to
prohibit any acquisition under paragraph (2) or (3), except that an
out-of-State bank may make such an acquisition only if such ownership
otherwise is specifically authorized.
(B) Any subsidiary created by operation of this subsection may
retain and operate any existing branch or branches of the institution
merged with or acquired under paragraph (2) or (3), but otherwise shall
be subject to the conditions upon which a national bank may establish
and operate branches in the State in which such insured institution is
located.
(C) No insured institution acquired under this subsection shall
after it is acquired move its principal office or any branch office
which it would be prohibited from moving if the institution were a
national bank.
(D) Subsequent Nonemergency Interstate Acquisitions Subject
to State Law.--
(i) IN GENERAL.--Any out-of-State bank holding company
which acquires control of an insured bank in any State under paragraph
(2) or (3) may acquire any other insured bank and establish branches in
such State to the same extent as a bank holding company whose insured
bank subsidiaries' operations are principally conducted in such State
may acquire any other insured bank or establish branches.
{{10-31-94 p.1224}}
(ii) DELAYED DATE OF APPLICABILITY.--Clause (i) shall
not apply with respect to any out-of-State bank holding company
referred to in such clause before the earlier of--
(I) the end of the 2-year period beginning on the date the
acquisition referred to in such clause with respect to such company is
consummated; or
(II) the end of any period established under State law during
which such out-of-State bank holding company may not be treated as a
bank holding company whose insured bank subsidiaries' operations are
principally conducted in such State for purposes of acquiring other
insured banks or establishing bank branches.
(iii) DETERMINATION OF PRINCIPALLY CONDUCTED.--For
purposes of this subparagraph, the State in which the operations of a
holding company's insured bank subsidiaries are principally conducted
is the State determined under section
3(d) of the Bank Holding Company Act of 1956 with respect to
such holding company.
(E) Certain State Interstate Banking Laws
Inapplicable.--Any holding company which acquires control of any
insured bank or holding company under paragraph (2) or (3) or
subparagraph (D) of this paragraph shall not, by reason of such
acquisition, be required under the law of any State to divest any other
insured bank or be prevented from acquiring any other bank or holding
company.
(5) In determining whether to arrange a sale of assets and
assumption of liabilities or an acquisition or a merger under the
authority of paragraph (2) or (3), the Corporation may solicit such
offers or proposals as are practicable from any prospective purchasers
or merger partners it determines, in its sole discretion, are both
qualified and capable of acquiring the assets and liabilities of the
bank in default or the bank in danger of default.
(6)(A) If, after receiving offers, the offer presenting the
lowest expense to the Corporation, that is in a form and with
conditions acceptable to the Corporation (hereinafter referred to as
the "lowest acceptable offer"), is from an offeror that is not an
existing in-State bank of the same type as the bank that is in default
or is in danger of default (or, where the bank is an insured bank other
than a mutual savings bank, the lowest acceptable offer is not from an
in-State holding company), the Corporation shall permit the offeror
which made the initial lowest acceptable offer and each offeror who
made an offer the estimated cost of which to the Corporation was within
15 per centum or $15,000,000, whichever is less, of the initial lowest
acceptable offer to submit a new offer.
(B) In considering authorizations under this subsection, the
Corporation shall give consideration to the need to minimize the cost
of financial assistance and to the maintenance of specialized
depository institutions. The Corporation shall authorize transactions
under this subsection considering the following priorities:
(i) First, between depository institutions of the same type
within the same State.
(ii) Second, between depository institutions of the same type--
(I) in different States which by statute specifically authorize
such acquisitions; or
(II) in the absence of such statutes, in different States which
are contiguous.
(iii) Third, between depository institutions of the same type in
different States other than the States described in clause (ii).
(iv) Fourth, between depository institutions of different types
in the same State.
(v) Fifth, between depository institutions of different types--
(I) in different States which by statute specifically authorize
such acquisitions; or
(II) in the absence of such statutes, in different States which
are contiguous.
(vi) Sixth, between depository institutions of different types in
different States other than the States described in clause (v).
(C) MINORITY BANK PRIORITY.--In the case of a
minority-controlled bank, the Corporation shall seek an offer from
other minority-controlled banks before proceeding with the bidding
priorities set forth in subparagraph (B).
{{4-28-06 p.1225}}
(D) In determining the cost of offers and reoffers, the
Corporation's calculations and estimations shall be determinative. The
Corporation may set reasonable time limits on offers and reoffers.
(7) No sale may be made under the provisions of paragraph (2) or
(3)--
(A) which would result in a monopoly, or which would be in
futherance of any combination or conspiracy to monopolize or to attempt
to monopolize the business of banking in any part of the United States;
(B) whose effect in any section of the country may be
substantially to lessen competition, or to tend to create a monopoly,
or which in any other manner would be in restraint of trade, unless the
Corporation finds that the anticompetitive effects of the proposed
transactions are clearly outweighed in the public interest by the
probable effect of the transaction in meeting the convenience and needs
of the community to be served; or
(C) if in the opinion of the Corporation the acquisition
threatens the safety and soundness of the acquirer or does not result
in the future viability of the resulting depository institution.
(8) As used in this subsection--
(A) the term "in-State depository institution or in-State
holding company" means an existing insured depository institution
currently operating in the State in which the bank in default or the
bank in danger of default is chartered or a company that is operating
an insured depository institution subsidiary in the State in which the
bank in default or the bank in danger of default is chartered;
(B) the term "acquire" means to acquire, directly or
indirectly, ownership or control through--
(i) an acquisition of shares;
(ii) an acquisition of assets or assumption of liabilities;
(iii) a merger or consolidation; or
(iv) any similar transaction;
(C) the term "affiliated insured bank" means--
(i) when used in connection with a reference to a holding
company, an insured bank which is a subsidiary of such holding company;
and
(ii) when used in connection with a reference to 2 or more
insured banks, insured banks which are subsidiaries of the same holding
company; and
(D) the term "subsidiary" has the meaning given to such
term in section 2(d) of the Bank
Holding Company Act of 1956.
(9) No Assistance Authorized for Certain Subsidiaries of
Holding Companies.--
(A) IN GENERAL.--The Corporation shall not provide any
assistance to a subsidiary, other than a subsidiary that is an insured
depository institution of a holding company in connection with any
acquisition under this subsection.
(B) INTERMEDIATE HOLDING COMPANY PERMITTED.--This
paragraph does not prohibit an intermediate holding company or an
affiliate of an insured depository institution from being a conduit for
assistance ultimately intended for an insured bank.
(10) ANNUAL REPORT.--
(A) REQUIRED.--In its annual report to Congress the
Corporation shall include a report on the acquisitions under this
subsection during the preceding year.
(B) CONTENTS.--The report required under subparagraph
(A) shall contain the following information:
(i) The number of acquisitions under this subsection.
(ii) A brief description of each such acquisition and the
circumstances under which such acquisition occurred.
(11) DETERMINATION OF TOTAL ASSETS.--For purposes of
this subsection, the total assets of any insured bank shall be
determined on the basis of the most recent report of condition of such
bank which is available at the time of such determination.
(12) Acquisition of minority bank by minority bank holding
company without regard to asset size.--
{{4-28-06 p.1226}}
(A) IN GENERAL.--For the purpose of ensuring continued
minority control of a minority-controlled bank, paragraphs (2) and (3)
shall apply with respect to the acquisition of a minority-controlled
bank by an out-of-State minority-controlled depository institution or
depository institution holding company without regard to the fact that
the total assets of such minority-controlled bank are less than
$500,000,000.
(B) DEFINITIONS.--For purposes of this paragraph:
(i) MINORITY BANK.--The term "minority bank" means
any depository institution described in clause (i), (ii), or (iii) of
section 19(b)(1)(A) of the
Federal Reserve Act--
(I) more than 50 percent of the ownership or control of which is
held by one or more minority individuals; and
(II) more than 50 percent of the net profit or loss of which
accrues to minority individuals.
(ii) MINORITY.--The term "minority" means any
Black American, Native American, Hispanic American, or Asian American.
[Codified to 12 U.S.C. 1823(f)]
[Source: Section 2[13(f)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 889), as added by section 116 of title I of the
Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1476--1479),
effective October 15, 1982 through October 15, 1985; and as amended by
section 4 of the Act of January 12, 1983 (Pub. L. No. 97--457; 96 Stat.
2507); effective January 12, 1983; section 502(a) to (g) and (i) of
title V of the Act of August 10, 1987 (Pub. L. No. 100--86; 101 Stat.
623 to 629), effective August 10, 1987; and section 217(5) of title II
of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 256),
effective August 9, 1989; section 602(a)(36)--(42) of title VI of the
Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2290),
effective September 23, 1994]
(g) Prior to July 1, 1951, the Corporation shall pay out of its
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.
[Codified to 12 U.S.C. 1823(g)]
[Source: Section 2[13(g), formerly 13(f)] of the Act of
September 21, 1950 (Pub. L. No. 797; 64 Stat. 889), effective September
21, 1950, as redesignated by section 113(m) of title I of the Act of
October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1474), effective
October 15, 1982]
(h) The powers conferred on the Board of Directors and the
Corporation by this section to take action to reopen an insured
depository institution in default or to avert the default of an insured
depository institution may be used with respect to an insured branch of
a foreign bank if, in the judgment of the Board of Directors, the
public interest in avoiding the default of such branch substantially
outweighs any additional risk of loss to the Deposit Insurance Fund
which the exercise of such powers would entail.
[Codified to 12 U.S.C. 1823(h)]
[Source: Section 2[13(h), formerly 13(g)] of the Act of
September 21, 1950 (Pub. L. No. 797), as added by section 6(c)(24) of
the Act of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 619),
effective September 17, 1978; and as redesignated by section 113(m) of
title I of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat.
1474), effective October 15, 1982; and amended by sections 201(a)(1)
and 217(6) of title II of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 187 and 258), effective August 9, 1989; section
8(a)(19)(F) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119
Stat. 3613), effective date shall take effect on the day of the merger
of the Bank Insurance Fund and the Savings Association Insurance Fund
pursuant to the Federal Deposit Insurance Reform Act of
2005]
(i) Repealed.
Section 206 of title II of the Act of October 15, 1982
(Pub. L. No. 97--320; 96 Stat. 1496), effective October 15,
2002
{{10-31-05 p.1227}}
(j) LOAN LOSS AMORTIZATION FOR CERTAIN BANKS.--
(1) ELIGIBLITY.--The appropriate Federal banking agency
shall permit an agricultural bank to take the actions referred to in
paragraph (2) if it finds that--
(A) there is no evidence that fraud or criminal abuse on the part
of the bank led to the losses referred to in paragraph (2); and
(B) the agricultural bank has a plan to restore its capital, not
later than the close of the amortization period established under
paragraph (2), to a level prescribed by the appropriate Federal banking
agency.
(2) SEVEN-YEAR LOSS AMORTIZATION.--(A) Any loss on any
qualified agricultural loan that an agricultural bank would otherwise
be required to show on its annual financial statement for any year
between December 31, 1983, and January 1, 1992, may be amortized on its
financial statements over a period of not to exceed 7 years, as
provided in regulations issued by the appropriate Federal banking
agency.
(B) An agricultural bank may reappraise any real estate or other
property, real or personal, that it acquired coincident to the making
of a qualified agricultural loan and that it owned on January 1, 1983,
and any such additional property that it acquires prior to January 1,
1992. Any loss that such bank would otherwise be required to show on
its annual financial statements as the result of any such reappraisal
may be amortized on its financial statements over a period of not to
exceed 7 years, as provided in regulations issued by the appropriate
Federal banking agency.
(3) REGULATIONS.--Not later than 90 days after the date
of enactment of this subsection, the appropriate Federal banking agency
shall issue regulations implementing this subsection with respect to
banks that it supervises, including regulations implementing the
capital restoration requirement of paragraph (1)(B).
(4) DEFINITIONS.--As used in this subsection--
(A) the term "agricultural bank" means a bank--
(i) the deposits of which are insured by the Federal Deposit
Insurance Corporation;
(ii) which is located in an area the economy of which is
dependent on agriculture;
(iii) which has assets of $100,000,000 or less; and
(iv) which has--
(I) at least 25 percent of its total loans in qualified
agricultural loans; or
(II) fewer than 25 percent of its total loans in qualified
agricultural loans but which the appropriate Federal banking agency or
State bank commissioner recommends to the Corporation for eligibility
under this section, or which the Corporation, on its motion, deems
eligible; and
(B) the term "qualified agricultural loan" means a loan
made to finance the production of agricultural products or livestock in
the United States, a loan secured by farmland or farm machinery, or
such other category of loans as the appropriate Federal banking agency
may deem eligible.
(5) MAINTENANCE OF PORTFOLIO.--As a condition of
eligibility under this subsection, the agricultural bank must agree to
maintain in its loan portfolio a percentage of agricultural loans which
is not lower than the percentage of such loans in its loan portfolio on
January 1, 1986.
[Codified to 12 U.S.C. 1823(j)]
[Source: Section 2[13(j)] of the Act of September 21, 1950 (Pub.
L. No. 797), as added by section 801 of title VIII of the Act of August
10, 1987 (Pub. L. No. 100--86; 101 Stat. 656), effective August 10,
1987]
(k) EMERGENCY ACQUISITIONS.--
(1) IN GENERAL.--
(A) ACQUISITIONS AUTHORIZED.--
(i) TRANSACTIONS DESCRIBED.--Notwithstanding any
provision of State law, upon determining that severe financial
conditions threaten the stability of a significant number of savings
associations, or of savings associations possessing significant
financial resources, the
{{10-31-05 p.1228}}Corporation, in its discretion and if it
determines such authorization would lessen the risk to the Corporation,
may authorize--
(I) a savings association that is eligible for assistance
pursuant to subsection (c) to merge or consolidate with, or to transfer
its assets and liabilities to, any other savings association or any
insured bank,
(II) any other savings association to acquire control of such
savings association, or
(III) any company to acquire control of such savings association
or to acquire the assets or assume the liabilities thereof.
The Corporation may not authorize any transaction under this
subsection unless the Corporation determines that the authorization
will not present a substantial risk to the safety or soundness of the
savings association to be acquired or any acquiring entity.
(ii) TERMS OF TRANSACTIONS.--Mergers, consolidations,
transfers, and acquisitions under this subsection shall be on such
terms as the Corporation shall provide.
(iii) APPROVAL BY APPROPRIATE AGENCY.--Where otherwise
required by law, transactions under this subsection must be approved by
the appropriate Federal banking agency of every party thereto.
(iv) ACQUISITIONS BY SAVINGS ASSOCIATIONS.--Any Federal
savings association that acquires another savings association pursuant
to clause (i) may, with the concurrence of the Director of the Office
of Thrift Supervision, hold that savings association as a subsidiary
notwithstanding the percentage limitations of section 5(c)(4)(B) of the
Home Owners' Loan Act.
(v) DUAL SERVICE.--Dual service by a management official
that would otherwise be prohibited under the Depository Institution
Management Interlocks Act may, with the approval of the Corporation,
continue for up to 10 years.
(vi) Continued applicability of certain state
restrictions.--Nothing in this subsection overrides or supersedes
State laws restricting or limiting the activities of a savings
association on behalf of another entity.
(B) CONSULTATION WITH STATE OFFICIAL.--
[The page following this is 1231.]
{{4-28-06 p.1231}}
(i) CONSULTATION REQUIRED.--Before making a
determination to take any action under subparagraph (A), the
Corporation shall consult the State official having jurisdiction of the
acquired institution.
(ii) PERIOD FOR STATE RESPONSE.--The official shall be
given a reasonable opportunity, and in no event less than 48 hours, to
object to the use of the provisions of this paragraph. Such notice may
be provided by the Corporation prior to its appointment as receiver,
but in anticipation of an impending appointment.
(iii) APPROVAL OVER OBJECTION OF STATE OFFICIAL.--If the
official objects during such period, the Corporation may use the
authority of this paragraph only by a vote of 75 percent or more of the
voting members of the Board of Directors. The Corporation shall provide
to the official, as soon as practicable, a written certification of its
determination.
(2) SOLICITATION OF OFFERS.--
(A) IN GENERAL.--In considering authorizations under
this subsection, the Corporation may solicit such offers or proposals
as are practicable from any prospective purchasers or merger partners
it determines, in its sole discretion, are both qualified and capable
of acquiring the assets and liabilities of the savings association.
(B) MINORITY-CONTROLLED INSTITUTIONS.--In the case of a
minority-controlled depository institution, the Corporation shall seek
an offer from other minority-controlled depository institutions before
seeking an offer from other persons or entities.
(3) DETERMINATION OF COSTS.--In determining the cost of
offers under this subsection, the Corporation's calculations and
estimations shall be determinative. The Corporation may set reasonable
time limits on offers.
(4) BRANCHING PROVISIONS.--
(A) IN GENERAL.--If a merger, consolidation, transfer,
or acquisition under this subsection involves a savings association
eligible for assistance and a bank or bank holding company, a savings
association may retain and operate any existing branch or branches or
any other existing facilities. If the savings association continues to
exist as a separate entity, it may establish and operate new branches
to the same extent as any savings association that is not affiliated
with a bank holding company and the home office of which is located in
the same State.
(B) RESTRICTIONS.--
(i) IN GENERAL.--Notwithstanding subparagraph (A), if--
(I) a savings association described in such subparagraph does not
have its home office in the State of the bank holding company bank
subsidiary, and
(II) such association does not qualify as a domestic building and
loan association under section 7701(a)(19) of the Internal Revenue Code
of 1986, or does not meet the asset composition test imposed by
subparagraph (C) of that section on institutions seeking so to qualify,
such savings association shall be subject to the conditions upon
which a bank may retain, operate, and establish branches in the State
in which the savings association is located.
(ii) TRANSITION PERIOD.--The Corporation, for good cause
shown, may allow a savings association up to 2 years to comply with the
requirements of clause (i).
(5) Assistance before appointment of conservator or
receiver.--
(A) ASSISTANCE PROPOSALS.--The Corporation shall
consider proposals by savings association for assistance pursuant to
subsection (c) before grounds exist for appointment of a conservator or
receiver for such member under the following circumstances:
(i) TROUBLED CONDITION CRITERIA.--The Corporation
determines--
(I) that grounds for appointment of a conservator or receiver
exist or likely will exist in the future unless the member's tangible
capital is increased;
(II) that it is unlikely that the member can achieve positive
tangible capital without assistance; and
{{4-28-06 p.1232}}
(III) that providing assistance pursuant to the member's proposal
would be likely to lessen the risk to the Corporation.
(ii) OTHER CRITERIA.--The member meets the following
criteria:
(I) Before enactment of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, the member was solvent under
applicable regulatory accounting principles but had negative tangible
capital.
(II) The member's negative tangible capital position is
substantially attributable to its participation in acquisition and
merger transactions that were instituted by the Federal Home Loan Bank
Board or the Federal Savings and Loan Insurance Corporation for
supervisory reasons.
(III) The member is a qualified thrift lender (as defined in
section 10(m) of the Home
Owners' Loan Act) or would be a qualified thrift lender if commercial
real estate owned and nonperforming commercial loans acquired in
acquisition and merger transactions that were instituted by the Federal
Home Loan Bank Board or the Federal Savings and Loan Insurance
Corporation for supervisory reasons were excluded from the member's
total assets.
(IV) The appropriate Federal banking agency has determined that
the member's management is competent and has complied with applicable
laws, rules, and supervisory directives and orders.
(V) The member's management did not engage in insider dealing or
speculative practices or other activities that jeopardized the member's
safety and soundness or contributed to its impaired capital position.
(VI) The member's offices are located in an economically
depressed region.
(B) Corporation consideration of assistance
proposal.--If a member meets the requirements of clauses (i) and
(ii) of subparagraph (A), the Corporation shall consider providing
direct financial assistance.
(C) ECONOMICALLY DEPRESSED REGION DEFINED.--For purposes
of this paragraph, the term "economically depressed region" means
any geographical region which the Corporation determines by regulation
to be a region within which real estate values have suffered serious
decline due to severe economic conditions, such as a decline in energy
or agricultural values or prices.
[Codified to 12 U.S.C. 1823(k)]
[Source: Section 2[13(k)] of the Act of September 21, 1950 (Pub.
L. No. 797), effective September 21, 1950, as added by section 217(8)
of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103
Stat. 258), effective August 9, 1989; section 8(a)(19)(G) and (H) of
the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3613),
effective date shall take effect on the day of the merger of the Bank
Insurance Fund and the Savings Association Insurance Fund pursuant to
the Federal Deposit Insurance Reform Act of 2005]
NOTES AND DECISIONS
Derivation. Section 13(a) derives from the ninth paragraph of
section 12B( l ) of the Federal Reserve Act, as added
by section 8 of the Act of June 16, 1933 (Pub. L. No. 66; 48 Stat.
176), effective June 16, 1933 and as amended by section
101[12B(n)(1)] of title I of the Act of August 23, 1935 (Pub. L. No.
305; 49 Stat. 698), effective August 23, 1935. Section 13(d) derives
from section 12B(n) of the Federal Reserve Act, as added by section 8
of the Act of June 16, 1933 (Pub. L. No. 66; 48 Stat. 176), effective
June 16, 1933 and as amended by section 101[12B(n)(3)] of title I of
the Act of August 23, 1935 (Pub. L. No. 305; 49 Stat. 698), effective
August 23, 1935. Section 13(e) derives from section 12B(n)(4) of the
Federal Reserve Act, as added by section 101[12B(n)(4)] of title I of
the Act of August 23, 1935 (Pub. L. No. 305; 49 Stat. 699), effective
August 23, 1935 and as amended by the Act of April 21, 1936 (Pub. L.
No. 83; 49 Stat. 1237), effective April 21, 1936 and the Act of June
16, 1938 (Pub. L. No. 116; 52 Stat. 767), effective June 16, 1938. By
section 1 of the Act of September 21, 1950 (Pub. L. No. 797; 64 Stat.
873), effective September 21, 1950, section 12B of the Federal Reserve
Act was withdrawn as a part of that Act and was made a separate act
known as the "Federal Deposit Insurance Act."
Sections 13(b), 13(c), and 13(f) were added by section 2[13(b),
13(c), and 13(f)]
{{12-31-89 p.1232.01}}of the Act of September 21, 1950 (Pub. L. No.
797; 64 Stat. 888, 889), effective September 21, 1950.
Section 13(g) was added by section 6(c)(24) of the Act of September
17, 1978 (Pub. L. No. 95--369; 92 Stat. 619), effective September
17, 1978.
Section 13(h) (formerly 13(g)) was added by section 6(c)(24) of the
Act of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 619),
effective September 17, 1978.
Section 13(i) derived from section 203 of the Act of October 15,
1982 (Pub. L. No. 97--320; 96 Stat. 1492), effective October 15, 1982.
Section 13(j) was added by section 801 of the Act of August 10, 1987
(Pub. L. No. 100--86; 101 Stat. 656), effective August 10, 1987.
Section 13(k) was added by section 217(8) of the Act of August 9,
1989, known as the "FIRRE Act", (Pub. L. No. 101--73; 103 Stat.
258), effective August 9, 1989.
[The page following this is 1233.]
*Section 201(a)(2) of the FIRRE Act (Pub. L. 101--73)
specifically instructs that "insured bank" is not replaced with
"insured depository institution" in section 13(c)(1)(B) of the
FDI Act. Go Back to Text
*Editor's Note: Section 141(a)(2) of title I of
the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2276), as
amended by section 106(b) of Title I of the Act of October 19, 1996
(Pub. L. No. 104--316; 110 Stat. 3830) effective October 19, 1996,
provides as follows:
"(2) GAO COMPLIANCE AUDIT.--The Comptroller General of
the United States shall audit, under such conditions as the Comptroller
General determines to be appropriate, the Federal Deposit Insurance
Corporation and the Resolution Trust Corporation to determine the
extent to which such corporations are complying with section 13(c)(4)
of the Federal Deposit Insurance Act." Go Back to Text
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