From the U.S. Code Online via GPO Access
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1818]

 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
 
Sec. 1818. Termination of status as insured depository 
        institution
        

(a) Termination of insurance

                      (1) Voluntary termination

        Any insured depository institution which is not--
            (A) a national member bank;
            (B) a State member bank;
            (C) a Federal branch;
            (D) a Federal savings association; or
            (E) an insured branch which is required to be insured under 
        subsection (a) or (b) \1\ of section 3104 of this title,
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    \1\ See References in Text note below.

    may terminate such depository institution's status as an insured 
    depository institution if such insured institution provides written 
    notice to the Corporation of the institution's intent to terminate 
    such status not less than 90 days before the effective date of such 
    termination.

                     (2) Involuntary termination

        (A) Notice to primary regulator

            If the Board of Directors determines that--
                (i) an insured depository institution or the directors 
            or trustees of an insured depository institution have 
            engaged or are engaging in unsafe or unsound practices in 
            conducting the business of the depository institution;
                (ii) an insured depository institution is in an unsafe 
            or unsound condition to continue operations as an insured 
            institution; or
                (iii) an insured depository institution or the directors 
            or trustees of the insured institution have violated any 
            applicable law, regulation, order, condition imposed in 
            writing by the Corporation in connection with the approval 
            of any application or other request by the insured 
            depository institution, or written agreement entered into 
            between the insured depository institution and the 
            Corporation,

        the Board of Directors shall notify the appropriate Federal 
        banking agency with respect to such institution (if other than 
        the Corporation) or the State banking supervisor of such 
        institution (if the Corporation is the appropriate Federal 
        banking agency) of the Board's determination and the facts and 
        circumstances on which such determination is based for the 
        purpose of securing the correction of such practice, condition, 
        or violation. Such notice shall be given to the appropriate 
        Federal banking agency not less than 30 days before the notice 
        required by subparagraph (B), except that this period for notice 
        to the appropriate Federal banking agency may be reduced or 
        eliminated with the agreement of such agency.

        (B) Notice of intention to terminate insurance

            If, after giving the notice required under subparagraph (A) 
        with respect to an insured depository institution, the Board of 
        Directors determines that any unsafe or unsound practice or 
        condition or any violation specified in such notice requires the 
        termination of the insured status of the insured depository 
        institution, the Board shall--
                (i) serve written notice to the insured depository 
            institution of the Board's intention to terminate the 
            insured status of the institution;
                (ii) provide the insured depository institution with a 
            statement of the charges on the basis of which the 
            determination to terminate such institution's insured status 
            was made (or a copy of the notice under subparagraph (A)); 
            and
                (iii) notify the insured depository institution of the 
            date (not less than 30 days after notice under this 
            subparagraph) and place for a hearing before the Board of 
            Directors (or any person designated by the Board) with 
            respect to the termination of the institution's insured 
            status.

                      (3) Hearing; termination

        If, on the basis of the evidence presented at a hearing before 
    the Board of Directors (or any person designated by the Board for 
    such purpose), in which all issues shall be determined on the record 
    pursuant to section 554 of title 5 and the written findings of the 
    Board of Directors (or such person) with respect to such evidence 
    (which shall be conclusive), the Board of Directors finds that any 
    unsafe or unsound practice or condition or any violation specified 
    in the notice to an insured depository institution under paragraph 
    (2)(B) or subsection (w) of this section has been established, the 
    Board of Directors may issue an order terminating the insured status 
    of such depository institution effective as of a date subsequent to 
    such finding.

               (4) Appearance; consent to termination

        Unless the depository institution 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 depository 
    institution and termination of such status thereupon may be ordered.

                         (5) Judicial review

        Any insured depository institution whose insured status has been 
    terminated by order of the Board of Directors under this subsection 
    shall have the right of judicial review of such order only to the 
    same extent as provided for the review of orders under subsection 
    (h) of this section.

              (6) Publication of notice of termination

        The Corporation may publish notice of such termination and the 
    depository institution shall give notice of such termination to each 
    of its depositors at his last address of record on the books of the 
    depository institution, in such manner and at such time as the Board 
    of Directors may find to be necessary and may order for the 
    protection of depositors.

         (7) Temporary insurance of deposits insured as of 
                                 termination

        After the termination of the insured status of any depository 
    institution under the provisions of this subsection, the insured 
    deposits of each depositor in the depository institution on the date 
    of such termination, less all subsequent withdrawals from any 
    deposits of such depositor, shall continue for a period of at least 
    6 months or up to 2 years, within the discretion of the Board of 
    Directors, to be insured, and the depository institution shall 
    continue to pay to the Corporation assessments as in the case of an 
    insured depository institution during such period. No additions to 
    any such deposits and no new deposits in such depository institution 
    made after the date of such termination shall be insured by the 
    Corporation, and the depository institution 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 after such date are not 
    so insured. Such depository institution shall, in all other 
    respects, be subject to the duties and obligations of an insured 
    depository institution for the period referred to in the 1st 
    sentence from the date of such termination, and in the event that 
    such depository institution shall be closed on account of inability 
    to meet the demands of its depositors within such period, the 
    Corporation shall have the same powers and rights with respect to 
    such depository institution as in case of an insured depository 
    institution.

                (8) Temporary suspension of insurance

        (A) In general

            If the Board of Directors initiates a termination proceeding 
        under paragraph (2), and the Board of Directors, after 
        consultation with the appropriate Federal banking agency, finds 
        that an insured depository institution (other than a savings 
        association to which subparagraph (B) applies) has no tangible 
        capital under the capital guidelines or regulations of the 
        appropriate Federal banking agency, the Corporation may issue a 
        temporary order suspending deposit insurance on all deposits 
        received by the institution.

        (B) Special rule for certain savings institutions

            (i) Certain goodwill included in tangible capital

                In determining the tangible capital of a savings 
            association for purposes of this paragraph, the Board of 
            Directors shall include goodwill to the extent it is 
            considered a component of capital under section 1464(t) of 
            this title. Any savings association which would be subject 
            to a suspension order under subparagraph (A) but for the 
            operation of this subparagraph, shall be considered by the 
            Corporation to be a ``special supervisory association''.
            (ii) Suspension order

                The Corporation may issue a temporary order suspending 
            deposit insurance on all deposits received by a special 
            supervisory association whenever the Board of Directors 
            determines that--
                    (I) the capital of such association, as computed 
                utilizing applicable accounting standards, has suffered 
                a material decline;
                    (II) that such association (or its directors or 
                officers) is engaging in an unsafe or unsound practice 
                in conducting the business of the association;
                    (III) that such association is in an unsafe or 
                unsound condition to continue operating as an insured 
                association; or
                    (IV) that such association (or its directors or 
                officers) has violated any applicable law, rule, 
                regulation, or order, or any condition imposed in 
                writing by a Federal banking agency, or any written 
                agreement including a capital improvement plan entered 
                into with any Federal banking agency, or that the 
                association has failed to enter into a capital 
                improvement plan which is acceptable to the Corporation 
                within the time period set forth in section 1464(t) of 
                this title.

          Nothing in this paragraph limits the right of the Corporation 
            or the Director of the Office of Thrift Supervision to 
            enforce a contractual provision which authorizes the 
            Corporation or the Director of the Office of Thrift 
            Supervision, as a successor to the Federal Savings and Loan 
            Insurance Corporation or the Federal Home Loan Bank Board, 
            to require a savings association to write down or amortize 
            goodwill at a faster rate than otherwise required under this 
            chapter or under applicable accounting standards.

        (C) Effective period of temporary order

            Any order issued under subparagraph (A) shall become 
        effective not earlier than 10 days from the date of service upon 
        the institution and, unless set aside, limited, or suspended by 
        a court in proceedings authorized hereunder, such temporary 
        order shall remain effective and enforceable until an order of 
        the Board under paragraph (3) becomes final or until the 
        Corporation dismisses the proceedings under paragraph (3).

        (D) Judicial review

            Before the close of the 10-day period beginning on the date 
        any temporary order has been served upon an insured depository 
        institution under subparagraph (A), such institution may apply 
        to the United States District Court for the District of 
        Columbia, or the United States district court for the judicial 
        district in which the home office of the institution is located, 
        for an injunction setting aside, limiting, or suspending the 
        enforcement, operation, or effectiveness of such order, and such 
        court shall have jurisdiction to issue such injunction.

        (E) Continuation of insurance for prior deposits

            The insured deposits of each depositor in such depository 
        institution on the effective date of the order issued under this 
        paragraph, minus all subsequent withdrawals from any deposits of 
        such depositor, shall continue to be insured, subject to the 
        administrative proceedings as provided in this chapter.

        (F) Publication of order

            The depository institution shall give notice of such order 
        to each of its depositors in such manner and at such times as 
        the Board of Directors may find to be necessary and may order 
        for the protection of depositors.

        (G) Notice by Corporation

            If the Corporation determines that the depository 
        institution has not substantially complied with the notice to 
        depositors required by the Board of Directors, the Corporation 
        may provide such notice in such manner as the Board of Directors 
        may find to be necessary and appropriate.

        (H) Lack of notice

            Notwithstanding subparagraph (A), any deposit made after the 
        effective date of a suspension order issued under this paragraph 
        shall remain insured to the extent that the depositor 
        establishes that--
                (i) such deposit consists of additions made by automatic 
            deposit the depositor was unable to prevent; or
                (ii) such depositor did not have actual knowledge of the 
            suspension of insurance.

             (9) Final decisions to terminate insurance

        Any decision by the Board of Directors to--
            (A) issue a temporary order terminating deposit insurance; 
        or
            (B) issue a final order terminating deposit insurance (other 
        than under subsection (p) or (q) of this section);

    shall be made by the Board of Directors and may not be delegated.

             (10) Low- to moderate-income housing lender

        In making any determination regarding the termination of 
    insurance of a solvent savings association, the Corporation may 
    consider the extent of the association's low- to moderate-income 
    housing loans.

(b) Cease-and-desist proceedings

    (1) If, in the opinion of the appropriate Federal banking agency, 
any insured depository institution, depository institution which has 
insured deposits, or any institution-affiliated party is engaging or has 
engaged, or the agency has reasonable cause to believe that the 
depository institution or any institution-affiliated party is about to 
engage, in an unsafe or unsound practice in conducting the business of 
such depository institution, or is violating or has violated, or the 
agency has reasonable cause to believe that the depository institution 
or any institution-affiliated party is about to violate, a law, rule, or 
regulation, or any condition imposed in writing by the agency in 
connection with the granting of any application or other request by the 
depository institution or any written agreement entered into with the 
agency, the agency may issue and serve upon the depository institution 
or such party a notice of charges in respect thereof. The notice shall 
contain a statement of the facts constituting the alleged violation or 
violations or the unsafe or unsound practice or practices, and shall fix 
a time and place at which a hearing will be held to determine whether an 
order to cease and desist therefrom should issue against the depository 
institution or the institution-affiliated party. Such hearing shall be 
fixed for a date not earlier than thirty days nor later than sixty days 
after service of such notice unless an earlier or a later date is set by 
the agency at the request of any party so served. Unless the party or 
parties so served shall appear at the hearing personally or by a duly 
authorized representative, they shall be deemed to have consented to the 
issuance of the cease-and-desist order. In the event of such consent, or 
if upon the record made at any such hearing, the agency shall find that 
any violation or unsafe or unsound practice specified in the notice of 
charges has been established, the agency may issue and serve upon the 
depository institution or the institution-affiliated party an order to 
cease and desist from any such violation or practice. Such order may, by 
provisions which may be mandatory or otherwise, require the depository 
institution or its institution-affiliated parties to cease and desist 
from the same, and, further, to take affirmative action to correct the 
conditions resulting from any such violation or practice.
    (2) A cease-and-desist order shall become effective at the 
expiration of thirty days after the service of such order upon the 
depository institution or other person concerned (except in the case of 
a cease-and-desist order issued upon consent, which shall become 
effective at the time specified therein), and shall remain effective and 
enforceable as provided therein, except to such extent as it is stayed, 
modified, terminated, or set aside by action of the agency or a 
reviewing court.
    (3) This subsection and subsections (c) through (s) and subsection 
(u) of this section shall apply to any bank holding company, and to any 
subsidiary (other than a bank) of a bank holding company, as those terms 
are defined in the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et 
seq.], and to any organization organized and operated under section 
25(a) \2\ of the Federal Reserve Act [12 U.S.C. 611 et seq.] or 
operating under section 25 of the Federal Reserve Act [12 U.S.C. 601 et 
seq.], in the same manner as they apply to a State member insured bank. 
Nothing in this subsection or in subsection (c) of this section shall 
authorize any Federal banking agency, other than the Board of Governors 
of the Federal Reserve System, to issue a notice of charges or cease-
and-desist order against a bank holding company or any subsidiary 
thereof (other than a bank or subsidiary of that bank).
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    \2\ See References in Text note below.
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    (4) This subsection and subsections (c) through (s) and subsection 
(u) of this section shall apply to any foreign bank or company to which 
subsection (a) of section 3106 of this title applies and to any 
subsidiary (other than a bank) of any such foreign bank or company in 
the same manner as they apply to a bank holding company and any 
subsidiary thereof (other than a bank) under paragraph (3) of this 
subsection. For the purposes of this paragraph, the term ``subsidiary'' 
shall have the meaning assigned to it in section 2 of the Bank Holding 
Company Act of 1956 [12 U.S.C. 1841].
    (5) This section shall apply, in the same manner as it applies to 
any insured depository institution for which the appropriate Federal 
banking agency is the Comptroller of the Currency, to any national 
banking association chartered by the Comptroller of the Currency, 
including an uninsured association.
    (6) Affirmative action to correct conditions resulting from 
violations or practices.--The authority to issue an order under this 
subsection and subsection (c) of this section which requires an insured 
depository institution or any institution-affiliated party to take 
affirmative action to correct or remedy any conditions resulting from 
any violation or practice with respect to which such order is issued 
includes the authority to require such depository institution or such 
party to--
        (A) make restitution or provide reimbursement, indemnification, 
    or guarantee against loss if--
            (i) such depository institution or such party was unjustly 
        enriched in connection with such violation or practice; or
            (ii) the violation or practice involved a reckless disregard 
        for the law or any applicable regulations or prior order of the 
        appropriate Federal banking agency;

        (B) restrict the growth of the institution;
        (C) dispose of any loan or asset involved;
        (D) rescind agreements or contracts; and
        (E) employ qualified officers or employees (who may be subject 
    to approval by the appropriate Federal banking agency at the 
    direction of such agency); and
        (F) take such other action as the banking agency determines to 
    be appropriate.

    (7) Authority to limit activities.--The authority to issue an order 
under this subsection or subsection (c) of this section includes the 
authority to place limitations on the activities or functions of an 
insured depository institution or any institution-affiliated party.
    (8) Unsatisfactory asset quality, management, earnings, or liquidity 
as unsafe or unsound practice.--If an insured depository institution 
receives, in its most recent report of examination, a less-than-
satisfactory rating for asset quality, management, earnings, or 
liquidity, the appropriate Federal banking agency may (if the deficiency 
is not corrected) deem the institution to be engaging in an unsafe or 
unsound practice for purposes of this subsection.
    (9) Expansion of authority to savings and loan affiliates and 
entities.--Subsections (a) through (s) of this section and subsection 
(u) of this section shall apply to any savings and loan holding company 
and to any subsidiary (other than a bank or subsidiary of that bank) of 
a savings and loan holding company,,\3\ whether wholly or partly owned, 
in the same manner as such subsections apply to a savings association.
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    \3\ So in original.
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    (10) Standard for certain orders.--No authority under this 
subsection or subsection (c) of this section to prohibit any 
institution-affiliated party from withdrawing, transferring, removing, 
dissipating, or disposing of any funds, assets, or other property may be 
exercised unless the appropriate Federal banking agency meets the 
standards of Rule 65 of the Federal Rules of Civil Procedure, without 
regard to the requirement of such rule that the applicant show that the 
injury, loss, or damage is irreparable and immediate.

(c) Temporary cease-and-desist orders

    (1) Whenever the appropriate Federal banking agency shall determine 
that the violation or threatened violation or the unsafe or unsound 
practice or practices, specified in the notice of charges served upon 
the depository institution or any institution-affiliated party pursuant 
to paragraph (1) of subsection (b) of this section, or the continuation 
thereof, is likely to cause insolvency or significant dissipation of 
assets or earnings of the depository institution, or is likely to weaken 
the condition of the depository institution or otherwise prejudice the 
interests of its depositors prior to the completion of the proceedings 
conducted pursuant to paragraph (1) of subsection (b) of this section, 
the agency may issue a temporary order requiring the depository 
institution or such party to cease and desist from any such violation or 
practice and to take affirmative action to prevent or remedy such 
insolvency, dissipation, condition, or prejudice pending completion of 
such proceedings. Such order may include any requirement authorized 
under subsection (b)(6) of this section. Such order shall become 
effective upon service upon the depository institution or such 
institution-affiliated party and, unless set aside, limited, or 
suspended by a court in proceedings authorized by paragraph (2) of this 
subsection, shall remain effective and enforceable pending the 
completion of the administrative proceedings pursuant to such notice and 
until such time as the agency shall dismiss the charges specified in 
such notice, or if a cease-and-desist order is issued against the 
depository institution or such party, until the effective date of such 
order.
    (2) Within ten days after the depository institution concerned or 
any institution-affiliated party has been served with a temporary cease-
and-desist order, the depository institution or such party may apply to 
the United States district court for the judicial district in which the 
home office of the depository institution is located, or the United 
States District Court for the District of Columbia, for an injunction 
setting aside, limiting, or suspending the enforcement, operation, or 
effectiveness of such order pending the completion of the administrative 
proceedings pursuant to the notice of charges served upon the depository 
institution or such party under paragraph (1) of subsection (b) of this 
section, and such court shall have jurisdiction to issue such 
injunction.
    (3) Incomplete or inaccurate records.--
        (A) Temporary order.--If a notice of charges served under 
    subsection (b)(1) of this section specifies, on the basis of 
    particular facts and circumstances, that an insured depository 
    institution's books and records are so incomplete or inaccurate that 
    the appropriate Federal banking agency is unable, through the normal 
    supervisory process, to determine the financial condition of that 
    depository institution or the details or purpose of any transaction 
    or transactions that may have a material effect on the financial 
    condition of that depository institution, the agency may issue a 
    temporary order requiring--
            (i) the cessation of any activity or practice which gave 
        rise, whether in whole or in part, to the incomplete or 
        inaccurate state of the books or records; or
            (ii) affirmative action to restore such books or records to 
        a complete and accurate state, until the completion of the 
        proceedings under subsection (b)(1) of this section.

        (B) Effective period.--Any temporary order issued under 
    subparagraph (A)--
            (i) shall become effective upon service; and
            (ii) unless set aside, limited, or suspended by a court in 
        proceedings under paragraph (2), shall remain in effect and 
        enforceable until the earlier of--
                (I) the completion of the proceeding initiated under 
            subsection (b)(1) of this section in connection with the 
            notice of charges; or
                (II) the date the appropriate Federal banking agency 
            determines, by examination or otherwise, that the insured 
            depository institution's books and records are accurate and 
            reflect the financial condition of the depository 
            institution.

(d) Temporary cease-and-desist orders; enforcement

    In the case of violation or threatened violation of, or failure to 
obey, a temporary cease-and-desist order issued pursuant to paragraph 
(1) of subsection (c) of this section, the appropriate Federal banking 
agency may apply to the United States district court, or the United 
States court of any territory, within the jurisdiction of which the home 
office of the depository institution is located, for an injunction to 
enforce such order, and, if the court shall determine that there has 
been such violation or threatened violation or failure to obey, it shall 
be the duty of the court to issue such injunction.

(e) Removal and prohibition authority

    (1) Authority to issue order.--Whenever the appropriate Federal 
banking agency determines that--
        (A) any institution-affiliated party has, directly or 
    indirectly--
            (i) violated--
                (I) any law or regulation;
                (II) any cease-and-desist order which has become final;
                (III) any condition imposed in writing by the 
            appropriate Federal banking agency in connection with the 
            grant of any application or other request by such depository 
            institution; or
                (IV) any written agreement between such depository 
            institution and such agency;

            (ii) engaged or participated in any unsafe or unsound 
        practice in connection with any insured depository institution 
        or business institution; or
            (iii) committed or engaged in any act, omission, or practice 
        which constitutes a breach of such party's fiduciary duty;

        (B) by reason of the violation, practice, or breach described in 
    any clause of subparagraph (A)--
            (i) such insured depository institution or business 
        institution has suffered or will probably suffer financial loss 
        or other damage;
            (ii) the interests of the insured depository institution's 
        depositors have been or could be prejudiced; or
            (iii) such party has received financial gain or other 
        benefit by reason of such violation, practice, or breach; and

        (C) such violation, practice, or breach--
            (i) involves personal dishonesty on the part of such party; 
        or
            (ii) demonstrates willful or continuing disregard by such 
        party for the safety or soundness of such insured depository 
        institution or business institution,

the agency may serve upon such party a written notice of the agency's 
intention to remove such party from office or to prohibit any further 
participation by such party, in any manner, in the conduct of the 
affairs of any insured depository institution.
    (2) Specific violations.--
        (A) In general.--Whenever the appropriate Federal banking agency 
    determines that--
            (i) an institution-affiliated party has committed a 
        violation of any provision of subchapter II of chapter 53 of 
        title 31 and such violation was not inadvertent or 
        unintentional;
            (ii) an officer or director of an insured depository 
        institution has knowledge that an institution-affiliated party 
        of the insured depository institution has violated any such 
        provision or any provision of law referred to in subsection 
        (g)(1)(A)(ii) of this section; or
            (iii) an officer or director of an insured depository 
        institution has committed any violation of the Depository 
        Institution Management Interlocks Act [12 U.S.C. 3201 et seq.],

    the agency may serve upon such party, officer, or director a written 
    notice of the agency's intention to remove such party from office.
        (B) Factors to be considered.--In determining whether an officer 
    or director should be removed as a result of the application of 
    subparagraph (A)(ii), the agency shall consider whether the officer 
    or director took appropriate action to stop, or to prevent the 
    recurrence of, a violation described in such subparagraph.

    (3) Suspension order.--
        (A) Suspension or prohibition authorized.--If the appropriate 
    Federal banking agency serves written notice under paragraph (1) or 
    (2) to any institution-affiliated party of such agency's intention 
    to issue an order under such paragraph, the appropriate Federal 
    banking agency may suspend such party from office or prohibit such 
    party from further participation in any manner in the conduct of the 
    affairs of the depository institution, if the agency--
            (i) determines that such action is necessary for the 
        protection of the depository institution or the interests of the 
        depository institution's depositors; and
            (ii) serves such party with written notice of the suspension 
        order.

        (B) Effective period.--Any suspension order issued under 
    subparagraph (A)--
            (i) shall become effective upon service; and
            (ii) unless a court issues a stay of such order under 
        subsection (f) of this section, shall remain in effect and 
        enforceable until--
                (I) the date the appropriate Federal banking agency 
            dismisses the charges contained in the notice served under 
            paragraph (1) or (2) with respect to such party; or
                (II) the effective date of an order issued by the agency 
            to such party under paragraph (1) or (2).

        (C) Copy of order.--If an appropriate Federal banking agency 
    issues a suspension order under subparagraph (A) to any institution-
    affiliated party, the agency shall serve a copy of such order on any 
    insured depository institution with which such party is associated 
    at the time such order is issued.

    (4) A notice of intention to remove an institution-affiliated party 
from office or to prohibit such party from participating in the conduct 
of the affairs of an insured depository institution, shall contain a 
statement of the facts constituting grounds therefor, and shall fix a 
time and place at which a hearing will be held thereon. Such hearing 
shall be fixed for a date not earlier than thirty days nor later than 
sixty days after the date of service of such notice, unless an earlier 
or a later date is set by the agency at the request of (A) such party, 
and for good cause shown, or (B) the Attorney General of the United 
States. Unless such party shall appear at the hearing in person or by a 
duly authorized representative, such party shall be deemed to have 
consented to the issuance of an order of such removal or prohibition. In 
the event of such consent, or if upon the record made at any such 
hearing the agency shall find that any of the grounds specified in such 
notice have been established, the agency may issue such orders of 
suspension or removal from office, or prohibition from participation in 
the conduct of the affairs of the depository institution, as it may deem 
appropriate. In any action brought under this section by the Comptroller 
of the Currency in respect to any such party with respect to a national 
banking association or a District depository institution, the findings 
and conclusions of the Administrative Law Judge shall be certified to 
the Board of Governors of the Federal Reserve System for the 
determination of whether any order shall issue. Any such order shall 
become effective at the expiration of thirty days after service upon 
such depository institution and such party concerned (except in the case 
of an order issued upon consent, which shall become effective at the 
time specified therein). Such order shall remain effective and 
enforceable except to such extent as it is stayed, modified, terminated, 
or set aside by action of the agency or a reviewing court.
    (5) For the purpose of enforcing any law, rule, regulation, or 
cease-and-desist order in connection with an interlocking relationship, 
the term ``officer'' within the term ``institution-affiliated party'' as 
used in this subsection means an employee or officer with management 
functions, and the term ``director'' within the term ``institution-
affiliated party'' as used in this subsection includes an advisory or 
honorary director, a trustee of a depository institution under the 
control of trustees, or any person who has a representative or nominee 
serving in any such capacity.
    (6) Prohibition of certain specific activities.--Any person subject 
to an order issued under this subsection shall not--
        (A) participate in any manner in the conduct of the affairs of 
    any institution or agency specified in paragraph (7)(A);
        (B) solicit, procure, transfer, attempt to transfer, vote, or 
    attempt to vote any proxy, consent, or authorization with respect to 
    any voting rights in any institution described in subparagraph (A);
        (C) violate any voting agreement previously approved by the 
    appropriate Federal banking agency; or
        (D) vote for a director, or serve or act as an institution-
    affiliated party.

    (7) Industrywide Prohibition.--
        (A) In general.--Except as provided in subparagraph (B), any 
    person who, pursuant to an order issued under this subsection or 
    subsection (g) of this section, has been removed or suspended from 
    office in an insured depository institution or prohibited from 
    participating in the conduct of the affairs of an insured depository 
    institution may not, while such order is in effect, continue or 
    commence to hold any office in, or participate in any manner in the 
    conduct of the affairs of--
            (i) any insured depository institution;
            (ii) any institution treated as an insured bank under 
        subsection (b)(3) or (b)(4) of this section, or as a savings 
        association under subsection (b)(9) of this section;
            (iii) any insured credit union under the Federal Credit 
        Union Act [12 U.S.C. 1751 et seq.];
            (iv) any institution chartered under the Farm Credit Act of 
        1971 [12 U.S.C. 2001 et seq.];
            (v) any appropriate Federal depository institution 
        regulatory agency;
            (vi) the Federal Housing Finance Board and any Federal home 
        loan bank; and
            (vii) the Resolution Trust Corporation.

        (B) Exception if agency provides written consent.--If, on or 
    after the date an order is issued under this subsection which 
    removes or suspends from office any institution-affiliated party or 
    prohibits such party from participating in the conduct of the 
    affairs of an insured depository institution, such party receives 
    the written consent of--
            (i) the agency that issued such order; and
            (ii) the appropriate Federal financial institutions 
        regulatory agency of the institution described in any clause of 
        subparagraph (A) with respect to which such party proposes to 
        become an institution-affiliated party,

    subparagraph (A) shall, to the extent of such consent, cease to 
    apply to such party with respect to the institution described in 
    each written consent. Any agency that grants such a written consent 
    shall report such action to the Corporation and publicly disclose 
    such consent.
        (C) Violation of paragraph treated as violation of order.--Any 
    violation of subparagraph (A) by any person who is subject to an 
    order described in such subparagraph shall be treated as a violation 
    of the order.
        (D) ``Appropriate federal financial institutions regulatory 
    agency'' defined.--For purposes of this paragraph and subsection (j) 
    of this section, the term ``appropriate Federal financial 
    institutions regulatory agency'' means--
            (i) the appropriate Federal banking agency, in the case of 
        an insured depository institution;
            (ii) the Farm Credit Administration, in the case of an 
        institution chartered under the Farm Credit Act of 1971 [12 
        U.S.C. 2001 et seq.];
            (iii) the National Credit Union Administration Board, in the 
        case of an insured credit union (as defined in section 101(7) of 
        the Federal Credit Union Act [12 U.S.C. 1752(7)]);
            (iv) the Secretary of the Treasury, in the case of the 
        Federal Housing Finance Board and any Federal home loan bank; 
        and
            (v) the Thrift Depositor Protection Oversight Board, in the 
        case of the Resolution Trust Corporation.

        (E) Consultation between agencies.--The agencies referred to in 
    clauses (i) and (ii) of subparagraph (B) shall consult with each 
    other before providing any written consent described in subparagraph 
    (B).
        (F) Applicability.--This paragraph shall only apply to a person 
    who is an individual, unless the appropriate Federal banking agency 
    specifically finds that it should apply to a corporation, firm, or 
    other business enterprise.

(f) Stay of suspension and/or prohibition of institution-affiliated 
        party

    Within ten days after any institution-affiliated party has been 
suspended from office and/or prohibited from participation in the 
conduct of the affairs of an insured depository institution under 
subsection (e)(3) of this section, such party may apply to the United 
States district court for the judicial district in which the home office 
of the depository institution is located, or the United States District 
Court for the District of Columbia, for a stay of such suspension and/or 
prohibition pending the completion of the administrative proceedings 
pursuant to the notice served upon such party under subsection (e)(1) or 
(e)(2) of this section, and such court shall have jurisdiction to stay 
such suspension and/or prohibition.

(g) Suspension or removal of institution-affiliated party charged with 
        felony

    (1) Suspension or prohibition.--
        (A) In general.--Whenever any institution-affiliated party is 
    charged in any information, indictment, or complaint, with the 
    commission of or participation in--
            (i) a crime involving dishonesty or breach of trust which is 
        punishable by imprisonment for a term exceeding one year under 
        State or Federal law, or
            (ii) a criminal violation of section 1956, 1957, or 1960 of 
        title 18 or section 5322 or 5324 of title 31,

    the appropriate Federal banking agency may, if continued service or 
    participation by such party may pose a threat to the interests of 
    the depository institution's depositors or may threaten to impair 
    public confidence in the depository institution, by written notice 
    served upon such party, suspend such party from office or prohibit 
    such party from further participation in any manner in the conduct 
    of the affairs of the depository institution.
        (B) Provisions applicable to notice.--
            (i) Copy.--A copy of any notice under subparagraph (A) shall 
        also be served upon the depository institution.
            (ii) Effective period.--A suspension or prohibition under 
        subparagraph (A) shall remain in effect until the information, 
        indictment, or complaint referred to in such subparagraph is 
        finally disposed of or until terminated by the agency.

        (C) Removal or prohibition.--
            (i) In general.--If a judgment of conviction or an agreement 
        to enter a pretrial diversion or other similar program is 
        entered against an institution-affiliated party in connection 
        with a crime described in subparagraph (A)(i), at such time as 
        such judgment is not subject to further appellate review, the 
        appropriate Federal banking agency may, if continued service or 
        participation by such party may pose a threat to the interests 
        of the depository institution's depositors or may threaten to 
        impair public confidence in the depository institution, issue 
        and serve upon such party an order removing such party from 
        office or prohibiting such party from further participation in 
        any manner in the conduct of the affairs of the depository 
        institution without the prior written consent of the appropriate 
        agency.
            (ii) Required for certain offenses.--In the case of a 
        judgment of conviction or agreement against an institution-
        affiliated party in connection with a violation described in 
        subparagraph (A)(ii), the appropriate Federal banking agency 
        shall issue and serve upon such party an order removing such 
        party from office or prohibiting such party from further 
        participation in any manner in the conduct of the affairs of the 
        depository institution without the prior written consent of the 
        appropriate agency.

        (D) Provisions applicable to order.--
            (i) Copy.--A copy of any order under subparagraph (C) shall 
        also be served upon the depository institution, whereupon the 
        institution-affiliated party who is subject to the order (if a 
        director or an officer) shall cease to be a director or officer 
        of such depository institution.
            (ii) Effect of acquittal.--A finding of not guilty or other 
        disposition of the charge shall not preclude the agency from 
        instituting proceedings after such finding or disposition to 
        remove such party from office or to prohibit further 
        participation in depository institution affairs, pursuant to 
        paragraph (1), (2), or (3) of subsection (e) of this section.
            (iii) Effective period.--Any notice of suspension or order 
        of removal issued under this paragraph shall remain effective 
        and outstanding until the completion of any hearing or appeal 
        authorized under paragraph (3) unless terminated by the agency.

    (2) If at any time, because of the suspension of one or more 
directors pursuant to this section, there shall be on the board of 
directors of a national bank less than a quorum of directors not so 
suspended, all powers and functions vested in or exercisable by such 
board shall vest in and be exercisable by the director or directors on 
the board not so suspended, until such time as there shall be a quorum 
of the board of directors. In the event all of the directors of a 
national bank are suspended pursuant to this section, the Comptroller of 
the Currency shall appoint persons to serve temporarily as directors in 
their place and stead pending the termination of such suspensions, or 
until such time as those who have been suspended, cease to be directors 
of the bank and their respective successors take office.
    (3) Within thirty days from service of any notice of suspension or 
order of removal issued pursuant to paragraph (1) of this subsection, 
the institution-affiliated party concerned may request in writing an 
opportunity to appear before the agency to show that the continued 
service to or participation in the conduct of the affairs of the 
depository institution by such party does not, or is not likely to, pose 
a threat to the interests of the bank's \4\ depositors or threaten to 
impair public confidence in the depository institution. Upon receipt of 
any such request, the appropriate Federal banking agency shall fix a 
time (not more than thirty days after receipt of such request, unless 
extended at the request of such party) and place at which such party may 
appear, personally or through counsel, before one or more members of the 
agency or designated employees of the agency to submit written materials 
(or, at the discretion of the agency, oral testimony) and oral argument. 
Within sixty days of such hearing, the agency shall notify such party 
whether the suspension or prohibition from participation in any manner 
in the conduct of the affairs of the depository institution will be 
continued, terminated, or otherwise modified, or whether the order 
removing such party from office or prohibiting such party from further 
participation in any manner in the conduct of the affairs of the 
depository institution will be rescinded or otherwise modified. Such 
notification shall contain a statement of the basis for the agency's 
decision, if adverse to such party. The Federal banking agencies are 
authorized to prescribe such rules as may be necessary to effectuate the 
purposes of this subsection.
---------------------------------------------------------------------------
    \4\ So in original. Probably should be ``depository institution's''.
---------------------------------------------------------------------------

(h) Hearings and judicial review

    (1) Any hearing provided for in this section (other than the hearing 
provided for in subsection (g)(3) of this section) shall be held in the 
Federal judicial district or in the territory in which the home office 
of the depository institution is located unless the party afforded the 
hearing consents to another place, and shall be conducted in accordance 
with the provisions of chapter 5 of title 5. After such hearing, and 
within ninety days after the appropriate Federal banking agency or Board 
of Governors of the Federal Reserve System has notified the parties that 
the case has been submitted to it for final decision, it shall render 
its decision (which shall include findings of fact upon which its 
decision is predicated) and shall issue and serve upon each party to the 
proceeding an order or orders consistent with the provisions of this 
section. Judicial review of any such order shall be exclusively as 
provided in this subsection (h). Unless a petition for review is timely 
filed in a court of appeals of the United States, as hereinafter 
provided in paragraph (2) of this subsection, and thereafter until the 
record in the proceeding has been filed as so provided, the issuing 
agency may at any time, upon such notice and in such manner as it shall 
deem proper, modify, terminate, or set aside any such order. Upon such 
filing of the record, the agency may modify, terminate, or set aside any 
such order with permission of the court.
    (2) Any party to any proceeding under paragraph (1) may obtain a 
review of any order served pursuant to paragraph (1) of this subsection 
(other than an order issued with the consent of the depository 
institution or the institution-affiliated party concerned, or an order 
issued under paragraph (1) of subsection (g) of this section) by the 
filing in the court of appeals of the United States for the circuit in 
which the home office of the depository institution is located, or in 
the United States Court of Appeals for the District of Columbia Circuit, 
within thirty days after the date of service of such order, a written 
petition praying that the order of the agency be modified, terminated, 
or set aside. A copy of such petition shall be forthwith transmitted by 
the clerk of the court to the agency, and thereupon the agency shall 
file in the court the record in the proceeding, as provided in section 
2112 of title 28. Upon the filing of such petition, such court shall 
have jurisdiction, which upon the filing of the record shall except as 
provided in the last sentence of said paragraph (1) be exclusive, to 
affirm, modify, terminate, or set aside, in whole or in part, the order 
of the agency. Review of such proceedings shall be had as provided in 
chapter 7 of title 5. The judgment and decree of the court shall be 
final, except that the same shall be subject to review by the Supreme 
Court upon certiorari, as provided in section 1254 of title 28.
    (3) The commencement of proceedings for judicial review under 
paragraph (2) of this subsection shall not, unless specifically ordered 
by the court, operate as a stay of any order issued by the agency.

(i) Jurisdiction and enforcement; penalty

    (1) The appropriate Federal banking agency may in its discretion 
apply to the United States district court, or the United States court of 
any territory, within the jurisdiction of which the home office of the 
depository institution is located, for the enforcement of any effective 
and outstanding notice or order issued under this section or under 
section 1831o or 1831p-1 of this title, and such courts shall have 
jurisdiction and power to order and require compliance herewith; but 
except as otherwise provided in this section or under section 1831o or 
1831p-1 of this title no court shall have jurisdiction to affect by 
injunction or otherwise the issuance or enforcement of any notice or 
order under any such section, or to review, modify, suspend, terminate, 
or set aside any such notice or order.
    (2) Civil money penalty.--
        (A) First tier.--Any insured depository institution which, and 
    any institution-affiliated party who--
            (i) violates any law or regulation;
            (ii) violates any final order or temporary order issued 
        pursuant to subsection (b), (c), (e), (g), or (s) of this 
        section or any final order under section 1831o or 1831p-1 of 
        this title;
            (iii) violates any condition imposed in writing by the 
        appropriate Federal banking agency in connection with the grant 
        of any application or other request by such depository 
        institution; or
            (iv) violates any written agreement between such depository 
        institution and such agency,

    shall forfeit and pay a civil penalty of not more than $5,000 for 
    each day during which such violation continues.
        (B) Second tier.--Notwithstanding subparagraph (A), any insured 
    depository institution which, and any institution-affiliated party 
    who--
            (i)(I) commits any violation described in any clause of 
        subparagraph (A);
            (II) recklessly engages in an unsafe or unsound practice in 
        conducting the affairs of such insured depository institution; 
        or
            (III) breaches any fiduciary duty;
            (ii) which violation, practice, or breach--
                (I) is part of a pattern of misconduct;
                (II) causes or is likely to cause more than a minimal 
            loss to such depository institution; or
                (III) results in pecuniary gain or other benefit to such 
            party,

    shall forfeit and pay a civil penalty of not more than $25,000 for 
    each day during which such violation, practice, or breach continues.
        (C) Third tier.--Notwithstanding subparagraphs (A) and (B), any 
    insured depository institution which, and any institution-affiliated 
    party who--
            (i) knowingly--
                (I) commits any violation described in any clause of 
            subparagraph (A);
                (II) engages in any unsafe or unsound practice in 
            conducting the affairs of such depository institution; or
                (III) breaches any fiduciary duty; and

            (ii) knowingly or recklessly causes a substantial loss to 
        such depository institution or a substantial pecuniary gain or 
        other benefit to such party by reason of such violation, 
        practice, or breach,

    shall forfeit and pay a civil penalty in an amount not to exceed the 
    applicable maximum amount determined under subparagraph (D) for each 
    day during which such violation, practice, or breach continues.
        (D) Maximum amounts of penalties for any violation described in 
    subparagraph (c).--The maximum daily amount of any civil penalty 
    which may be assessed pursuant to subparagraph (C) for any 
    violation, practice, or breach described in such subparagraph is--
            (i) in the case of any person other than an insured 
        depository institution, an amount to not exceed $1,000,000; and
            (ii) in the case of any insured depository institution, an 
        amount not to exceed the lesser of--
                (I) $1,000,000; or
                (II) 1 percent of the total assets of such institution.

        (E) Assessment.--
            (i) Written notice.--Any penalty imposed under subparagraph 
        (A), (B), or (C) may be assessed and collected by the 
        appropriate Federal banking agency by written notice.
            (ii) Finality of assessment.--If, with respect to any 
        assessment under clause (i), a hearing is not requested pursuant 
        to subparagraph (H) within the period of time allowed under such 
        subparagraph, the assessment shall constitute a final and 
        unappealable order.

        (F) Authority to modify or remit penalty.--Any appropriate 
    Federal banking agency may compromise, modify, or remit any penalty 
    which such agency may assess or had already assessed under 
    subparagraph (A), (B), or (C).
        (G) Mitigating factors.--In determining the amount of any 
    penalty imposed under subparagraph (A), (B), or (C), the appropriate 
    agency shall take into account the appropriateness of the penalty 
    with respect to--
            (i) the size of financial resources and good faith of the 
        insured depository institution or other person charged;
            (ii) the gravity of the violation;
            (iii) the history of previous violations; and
            (iv) such other matters as justice may require.

        (H) Hearing.--The insured depository institution or other person 
    against whom any penalty is assessed under this paragraph shall be 
    afforded an agency hearing if such institution or person submits a 
    request for such hearing within 20 days after the issuance of the 
    notice of assessment.
        (I) Collection.--
            (i) Referral.--If any insured depository institution or 
        other person fails to pay an assessment after any penalty 
        assessed under this paragraph has become final, the agency that 
        imposed the penalty shall recover the amount assessed by action 
        in the appropriate United States district court.
            (ii) Appropriateness of penalty not reviewable.--In any 
        civil action under clause (i), the validity and appropriateness 
        of the penalty shall not be subject to review.

        (J) Disbursement.--All penalties collected under authority of 
    this paragraph shall be deposited into the Treasury.
        (K) Regulations.--Each appropriate Federal banking agency shall 
    prescribe regulations establishing such procedures as may be 
    necessary to carry out this paragraph.

    (3) Notice under this section after separation from service.--The 
resignation, termination of employment or participation, or separation 
of a institution-affiliated party (including a separation caused by the 
closing of an insured depository institution) shall not affect the 
jurisdiction and authority of the appropriate Federal banking agency to 
issue any notice and proceed under this section against any such party, 
if such notice is served before the end of the 6-year period beginning 
on the date such party ceased to be such a party with respect to such 
depository institution (whether such date occurs before, on, or after 
August 9, 1989).
    (4) Prejudgment attachment.--
        (A) In general.--In any action brought by an appropriate Federal 
    banking agency (excluding the Corporation when acting in a manner 
    described in section 1821(d)(18) of this title) pursuant to this 
    section, or in actions brought in aid of, or to enforce an order in, 
    any administrative or other civil action for money damages, 
    restitution, or civil money penalties brought by such agency, the 
    court may, upon application of the agency, issue a restraining order 
    that--
            (i) prohibits any person subject to the proceeding from 
        withdrawing, transferring, removing, dissipating, or disposing 
        of any funds, assets or other property; and
            (ii) appoints a temporary receiver to administer the 
        restraining order.

        (B) Standard.--
            (i) Showing.--Rule 65 of the Federal Rules of Civil 
        Procedure shall apply with respect to any proceeding under 
        subparagraph (A) without regard to the requirement of such rule 
        that the applicant show that the injury, loss, or damage is 
        irreparable and immediate.
            (ii) State proceeding.--If, in the case of any proceeding in 
        a State court, the court determines that rules of civil 
        procedure available under the laws of such State provide 
        substantially similar protections to a party's right to due 
        process as Rule 65 (as modified with respect to such proceeding 
        by clause (i)), the relief sought under subparagraph (A) may be 
        requested under the laws of such State.

(j) Criminal penalty

    Whoever, being subject to an order in effect under subsection (e) or 
(g) of this section, without the prior written approval of the 
appropriate Federal financial institutions regulatory agency, knowingly 
participates, directly or indirectly, in any manner (including by 
engaging in an activity specifically prohibited in such an order or in 
subsection (e)(6) of this section) in the conduct of the affairs of--
        (1) any insured depository institution;
        (2) any institution treated as an insured bank under subsection 
    (b)(3) or (b)(4) of this section, or as a savings association under 
    subsection (b)(9) of this section;
        (3) any insured credit union (as defined in section 101(7) of 
    the Federal Credit Union Act [12 U.S.C. 1752(7)]);
        (4) any institution chartered under the Farm Credit Act of 1971 
    [12 U.S.C. 2001 et seq.]; or
        (5) the Resolution Trust Corporation,

shall be fined not more than $1,000,000, imprisoned for not more than 5 
years, or both.

(k) Repealed. Pub. L. 101-73, title IX, Sec. 920(c), Aug. 9, 1989, 103 
        Stat. 488

(l) Notice of service

    Any service required or authorized to be made by the appropriate 
Federal banking agency under this section may be made by registered 
mail, or in such other manner reasonably calculated to give actual 
notice as the agency may by regulation or otherwise provide. Copies of 
any notice or order served by the agency upon any State depository 
institution or any institution-affiliated party, pursuant to the 
provisions of this section, shall also be sent to the appropriate State 
supervisory authority.

(m) Notice to State authorities

    In connection with any proceeding under subsection (b), (c)(1), or 
(e) of this section involving an insured State bank or any institution-
affiliated party, the appropriate Federal banking agency shall provide 
the appropriate State supervisory authority with notice of the agency's 
intent to institute such a proceeding and the grounds therefor. Unless 
within such time as the Federal banking agency deems appropriate in the 
light of the circumstances of the case (which time must be specified in 
the notice prescribed in the preceding sentence) satisfactory corrective 
action is effectuated by action of the State supervisory authority, the 
agency may proceed as provided in this section. No bank or other party 
who is the subject of any notice or order issued by the agency under 
this section shall have standing to raise the requirements of this 
subsection as ground for attacking the validity of any such notice or 
order.

(n) Ancillary provisions; subpena power, etc.

    In the course of or in connection with any proceeding under this 
section, or in connection with any claim for insured deposits or any 
examination or investigation under section 1820(c) of this title, the 
agency conducting the proceeding, examination, or investigation or 
considering the claim for insured deposits, or any member or designated 
representative thereof, including any person designated to conduct any 
hearing under this section, shall have the power to administer oaths and 
affirmations, to take or cause to be taken depositions, and to issue, 
revoke, quash, or modify subpenas and subpenas duces tecum; and such 
agency is empowered to make rules and regulations with respect to any 
such proceedings, claims, examinations, or investigations. The 
attendance of witnesses and the production of documents provided for in 
this subsection 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 proceeding is being conducted. 
Any such agency or any party to proceedings under this section may apply 
to the United States District Court for the District of Columbia, or the 
United States district court for the judicial district or the United 
States court in any territory in which such proceeding is being 
conducted, or where the witness resides or carries on business, for 
enforcement of any subpena or subpena duces tecum issued pursuant to 
this subsection, and such courts shall have jurisdiction and power to 
order and require compliance therewith. Witnesses subpenaed under this 
subsection shall be paid the same fees and mileage that are paid 
witnesses in the district courts of the United States. Any court having 
jurisdiction of any proceeding instituted under this section by an 
insured depository institution or a director or officer thereof, may 
allow to any such party such reasonable expenses and attorneys' fees as 
it deems just and proper; and such expenses and fees shall be paid by 
the depository institution or from its assets. Any person who willfully 
shall fail or refuse to attend and testify or to answer any lawful 
inquiry or to produce books, papers, correspondence, memoranda, 
contracts, agreements, or other records, if in such person's power so to 
do, in obedience to the subpoena of the appropriate Federal banking 
agency, shall be guilty of a misdemeanor and, upon conviction, shall be 
subject to a fine of not more than $1,000 or to imprisonment for a term 
of not more than one year or both.

(o) Termination of membership of State bank in Federal Reserve System

    Whenever the insured status of a State member bank shall be 
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 subchapter 
VIII of chapter 3 of this title, 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 (c) or (d) of section 1814 
of this title, whenever a member bank shall cease to be a member of the 
Federal Reserve System, its status as an insured depository institution 
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. Whenever the insured status of an 
insured Federal savings bank shall be terminated by action of the Board 
of Directors, the Director of the Office of Thrift Supervision shall 
appoint a receiver for the bank, which shall be the Corporation.

(p) Banks not receiving deposits

    Notwithstanding any other provision of law, whenever the Board of 
Directors shall determine that an insured depository institution is not 
engaged in the business of receiving deposits, other than trust funds as 
herein defined, the Corporation shall notify the depository 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 depository 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 depository institution of such termination and the 
Corporation may publish notice thereof. Upon the termination of the 
insured status of any such depository institution, its deposits shall 
thereupon cease to be insured and the depository institution shall 
thereafter be relieved of all future obligations to the Corporation, 
including the obligation to pay future assessments.

(q) Assumption of liabilities

    Whenever the liabilities of an insured depository institution for 
deposits shall have been assumed by another insured depository 
institution or depository institutions, whether by way of merger, 
consolidation, or other statutory assumption, or pursuant to contract 
(1) the insured status of the depository institution whose liabilities 
are so assumed shall terminate on the date of receipt by the Corporation 
of satisfactory evidence of such assumption; (2) the separate insurance 
of all deposits so assumed shall terminate at the end of six months from 
the date such assumption takes effect or, in the case of any time 
deposit, the earliest maturity date after the six-month period. Where 
the deposits of an insured depository institution are assumed by a newly 
insured depository institution, the depository institution whose 
deposits are assumed shall not be required to pay any assessment with 
respect to the deposits which have been so assumed after the semiannual 
period in which the assumption takes effect.

(r) Action or proceeding against foreign bank; basis; removal of officer 
        or other person; venue; service of process

    (1) Except as otherwise specifically provided in this section, the 
provisions of this section shall be applied to foreign banks in 
accordance with this subsection.
    (2) An act or practice outside the United States on the part of a 
foreign bank or any officer, director, employee, or agent thereof may 
not constitute the basis for any action by any officer or agency of the 
United States under this section, unless--
        (A) such officer or agency alleges a belief that such act or 
    practice has been, is, or is likely to be a cause of or carried on 
    in connection with or in furtherance of an act or practice within 
    any one or more States which, in and of itself, would constitute an 
    appropriate basis for action by a Federal officer or agency under 
    this section; or
        (B) the alleged act or practice is one which, if proven, would, 
    in the judgment of the Board of Directors, adversely affect the 
    insurance risk assumed by the Corporation.

    (3) In any case in which any action or proceeding is brought 
pursuant to an allegation under paragraph (2) of this subsection for the 
suspension or removal of any officer, director, or other person 
associated with a foreign bank, and such person fails to appear promptly 
as a party to such action or proceeding and to comply with any effective 
order or judgment therein, any failure by the foreign bank to secure his 
removal from any office he holds in such bank and from any further 
participation in its affairs shall, in and of itself, constitute grounds 
for termination of the insurance of the deposits in any branch of the 
bank.
    (4) Where the venue of any judicial or administrative proceeding 
under this section is to be determined by reference to the location of 
the home office of a bank, the venue of such a proceeding with respect 
to a foreign bank having one or more branches or agencies in not more 
than one judicial district or other relevant jurisdiction shall be 
within such jurisdiction. Where such a bank has branches or agencies in 
more than one such jurisdiction, the venue shall be in the jurisdiction 
within which the branch or branches or agency or agencies involved in 
the proceeding are located, and if there is more than one such 
jurisdiction, the venue shall be proper in any such jurisdiction in 
which the proceeding is brought or to which it may appropriately be 
transferred.
    (5) Any service required or authorized to be made on a foreign bank 
may be made on any branch or agency located within any State, but if 
such service is in connection with an action or proceeding involving one 
or more branches or one or more agencies located in any State, service 
shall be made on at least one branch or agency so involved.

 (s)Compliance with monetary transaction recordkeeping and report 
        requirements

                 (1) Compliance procedures required

        Each appropriate Federal banking agency shall prescribe 
    regulations requiring insured depository institutions to establish 
    and maintain procedures reasonably designed to assure and monitor 
    the compliance of such depository institutions with the requirements 
    of subchapter II of chapter 53 of title 31.

    (2) Examinations of depository institution to include review 
                          of compliance procedures

        (A) In general

            Each examination of an insured depository institution by the 
        appropriate Federal banking agency shall include a review of the 
        procedures required to be established and maintained under 
        paragraph (1).

        (B) Exam report requirement

            The report of examination shall describe any problem with 
        the procedures maintained by the insured depository institution.

                (3) Order to comply with requirements

        If the appropriate Federal banking agency determines that an 
    insured depository institution--
            (A) has failed to establish and maintain the procedures 
        described in paragraph (1); or
            (B) has failed to correct any problem with the procedures 
        maintained by such depository institution which was previously 
        reported to the depository institution by such agency,

    the agency shall issue an order in the manner prescribed in 
    subsection (b) or (c) of this section requiring such depository 
    institution to cease and desist from its violation of this 
    subsection or regulations prescribed under this subsection.

(t) Authority of FDIC to take enforcement action against insured 
        depository institutions and institution-affiliated parties

       (1) Recommending action by appropriate Federal banking 
                                   agency

        The Corporation, based on an examination of an insured 
    depository institution by the Corporation or by the appropriate 
    Federal banking agency or on other information, may recommend in 
    writing to the appropriate Federal banking agency that the agency 
    take any enforcement action authorized under section 1817(j) of this 
    title, this section, or section 1828(j) of this title with respect 
    to any insured depository institution or any institution-affiliated 
    party. The recommendation shall be accompanied by a written 
    explanation of the concerns giving rise to the recommendation.

     (2) FDIC's authority to act if appropriate Federal banking 
                    agency fails to follow recommendation

        If the appropriate Federal banking agency does not, before the 
    end of the 60-day period beginning on the date on which the agency 
    receives the recommendation under paragraph (1), take the 
    enforcement action recommended by the Corporation or provide a plan 
    acceptable to the Corporation for responding to the Corporation's 
    concerns, the Corporation may take the recommended enforcement 
    action if the Board of Directors determines, upon a vote of its 
    members, that--
            (A) the insured depository institution is in an unsafe or 
        unsound condition;
            (B) the institution or institution-affiliated party is 
        engaging in unsafe or unsound practices, and the recommended 
        enforcement action will prevent the institution or institution-
        affiliated party from continuing such practices; or
            (C) the conduct or threatened conduct (including any acts or 
        omissions) poses a risk to the deposit insurance fund, or may 
        prejudice the interests of the institution's depositors.

                 (3) Effect of exigent circumstances

        (A) Authority to act

            The Corporation may, upon a vote of the Board of Directors, 
        and after notice to the appropriate Federal banking agency, 
        exercise its authority under paragraph (2) in exigent 
        circumstances without regard to the time period set forth in 
        paragraph (2).

        (B) Agreement on exigent circumstances

            The Corporation shall, by agreement with the appropriate 
        Federal banking agency, set forth those exigent circumstances in 
        which the Corporation may act under subparagraph (A).

           (4) Corporation's powers; institution's duties

        For purposes of this subsection--
            (A) the Corporation shall have the same powers with respect 
        to any insured depository institution and its affiliates as the 
        appropriate Federal banking agency has with respect to the 
        institution and its affiliates; and
            (B) the institution and its affiliates shall have the same 
        duties and obligations with respect to the Corporation as the 
        institution and its affiliates have with respect to the 
        appropriate Federal banking agency.

         (5) Requests for formal actions and investigations

        (A) Submission of requests

            A regional office of an appropriate Federal banking agency 
        (including a Federal Reserve bank) that requests a formal 
        investigation of or civil enforcement action against an insured 
        depository institution or institution-affiliated party shall 
        submit the request concurrently to the chief officer of the 
        appropriate Federal banking agency and to the Corporation.

        (B) Agencies required to report on requests

            Each appropriate Federal banking agency shall report 
        semiannually to the Corporation on the status or disposition of 
        all requests under subparagraph (A), including the reasons for 
        any decision by the agency to approve or deny such requests.

(u) Public disclosures of final orders and agreements

                           (1) In general

        The appropriate Federal banking agency shall publish and make 
    available to the public on a monthly basis--
            (A) any written agreement or other written statement for 
        which a violation may be enforced by the appropriate Federal 
        banking agency, unless the appropriate Federal banking agency, 
        in its discretion, determines that publication would be contrary 
        to the public interest;
            (B) any final order issued with respect to any 
        administrative enforcement proceeding initiated by such agency 
        under this section or any other law; and
            (C) any modification to or termination of any order or 
        agreement made public pursuant to this paragraph.

                            (2) Hearings

        All hearings on the record with respect to any notice of charges 
    issued by a Federal banking agency shall be open to the public, 
    unless the agency, in its discretion, determines that holding an 
    open hearing would be contrary to the public interest.

                      (3) Transcript of hearing

        A transcript that includes all testimony and other documentary 
    evidence shall be prepared for all hearings commenced pursuant to 
    subsection (i) of this section. A transcript of public hearings 
    shall be made available to the public pursuant to section 552 of 
    title 5.

      (4) Delay of publication under exceptional circumstances

        If the appropriate Federal banking agency makes a determination 
    in writing that the publication of a final order pursuant to 
    paragraph (1)(B) would seriously threaten the safety and soundness 
    of an insured depository institution, the agency may delay the 
    publication of the document for a reasonable time.

        (5) Documents filed under seal in public enforcement 
                                  hearings

        The appropriate Federal banking agency may file any document or 
    part of a document under seal in any administrative enforcement 
    hearing commenced by the agency if disclosure of the document would 
    be contrary to the public interest. A written report shall be made 
    part of any determination to withhold any part of a document from 
    the transcript of the hearing required by paragraph (2).

                     (6) Retention of documents

        Each Federal banking agency shall keep and maintain a record, 
    for a period of at least 6 years, of all documents described in 
    paragraph (1) and all informal enforcement agreements and other 
    supervisory actions and supporting documents issued with respect to 
    or in connection with any administrative enforcement proceeding 
    initiated by such agency under this section or any other laws.

                     (7) Disclosures to Congress

        No provision of this subsection may be construed to authorize 
    the withholding, or to prohibit the disclosure, of any information 
    to the Congress or any committee or subcommittee of the Congress.

(v) Foreign investigations

     (1) Requesting assistance from foreign banking authorities

        In conducting any investigation, examination, or enforcement 
    action under this chapter, the appropriate Federal banking agency 
    may--
            (A) request the assistance of any foreign banking authority; 
        and
            (B) maintain an office outside the United States.

       (2) Providing assistance to foreign banking authorities

        (A) In general

            Any appropriate Federal banking agency may, at the request 
        of any foreign banking authority, assist such authority if such 
        authority states that the requesting authority is conducting an 
        investigation to determine whether any person has violated, is 
        violating, or is about to violate any law or regulation relating 
        to banking matters or currency transactions administered or 
        enforced by the requesting authority.

        (B) Investigation by Federal banking agency

            Any appropriate Federal banking agency may, in such agency's 
        discretion, investigate and collect information and evidence 
        pertinent to a request for assistance under subparagraph (A). 
        Any such investigation shall comply with the laws of the United 
        States and the policies and procedures of the appropriate 
        Federal banking agency.

        (C) Factors to consider

            In deciding whether to provide assistance under this 
        paragraph, the appropriate Federal banking agency shall 
        consider--
                (i) whether the requesting authority has agreed to 
            provide reciprocal assistance with respect to banking 
            matters within the jurisdiction of any appropriate Federal 
            banking agency; and
                (ii) whether compliance with the request would prejudice 
            the public interest of the United States.

        (D) Treatment of foreign banking authority

            For purposes of any Federal law or appropriate Federal 
        banking agency regulation relating to the collection or transfer 
        of information by any appropriate Federal banking agency, the 
        foreign banking authority shall be treated as another 
        appropriate Federal banking agency.

                      (3) Rule of construction

        Paragraphs (1) and (2) shall not be construed to limit the 
    authority of an appropriate Federal banking agency or any other 
    Federal agency to provide or receive assistance or information to or 
    from any foreign authority with respect to any matter.

(w) Termination of insurance for money laundering or cash transaction 
        reporting offenses

                           (1) In general

        (A) Conviction of title 18 offenses

            (i) Duty to notify

                If an insured State depository institution has been 
            convicted of any criminal offense under section 1956 or 1957 
            of title 18, the Attorney General shall provide to the 
            Corporation a written notification of the conviction and 
            shall include a certified copy of the order of conviction 
            from the court rendering the decision.
            (ii) Notice of termination; pretermination hearing

                After receipt of written notification from the Attorney 
            General by the Corporation of such a conviction, the Board 
            of Directors shall issue to the insured depository 
            institution a notice of its intention to terminate the 
            insured status of the insured depository institution and 
            schedule a hearing on the matter, which shall be conducted 
            in all respects as a termination hearing pursuant to 
            paragraphs (3) through (5) of subsection (a) of this 
            section.

        (B) Conviction of title 31 offenses

            If an insured State depository institution is convicted of 
        any criminal offense under section 5322 or 5324 of title 31 
        after receipt of written notification from the Attorney General 
        by the Corporation, the Board of Directors may initiate 
        proceedings to terminate the insured status of the insured 
        depository institution in the manner described in subparagraph 
        (A).

        (C) Notice to State supervisor

            The Corporation shall simultaneously transmit a copy of any 
        notice issued under this paragraph to the appropriate State 
        financial institutions supervisor.

                    (2) Factors to be considered

        In determining whether to terminate insurance under paragraph 
    (1), the Board of Directors shall take into account the following 
    factors:
            (A) The extent to which directors or senior executive 
        officers of the depository institution knew of, or were involved 
        in, the commission of the money laundering offense of which the 
        institution was found guilty.
            (B) The extent to which the offense occurred despite the 
        existence of policies and procedures within the depository 
        institution which were designed to prevent the occurrence of any 
        such offense.
            (C) The extent to which the depository institution has fully 
        cooperated with law enforcement authorities with respect to the 
        investigation of the money laundering offense of which the 
        institution was found guilty.
            (D) The extent to which the depository institution has 
        implemented additional internal controls (since the commission 
        of the offense of which the depository institution was found 
        guilty) to prevent the occurrence of any other money laundering 
        offense.
            (E) The extent to which the interest of the local community 
        in having adequate deposit and credit services available would 
        be threatened by the termination of insurance.

          (3) Notice to State banking supervisor and public

        When the order to terminate insured status initiated pursuant to 
    this subsection is final, the Board of Directors shall--
            (A) notify the State banking supervisor of any State 
        depository institution described in paragraph (1) and the Office 
        of Thrift Supervision, where appropriate, at least 10 days prior 
        to the effective date of the order of termination of the insured 
        status of such depository institution, including a State branch 
        of a foreign bank; and
            (B) publish notice of the termination of the insured status 
        of the depository institution in the Federal Register.

       (4) Temporary insurance of previously insured deposits

        Upon termination of the insured status of any State depository 
    institution pursuant to paragraph (1), the deposits of such 
    depository institution shall be treated in accordance with 
    subsection (a)(7) of this section.

                       (5) Successor liability

        This subsection shall not apply to a successor to the interests 
    of, or a person who acquires, an insured depository institution that 
    violated a provision of law described in paragraph (1), if the 
    successor succeeds to the interests of the violator, or the 
    acquisition is made, in good faith and not for purposes of evading 
    this subsection or regulations prescribed under this subsection.

              (6) ``Senior executive officer'' defined

        The term ``senior executive officer'' has the same meaning as in 
    regulations prescribed under section 1831i(f) of this title.

(Sept. 21, 1950, ch. 967, Sec. 2[8], 64 Stat. 879; Pub. L. 89-695, title 
II, Secs. 202, 204, Oct. 16, 1966, 80 Stat. 1046, 1054; Pub. L. 93-495, 
title I, Sec. 110, Oct. 28, 1974, 88 Stat. 1506; Pub. L. 95-369, 
Secs. 6(c)(14), (15), 11, Sept. 17, 1978, 92 Stat. 618, 624; Pub. L. 95-
630, title I, Secs. 107(a)(1), (b), (c)(1), (d)(1), (e)(1), 111(a), 
title II, Sec. 208(a), title III, Secs. 303, 304, Nov. 10, 1978, 92 
Stat. 3649, 3653, 3654, 3656, 3660, 3665, 3674, 3676; Pub. L. 97-320, 
title I, Sec. 113(g), (h), title IV, Secs. 404(c), 424(c), (d)(6), (e), 
425(b), (c), 427(d), 433(a), Oct. 15, 1982, 96 Stat. 1473, 1474, 1512, 
1523-1527; Pub. L. 99-570, title I, Sec. 1359(a), Oct. 27, 1986, 100 
Stat. 3207-27; Pub. L. 101-73, title II, Sec. 201, title IX, 
Secs. 901(b)(1), (d), 902(a), 903(a), 904(a), 905(a), 906(a), 907(a), 
908(a), 912, 913(a), 920(a), (c), 926, Aug. 9, 1989, 103 Stat. 187, 446, 
450, 453, 457, 459, 462, 477, 482, 483, 488; Pub. L. 101-647, title XXV, 
Secs. 2521(b)(1), 2532(a), 2547(a)(1), (2), 2596(a), (b), Nov. 29, 1990, 
104 Stat. 4864, 4880, 4886, 4887, 4908; Pub. L. 102-233, title III, 
Sec. 302(a), Dec. 12, 1991, 105 Stat. 1767; Pub. L. 102-242, title I, 
Sec. 131(c)(1), (2), title III, Secs. 302(e)(5), formerly (e)(4), 307, 
Dec. 19, 1991, 105 Stat. 2266, 2349, 2360; Pub. L. 102-550, title XV, 
Secs. 1503(a), 1504(a), title XVI, Secs. 1603(d)(2)-(4), 1605(a)(5)(A), 
(11), Oct. 28, 1992, 106 Stat. 4048, 4051, 4080, 4085, 4086; Pub. L. 
102-558, title III, Secs. 303(b)(6)(A), 305, Oct. 28, 1992, 106 Stat. 
4225, 4226; Pub. L. 103-204, Sec. 25, Dec. 17, 1993, 107 Stat. 2408; 
Pub. L. 103-325, title IV, Sec. 411(c)(2)(A), title VI, Sec. 602(a)(11)-
(18), Sept. 23, 1994, 108 Stat. 2253, 2289; Pub. L. 105-164, 
Sec. 3(a)(2), Mar. 20, 1998, 112 Stat. 35; Pub. L. 105-362, title X, 
Sec. 1001(d), Nov. 10, 1998, 112 Stat. 3291; Pub. L. 106-569, title XII, 
Sec. 1232, Dec. 27, 2000, 114 Stat. 3037.)

                       References in Text

    Subsections (a) and (b) of section 3104 of this title, referred to 
in subsec. (a)(1)(E), were redesignated subsections (b) and (c), 
respectively, of section 3104 of this title by Pub. L. 103-328, title I, 
Sec. 107(a)(1), Sept. 29, 1994, 108 Stat. 2358.
    The Bank Holding Company Act of 1956, referred to in subsec. (b)(3), 
is act May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is 
classified principally to chapter 17 (Sec. 1841 et seq.) of this title. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 1841 of this title and Tables.
    Section 25(a) of the Federal Reserve Act, referred to in subsec. 
(b)(3), which is classified to subchapter II (Sec. 611 et seq.) of 
chapter 6 of this title, was renumbered section 25A of that Act by Pub. 
L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281. 
Section 25 of the Federal Reserve Act is classified to subchapter I 
(Sec. 601 et seq.) of chapter 6 of this title.
    The Federal Rules of Civil Procedure, referred to in subsecs. 
(b)(10) and (i)(4)(B), are set out in the Appendix to Title 28, 
Judiciary and Judicial Procedure.
    The Depository Institution Management Interlocks Act, referred to in 
subsec. (e)(2)(A)(iii), is title II of Pub. L. 95-630, Nov. 10, 1978, 92 
Stat. 3672, as amended, which is classified principally to chapter 33 
(Sec. 3201 et seq.) of this title. For complete classification of this 
Act to the Code, see Short Title note set out under section 3201 of this 
title and Tables.
    The Federal Credit Union Act, referred to in subsec. (e)(7)(A)(iii), 
is act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is 
classified generally to chapter 14 (Sec. 1751 et seq.) of this title. 
For complete classification of this Act to the Code, see section 1751 of 
this title and Tables.
    The Farm Credit Act of 1971, referred to in subsecs. (e)(7)(A)(iv), 
(D)(ii) and (j)(4), is Pub. L. 92-181, Dec. 10, 1971, 85 Stat. 583, as 
amended, which is classified generally to chapter 23 (Sec. 2001 et seq.) 
of this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 2001 of this title and Tables.
    Subchapter VIII of chapter 3 of this title, referred to in subsec. 
(o), was in the original ``section 9 of the Federal Reserve Act'', 
meaning section 9 of act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, 
which is classified generally to subchapter VIII (Sec. 321 et seq.) of 
chapter 3 of this title.


                            Prior Provisions

    Section is derived from subsec. (i) of former section 264 of this 
title. See Codification note set out under section 1811 of this title.


                               Amendments

    2000--Subsec. (o). Pub. L. 106-569 substituted ``subsection (c) or 
(d) of section 1814'' for ``subsection (d) of section 1814''.
    1998--Subsec. (b)(9). Pub. L. 105-164, Sec. 3(a)(2)(A), struck out 
``to any service corporation of a savings association and to any 
subsidiary of such service corporation'' after ``of a savings and loan 
holding company,''.
    Subsec. (e)(7)(A)(ii). Pub. L. 105-164, Sec. 3(a)(2)(B), substituted 
``(b)(9)'' for ``(b)(8)''.
    Subsec. (j)(2). Pub. L. 105-164, Sec. 3(a)(2)(C), substituted 
``(b)(9)'' for ``(b)(8)''.
    Subsec. (u)(3) to (8). Pub. L. 105-362 redesignated pars. (4) to (8) 
as (3) to (7), respectively, and struck out heading and text of former 
par. (3). Text read as follows: ``A written report shall be made part of 
a determination not to hold a public hearing pursuant to paragraph (2) 
or not to publish a document pursuant to paragraph (1)(A). At the end of 
each calendar quarter, all such reports shall be transmitted to the 
Congress.''
    1994--Subsec. (a)(3). Pub. L. 103-325, Sec. 602(a)(11), substituted 
``paragraph (2)(B)'' for ``subparagraph (B) of this subsection''.
    Subsec. (a)(7). Pub. L. 103-325, Sec. 602(a)(12), inserted comma 
after ``Board of Directors'' in first sentence and substituted ``the 
period'' for ``the period the period'' in third sentence.
    Subsec. (b)(4). Pub. L. 103-325, Sec. 602(a)(13), substituted 
``paragraph (3)'' for ``subparagraph (3)''.
    Subsec. (c)(2). Pub. L. 103-325, Sec. 602(a)(14), substituted 
``injunction'' for ``injuction''.
    Subsec. (g)(1)(A)(ii). Pub. L. 103-325, Sec. 411(c)(2)(A), 
substituted ``section 5322 or 5324 of title 31'' for ``section 5322 of 
title 31''.
    Subsec. (g)(2). Pub. L. 103-325, Sec. 602(a)(15), substituted 
``bank'' for ``depository institution'' wherever appearing.
    Subsec. (o). Pub. L. 103-325, Sec. 602(a)(16), in second sentence, 
substituted ``subsection (d)'' for ``subsection (b)'' and ``Board of 
Directors'' for ``board of directors'' in two places.
    Subsec. (p). Pub. L. 103-325, Sec. 602(a)(17), substituted 
``depository'' for ``banking'' wherever appearing.
    Subsec. (r)(2). Pub. L. 103-325, Sec. 602(a)(18), substituted 
``agent thereof'' for ``agent therof''.
    Subsec. (w)(1)(B). Pub. L. 103-325, Sec. 411(c)(2)(A), substituted 
``section 5322 or 5324 of title 31'' for ``section 5322 of title 31''.
    1993--Subsec. (b)(10). Pub. L. 103-204, Sec. 25(2), added par. (10).
    Subsec. (i)(4)(B). Pub. L. 103-204, Sec. 25(1), added subpar. (B) 
and struck out former subpar. (B) which read as follows: ``A permanent 
or temporary injunction or restraining order shall be granted without 
bond upon a prima facie showing that money damages, restitution, or 
civil money penalties, as sought by such agency, is appropriate.''
    1992--Subsec. (a)(3). Pub. L. 102-550, Sec. 1503(a)(2), inserted 
``of this subsection or subsection (w) of this section'' after 
``subparagraph (B)''.
    Subsec. (e)(2). Pub. L. 102-550, Sec. 1504(a)(1), amended par. (2) 
generally. Prior to amendment, par. (2) read as follows: ``Whenever, in 
the opinion of the appropriate Federal banking agency, any director or 
officer of an insured depository institution has committed any violation 
of the Depository Institution Management Interlocks Act, the agency may 
serve upon such director or officer a written notice of its intention to 
remove him from office.''
    Subsec. (g)(1). Pub. L. 102-550, Sec. 1504(a)(2), amended par. (1) 
generally, subdividing existing provisions into subpars. (A) to (D) and, 
in subpar. (A), including violations under section 1956, 1957, or 1960 
of title 18, or section 5322 of title 31, as cause for suspension of any 
institution-affiliated party.
    Subsec. (i)(1). Pub. L. 102-550, Sec. 1603(d)(3), inserted reference 
to section 1831p-1 of this title in two places, and substituted ``order 
under any such section, or to review'' for ``order under this section, 
or to review''.
    Pub. L. 102-550, Sec. 1603(d)(2), amended directory language of Pub. 
L. 102-242, Sec. 131(c)(2)(A). See 1991 Amendment note below.
    Subsec. (i)(2)(A)(ii). Pub. L. 102-550, Sec. 1603(d)(4), substituted 
``subsection (b), (c), (e), (g), or (s) of this section or any final 
order under section 1831o or 1831p-1 of this title'' for ``subsection 
(b), (c), (e), (g), or (s) of this section, or final order under section 
1831o of this title''.
    Subsec. (q). Pub. L. 102-558, Sec. 303(b)(6)(A), amended directory 
language of Pub. L. 102-242, Sec. 302(e). See 1991 amendment note below. 
Pub. L. 102-550, Sec. 1605(a)(5)(A), which contained an identical 
amendment, was repealed, effective Oct. 28, 1992, by Pub. L. 102-558, 
Sec. 305, set out in a Repeal of Duplicative Provisions note under 
section 1815 of this title.
    Subsec. (t)(2)(B). Pub. L. 102-550, Sec. 1605(a)(11)(A), inserted 
``or institution-affiliated party'' after ``institution'' in two places.
    Subsec. (t)(2)(C). Pub. L. 102-550, Sec. 1605(a)(11)(B), substituted 
``the conduct or threatened conduct'' for ``the institution's conduct or 
threatened conduct''.
    Subsec. (t)(5)(A). Pub. L. 102-550, Sec. 1605(a)(11)(C), inserted 
``or institution-affiliated party'' after ``depository institution''.
    Subsec. (w). Pub. L. 102-550, Sec. 1503(a)(1), added subsec. (w).
    1991--Subsec. (b)(8), (9). Pub. L. 102-242, Sec. 131(c)(1), added 
par. (8) and redesignated former par. (8) as (9).
    Subsec. (i)(1). Pub. L. 102-242, Sec. 131(c)(2)(A), as amended by 
Pub. L. 102-550, Sec. 1603(d)(2), inserted ``or under section 1831o of 
this title'' after first and second references to ``section''.
    Subsec. (i)(2)(A)(ii). Pub. L. 102-242, Sec. 131(c)(2)(B), inserted 
``, or final order under section 1831o of this title'' after 
``section''.
    Subsec. (q). Pub. L. 102-242, Sec. 302(e)(5), as renumbered by Pub. 
L. 102-558, Sec. 303(b)(6)(A), substituted ``assessment with respect to 
the deposits'' for ``assessment upon the deposits''.
    Subsec. (t). Pub. L. 102-242, Sec. 307, amended subsec. (t) 
generally, substituting present provisions for provisions relating to 
authority of Board to take enforcement action against savings 
associations.
    1990--Subsec. (b)(4). Pub. L. 101-647, Sec. 2596(a)(2), substituted 
``subsections (c) through (s) and subsection (u) of this section'' for 
``subsections (c), (d), (h), (i), (k), (l), (m), and (n) of this 
section''.
    Subsec. (b)(6). Pub. L. 101-647, Sec. 2596(a)(1), inserted ``or 
remedy'' after ``to correct''.
    Subsec. (c)(1). Pub. L. 101-647, Sec. 2596(b), inserted ``or 
remedy'' after ``to prevent'' and substituted ``(b)(6)'' for 
``(b)(6)(B)''.
    Subsec. (h)(1). Pub. L. 101-647, Sec. 2547(a)(2), struck out after 
first sentence ``Such hearing shall be private, unless the appropriate 
Federal banking agency, in its discretion, after fully considering the 
views of the party afforded the hearing, determines that a public 
hearing is necessary to protect the public interest.''
    Subsec. (i)(4). Pub. L. 101-647, Sec. 2521(b)(1), added par. (4).
    Subsec. (u). Pub. L. 101-647, Sec. 2547(a)(1), amended subsec. (u) 
generally. Prior to amendment, subsec. (u) read as follows:
    ``(1) In general.--The appropriate Federal banking agency shall 
publish and make available to the public--
        ``(A) any final order issued with respect to any administrative 
    enforcement proceeding initiated by such agency under this section 
    or any other provision of law; and
        ``(B) any modification to or termination of any final order 
    described in subparagraph (A) of this paragraph.
    ``(2) Delay of publication under exceptional circumstances.--If the 
appropriate Federal banking agency makes a determination in writing that 
the publication of any final order pursuant to paragraph (1) would 
seriously threaten the safety or soundness of an insured depository 
institution, such agency may delay the publication of such order for a 
reasonable time.''
    Subsec. (v). Pub. L. 101-647, Sec. 2532(a), added subsec. (v).
    1989--Pub. L. 101-73, Sec. 201(a), substituted references to insured 
depository institutions for references to insured banks wherever 
appearing in this section.
    Subsec. (a). Pub. L. 101-73, Sec. 926(1), inserted heading.
    Subsec. (a)(1) to (3). Pub. L. 101-73, Sec. 926(1), added pars. (1) 
to (3) and struck out first four sentences which read as follows: ``Any 
insured bank (except a national member bank, a foreign bank having an 
insured branch which is a Federal branch, a foreign bank having an 
insured branch which is required to be insured under section 3104(a) or 
(b) of this title, or State member bank) may, upon not less than ninety 
days' written notice to the Corporation, terminate its status as an 
insured bank. Whenever the Board of Directors shall find that an insured 
bank or its directors or trustees have engaged or are engaging in unsafe 
or unsound practices in conducting the business of such bank, or is in 
an unsafe or unsound condition to continue operations as an insured 
bank, or violated an applicable law, rule, regulation or order, or any 
condition imposed in writing by the Corporation in connection with the 
granting of any application or other request by the bank, or any written 
agreement entered into with the Corporation 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 Federal Home Loan Bank Board in the case 
of an insured Federal savings bank, to the authority having supervision 
of the bank in the case of a State bank, and 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 not less than twenty days fixed by the 
Corporation in any case where the Board of Directors in its discretion 
has determined that the insurance risk of the Corporation is unduly 
jeopardized, or fixed by the Comptroller of the Currency in the case of 
a national bank, or the Federal Home Loan Bank Board in the case of an 
insured Federal savings bank, or the State authority in the case of a 
State bank, or Board of Governors of the Federal Reserve System in the 
case of a State member bank as the case may be, 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 place 
for a hearing before the Board of Directors or before a person 
designated by it to conduct such hearing, at which evidence may be 
produced, and upon such evidence the Board of Directors shall make 
written findings which shall be conclusive. If the Board of Directors 
shall find that any unsafe or unsound practice or condition or violation 
specified in such statement 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 notice of intention.''
    Subsec. (a)(4). Pub. L. 101-73, Sec. 926(2), designated fifth 
sentence as par. (4) and inserted heading.
    Pub. L. 101-73, Sec. 901(d), substituted ``depository institution'' 
for ``bank''.
    Subsec. (a)(5). Pub. L. 101-73, Sec. 926(3), designated sixth 
sentence as par. (5), inserted heading, and substituted ``Any insured 
depository institution whose insured status'' for ``Any insured bank 
whose insured status''.
    Subsec. (a)(6). Pub. L. 101-73, Sec. 926(4), designated seventh 
sentence as par. (6) and inserted heading.
    Pub. L. 101-73, Sec. 901(d), substituted ``depository institution'' 
for ``bank'' wherever appearing.
    Subsec. (a)(7). Pub. L. 101-73, Sec. 926(5), (6), designated last 
three sentences as par. (7), inserted heading, substituted ``of at least 
6 months or up to 2 years, within the discretion of the Board of 
Directors'' for first reference to ``of two years'', and ``the period 
referred to in the 1st sentence'' for second reference to ``of two 
years'', and struck out ``of two years'' after ``within such period''.
    Pub. L. 101-73, Sec. 901(d), substituted ``depository institution'' 
for ``bank'' wherever appearing.
    Subsec. (a)(8) to (10). Pub. L. 101-73, Sec. 926(7), added pars. (8) 
to (10).
    Subsec. (b)(1). Pub. L. 101-73, Sec. 901(d), substituted 
``depository institution'' for ``bank'' wherever appearing.
    Pub. L. 101-73, Sec. 901(b)(1)(A)(i), (B), substituted references to 
institution-affiliated parties for references to directors, officers, 
employees, agents, or other persons participating in the conduct of 
banks.
    Pub. L. 101-73, Sec. 901(b)(1)(A)(ii), which directed that 
``institution-affiliated parties'' be substituted for ``directors, 
officers, employees, agents, or other persons participating in the 
conduct of the affairs of such bank'', was executed by making the 
substitution for ``directors, officers, employees, agents, and other 
persons participating in the conduct of the affairs of such bank'', as 
the probable intent of Congress.
    Subsec. (b)(2). Pub. L. 101-73, Sec. 901(d), substituted 
``depository institution'' for ``bank''.
    Subsec. (b)(3). Pub. L. 101-73, Sec. 902(a)(1)(A), substituted 
``subsections (c) through (s) and subsection (u)'' for ``subsections (c) 
through (f) and (h) through (n)''.
    Subsec. (b)(4). Pub. L. 101-73, Sec. 902(a)(1)(B), which directed 
the substitution of ``subsections (c) through (s) and subsection (u)'' 
for ``subsections (c) through (f) and (h) through (n)'', could not be 
executed because the words ``subsections (c) through (f) and (h) through 
(n)'' did not appear. See 1990 Amendment note above.
    Subsec. (b)(6) to (8). Pub. L. 101-73, Sec. 902(a)(1)(C), added 
pars. (6) to (8).
    Subsec. (c)(1). Pub. L. 101-73, Sec. 902(a)(2)(A), substituted 
``insolvency or significant dissipation'' for ``insolvency or 
substantial dissipation'', struck out ``seriously'' before ``weaken the 
condition of'' and before ``prejudice the interests of'', and inserted 
after first sentence ``Such order may include any requirement authorized 
under subsection (b)(6)(B) of this section''.
    Pub. L. 101-73, Sec. 901(d), substituted ``depository institution'' 
for ``bank'' wherever appearing.
    Pub. L. 101-73, Sec. 901(b)(1)(B), substituted references to 
institution-affiliated parties for references to directors, officers, 
employees, agents or other persons participating in the conduct of the 
affairs of banks.
    Subsec. (c)(2). Pub. L. 101-73, Sec. 901(d), substituted 
``depository institution'' for ``bank'' wherever appearing.
    Pub. L. 101-73, Sec. 901(b)(1)(B), substituted references to 
institution-affiliated parties for references to directors, officers, 
employees, agents or other persons participating in the conduct of the 
affairs of banks.
    Subsec. (c)(3). Pub. L. 101-73, Sec. 902(a)(2)(B), added par. (3).
    Subsec. (d). Pub. L. 101-73, Sec. 901(d), substituted ``depository 
institution'' for ``bank''.
    Subsec. (e)(1). Pub. L. 101-73, Sec. 903(a)(1), amended par. (1) 
generally, by, among other changes, giving existing provisions subpar. 
designations, and by adding as conditions for removal of a party a 
violation of any condition imposed by writing in connection with a grant 
of any application or request, and violation of any written agreement 
between such depository institution and agency.
    Subsec. (e)(2). Pub. L. 101-73, Sec. 903(a)(2), redesignated par. 
(3) as (2) and struck out former par. (2) which read as follows: 
``Whenever, in the opinion of the appropriate Federal banking agency, 
any director or officer of an insured bank, by conduct or practice with 
respect to another insured bank or other business institution which 
resulted in substantial financial loss or other damage, has evidenced 
either his personal dishonesty or a willful or continuing disregard for 
its safety and soundness, and, in addition, has evidenced his unfitness 
to continue as a director or officer and, whenever, in the opinion of 
the appropriate Federal banking agency, any other person participating 
in the conduct of the affairs of an insured bank, by conduct or practice 
with respect to such bank or other insured bank or other business 
institution which resulted in substantial financial loss or other 
damage, has evidenced either his personal dishonesty or a willful or 
continuing disregard for its safety and soundness, and, in addition, has 
evidenced his unfitness to participate in the conduct of the affairs of 
such insured bank, the agency may serve upon such director, officer, or 
other person a written notice of its intention to remove him from office 
or to prohibit his further participation in any manner in the conduct of 
the affairs of the bank.''
    Subsec. (e)(3). Pub. L. 101-73, Sec. 903(a)(2), added par. (3). 
Former par. (3) redesignated (2).
    Subsec. (e)(4). Pub. L. 101-73, Sec. 903(a)(2), redesignated par. 
(5) as (4) and struck out former par. (4) which read as follows: ``In 
respect to any director or officer of an insured bank or any other 
person referred to in paragraph (1), (2), or (3) of this subsection, the 
appropriate Federal banking agency may, if it deems it necessary for the 
protection of the bank or the interests of its depositors, by written 
notice to such effect served upon such director, officer, or other 
person, suspend him from office or prohibit him from further 
participation in any manner in the conduct of the affairs of the bank. 
Such suspension or prohibition shall become effective upon service of 
such notice and, unless stayed by a court in proceedings authorized by 
subsection (f) of this section, shall remain in effect pending the 
completion of the administrative proceedings pursuant to the notice 
served under paragraph (1), (2), or (3) of this subsection and until 
such time as the agency shall dismiss the charges specified in such 
notice, or, if an order of removal or prohibition is issued against the 
director or officer or other person, until the effective date of any 
such order. Copies of any such notice shall also be served upon the bank 
of which he is a director or officer or in the conduct of whose affairs 
he has participated.''
    Pub. L. 101-73, Sec. 901(b)(1)(C), substituted references to 
institution-affiliated parties for references to directors, officers, or 
other persons.
    Pub. L. 101-73, Sec. 901(d), substituted reference to depository 
institutions for reference to banks.
    Subsec. (e)(5). Pub. L. 101-73, Sec. 903(a)(2), redesignated par. 
(6) as (5). Former par. (5) redesignated (4).
    Pub. L. 101-73, Sec. 901(b)(1)(D), inserted ``within the term 
`institution-affiliated party' '' after ``the term `officer' '', and 
inserted ``within the term `institution-affiliated party' as used in 
this subsection'' after ``the term `director' ''.
    Pub. L. 101-73, Sec. 901(d), substituted reference to depository 
institution for reference to bank.
    Subsec. (e)(6). Pub. L. 101-73, Sec. 903(a)(2), (3), added par. (6) 
and redesignated former par. (6) as (5).
    Subsec. (e)(7). Pub. L. 101-73, Sec. 904(a), added par. (7).
    Subsec. (f). Pub. L. 101-73, Sec. 903(a)(4)(A), substituted 
``(e)(3)'' for ``(e)(4)'' and ``(e)(1) or (e)(2)'' for ``(e)(1), (e)(2), 
or (e)(3)''.
    Pub. L. 101-73, Sec. 901(b)(1)(E), substituted ``any institution-
affiliated party'' and ``such party'' for ``any director, officer, or 
other person'' and ``such director, officer, or other person'', 
respectively, wherever appearing.
    Pub. L. 101-73, Sec. 901(d), substituted ``depository institution'' 
for ``bank''.
    Subsec. (g)(1). Pub. L. 101-73, Sec. 906(a), struck out ``authorized 
by a United States attorney'' after ``information, indictment, or 
complaint'', and substituted ``or an agreement to enter a pre-trial 
diversion or other similar program'' for ``with respect to such crime''.
    Pub. L. 101-73, Sec. 903(a)(4)(B), substituted ``(1), (2), or (3)'' 
for ``(1), (2), (3), or (4)''.
    Pub. L. 101-73, Sec. 901(d), substituted references to depository 
institutions for references to banks wherever appearing.
    Pub. L. 101-73, Sec. 901(b)(1)(F)(i), substituted ``institution-
affiliated party'' for ``director or officer of an insured bank, or 
other person participating in the conduct of the affairs of such bank''.
    Pub. L. 101-73, Sec. 901(b)(1)(F)(v), which directed the 
substitution of ``party'' for ``director, officer or other person'', 
could not be executed, because the phrase did not appear.
    Pub. L. 101-73, Sec. 901(b)(1)(F)(ii)-(iv), (vi), substituted ``such 
party'' for ``the individual'' wherever appearing, ``such party'' for 
``such director, officer, or other person'' wherever appearing, ``such 
party'' for ``him'' wherever appearing, and ``whereupon such party (if a 
director or an officer)'' for ``whereupon such director or officer''.
    Subsec. (g)(2). Pub. L. 101-73, Sec. 901(d), substituted references 
to depository institutions for references to banks wherever appearing.
    Subsec. (g)(3). Pub. L. 101-73, Sec. 901(d), substituted references 
to depository institutions for references to banks wherever appearing.
    Pub. L. 101-73, Sec. 901(b)(1)(G), substituted ``the institution-
affiliated party concerned'' for ``the director, officer, or other 
person concerned'' and substituted ``such party'' for ``such 
individual'', for ``the concerned director, officer, or other person'', 
and for any other reference to the director, officer or other person.
    Subsec. (h)(1). Pub. L. 101-73, Sec. 901(d), substituted 
``depository institution'' for ``bank''.
    Subsec. (h)(2). Pub. L. 101-73, Sec. 920(a), substituted ``Any party 
to any proceeding under paragraph (1)'' for ``Any party to the 
proceeding, or any person required by an order issued under this section 
to cease and desist from any of the violations or practices stated 
therein,''.
    Pub. L. 101-73, Sec. 901(d), substituted ``depository institution'' 
for ``bank'' wherever appearing.
    Pub. L. 101-73, Sec. 901(b)(1)(H), substituted ``institution-
affiliated party'' for ``director or officer or other person''.
    Subsec. (i)(1). Pub. L. 101-73, Sec. 901(d), substituted 
``depository institution'' for ``bank''.
    Subsec. (i)(2). Pub. L. 101-73, Sec. 907(a), amended par. (2) 
generally, revising and restating as subpars. (A) to (K) provisions of 
former cls. (i) to (vii).
    Subsec. (i)(3). Pub. L. 101-73, Sec. 905(a), added par. (3).
    Subsec. (j). Pub. L. 101-73, Sec. 908(a), amended subsec. (j) 
generally. Prior to amendment, subsec. (j) read as follows: ``Any 
director or officer, or former director or officer of an insured bank, 
or any other person, against whom there is outstanding and effective any 
notice or order (which is an order which has become final) served upon 
such director, officer, or other person under subsections (e)(4), 
(e)(5), or (g) of this section, and who (i) participates in any manner 
in the conduct of the affairs of the bank involved, or directly or 
indirectly solicits or procures, or transfers or attempts to transfer, 
or votes or attempts to vote, any proxies, consents, or authorizations 
in respect of any voting rights in such bank, or (ii) without the prior 
written approval of the appropriate Federal banking agency, votes for a 
director, serves or acts as a director, officer, or employee of any 
bank, shall upon conviction be fined not more than $5,000 or imprisoned 
for not more than one year, or both.''
    Subsec. (k). Pub. L. 101-73, Sec. 920(c), struck out subsec. (k) 
which defined the terms ``cease-and-desist order which has become 
final'', ``order which has become final'', and ``violation'', as those 
terms were used in this section.
    Subsec. (l). Pub. L. 101-73, Sec. 901(d), substituted ``State 
depository institution'' for ``State bank''.
    Pub. L. 101-73, Sec. 901(b)(1)(I), substituted ``institution-
affiliated party'' for ``director or officer thereof or other person 
participating in the conduct of its affairs''.
    Subsec. (m). Pub. L. 101-73, Sec. 901(b)(1)(J), substituted 
``institution-affiliated party'' for ``director or officer or other 
person participating in the conduct of its affairs''.
    Subsec. (n). Pub. L. 101-73, Sec. 901(d), substituted ``depository 
institution'' for ``bank''.
    Subsec. (o). Pub. L. 101-73, Sec. 201(b), substituted ``Director of 
the Office of Thrift Supervision'' for ``Federal Home Loan Bank Board''.
    Subsec. (q). Pub. L. 101-73, Sec. 901(d), substituted ``depository 
institution'' for ``bank'' wherever appearing and ``depository 
institutions'' for ``banks''.
    Subsec. (s). Pub. L. 101-73, Sec. 901(d), substituted references to 
depository institutions for references to banks wherever appearing.
    Subsec. (t). Pub. L. 101-73, Sec. 912, added subsec. (t).
    Subsec. (u). Pub. L. 101-73, Sec. 913(a), added subsec. (u).
    1986--Subsec. (i)(2)(i). Pub. L. 99-570, Sec. 1359(a)(2), inserted 
reference to subsec. (s) of this section.
    Subsec. (s). Pub. L. 99-570, Sec. 1359(a)(1), added subsec. (s).
    1982--Subsec. (a). Pub. L. 97-320, Sec. 113(g), inserted ``to the 
Federal Home Loan Bank Board in the case of an insured Federal savings 
bank,'' after ``national bank or a district bank,'' and ``or the Federal 
Home Loan Bank Board in the case of an insured Federal savings bank,'' 
after ``Currency in the case of a national bank,''.
    Subsec. (b)(3). Pub. L. 97-320, Sec. 425(b), substituted ``25(a)'' 
for ``25A''.
    Subsec. (b)(4). Pub. L. 97-320, Sec. 425(c), which directed the 
amendment of subsec. (b) by adding a new par. (4) at end, was executed 
(as the probable intent of Congress) as a general amendment of existing 
par. (4), as added by Pub. L. 95-369, the two pars. (4) being identical 
except that the new par. (4) refers to ``purposes of this paragraph'' 
rather than ``purposes of this subparagraph''.
    Subsec. (b)(5). Pub. L. 97-320, Sec. 404(c), added par. (5).
    Subsec. (e)(3). Pub. L. 97-320, Sec. 427(d)(1)(A), added par. (3). 
Former par. (3) redesignated (4).
    Subsec. (e)(4). Pub. L. 97-320, Sec. 427(d)(1)(A), (B), redesignated 
former par. (3) as (4) and inserted references to par. (3) of this 
subsection in two places. Former par. (4) redesignated (5).
    Subsec. (e)(5), (6). Pub. L. 97-320, Sec. 427(d)(1)(A), redesignated 
former pars. (4) and (5) as (5) and (6), respectively.
    Subsec. (f). Pub. L. 97-320, Sec. 427(d)(2), substituted references 
to ``subsection (e)(4)'' for ``subsection (e)(5) or (e)(7)'' and 
``subsection (e)(1), (e)(2), or (e)(3)'' for ``subsection (e)(1), 
(e)(3), or (e)(7)''.
    Subsec. (g)(1). Pub. L. 97-320, Sec. 427(d)(3), in penultimate 
sentence, included reference to par. (4) of subsec. (e) of this section.
    Subsec. (i)(2)(i). Pub. L. 97-320, Sec. 424(c), (d)(6), inserted 
proviso giving agency discretionary authority to compromise, etc., any 
civil money penalty imposed under such authority, and substituted ``may 
be assessed'' for ``shall be assessed''.
    Subsec. (i)(2)(iv). Pub. L. 97-424(e) substituted ``twenty days from 
the service'' for ``ten days from the date''.
    Subsec. (j). Pub. L. 97-320, Sec. 427(d)(4), struck out reference to 
subsec. (e)(3) and included reference to subsec. (e)(5) of this section.
    Subsec. (o). Pub. L. 97-320, Sec. 113(h), inserted provision that 
whenever the insured status of an insured Federal savings bank shall be 
terminated by action of the Board of Directors, the Federal Home Loan 
Bank Board shall appoint a receiver for the bank, which shall be the 
Corporation.
    Subsec. (q). Pub. L. 97-320, Sec. 433(a), struck out item (3) 
provisions requiring the assuming or resulting bank to give notice of an 
assumption to each of the depositors of the bank whose liabilities are 
assumed within thirty days after such assumption takes effect.
    1978--Subsec. (a). Pub. L. 95-369, Sec. 6(c)(14), inserted ``a 
foreign bank having an insured branch which is a Federal branch, a 
foreign bank having an insured branch which is required to be insured 
under section 3104(a) or (b) of this title'' after ``(except a national 
member bank''.
    Subsec. (b)(1), (2). Pub. L. 95-630, Sec. 107(a)(1), extended 
coverage of par. (1) to include directors, officers, employees, agents, 
or other persons participating in the conduct of the affairs of an 
insured bank or a bank which has insured deposits, and reenacted par. 
(2) without change.
    Subsec. (b)(3). Pub. L. 95-630, Sec. 107(b), substituted 
``subsections (c) through (f) and (h) through (n) of this section'' for 
``subsections (c), (d), (h), (i), (k), (l), (m), and (n) of this 
section'' and inserted provisions relating to any organization organized 
and operated under section 25A of the Federal Reserve Act or operating 
under section 25 of the Federal Reserve Act and provisions relating to 
the issuance of a notice of charges or cease-and-desist order against a 
bank holding company or subsidiary by any Federal banking agency other 
than the Board of Governors of the Federal Reserve System.
    Subsec. (b)(4). Pub. L. 95-369, Sec. 11, added par. (4).
    Subsec. (c). Pub. L. 95-630, Sec. 107(c)(1), in pars. (1) and (2) 
inserted references to any director, officer, employee, agent, or other 
person participating in the conduct of the affairs of the bank and in 
par. (1) inserted ``prior to the completion of the proceedings conducted 
pursuant to paragraph (1) of subsection (b) of this section'' after 
``interests of its depositors'' and ``and to take affirmative action to 
prevent such insolvency, dissipation, condition, or prejudice pending 
completion of such proceedings'' after ``violation or practice''.
    Subsec. (e). Pub. L. 95-630, Secs. 107(d)(1), 208(a), generally 
revised and condensed the provisions relating to the suspension and 
removal of bank directors and officers, consolidated procedures relating 
to the certification of facts to the Board of Governors of the Federal 
Reserve System by the Comptroller of the Currency, substituted 
references to insured banks for references to insured State banks (other 
than a District Bank), and inserted provisions defining ``officer'' and 
``director'' for the purpose of enforcing any law, rule, etc., in 
connection with an interlocking relationship.
    Subsec. (g). Pub. L. 95-630, Sec. 111(a)(1), among other changes, 
inserted in par. (1) ``, if continued service or participation by the 
individual may pose a threat to the interests of the bank's depositors 
or may threaten to impair public confidence in the bank'' after ``agency 
may'' in two places, inserted provision that any notice of suspension or 
order of removal issued under this paragraph remain effective and 
outstanding until the completion of any hearing or appeal authorized 
under paragraph (3) hereof unless terminated by the agency, and added 
par. (3).
    Subsec. (h)(1). Pub. L. 95-630, Sec. 111(a)(2), inserted ``(other 
than the hearing provided for in subsection (g)(3) of this section)'' 
after ``provided for in this section''.
    Subsec. (i). Pub. L. 95-630, Sec. 107(e)(1), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (j). Pub. L. 95-630, Sec. 111(a)(3), substituted 
``subsections (e)(3), (e)(4)'' for ``subsections (e)(5), (e)(7), 
(e)(8)''.
    Subsec. (k). Pub. L. 95-630, Sec. 111(a)(4), substituted ``paragraph 
(1) or (3) of subsection (g)'' for ``paragraph (1) of subsection (g)''.
    Subsec. (n). Pub. L. 95-630, Sec. 111(a)(5), inserted provision 
creating a criminal penalty for a willful failure or refusal to attend 
and testify or to answer any lawful inquiry or to produce books, papers, 
etc. in obedience to the subpoena of the appropriate Federal banking 
agency.
    Pub. L. 95-630, Sec. 303, inserted ``or in connection with any claim 
for insured deposits or any examination or investigation under section 
1820(c) of this title,'' after ``proceeding under this section,'', 
``examination, or investigation or considering the claim for insured 
deposits,'' after ``conducting the proceeding,'', and ``such agency or 
any'' before ``party to proceedings'' and substituted ``any such 
proceedings, claims, examinations, or investigations'' for ``any such 
proceedings'' and ``subpenaed under this subsection'' for ``subpenaed 
under this section''.
    Subsec. (q). Pub. L. 95-630, Sec. 304, among other changes, 
substituted provisions requiring the assuming or resulting bank to give 
notice of an assumption to each of the depositors of the bank whose 
liabilities are so assumed within thirty days after such assumption 
takes effect for provisions requiring the bank whose liabilities are 
being assumed to give notice of such assumption to its depositors 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.
    Subsec. (r). Pub. L. 95-369, Sec. 6(c)(15), added subsec. (r).
    1974--Subsec. (b)(3). Pub. L. 93-495 added par. (3).
    1966--Subsec. (a). Pub. L. 89-695, Sec. 204, enlarged the authority 
of the Corporation to institute involuntary termination proceedings 
against an insured bank which had engaged in or whose directors or 
trustees had engaged in, rather than merely continued unsafe or unsound 
practices, or was in an unsafe or unsound condition to continue 
operations as an insured bank, or had violated any law, rule, regulation 
or order, or any condition imposed in writing by the Corporation or any 
written agreement entered into with the Corporation; made it clear that 
the Corporation would be required to give the State authority a copy of 
the statement dealing the practices or violations where the State bank 
involved was a State member bank; provided for an alternative and 
shortened correction period of not less than twenty days in those cases 
where the Board of Directors of the Corporation on its discretion 
determined that the insurance risk of the Corporation was unduly 
jeopardized; provided the State authority with power to shorten the 
correction period in those cases involving State banks whether member or 
nonmember banks; transposed the position of the fourth and fifth 
sentences; and provided a bank whose insured status had been terminated 
with right of judicial review to the extent provided in subsec. (h) of 
this section.
    Subsecs. (b) to (q). Pub. L. 89-695, Sec. 202, added subsecs. (b) to 
(n) and redesignated former subsecs. (b) to (d) as (o) to (q), 
respectively.

                         Change of Name

    Oversight Board redesignated Thrift Depositor Protection Oversight 
Board, effective Feb. 1, 1992, see section 302(a) of Pub. L. 102-233, 
set out as a note under section 1441a of this title. Thrift Depositor 
Protection Oversight Board abolished, see section 14(a)-(d) of Pub. L. 
105-216, set out as a note under section 1441a of this title.


                    Effective Date of 1992 Amendments

    Amendment by section 303(b)(6)(A) of Pub. L. 102-558 deemed to have 
become effective Mar. 1, 1992, see section 304 of Pub. L. 102-558, set 
out as a note under section 2062 of Title 50, Appendix, War and National 
Defense.
    Amendment by sections 1603(d)(2)-(4) and 1605(a)(5)(A), (11) of Pub. 
L. 102-550 effective as if included in the Federal Deposit Insurance 
Corporation Improvement Act of 1991, Pub. L. 102-242, as of Dec. 19, 
1991, except that where amendment is to any provision of law added or 
amended by Pub. L. 102-242 effective after Dec. 19, 1992, then amendment 
by Pub. L. 102-550 effective on effective date of amendment by Pub. L. 
102-242, see section 1609 of Pub. L. 102-550, set out as a note under 
section 191 of this title.


                    Effective Date of 1991 Amendment

    Amendment by section 131(c)(1), (2) of Pub. L. 102-242 effective 1 
year after Dec. 19, 1991, see section 131(f) of Pub. L. 102-242, set out 
as a note under section 1464 of this title.
    Amendment by section 302(e)(4) of Pub. L. 102-242 effective on 
earlier of 180 days after date on which final regulations promulgated in 
accordance with section 302(c) of Pub. L. 102-242, set out as a note 
under section 1817 of this title, become effective or Jan. 1, 1994, see 
section 302(g) of Pub. L. 102-242, set out as a note under section 1817 
of this title.


                    Effective Date of 1990 Amendment

    Section 2547(a)(3) of Pub. L. 101-647 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply with respect 
to all written agreements which are entered into and all written 
statements which become effective after the date of the enactment of 
this Act [Nov. 29, 1990].''


                    Effective Date of 1989 Amendment

    Amendment by section 903(a) of Pub. L. 101-73 applicable with 
respect to violations committed and activities engaged in after Aug. 9, 
1989, see section 903(e) of Pub. L. 101-73, set out as a note under 
section 1786 of this title.
    Amendment by section 907(a) of Pub. L. 101-73 applicable to conduct 
engaged in after Aug. 9, 1989, except that increased maximum penalties 
of $5,000 and $25,000 may apply to conduct engaged in before such date 
if such conduct is not already subject to a notice issued by the 
appropriate agency and occurred after completion of the last report of 
the examination of the institution by the appropriate agency occurring 
before Aug. 9, 1989, see section 907(l) of Pub. L. 101-73, set out as a 
note under section 93 of this title.


      Effective Date of Regulations Prescribed Under 1986 Amendment

    The regulations required to be prescribed under amendment by Pub. L. 
99-570 effective at end of 3-month period beginning on Oct. 27, 1986, 
see section 1364(e) of Pub. L. 99-570, set out as a note under section 
1464 of this title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-630, except for amendment by section 
107(e)(1), effective upon expiration of 120 days after Nov. 10, 1978, 
see section 2101 of Pub. L. 95-630, set out as an Effective Date note 
under section 375b of this title.
    Amendment by section 107(e)(1) of Pub. L. 95-630, relating to 
imposition of civil penalties, applicable to violations occurring or 
continuing after Nov. 10, 1978, see section 109 of Pub. L. 95-630, set 
out as a note under section 93 of this title.


                      Expiration of 1966 Amendment

    Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84 Stat. 1811, 
repealed section 401 of Pub. L. 89-695 which had provided that: ``The 
provisions of titles I and II of this Act [amending sections 1464, 1730, 
1813, 1817 to 1820 and repealing section 77 of this title and enacting 
provisions set out as notes under sections 1464, 1730, and 1813 of this 
title] and any provisions of law enacted by said titles shall be 
effective only during the period ending at the close of June 30, 1972. 
Effective upon the expiration of such period, each provision of law 
amended by either of such titles is further amended to read as it did 
immediately prior to the enactment of this Act [Oct. 16, 1966] and each 
provision of law repealed by either of such titles is reenacted.''


  Improved Administrative Hearings and Procedures for Federal Banking 
         Agencies and National Credit Union Administration Board

    Section 916 of Pub. L. 101-73 provided that before close of 24-month 
period beginning on Aug. 9, 1989, appropriate Federal banking agencies 
(as defined in section 3(q) of the Federal Deposit Insurance Act [12 
U.S.C. 1813(q)]) and National Credit Union Administration Board jointly 
establish their own pool of administrative law judges and develop a set 
of uniform rules and procedures for administrative hearings, including 
provisions for summary judgment rulings where there are no disputes as 
to material facts of the case.


          Task Force Study of Delegation of Enforcement Actions

    Section 917 of Pub. L. 101-73 directed appropriate Federal banking 
agencies (as defined in section 1813(q) of this title and National 
Credit Union Administration Board to create a joint task force to study 
desirability and feasibility of delegating investigation and enforcement 
authority to their regional or district offices or banks, provided for 
composition of task force, and required that not later than Sept. 30, 
1990, task force report to Congress its findings and recommendations, 
together with responses of Comptroller of the Currency, Director of 
Office of Thrift Supervision, Chairperson of Federal Deposit Insurance 
Corporation, Chairman of Board of Governors of Federal Reserve System, 
and Chairman of National Credit Union Administration.


                   Credit Standards Advisory Committee

    Section 1205 of Pub. L. 101-73, as amended by Pub. L. 102-242, title 
IV, Sec. 422, Dec. 19, 1991, 105 Stat. 2377, provided that:
    ``(a) Establishment.--There is hereby established the Credit 
Standards Advisory Committee (in this section referred to as the 
`Committee').
    ``(b) Membership.--
        ``(1) Appointment.--The Committee shall consist of 11 members, 
    as follows:
            ``(A) The Chairman of the Board of Governors of the Federal 
        Reserve System, or the Chairman's designee.
            ``(B) The Director of the Office of Thrift Supervision, or 
        the Director's designee.
            ``(C) The Chairperson of the Federal Deposit Insurance 
        Corporation, or the Chairperson's designee.
            ``(D) The Comptroller of the Currency, or the Comptroller's 
        designee.
            ``(E) The Chairman of the National Credit Union 
        Administration, or the Chairman's designee.
            ``(F) 6 members of the public appointed by the President who 
        are knowledgeable with the credit standards and lending 
        practices of insured depository institutions, no more than 3 of 
        whom shall be from the same political party.
        ``(2) Terms.--Each member appointed under paragraph (1)(F) shall 
    serve for the life of the Committee.
        ``(3) Chairperson.--The Chairperson of the Committee shall be 
    designated by the President from among the members appointed under 
    paragraph (1)(F).
        ``(4) Vacancies.--Any vacancy on the Committee shall be filled 
    in the manner in which the original appointment was made.
        ``(5) Pay and expenses.--Members of the Committee shall serve 
    without pay but each member of the Committee shall be reimbursed for 
    expenses incurred in connection with attendance of such members at 
    meetings of the Committee. All expenses of the Committee shall be 
    shared on a pro rata basis, based upon each agency's total budget 
    for the preceding year by the Federal financial regulators specified 
    in subparagraphs (A) through (E) of paragraph (1).
        ``(6) Meetings.--The Committee shall meet, not less frequently 
    than quarterly, at the call of the chairperson or a majority of the 
    members.
    ``(c) Duties of the Committee.--The Committee shall do the 
following:
        ``(1) Review credit standards, lending practices, and 
    supervision by federal regulators.--Review the credit standards and 
    lending practices of insured depository institutions and the 
    supervision of such standards and practices by the Federal financial 
    regulators.
        ``(2) Prepare recommendations.--Prepare written comments and 
    recommendations for the Federal financial regulators to ensure that 
    insured depository institutions adhere to prudential credit 
    standards and lending practices that are consistent for all insured 
    depository institutions, to the maximum extent possible.
        ``(3) Monitor credit standards, lending practices, and 
    supervision by federal regulators.--Monitor the credit standards and 
    lending practices of insured depository institutions, and the 
    supervision of such standards and practices by the Federal financial 
    regulators, to ensure that insured depository institutions can meet 
    the demands of a modern and globally competitive financial world.
    ``(d) Annual Report.--
        ``(1) Required.--Not later than January 30 of each year, the 
    Committee shall submit a report to the Committee on Banking, Finance 
    and Urban Affairs [now Committee on Financial Services] of the House 
    of Representatives and the Committee on Banking, Housing, and Urban 
    Affairs of the Senate.
        ``(2) Contents.--The report required by paragraph (1) shall 
    describe the activities of the Committee during the preceding year 
    and the reports and recommendations made by the Committee to the 
    Federal financial regulators.
    ``(e) Conflict of Interest Guidelines.--The Committee shall 
prescribe such guidelines as the Committee determines to be appropriate 
to avoid conflicts of interest with respect to the disclosure to and use 
by members of the Committee of information relating to insured 
depository institutions and the Federal financial regulators.
    ``(f) Federal Advisory Committee Act Does not Apply.--The Federal 
Advisory Committee Act [5 App. U.S.C.] shall not apply with respect to 
the Committee.''
    [For termination, effective May 15, 2000, of reporting provisions 
under 1205(d) of Pub. L. 101-73, set out above, see section 3003 of Pub. 
L. 104-66, as amended, set out as a note under section 1113 of Title 31, 
Money and Finance, and page 159 of House Document No. Pub. L. 103-7.]


Conditions Governing Employment of Personnel Not Repealed, Modified, or 
                                Affected

    Nothing contained in sections 202 and 204 of Pub. L. 89-695 amending 
this section to be construed as repealing, modifying, or affecting 
section 1829 of this title, see section 206 of Pub. L. 89-695, set out 
as a note under section 1813 of this title.

             Abolition of Reconstruction Finance Corporation

    Section 6(a) of Reorg. Plan No. 1 of 1957, eff. June 30, 1957, 22 
F.R. 4633, 71 Stat. 647, set out as a note under section 601 of Title 
15, Commerce and Trade, abolished the Reconstruction Finance 
Corporation.

                  Section Referred to in Other Sections

    This section is referred to in sections 92a, 93, 164, 205, 324, 
371b-2, 375a, 504, 505, 1422b, 1464, 1467, 1467a, 1468, 1786, 1813, 
1817, 1820, 1821, 1828, 1831b, 1831g, 1831m, 1831m-1, 1831o, 1831p-1, 
1835a, 1841, 1843, 1847, 1848a, 1867, 1972, 2804, 2805, 3108, 3110, 
3349, 3420, 3907, 3908, 3909, 4009, 4309, 4717, 4909 of this title; 
title 15 sections 57a, 78o-4, 78o-5, 78q-1, 1607, 1681s, 1691c, 1692l, 
1693o, 6505, 6805, 6822; title 18 section 981; title 31 sections 3121, 
9110.