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: 12USC1813]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1813. Definitions
As used in this chapter--
(a) Definitions of Bank and Related Terms.--
(1) Bank.--The term ``bank''--
(A) means any national bank, State bank, and District bank,
and any Federal branch and insured branch;
(B) includes any former savings association that--
(i) has converted from a savings association charter;
and
(ii) is a Savings Association Insurance Fund member.
(2) State bank.--The term ``State bank'' means any bank, banking
association, trust company, savings bank, industrial bank (or
similar depository institution which the Board of Directors finds to
be operating substantially in the same manner as an industrial
bank), or other banking institution which--
(A) is engaged in the business of receiving deposits, other
than trust funds (as defined in this section); and
(B) is incorporated under the laws of any State or which is
operating under the Code of Law for the District of Columbia
(except a national bank),
including any cooperative bank or other unincorporated bank the
deposits of which were insured by the Corporation on the day before
August 9, 1989.
(3) State.--The term ``State'' means any State of the United
States, the District of Columbia, any territory of the United
States, Puerto Rico, Guam, American Samoa, the Trust Territory of
the Pacific Islands, the Virgin Islands, and the Northern Mariana
Islands.
(4) District bank.--The term ``District bank'' means any State
bank operating under the Code of Law of the District of Columbia.
(b) Definition of Savings Associations and Related Terms.--
(1) Savings association.--The term ``savings association''
means--
(A) any Federal savings association;
(B) any State savings association; and
(C) any corporation (other than a bank) that the Board of
Directors and the Director of the Office of Thrift Supervision
jointly determine to be operating in substantially the same
manner as a savings association.
(2) Federal savings association.--The term ``Federal savings
association'' means any Federal savings association or Federal
savings bank which is chartered under section 1464 of this title.
(3) State savings association.--The term ``State savings
association'' means--
(A) any building and loan association, savings and loan
association, or homestead association; or
(B) any cooperative bank (other than a cooperative bank
which is a State bank as defined in subsection (a)(2) of this
section),
which is organized and operating according to the laws of the State
(as defined in subsection (a)(3) of this section) in which it is
chartered or organized.
(c) Definitions Relating to Depository Institutions.--
(1) Depository institution.--The term ``depository institution''
means any bank or savings association.
(2) Insured depository institution.--The term ``insured
depository institution'' means any bank or savings association the
deposits of which are insured by the Corporation pursuant to this
chapter.
(3) Institutions included for certain purposes.--The term
``insured depository institution'' includes any uninsured branch or
agency of a foreign bank or a commercial lending company owned or
controlled by a foreign bank for purposes of section 1818 of this
title.
(4) Federal depository institution.--The term ``Federal
depository institution'' means any national bank, any Federal
savings association, and any Federal branch.
(5) State depository institution.--The term ``State depository
institution'' means any State bank, any State savings association,
and any insured branch which is not a Federal branch.
(d) Definitions Relating to Member Banks.--
(1) National member bank.--The term ``national member bank''
means any national bank which is a member of the Federal Reserve
System.
(2) State member bank.--The term ``State member bank'' means any
State bank which is a member of the Federal Reserve System.
(e) Definitions Relating to Nonmember Banks.--
(1) National nonmember bank.--The term ``national nonmember
bank'' means any national bank which--
(A) is located in any territory of the United States, Puerto
Rico, Guam, American Samoa, the Virgin Islands, or the Northern
Mariana Islands; and
(B) is not a member of the Federal Reserve System.
(2) State nonmember bank.--The term ``State nonmember bank''
means any State bank which is not a member of the Federal Reserve
System.
(f) The term ``mutual savings bank'' means a bank without capital
stock transacting a savings bank business, the net earnings of which
inure wholly to the benefit of its depositors after payment of
obligations for any advances by its organizers.
(g) Savings Bank.--The term ``savings bank'' means a bank (including
a mutual savings bank) which transacts its ordinary banking business
strictly as a savings bank under State laws imposing special
requirements on such banks governing the manner of investing their funds
and of conducting their business.
(h) The term ``insured bank'' means any bank (including a foreign
bank having an insured branch) the deposits of which are insured in
accordance with the provisions of this chapter; and the term
``noninsured bank'' means any bank the deposits of which are not so
insured.
(i) New Bank and Bridge Bank Defined.--
(1) New bank.--The term ``new bank'' means a new national bank,
other than a bridge bank, organized by the Corporation in accordance
with section 1821(m) of this title.
(2) Bridge bank.--The term ``bridge bank'' means a new national
bank organized by the Corporation in accordance with section 1821(n)
of this title.
(j) The term ``receiver'' includes a receiver, liquidating agent,
conservator, commission, person, or other agency charged by law with the
duty of winding up the affairs of a bank or savings association or of a
branch of a foreign bank.
(k) The term ``Board of Directors'' means the Board of Directors of
the Corporation.
(l) The term ``deposit'' means--
(1) the unpaid balance of money or its equivalent received or
held by a bank or savings association in the usual course of
business and for which it has given or is obligated to give credit,
either conditionally or unconditionally, to a commercial, checking,
savings, time, or thrift account, or which is evidenced by its
certificate of deposit, thrift certificate, investment certificate,
certificate of indebtedness, or other similar name, or a check or
draft drawn against a deposit account and certified by the bank or
savings association, or a letter of credit or a traveler's check on
which the bank or savings association is primarily liable: Provided,
That, without limiting the generality of the term ``money or its
equivalent'', any such account or instrument must be regarded as
evidencing the receipt of the equivalent of money when credited or
issued in exchange for checks or drafts or for a promissory note
upon which the person obtaining any such credit or instrument is
primarily or secondarily liable, or for a charge against a deposit
account, or in settlement of checks, drafts, or other instruments
forwarded to such bank or savings association for collection.
(2) trust funds as defined in this chapter received or held by
such bank or savings association, whether held in the trust
department or held or deposited in any other department of such bank
or savings association.
(3) money received or held by a bank or savings association, or
the credit given for money or its equivalent received or held by a
bank or savings association, in the usual course of business for a
special or specific purpose, regardless of the legal relationship
thereby established, including without being limited to, escrow
funds, funds held as security for an obligation due to the bank or
savings association or others (including funds held as dealers
reserves) or for securities loaned by the bank or savings
association, funds deposited by a debtor to meet maturing
obligations, funds deposited as advance payment on subscriptions to
United States Government securities, funds held for distribution or
purchase of securities, funds held to meet its acceptances or
letters of credit, and withheld taxes: Provided, That there shall
not be included funds which are received by the bank or savings
association for immediate application to the reduction of an
indebtedness to the receiving bank or savings association, or under
condition that the receipt thereof immediately reduces or
extinguishes such an indebtedness.
(4) outstanding draft (including advice or authorization to
charge a bank's or a savings association's balance in another bank
or savings association), cashier's check, money order, or other
officer's check issued in the usual course of business for any
purpose, including without being limited to those issued in payment
for services, dividends, or purchases, and
(5) such other obligations of a bank or savings association as
the Board of Directors, after consultation with the Comptroller of
the Currency, Director of the Office of Thrift Supervision, and the
Board of Governors of the Federal Reserve System, shall find and
prescribe by regulation to be deposit liabilities by general usage,
except that the following shall not be a deposit for any of the
purposes of this chapter or be included as part of the total
deposits or of an insured deposit:
(A) any obligation of a depository institution which is
carried on the books and records of an office of such bank or
savings association located outside of any State, unless--
(i) such obligation would be a deposit if it were
carried on the books and records of the depository
institution, and would be payable at, an office located in
any State; and
(ii) the contract evidencing the obligation provides by
express terms, and not by implication, for payment at an
office of the depository institution located in any State;
(B) any international banking facility deposit, including an
international banking facility time deposit, as such term is
from time to time defined by the Board of Governors of the
Federal Reserve System in regulation D or any successor
regulation issued by the Board of Governors of the Federal
Reserve System; and
(C) any liability of an insured depository institution that
arises under an annuity contract, the income of which is tax
deferred under section 72 of title 26.
(m) Insured Deposit.--
(1) In general.--Subject to paragraph (2), the term ``insured
deposit'' means the net amount due to any depositor for deposits in
an insured depository institution as determined under sections
1817(i) and 1821(a) of this title.
(2) In the case of any deposit in a branch of a foreign bank,
the term ``insured deposit'' means an insured deposit as defined in
paragraph (1) of this subsection which--
(A) is payable in the United States to--
(i) an individual who is a citizen or resident of the
United States,
(ii) a partnership, corporation, trust, or other legally
cognizable entity created under the laws of the United
States or any State and having its principal place of
business within the United States or any State, or
(iii) an individual, partnership, corporation, trust, or
other legally cognizable entity which is determined by the
Board of Directors in accordance with its regulations to
have such business or financial relationships in the United
States as to make the insurance of such deposit consistent
with the purposes of this chapter;
and
(B) meets any other criteria prescribed by the Board of
Directors by regulation as necessary or appropriate in its
judgment to carry out the purposes of this chapter or to
facilitate the administration thereof.
(3) Uninsured deposits.--The term ``uninsured deposit'' means
the amount of any deposit of any depositor at any insured depository
institution in excess of the amount of the insured deposits of such
depositor (if any) at such depository institution.
(4) Preferred deposits.--The term ``preferred deposits'' means
deposits of any public unit (as defined in paragraph (1)) at any
insured depository institution which are secured or collateralized
as required under State law.
(n) The term ``transferred deposit'' means a deposit in a new bank
or other insured depository institution made available to a depositor by
the Corporation as payment of the insured deposit of such depositor in a
closed bank, and assumed by such new bank or other insured depository
institution.
(o) The term ``domestic branch'' includes any branch bank, branch
office, branch agency, additional office, or any branch place of
business located in any State of the United States or in any Territory
of the United States, Puerto Rico, Guam, American Samoa, the Trust
Territory of the Pacific Islands, or the Virgin Islands at which
deposits are received or checks paid or money lent. The term ``domestic
branch'' does not include an automated teller machine or a remote
service unit. The term ``foreign branch'' means any office or place of
business located outside the United States, its territories, Puerto
Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands,
or the Virgin Islands, at which banking operations are conducted.
(p) The term ``trust funds'' means funds held by an insured
depository institution in a fiduciary capacity and includes, without
being limited to, funds held as trustee, executor, administrator,
guardian, or agent.
(q) Appropriate Federal Banking Agency.--The term ``appropriate
Federal banking agency'' means--
(1) the Comptroller of the Currency, in the case of any national
banking association, any District bank, or any Federal branch or
agency of a foreign bank;
(2) the Board of Governors of the Federal Reserve System, in the
case of--
(A) any State member insured bank (except a District bank),
(B) any branch or agency of a foreign bank with respect to
any provision of the Federal Reserve Act [12 U.S.C. 221 et seq.]
which is made applicable under the International Banking Act of
1978 [12 U.S.C. 3101 et seq.],
(C) any foreign bank which does not operate an insured
branch,
(D) any agency or commercial lending company other than a
Federal agency,
(E) supervisory or regulatory proceedings arising from the
authority given to the Board of Governors under section 7(c)(1)
of the International Banking Act of 1978 [12 U.S.C. 3105(c)(1)],
including such proceedings under the Financial Institutions
Supervisory Act of 1966, and
(F) any bank holding company and any subsidiary of a bank
holding company (other than a bank);
(3) the Federal Deposit Insurance Corporation in the case of a
State nonmember insured bank (except a District bank), or a foreign
bank having an insured branch; and
(4) the Director of the Office of Thrift Supervision in the case
of any savings association or any savings and loan holding company.
Under the rule set forth in this subsection, more than one agency may be
an appropriate Federal banking agency with respect to any given
institution.
(r) State Bank Supervisor.--
(1) In general.--The term ``State bank supervisor'' means any
officer, agency, or other entity of any State which has primary
regulatory authority over State banks or State savings associations
in such State.
(2) Interstate application.--The State bank supervisors of more
than 1 State may be the appropriate State bank supervisor for any
insured depository institution.
(s) Definitions Relating to Foreign Banks and Branches.--
(1) Foreign bank.--The term ``foreign bank'' has the meaning
given to such term by section 1(b)(7) of the International Banking
Act of 1978 [12 U.S.C. 3101(b)(7)].
(2) Federal branch.--The term ``Federal branch'' has the meaning
given to such term by section 1(b)(6) of the International Banking
Act of 1978 [12 U.S.C. 3101(b)(6)].
(3) Insured branch.--The term ``insured branch'' means any
branch (as defined in section 1(b)(3) of the International Banking
Act of 1978 [12 U.S.C. 3101(b)(3)]) of a foreign bank any deposits
in which are insured pursuant to this chapter.
(t) Includes, Including.--
(1) In general.--The terms ``includes'' and ``including'' shall
not be construed more restrictively than the ordinary usage of such
terms so as to exclude any other thing not referred to or described.
(2) Rule of construction.--Paragraph (1) shall not be construed
as creating any inference that the term ``includes'' or
``including'' in any other provision of Federal law may be deemed to
exclude any other thing not referred to or described.
(u) Institution-Affiliated Party.--The term ``institution-affiliated
party'' means--
(1) any director, officer, employee, or controlling stockholder
(other than a bank holding company) of, or agent for, an insured
depository institution;
(2) any other person who has filed or is required to file a
change-in-control notice with the appropriate Federal banking agency
under section 1817(j) of this title;
(3) any shareholder (other than a bank holding company),
consultant, joint venture partner, and any other person as
determined by the appropriate Federal banking agency (by regulation
or case-by-case) who participates in the conduct of the affairs of
an insured depository institution; and
(4) any independent contractor (including any attorney,
appraiser, or accountant) who knowingly or recklessly participates
in--
(A) any violation of any law or regulation;
(B) any breach of fiduciary duty; or
(C) any unsafe or unsound practice,
which caused or is likely to cause more than a minimal financial
loss to, or a significant adverse effect on, the insured depository
institution.
(v) Violation.--The term ``violation'' includes any action (alone or
with another or others) for or toward causing, bringing about,
participating in, counseling, or aiding or abetting a violation.
(w) Definitions Relating to Affiliates of Depository Institutions.--
(1) Depository institution holding company.--The term
``depository institution holding company'' means a bank holding
company or a savings and loan holding company.
(2) Bank holding company.--The term ``bank holding company'' has
the meaning given to such term in section 1841 of this title.
(3) Savings and loan holding company.--The term ``savings and
loan holding company'' has the meaning given to such term in section
1467a of this title.
(4) Subsidiary.--The term ``subsidiary''--
(A) means any company which is owned or controlled directly
or indirectly by another company; and
(B) includes any service corporation owned in whole or in
part by an insured depository institution or any subsidiary of
such a service corporation.
(5) Control.--The term ``control'' has the meaning given to such
term in section 1841 of this title.
(6) Affiliate.--The term ``affiliate'' has the meaning given to
such term in section 1841(k) of this title.
(7) Company.--The term ``company'' has the same meaning as in
section 1841(b) of this title.
(x) Definitions Relating to Default.--
(1) Default.--The term ``default'' means, with respect to an
insured depository institution, any adjudication or other official
determination by any court of competent jurisdiction, the
appropriate Federal banking agency, or other public authority
pursuant to which a conservator, receiver, or other legal custodian
is appointed for an insured depository institution or, in the case
of a foreign bank having an insured branch, for such branch.
(2) In danger of default.--The term ``in danger of default''
means an insured depository institution with respect to which (or in
the case of a foreign bank having an insured branch, with respect to
such insured branch) the appropriate Federal banking agency or State
chartering authority has advised the Corporation (or, if the
appropriate Federal banking agency is the Corporation, the
Corporation has determined) that--
(A) in the opinion of such agency or authority--
(i) the depository institution or insured branch is not
likely to be able to meet the demands of the institution's
or branch's depositors or pay the institution's or branch's
obligations in the normal course of business; and
(ii) there is no reasonable prospect that the depository
institution or insured branch will be able to meet such
demands or pay such obligations without Federal assistance;
or
(B) in the opinion of such agency or authority--
(i) the depository institution or insured branch has
incurred or is likely to incur losses that will deplete all
or substantially all of its capital; and
(ii) there is no reasonable prospect that the capital of
the depository institution or insured branch will be
replenished without Federal assistance.
(y) The term ``deposit insurance fund'' means the Bank Insurance
Fund or the Savings Association Insurance Fund, as appropriate.
(z) Federal Banking Agency.--The term ``Federal banking agency''
means the Comptroller of the Currency, the Director of the Office of
Thrift Supervision, the Board of Governors of the Federal Reserve
System, or the Federal Deposit Insurance Corporation.
(Sept. 21, 1950, ch. 967, Sec. 2[3], 64 Stat. 873; July 14, 1952, ch.
725, 66 Stat. 605; Aug. 1, 1956, ch. 852, Sec. 3, 70 Stat. 908; Pub. L.
86-671, Sec. 1, July 14, 1960, 74 Stat. 546; Pub. L. 89-695, title II,
Sec. 201, title III, Secs. 301(a), 303(a), Oct. 16, 1966, 80 Stat. 1046,
1055, 1056; Pub. L. 91-151, Sec. 7(a)(1), Dec. 23, 1969, 83 Stat. 375;
Pub. L. 91-609, title IX, Sec. 910(a)-(f), Dec. 31, 1970, 84 Stat. 1811,
1812; Pub. L. 93-495, title I, Secs. 101(a)(1), 102(a)(1), Oct. 28,
1974, 88 Stat. 1500, 1502; Pub. L. 95-369, Sec. 6(c)(2)-(6), Sept. 17,
1978, 92 Stat. 614, 615; Pub. L. 95-630, title III, Sec. 301(a), Nov.
10, 1978, 92 Stat. 3675; Pub. L. 96-221, title III, Sec. 308(a)(1)(A),
Mar. 31, 1980, 94 Stat. 147; Pub. L. 97-110, title I, Secs. 102, 103(a),
Dec. 26, 1981, 95 Stat. 1513; Pub. L. 97-320, title I, Sec. 113(a), (b),
title VII, Sec. 703(a), (b), Oct. 15, 1982, 96 Stat. 1473, 1538, 1539;
Pub. L. 100-86, title I, Sec. 101(g)(1), title V, Sec. 503(b), Aug. 10,
1987, 101 Stat. 563, 632; Pub. L. 101-73, title II, Secs. 201(a), 204,
Aug. 9, 1989, 103 Stat. 187, 190; Pub. L. 102-242, title I,
Secs. 111(e), 112(b), 131(c)(3), 141(f), 161(c), title III,
Secs. 305(c), 311(b)(5)(A), Dec. 19, 1991, 105 Stat. 2242, 2266, 2278,
2286, 2355, 2366; Pub. L. 102-550, title XVI, Secs. 1603(b)(2)(B),
(d)(5), 1606(g)(2), Oct. 28, 1992, 106 Stat. 4079, 4080, 4089; Pub. L.
103-204, Sec. 19(b), Dec. 17, 1993, 107 Stat. 2404; Pub. L. 103-325,
title III, Sec. 326(b)(2), title VI, Sec. 602(a)(1), Sept. 23, 1994, 108
Stat. 2229, 2288; Pub. L. 104-208, div. A, title II, Secs. 2205(b),
2614(a), 2704(d)(6)(A), (14)(A), Sept. 30, 1996, 110 Stat. 3009-405,
3009-478, 3009-488, 3009-490.)
References in Text
The Federal Reserve Act, referred to in subsec. (q)(2)(B), is act
Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, which is classified
principally to chapter 3 (Sec. 221 et seq.) of this title. For complete
classification of this Act to the Code, see References in Text note set
out under section 226 of this title and Tables.
The International Banking Act of 1978, referred to in subsec.
(q)(2)(B), is Pub. L. 95-369, Sept. 17, 1978, 92 Stat. 607, which
enacted sections 347d, 611a, and 3101 to 3111 of this title, amended
sections 72, 378, 614, 615, 618, 619, 1813, 1815, 1817, 1818, 1820,
1821, 1822, 1823, 1828, 1829b, 1831b, and 1841 of this title, and
enacted provisions set out as notes under sections 36, 247, 601, 611a,
and 3101 of this title. For complete classification of this Act to the
Code, see Short Title note set out under section 3101 of this title and
Tables.
The Financial Institutions Supervisory Act of 1966, referred to in
subsec. (q)(2)(E), is Pub. L. 89-695, Oct. 16, 1966, 80 Stat. 1028. For
complete classification of this Act to the Code, see Short Title of 1966
Amendment note set out under section 1464 of this title and Tables.
Prior Provisions
Section is derived from subsec. (c) of former section 264 of this
title. See Codification note set out under section 1811 of this title.
Amendments
1996--Subsec. (a)(1)(B). Pub. L. 104-208, Sec. 2704(d)(14)(A), which
directed striking out subpar. (B) and adding a new subpar. (B), was not
executed. See Effective Date of 1996 Amendment note below.
Subsec. (l)(5)(C). Pub. L. 104-208, Sec. 2614(a), added subpar. (C).
Subsec. (o). Pub. L. 104-208, Sec. 2205(b), substituted ``lent. The
term `domestic branch' does not include an automated teller machine or a
remote service unit. The'' for ``lent; and the''.
Subsec. (y). Pub. L. 104-208, Sec. 2704(d)(6)(A), which directed the
general amendment of subsec. (y), was not executed. See Effective Date
of 1996 Amendment note below.
1994--Subsec. (i)(1). Pub. L. 103-325, Sec. 602(a)(1)(A),
substituted ``section 1821(m) of this title'' for ``section 1821(h) of
this title''.
Subsec. (l)(4). Pub. L. 103-325, Sec. 602(a)(1)(B), substituted ``a
bank's or a'' for ``bank's or'' before ``savings association's
balance''.
Subsec. (l)(5)(A). Pub. L. 103-325, Sec. 326(b)(2), amended subpar.
(A) generally. Prior to amendment, subpar. (A) read as follows: ``any
obligation of a bank or savings association which is payable only at an
office of such bank or savings association located outside of the States
of the United States, the District of Columbia, Puerto Rico, Guam,
American Samoa, the Trust Territory of the Pacific Islands, the Virgin
Islands, and the Northern Mariana Islands; and''.
Subsec. (q)(2)(E). Pub. L. 103-325, Sec. 602(a)(1)(C), substituted
``Financial Institutions Supervisory Act of 1966'' for ``Depository
Institutions Supervisory Act''.
1993--Subsec. (w)(7). Pub. L. 103-204, Sec. 19(b)(2), added par.
(7).
Subsec. (z). Pub. L. 103-204, Sec. 19(b)(1), amended subsec. (z)
generally. Prior to amendment, subsec. (z) read as follows: ``Federal
Banking Agencies.--The term `Federal banking agencies' means the Office
of the Comptroller of the Currency, the Office of Thrift Supervision,
the Board of Governors of the Federal Reserve System, and the Federal
Deposit Insurance Corporation.''
1992--Subsec. (i)(2). Pub. L. 102-550, Sec. 1606(g)(2), substituted
``1821(n)'' for ``1821(i)''.
Subsec. (r). Pub. L. 102-550, Sec. 1603(b)(2)(B), which directed the
amendment of section 112 of the ``Federal Deposit Insurance Corporation
Improvement Act of 1992'', was executed by amending section 112 of Pub.
L. 102-242, which is the Federal Deposit Insurance Corporation
Improvement Act of 1991, to reflect the probable intent of Congress. See
1991 Amendment note below.
Subsec. (y). Pub. L. 102-550, Sec. 1603(d)(5), amended directory
language of Pub. L. 102-242, Sec. 131(c)(3). See 1991 Amendment note
below.
1991--Subsec. (m). Pub. L. 102-242, Sec. 311(b)(5)(A), inserted
heading.
Subsec. (m)(1). Pub. L. 102-242, Sec. 311(b)(5)(A), added par. (1)
and struck out former par. (1) which read as follows: ``Subject to the
provisions of paragraph (2) of this subsection, the term `insured
deposit' means the net amount due to any depositor (other than a
depositor referred to in the third sentence of this subsection) for
deposits in an insured depository institution (after deducting offsets)
less any part thereof which is in excess of $100,000. Such net amount
shall be determined according to such regulations as the Board of
Directors may prescribe, and in determining the amount due to any
depositor there shall be added together all deposits in the depository
institution maintained in the same capacity and the same right for his
benefit either in his own name or in the names of others except trust
funds which shall be insured as provided in subsection (i) of section
1817 of this title. Each officer, employee, or agent of the United
States, of any State of the United States, of the District of Columbia,
of any Territory of the United States, of Puerto Rico, of Guam, of
American Samoa, of the Trust Territory of the Pacific Islands, of the
Virgin Islands, of the Northern Mariana Islands, of any county, of any
municipality, or of any political subdivision thereof, herein called
`public unit', having official custody of public funds and lawfully
depositing the same in an insured depository institution shall, for the
purpose of determining the amount of the insured deposits, be deemed a
depositor in such custodial capacity separate and distinct from any
other officer, employee, or agent of the same or any public unit having
official custody of public funds and lawfully depositing the same in the
same insured depository institution in custodial capacity. For the
purpose of clarifying and defining the insurance coverage under this
subsection and subsection (i) of section 1817 of this title, the
Corporation is authorized to define, with such classifications and
exceptions as it may prescribe, terms used in those subsections, in
subsection (p) of this section, and in subsections (a) and (i) of
section 1821 of this title and the extent of the insurance coverage
resulting therefrom.''
Subsec. (m)(3), (4). Pub. L. 102-242, Sec. 141(f), added pars. (3)
and (4).
Subsec. (r). Pub. L. 102-242, Sec. 112(b), as added by Pub. L. 102-
550, Sec. 1603(b)(2)(B), amended subsec. (r) generally. Prior to
amendment, subsec. (r) read as follows: ``The terms `foreign bank' and
`Federal branch' shall be construed consistently with the usage of such
terms in the International Banking Act of 1978.''
Subsec. (s). Pub. L. 102-242, Sec. 111(e), amended subsec. (s)
generally. Prior to amendment, subsec. (s) read as follows: ``The term
`insured branch' means a branch of a foreign bank any deposits in which
are insured in accordance with the provisions of this chapter.''
Subsec. (w). Pub. L. 102-242, Sec. 161(c), substituted ``Affiliates
of Depository Institutions'' for ``Holding Companies'' in heading.
Subsec. (y). Pub. L. 102-242, Sec. 131(c)(3), as amended by Pub. L.
102-550, Sec. 1603(d)(5), added subsec. (y).
Subsec. (z). Pub. L. 102-242, Sec. 305(c), added subsec. (z).
1989--Subsec. (a). Pub. L. 101-73, Sec. 204(a), amended subsec. (a)
generally, substituting provisions defining ``bank'', ``State bank'',
``State'', and ``District bank'' for provisions defining ``State bank''
and ``State''.
Subsec. (b). Pub. L. 101-73, Sec. 204(b), amended subsec. (b)
generally, substituting provisions defining ``savings association'',
``Federal savings association'', and ``State savings association'' for
provisions defining ``State member bank'' and ``State nonmember bank''.
Subsec. (c). Pub. L. 101-73, Sec. 204(c), amended subsec. (c)
generally, substituting definitions relating to depository institutions
for definition of ``District bank''.
Subsec. (d). Pub. L. 101-73, Sec. 204(d), amended subsec. (d)
generally, substituting provisions defining ``national member bank'' and
``State member bank'' for provisions defining ``national member bank''.
Subsec. (e). Pub. L. 101-73, Sec. 204(e), amended subsec. (e)
generally, substituting provisions defining ``national nonmember bank''
and ``State nonmember bank'' for provisions defining ``national
nonmember bank''.
Subsec. (j). Pub. L. 101-73, Sec. 204(f)(1), inserted ``or savings
association'' after ``of a bank''.
Subsec. (l)(1) to (3). Pub. L. 101-73, Sec. 204(f)(2)(A), inserted
``or savings association'' after ``a bank'', ``the bank'', ``receiving
bank'', and ``such bank'' wherever appearing.
Subsec. (l)(4). Pub. L. 101-73, Sec. 204(f)(2)(A), (B), inserted
``or savings association'' after ``another bank'', and ``or savings
association's'' after ``bank's''.
Subsec. (l)(5). Pub. L. 101-73, Sec. 204(f)(2)(A), (C), inserted
``or savings association'' after ``a bank'', and ``, Director of the
Office of Thrift Supervision,'' after ``Comptroller of the Currency''.
Subsec. (l)(5)(A). Pub. L. 101-73, Sec. 204(f)(2)(A), (D), inserted
``or savings association'' after ``a bank'' and after ``such bank'', and
substituted ``the Virgin Islands, and the Northern Mariana Islands'' for
``and the Virgin Islands''.
Subsec. (m)(1). Pub. L. 101-73, Sec. 204(f)(3)(A), substituted
``deposits in the depository institution maintained'' for ``deposits in
the bank maintained'' and inserted reference to the Northern Mariana
Islands.
Pub. L. 101-73, Sec. 201(a), substituted ``insured depository
institution'' for ``insured bank'' wherever appearing.
Subsec. (m)(2). Pub. L. 101-73, Sec. 204(f)(3)(B), substituted
``term'' for ``ther''.
Subsec. (n). Pub. L. 101-73, Sec. 201(a), substituted ``insured
depository institution'' for ``insured bank'' wherever appearing.
Subsec. (p). Pub. L. 101-73, Sec. 201(a), substituted ``insured
depository institution'' for ``insured bank''.
Subsec. (q). Pub. L. 101-73, Sec. 204(f)(4), amended subsec. (q)
generally. Prior to amendment, subsec. (q) read as follows: ``The term
`appropriate Federal banking agency' shall mean--
``(1) the Comptroller of the Currency in the case of a national
banking association, a District bank, or a Federal branch or agency
of a foreign bank;
``(2) the Board of Governors of the Federal Reserve System--
``(A) in the case of a State member insured bank (except a
District bank),
``(B) in the case of any branch or agency of a foreign bank
with respect to any provision of the Federal Reserve Act which
is made applicable under the International Banking Act of 1978,
``(C) in the case of any foreign bank which does not operate
an insured branch,
``(D) in the case of any agency or commercial lending
company other than a Federal agency, and
``(E) in the case of supervisory or regulatory proceedings
arising from the authority given to the Board of Governors under
section 7(c)(1) of the International Banking Act of 1978,
including such proceedings under the Financial Institutions
Supervisory Act,
``(3) the Federal Deposit Insurance Corporation in the case of a
State nonmember insured Bank (except a District bank) or a foreign
bank having an insured branch; and
``(4) the Federal Home Loan Bank Board in the case of an insured
Federal savings bank.
Under the rule set forth in this subsection, more than one agency may be
an appropriate Federal banking agency with respect to any given
institution. For the purposes of subsections (b) through (n) of section
1818 of this title, the term `insured bank' shall be deemed to include
any uninsured branch or agency of a foreign bank or any commercial
lending company owned or controlled by a foreign bank.''
Subsec. (t). Pub. L. 101-73, Sec. 204(f)(5), amended subsec. (t)
generally, substituting provisions relating to definition and
construction of ``includes'' and ``including'' for provisions defining
``insured Federal savings bank''.
Subsecs. (u) to (x). Pub. L. 101-73, Sec. 204(f)(6), added subsecs.
(u) to (x).
1987--Subsec. (g). Pub. L. 100-86, Sec. 101(g)(1), amended subsec.
(g) generally. Prior to amendment, subsec. (g) read as follows: ``The
term `savings bank' means a bank (other than a mutual savings bank)
which transacts its The term `new bank' means a new national banking
association organized by the Corporation to assume the insured deposits
of an insured bank closed on account of inability to meet the demands of
its depositors and otherwise to perform temporarily the functions
prescribed in this chapter.ordinary banking business strictly as a
savings bank under State laws imposing special requirements on such
banks governing the manner of investing their funds and of conducting
their business: Provided, That the bank maintains, until maturity date
or until withdrawn, all deposits made with it (other than funds held by
it in a fiduciary capacity) as time savings deposits of the specific
term type or of the type where the right is reserved to the bank to
require written notice before permitting withdrawal: Provided further,
That such bank to be considered a savings bank must elect to become
subject to regulations of the Corporation with respect to the redeposit
of maturing deposits and prohibiting withdrawal of deposits by checking
except in cases where such withdrawal was permitted by law on August 23,
1935, from specifically designated deposit accounts totaling not more
than 15 per centum of the bank's total deposits.''
Subsec. (i). Pub. L. 100-86, Sec. 503(b), amended subsec. (i)
generally. Prior to amendment, subsec. (i) read as follows: ``The term
`new bank' means a new national banking association organized by the
Corporation to assume the insured deposits of an insured bank closed on
account of inability to meet the demands of its depositors and otherwise
to perform temporarily the functions prescribed in this chapter.''
1982--Subsec. (a). Pub. L. 97-320, Sec. 703(a), inserted
``industrial bank or similar financial institution which the Board of
Directors finds to be operating substantially in the same manner as an
industrial bank,'' before ``or other banking institution''.
Subsec. (l)(1). Pub. L. 97-320, Sec. 703(b), inserted ``thrift
certificate, investment certificate, certificate of indebtedness, or
other similar name,'' before ``or a check or draft drawn against a
deposit account''.
Subsec. (q)(4). Pub. L. 97-320, Sec. 113(a), added par. (4).
Subsec. (t). Pub. L. 97-320, Sec. 113(b), added subsec. (t).
1981--Subsec. (a). Pub. L. 97-110, Sec. 103(a)(1), inserted ``the
Trust Territory of the Pacific Islands,'' after ``American Samoa,''
wherever appearing.
Subsec. (l)(5). Pub. L. 97-110, Sec. 102, reenacted without change
the provisions preceding subpar. (A), redesignated remaining existing
provisions as subpar. (A), inserted reference to banks located outside
of the Trust Territory of the Pacific Islands in subpar. (A) as thus
redesignated, and added subpar. (B).
Subsec. (m)(1). Pub. L. 97-110, Sec. 103(a)(2), inserted ``of the
Trust Territory of the Pacific Islands,'' after ``American Samoa,''.
Subsec. (o). Pub. L. 97-110, Sec. 103(a)(3), inserted ``the Trust
Territory of the Pacific Islands,'' after ``American Samoa,'' wherever
appearing.
1980--Subsec. (m)(1). Pub. L. 96-221 substituted ``$100,000'' for
``$40,000''.
1978--Subsec. (h). Pub. L. 95-369, Sec. 6(c)(2), inserted
``(including a foreign bank having an insured branch)'' after ``The term
`insured bank' means any bank''.
Subsec. (j). Pub. L. 95-369, Sec. 6(c)(3), inserted ``or of a branch
of a foreign bank'' after ``affairs of a bank''.
Subsec. (m). Pub. L. 95-369, Sec. 6(c)(4), designated existing
provisions as par. (1), inserted ``Subject to the provisions of
paragraph (2) of this subsection'', and added par. (2).
Subsec. (o). Pub. L. 95-630 inserted ``domestic'' before ``branch''
the first time it appeared, and inserted a definition of ``foreign
branch'' at end.
Subsec. (q). Pub. L. 95-369, Sec. 6(c)(5), inserted reference to a
Federal branch or agency of a foreign bank in par. (1), designated
existing provisions of par. (2) as par. (2)(A) and added subpars. (B) to
(E), inserted reference to a foreign bank having an insured branch in
par. (3), and inserted closing provisions relating to the number of
agencies which may be an appropriate Federal banking agency, and
defining ``insured bank'' for purposes of section 1818(b) to (n) of this
title.
Subsecs. (r), (s). Pub. L. 95-369, Sec. 6(c)(6), added subsecs. (r)
and (s).
1974--Subsec. (m). Pub. L. 93-495 inserted ``(other than a depositor
referred to in the third sentence of this subsection)'' after ``net
amount due to any depositor'', and substituted ``$40,000'' for
``$20,000''.
1970--Pub. L. 91-609 inserted reference to American Samoa in
subsecs. (a), (d), (e), (l)(5), (m), and (o), respectively.
1969--Subsec. (m). Pub. L. 91-151 substituted $20,000 for $15,000 in
first sentence.
1966--Subsec. (m). Pub. L. 89-695, Secs. 301(a), 303(a), substituted
``$15,000'' for ``$10,000'' in first sentence and inserted sentence
which, for purpose of clarifying and defining the insurance coverage
under subsec. (m) of this section and section 1817(i) of this title,
authorized the Corporation to define terms used in those provisions,
subsec. (p) of this section, and section 1821(a) and (i) of this title
and the extent of insurance coverage resulting therefrom, respectively.
Subsec. (q). Pub. L. 89-695, Sec. 201, added subsec. (q).
1960--Subsec. (l). Pub. L. 86-671 amended subsec. (l) generally, and
among other changes, inserted in par. (1) ``or held'', ``either
conditionally or unconditionally'', ``or a check or draft drawn against
a deposit account and certified by the bank, or a letter of credit or a
traveler's check on which the bank is primarily liable'', and inserted
the proviso, added pars. (3) and (4), inserted provisions in par. (5)
requiring the Board of Directors to consult with the Comptroller of the
Currency and the Board of Governors of the Federal Reserve System, and
struck out provisions which permitted mainland banks to exclude from
deposit insurance the deposits of any of its branches in the Virgin
Islands.
1956--Subsec. (a). Act Aug. 1, 1956, Sec. 3(a), inserted ``Guam,''
after ``Puerto Rico,'' and substituted a comma for the period and
inserted ``and the word `State' means any State of the United States,
the District of Columbia, any Territory of the United States, Puerto
Rico, Guam, or the Virgin Islands''.
Subsecs. (d), (e). Act Aug. 1, 1956, Sec. 3(b), inserted ``Guam,''
after ``Puerto Rico,''.
Subsec. (l). Act Aug. 1, 1956, Sec. 3(c), inserted ``Guam,'' after
``Puerto Rico,'' in first proviso.
Subsec. (m). Act Aug. 1, 1956, Sec. 3(d), inserted ``of Guam,''
after ``of Puerto Rico,''.
Subsec. (o). Act Aug. 1, 1956, Sec. 3(b), inserted ``Guam,'' after
``Puerto Rico,''.
1952--Subsec. (l). Act July 14, 1952, made it compulsory for banks
having branches in Puerto Rico to insure their deposits.
Effective Date of 1996 Amendment
Section 2614(b) of div. A of Pub. L. 104-208 provided that: ``The
amendments made by subsection (a) [amending this section] shall apply to
any liability of an insured depository that arises under an annuity
contract issued on or after the date of enactment of this Act [Sept. 30,
1996].''
Amendment by section 2704(d)(6)(A), (14)(A) of Pub. L. 104-208
effective Jan. 1, 1999, if no insured depository institution is a
savings association on that date, see section 2704(c) of Pub. L. 104-
208, set out as a note under section 1821 of this title.
Effective Date of 1992 Amendment
Amendment by 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)(3) 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 311(b)(5)(A) of Pub. L. 102-242 not applicable
to any time deposit which was made before Dec. 19, 1991, and matures
after end of 2-year period beginning Dec. 19, 1991, with rollovers and
renewals treated as new deposits, see section 311(c)(2) of Pub. L. 102-
242, set out as a note under section 1821 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-221 effective Mar. 31, 1980, see section
308(e) of Pub. L. 96-221, set out as a note under section 1817 of this
title.
Applicability of 1980 Amendment
Section 308(a)(2) of Pub. L. 96-221 provided that: ``The amendments
made by this subsection [amending this section and sections 1817 and
1821 of this title] are not applicable to any claim arising out of the
closing of a bank prior to the effective date of this section [see
section 308(e) of Pub. L. 96-221, set out as a note under section 1817
of this title].''
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-630 effective on 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.
Effective Date of 1974 Amendment
Section 101(g) of Pub. L. 93-495 provided that: ``This section and
the amendments made by it [amending this section and sections 1464,
1724, 1728, 1757, 1787, 1817, and 1821 of this title] shall take effect
on the thirtieth day beginning after the date of enactment of this Act
[Oct. 28, 1974].''
Section 102(b), (c) of Pub. L. 93-495 provided that:
``(b) The amendments made by this section [amending this section and
sections 1817 and 1821 of this title] are not applicable to any claim
arising out of the closing of a bank prior to the effective date of this
section.
``(c) The amendments made by this section shall take effect on the
thirtieth day beginning after the date of enactment of this Act [Oct.
28, 1974].''
Effective Date of 1969 Amendment
Section 7(b) of Pub. L. 91-151 provided that: ``The amendments made
by this section [amending this section and sections 1817 and 1821 of
this title] are not applicable to any claim arising out of the closing
of a bank prior to the date of enactment of this Act [Dec. 23, 1969].''
Effective Date of 1966 Amendment
Section 301(e) of Pub. L. 89-695 provided that: ``The amendments
made by this section [amending this section and sections 1817 and 1821
of this title] shall not be applicable to any claim arising out of the
closing of a bank where such closing is prior to the date of enactment
of this Act [Oct. 16, 1966].''
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 this section and
sections 1464, 1730, 1817 to 1820 of this title, repealing section 77 of
this title, and enacting provisions set out as notes under this section
and sections 1464 and 1730 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''.
Effective Date of 1960 Amendment
Amendment by Pub. L. 86-671 effective Jan. 1, 1961, see section 7 of
Pub. L. 86-671, set out as a note under section 1817 of this title.
Termination of Trust Territory of the Pacific Islands
For termination of Trust Territory of the Pacific Islands, see note
set out preceding section 1681 of Title 48, Territories and Insular
Possessions.
Conditions Governing Employment of Personnel Not Repealed, Modified, or
Affected
Section 206 of title II of Pub. L. 89-695 provided that: ``Nothing
contained in this title [amending this section and sections 1817 to 1820
of this title and repealing section 77 of this title] shall be construed
to repeal, modify, or affect the provisions of section 19 of the Federal
Deposit Insurance Act (12 U.S.C. 1829).''
Section Referred to in Other Sections
This section is referred to in sections 24, 24a, 30, 43, 93, 191,
248, 265, 347b, 371b-2, 375b, 461, 504, 505, 506, 1422, 1441, 1441a,
1462, 1462a, 1464, 1467, 1467a, 1715z-14, 1735f-7a, 1759, 1785, 1786,
1786a, 1790d, 1815, 1817, 1820a, 1828, 1828a, 1828b, 1831q, 1831r,
1831w, 1832, 1834, 1834a, 1834b, 1835, 1835a, 1841, 1842, 1843, 1847,
1861, 1953, 1972, 2013, 2122, 2245, 2278a-3, 2278b-4, 2802, 2804, 2902,
2903, 2906, 2907, 3101, 3102, 3103, 3104, 3105, 3108, 3110, 3350, 3413,
3902, 3909, 4009, 4204, 4224, 4309, 4421, 4702, 4713, 4742, 4801, 4805a,
4808, 4809, 4909 of this title; title 7 sections 1a, 6f, 27; title 10
sections 4357, 6975, 9356; title 11 sections 101, 109, 781; title 15
sections 57a, 77c, 78c, 78m, 78o, 78o-5, 78q, 80a-2, 80a-17, 80a-26,
80a-34, 80b-3, 80b-10a, 1607, 1679a, 1681s, 1691c, 1692l, 1693o, 6701,
6716, 6805, 6809, 6825; title 18 sections 20, 656, 1004, 1005, 1906,
2113; title 20 section 1085; title 22 section 5426; title 26 sections
42, 414; title 29 section 1134; title 31 sections 5312, 5318, 5318A,
5321, 5326; title 42 sections 669a, 5318a, 9601.