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: 12USC1829]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1829. Penalty for unauthorized participation by convicted
individual
(a) Prohibition
(1) In general
Except with the prior written consent of the Corporation--
(A) any person who has been convicted of any criminal
offense involving dishonesty or a breach of trust or money
laundering, or has agreed to enter into a pretrial diversion or
similar program in connection with a prosecution for such
offense, may not--
(i) become, or continue as, an institution-affiliated
party with respect to any insured depository institution;
(ii) own or control, directly or indirectly, any insured
depository institution; or
(iii) otherwise participate, directly or indirectly, in
the conduct of the affairs of any insured depository
institution; and
(B) any insured depository institution may not permit any
person referred to in subparagraph (A) to engage in any conduct
or continue any relationship prohibited under such subparagraph.
(2) Minimum 10-year prohibition period for certain offenses
(A) In general
If the offense referred to in paragraph (1)(A) in connection
with any person referred to in such paragraph is--
(i) an offense under--
(I) section 215, 656, 657, 1005, 1006, 1007,
1008,\1\ 1014, 1032, 1344, 1517, 1956, or 1957 of title
18; or
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\1\ See References in Text note below.
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(II) section 1341 or 1343 of such title which
affects any financial institution (as defined in section
20 of such title); or
(ii) the offense of conspiring to commit any such
offense,
the Corporation may not consent to any exception to the
application of paragraph (1) to such person during the 10-year
period beginning on the date the conviction or the agreement of
the person becomes final.
(B) Exception by order of sentencing court
(i) In general
On motion of the Corporation, the court in which the
conviction or the agreement of a person referred to in
subparagraph (A) has been entered may grant an exception to
the application of paragraph (1) to such person if granting
the exception is in the interest of justice.
(ii) Period for filing
A motion may be filed under clause (i) at any time
during the 10-year period described in subparagraph (A) with
regard to the person on whose behalf such motion is made.
(b) Penalty
Whoever knowingly violates subsection (a) of this section shall be
fined not more than $1,000,000 for each day such prohibition is violated
or imprisoned for not more than 5 years, or both.
(Sept. 21, 1950, ch. 967, Sec. 2[19], 64 Stat. 893; Pub. L. 101-73,
title IX, Sec. 910(a), Aug. 9, 1989, 103 Stat. 477; Pub. L. 101-647,
title XXV, Sec. 2502(a), Nov. 29, 1990, 104 Stat. 4860; Pub. L. 102-550,
title XV, Sec. 1505, Oct. 28, 1992, 106 Stat. 4055; Pub. L. 103-322,
title XXXII, Sec. 320605, Sept. 13, 1994, 108 Stat. 2119.)
References in Text
Section 1008 of title 18, referred to in subsec. (a)(2)(A)(i)(I),
was repealed by Pub. L. 101-73, title IX, Sec. 961(g)(1), Aug. 9, 1989,
103 Stat. 500.
Amendments
1994--Subsec. (a)(2)(A)(i)(I). Pub. L. 103-322 substituted ``1517,
1956, or 1957'' for ``or 1956''.
1992--Subsec. (a)(1)(A). Pub. L. 102-550 inserted ``or money
laundering'' after ``breach of trust''.
1990--Subsec. (a). Pub. L. 101-647 amended subsec. (a) generally.
Prior to amendment, subsec. (a) read as follows: ``Except with the prior
written consent of the Corporation--
``(1) any person who has been convicted of any criminal offense
involving dishonesty or a breach of trust may not participate,
directly or indirectly, in any manner in the conduct of the affairs
of an insured depository institution; and
``(2) an insured depository institution may not permit such
participation.''
1989--Pub. L. 101-73 amended section generally. Prior to amendment,
section read as follows: ``Except with the written consent of the
Corporation, no person shall serve as a director, officer, or employee
of an insured bank who has been convicted, or who is hereafter
convicted, of any criminal offense involving dishonesty or a breach of
trust. For each willful violation of this prohibition, the bank involved
shall be subject to a penalty of not more than $100 for each day this
prohibition is violated, which the Corporation may recover for its
use.''
Provisions Not Repealed, Modified or Affected
Nothing contained in sections 201 to 205 and 207 of Pub. L. 89-695
amending sections 1813 and 1817 to 1820 and repealing section 77 of this
title to be construed as repealing, modifying, or affecting this
section, see section 206 of Pub. L. 89-695, set out as a note under
section 1813 of this title.