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1000 - Federal Deposit Insurance Act


(m)  NEW DEPOSITORY INSTITUTIONS.--

(1)  ORGANIZATION AUTHORIZED.--As soon as possible after the default of an insured depository institution, the Corporation, if it finds that it is advisable and in the interest of the depositors of the insured depository institution in default or the public shall organize a new national bank or Federal savings associations in the same community as the insured depository institution in default to assume the insured deposits of such depository institution in default and otherwise to perform temporarily the functions hereinafter provided for.

(2)  ARTICLES OF ASSOCIATION.--The articles of association and the organization certificate of the new depository institution shall be executed by representatives designated by the Corporation.

(3)  CAPITAL STOCK.--No capital stock need be paid in by the Corporation.

(4)  EXECUTIVE OFFICER.--The new depository institution shall not have a board of directors, but shall be managed by an executive officer appointed by the Board of Directors of the Corporation who shall be subject to its directions.

(5)  SUBJECT TO LAWS RELATING TO NATIONAL BANKS.--In all other respects the new depository institution shall be organized in accordance with the then existing provisions of law relating to the organization of national banking associations.

(6)  NEW DEPOSITS.--The new depository institution may, with the approval of the Corporation, accept new deposits which shall be subject to withdrawal on demand and which, except where the new depository institution is the only depository institution in the community, shall not exceed an amount equal to the standard maximum deposit insurance amount (as determined under section 11(a)(1)) from any depositor.

(7)  INSURED STATUS.--The new depository institution, without application to or approval by the Corporation, shall be an insured depository institution and shall maintain on deposit with the Federal Reserve bank of its district reserves in the amount required by law for member banks, but it shall not be required to subscribe for stock of the Federal Reserve bank.

(8)  INVESTMENTS.--Funds of the new depository institution shall be kept on hand in cash, invested in obligations of the United States or obligations guaranteed as to principal and interest by the United States, or deposited with the Corporation, any Federal Reserve bank, or, to the extent of the insurance coverage on any such deposit, an insured depository institution.

(9)  CONDUCT OF BUSINESS.--The new depository institution, unless otherwise authorized by the Comptroller of the Currency shall transact business only as authorized by this Act and as may be incidental to its organization.

(10)  EXEMPT STATUS.--Notwithstanding any other provision of Federal or State law, the new depository institution, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority.

(11)  TRANSFER OF DEPOSITS.--(A) Upon the organization of a new depository institution, the Corporation shall promptly make available to it an amount equal to the estimated insured deposits of such insured depository institution in default plus the estimated amount of the expenses of operating the new depository institution, and shall determine as soon as possible the amount due each depositor for the depositor's insured deposit in the depository institution in default, and the total expenses of operation of the new depository institution.

(B)  Upon such determination, the amounts so estimated and made available shall be adjusted to conform to the amounts so determined.

(12)  EARNINGS.--Earnings of the new depository institution shall be paid over or credited to the Corporation in such adjustment.

(13)  LOSSES.--If any new depository institution, during the period it continues its status as such, sustains any losses with respect to which it is not effectively protected except by reason of being an insured depository institution, the Corporation shall furnish to it additional funds in the amount of such losses.

(14)  PAYMENT OF INSURED DEPOSITS.--(A) The new depository institution shall assume as transferred deposits the payment of the insured deposits of such depository institution in default to each of its depositors.

(B)  Of the amounts so made available, the Corporation shall transfer to the new depository institution, in cash, such sums as may be necessary to enable it to meet its expenses of operation and immediate cash demands on such transferred deposits, and the remainder of such amounts shall be subject to withdrawal by the new depository institution on demand.

(15)  ISSUANCE OF STOCK.--(A) Whenever in the judgment of the Board of Directors it is desirable to do so, the Corporation shall cause capital stock of the new depository institution to be offered for sale on such terms and conditions as the Board of Directors shall deem advisable in an amount sufficient, in the opinion of the Board of Directors, to make possible the conduct of the business of the new depository institution on a sound basis.

(B)  The stockholders of the insured depository institution in default shall be given the first opportunity to purchase any shares of common stock so offered.

(16)  ISSUANCE OF CERTIFICATE.--Upon proof that an adequate amount of capital stock in the new depository institution has been subscribed and paid for in cash, the Comptroller of the Currency shall require the articles of association and the organization certificate to be amended to conform to the requirements for the organization of a national bank or Federal savings association, and thereafter, when the requirements of law with respect to the organization of a national bank or Federal savings association have been complied with, the Comptroller of the Currency shall issue to the depository institution a certificate of authority to commence business, and thereupon the depository institution shall cease to have the status of a new depository institution, shall be managed by directors elected by its own shareholders, may exercise all the powers granted by law, and shall be subject to all provisions of law relating to national banks or Federal savings associations. Such depository institution shall thereafter be an insured national bank or Federal savings association, without certification to or approval by the Corporation.

(17)  TRANSFER TO OTHER INSTITUTION.--If the capital stock of the new depository institution is not offered for sale, or if an adequate amount of capital for such new depository institution is not subscribed and paid for, the Board of Directors may offer to transfer its business to any insured depository institution in the same community which will take over its assets, assume its liabilities, and pay to the Corporation for such business such amount as the Board of Directors may deem adequate; or the Board of Directors in its discretion may change the location of the new depository institution to the office of the Corporation or to some other place or may at any time wind up its affairs as herein provided.

(18)  WINDING UP.--Unless the capital stock of the new depository institution is sold or its assets are taken over and its liabilities are assumed by an insured depository institution as above provided within 2 years after the date of its organization, the Corporation shall wind up the affairs of such depository institution, after giving such notice, if any, as the Comptroller of the Currency may require, and shall certify to the Comptroller of the Currency the termination of the new depository institution. Thereafter the Corporation shall be liable for the obligations of such depository institution and shall be the owner of its assets.

(19)  APPLICABILITY OF CERTAIN LAWS.--The provisions of sections 5220 and 5221 of the Revised Statutes shall not apply to a new depository institution under this subsection.

[Codified to 12 U.S.C. 1821(m)]

[Source:  Section 2[11(m)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 213 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 243), effective August 9, 1989; section 2(c)(1) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3602), effective date shall take effect on the date on which the final regulations required under section 2109(a)(2), of the Federal Deposit Insurance Reform Act of 2005 take effect; section 1604(3) of title VII of the Act of July 30, 2008 (Pub. L. No. 110--289; 122 Stat. 2827), effective July 30, 2008; section 363(5)(C) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1552 and 1553), effective July 21, 2010]

(n)  BRIDGE DEPOSITORY INSTITUTIONS.--

(1)  ORGANIZATION.--

(A)  PURPOSE.--When 1 or more insured depository institutions are in default, or when the Corporation anticipates that 1 or more insured depository institutions may become in default, the Corporation may, in its discretion, organize, and the Office of the Comptroller of the Currency with respect to 1 or more insured banks, or to 1 or more insured savings associations, shall charter, 1 or more national banks or Federal savings associations as appropriate, with respect thereto with the powers and attributes of national banking associations or Federal savings associations as applicable, subject to the provisions of this subsection, to be referred to as bridge banks.

(B)  AUTHORITIES.--Upon the granting of a charter to a bridge depository institution, the bridge depository institution may--

(i)  assume such deposits of such insured depository institution or institutions that is or are in default or in danger of default as the Corporation may, in its discretion, determine to be appropriate;

(ii)  assume such other liabilities (including liabilities associated with any trust business) of such insured depository institution or institutions that is or are in default or in danger of default as the Corporation may, in its discretion, determine to be appropriate;

(iii)  purchase such assets (including assets associated with any trust business) of such insured depository institution or institutions that is or are in default or in danger of default as the Corporation may, in its discretion, determine to be appropriate; and

(iv)  perform any other temporary function which the Corporation may, in its discretion, prescribe in accordance with this Act.

(C)  ARTICLES OF ASSOCIATION.--The articles of association and organization certificate of a bridge depository institution as approved by the Corporation shall be executed by 3 representatives designated by the Corporation.

(D)  INTERIM DIRECTORS.--A bridge depository institution shall have an interim board of directors consisting of not fewer than 5 nor more than 10 members appointed by the Corporation.

(E)  NATIONAL BANK OR FEDERAL SAVINGS ASSOCIATION.--A bridge depository institution shall be organized as a national bank, in the case of 1 or more insured banks, and as a Federal savings association, in the case of 1 or more insured savings associations.

(2)  CHARTERING.--

(A)  CONDITIONS.--A national bank or Federal savings association may be chartered by the Comptroller of the Currency as a bridge depository institution only if the Board of Directors determines that--

(i)  the amount which is reasonably necessary to operate such bridge depository institution will not exceed the amount which is reasonably necessary to save the cost of liquidating, including paying the insured accounts of, 1 or more insured depository institutions in default or in danger of default with respect to which the bridge depository institution is chartered;

(ii)  the continued operation of such insured depository institution or institutions in default or in danger of default with respect to which the bridge depository institution is chartered is essential to provide adequate banking services in the community where each such depository institution in default or in danger of default is located; or

(iii)  the continued operation of such insured depository institution or institutions in default or in danger of default with respect to which the bridge depository institution is chartered is in the best interest of the depositors of such depository institution or institutions in default or in danger of default or the public.

(B)  INSURED NATIONAL BANK OR FEDERAL SAVINGS ASSOCIATION.--A bridge depository institution shall be an insured depository institution from the time it is chartered as a national bank or Federal savings association.

(C)  BRIDGE BANK TREATED AS BEING IN DEFAULT FOR CERTAIN PURPOSES.--A bridge depository institution shall be treated as an insured depository institution in default at such times and for such purposes as the Corporation may, in its discretion, determine.

(D)  MANAGEMENT.--A bridge depository institution, upon the granting of its charter, shall be under the management of a board of directors consisting of not fewer than 5 nor more than 10 members appointed by the Corporation.

(E)  BYLAWS.--The board of directors of a bridge depository institution shall adopt such bylaws as may be approved by the Corporation.

(3)  TRANSFER OF ASSETS AND LIABILITIES.--

(A)  IN GENERAL.--

(i)  TRANSFER UPON GRANT OF CHARTER.--Upon the granting of a charter to a bridge depository institution pursuant to this subsection, the Corporation, as receiver, or any other receiver appointed with respect to any insured depository institution in default with respect to which the bridge depository institution is chartered may transfer any assets and liabilities of such depository institution in default to the bridge depository institution in accordance with paragraph (1).

(ii)  SUBSEQUENT TRANSFERS.--At any time after a charter is granted to a bridge depository institution, the Corporation, as receiver, or any other receiver appointed with respect to an insured depository institution in default may transfer any assets and liabilities of such insured depository institution in default as the Corporation may, in its discretion, determine to be appropriate in accordance with paragraph (1).

(iii)  TREATMENT OF TRUST BUSINESS.--For purposes of this paragraph, the trust business, including fiduciary appointments, of any insured depository institution in default is included among its assets and liabilities.

(iv)  EFFECTIVE WITHOUT APPROVAL.--The transfer of any assets or liabilities, including those associated with any trust business, of an insured depository institution in default transferred to a bridge depository institution shall be effective without any further approval under Federal or State law, assignment, or consent with respect thereto.

(B)  INTENT OF CONGRESS REGARDING CONTINUING OPERATIONS.--It is the intent of the Congress that, in order to prevent unnecessary hardship or losses to the customers of any insured depository institution in default with respect to which a bridge depository institution is chartered, especially creditworthy farmers, small businesses, and households, the Corporation should--

(i)  continue to honor commitments made by the depository institution in default to creditworthy customers, and

(ii)  not interrupt or terminate adequately secured loans which are transferred under subparagraph (A) and are being repaid by the debtor in accordance with the terms of the loan instrument.

(4)  POWERS OF BRIDGE DEPOSITORY INSTITUTIONS.--Each bridge depository institution chartered under this subsection shall have all corporate powers of, and be subject to the same provisions of law as, a national bank or Federal savings association, as appropriate, except that--

(A)  the Corporation may--

(i)  remove the interim directors and directors of a bridge depository institution;

(ii)  fix the compensation of members of the interim board of directors and the board of directors and senior management, as determined by the Corporation in its discretion, of a bridge depository institution; and

(iii)  waive any requirement established under section 5145, 5146, 5147, 5148, or 5149 of the Revised Statutes (relating to directors of national banks or Federal savings associations, as appropriate) or section 31 of the Banking Act of 1933 which would otherwise be applicable with respect to directors of a bridge depository institution by operation of paragraph (2)(B);

(B)  the Corporation may indemnify the representatives for purposes of paragraph (1)(B) and the interim directors, directors, officers, employees, and agents of a bridge depository institution on such terms as the Corporation determines to be appropriate;

(C)  no requirement under any provision of law relating to the capital of a national bank shall apply with respect to a bridge depository institution;

(D)  the Comptroller of the Currency may establish a limitation on the extent to which any person may become indebted to a bridge depository institution without regard to the amount of the bridge depository institution's capital or surplus;

(E)(i)  the board of directors of a bridge depository institution shall elect a chairperson who may also serve in the position of chief executive officer, except that such person shall not serve either as chairperson or as chief executive officer without the prior approval of the Corporation; and

(ii)  the board of directors of a bridge depository institution may appoint a chief executive officer who is not also the chairperson, except that such person shall not serve as chief executive officer without the prior approval of the Corporation;

(F)  a bridge depository institution shall not be required to purchase stock of any Federal Reserve bank;

(G)  the Comptroller of the Currency shall waive any requirement for a fidelity bond with respect to a bridge depository institution at the request of the Corporation;

(H)  any judicial action to which a bridge depository institution becomes a party by virtue of its acquisition of any assets or assumption of any liabilities of a depository institution in default shall be stayed from further proceedings for a period of up to 45 days at the request of the bridge depository institution;

(I)  no agreement which tends to diminish or defeat the right, title or interest of a bridge depository institution in any asset of an insured depository institution in default acquired by it shall be valid against the bridge depository institution unless such agreement--

(i)  is in writing,

(ii)  was executed by such insured depository institution in default and the person or persons claiming an adverse interest thereunder, including the obligor, contemporaneously with the acquisition of the asset by such insured depository institution in default,

(iii)  was approved by the board of directors of such insured depository institution in default or its loan committee, which approval shall be reflected in the minutes of said board or committee, and

(iv)  has been, continuously from the time of its execution, an official record of such insured depository institution in default;

(J)  notwithstanding section 13(e)(2), any agreement relating to an extension of credit between a Federal home loan bank or Federal Reserve bank and any insured depository institution which was executed before the extension of credit by such bank to such depository institution shall be treated as having been executed contemporaneously with such extension of credit for purposes of subparagraph (I); and

(K)  except with the prior approval of the Corporation, a bridge depository institution may not, in any transaction or series of transactions, issue capital stock or be a party to any merger, consolidation, disposition of assets or liabilities, sale or exchange of capital stock, or similar transaction, or change its charter.

(5)  CAPITAL.--

(A)  NO CAPITAL REQUIRED.--The Corporation shall not be required to--

(i)  issue any capital stock on behalf of a bridge depository institution chartered under this subsection; or

(ii)  purchase any capital stock of a bridge depository institution, except that notwithstanding any other provision of Federal or State law, the Corporation may purchase and retain capital stock of a bridge depository institution in such amounts and on such terms as the Corporation, in its discretion, determines to be appropriate.

(B)  OPERATING FUNDS IN LIEU OF CAPITAL.--Upon the organization of a bridge depository institution, and thereafter, as the Board of Directors may, in its discretion, determine to be necessary or advisable, the Corporation may make available to the bridge depository institution, upon such terms and conditions and in such form and amounts as the Corporation may in its discretion determine, funds for the operation of the bridge depository institution in lieu of capital.

(C)  AUTHORITY TO ISSUE CAPITAL STOCK.--Whenever the Board of Directors determines it is advisable to do so, the Corporation shall cause capital stock of a bridge depository institution to be issued and offered for sale in such amounts and on such terms and conditions as the Corporation may, in its discretion, determine.

(D)  CAPITAL LEVELS.--A bridge depository institution shall not be considered an undercapitalized depository institution or a critically undercapitalized depository institution for purposes of section 10B(b) of the Federal Reserve Act.

(6)  NO FEDERAL STATUS.--

(A)  AGENCY STATUS.--A bridge depository institution is not an agency, establishment, or instrumentality of the United States.

(B)  EMPLOYEE STATUS.--Representatives for purposes of paragraph (1)(B), interim directors, directors, officers, employees, or agents of a bridge depository institution are not, solely by virtue of service in any such capacity, officers or employees of the United States. Any employee of the Corporation or of any Federal instrumentality who serves at the request of the Corporation as a representative for purposes of paragraph (1)(B), interim director, director, officer, employee, or agent of a bridge depository institution shall not--

(i)  solely by virtue of service in any such capacity lose any existing status as an officer or employee of the United States for purposes of title 5, United States Code, or any other provision of law, or

(ii)  receive any salary or benefits for service in any such capacity with respect to a bridge depository institution in addition to such salary or benefits as are obtained through employment with the Corporation or such Federal instrumentality.

(7)  ASSISTANCE AUTHORIZED.--The Corporation may, in its discretion, provide assistance under section 13(c) to facilitate any transaction described in clause (i), (ii), or (iii) of paragraph (10)(A) with respect to any bridge depository institution in the same manner and to the same extent as such assistance may be provided under such section with respect to an insured depository institution in default, or to facilitate a bridge depository institution's acquisition of any assets or the assumption of any liabilities of an insured depository institution in default.

(8)  ACQUISITION.--

(A)  IN GENERAL.--The responsible agency shall notify the Attorney General of any transaction involving the merger or sale of a bridge depository institution requiring approval under section 18(c) and if a report on competitive factors is requested within 10 days, such transaction may not be consummated before the 5th calendar day after the date of approval by the responsible agency with respect thereto. If the responsible agency has found that it must act immediately to prevent the probable failure of 1 of the depository institutions involved, the preceding sentence does not apply and the transaction may be consummated immediately upon approval by the agency.

(B)  BY OUT-OF-STATE HOLDING COMPANY.--Any depository institution, including an out-of-State depository institution, or any out-of-State depository institution holding company may acquire and retain the capital stock or assets of, or otherwise acquire and retain a bridge depository institution if the bridge depository institution at any time had assets aggregating $500,000,000 or more, as determined by the Corporation on the basis of the bridge depository institution's reports of condition or on the basis of the last available reports of condition of any insured depository institution in default, which institution has been acquired, or whose assets have been acquired, by the bridge depository institution. The acquiring entity may acquire the bridge depository institution only in the same manner and to the same extent as such entity may acquire an insured depository institution in default under section 13(f)(2).

(9)  DURATION OF BRIDGE DEPOSITORY INSTITUTIONS.--Subject to paragraphs (11) and (12), the status of a bridge depository institution as such shall terminate at the end of the 2-year period following the date it was granted a charter. The Board of Directors may, in its discretion, extend the status of the bridge depository institution as such for 3 additional 1-year periods.

(10)  TERMINATION OF BRIDGE DEPOSITORY INSTITUTIONS STATUS.--The status of any bridge depository institution as such shall terminate upon the earliest of--

(A)  the merger or consolidation of the bridge depository institution with a depository institution that is not a bridge depository institution;

(B)  at the election of the Corporation, the sale of a majority of the capital stock of the bridge depository institution to an entity other than the Corporation and other than another bridge depository institution;

(C)  the sale of 80 percent, or more, of the capital stock of the bridge depository institution to an entity other than the Corporation and other than another bridge depository institution;

(D)  at the election of the Corporation, either the assumption of all or substantially all of the deposits and other liabilities of the bridge depository institution by a depository institution holding company or a depository institution that is not a bridge depository institution, or the acquisition of all or substantially all of the assets of the bridge depository institution by a depository institution holding company, a depository institution that is not a bridge depository institution, or other entity as permitted under applicable law; and

(E)  the expiration of the period provided in paragraph (9), or the earlier dissolution of the bridge depository institution as provided in paragraph (12).

(11)  EFFECT OF TERMINATION EVENTS.--

(A)  MERGER OR CONSOLIDATION.--A bridge depository institution that participates in a merger or consolidation as provided in paragraph (10)(A) shall be for all purposes a national bank or a Federal savings association, as the case may be, with all the rights, powers, and privileges thereof, and such merger or consolidation shall be conducted in accordance with, and shall have the effect provided in, the provisions of applicable law.

(B)  CHARTER CONVERSION.--Following the sale of a majority of the capital stock of the bridge depository institution as provided in paragraph (10)(B), the Corporation may amend the charter of the bridge depository institution to reflect the termination of the status of the bridge depository institution as such, whereupon the depository institution shall remain a national bank or a Federal savings association, as the case may be, with all of the rights, powers, and privileges thereof, subject to all laws and regulations applicable thereto.

(C)  SALE OF STOCK.--Following the sale of 80 percent or more of the capital stock of a bridge depository institution as provided in paragraph (10)(C), the depository institution shall remain a national bank or a Federal savings association, as the case may be, with all of the rights, powers, and privileges thereof, subject to all laws and regulations applicable thereto.

(D)  ASSUMPTION OF LIABILITIES AND SALE OF ASSETS.-- Following the assumption of all or substantially all of the liabilities of the bridge depository institution, or the sale of all or substantially all of the assets of the bridge depository institution, as provided in paragraph (10)(D), at the election of the Corporation the bridge depository institution may retain its status as such for the period provided in paragraph (9).

(E)  EFFECT ON HOLDING COMPANIES.--A depository institution holding company acquiring a bridge depository institution under section 13(f), paragraph (8)(B) (or any predecessor provision), or both provisions, shall not be impaired or adversely affected by the termination of the status of a bridge depository institution as a result of subparagraph (A), (B), (C), or (D) of paragraph (10), and shall be entitled to the rights and privileges provided in section 13(f).

(F)  AMENDMENTS TO CHARTER.--Following the consummation of a transaction described in subparagraph (A), (B), (C), or (D) of paragraph (10), the charter of the resulting institution shall be amended to reflect the termination of bridge depository institution status, if appropriate.

(12)  DISSOLUTION OF BRIDGE DEPOSITORY INSTITUTION.--

(A)  IN GENERAL.--Notwithstanding any other provision of State or Federal law, if the bridge depository institution's status as such has not previously been terminated by the occurrence of an event specified in subparagraph (A), (B), (C), or (D) of paragraph (10)--

(i)  the Board of Directors may, in its discretion, dissolve a bridge depository institution in accordance with this paragraph at any time; and

(ii)  the Board of Directors shall promptly commence dissolution proceedings in accordance with this paragraph upon the expiration of the 2-year period following the date the bridge depository institution was chartered, or any extension thereof, as provided in paragraph (9).

(B)  PROCEDURES.--The Comptroller of the Currency shall appoint the Corporation receiver for a bridge depository institution upon certification by the Board of Directors to the Comptroller of the Currency of its determination to dissolve the bridge depository institution. The Corporation as such receiver shall wind up the affairs of the bridge depository institution in conformity with the provisions of law relating to the liquidation of closed national banks or Federal savings associations, as appropriate. With respect to any such bridge depository institution, the Corporation as such receiver shall have all the rights, powers, and privileges and shall perform the duties related to the exercise of such rights, powers, or privileges granted by law to a receiver of any insured depository institution and notwithstanding any other provision of law in the exercise of such rights, powers, and privileges the Corporation shall not be subject to the direction or supervision of any State agency or other Federal agency.

(13)  MULTIPLE BRIDGE DEPOSITORY INSTITUTIONS.--Subject to paragraph (1)(B)(i), the Corporation may, in the Corporation's discretion, organize 2 or more bridge depository institutions under this subsection to assume any deposits of, assume any other liabilities of, and purchase any assets of a single depository institution in default.

[Codified to 12 U.S.C. 1821(n)]

[Source:  Section 2[11(n)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 214 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 246), effective August 9, 1989; as amended by section 161(a) of title I of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2285), effective December 19, 1991; section 602(a)(30) and (31) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2289), effective September 23, 1994; section 1604(a)(5) and (d) of title VII of the Act of July 30, 2008 (Pub. L. No. 110--289; 122 Stat. 2827, 2828, and 2829 respectively), effective July 30, 2008; section 363(5)(D) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1553), effective July 21, 2010]

(o)  SUPERVISORY RECORDS.--In addition to the requirements of section 7(a)(2) to provide to the Corporation copies of reports of examination and reports of condition, whenever the Corporation has been appointed as receiver for an insured depository institution, the appropriate Federal banking agency shall make available all supervisory records to the receiver which may be used by the receiver in any manner the receiver determines to be appropriate.

[Codified to 12 U.S.C. 1821(o)]

[Source:  Section 2[11(o)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 909 of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 477), effective August 9, 1989]

(p)   CERTAIN SALES OF ASSETS PROHIBITED.--

(1)  PERSONS WHO ENGAGED IN IMPROPER CONDUCT WITH, OR CAUSED LOSSES TO, DEPOSITORY INSTITUTIONS.--The Corporation shall prescribe regulations which, at a minimum, shall prohibit the sale of assets of a failed institution by the Corporation to--

(A)  any person who--

(i)  has defaulted, or was a member of a partnership or an officer or director of a corporation that has defaulted, on 1 or more obligations the aggregate amount of which exceed $1,000,000, to such failed institution;

(ii)  has been found to have engaged in fraudulent activity in connection with any obligation referred to in clause (i); and

(iii)  proposes to purchase any such asset in whole or in part through the use of the proceeds of a loan or advance of credit from the Corporation or from any institution for which the Corporation has been appointed as conservator or receiver;

(B)  any person who participated, as an officer or director of such failed institution or of any affiliate of such institution, in a material way in transactions that resulted in a substantial loss to such failed institution;

(C)  any person who has been removed from, or prohibited from participating in the affairs of, such failed institution pursuant to any final enforcement action by an appropriate Federal banking agency; or

(D)  any person who has demonstrated a pattern or practice of defalcation regarding obligations to such failed institution.

(2)  CONVICTED DEBTORS.--Except as provided in paragraph (3), any person who--

(A)  has been convicted of an offense under section 215, 656, 657, 1005, 1006, 1007, 1008, 1014, 1032, 1341, 1343, or 1344 of title 18, United States Code, or of conspiring to commit such an offense, affecting any insured depository institution for which any conservator or receiver has been appointed; and

(B)  is in default on any loan or other extension of credit from such insured depository institution which, if not paid, will cause substantial loss to the institution, the deposit insurance fund, or the Corporation may not purchase any asset of such institution from the conservator or receiver.

(3)  SETTLEMENT OF CLAIMS.--Paragraphs (1) and (2) shall not apply to the sale or transfer by the Corporation of any asset of any insured depository institution to any person if the sale or transfer of the asset resolves or settles, or is part of the resolution or settlement, of--

(A)  1 or more claims that have been, or could have been, asserted by the Corporation against the person; or

(B)  obligations owed by the person to any insured depository institution, or the Corporation.

(4)  ``DEFAULT'' DEFINED.--For purposes of this subsection, the term "default" means a failure to comply with the terms of a loan or other obligation to such an extent that the property securing the obligation is foreclosed upon.

[Codified to 12 U.S.C. 1821(p)]

[Source:  Section 2[11(p)] of the Act of September 1, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 2526(a) of title XXV of the Act of November 29, 1990 (Pub. L. No. 101--647; 104 Stat. 4875), effective November 29, 1990; amended by sections 20(a) and (b) of the Act of December 17, 1993 (Pub. L. No. 103--204; 107 Stat. 2404 and 2405), effective December 17, 1993; section 8(a)(14) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3612 and 3613), effective date shall take effect the day of the merger of the bank Insurance Fund and the Savings Association Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of 2005; section 363(5)(E) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1553), effective July 21, 2010 ]


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