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Federal Deposit Insurance Act

Section 30. Contracts Between Depository Institutions and Persons Providing Goods, Products, or Services

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(a)  In General.--An insured depository institution may not enter into a written or oral contract with any person to provide goods, products, or services to or for the benefit of such depository institution if the performance of such contract would adversely affect the safety or soundness of the institution.

[Codified to 12 U.S.C. 1831g(a)]

[Source:  Section 2[30(a)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 225 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 275), effective August 9, 1989] 

(b)  Rulemaking.--The Corporation shall prescribe such regulations and issue such orders, including definitions consistent with this section, as may be necessary to administer and carry out the purposes of, and prevent evasions of, this section.

[Codified to 12 U.S.C. 1831g(b)]

[Source:  Section 2[30(b)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 225 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 275), effective August 9, 1989] 

(c)  Enforcement.--Any action taken by any appropriate Federal banking agency under section 8 to enforce compliance on the part of any insured depository institution with the requirements of this section may include a requirement that such institution properly reflect the transaction on its books and records.

[Codified to 12 U.S.C. 1831g(c)]

[Source:  Section 2[30(c)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 225 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 275), effective August 9, 1989] 

(d)  No Private Right of Action.--This section may not be construed as creating any private right of action.

[Codified to 12 U.S.C. 1831g(d)]

[Source:  Section 2[30(d)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 225 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 275), effective August 9, 1989] 

(e)  Study.--

(1)  IN GENERAL.--The Attorney General and the Comptroller General of the United States shall jointly conduct a study on the extent to which--

(A)  insured depository institutions are entering into contracts with vendors under which the vendors agree to purchase stock or assets from insured depository institutions or to invest capital in or make deposits in such institutions; and

(B)  if such practices occur, the extent to which such practices are having an anticompetitive effect and should be prohibited.

(2)  REPORT TO CONGRESS.--Before the end of the 1-year period beginning on August 9, 1989, the Attorney General and the Comptroller General shall submit a report to the Congress on the results of the study conducted pursuant to paragraph (1).

[Codified to 12 U.S.C. 1831g(e)]

[Source:  Section 2[30(e)] of the Act of September 21, 1950 (Pub. L. No. 797), effective September 21, 1950, as added by section 225 of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 275), effective August 9, 1989; as amended by section 602(a)(59) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2291), effective September 23, 1994]


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Last Updated: August 31, 2021