(<-Previous: United States Code Title 8, Sec. 1187 on)
Extract of the United States Code, Title 12.
12 USC Sec. 248 Has Changes 01/02/01
TITLE 12 - BANKS AND BANKING
CHAPTER 3 - FEDERAL RESERVE SYSTEM
SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Sec. 248. Enumerated powers
The Board of Governors of the Federal Reserve System shall be authorized and
empowered:
(a) Examination of accounts and affairs of banks; publication of weekly statements; reports of liabilities and assets of depository institutions; covered institutions
(1) To examine at its discretion the accounts, books, and affairs of each Federal reserve bank and of each member bank and to require such statements and reports as it may deem necessary. The said board shall publish once each week a statement showing the condition of each Federal reserve bank and a consolidated statement for all Federal reserve banks. Such statements shall show in detail the assets and liabilities of the Federal reserve banks, single and combined, and shall furnish full information regarding the character of the money held as reserve and the amount, nature, and maturities of the paper and other investments owned or held by Federal reserve banks.
(2) To require any depository institution specified in this paragraph to make, at such intervals as the Board may prescribe, such reports of its liabilities and assets as the Board may determine to be necessary or desirable to enable the Board to discharge its responsibility to monitor and control monetary and credit aggregates. Such reports shall be made(A) directly to the Board in the case of member banks and in the case of other depository institutions whose reserve requirements under sections 461, 463, 464, 465, and 466 of this title exceed zero, and
(B) for all other reports to the Board through the(i) Federal Deposit Insurance Corporation in the case of insured State nonmember banks, savings banks, and mutual savings banks,
(ii) National Credit Union Administration Board in the case of insured credit unions,
(iii) the Director of the Office of Thrift Supervision in the case of any savings association which is an insured depository institution (as defined in section 1813 of this title) or which is a member as defined in section 1422 of this title, and
(iv) such State officer or agency as the Board may designate in the case of any other type of bank, savings and loan association, or credit union. The Board shall endeavor to avoid the imposition of unnecessary burdens on reporting institutions and the duplication of other reporting requirements. Except as otherwise required by law, any data provided to any department, agency, or instrumentality of the United States pursuant to other reporting requirement shall be made available to the Board. The Board may classify depository institutions for the purposes of this paragraph and may impose different requirements on each such class.
(b) Permitting or requiring rediscounting of paper at specified rate
To permit, or, on the affirmative vote of at least five members of the Board of
Governors, to require Federal reserve banks to rediscount the discounted paper
of other Federal reserve banks at rates of interest to be fixed by the Board.
(c) Suspending reserve requirements
To suspend for a period not exceeding thirty days, and from time to time to
renew such suspension for periods not exceeding fifteen days, any reserve
requirements specified in this chapter.
(d) Supervising and regulating issue and retirement of notes
To supervise and regulate through the Secretary of the Treasury the issue and
retirement of Federal Reserve notes, except for the cancellation and
destruction, and accounting with respect to such cancellation and destruction,
of notes unfit for circulation, and to prescribe rules and regulations under
which such notes may be delivered by the Secretary of the Treasury to the
Federal Reserve agents applying therefor.
(e) Adding to or reclassifying reserve cities
To add to the number of cities classified as reserve cities under existing law
in which national banking associations are subject to the reserve requirements
set forth in section 20 of this Act, or to reclassify existing reserve cities or
to terminate their designation as such.
(f) Suspending or removing officers or directors of reserve banks
To suspend or remove any officer or director of any Federal reserve bank, the
cause of such removal to be forthwith communicated in writing by the Board of
Governors of the Federal Reserve System to the removed officer or director and
to said bank.
(g) Requiring writing off of doubtful or worthless assets of banks
To require the writing off of doubtful or worthless assets upon the books and
balance sheets of Federal reserve banks.
(h) Suspending operations of or liquidating or reorganizing banks
To suspend, for the violation of any of the provisions of this chapter, the
operations of any Federal reserve bank, to take possession thereof, administer
the same during the period of suspension, and, when deemed advisable, to
liquidate or reorganize such bank.
(i) Requiring bonds of agents; safeguarding property in hands of agents
To require bonds of Federal reserve agents, to make regulations for the
safeguarding of all collateral, bonds, Federal reserve notes, money, or property
of any kind deposited in the hands of such agents, and said board shall perform
the duties, functions, or services specified in this chapter, and make all rules
and regulations necessary to enable said board effectively to perform the same.
(j) Exercising supervision over reserve banks
To exercise general supervision over said Federal reserve banks.
(k) Delegation of certain functions; power to delegate; review of delegated
activities
To delegate, by published order or rule and subject to subchapter II of chapter
5, and chapter 7, of title 5, any of its functions, other than those relating to
rulemaking or pertaining principally to monetary and credit policies, to one or
more administrative law judges, members or employees of the Board, or Federal
Reserve banks. The assignment of responsibility for the performance of any
function that the Board determines to delegate shall be a function of the
Chairman. The Board shall, upon the vote of one member, review action taken at a
delegated level within such time and in such manner as the Board shall by rule
prescribe.
(l) Employing attorneys, experts, assistants, and clerks; salaries and fees
To employ such attorneys, experts, assistants, clerks, or other employees as may
be deemed necessary to conduct the business of the board. All salaries and fees
shall be fixed in advance by said board and shall be paid in the same manner as
the salaries of the members of said board. All such attorneys, experts,
assistants, clerks, and other employees shall be appointed without regard to the
provisions of the Act of January sixteenth, eighteen hundred and eighty-three
(volume twenty-two, United States Statutes at Large, page four hundred and
three), and amendments thereto, or any rule or regulation made in pursuance
thereof: Provided, That nothing herein shall prevent the President from placing
said employees in the classified service.
(m) (Repealed)
(n) Board's authority to examine depository institutions and affiliates
To examine, at the Board's discretion, any depository institution, and any
affiliate of such depository institution, in connection with any advance to, any
discount of any instrument for, or any request for any such advance or discount
by, such depository institution under this chapter.
(o) Authority to appoint conservator or receiver
The Board may appoint the Federal Deposit Insurance Corporation as conservator
or receiver for a State member bank under section 1821(c)(9) of this title.
(p) Authority
The Board may act in its own name and through its own attorneys in enforcing any
provision of this title, (FOOTNOTE 1) regulations promulgated hereunder, or any
other law or regulation, or in any action, suit, or proceeding to which the
Board is a party and which involves the Board's regulation or supervision of any
bank, bank holding company (as defined in section 1841 of this title), or other
entity, or the administration of its operations.
(FOOTNOTE 1) See References in Text note below.
(<-- Previous Changes)
(q) UNIFORM PROTECTION
AUTHORITY FOR FEDERAL RESERVE FACILITIES-
(1) Notwithstanding any other provision of law, to authorize personnel to act as law enforcement officers to protect and safeguard the premises, grounds, property, personnel, including members of the Board, of the Board, or any Federal reserve bank, and operations conducted by or on behalf of the Board or a reserve bank.
(2) The Board may, subject to the regulations prescribed under paragraph (5), delegate authority to a Federal reserve bank to authorize personnel to act as law enforcement officers to protect and safeguard the bank's premises, grounds, property, personnel, and operations conducted by or on behalf of the bank.
(3) Law enforcement officers designated or authorized by the Board or a reserve bank under paragraph (1) or (2) are authorized while on duty to carry firearms and make arrests without warrants for any offense against the United States committed in their presence, or for any felony cognizable under the laws of the United States committed or being committed within the buildings and grounds of the Board or a reserve bank if they have reasonable grounds to believe that the person to be arrested has committed or is committing such a felony. Such officers shall have access to law enforcement information that may be necessary for the protection of the property or personnel of the Board or a reserve bank.
(4) For purposes of this subsection, the term `law enforcement officers' means personnel who have successfully completed law enforcement training and are authorized to carry firearms and make arrests pursuant to this subsection.
(5) The law enforcement authorities provided for in this subsection may be exercised only pursuant to regulations prescribed by the Board and approved by the Attorney General.
(Next Changes->)
misc administrative details omitted
AMENDMENTS
several amendment notes omitted
1982 - Subsec. (n). Pub. L. 97-258 struck out subsec. (n) which
provided that, whenever in the judgment of the Secretary of the
Treasury such action was necessary to protect the currency system
of the United States, the Secretary of the Treasury, in his
discretion, could require any or all individuals, partnerships,
associations, and corporations to pay and deliver to the Treasurer
of the United States any or all gold coin, gold bullion, and gold
certificates owned by such individuals, partnerships, associations,
and corporations and that, upon receipt of such gold coin, gold
bullion or gold certificates, the Secretary of the Treasury would
pay therefor an equivalent amount of any other form of coin or
currency coined or issued under the laws of the United States.
remaining amendments omitted
CHANGE OF NAME
Section 203(a) of act Aug. 23, 1935, changed name of Federal
Reserve Board to Board of Governors of the Federal Reserve System.
EXECUTIVE ORDER NO. 6359
Ex. Ord. No. 6359, Oct. 25, 1933, as amended by Ex. Ord. No. 11825, Dec. 31,
1974, 40 F.R. 1003, which provided for receipt on consignment of gold by the
United States mints and assay offices, was revoked by Ex. Ord. No. 12553, Feb.
25, 1986, 51 F.R. 7237.
EX. ORD. NO. 10547. INSPECTION OF STATISTICAL TRANSCRIPT CARDS
Ex. Ord. No. 10547, July 27, 1954, 19 F.R. 4661, required statistical transcript
cards submitted with, or prepared by the Internal Revenue Service from,
corporation income tax returns for the taxable years ending after June 30, 1951,
and before July 1, 1952, to be open to inspection by the Board of Governors of
the Federal Reserve System as an aid in executing the powers conferred upon such
Board by this section, such inspection to be in accordance and upon compliance
with the rules and regulations prescribed by the Secretary of the Treasury in
T.D. 6081, 19 F.R. 4666.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 212, 501, 3105 of this title;
title 5 section 5373.
12 USC Sec. 1813 01/02/01
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.
misc administrative details omitted
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, 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, 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, 78o-5, 78q, 80a-2, 80a-17, 80a-26, 80a-34,
80b-10a, 1607, 1679a, 1681s, 1691c, 1692l, 1693o, 6701, 6716, 6805, 6809, 6825;
title 18 sections 20, 656, 1004, 1005, 1906, 2113, 3059A;
title 20 section 1085;
title 22 section 5426;
title 26 sections 42, 414;
title 29 section 1134;
title 31 sections 5312, 5321, 5326;
title 42 sections 669a, 5318a, 9601.
12 USC Sec. 1828 (extract) Has
Changes
01/02/01
Sec. 1828. Regulations governing insured depository institutions
(a)
- (b) omitted
(c) Merger transactions; consent of banking agencies; emergency approval;
notice; uniform standards; antitrust actions; review de novo; limitations;
report to Congress; applicability
(1) Except with the prior written approval of the responsible agency, which shall in every case referred to in this paragraph be the Corporation, no insured depository institution shall -
(A) merge or consolidate with any noninsured bank or institution;
(B) assume liability to pay any deposits (including liabilities which would be ''deposits'' except for the proviso in section 1813(l)(5) of this title) made in, or similar liabilities of, any noninsured bank or institution; or
(C) transfer assets to any noninsured bank or institution in consideration of the assumption of liabilities for any portion of the deposits made in such insured depository institution.(2) No insured depository institution shall merge or consolidate with any other insured depository institution or, either directly or indirectly, acquire the assets of, or assume liability to pay any deposits made in, any other insured depository institution except with the prior written approval of the responsible agency, which shall be -
(A) the Comptroller of the Currency if the acquiring, assuming, or resulting bank is to be a national bank or a District bank;
(B) the Board of Governors of the Federal Reserve System if the acquiring, assuming, or resulting bank is to be a State member bank (except a District bank);
(C) the Corporation if the acquiring, assuming, or resulting bank is to be a State nonmember insured bank (except a District bank or a savings bank supervised by the Director of the Office of Thrift Supervision); and
(D) the Director of the Office of Thrift Supervision if the acquiring, assuming, or resulting institution is to be a savings association.(3) Notice of any proposed transaction for which approval is required under paragraph (1) or (2) (referred to hereafter in this subsection as a ''merger transaction'') shall, unless the responsible agency finds that it must act immediately in order to prevent the probable default of one of the banks or savings associations involved, be published -
(A) prior to the granting of approval of such transaction,
(B) in a form approved by the responsible agency,
(C) at appropriate intervals during a period at least as long as the period allowed for furnishing reports under paragraph (4) of this subsection, and
(D) in a newspaper of general circulation in the community or communities where the main offices of the banks or savings associations involved are located, or, if there is no such newspaper in any such community, then in the newspaper of general circulation published nearest thereto.(4) In the interests of uniform standards, before acting on any application for approval of a merger transaction, the responsible agency, unless it finds that it must act immediately in order to prevent the probable failure of one of the banks or savings associations involved, shall request reports on the competitive factors involved from the Attorney General and the other Federal banking agencies referred to in this subsection. The reports shall be furnished within thirty calendar days of the date on which they are requested, or within ten calendar days of such date if the requesting agency advises the Attorney General and the other Federal banking agencies that an emergency exists requiring expeditious action. Notwithstanding the preceding sentence, a banking agency shall not be required to file a report requested by the responsible agency under this paragraph if such banking agency advises the responsible agency by the applicable date under the preceding sentence that the report is not necessary because none of the effects described in paragraph (5) are likely to occur as a result of the transaction.
(5) The responsible agency shall not approve -(A) any proposed merger transaction which would result in a monopoly, or which would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States, or
(B) any other proposed merger transaction whose effect in any section of the country may be substantially to lessen competition, or to tend to create a monopoly, or which in any other manner would be in restraint of trade, unless it finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served.
In every case, the responsible agency shall take into consideration the financial and managerial resources and future prospects of the existing and proposed institutions, and the convenience and needs of the community to be served.(6) The responsible agency shall immediately notify the Attorney General of any approval by it pursuant to this subsection of a proposed merger transaction. If the agency has found that it must act immediately to prevent the probable failure of one of the banks or savings associations involved and reports on the competitive factors have been dispensed with, the transaction may be consummated immediately upon approval by the agency. If the agency has advised the Attorney General and the other Federal banking agencies of the existence of an emergency requiring expeditious actions and has requested reports on the competitive factors within ten days, the transaction may not be consummated before the fifth calendar day after the date of approval by the agency. In all other cases, the transaction may not be consummated before the thirtieth calendar day after the date of approval by the agency or, if the agency has not received any adverse comment from the Attorney General of the United States relating to competitive factors, such shorter period of time as may be prescribed by the agency with the concurrence of the Attorney General, but in no event less than 15 calendar days after the date of approval.
(7)(A) Any action brought under the antitrust laws arising out of a merger transaction shall be commenced prior to the earliest time under paragraph (6) at which a merger transaction approved under paragraph (5) might be consummated. The commencement of such an action shall stay the effectiveness of the agency's approval unless the court shall otherwise specifically order. In any such action, the court shall review de novo the issues presented.
(B) In any judicial proceeding attacking a merger transaction approved under paragraph (5) on the ground that the merger transaction alone and of itself constituted a violation of any antitrust laws other than section 2 of title 15, the standards applied by the court shall be identical with those that the banking agencies are directed to apply under paragraph (5).
(C) Upon the consummation of a merger transaction in compliance with this subsection and after the termination of any antitrust litigation commenced within the period prescribed in this paragraph, or upon the termination of such period if no such litigation is commenced therein, the transaction may not thereafter be attacked in any judicial proceeding on the ground that it alone and of itself constituted a violation of any antitrust laws other than section 2 of title 15, but nothing in this subsection shall exempt any bank or savings association resulting from a merger transaction from complying with the antitrust laws after the consummation of such transaction.
(D) In any action brought under the antitrust laws arising out of a merger transaction approved by a Federal supervisory agency pursuant to this subsection, such agency, and any State banking supervisory agency having jurisdiction within the State involved, may appear as a part of its own motion and as of right, and be represented by its counsel.(8) For the purposes of this subsection, the term ''antitrust laws'' means the Act of July 2, 1890 (the Sherman Antitrust Act), the Act of October 15, 1914 (the Clayton Act), and any other Acts in pari materia.
(9) Each of the responsible agencies shall include in its annual report to the Congress a description of each merger transaction approved by it during the period covered by the report, along with-(A) the name and total resources of each bank or savings association involved;
(B) whether a report was submitted by the Attorney General under paragraph (4), and, if so, a summary by the Attorney General of the substance of such report; and
(C) a statement by the responsible agency of the basis for its approval.(10) Until June 30, 1976, the responsible agency shall not grant any approval required by law which has the practical effect of permitting a conversion from the mutual to the stock form of organization, including approval of any application pending on the date of enactment of this subsection, except that this sentence shall not be deemed to limit now or hereafter the authority of the responsible agency to grant approvals in cases where the responsible agency finds that it must act in order to maintain the safety, soundness, and stability of an insured depository institution. The responsible agency may by rule, regulation, or otherwise and under such civil penalties (which shall be cumulative to any other remedies) as it may prescribe take whatever action it deems necessary or appropriate to implement or enforce this subsection.
(<-- Previous Changes)
(11) MONEY LAUNDERING- In every case, the responsible agency, shall take into consideration the effectiveness of any insured depository institution involved in the proposed merger transaction in combatting money laundering activities, including in overseas branches.
(11)(12) The provisions of this subsection do not apply to any merger transaction involving a foreign bank if no party to the transaction is principally engaged in business in the United States.
(d)- (v) omitted
(w) WRITTEN EMPLOYMENT REFERENCES MAY CONTAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL ACTIVITY-
(1) AUTHORITY TO DISCLOSE INFORMATION- Notwithstanding any other provision of law, any insured depository institution, and any director, officer, employee, or agent of such institution, may disclose in any written employment reference relating to a current or former institution-affiliated party of such institution which is provided to another insured depository institution in response to a request from such other institution, information concerning the possible involvement of such institution-affiliated party in potentially unlawful activity.
(2) INFORMATION NOT REQUIRED- Nothing in paragraph (1) shall be construed, by itself, to create any affirmative duty to include any information described in paragraph (1) in any employment reference referred to in paragraph (1).
(3) MALICIOUS INTENT- Notwithstanding any other provision of this subsection, voluntary disclosure made by an insured depository institution, and any director, officer, employee, or agent of such institution under this subsection concerning potentially unlawful activity that is made with malicious intent, shall not be shielded from liability from the person identified in the disclosure.
(4) DEFINITION- For purposes of this subsection, the term `insured depository institution' includes any uninsured branch or agency of a foreign bank.
(Next Changes->)
misc administrative details omitted
AMENDMENTS
other amendment info omitted
Amendments relating to (c):
1989 - Subsec. (c)(12). Pub. L. 101-73, Sec. 221(2)(B), struck out par. (12)
which read as follows: ''The provisions of this subsection shall not apply to
any transaction where the acquiring, assuming, or resulting institution is an
insured Federal savings bank or an institution insured by the Federal Savings
and Loan Insurance Corporation, except that any insured bank involved in the
transaction shall notify the Corporation in writing at least 30 days prior to
consummation of the transaction and, if any approval by the Federal Home Loan
Bank Board or the Federal Savings and Loan Insurance Corporation is required in
connection therewith, such approving authority shall provide the Corporation
with notification of the application for approval, shall consult with the
Corporation before disposing of the application, and shall provide notification
to the Corporation of the determination with respect to said application.''
1987 - Subsec. (c)(12). Pub. L. 100-86, Sec. 504(b)(1), amended par. (12)
generally. Prior to amendment, par. (12) read as follows: ''The provisions of
this subsection shall not apply to any merger transaction involving an insured
Federal savings bank unless the resulting institution will be an insured bank
other than an insured Federal savings bank.''
1966 - Subsec. (c). Pub. L. 89-356, Sec. 1(a), laid down more definite
guidelines for dealing with the antitrust aspects of bank mergers by prohibiting
monopoly bank mergers in all cases, forbidding anticompetitive mergers except in
cases where a clear showing is made that a given merger is so beneficial that
its allowance is in the public interest, and requiring the uniform application
of the law by both judicial and administrative bodies, inserted provisions to
delay the effectiveness of agency approval of merger transactions except in
emergency situations, imposed a special statute of limitations for antitrust
actions arising out of agency-approved merger transactions thereby precluding
antitrust actions when the agency has acted immediately to prevent probable
failure of a bank, provided for the automatic staying of the effectiveness of
agency action by the commencement of an antitrust action unless the court orders
otherwise, called for de novo court review, permitted federal bank agencies
which approved a subsequently challenged merger to appear in the suit by its own
counsel, allowed state banking agencies to present their views, and inserted a
definition of ''antitrust laws'' which would include the Sherman Act, the
Clayton Act, and any other Acts in pari materia.
1960 - Subsec. (c). Pub. L. 86-463 prohibited merger or consolidation of any
insured bank with any other insured bank, or acquisition of assets of, or
assumption of liability to pay any deposits made in, any other insured bank
without prior written consent, required publication of notice of any proposed
merger, consolidation, acquisition of assets, or assumption of liabilities,
enumerated specific items required to be considered before consent may be
granted or withheld, directed the agency involved to request a report on
competitive factors involved from the Attorney General and the other two banking
agencies referred to in this subsection, and provided for inclusion in the
annual report of the Comptroller, the Board and the Corporation of each merger,
consolidation, acquisition of assets, or assumption of liabilities approved.
details of other amendments omitted
misc administrative details omitted
12 USC Sec. 1829b Has
Changes
01/02/01
Sec. 1829b. Retention of records by insured depository institutions
(<-- Previous Changes)
(a) Congressional findings and declaration of purpose
(1) The Congress finds that adequate records maintained by insured depository institutions have a high degree of usefulness in criminal, tax, and regulatory investigations and proceedings. The Congress further finds that microfilm or other reproductions and other records made by banks (FOOTNOTE 1) of checks, as well as records kept by banks (FOOTNOTE 1) of the identity of persons maintaining or authorized to act with respect to accounts therein, have been of particular value in this respect.
(FOOTNOTE 1) So in original. Probably should be ''financial institutions''.
(2) It is the purpose of this section to require the maintenance of appropriate types of records by insured depository institutions in the United States where such records have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings.
(a) CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE-
(1) FINDINGS- Congress finds that--
(A) adequate records maintained by insured depository institutions have a high degree of usefulness in criminal, tax, and regulatory investigations or proceedings, and that, given the threat posed to the security of the Nation on and after the terrorist attacks against the United States on September 11, 2001, such records may also have a high degree of usefulness in the conduct of intelligence or counterintelligence activities, including analysis, to protect against domestic and international terrorism; and
(B) microfilm or other reproductions and other records made by insured depository institutions of checks, as well as records kept by such institutions, of the identity of persons maintaining or authorized to act with respect to accounts therein, have been of particular value in proceedings described in subparagraph (A).
(2) PURPOSE- It is the purpose of this section to require the maintenance of appropriate types of records by insured depository institutions in the United States where such records have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, recognizes that, given the threat posed to the security of the Nation on and after the terrorist attacks against the United States on September 11, 2001, such records may also have a high degree of usefulness in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism.
(Next Changes->)
(b) Recordkeeping regulations
(1) In general
Where the Secretary of the Treasury (referred to in this section as the ''Secretary'') determines that the maintenance of appropriate types of records and other evidence by insured depository institutions has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, he shall prescribe regulations to carry out the purposes of this section.
(2) Domestic funds transfers
Whenever the Secretary and the Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ''Board'') determine that the maintenance of records, by insured depository institutions, of payment orders which direct transfers of funds over wholesale funds transfer systems has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, the Secretary and the Board shall jointly prescribe regulations to carry out the purposes of this section with respect to the maintenance of such records.
(3) International funds transfers(A) In general
The Secretary and the Board shall jointly prescribe, after consultation with State banking supervisors, final regulations requiring that insured depository institutions, businesses that provide check cashing services, money transmitting businesses, and businesses that issue or redeem money orders, travelers' checks or other similar instruments maintain such records of payment orders which -(i) involve international transactions; and
(ii) direct transfers of funds over wholesale funds transfer systems or on the books of any insured depository institution, or on the books of any business that provides check cashing services, any money transmitting business, and any business that issues or redeems money orders, travelers' checks or similar instruments, that will have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings.(B) Factors for consideration
In prescribing the regulations required under subparagraph (A), the Secretary and the Board shall consider -(i) the usefulness in criminal, tax, or regulatory investigations or proceedings of any record required to be maintained pursuant to the proposed regulations; and
(ii) the effect the recordkeeping required pursuant to such proposed regulations will have on the cost and efficiency of the payment system.(C) Availability of records
Any records required to be maintained pursuant to the regulations prescribed under subparagraph (A) shall be submitted or made available to the Secretary or the Board upon request.
(c) Identity of persons having accounts and persons
authorized to act with respect to such accounts; exemptions
Subject to the requirements of any regulations prescribed jointly by the
Secretary and the Board under paragraph (2) or (3) of subsection (b) of this
section, each insured depository institution shall maintain such records and
other evidence, in such form as the Secretary shall require, of the identity of
each person having an account in the United States with the insured depository
institution and of each individual authorized to sign checks, make withdrawals,
or otherwise act with respect to any such account. The Secretary may make such
exemptions from any requirement otherwise imposed under this subsection as are
consistent with the purposes of this section.
(d) Reproduction of checks, drafts, and other
instruments; record of transactions; identity of party
Each insured depository institution shall make, to the extent that the
regulations of the Secretary so require -
(1) a microfilm or other reproduction of each check, draft, or similar instrument drawn on it and presented to it for payment; and
(2) a record of each check, draft, or similar instrument received by it for deposit or collection, together with an identification of the party for whose account it is to be deposited or collected, unless the insured depository institution has already made a record of the party's identity pursuant to subsection (c) of this section.
(e) Identity of persons making reportable currency and
foreign transactions
Subject to the requirements of any regulations prescribed jointly by the
Secretary and the Board under paragraph (2) or (3) of subsection (b) of this
section, whenever any individual engages (whether as principal, agent, or bailee)
in any transaction with an insured depository institution which is required to
be reported or recorded under subchapter II of chapter 53 of title 31, the
insured depository institution shall require and retain such evidence of the
identity of that individual as the Secretary may prescribe as appropriate under
the circumstances.
(f) Additions to or substitutes for required records
Subject to the requirements of any regulations prescribed jointly by the
Secretary and the Board under paragraph (2) or (3) of subsection (b) of this
section and in addition to or in lieu of the records and evidence otherwise
referred to in this section, each insured depository institution shall maintain
such records and evidence as the Secretary may prescribe to carry out the
purposes of this section.
(g) Retention period
Any type of record or evidence required under this section shall be retained for
such period as the Secretary may prescribe for the type in question. Any period
so prescribed shall not exceed six years unless the Secretary determines, having
regard for the purposes of this section, that a longer period is necessary in
the case of a particular type of record or evidence.
(h) Report to Congress by Secretary of the Treasury
The Secretary shall include in his annual report to the Congress information on
his implementation of the authority conferred by this section and any similar
authority with respect to recordkeeping or reporting requirements conferred by
other provisions of law.
(i) Application of provisions to foreign banks
The provisions of this section shall not apply to any foreign bank except with
respect to the transactions and records of any insured branch of such a bank.
(j) Civil penalties
(1) Penalty imposed
Any insured depository institution and any director, officer, or employee of an insured depository institution who willfully or through gross negligence violates, or any person who willfully causes such a violation, any regulation prescribed under subsection (b) of this section shall be liable to the United States for a civil penalty of not more than $10,000.
(2) Treatment of continuing violation
A separate violation of any regulation prescribed under subsection (b) of this section occurs for each day the violation continues and at each office, branch, or place of business at which such violation occurs.
(3) Assessment
Any penalty imposed under paragraph (1) shall be assessed, mitigated, and collected in the manner provided in subsections (b) and (c) of section 5321 of title 31.
other administrative details omitted
ADDITIONAL CRIMINAL PENALTIES
Willful violation of regulations under this section punishable by fine of not
more than $10,000 or imprisonment of not more than five years, or both, when
such willful violation is committed in furtherance of the commission of any
violation of federal law punishable by imprisonment of more than one year, see
section 1957 of this title.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1953, 1957, 1958, 1959 of this title;
title 31 sections 5313, 5318.
12 USC Sec. 1842 Has Changes 01/02/01
TITLE 12 - BANKS AND BANKING
CHAPTER 17 - BANK HOLDING COMPANIES
Sec. 1842. Acquisition of bank shares or assets
(a) Prior approval of Board as necessary; exceptions;
disposition, time extension; subsequent approval or disposition upon disapproval
It shall be unlawful, except with the prior approval of the Board,
(1) for any action to be taken that causes any company to become a bank holding company;
(2) for any action to be taken that causes a bank to become a subsidiary of a bank holding company;
(3) for any bank holding company to acquire direct or indirect ownership or control of any voting shares of any bank if, after such acquisition, such company will directly or indirectly own or control more than 5 per centum of the voting shares of such bank;
(4) for any bank holding company or subsidiary thereof, other than a bank, to acquire all or substantially all of the assets of a bank; or
(5) for any bank holding company to merge or consolidate with any other bank holding company. Notwithstanding the foregoing this prohibition shall not apply to(A) shares acquired by a bank,
(i) in good faith in a fiduciary capacity, except where such shares are held under a trust that constitutes a company as defined in section 1841(b) of this title and except as provided in paragraphs (2) and (3) of section 1841(g) of this title, or
(ii) in the regular course of securing or collecting a debt previously contracted in good faith, but any shares acquired after May 9, 1956, in securing or collecting any such previously contracted debt shall be disposed of within a period of two years from the date on which they were acquired;(B) additional shares acquired by a bank
holding company in a bank in which such bank holding company owned
or controlled a majority of the voting shares prior to such
acquisition; or
(C) the acquisition, by a company, of control of a bank in a reorganization in which a person or group of persons exchanges their shares of the bank for shares of a newly formed bank holding company and receives after the reorganization substantially the same proportional share interest in the holding company as they held in the bank except for changes in shareholders' interests resulting from the exercise of dissenting shareholders' rights under State or Federal law if -(i) immediately following the acquisition -
(I) the bank holding company meets the capital and other financial standards prescribed by the Board by regulation for such a bank holding company; and
(II) the bank is adequately capitalized (as defined in section 1831o of this title);(ii) the holding company does not engage in any activities other than those of managing and controlling banks as a result of the reorganization;
(iii) the company provides 30 days prior notice to the Board and the Board does not object to such transaction during such 30-day period; and
(iv) the holding company will not acquire control of any additional bank as a result of the reorganization.. (FOOTNOTE 1)
(FOOTNOTE 1) So in original.
The Board is authorized upon application by a bank to extend, from time to time for not more than one year at a time, the two-year period referred to above for disposing of any shares acquired by a bank in the regular course of securing or collecting a debt previously contracted in good faith, if, in the Board's judgment, such an extension would not be detrimental to the public interest, but no such extension shall in the aggregate exceed three years. For the purpose of the preceding sentence, bank shares acquired after December 31, 1970, shall not be deemed to have been acquired in good faith in a fiduciary capacity if the acquiring bank or company has sole discretionary authority to exercise voting rights with respect thereto, but in such instances acquisitions may be made without prior approval of the Board if the Board, upon application filed within ninety days after the shares are acquired, approves retention or, if retention is disapproved, the acquiring bank disposes of the shares or its sole discretionary voting rights within two years after issuance of the order of disapproval.
(b) Application for approval; notice to Comptroller of Currency or State authority; views and recommendations; disapproval; hearing; order of Board; nonaction deemed grant of application; procedure in emergencies or probable failures requiring immediate Board action and orders
(1) Notice and hearing requirements
Upon receiving from a company any application for approval under this section, the Board shall give notice to the Comptroller of the Currency, if the applicant company or any bank the voting shares or assets of which are sought to be required (FOOTNOTE 2) is a national banking association or a District bank, or to the appropriate supervisory authority of the interested State, if the applicant company or any bank the voting shares or assets of which are sought to be acquired is a State bank, in order to provide for the submission of the views and recommendations of the Comptroller of the Currency or the State supervisory authority, as the case may be. The views and recommendations shall be submitted within thirty calendar days of the date on which notice is given, or within ten calendar days of such date if the Board advises the Comptroller of the Currency or the State supervisory authority that an emergency exists requiring expeditious action. If the thirty-day notice period applies and if the Comptroller of the Currency or the State supervisory authority so notified by the Board disapproves the application in writing within this period, the Board shall forthwith give written notice of that fact to the applicant. Within three days after giving such notice to the applicant, the Board shall notify in writing the applicant and the disapproving authority of the date for commencement of a hearing by it on such application. Any such hearing shall be commenced not less than ten nor more than thirty days after the Board has given written notice to the applicant of the action of the disapproving authority. The length of any such hearing shall be determined by the Board, but it shall afford all interested parties a reasonable opportunity to testify at such hearing. At the conclusion thereof, the Board shall, by order, grant or deny the application on the basis of the record made at such hearing. In the event of the failure of the Board to act on any application for approval under this section within the ninety-one-day period which begins on the date of submission to the Board of the complete record on that application, the application shall be deemed to have been granted. Notwithstanding any other provision of this subsection, if the Board finds that it must act immediately on any application for approval under this section in order to prevent the probable failure of a bank or bank holding company involved in a proposed acquisition, merger, or consolidation transaction, the Board may dispense with the notice requirements of this subsection, and if notice is given, the Board may request that the views and recommendations of the Comptroller of the Currency or the State supervisory authority, as the case may be, be submitted immediately in any form or by any means acceptable to the Board. If the Board has found pursuant to this subsection either that an emergency exists requiring expeditious action or that it must act immediately to prevent probable failure, the Board may grant or deny any such application without a hearing notwithstanding any recommended disapproval by the appropriate supervisory authority. (FOOTNOTE 2) So in original. Probably should be ''acquired''.
(2) Waiver in case of bank in danger of closing
If the Board receives a certification described in section 1823(f)(8)(D) (FOOTNOTE 3) of this title from the appropriate Federal or State chartering authority that a bank is in danger of closing, the Board may dispense with the notice and hearing requirements of paragraph (1) with respect to any application received by the Board relating to the acquisition of such bank, the bank holding company which controls such bank, or any other affiliated bank.
(FOOTNOTE 3) See References in Text note below.
(c) Factors for consideration by Board
(1) Competitive factors
The Board shall not approve -(A) any acquisition or merger or consolidation under this section which would result in a monopoly, or which would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States, or
(B) any other proposed acquisition or merger or consolidation under this section whose effect in any section of the country may be substantially to lessen competition, or to tend to create a monopoly, or which in any other manner would be in restraint or (FOOTNOTE 4) trade, unless it finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served.
(FOOTNOTE 4) So in original. Probably should be ''of''.(2) Banking and community factors
In every case, the Board shall take into consideration the financial and managerial resources and future prospects of the company or companies and the banks concerned, and the convenience and needs of the community to be served.
(3) Supervisory factors
The Board shall disapprove any application under this section by any company if -(A) the company fails to provide the Board with adequate assurances that the company will make available to the Board such information on the operations or activities of the company, and any affiliate of the company, as the Board determines to be appropriate to determine and enforce compliance with this chapter; or
(B) in the case of an application involving a foreign bank, the foreign bank is not subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in the bank's home country.(4) Treatment of certain bank stock loans
Notwithstanding any other provision of law, the Board shall not follow any practice or policy in the consideration of any application for the formation of a one-bank holding company if following such practice or policy would result in the rejection of such application solely because the transaction to form such one-bank holding company involves a bank stock loan which is for a period of not more than twenty-five years. The previous sentence shall not be construed to prohibit the Board from rejecting any application solely because the other financial arrangements are considered unsatisfactory. The Board shall consider transactions involving bank stock loans for the formation of a one-bank holding company having a maturity of twelve years or more on a case by case basis and no such transaction shall be approved if the Board believes the safety or soundness of the bank may be jeopardized.
(5) Managerial resources
Consideration of the managerial resources of a company or bank under paragraph (2) shall include consideration of the competence, experience, and integrity of the officers, directors, and principal shareholders of the company or bank.
(<-- Previous Changes)
(6) MONEY LAUNDERING- In every case, the Board shall take into consideration the effectiveness of the company or companies in combatting money laundering activities, including in overseas branches.
(Next Changes->)
(d) Interstate banking
(1) Approvals authorized
(A) Acquisition of banks
The Board may approve an application under this section by a bank holding company that is adequately capitalized and adequately managed to acquire control of, or acquire all or substantially all of the assets of, a bank located in a State other than the home State of such bank holding company, without regard to whether such transaction is prohibited under the law of any State.
(B) Preservation of State age laws(i) In general
Notwithstanding subparagraph (A), the Board may not approve an application pursuant to such subparagraph that would have the effect of permitting an out-of-State bank holding company to acquire a bank in a host State that has not been in existence for the minimum period of time, if any, specified in the statutory law of the host State.
(ii) Special rule for State age laws specifying a period of more than 5 years
Notwithstanding clause (i), the Board may approve, pursuant to subparagraph (A), the acquisition of a bank that has been in existence for at least 5 years without regard to any longer minimum period of time specified in a statutory law of the host State.(C) Shell banks
For purposes of this subsection, a bank that has been chartered solely for the purpose of, and does not open for business prior to, acquiring control of, or acquiring all or substantially all of the assets of, an existing bank shall be deemed to have been in existence for the same period of time as the bank to be acquired.
(D) Effect on State contingency laws
No provision of this subsection shall be construed as affecting the applicability of a State law that makes an acquisition of a bank contingent upon a requirement to hold a portion of such bank's assets available for call by a State-sponsored housing entity established pursuant to State law, if -(i) the State law does not have the effect of discriminating against out-of-State banks, out-of-State bank holding companies, or subsidiaries of such banks or bank holding companies;
(ii) that State law was in effect as of September 29, 1994;
(iii) the Federal Deposit Insurance Corporation has not determined that compliance with such State law would result in an unacceptable risk to the appropriate deposit insurance fund; and
(iv) the appropriate Federal banking agency for such bank has not found that compliance with such State law would place the bank in an unsafe or unsound condition.(2) Concentration limits
(A) Nationwide concentration limits
The Board may not approve an application pursuant to paragraph (1)(A) if the applicant (including all insured depository institutions which are affiliates of the applicant) controls, or upon consummation of the acquisition for which such application is filed would control, more than 10 percent of the total amount of deposits of insured depository institutions in the United States.
(B) Statewide concentration limits other than with respect to initial entries
The Board may not approve an application pursuant to paragraph (1)(A) if -(i) immediately before the consummation of the acquisition for which such application is filed, the applicant (including any insured depository institution affiliate of the applicant) controls any insured depository institution or any branch of an insured depository institution in the home State of any bank to be acquired or in any host State in which any such bank maintains a branch; and
(ii) the applicant (including all insured depository institutions which are affiliates of the applicant), upon consummation of the acquisition, would control 30 percent or more of the total amount of deposits of insured depository institutions in any such State.(C) Effectiveness of State deposit caps
No provision of this subsection shall be construed as affecting the authority of any State to limit, by statute, regulation, or order, the percentage of the total amount of deposits of insured depository institutions in the State which may be held or controlled by any bank or bank holding company (including all insured depository institutions which are affiliates of the bank or bank holding company) to the extent the application of such limitation does not discriminate against out-of-State banks, out-of-State bank holding companies, or subsidiaries of such banks or holding companies.
(D) Exceptions to subparagraph (B)
The Board may approve an application pursuant to paragraph (1)(A) without regard to the applicability of subparagraph (B) with respect to any State if -(i) there is a limitation described in subparagraph (C) in a State statute, regulation, or order which has the effect of permitting a bank or bank holding company (including all insured depository institutions which are affiliates of the bank or bank holding company) to control a greater percentage of total deposits of all insured depository institutions in the State than the percentage permitted under subparagraph (B); or
(ii) the acquisition is approved by the appropriate State bank supervisor of such State and the standard on which such approval is based does not have the effect of discriminating against out-of-State banks, out-of-State bank holding companies, or subsidiaries of such banks or holding companies.(E) ''Deposit'' defined
For purposes of this paragraph, the term ''deposit'' has the same meaning as in section 1813(l) of this title.(3) Community reinvestment compliance
In determining whether to approve an application under paragraph (1)(A), the Board shall -(A) comply with the responsibilities of the Board regarding such application under section 2903 of this title; and
(B) take into account the applicant's record of compliance with applicable State community reinvestment laws.(4) Applicability of antitrust laws
No provision of this subsection shall be construed as affecting-(A) the applicability of the antitrust laws; or
(B) the applicability, if any, of any State law which is similar to the antitrust laws.(5) Exception for banks in default or in danger of default
The Board may approve an application pursuant to paragraph (1)(A) which involves -(A) an acquisition of 1 or more banks in default or in danger of default; or
(B) an acquisition with respect to which assistance is provided under section 1823(c) of this title; without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (2) or (3).
(e) Insured depository institution
Every bank that is a holding company and every bank that is a subsidiary of such
a company shall become and remain an insured depository institution as defined
in section 1813 of this title.
(f) (Repealed)
(g) Mutual bank holding company
(1) Establishment
Notwithstanding any provision of Federal law other than this chapter, a savings bank or cooperative bank operating in mutual form may reorganize so as to form a holding company.
(2) Regulations
A bank holding company organized as a mutual holding company shall be regulated on terms, and shall be subject to limitations, comparable to those applicable to any other bank holding company.
various administrative details omitted
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 619, 1815, 1817, 1823, 1828b, 1843,
1844, 1849, 1850, 2902, 3105 of this title;
title 15 sections 18a, 77c.
12 USC Sec. 1953 Has Changes 01/02/01
TITLE 12 - BANKS AND BANKING
CHAPTER 21 - FINANCIAL RECORDKEEPING
Sec. 1953. Recordkeeping and procedures
(<-- Previous Changes)
(a) Regulations
Where the Secretary determines that the maintenance of appropriate records and
procedures by any uninsured bank or uninsured institution, or any person
engaging in the business of carrying on in the United States any of the
functions referred to in subsection (b) of this section, has a high degree of
usefulness in criminal, tax, or regulatory investigations or proceedings, he may
by regulation require such bank, institution, or person -
(1) to require, retain, or maintain, with respect to its functions as an uninsured bank or uninsured institution or its functions referred to in subsection (b) of this section, any records or evidence of any type which the Secretary is authorized under section 1829b of this title to require insured banks to require, retain, or maintain; and
(2) to maintain procedures to assure compliance with requirements imposed under this chapter. For the purposes of any civil or criminal penalty, a separate violation of any requirement under this paragraph occurs with respect to each day and each separate office, branch, or place of business in which the violation occurs or continues.
(a) REGULATIONS- If the
Secretary determines that the maintenance of appropriate records and procedures
by any uninsured bank or uninsured institution, or any person engaging in the
business of carrying on in the United States any of the functions referred to in
subsection (b), has a high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, and that, given the threat posed to the security
of the Nation on and after the terrorist attacks against the United States on
September 11, 2001, such records may also have a high degree of usefulness in
the conduct of intelligence or counterintelligence activities, including
analysis, to protect against international terrorism, he may by regulation
require such bank, institution, or person.
(Next Changes->)
(b) Institutions subject to recordkeeping requirements The authority of the Secretary of the Treasury under subsection (a) of this section extends to any financial institution (as defined in section 5312(a)(2) of title 31), other than any insured bank (as defined in section 1813(h) of this title) and any insured institution (as defined in section 1724(a) (FOOTNOTE 1) of this title), and any partner, officer, director, or employee of any such financial institution. (FOOTNOTE 1) See References in Text note below.
(c) Acceptance of automated records
The Secretary shall permit an uninsured bank or financial institution to retain
or maintain records referred to in subsection (a) of this section in electronic
or automated form, subject to terms and conditions established by the Secretary.
-SOURCE-
(Pub. L. 91-508, title I, Sec. 123, Oct. 26, 1970, 84 Stat. 1116;
Pub. L. 100-690, title VI, Sec. 6185(d)(3)(A), Nov. 18, 1988, 102 Stat. 4357;
Pub. L. 103-325, title III, Sec. 310, Sept. 23, 1994, 108 Stat. 2221.)
misc administrative details omitted
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 1951 of this title.
12 USC Sec. 3409 01/02/01
TITLE 12 - BANKS AND BANKING
CHAPTER 35 - RIGHT TO FINANCIAL PRIVACY
Sec. 3409. Delayed notice
(a) Application by Government authority; findings
Upon application of the Government authority, the customer notice required under
section 3404(c), 3405(2), 3406(c), 3407(2), 3408(4), or 3412(b) of this title
may be delayed by order of an appropriate court if the presiding judge or
magistrate judge finds that -
(1) the investigation being conducted is within the lawful jurisdiction of the Government authority seeking the financial records;
(2) there is reason to believe that the records being sought are relevant to a legitimate law enforcement inquiry; and
(3) there is reason to believe that such notice will result in -(A) endangering life or physical safety of any person;
(B) flight from prosecution;
(C) destruction of or tampering with evidence;
(D) intimidation of potential witnesses; or
(E) otherwise seriously jeopardizing an investigation or official proceeding or unduly delaying a trial or ongoing official proceeding to the same extent as the circumstances in the preceeding (FOOTNOTE 1) subparagraphs.
(FOOTNOTE 1) So in original. Probably should be ''preceding''.
An application for delay must be made with reasonable specificity.
(b) Grant of delay order; duration and specifications; extensions; copy of request and notice to customer
(1) If the court makes the findings required in paragraphs (1), (2), and (3) of subsection (a) of this section, it shall enter an ex parte order granting the requested delay for a period not to exceed ninety days and an order prohibiting the financial institution from disclosing that records have been obtained or that a request for records has been made, except that, if the records have been sought by a Government authority exercising financial controls over foreign accounts in the United States under section 5(b) of the Trading with the Enemy Act (12 U.S.C. 95a, 50 App. U.S.C. 5(b)), the International Emergency Economic Powers Act (title II, Public Law 95-223) (50 U.S.C. 1701 et seq.), or section 287c of title 22, and the court finds that there is reason to believe that such notice may endanger the lives or physical safety of a customer or group of customers, or any person or group of persons associated with a customer, the court may specify that the delay be indefinite.
(2) Extensions of the delay of notice provided in paragraph (1) of up to ninety days each may be granted by the court upon application, but only in accordance with this subsection.
(3) Upon expiration of the period of delay of notification under paragraph (1) or (2), the customer shall be served with or mailed a copy of the process or request together with the following notice which shall state with reasonable specificity the nature of the law enforcement inquiry:
''Records or information concerning your transactions which are held by the financial institution named in the attached process or request were supplied to or requested by the Government authority named in the process or request on (date). Notification was withheld pursuant to a determination by the (title of court so ordering) under the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) that such notice might (state reason). The purpose of the investigation or official proceeding was .''.
(c) Notice requirement respecting emergency access to
financial records
When access to financial records is obtained pursuant to section 3414(b) of this
title (emergency access), the Government authority shall, unless a court has
authorized delay of notice pursuant to subsections (a) and (b) of this section,
as soon as practicable after such records are obtained serve upon the customer,
or mail by registered or certified mail to his last known address, a copy of the
request to the financial institution together with the following notice which
shall state with reasonable specificity the nature of the law enforcement
inquiry:
''Records concerning your transactions held by the financial institution named
in the attached request were obtained by (agency or department) under the Right
to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) on (date) for the
following purpose: Emergency access to such records was obtained on the grounds
that (state grounds).''.
(d) Preservation of memorandums, affidavits, or other papers Any memorandum, affidavit, or other paper filed in connection with a request for delay in notification shall be preserved by the court. Upon petition by the customer to whom such records pertain, the court may order disclosure of such papers to the petitioner unless the court makes the findings required in subsection (a) of this section.
misc administrative details omitted
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3404, 3406, 3412, 3413, 3414 of this
title;
title 15 section 78u.
12 USC Sec. 3412 Has Changes 01/02/01
AKA "Right To Financial Privacy Act", Sect. 1112
Sec. 3412. Use of information
(<-- Previous Changes)
(a) Transfer of financial records to other agencies or
departments; certification
Financial records originally obtained pursuant to this chapter shall not be
transferred to another agency or department unless the transferring agency or
department certifies in writing that there is reason to believe that the records
are relevant to a legitimate law enforcement inquiry,
or intelligence or counterintelligence activity, investigation or analysis
related to international terrorism within the jurisdiction of
the receiving agency or department.
(Next Changes->)
(b) Mailing of copy of certification and notice to customer When financial records subject to this chapter are transferred pursuant to subsection (a) of this section, the transferring agency or department shall, within fourteen days, send to the customer a copy of the certification made pursuant to subsection (a) of this section and the following notice, which shall state the nature of the law enforcement inquiry with reasonable specificity: ''Copies of, or information contained in, your financial records lawfully in possession of have been furnished to pursuant to the Right of Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) for the following purpose: . If you believe that this transfer has not been made to further a legitimate law enforcement inquiry, you may have legal rights under the Financial Privacy Act of 1978 or the Privacy Act of 1974 (5 U.S.C. 552a).''
(c) Court-ordered delays in mailing
Notwithstanding subsection (b) of this section, notice to the customer may be
delayed if the transferring agency or department has obtained a court order
delaying notice pursuant to section 3409(a) and (b) of this title and that order
is still in effect, or if the receiving agency or department obtains a court
order authorizing a delay in notice pursuant to section 3409(a) and (b) of this
title. Upon the expiration of any such period of delay, the transferring agency
or department shall serve to the customer the notice specified in subsection (b)
of this section and the agency or department that obtained the court order
authorizing a delay in notice pursuant to section 3409(a) and (b) of this title
shall serve to the customer the notice specified in section 3409(b) of this
title.
(d) Exchanges of examination reports by supervisory
agencies; transfer of financial records to defend customer action; withholding
of information
Nothing in this chapter prohibits any supervisory agency from exchanging
examination reports or other information with another supervisory agency.
Nothing in this chapter prohibits the transfer of a customer's financial records
needed by counsel for a Government authority to defend an action brought by the
customer. Nothing in this chapter shall authorize the withholding of information
by any officer or employee of a supervisory agency from a duly authorized
committee or subcommittee of the Congress.
(e) Exchange of records, reports, or other information
Notwithstanding section 3401(6) (FOOTNOTE 1) of this title or any other
provision of law, the exchange of financial records, examination reports or
other information with respect to a financial institution, holding company, or
any subsidiary of a depository institution or holding company, among and between
the five member supervisory agencies of the Federal Financial Institutions
Examination Council, the Securities and Exchange Commission, and the Commodity
Futures Trading Commission is permitted.
(FOOTNOTE 1) See References in Text note below.
(f) Transfer to Attorney General or Secretary of the Treasury
(1) In general
Nothing in this chapter shall apply when financial records obtained by an agency or department of the United States are disclosed or transferred to the Attorney General or the Secretary of the Treasury upon the certification by a supervisory level official of the transferring agency or department that -(A) there is reason to believe that the records may be relevant to a violation of Federal criminal law; and
(B) the records were obtained in the exercise of the agency's or department's supervisory or regulatory functions.(2) Limitation on use
Records so transferred shall be used only for criminal investigative or prosecutive purposes, for civil actions under section 1833a of this title, or for forfeiture under sections (FOOTNOTE 2) 981 or 982 of title 18 by the Department of Justice and only for criminal investigative purposes relating to money laundering and other financial crimes by the Department of the Treasury and shall, upon completion of the investigation or prosecution (including any appeal), be returned only to the transferring agency or department. No agency or department so transferring such records shall be deemed to have waived any privilege applicable to those records under law.
(FOOTNOTE 2) So in original. Probably should be ''section''.
misc administrative details omitted
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3409, 3413 of this title;
title 15 section 78u.
12 USC Sec. 3414 Has Changes 01/02/01
AKA "Right To Financial Privacy Act", Sect. 1114
Sec. 3414. Special procedures
(<-- Previous Changes)
(<-- Previous Patriot II Changes)
(a)
(1) Nothing in this chapter (except sections 3415, 3417, 3418, and 3421 (FOOTNOTE 1) of this title) shall apply to the production and disclosure of financial records pursuant to requests from -
(FOOTNOTE 1) See References in Text note below.(A) a Government authority authorized to conduct foreign counter- or foreign positive-intelligence activities for purposes of conducting such activities;
or(Pat I)
(B) the Secret Service for the purpose of conducting its protective functions (18 U.S.C. 3056; 3 U.S.C. 202, Public Law 90-331, as amended); or
(C) a Government authority authorized to conduct investigations of, or intelligence or counterintelligence analyses related to,international terrorismterrorist activities (as defined in section 2510* of title 18, United States Code) for the purpose of conducting such investigations or analyses.(2) In the instances specified in paragraph (1), the Government authority shall submit to the financial institution the certificate required in section 3403(b) of this title signed by a supervisory official of a rank designated by the head of the Government authority.
(3) No financial institution, or officer, employee, or agent of such institution, shall disclose to any person that a Government authority described in paragraph (1) has sought or obtained access to a customer's financial records.
(4) The Government authority specified in paragraph (1) shall compile an annual tabulation of the occasions in which this section was used.(A) Financial institutions, and officers, employees, and agents thereof, shall comply with a request for a customer's or entity's financial records made pursuant to this subsection by the Federal Bureau of Investigation when the Director of the Federal Bureau of Investigation (or the Director's designee in a position not lower than Deputy Assistant Director at Bureau headquarters or a Special Agent in Charge in a Bureau field office designated by the Director) certifies in writing to the financial institution that such records are
sought for foreign counterintelligence purposes and that there are specific and articulable facts giving reason to believe that the customer or entity whose records are sought is a foreign power or an agent of a foreign power as defined in section 1801 of title 50soughtfor foreign counter intelligence purposes to protect against international terrorismto protect against terrorist activitiesor clandestine intelligence activities, provided that such an investigation of a United States person is not conducted solely upon the basis of activities protected by the first amendment to the Constitution of the United States.
(B) The Federal Bureau of Investigation may disseminate information obtained pursuant to this paragraph only as provided in guidelines approved by the Attorney Generalfor foreign intelligence collection and foreign counterintelligence investigations conducted by the Federal Bureau of Investigation, and, with respect to dissemination to an agency of the United States, only if such information is clearly relevant to the authorized responsibilities of such agency(Pat II).
(C) On a semiannual basis the Attorney General shall fully inform the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate concerning all requests made pursuant to this paragraph.
(D) No financial institution, or officer, employee, or agent of such institution, shall disclose to any person that the Federal Bureau of Investigation has sought or obtained access to a customer's or entity's financial records under this paragraph.
(Next Changes->)
(Next Patriot II Changes->)
(b)
(1) Nothing in this chapter shall prohibit a Government authority from obtaining financial records from a financial institution if the Government authority determines that delay in obtaining access to such records would create imminent danger of -
(A) physical injury to any person;
(B) serious property damage; or
(C) flight to avoid prosecution.(2) In the instances specified in paragraph (1), the Government shall submit to the financial institution the certificate required in section 3403(b) of this title signed by a supervisory official of a rank designated by the head of the Government authority.
(3) Within five days of obtaining access to financial records under this subsection, the Government authority shall file with the appropriate court a signed, sworn statement of a supervisory official of a rank designated by the head of the Government authority setting forth the grounds for the emergency access. The Government authority shall thereafter comply with the notice provisions of section 3409(c) of this title.
(4) The Government authority specified in paragraph (1) shall compile an annual tabulation of the occasions in which this section was used.
misc administrative details omitted
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3402, 3409 of this title.
12 USC Sec. 3420 Has Changes 01/02/01
Sec. 3420. Grand jury information; notification of certain persons prohibited
(<-- Previous Changes)
(a) Financial records about a customer obtained from a
financial institution pursuant to a subpena issued under the authority of a
Federal grand jury -
(1) shall be returned and actually presented to the grand jury unless the volume of such records makes such return and actual presentation impractical in which case the grand jury shall be provided with a description of the contents of the records.; (FOOTNOTE 1)
(FOOTNOTE 1) So in original.
(2) shall be used only for the purpose of considering whether to issue an indictment or presentment by that grand jury, or of prosecuting a crime for which that indictment or presentment is issued, or for a purpose authorized by rule 6(e) of the Federal Rules of Criminal Procedure, or for a purpose authorized by section 1112(a);
(3) shall be destroyed or returned to the financial institution if not used for one of the purposes specified in paragraph (2); and
(4) shall not be maintained, or a description of the contents of such records shall not be maintained by any Government authority other than in the sealed records of the grand jury, unless such record has been used in the prosecution of a crime for which the grand jury issued an indictment or presentment or for a purpose authorized by rule 6(e) of the Federal Rules of Criminal Procedure.
(Next Changes->)
(b)
(1) No officer, director, partner, employee, or shareholder of, or agent or attorney for, a financial institution shall, directly or indirectly, notify any person named in a grand jury subpoena served on such institution in connection with an investigation relating to a possible -
(A) crime against any financial institution or supervisory agency or crime involving a violation of the Controlled Substance Act (21 U.S.C. 801 et seq.), the Controlled Substances Import and Export Act (21 U.S.C. 951 et seq.), section 1956 or 1957 of title 18, sections 5313, 5316 and 5324 of title 31, or section 6050I of title 26; or
(B) conspiracy to commit such a crime,
about the existence or contents of such subpoena, or information that has been furnished to the grand jury in response to such subpoena.(2) Section 1818 ( Termination of status as insured depository institution ) of this title and section 1786(k)(2) (Civil money penalty imposed upon the institution ) of this title shall apply to any violation of this subsection.
misc administrative details omitted
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 3413 of this title.