12 U.S.C. § 1844 — Administration

Page 1247 TITLE 12—BANKS AND BANKING § 1844 1 See References in Text note below. [12 U.S.C. 1843(k)(4)(H)], under such terms and condi- tions as the Board of Governors of the Federal Reserve System and the Secretary of the Treasury jointly de- termine to be appropriate.’’ MODIFICATION OF PRIOR APPROVALS Pub. L. 101–73, title VI, § 601(b), Aug. 9, 1989, 103 Stat. 409, provided that: ‘‘If the Board of Governors of the Federal Reserve System, in approving an application by a bank holding company to acquire a savings asso- ciation, imposed any restriction that would have been prohibited under section 4(i)(2) of the Bank Holding Company Act of 1956 [12 U.S.C. 1843(i)(2)] (as added by subsection (a) of this section) if that section had been in effect when the application was approved, the Board shall modify that approval in a manner consistent with that section.’’ EXTENSION OF EMERGENCY ACQUISITION AND NET WORTH GUARANTEE PROVISIONS OF PUB. L. 97–320 No amendment made by section 141(a) of Pub. L. 97–320, set out as a note under section 1464 of this title, as in effect before Aug. 10, 1987, to any other provision of law to be deemed to have taken effect before such date and any such provision of law to be in effect as if no such amendment had been made before such date, see section 509(c) of Pub. L. 100–86, set out as a note under section 1464 of this title. No amendment made by section 141(a) of Pub. L. 97–320, set out as a note under section 1464 of this title, as in effect on the day before Oct. 8, 1986, to any other provision of law to be deemed to have taken effect be- fore such date and any such provision of law to be in ef- fect as if no such amendment had taken effect before such date, see section 1(c) of Pub. L. 99–452, set out as a note under section 1464 of this title. Section 141(a) of Pub. L. 97–320, set out as a note under section 1464 of this title, as in effect on the day after Aug. 27, 1986, applicable as if included in Pub. L. 97–320 on Oct. 15, 1982, with no amendment made by such section to any other provision of law to be deemed to have taken effect before Aug. 27, 1986, and any such provision of law to be in effect as if no such amendment had taken effect before Aug. 27, 1986, see section 1(c) of Pub. L. 99–400, set out as a note under section 1464 of this title. BANK EXPORT SERVICES Pub. L. 97–290, title II, § 202, Oct. 8, 1982, 96 Stat. 1235, provided that: ‘‘The Congress hereby declares that it is the purpose of this title [enacting section 635a–4 of this title, amending sections 372 and 1843 of this title, and enacting provisions set out as notes under section 1843 of this title] to provide for meaningful and effective participation by bank holding companies, bankers’ banks, and Edge Act [12 U.S.C. 611 et seq.] corporations, in the financing and development of export trading companies in the United States. In furtherance of such purpose, the Congress intends that, in implementing its authority under section 4(c)(14) of the Bank Holding Company Act of 1956 [subsec. (c)(14) of this section] the Board of Governors of the Federal Reserve System should pursue regulatory policies that— ‘‘(1) provide for the establishment of export trading companies with powers sufficiently broad to enable them to complete with similar foreign-owned institu- tions in the United States and abroad; ‘‘(2) afford to United States commerce, industry, and agriculture, especially small- and medium-size firms, a means of exporting at all times; ‘‘(3) foster the participation by regional and smaller banks in the development of export trading compa- nies; and ‘‘(4) facilitate the formation of joint venture export trading companies between bank holding companies and nonbank firms that provide for the efficient com- bination of complementary trade and financing serv- ices designed to create export trading companies that can handle all of an exporting company’s needs.’’ REPORT TO CONGRESS BY FEDERAL RESERVE BOARD REGARDING CHANGES IN FINANCING OF UNITED STATES EXPORTS Pub. L. 97–290, title II, § 205, Oct. 8, 1982, 96 Stat. 1238, required Federal Reserve Board, within two years after Oct. 8, 1982, to report to Congress its recommendations with respect to implementation of this section, on any changes in United States law to facilitate financing of United States exports, and on effects of ownership of United States banks by foreign banking organizations affiliated with trading companies doing business in United States. § 1844. Administration (a) Registration of bank holding company Within one hundred and eighty days after May 9, 1956, or within one hundred and eighty days after becoming a bank holding company, which- ever is later, each bank holding company shall register with the Board on forms prescribed by the Board, which shall include such information with respect to the financial condition and oper- ations, management, and intercompany rela- tionships of the bank holding company and its subsidiaries, and related matters, as the Board may deem necessary or appropriate to carry out the purposes of this chapter. The Board may, in its discretion, extend the time within which a bank holding company shall register and file the requisite information. A declaration filed in ac- cordance with section 1843(l)(1)(C) 1 of this title shall satisfy the requirements of this subsection with regard to the registration of a bank holding company but not any requirement to file an ap- plication to acquire a bank pursuant to section 1842 of this title. (b) Regulations and orders The Board is authorized to issue such regula- tions and orders, including regulations and or- ders relating to the capital requirements for bank holding companies, as may be necessary to enable it to administer and carry out the pur- poses of this chapter and prevent evasions there- of. In establishing capital regulations pursuant to this subsection, the Board shall seek to make such requirements countercyclical, so that the amount of capital required to be maintained by a company increases in times of economic ex- pansion and decreases in times of economic con- traction, consistent with the safety and sound- ness of the company. (c) Reports and examinations (1) Reports (A) In general The Board, from time to time, may require a bank holding company and any subsidiary of such company to submit reports under oath to keep the Board informed as to— (i) its financial condition, systems for monitoring and controlling financial and operating risks, and transactions with de- pository institution subsidiaries of the bank holding company; and (ii) compliance by the bank holding com- pany or subsidiary with— Page 1248 TITLE 12—BANKS AND BANKING § 1844 (I) this chapter; (II) Federal laws that the Board has specific jurisdiction to enforce against the company or subsidiary; and (III) other than in the case of an in- sured depository institution or function- ally regulated subsidiary, any other ap- plicable provision of Federal law. (B) Use of existing reports and other super- visory information The Board shall, to the fullest extent pos- sible, use— (i) reports and other supervisory infor- mation that the bank holding company or any subsidiary thereof has been required to provide to other Federal or State regu- latory agencies; (ii) externally audited financial state- ments of the bank holding company or subsidiary; (iii) information otherwise available from Federal or State regulatory agencies; and (iv) information that is otherwise re- quired to be reported publicly. (C) Availability Upon the request of the Board, the bank holding company or a subsidiary of the bank holding company shall promptly provide to the Board any information described in clauses (i) through (iii) of subparagraph (B). (2) Examinations (A) In general Subject to subtitle B of the Consumer Fi- nancial Protection Act of 2010 [12 U.S.C. 5511 et seq.], the Board may make examinations of a bank holding company and each sub- sidiary of a bank holding company in order to— (i) inform the Board of— (I) the nature of the operations and fi- nancial condition of the bank holding company and the subsidiary; (II) the financial, operational, and other risks within the bank holding com- pany system that may pose a threat to— (aa) the safety and soundness of the bank holding company or of any depos- itory institution subsidiary of the bank holding company; or (bb) the stability of the financial sys- tem of the United States; and (III) the systems of the bank holding company for monitoring and controlling the risks described in subclause (II); and (ii) monitor the compliance of the bank holding company and the subsidiary with— (I) this chapter; (II) Federal laws that the Board has specific jurisdiction to enforce against the company or subsidiary; and (III) other than in the case of an in- sured depository institution or function- ally regulated subsidiary, any other ap- plicable provisions of Federal law. (B) Use of reports to reduce examinations For purposes of this paragraph, the Board shall, to the fullest extent possible, rely on— (i) examination reports made by other Federal or State regulatory agencies relat- ing to a bank holding company and any subsidiary of a bank holding company; and (ii) the reports and other information re- quired under paragraph (1). (C) Coordination with other regulators The Board shall— (i) provide reasonable notice to, and con- sult with, the appropriate Federal banking agency, the Securities and Exchange Com- mission, the Commodity Futures Trading Commission, or State regulatory agency, as appropriate, for a subsidiary that is a depository institution or a functionally regulated subsidiary of a bank holding company before commencing an examina- tion of the subsidiary under this section; and (ii) to the fullest extent possible, avoid duplication of examination activities, re- porting requirements, and requests for in- formation. (3) Capital (A) In general The Board may not, by regulation, guide- line, order, or otherwise, prescribe or impose any capital or capital adequacy rules, guide- lines, standards, or requirements on any functionally regulated subsidiary of a bank holding company that— (i) is not a depository institution; and (ii) is— (I) in compliance with the applicable capital requirements of its Federal regu- latory authority (including the Securi- ties and Exchange Commission) or State insurance authority; (II) properly registered as an invest- ment adviser under the Investment Ad- visers Act of 1940 [15 U.S.C. 80b–1 et seq.], or with any State; or (III) is licensed as an insurance agent with the appropriate State insurance au- thority. (B) Rule of construction Subparagraph (A) shall not be construed as preventing the Board from imposing capital or capital adequacy rules, guidelines, stand- ards, or requirements with respect to— (i) activities of a registered investment adviser other than with respect to invest- ment advisory activities or activities inci- dental to investment advisory activities; or (ii) activities of a licensed insurance agent other than insurance agency activi- ties or activities incidental to insurance agency activities. (C) Limitations on indirect action In developing, establishing, or assessing bank holding company capital or capital adequacy rules, guidelines, standards, or re- quirements for purposes of this paragraph, the Board may not take into account the ac- tivities, operations, or investments of an af- filiated investment company registered under the Investment Company Act of 1940 Page 1249 TITLE 12—BANKS AND BANKING § 1844 [15 U.S.C. 80a–1 et seq.], unless the invest- ment company is— (i) a bank holding company; or (ii) controlled by a bank holding com- pany by reason of ownership by the bank holding company (including through all of its affiliates) of 25 percent or more of the shares of the investment company, and the shares owned by the bank holding com- pany have a market value equal to more than $1,000,000. (4) Functional regulation of securities and in- surance activities (A) Securities activities Securities activities conducted in a func- tionally regulated subsidiary of a depository institution shall be subject to regulation by the Securities and Exchange Commission, and by relevant State securities authorities, as appropriate, subject to section 6701 of title 15, to the same extent as if they were conducted in a nondepository institution subsidiary of a bank holding company. (B) Insurance activities Subject to section 6701 of title 15, insur- ance agency and brokerage activities and ac- tivities as principal conducted in a function- ally regulated subsidiary of a depository in- stitution shall be subject to regulation by a State insurance authority to the same ex- tent as if they were conducted in a non- depository institution subsidiary of a bank holding company. (5) Definition For purposes of this subsection, the term ‘‘functionally regulated subsidiary’’ means any company— (A) that is not a bank holding company or a depository institution; and (B) that is— (i) a broker or dealer that is registered under the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.]; (ii) a registered investment adviser, properly registered by or on behalf of ei- ther the Securities and Exchange Commis- sion or any State, with respect to the in- vestment advisory activities of such in- vestment adviser and activities incidental to such investment advisory activities; (iii) an investment company that is reg- istered under the Investment Company Act of 1940 [15 U.S.C. 80a–1 et seq.]; (iv) an insurance company, with respect to insurance activities of the insurance company and activities incidental to such insurance activities, that is subject to su- pervision by a State insurance regulator; or (v) an entity that is subject to regula- tion by, or registration with, the Com- modity Futures Trading Commission, with respect to activities conducted as a futures commission merchant, commodity trading adviser, commodity pool, commodity pool operator, swap execution facility, swap data repository, swap dealer, major swap participant, and activities that are inci- dental to such commodities and swaps ac- tivities. (d) Reports to the Congress; recommendations Before the expiration of two years following May 9, 1956, and each year thereafter in the Board’s annual report to the Congress, the Board shall report to the Congress the results of the administration of this chapter, stating what, if any, substantial difficulties have been encoun- tered in carrying out the purposes of this chap- ter, and any recommendations as to changes in the law which in the opinion of the Board would be desirable. (e) Termination of activities or ownership or control of nonbank subsidiaries constituting serious risk (1) Notwithstanding any other provision of this chapter, the Board may, whenever it has reasonable cause to believe that the continu- ation by a bank holding company of any activ- ity or of ownership or control of any of its nonbank subsidiaries, other than a nonbank sub- sidiary of a bank, constitutes a serious risk to the financial safety, soundness, or stability of a bank holding company subsidiary bank and is inconsistent with sound banking principles or with the purposes of this chapter or with the Fi- nancial Institutions Supervisory Act of 1966, at the election of the bank holding company— (A) order the bank holding company or any such nonbank subsidiaries, after due notice and opportunity for hearing, and after consid- ering the views of the bank’s primary super- visor, which shall be the Comptroller of the Currency in the case of a national bank or the Federal Deposit Insurance Corporation and the appropriate State supervisory authority in the case of an insured nonmember bank, to terminate such activities or to terminate (within one hundred and twenty days or such longer period as the Board may direct in un- usual circumstances) its ownership or control of any such subsidiary either by sale or by dis- tribution of the shares of the subsidiary to the shareholders of the bank holding company; or (B) order the bank holding company, after due notice and opportunity for hearing, and after consultation with the primary supervisor for the bank, which shall be the Comptroller of the Currency in the case of a national bank, and the Federal Deposit Insurance Corpora- tion and the appropriate State supervisor in the case of an insured nonmember bank, to terminate (within 120 days or such longer pe- riod as the Board may direct) the ownership or control of any such bank by such company. The distribution referred to in subparagraph (A) shall be pro rata with respect to all of the share- holders of the distributing bank holding com- pany, and the holding company shall not make any charge to its shareholders arising out of such a distribution. (2) The Board may in its discretion apply to the United States district court within the juris- diction of which the principal office of the hold- ing company is located, for the enforcement of any effective and outstanding order issued under this section, and such court shall have jurisdic- tion and power to order and require compliance therewith, but except as provided in section 1848 of this title, no court shall have jurisdiction to affect by injunction or otherwise the issuance or Page 1250 TITLE 12—BANKS AND BANKING § 1844 2 So in original. Probably should be ‘‘materially’’. enforcement of any notice or order under this section, or to review, modify, suspend, termi- nate, or set aside any such notice or order. (f) Powers of Board respecting applications, ex- aminations, or other proceedings In the course of or in connection with an ap- plication, examination, investigation or other proceeding under this chapter, the Board, or any member or designated representative thereof, including any person designated to conduct any hearing under this chapter, shall have the power to administer oaths and affirmations, to take or cause to be taken depositions, and to issue, re- voke, quash, or modify subpoenas and subpoenas duces tecum; and the Board is empowered to make rules and regulations to effectuate the purposes of this subsection. The attendance of witnesses and the production of documents pro- vided for in this subsection may be required from any place in any State or in any territory or other place subject to the jurisdiction of the United States at any designated place where such proceeding is being conducted. Any party to proceedings under this chapter may apply to the United States District Court for the District of Columbia, or the United States district court for the judicial district or the United States court in any territory in which such proceeding is being conducted or where the witness resides or carries on business, for the enforcement of any subpoena or subpoena duces tecum issued pursuant to this subsection, and such courts shall have jurisdiction and power to order and require compliance therewith. Witnesses subpoe- naed under this subsection shall be paid the same fees and mileage that are paid witnesses in the district courts of the United States. Any service required under this subsection may be made by registered mail, or in such other man- ner reasonably calculated to give actual notice as the Board may by regulation or otherwise provide. Any court having jurisdiction of any proceeding instituted under this subsection may allow to any such party such reasonable ex- penses and attorneys’ fees as it deems just and proper. Any person who willfully shall fail or refuse to attend and testify or to answer any lawful inquiry or to produce books, papers, cor- respondence, memoranda, contracts, agree- ments, or other records, if in such person’s power so to do, in obedience to the subpoena of the Board, shall be guilty of a misdemeanor and, upon conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for a term of not more than one year or both. (g) Authority of State insurance regulator and the Securities and Exchange Commission (1) In general Notwithstanding any other provision of law, any regulation, order, or other action of the Board that requires a bank holding company to provide funds or other assets to a subsidiary depository institution shall not be effective nor enforceable with respect to an entity de- scribed in subparagraph (A) if— (A) such funds or assets are to be provided by— (i) a bank holding company that is an in- surance company, a broker or dealer reg- istered under the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.], an invest- ment company registered under the In- vestment Company Act of 1940 [15 U.S.C. 80a–1 et seq.], or an investment adviser registered by or on behalf of either the Se- curities and Exchange Commission or any State; or (ii) an affiliate of the depository institu- tion that is an insurance company or a broker or dealer registered under the Secu- rities Exchange Act of 1934, an investment company registered under the Investment Company Act of 1940, or an investment ad- viser registered by or on behalf of either the Securities and Exchange Commission or any State; and (B) the State insurance authority for the insurance company or the Securities and Ex- change Commission for the registered broker, dealer, investment adviser (solely with respect to investment advisory activi- ties or activities incidental thereto), or in- vestment company, as the case may be, de- termines in writing sent to the holding com- pany and the Board that the holding com- pany shall not provide such funds or assets because such action would have a material 2 adverse effect on the financial condition of the insurance company or the broker, deal- er, investment company, or investment ad- viser, as the case may be. (2) Notice to State insurance authority or SEC required If the Board requires a bank holding com- pany, or an affiliate of a bank holding com- pany, that is an insurance company or a broker, dealer, investment company, or in- vestment adviser described in paragraph (1)(A) to provide funds or assets to a depository in- stitution subsidiary of the holding company pursuant to any regulation, order, or other ac- tion of the Board referred to in paragraph (1), the Board shall promptly notify the State in- surance authority for the insurance company, the Securities and Exchange Commission, or State securities regulator, as the case may be, of such requirement. (3) Divestiture in lieu of other action If the Board receives a notice described in paragraph (1)(B) from a State insurance au- thority or the Securities and Exchange Com- mission with regard to a bank holding com- pany or affiliate referred to in that paragraph, the Board may order the bank holding com- pany to divest the depository institution not later than 180 days after receiving the notice, or such longer period as the Board determines consistent with the safe and sound operation of the depository institution. (4) Conditions before divestiture During the period beginning on the date an order to divest is issued by the Board under paragraph (3) to a bank holding company and ending on the date the divestiture is com- pleted, the Board may impose any conditions Page 1251 TITLE 12—BANKS AND BANKING § 1844 or restrictions on the holding company’s own- ership or operation of the depository institu- tion, including restricting or prohibiting transactions between the depository institu- tion and any affiliate of the institution, as are appropriate under the circumstances. (5) Rule of construction No provision of this subsection may be con- strued as limiting or otherwise affecting, ex- cept to the extent specifically provided in this subsection, the regulatory authority, includ- ing the scope of the authority, of any Federal agency or department with regard to any enti- ty that is within the jurisdiction of such agen- cy or department. (h) Data standards (1) Requirement The Board shall adopt data standards for all information that, through a collection of in- formation, is regularly filed with or submitted to the Board by any bank holding company in a report under subsection (c). (2) Consistency The data standards required under para- graph (1) shall incorporate, and ensure com- patibility with (to the extent feasible), all ap- plicable data standards established in the rules promulgated under section 5334 of this title, including, to the extent practicable, by having the characteristics described in clauses (i) through (vi) of subsection (c)(1)(B) of such section 5334. (May 9, 1956, ch. 240, § 5, 70 Stat. 137; Pub. L. 95–630, title I, §§ 105(a), 106(b), Nov. 10, 1978, 92 Stat. 3646, 3648; Pub. L. 106–102, title I, §§ 111, 112(a), 116, Nov. 12, 1999, 113 Stat. 1362, 1366, 1372; Pub. L. 111–203, title III, § 354(3), title VI, §§ 604(a)–(c)(1), 616(a), July 21, 2010, 124 Stat. 1547, 1599–1601, 1615; Pub. L. 117–263, div. E, title LVIII, § 5861(c), Dec. 23, 2022, 136 Stat. 3434.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act May 9, 1956, ch. 240, 70 Stat. 133, known as the Bank Holding Company Act of 1956, which is classified principally to this chapter. For com- plete classification of this Act to the Code, see Short Title note set out under section 1841 of this title and Tables. Section 1843(l)(1)(C) of this title, referred to in subsec. (a), was redesignated section 1843(l)(1)(D) of this title by Pub. L. 111–203, title VI, § 606(a)(2), July 21, 2010, 124 Stat. 1607. The Consumer Financial Protection Act of 2010, re- ferred to in subsec. (c)(2)(A), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955. Subtitle B of the Act is classified generally to part B (§ 5511 et seq.) of subchapter V of chapter 53 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables. The Investment Advisers Act of 1940, referred to in subsec. (c)(3)(A)(ii)(II), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, which is classified generally to sub- chapter II (§ 80b–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80b–20 of Title 15 and Tables. The Investment Company Act of 1940, referred to in subsecs. (c)(3)(C), (5)(B)(iii) and (g)(1)(A), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classi- fication of this Act to the Code, see section 80a–51 of Title 15 and Tables. The Securities Exchange Act of 1934, referred to in subsecs. (c)(5)(B)(i) and (g)(1)(A), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chap- ter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables. The Financial Institutions Supervisory Act of 1966, referred to in subsec. (e)(1), is Pub. L. 89–695, Oct. 16, 1966, 80 Stat. 1028. For complete classification of this Act to the Code, see Short Title of 1966 Amendment note set out under section 1464 of this title and Tables. AMENDMENTS 2022—Subsec. (h). Pub. L. 117–263 added subsec. (h). 2010—Subsec. (b). Pub. L. 111–203, § 616(a), inserted ‘‘, including regulations and orders relating to the cap- ital requirements for bank holding companies,’’ after ‘‘orders’’ and ‘‘In establishing capital regulations pur- suant to this subsection, the Board shall seek to make such requirements countercyclical, so that the amount of capital required to be maintained by a company in- creases in times of economic expansion and decreases in times of economic contraction, consistent with the safety and soundness of the company.’’ at the end. Subsec. (c)(1)(A)(ii). Pub. L. 111–203, § 604(a)(1), added cl. (ii) and struck out former cl. (ii) which read as fol- lows: ‘‘compliance by the company or subsidiary with applicable provisions of this chapter or any other Fed- eral law that the Board has specific jurisdiction to en- force against such company or subsidiary.’’ Subsec. (c)(1)(B). Pub. L. 111–203, § 604(a)(2), added sub- par. (B) and struck out former subpar. (B) which re- lated to use of existing reports. Subsec. (c)(1)(C). Pub. L. 111–203, § 604(a)(3), added sub- par. (C). Subsec. (c)(2). Pub. L. 111–203, § 604(b), amended par. (2) generally. Prior to amendment, par. (2) consisted of subpars. (A) to (E) relating to examination authority for bank holding companies and subsidiaries, function- ally regulated subsidiaries, restricted focus of examina- tions, deference to bank examinations, and deference to other examinations, respectively. Subsec. (c)(5)(B)(v). Pub. L. 111–203, § 604(c)(1), added cl. (v) and struck out former cl. (v) which read as fol- lows: ‘‘an entity that is subject to regulation by the Commodity Futures Trading Commission, with respect to the commodities activities of such entity and activi- ties incidental to such commodities activities.’’ Subsec. (f). Pub. L. 111–203, § 354(3), substituted ‘‘sub- poenas’’ for ‘‘subpenas’’ in two places, ‘‘subpoena’’ for ‘‘subpena’’ wherever appearing, and ‘‘subpoenaed’’ for ‘‘subpenaed’’. 1999—Subsec. (a). Pub. L. 106–102, § 116(a), inserted at end ‘‘A declaration filed in accordance with section 1843(l)(1)(C) of this title shall satisfy the requirements of this subsection with regard to the registration of a bank holding company but not any requirement to file an application to acquire a bank pursuant to section 1842 of this title.’’ Subsec. (c). Pub. L. 106–102, § 111, inserted heading and amended text of subsec. (c) generally. Prior to amend- ment, text read as follows: ‘‘The Board from time to time may require reports under oath to keep it in- formed as to whether the provisions of this chapter and such regulations and orders issued thereunder have been complied with; and the Board may make examina- tions of each bank holding company and each sub- sidiary thereof, the cost of which shall be assessed against, and paid by, such holding company. The Board shall, as far as possible, use the report of examinations made by the Comptroller of the Currency, the Federal Deposit Insurance Corporation, or the appropriate State bank supervisory authority for the purposes of this section.’’ Subsec. (e)(1). Pub. L. 106–102, § 116(b), in first sen- tence, substituted ‘‘Financial Institutions Supervisory Page 1252 TITLE 12—BANKS AND BANKING § 1845 Act of 1966, at the election of the bank holding com- pany—’’ along with subpar. (A) designation and ‘‘order’’ for ‘‘Financial Institutions Supervisory Act of 1966, order’’ and ‘‘shareholders of the bank holding company; or’’ along with subpar. (B) for ‘‘shareholders of the bank holding company.’’, designated second sentence as concluding provisions, and substituted ‘‘The distribu- tion referred to in subparagraph (A)’’ for ‘‘Such dis- tribution’’. Subsec. (g). Pub. L. 106–102, § 112(a), added subsec. (g). 1978—Subsec. (e). Pub. L. 95–630, § 105(a), added subsec. (e). Subsec. (f). Pub. L. 95–630, § 106(b), added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 354(3) of Pub. L. 111–203 effec- tive on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by section 604(a)–(c)(1) of Pub. L. 111–203 effective on the transfer date, see section 604(j) of Pub. L. 111–203, set out as a note under section 1462 of this title. Amendment by section 616(a) of Pub. L. 111–203 effec- tive on the transfer date, see section 616(e) of Pub. L. 111–203, set out as a note under section 1467a of this title. EFFECTIVE DATE OF 1999 AMENDMENT Amendment by Pub. L. 106–102 effective 120 days after Nov. 12, 1999, see section 161 of Pub. L. 106–102, set out as a note under section 24 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as an Effective Date note under sec- tion 375b of this title. TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which a report required under subsection (d) of this section is listed on page 171), see section 3003 of Pub. L. 104–66, set out as a note under section 1113 of Title 31, Money and Finance. RULE OF CONSTRUCTION REGARDING NO NEW DISCLOSURE REQUIREMENTS Amendment by Pub. L. 117–263 not to be construed to require certain additional information to be collected or disclosed, see section 5864 of Pub. L. 117–263, set out as a note under section 253 of this title. § 1845. Repealed. Pub. L. 89–485, § 9, July 1, 1966, 80 Stat. 240 Section, act May 9, 1956, ch. 240, § 6, 70 Stat. 137, pro- hibited any subsidiary bank from lending to or invest- ing in its parent holding company or a fellow sub- sidiary bank. See section 371c of this title. § 1846. Reservation of rights to States (a) In general No provision of this chapter shall be construed as preventing any State from exercising such powers and jurisdiction which it now has or may hereafter have with respect to companies, banks, bank holding companies, and subsidiaries thereof. (b) State taxation authority not affected No provision of this chapter shall be construed as affecting the authority of any State or polit- ical subdivision of any State to adopt, apply, or administer any tax or method of taxation to any bank, bank holding company, or foreign bank, or any affiliate of any bank, bank holding com- pany, or foreign bank, to the extent that such tax or tax method is otherwise permissible by or under the Constitution of the United States or other Federal law. (May 9, 1956, ch. 240, § 7, 70 Stat. 138; Pub. L. 100–86, title I, § 101(f), Aug. 10, 1987, 101 Stat. 563; Pub. L. 103–328, title I, § 101(b), Sept. 29, 1994, 108 Stat. 2341.) Editorial Notes AMENDMENTS 1994—Pub. L. 103–328 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). 1987—Pub. L. 100–86 substituted ‘‘No provision of this chapter shall’’ for ‘‘The enactment by the Congress of this chapter shall not’’ and inserted ‘‘companies,’’ be- fore ‘‘banks,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–328 effective at end of 1- year period beginning on Sept. 29, 1994, see section 101(e) of Pub. L. 103–328, set out as a note under section 1828 of this title. § 1847. Penalties (a) Criminal penalty (1) Whoever knowingly violates any provi- sion of this chapter or, being a company, vio- lates any regulation or order issued by the Board under this chapter, shall be imprisoned not more than 1 year, fined not more than $100,000 per day for each day during which the violation continues, or both. (2) Whoever, with the intent to deceive, de- fraud, or profit significantly, knowingly vio- lates any provision of this chapter shall be im- prisoned not more than 5 years, fined not more than $1,000,000 per day for each day during which the violation continues, or both. Every officer, director, agent, and employee of a bank holding company shall be subject to the same penalties for false entries in any book, re- port, or statement of such bank holding com- pany as are applicable to officers, directors, agents, and employees of member banks for false entries in any books, reports, or statements of member banks under section 1005 of title 18. (b) Civil money penalty (1) Penalty Any company which violates, and any indi- vidual who participates in a violation of, any provision of this chapter, or any regulation or order issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation con- tinues. (2) Assessment; etc. Any penalty imposed under paragraph (1) may be assessed and collected by the Board in the manner provided in subparagraphs (E), (F), (G), and (I) of section 1818(i)(2) of this title for penalties imposed (under such section) and