12 U.S.C. § 1831p — Transferred

Page 1171 TITLE 12—BANKS AND BANKING § 1831p–1 ‘‘(1) DISMISSAL FROM OFFICE.—Section 38(f)(2)(F)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1831o(f)(2)(F)(ii)] (as added by subsection (a)) shall not apply with respect to— ‘‘(A) any director whose current term as a director commenced on or before the date of enactment of this Act [Dec. 19, 1991] and has not been extended— ‘‘(i) after that date of enactment, or ‘‘(ii) to evade section 38(f)(2)(F)(ii); or ‘‘(B) any senior executive officer who accepted em- ployment in his or her current position on or before the date of enactment of this Act and whose contract of employment has not been renewed or renegoti- ated— ‘‘(i) after that date of enactment, or ‘‘(ii) to evade section 38(f)(2)(F)(ii). ‘‘(2) RESTRICTING COMPENSATION.—Section 38(f)(4) of the Federal Deposit Insurance Act [12 U.S.C. 1831o(f)(4)] (as added by subsection (a)) shall not apply with re- spect to any senior executive officer who accepted em- ployment in his or her current position on or before the date of enactment of this Act [Dec. 19, 1991] and whose contract of employment has not been renewed or re- negotiated— ‘‘(A) after that date of enactment, or ‘‘(B) to evade section 38(f)(4).’’ § 1831o–1. Source of strength (a) Holding companies The appropriate Federal banking agency for a bank holding company or savings and loan hold- ing company shall require the bank holding company or savings and loan holding company to serve as a source of financial strength for any subsidiary of the bank holding company or sav- ings and loan holding company that is a deposi- tory institution. (b) Other companies If an insured depository institution is not the subsidiary of a bank holding company or savings and loan holding company, the appropriate Fed- eral banking agency for the insured depository institution shall require any company that di- rectly or indirectly controls the insured deposi- tory institution to serve as a source of financial strength for such institution. (c) Authority of State insurance regulator (1) In general The provisions of section 1844(g) of this title shall apply to a savings and loan holding com- pany that is an insurance company, an affil- iate of an insured depository institution that is an insurance company, and to any other company that is an insurance company and that directly or indirectly controls an insured depository institution, to the same extent as the provisions of that section apply to a bank holding company that is an insurance com- pany. (2) Rule of construction Requiring a bank holding company that is an insurance company, a savings and loan holding company that is an insurance com- pany, an affiliate of an insured depository in- stitution that is an insurance company, or any other company that is an insurance company and that directly or indirectly controls an in- sured depository institution to serve as a source of financial strength under this section shall be deemed an action of the Board that requires a bank holding company to provide funds or other assets to a subsidiary deposi- tory institution for purposes of section 1844(g) of this title. (d) Reports The appropriate Federal banking agency for an insured depository institution described in subsection (b) may, from time to time, require the company, or a company that directly or in- directly controls the insured depository institu- tion, to submit a report, under oath, for the pur- poses of— (1) assessing the ability of such company to comply with the requirement under subsection (b); and (2) enforcing the compliance of such com- pany with the requirement under subsection (b). (e) Rules Not later than 1 year after the transfer date, as defined in section 5411 of this title, the appro- priate Federal banking agencies shall jointly issue final rules to carry out this section. (f) Definition In this section, the term ‘‘source of financial strength’’ means the ability of a company that directly or indirectly owns or controls an in- sured depository institution to provide financial assistance to such insured depository institution in the event of the financial distress of the in- sured depository institution. (Sept. 21, 1950, ch. 967, § 2[38A], as added Pub. L. 111–203, title VI, § 616(d), July 21, 2010, 124 Stat. 1616; amended Pub. L. 114–113, div. O, title VII, § 706(a), Dec. 18, 2015, 129 Stat. 3029.) Editorial Notes AMENDMENTS 2015—Subsecs. (c) to (f). Pub. L. 114–113 added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the transfer date, see section 616(e) of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 1467a of this title. § 1831p. Transferred Editorial Notes CODIFICATION Section, act Sept. 21, 1950, ch. 967, § 2[39], as added Dec. 19, 1991, Pub. L. 102–242, title II, § 228, 105 Stat. 2308, which related to notice of branch closure, was renum- bered section 2[42] of act Sept. 21, 1950, by Pub. L. 102–550, title XI, § 1602(a), Oct. 28, 1992, 106 Stat. 4079, and transferred to section 1831r–1 of this title. § 1831p–1. Standards for safety and soundness (a) Operational and managerial standards Each appropriate Federal banking agency shall, for all insured depository institutions, prescribe— (1) standards relating to— (A) internal controls, information sys- tems, and internal audit systems, in accord- ance with section 1831m of this title;