12 U.S.C. § 1814 — Insured depository institutions

Page 975 TITLE 12—BANKS AND BANKING § 1814 EFFECTIVE DATE OF 1966 AMENDMENT Pub. L. 89–695, title III, §§ 301(e), Oct. 16, 1966, 80 Stat. 1055, provided that: ‘‘The amendments made by this section [amending this section and sections 1817 and 1821 of this title] shall not be applicable to any claim arising out of the closing of a bank where such closing is prior to the date of enactment of this Act [Oct. 16, 1966].’’ EXPIRATION OF 1966 AMENDMENT Pub. L. 91–609, title IX, § 908, Dec. 31, 1970, 84 Stat. 1811, repealed section 401 of Pub. L. 89–695 which had provided that: ‘‘The provisions of titles I and II of this Act [amending this section and sections 1464, 1730, 1817 to 1820 of this title, repealing section 77 of this title, and enacting provisions set out as notes under this sec- tion and sections 1464 and 1730 of this title] and any provisions of law enacted by said titles shall be effec- tive only during the period ending at the close of June 30, 1972. Effective upon the expiration of such period, each provision of law amended by either of such titles is further amended to read as it did immediately prior to the enactment of this Act [Oct. 16, 1966] and each provision of law repealed by either of such titles is re- enacted’’. EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86–671 effective Jan. 1, 1961, see section 7 of Pub. L. 86–671, set out as a note under section 1817 of this title. CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED, MODIFIED, OR AFFECTED Pub. L. 89–695, title II, § 206, Oct. 16, 1966, 80 Stat. 1055, provided that: ‘‘Nothing contained in this title [amend- ing this section and sections 1817 to 1820 of this title and repealing section 77 of this title] shall be construed to repeal, modify, or affect the provisions of section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829).’’ Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. § 1814. Insured depository institutions (a) Continuation of insurance (1) Banks Each bank, which is an insured depository institution on September 21, 1950, shall be and continue to be, without application or ap- proval, an insured depository institution and shall be subject to the provisions of this chap- ter. (2) Savings associations Each savings association the accounts of which were insured by the Federal Savings and Loan Insurance Corporation on the day before August 9, 1989, shall be, without application or approval, an insured depository institution. (b) Continuation of insurance upon becoming a member bank In the case of an insured bank which is admit- ted to membership in the Federal Reserve Sys- tem or an insured State bank which is converted into a national member bank, the bank shall continue as an insured bank. (c) Continuation of insurance after conversion Subject to section 1815(d) of this title and sec- tion 1464(i)(5) of this title— (1) any State depository institution which results from the conversion of any insured Federal depository institution; and (2) any Federal depository institution which results from the conversion of any insured State or Federal depository institution, shall continue as an insured depository institu- tion. (d) Continuation of insurance after merger or consolidation Any State depository institution or any Fed- eral depository institution which results from the merger or consolidation of insured deposi- tory institutions, or from the merger or consoli- dation of a noninsured depository institution with an insured depository institution, shall continue as an insured depository institution. (Sept. 21, 1950, ch. 967, § 2[4], 64 Stat. 875; Pub. L. 97–320, title I, § 113(c), Oct. 15, 1982, 96 Stat. 1473; Pub. L. 101–73, title II, §§ 201(a), 205, Aug. 9, 1989, 103 Stat. 187, 194; Pub. L. 102–242, title I, § 115(b), Dec. 19, 1991, 105 Stat. 2249; Pub. L. 102–550, title XVI, § 1603(b)(6), Oct. 28, 1992, 106 Stat. 4079; Pub. L. 109–351, title VI, § 608(b), Oct. 13, 2006, 120 Stat. 1983.) Editorial Notes PRIOR PROVISIONS Section is derived from subsec. (e) of former section 264 of this title. See Codification note set out under section 1811 of this title. AMENDMENTS 2006—Subsec. (c). Pub. L. 109–351, § 608(b)(1), inserted ‘‘and section 1464(i)(5) of this title’’ after ‘‘section 1815(d) of this title’’ in introductory provisions. Subsec. (c)(2). Pub. L. 109–351, § 608(b)(2), which di- rected insertion of ‘‘or Federal’’ after ‘‘insured State,’’, was executed by making the insertion after ‘‘insured State’’, to reflect the probable intent of Congress. 1992—Subsec. (b). Pub. L. 102–550 amended directory language of Pub. L. 102–242, § 115(b). See 1991 Amend- ment note below. 1991—Subsec. (b). Pub. L. 102–242, § 115(b), as amended by Pub. L. 102–550, § 1603(b)(6), amended subsec. (b) gen- erally, substituting present provisions for provisions which related to certification by other banking agen- cies. 1989—Pub. L. 101–73, § 201(a), substituted references to insured depository institutions for references to in- sured banks wherever appearing. Subsec. (a). Pub. L. 101–73, § 205(1), inserted heading, designated existing provisions as par. (1), inserted par. (1) heading, and substituted ‘‘Each bank’’ for ‘‘Every bank’’, and added par. (2). Subsec. (b). Pub. L. 101–73, § 205(2)(A), (B), inserted after first sentence ‘‘Any application or notice for membership or to commence or resume business shall be promptly provided by the appropriate Federal bank- ing agency to the Corporation and the Corporation shall have a reasonable period of time to provide com- ments on such application or notice. Any comments submitted by the Corporation to the appropriate Fed- eral banking agency shall be considered by such agen- cy.’’ and struck out at end ‘‘A State bank, resulting from the conversion of an insured national bank, shall continue as an insured bank. A State bank, resulting from the merger or consolidation of insured banks, or from the merger or consolidation of a noninsured bank or institution with an insured State bank, shall con- tinue as an insured bank.’’ Pub. L. 101–73, § 205(2)(C), which directed the amend- ment of subsec. (b) by substituting ‘‘(b) CERTIFICATION Page 976 TITLE 12—BANKS AND BANKING § 1815 BY OTHER BANKING AGENCIES.—Every national bank’’ for ‘‘(b) Every national bank’’ could not be executed lit- erally because the original read ‘‘(b) Every national member bank’’, but was executed by inserting the head- ing without changing the text to reflect the probable intent of Congress. Subsec. (c). Pub. L. 101–73, § 205(3), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: ‘‘Every Federal savings bank which is char- tered pursuant to section 1464(o) of this title, and which is engaged in the business of receiving deposits other than trust funds, shall be an insured bank from the time it is authorized to commence business, until such time as its accounts are insured by the Federal Savings and Loan Insurance Corporation.’’ Subsec. (d). Pub. L. 101–73, § 205(3), added subsec. (d). 1982—Subsec. (c). Pub. L. 97–320 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–558 deemed to have be- come effective Mar. 1, 1992, see section 304 of Pub. L. 102–558, set out as a note under section 4502 of Title 50, War and National Defense. § 1815. Deposit insurance (a) Application to Corporation required (1) In general Except as provided in paragraphs (2) and (3), any depository institution which is engaged in the business of receiving deposits other than trust funds (as defined in section 1813(p) of this title), upon application to and examination by the Corporation and approval by the Board of Directors, may become an insured depository institution. (2) Interim depository institutions In the case of any interim Federal deposi- tory institution that is chartered by the ap- propriate Federal banking agency and will not open for business, the depository institution shall be an insured depository institution upon the issuance of the institution’s charter by the agency. (3) Application and approval not required in cases of continued insurance Paragraph (1) shall not apply in the case of any depository institution whose insured sta- tus is continued pursuant to section 1814 of this title. (4) Review requirements In reviewing any application under this sub- section, the Board of Directors shall consider the factors described in section 1816 of this title in determining whether to approve the application for insurance. (5) Notice of denial of application for insur- ance If the Board of Directors votes to deny any application for insurance by any depository institution, the Board of Directors shall promptly notify the appropriate Federal bank- ing agency and, in the case of any State depos- itory institution, the appropriate State bank- ing supervisor of the denial of such applica- tion, giving specific reasons in writing for the Board of Directors’ determination with ref- erence to the factors described in section 1816 of this title. (6) Nondelegation requirement The authority of the Board of Directors to make any determination to deny any applica- tion under this subsection may not be dele- gated by the Board of Directors. (b) Foreign branch nonmember banks; matters considered Subject to the provisions of this chapter and to such terms and conditions as the Board of Di- rectors may impose, any branch of a foreign bank, upon application by the bank to the Cor- poration, and examination by the Corporation of the branch, and approval by the Board of Direc- tors, may become an insured branch. Before ap- proving any such application, the Board of Di- rectors shall give consideration to— (1) the financial history and condition of the bank, (2) the adequacy of its capital structure, (3) its future earnings prospects, (4) the general character and fitness of its management, including but not limited to the management of the branch proposed to be in- sured, (5) the risk presented to the Deposit Insur- ance Fund, (6) the convenience and needs of the commu- nity to be served by the branch, (7) whether or not its corporate powers, inso- far as they will be exercised through the pro- posed insured branch, are consistent with the purposes of this chapter, and (8) the probable adequacy and reliability of information supplied and to be supplied by the bank to the Corporation to enable it to carry out its functions under this chapter. (c) Protection to Deposit Insurance Fund; surety bond, pledge of assets, etc.; injunction (1) Before any branch of a foreign bank be- comes an insured branch, the bank shall deliver to the Corporation or as the Corporation may di- rect a surety bond, a pledge of assets, or both, in such amounts and of such types as the Corpora- tion may require or approve, for the purpose set forth in paragraph (4) of this subsection. (2) After any branch of a foreign bank becomes an insured branch, the bank shall maintain on deposit with the Corporation, or as the Corpora- tion may direct, surety bonds or assets or both, in such amounts and of such types as shall be determined from time to time in accordance with such regulations as the Board of Directors may prescribe. Such regulations may impose dif- fering requirements on the basis of any factors which in the judgment of the Board of Directors are reasonably related to the purpose set forth in paragraph (4). (3) The Corporation may require of any given bank larger deposits of bonds and assets than re- quired under paragraph (2) of this subsection if, in the judgment of the Corporation, the situa- tion of that bank or any branch thereof is or be- comes such that the deposits of bonds and assets otherwise required under this section would not adequately fulfill the purpose set forth in para- graph (4). The imposition of any such additional requirements may be without notice or oppor- tunity for hearing, but the Corporation shall af- ford an opportunity to any such bank to apply