12 U.S.C. § 1820a — Examination of investment companies

Page 1039 TITLE 12—BANKS AND BANKING § 1820a EFFECTIVE DATE OF 1992 AMENDMENTS Amendment by section 303(b)(5) of Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see sec- tion 304 of Pub. L. 102–558, set out as a note under sec- tion 4502 of Title 50, War and National Defense. Amendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improve- ment Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, ex- cept that where amendment is to any provision of law added or amended by Pub. L. 102–242 effective after Dec. 19, 1992, then amendment by Pub. L. 102–550 effective on effective date of amendment by Pub. L. 102–242, see sec- tion 1609 of Pub. L. 102–550, set out as a note under sec- tion 191 of this title. EFFECTIVE DATE OF 1991 AMENDMENT Pub. L. 102–242, title I, § 111(b), Dec. 19, 1991, 105 Stat. 2241, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall become effec- tive 1 year after the date of enactment of this Act [Dec. 19, 1991].’’ Amendment by section 302(d) of Pub. L. 102–242 effec- tive on earlier of 180 days after date on which final reg- ulations promulgated in accordance with section 302(c) of Pub. L. 102–242, set out as a note under section 1817 of this title, become effective or Jan. 1, 1994, see section 302(g) of Pub. L. 102–242, set out as a note under section 1817 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective upon expira- tion of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as an Effective Date note under section 375b of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–452 effective on sixtieth day following Oct. 15, 1970, not to affect any immunity to which any individual is entitled under this section by reason of any testimony given before sixtieth day following Oct. 15, 1970, see section 260 of Pub. L. 91–452, set out as an Effective Date; Savings Provision note under section 6001 of Title 18, Crimes and Criminal Pro- cedure. EXPIRATION OF 1966 AMENDMENT Pub. L. 91–609, title IX, § 908, Dec. 31, 1970, 84 Stat. 1811, repealed Pub. L. 89–695, title IV, § 401, Oct. 19, 1966, 80 Stat. 1056, which had provided that: ‘‘The provisions of titles I and II of this Act [amending sections 1464, 1730, 1813, 1817 to 1820 and repealing section 77 of this title and enacting provisions set out as notes under sec- tions 1464, 1730, and 1813 of this title] and any provi- sions of law enacted by said titles shall be effective 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 fur- ther 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 reenacted.’’ 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. EFFECTIVE DATE OF INITIAL GUIDELINES Pub. L. 103–325, title III, § 349(b), Sept. 23, 1994, 108 Stat. 2242, provided that: ‘‘The initial guidelines re- quired to be issued pursuant to the amendment made by subsection (a) [amending this section] shall become effective not later than 1 year after the date of enact- ment of this Act [Sept. 23, 1994].’’ TRANSITION RULE Pub. L. 102–242, title I, § 111(c), Dec. 19, 1991, 105 Stat. 2241, provided that: ‘‘Notwithstanding section 10(d) of the Federal Deposit Insurance Act [12 U.S.C. 1820(d)] (as added by subsection (a)), during the period beginning on the date of enactment of this Act [Dec. 19, 1991] and ending on December 31, 1993, a full-scope, on-site exam- ination of an insured depository institution is not re- quired more often than once during every 18-month pe- riod, unless— ‘‘(1) the institution, when most recently examined, was found to be in a less than satisfactory condition; or ‘‘(2) 1 or more persons acquired control of the insti- tution.’’ CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED, MODIFIED, OR AFFECTED Nothing contained in section 203 of Pub. L. 89–695 amending subsecs. (b) and (c) of this section to be con- strued as repealing, modifying, or affecting section 1829 of this title, see section 206 of Pub. L. 89–695, set out as a note under section 1813 of this title. § 1820a. Examination of investment companies (a) Exclusive Commission authority Except as provided in subsection (c), a Federal banking agency may not inspect or examine any registered investment company that is not a bank holding company or a savings and loan holding company. (b) Examination results and other information The Commission shall provide to any Federal banking agency, upon request, the results of any examination, reports, records, or other informa- tion with respect to any registered investment company to the extent necessary for the agency to carry out its statutory responsibilities. (c) Certain examinations authorized Nothing in this section shall prevent the Cor- poration, if the Corporation finds it necessary to determine the condition of an insured deposi- tory institution for insurance purposes, from ex- amining an affiliate of any insured depository institution, pursuant to its authority under sec- tion 1820(b)(4) of this title, as may be necessary to disclose fully the relationship between the in- sured depository institution and the affiliate, and the effect of such relationship on the in- sured depository institution. (d) Definitions For purposes of this section, the following definitions shall apply: (1) Bank holding company The term ‘‘bank holding company’’ has the meaning given the term in section 1841 of this title. (2) Commission The term ‘‘Commission’’ means the Securi- ties and Exchange Commission. (3) Corporation The term ‘‘Corporation’’ means the Federal Deposit Insurance Corporation. (4) Federal banking agency The term ‘‘Federal banking agency’’ has the meaning given the term in section 1813(z) of this title. (5) Insured depository institution The term ‘‘insured depository institution’’ has the meaning given the term in section 1813(c) of this title. Page 1040 TITLE 12—BANKS AND BANKING § 1821 (6) Registered investment company The term ‘‘registered investment company’’ means an investment company that is reg- istered with the Commission under the Invest- ment Company Act of 1940 [15 U.S.C. 80a–1 et seq.]. (7) Savings and loan holding company The term ‘‘savings and loan holding com- pany’’ has the meaning given the term in sec- tion 1467a(a)(1)(D) of this title. (Pub. L. 106–102, title I, § 115, Nov. 12, 1999, 113 Stat. 1371.) Editorial Notes REFERENCES IN TEXT The Investment Company Act of 1940, referred to in subsec. (d)(6), 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 classification of this Act to the Code, see section 80a–51 of Title 15 and Tables. CODIFICATION Section was enacted as part of the Gramm-Leach-Bli- ley Act, and not as part of the Federal Deposit Insur- ance Act which comprises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days after Nov. 12, 1999, see sec- tion 161 of Pub. L. 106–102, set out as an Effective Date of 1999 Amendment note under section 24 of this title. § 1821. Insurance Funds (a) Deposit insurance (1) Insured amounts payable (A) In general The Corporation shall insure the deposits of all insured depository institutions as pro- vided in this chapter. (B) Net amount of insured deposit The net amount due to any depositor at an insured depository institution shall not ex- ceed the standard maximum deposit insur- ance amount as determined in accordance with subparagraphs (C), (D), (E) and (F) and paragraph (3). (C) Aggregation of deposits For the purpose of determining the net amount due to any depositor under subpara- graph (B), the Corporation shall aggregate the amounts of all deposits in the insured depository institution which are maintained by a depositor in the same capacity and the same right for the benefit of the depositor either in the name of the depositor or in the name of any other person, other than any amount in a trust fund described in para- graph (1) or (2) of section 1817(i) of this title or any funds described in section 1817(i)(3) of this title. (D) Coverage for certain employee benefit plan deposits (i) Pass-through insurance The Corporation shall provide pass- through deposit insurance for the deposits of any employee benefit plan. (ii) Prohibition on acceptance of benefit plan deposits An insured depository institution that is not well capitalized or adequately capital- ized may not accept employee benefit plan deposits. (iii) Definitions For purposes of this subparagraph, the following definitions shall apply: (I) Capital standards The terms ‘‘well capitalized’’ and ‘‘ade- quately capitalized’’ have the same meanings as in section 1831o of this title. (II) Employee benefit plan The term ‘‘employee benefit plan’’ has the same meaning as in paragraph (5)(B)(ii), and includes any eligible de- ferred compensation plan described in section 457 of title 26. (III) Pass-through deposit insurance The term ‘‘pass-through deposit insur- ance’’ means, with respect to an em- ployee benefit plan, deposit insurance coverage based on the interest of each participant, in accordance with regula- tions issued by the Corporation. (E) Standard maximum deposit insurance amount defined For purposes of this chapter, the term ‘‘standard maximum deposit insurance amount’’ means $250,000, adjusted as pro- vided under subparagraph (F) after March 31, 2010. Notwithstanding any other provision of law, the increase in the standard maximum deposit insurance amount to $250,000 shall apply to depositors in any institution for which the Corporation was appointed as re- ceiver or conservator on or after January 1, 2008, and before October 3, 2008. The Corpora- tion shall take such actions as are necessary to carry out the requirements of this section with respect to such depositors, without re- gard to any time limitations under this chapter. In implementing this and the pre- ceding 2 sentences, any payment on a de- posit claim made by the Corporation as re- ceiver or conservator to a depositor above the standard maximum deposit insurance amount in effect at the time of the appoint- ment of the Corporation as receiver or con- servator shall be deemed to be part of the net amount due to the depositor under sub- paragraph (B). (F) Inflation adjustment (i) In general By April 1 of 2010, and the 1st day of each subsequent 5-year period, the Board of Di- rectors and the National Credit Union Ad- ministration Board shall jointly consider the factors set forth under clause (v), and, upon determining that an inflation adjust- ment is appropriate, shall jointly prescribe the amount by which the standard max- imum deposit insurance amount and the standard maximum share insurance amount (as defined in section 1787(k) of