1 So in original. Probably should be “an”.
insured depository institution described in subparagraph (B) with another insured depository institution or the sale of any or all of the assets of such insured depository institution or the assumption of any or all of such insured depository institution’s liabilities by another insured depository institution, or the acquisition of the stock of such insured depository institution, the Corporation is authorized, in its sole discretion and upon such terms and conditions as the Board of Directors may prescribe—
2 So in original. Probably should be followed by “or”.
savings association or out-of-State holding company for which the Corporation provides assistance under subsection (c).
3 See References in Text note below.
of this title shall not apply to prohibit any acquisition under paragraph (2) or (3), except that an out-of-State bank may make such an acquisition only if such ownership is otherwise specifically authorized.
Editorial Notes
References in Text

Section 1730a of this title, referred to in subsec. (f)(4)(A), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.

The Depository Institution Management Interlocks Act, referred to in subsec. (k)(1)(A)(v), is title II of Pub. L. 95–630, Nov. 10, 1978, 92 Stat. 3672, which is classified principally to chapter 33 (§ 3201 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3201 of this title and Tables.

Prior Provisions

Section is derived from subsec. (n) of former section 264 of this title. See Codification note set out under section 1811 of this title.

Amendments

2010—Subsec. (c)(4)(G)(i). Pub. L. 111–203, § 1106(b)(1)(B), inserted “for the purpose of winding up the insured depository institution for which the Corporation has been appointed receiver” after “provide assistance under this section” in concluding provisions.

Subsec. (c)(4)(G)(i)(I). Pub. L. 111–203, § 1106(b)(1)(A), inserted “for which the Corporation has been appointed receiver” before “would have serious”.

Subsec. (c)(4)(G)(v)(I). Pub. L. 111–203, § 1106(b)(2), substituted “Not later than 3 days after making a determination under clause (i), the” for “The”.

Subsec. (k)(1)(A)(iv). Pub. L. 111–203, § 363(6), substituted “Comptroller of the Currency” for “Director of the Office of Thrift Supervision”.

2009—Subsec. (c)(4)(G)(ii). Pub. L. 111–22 amended cl. (ii) generally. Prior to amendment, text read as follows: “The Corporation shall recover the loss to the Deposit Insurance Fund arising from any action taken or assistance provided with respect to an insured depository institution under clause (i) expeditiously from 1 or more emergency special assessments on insured depository institutions equal to the product of—

“(I) an assessment rate established by the Corporation; and

“(II) the amount of each insured depository institution’s average total assets during the assessment period, minus the sum of the amount of the institution’s average total tangible equity and the amount of the institution’s average total subordinated debt.”

2008—Subsec. (c)(11). Pub. L. 110–343 added par. (11).

2006—Subsec. (a)(1). Pub. L. 109–173, § 8(a)(19)(B), substituted “Deposit Insurance Fund” for “Bank Insurance Fund, the Savings Association Insurance Fund,”.

Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(M)(i). See 1996 Amendment note below.

Subsec. (c)(4)(A)(ii), (B). Pub. L. 109–173, § 8(a)(19)(A), substituted “Deposit Insurance Fund” for “deposit insurance fund” wherever appearing.

Subsec. (c)(4)(E). Pub. L. 109–173, § 8(a)(19)(C)(i), substituted “fund” for “funds” in heading.

Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(M)(ii). See 1996 Amendment note below.

Subsec. (c)(4)(E)(i). Pub. L. 109–173, § 8(a)(19)(C)(ii), substituted “the Deposit Insurance Fund” for “any insurance fund” in introductory provisions.

Subsec. (c)(4)(G)(ii). Pub. L. 109–173, § 8(a)(19)(D)(i), (ii), in introductory provisions, substituted “Deposit Insurance Fund” for “appropriate insurance fund” and “insured depository institutions” for “the members of the insurance fund (of which such institution is a member)”.

Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(M)(iii). See 1996 Amendment note below.

Subsec. (c)(4)(G)(ii)(II). Pub. L. 109–173, § 8(a)(19)(D)(iii), (iv), substituted “the institution’s” for “the member’s” in two places and substituted “each insured depository institution’s” for “each member’s”.

Pub. L. 109–173, § 3(a)(8), substituted “assessment period” for “semiannual period”.

Subsec. (c)(11). Pub. L. 109–173, § 8(a)(19)(E), struck out par. (11) which read as follows: “Payments made under this subsection shall be made—

“(A) from the Bank Insurance Fund in the case of payments to or on behalf of a member of such Fund; or

“(B) from the Savings Association Insurance Fund or from funds made available by the Resolution Trust Corporation in the case of payments to or on behalf of any Savings Association Insurance Fund member.”

Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(M)(iv). See 1996 Amendment note below.

Subsec. (h). Pub. L. 109–173, § 8(a)(19)(F), substituted “Deposit Insurance Fund” for “Bank Insurance Fund”.

Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(M)(v). See 1996 Amendment note below.

Subsec. (k)(4)(B)(i). Pub. L. 109–173, § 8(a)(19)(G), substituted “savings association is” for “Savings Association Insurance Fund member is” in concluding provisions.

Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(M)(vi). See 1996 Amendment note below.

Subsec. (k)(5)(A). Pub. L. 109–173, § 8(a)(19)(H), substituted “savings associations” for “Savings Association Insurance Fund members” in introductory provisions.

Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(14)(M)(vii). See 1996 Amendment note below.

2005—Subsec. (e)(2). Pub. L. 109–8 amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “An agreement to provide for the lawful collateralization of deposits of a Federal, State, or local governmental entity or of any depositor referred to in section 1821(a)(2) of this title shall not be deemed to be invalid pursuant to paragraph (1)(B) solely because such agreement was not executed contemporaneously with the acquisition of the collateral or with any changes in the collateral made in accordance with such agreement.”

1996—Subsec. (a)(1). Pub. L. 104–208, § 2704(d)(14)(M)(i), which directed substitution of “Deposit Insurance Fund, the Special Reserve of the Deposit Insurance Fund,” for “Bank Insurance Fund, the Savings Association Insurance Fund,”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

Subsec. (c)(4)(E). Pub. L. 104–208, § 2704(d)(14)(M)(ii), which directed substitution of “fund” for “funds” in heading and “the Deposit Insurance Fund” for “any insurance fund” in cl. (i), was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

Subsec. (c)(4)(G)(ii). Pub. L. 104–208, § 2704(d)(14)(M)(iii), which directed substitution of “Deposit Insurance Fund” for “appropriate insurance fund”, “insured depository institutions” for “the members of the insurance fund (of which such institution is a member)”, “each insured depository institution’s” for “each member’s”, and “the institution’s” for “the member’s” in two places, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

Subsec. (c)(11). Pub. L. 104–208, § 2704(d)(14)(M)(iv), which directed striking out par. (11), was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

Subsec. (h). Pub. L. 104–208, § 2704(d)(14)(M)(v), which directed substitution of “Deposit Insurance Fund” for “Bank Insurance Fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

Subsec. (k)(4)(B)(i). Pub. L. 104–208, § 2704(d)(14)(M)(vi), which directed substitution of “Deposit Insurance Fund” for “Savings Association Insurance Fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

Subsec. (k)(5)(A). Pub. L. 104–208, § 2704(d)(14)(M)(vii), which directed substitution of “Deposit Insurance Fund” for “Savings Association Insurance Fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

1994—Subsec. (c)(1)(B). Pub. L. 103–325, § 602(a)(34), substituted “an insured bank in default” for “a in default insured bank” and “such insured bank” for “such in default insured bank”.

Subsec. (c)(2)(A). Pub. L. 103–325, § 602(a)(35), substituted “with another insured depository institution” for “with an insured institution” and “by another depository institution” for “by an insured institution”.

Subsec. (e). Pub. L. 103–325, § 317, designated existing provisions as par. (1) and inserted heading, redesignated former pars. (1) to (4) as subpars. (A) to (D) of par. (1), respectively, and added par. (2).

Subsec. (f)(2)(B)(i). Pub. L. 103–325, § 602(a)(36), substituted “the insured bank in default” for “the in default insured bank”.

Subsec. (f)(2)(B)(iii). Pub. L. 103–325, § 602(a)(37), substituted “of” for “of of” after “percent”.

Subsec. (f)(3). Pub. L. 103–325, § 602(a)(38), substituted “default” for “closing” in heading.

Subsec. (f)(6)(A). Pub. L. 103–325, § 602(a)(39), substituted “bank that is in default” for “bank that has in default”.

Subsec. (f)(6)(B)(i). Pub. L. 103–325, § 602(a)(40), inserted period for semicolon at end.

Subsec. (f)(7)(A), (B). Pub. L. 103–325, § 602(a)(41), struck out “or” at end of subpar. (A) and substituted “; or” for period at end of subpar. (B).

Subsec. (f)(12)(A). Pub. L. 103–325, § 602(a)(42), substituted “are” for “is”.

1991—Subsec. (c)(4) to (10). Pub. L. 102–242, § 141(a)(1), (e), redesignated former pars. (5) to (9) as (6) to (10), respectively, redesignated subpar. (B) of par. (4) as par. (5), amended par. (4)(A) generally and redesignated it as par. (4), further redesignated pars. (8) to (10) as (9) to (11), respectively, and added par. (8). Prior to amendment, par. (4)(A) read as follows: “No assistance shall be provided under this subsection in an amount in excess of that amount which the Corporation determines to be reasonably necessary to save the cost of liquidating, including paying the insured accounts of, such insured depository institution, except that such restriction shall not apply in any case in which the Corporation determines that the continued operation of such insured depository institution is essential to provide adequate depository services in its community. In calculating the cost of assistance, the Corporation shall include (i) the immediate and long-term obligations of the Corporation with respect to such assistance, including contingent liabilities, and (ii) the Federal tax revenues foregone by the Government, to the extent reasonably ascertainable.”

Subsec. (d)(3)(D). Pub. L. 102–242, § 123(b), added subpar. (D).

1989—Subsec. (a). Pub. L. 101–73, § 217(1), added heading and text of subsec. (a) and struck out former subsec. (a) which read as follows: “Money of the Corporation not otherwise employed shall be invested in obligations of the United States or in obligations guaranteed as to principal and interest by the United States: Provided, That the Corporation shall not sell or purchase any such obligations for its own account and in its own right and interest, at any one time aggregating in excess of $100,000, without the approval of the Secretary of the Treasury: And provided further, That the Secretary of the Treasury may waive the requirement of his approval with respect to any transaction or classes of transactions subject to the provisions of this subsection for such period of time and under such conditions as he may determine.”

Subsec. (b). Pub. L. 101–73, § 217(2), substituted “depository accounts of the Corporation”, “temporary purposes of depository accounts”, and “depository accounts to facilitate” for “banking or checking accounts of the Corporation”, “temporary purposes of banking and checking accounts”, and “banking and checking accounts to facilitate”, respectively, and substituted “depository institution” for “bank” in four places.

Pub. L. 101–73, § 201(a), substituted “insured depository institutions” for “insured banks”.

Subsec. (c)(1). Pub. L. 101–73, § 201(a), substituted reference to insured depository institution for reference to insured bank in introductory provisions.

Subsec. (c)(1)(A). Pub. L. 101–73, § 217(3)(A), substituted “default” for “closing”.

Pub. L. 101–73, § 201(a), substituted reference to insured depository institution for reference to insured bank.

Subsec. (c)(1)(B). Pub. L. 101–73, § 217(3)(C), which directed the amendment of subsec. (c) by substituting “insured depository institution in default” for “in default insured depository institution” wherever appearing, could not be executed because phrase “in default insured depository institution” did not appear in text.

Pub. L. 101–73, § 217(3)(B), which directed the amendment of subsec. (c) by substituting “a” for “an” wherever appearing before “closed insured bank”, could not be executed because “an” did not appear before “closed insured bank” in text.

Pub. L. 101–73, § 217(3)(A), substituted “in default” for “closed” in two places.

Subsec. (c)(1)(C). Pub. L. 101–73, § 201(a), substituted references to insured depository institutions for references to insured banks wherever appearing.

Subsec. (c)(2)(A). Pub. L. 101–73, § 217(3)(D)(i), substituted “such other insured depository institution” for “such insured institution” wherever appearing in cls. (ii) and (iii) and “another insured depository institution” for “an insured depository institution” in introductory provisions.

Pub. L. 101–73, § 217(3)(D)(ii), (iii), in introductory provisions, substituted “the sale of any or all of the assets” for “the sale of assets” and “or the assumption of any or all” for “and the assumption”.

Pub. L. 101–73, § 201(a), substituted “insured depository institution” and “insured depository institution’s” for “insured bank” and “insured bank’s” wherever appearing.

Subsec. (c)(2)(B). Pub. L. 101–73, § 217(3)(A), substituted “in default” for “closed” in cl. (i) and “default” for “closing” in cl. (ii).

Pub. L. 101–73, § 201(a), substituted references to insured depository institutions for references to insured banks wherever appearing.

Subsec. (c)(2)(C). Pub. L. 101–73, § 217(3)(E), added subpar. (C).

Subsec. (c)(3). Pub. L. 101–73, § 217(3)(F), substituted “subsection (f) or (k) of this section” for “subsection (f) of this section”.

Pub. L. 101–73, § 201(a), substituted reference to insured depository institution for reference to insured bank.

Subsec. (c)(4)(A). Pub. L. 101–73, § 217(3)(G), substituted “depository services” for “banking services” and inserted sentence at end relating to calculation of the cost of assistance.

Pub. L. 101–73, § 201(a), substituted references to insured depository institutions for references to insured banks wherever appearing.

Subsec. (c)(4)(B). Pub. L. 101–73, § 201(a), substituted reference to insured depository institution for reference to insured bank.

Subsec. (c)(5). Pub. L. 101–73, § 201(a), substituted references to insured depository institutions for references to insured banks wherever appearing.

Subsec. (c)(6). Pub. L. 101–73, § 217(3)(J), added par. (6). Former par. (6) redesignated (7).

Subsec. (c)(7). Pub. L. 101–73, § 217(3)(I), redesignated par. (6) as (7). Former par. (7) redesignated (8).

Subsec. (c)(8). Pub. L. 101–73, § 217(3)(H), (I), redesignated par. (7) as (8) and struck out former par. (8) which read as follows: “For purposes of this subsection, the term ‘insured institution’ means an insured bank as defined in section 1813 of this title or an insured institution as defined in section 1724 of this title.”

Subsec. (c)(9). Pub. L. 101–73, § 217(3)(K), added par. (9).

Subsec. (d). Pub. L. 101–73, § 217(4), added subsec. (d) and struck out former subsec. (d), changing the structure of the subsection from a single unnumbered paragraph to one consisting of four numbered paragraphs.

Subsec. (e). Pub. L. 101–73, § 217(4), added subsec. (e) and struck out former subsec. (e) which read as follows: “No agreement which tends to diminish or defeat the right, title or interest of the Corporation in any asset acquired by it under this section, either as security for a loan or by purchase, shall be valid against the Corporation unless such agreement (1) shall be in writing, (2) shall have been executed by the bank and the person or persons claiming an adverse interest thereunder, including the obligor, contemporaneously with the acquisition of the asset by the bank, (3) shall have been approved by the board of directors of the bank or its loan committee, which approval shall be reflected in the minutes of said board or committee, and (4) shall have been, continuously, from the time of its execution, an official record of the bank.”

Subsec. (f)(1). Pub. L. 101–73, § 217(5)(C), inserted “savings association” after “out-of-State bank”.

Subsec. (f)(2)(A). Pub. L. 101–73, § 217(5)(A), (B), substituted “is in default” for “is closed”, and “bank in default” for “closed bank” in three places.

Subsec. (f)(2)(B). Pub. L. 101–73, § 217(5)(A), (D), substituted “in default insured bank” for “closed insured bank” in cl. (i), and “a vote of 75 percent of” for “a unanimous vote” in cl. (iii).

Subsec. (f)(3)(A)(i), (ii), (C), (E). Pub. L. 101–73, § 217(5)(A), substituted “danger of default” for “danger of closing”.

Subsec. (f)(4)(A). Pub. L. 101–73, § 217(5)(E), struck out “the constitution of any State,” after “State law,”.

Subsec. (f)(5). Pub. L. 101–73, § 217(5)(A), (B), substituted “danger of default” for “danger of closing” and “bank in default” for “closed bank”.

Subsec. (f)(6)(A). Pub. L. 101–73, § 217(5)(A), (F), substituted “the bank that has in default or is in danger of default” for “the bank that has closed or is in danger of closing” and “the Corporation shall permit the offeror which made the initial lowest acceptable offer and” for “the Corporation shall permit”.

Subsec. (f)(7)(C). Pub. L. 101–73, § 217(5)(G), added subpar. (C).

Subsec. (f)(8)(A). Pub. L. 101–73, § 217(5)(H), redesignated subpar. (C) as (A) and struck out former subpar. (A) which read as follows: “the term ‘receiver’ means the Corporation when it has been appointed the receiver of a closed insured bank;”.

Pub. L. 101–73, § 217(5)(A), (B), substituted “danger of default” for “danger of closing” in two places and “bank in default” for “closed bank” in two places.

Subsec. (f)(8)(B). Pub. L. 101–73, § 217(5)(H), redesignated subpar. (E) as (B) and struck out former subpar. (B) which read as follows: “the term ‘insured depository institution’ means an insured bank or an association or savings bank insured by the Federal Savings and Loan Insurance Corporation;”.

Subsec. (f)(8)(C). Pub. L. 101–73, § 217(5)(H), redesignated subpar. (F) as (C). Former subpar. (C) redesignated (A).

Subsec. (f)(8)(D). Pub. L. 101–73, § 217(5)(H), redesignated subpar. (G) as (D) and struck out former subpar. (D) which read as follows: “the term ‘bank in danger of closing’ means an insured bank with respect to which the appropriate Federal or State chartering authority certifies in writing that—

“(i)(I) the bank is not likely to be able to meet the demands of such bank’s depositors or pay the obligations of the bank in the normal course of business, and

“(II) there is no reasonable prospect that the bank will be able to meet such demands or pay such obligations without Federal assistance; or

“(ii)(I) the bank has incurred or is likely to incur losses that will deplete all or substantially all of the capital of the bank, and

“(II) there is no reasonable prospect for the replenishment of the bank’s capital without Federal assistance;”.

Subsec. (f)(8)(E) to (G). Pub. L. 101–73, § 217(5)(H), redesignated subpars. (E) to (G) as (B) to (D), respectively.

Subsec. (f)(9). Pub. L. 101–73, § 217(5)(I), substituted “certain subsidiaries” for “nonbank subsidiaries” in heading, “subsidiary, other than a subsidiary that is an insured depository institution,” for “subsidiary” and “holding company” for “holding company which is not an insured bank” in subpar. (A), and “intermediate holding company or an affiliate of an insured depository institution” for “intermediate holding company” in subpar. (B).

Subsec. (f)(12). Pub. L. 101–73, § 217(5)(J), added par. (12).

Subsec. (h). Pub. L. 101–73, § 217(6), substituted “an insured depository institution in default” for “a closed insured depository institution”, “default” for “closing”, and “Bank Insurance Fund” for “insurance fund”.

Pub. L. 101–73, § 201(a), substituted “insured depository institution” for “insured bank” wherever appearing.

Subsec. (i)(1)(A). Pub. L. 101–73, § 217(7)(A), inserted “depository” before “institution” in three places.

Subsec. (i)(1)(C). Pub. L. 101–73, § 217(7)(B), substituted “Corporation” for “corporation” where first appearing, “chartered depository institution” for “chartered bank”, “State member bank, a savings association,” for “State member bank”, and “Federal Reserve System or the Director of the Office of Thrift Supervision” for “Federal Reserve System”.

Subsec. (i)(1)(D). Pub. L. 101–73, § 217(7)(A), inserted “depository” before “institution” in two places.

Subsec. (i)(2). Pub. L. 101–73, § 217(7)(A), (C), inserted “depository” before “institution” in two places, and struck out “or insured or guaranteed under State law” after “insured under this chapter”.

Subsec. (i)(3) to (9). Pub. L. 101–73, § 217(7)(A), inserted “depository” before “institution” wherever appearing.

Subsec. (i)(10). Pub. L. 101–73, § 217(7)(D), struck out par. (10) which read as follows: “Notwithstanding any other Federal or State law, net worth certificates purchased by the Corporation under this subsection shall be deemed to be net worth for statutory and regulatory purposes.”

Subsec. (i)(11). Pub. L. 101–73, § 217(7)(A), inserted “depository” before “institution”.

Subsec. (i)(12). Pub. L. 101–73, § 217(7)(D), struck out par. (12) which read as follows: “The Corporation may provide assistance to a qualified institution which is not an insured institution only if the State fund which insures or guarantees the deposits of such qualified institution enters into an agreement with the Corporation which provides that—

“(A) the State fund will indemnify the Corporation for any losses which the Corporation may incur as a result of providing assistance under this subsection to such qualified institution; and

“(B) during any period when such qualified institution has outstanding capital instruments issued in accordance with this subsection, the State insurance fund maintains a level of assessments on its members which results in costs to its members which are at least equivalent to the premium assessments paid to the Corporation by insured institutions during such period.”

Subsec. (i)(13). Pub. L. 101–73, § 217(7)(A), inserted “depository” before “institution” in two places.

Subsec. (k). Pub. L. 101–73, § 217(8), added subsec. (k).

1987—Pub. L. 100–86, § 509(a), repealed Pub. L. 97–320, § 141. See 1982 Amendment notes below.

Subsec. (f)(1). Pub. L. 100–86, § 502(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Nothing contained in paragraph (2) or (3) shall be construed to limit the Corporation’s powers in subsection (c) of this section to assist a transaction under paragraph (2) or (3).”

Subsec. (f)(3). Pub. L. 100–86, § 502(b), amended par. (3) generally, substituting subpars. (A) to (G) relating to emergency interstate acquisitions of insured banks in danger of closing for former subpars. (A) to (C) which authorized merger, purchase of assets, or assumption of liabilities of insured bank organized in mutual form with total assets of $500,000,000 or more upon Corporation’s determination it was in danger of closing.

Subsec. (f)(4). Pub. L. 100–86, § 502(c)(1), redesignated cls. (i) to (iii) as subpars. (A) to (C), amended subpar. (A) generally, and added subpars. (D) and (E). Prior to amendment, subpar. (A), as so redesignated, read as follows: “Notwithstanding section 1842(d) of this title or any other provision of law, State or Federal, or the constitution of any State, an institution that merges with or acquires an insured bank under paragraph (2) or (3) is authorized to be and shall be operated as a subsidiary of an out-of-State bank or bank holding company, except that an out-of-State bank may operate the resulting institution as a subsidiary only if such ownership is otherwise specifically authorized.”

Subsec. (f)(5). Pub. L. 100–86, § 502(i)(1), struck out “to permit” before “an acquisition”.

Subsec. (f)(6)(A). Pub. L. 100–86, § 502(i)(2), substituted “where the bank” for “where the closed bank” and “in-State holding company” for “in-State bank holding company”.

Subsec. (f)(6)(B). Pub. L. 100–86, § 502(c)(2)(A), added cls. (ii) to (vi) and struck out former cls. (ii) to (iv) which read as follows:

“(ii) Second, between depository institutions of the same type in different States;

“(iii) Third, between depository institutions of different types in the same State; and

“(iv) Fourth, between depository institutions of different types in different States.”

Subsec. (f)(6)(C). Pub. L. 100–86, § 502(c)(2)(B), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “In considering offers from different States, the Corporation shall give a priority to offers from adjoining States.”

Subsec. (f)(8)(D) to (G). Pub. L. 100–86, § 502(d)–(g), added subpars. (D) to (G).

Subsec. (f)(9) to (11). Pub. L. 100–86, § 502(c)(3)–(5), added pars. (9) to (11).

Subsec. (j). Pub. L. 100–86, § 801, added subsec. (j).

1983—Subsec. (i)(1)(D). Pub. L. 98–29 inserted provision that issuance of net worth certificates in accordance with this subsection shall not constitute a default under the terms of any debt obligations subordinated to the claims of general creditors which were outstanding when such net worth certificates were issued.

1983—Subsec. (c)(5)(A). Pub. L. 97–457, § 1(a), inserted “or dividends” after “interest”.

Subsec. (f)(1). Pub. L. 97–457, § 4, substituted “paragraph” for “paragraphs” wherever appearing.

Subsec. (i)(9). Pub. L. 97–457, § 10, inserted “or dividends” after “interest”.

1982—Subsec. (c). Pub. L. 97–320, § 111, substituted provisions contained in numbered pars. (1) through (8) relating to the Corporation’s authority to assist insured banks for prior provisions contained in a single undesignated paragraph authorizing the Corporation, in order to reopen a closed insured bank or, when the Corporation had determined that an insured bank was in danger of closing, in order to prevent such closing, in the discretion of its Board of Directors, to make loans to, or purchase the assets of, or make deposits in, such insured bank, upon such terms and conditions as the Board of Directors might prescribe, when in the opinion of the Board of Directors the continued operation of such bank was essential to provide adequate banking service in the community, with such loans and deposits to be in subordination to the rights of depositors and other creditors.

Pub. L. 97–320, § 141(a)(1), which directed the repeal of par. (5) effective Oct. 13, 1986, was repealed by Pub. L. 100–86, § 509(a). See Effective and Termination Dates of 1982 Amendment note and Extension of Emergency Acquisition and Net Worth Guarantee Provisions of Pub. L. 97–320 note set out under section 1464 of this title.

Subsec. (e). Pub. L. 97–320, § 113(m)(2), inserted “(e)” before “No agreement” and struck out provision authorizing the Board of Directors, for the purpose of averting loss to the Corporation and facilitating a merger of an insured bank or facilitating the sale of an insured bank’s assets and assumption of its liabilities by another insured bank, to make secured loans or to purchase the insured bank’s assets or to guarantee another insured bank against loss by reason of its assuming the liabilities and purchasing the assets of an insured bank, and authorizing national or District banks or the Corporation as receiver thereof to contract for such sales or loans and to pledge assets to secure such loans.

Subsecs. (f) to (h). Pub. L. 97–320, §§ 113(m)(1), 116, added subsec. (f) and redesignated former subsecs. (f) and (g) as (g) and (h), respectively.

Pub. L. 97–320, § 141(a)(3), which directed that, effective Oct. 13, 1986, the provisions of law amended by section 116 of Pub. L. 97–320 shall be amended to read as they would without such amendment, was repealed by Pub. L. 100–86, § 509(a). See Effective and Termination Dates of 1982 Amendment note and Extension of Emergency Acquisition and Net Worth Guarantee Provisions of Pub. L. 97–320 note set out under section 1464 of this title.

Subsec. (i). Pub. L. 97–320, §§ 203, 206, added subsec. (i), relating to net worth certificates, and provided for its prospective repeal. See Effective Date of 1982 Amendment note below.

1978—Subsec. (g). Pub. L. 95–369 added subsec. (g).

Statutory Notes and Related Subsidiaries
Change of Name

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.

Effective Date of 2010 Amendment

Amendment by section 363(6) of Pub. L. 111–203 effective 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 1106(b) of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.

Effective Date of 2006 Amendment

Amendment by section 3(a)(8) of Pub. L. 109–173 effective Jan. 1, 2007, see section 3(b) of Pub. L. 109–173, set out as a note under section 1817 of this title.

Amendment by section 8(a)(19) of Pub. L. 109–173 effective Mar. 31, 2006, see section 8(b) of Pub. L. 109–173, set out as a note under section 1813 of this title.

Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

Effective Date of 2005 Amendment

Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

Effective Date of 1996 Amendment

Amendment by Pub. L. 104–208 effective Jan. 1, 1999, if no insured depository institution is a savings association on that date, see section 2704(c) of Pub. L. 104–208, formerly set out as a note under section 1821 of this title.

Effective Date of 1983 Amendments

Pub. L. 98–29, § 1(b), May 16, 1983, 97 Stat. 189, provided that:

“The amendment made by subsection (a) [amending this section] shall be deemed to have taken effect on the date of enactment of the Garn-St Germain Depository Institutions Act of 1982 [Oct. 15, 1982].”

Pub. L. 97–457, § 1(b), Jan. 12, 1983, 96 Stat. 2507, provided that:

“The amendment made by subsection (a) [amending this section] shall be deemed to have taken effect upon the enactment of Public Law 97–320 [Oct. 15, 1982].”

Pub. L. 97–457, § 10(b), Jan. 12, 1983, 96 Stat. 2508, provided that:

“The amendment made by subsection (a) [amending this section] shall be deemed to have taken effect upon the enactment of Public Law 97–320 [Oct. 15, 1982].”

Effective Date of 1982 Amendment

Pub. L. 97–320, title II, § 206, Oct. 15, 1982, 96 Stat. 1496, as amended by Pub. L. 97–457, § 11, Jan. 12, 1983, 96 Stat. 2508; Pub. L. 99–120, § 6(b), Oct. 8, 1985, 99 Stat. 504; Pub. L. 99–278, § 1(b), Apr. 24, 1986, 100 Stat. 397; Pub. L. 99–400, § 1(b), Aug. 27, 1986, 100 Stat. 902; Pub. L. 99–452, § 1(b), Oct. 8, 1986, 100 Stat. 1140; Pub. L. 100–86, title V, § 509(b), Aug. 10, 1987, 101 Stat. 635, provided that:

“(a) On October 13, 1991, section 406(f)(5) of the National Housing Act [12 U.S.C. 1729(f)(5)] and section 13(i) of the Federal Deposit Insurance Act [12 U.S.C. 1823(i)] are repealed.
“(b) The repeal by subsection (a) shall have no effect on any action taken or authorized pursuant to the amendments made by this title [see Short Title of 1982 Amendments note set out under section 1811 of this title] by or for a qualified institution while such amendments were in effect and while net worth certificates issued pursuant to these amendments are outstanding.”

GAO Compliance Audit

Pub. L. 102–242, title I, § 141(a)(2), Dec. 19, 1991, 105 Stat. 2276, as amended by Pub. L. 104–316, title I, § 106(b), Oct. 19, 1996, 110 Stat. 3830, provided that:

“The Comptroller General of the United States shall audit, under such conditions as the Comptroller General determines to be appropriate, the Federal Deposit Insurance Corporation and the Resolution Trust Corporation to determine the extent to which such corporations are complying with section 13(c)(4) of the Federal Deposit Insurance Act [12 U.S.C. 1823(c)(4)].”

Early Resolution of Troubled Insured Depository Institutions

Pub. L. 102–242, title I, § 143, Dec. 19, 1991, 105 Stat. 2281, provided that:

“(a)
In General.—
It is the sense of the Congress that the Federal banking agencies should facilitate early resolution of troubled insured depository institutions whenever feasible if early resolution would have the least possible long-term cost to the deposit insurance fund, consistent with the least-cost and prompt corrective action provisions of the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.].
“(b)
General Principles.—
In encouraging the Federal banking agencies to pursue early resolution strategies, the Congress contemplates that any resolution transaction under section 13(c) of that Act [12 U.S.C. 1823(c)] would observe the following general principles:
“(1)
Competitive negotiation.—
The transaction should be negotiated competitively, taking into account the value of expediting the process.
“(2)
Resulting institution adequately capitalized.—
Any insured depository institution created or assisted in the transaction (hereafter the ‘resulting institution’) and any institution acquiring the troubled institution should meet all applicable minimum capital standards.
“(3)
Substantial private investment.—
The transaction should involve substantial private investment.
“(4)
Concessions.—
Preexisting owners and debtholders of any troubled institution or its holding company should make substantial concessions.
“(5)
Qualified management.—
Directors and senior management of the resulting institution should be qualified to perform their duties, and should not include individuals substantially responsible for the troubled institution’s problems.
“(6)
FDIC’s participation.—
The transaction should give the Federal Deposit Insurance Corporation an opportunity to participate in the success of the resulting institution.
“(7)
Structure of transaction.—
The transaction should, insofar as practical, be structured so that—
“(A)
the Federal Deposit Insurance Corporation—
“(i) does not acquire a significant proportion of the troubled institution’s problem assets;
“(ii) succeeds to the interests of the troubled institution’s preexisting owners and debtholders in proportion to the assistance the Corporation provides; and
“(iii) limits the Corporation’s assistance in term and amount; and
“(B) new investors share risk with the Corporation.
“(c)
Report.—
Two years after the date of enactment of this Act [Dec. 19, 1991], the Federal Deposit Insurance Corporation shall submit a report to Congress analyzing the effect of early resolution on the deposit insurance funds.”

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, or section 206(a) of Pub. L. 97–320, set out as a note above, 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) or section 206(a) of Pub. L. 97–320, set out as notes under sections 1464 and 1729 of this title, respectively, as in effect on the day before Oct. 8, 1986, 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 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.

Sections 141(a) and 206(a) of Pub. L. 97–320, which are set out as notes under sections 1464 and 1729 of this title, as such sections were in effect on the day after Aug. 27, 1986, applicable as if such sections had been included in Pub. L. 97–320 on Oct. 15, 1982, with no amendment made by any 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.

Annual Reports to Congress by Federal Home Loan Bank Board and Federal Deposit Insurance Corporation on Purchases of Net Worth Certificates

Pub. L. 97–320, title II, § 204, Oct. 15, 1982, 96 Stat. 1495, provided that:

“The Federal Home Loan Bank Board and the Board of Directors of the Federal Deposit Insurance Corporation shall each transmit an annual report to each House of the Congress specifying the types and amounts of net worth certificates purchased from each depository institution and the conditions imposed on each such depository institution.”

[For termination, effective May 15, 2000, of reporting provisions relating to the Federal Deposit Insurance Corporation in section 204 of Pub. L. 97–320, set out above, see section 3003 of Pub. L. 104–66, set out as a note under section 1113 of Title 31, Money and Finance, and page 167 of House Document No. 103–7.]

Semiannual Audit by Comptroller General of Net Worth Certificate Programs of Federal Deposit Insurance Corporation and Federal Home Loan Bank Board

Pub. L. 97–320, title II, § 205, Oct. 15, 1982, 96 Stat. 1495, provided that:

“The Comptroller General of the United States shall conduct on a semiannual basis an audit of the net worth certificate programs of the Federal Deposit Insurance Corporation and the Federal Home Loan Bank Board. A report on each such audit shall be transmitted to each House of the Congress.”

[For termination, effective May 15, 2000, of reporting provisions in section 205 of Pub. L. 97–320, set out above, see section 3003 of Pub. L. 104–66, set out as a note under section 1113 of Title 31, Money and Finance, and page 3 of House Document No. 103–7.]