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Title 12 — Banks and BankingRelease 119-73

§1831r Payments on foreign deposits prohibited

Title 12 › Chapter CHAPTER 16— - FEDERAL DEPOSIT INSURANCE CORPORATION › § 1831r

Last updated Apr 6, 2026|Official source

Summary

Stops federal agencies and government-owned corporations — like the FDIC, the Federal Reserve Board, the Resolution Trust Corporation, and others — from giving money, help, guarantees, or transfers to an insured bank if that would, directly or indirectly, pay claims that would be deposits under 12 U.S.C. 1813(l) except for the two narrow exceptions in 1813(l)(5)(A) and (B). The FDIC may still act if its Board of Directors puts in writing that the action does not conflict with section 1823(c). Federal Reserve banks may make advances or extend credit under section 10B of the Federal Reserve Act (12 U.S.C. 347b) if they follow that section’s limits.

Full Legal Text

Title 12, §1831r

Banks and Banking — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, the Corporation, the Board of Governors of the Federal Reserve System, the Resolution Trust Corporation, any other agency, department, and instrumentality of the United States, and any corporation owned or controlled by the United States may not, directly or indirectly, make any payment or provide any assistance, guarantee, or transfer under this chapter or any other provision of law in connection with any insured depository institution which would have the direct or indirect effect of satisfying, in whole or in part, any claim against the institution for obligations of the institution which would constitute deposits as defined in section 1813(l) of this title but for subparagraphs (A) and (B) of section 1813(l)(5) of this title.
(b)Subsection (a) shall not apply to any payment, assistance, guarantee, or transfer made or provided by the Corporation if the Board of Directors determines in writing that such action is not inconsistent with any requirement of section 1823(c) of this title.
(c)No provision of this section shall be construed as prohibiting any Federal Reserve bank from making advances or otherwise extending credit pursuant to the Federal Reserve Act [12 U.S.C. 221 et seq.] to any insured depository institution to the extent that such advance or extension of credit is consistent with the conditions and limitations imposed under section 10B of such Act [12 U.S.C. 347b].

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Reserve Act, referred to in subsec. (c), is act Dec. 23, 1913, ch. 6, 38 Stat. 251, which is classified principally to chapter 3 (§ 221 et seq.) of this title. For complete classification of this Act to the Code, see

References in Text

note set out under section 226 of this title and Tables.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1831r

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73