§1831v — Title 12 Banks and Banking | U.S. Code

Summary

Overrides some limits in other laws so the Federal Reserve’s powers over holding companies and their regulated subsidiaries are not controlled by those limits. The limits named are in section 1844(c) (limits on reports, exams, capital rules, and deferring to other regulators), section 1844(g) (limits on forcing a regulated subsidiary to send funds to a bank or forcing a sale), and section 1848a (limits on taking direct or indirect action with holding companies and their regulated subsidiaries). The federal deposit insurance agency (the Corporation) may examine an affiliate of a bank when it needs to check the bank’s condition for insurance under section 1820(b)(4). That exam can look at how the affiliate and the bank are linked and how the link affects the bank. The terms used: “functionally regulated subsidiary” (see section 1844(c)(5)) and “functionally regulated affiliate” (an affiliate that is not a depository institution holding company and fits the types listed in section 1844(c)(5)(B)).

Title 12, §1831v

Banks and Banking — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, the provisions of—

(1)section 1844(c) of this title that limit the authority of the Board of Governors of the Federal Reserve System to require reports from, to make examinations of, or to impose capital requirements on holding companies and their functionally regulated subsidiaries or that require deference to other regulators;

(2)section 1844(g) of this title that limit the authority of the Board to require a functionally regulated subsidiary of a holding company to provide capital or other funds or assets to a depository institution subsidiary of the holding company and to take certain actions including requiring divestiture of the depository institution; and

(3)section 1848a 11 See References in Text note below. of this title that limit whatever authority the Board might otherwise have to take direct or indirect action with respect to holding companies and their functionally regulated subsidiaries;

(b)No provision of this section shall be construed as preventing the Corporation, if the Corporation finds it necessary to determine the condition of a depository institution for insurance purposes, from examining an affiliate of any depository institution, pursuant to section 1820(b)(4) of this title, as may be necessary to disclose fully the relationship between the depository institution and the affiliate, and the effect of such relationship on the depository institution.

(c)For purposes of this section, the following definitions shall apply:

(1)The term “functionally regulated subsidiary” has the meaning given the term in section 1844(c)(5) of this title.

(2)The term “functionally regulated affiliate” means, with respect to any depository institution, any affiliate of such depository institution that is—

(A)not a depository institution holding company; and

(B)a company described in any clause of section 1844(c)(5)(B) of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1848a of this title, referred to in subsec. (a)(3), was repealed by Pub. L. 111–203, title VI, § 604(c)(2), July 21, 2010, 124 Stat. 1601.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 120 days after Nov. 12, 1999, see section 161 of Pub. L. 106–102, set out as an

Effective Date

of 1999 Amendment note under section 24 of this title.

§1831v Authority of State insurance regulator and Securities and Exchange Commission

Summary

Title 12, §1831v

Notes & Related Subsidiaries

Editorial Notes

References in Text

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata