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

Summary

Insured banks may not make oral or written deals for goods or services if the deal would hurt the bank’s safety or soundness. The agency in charge must make rules and orders to carry out this rule, and regulators can enforce it and require the bank to record the transaction correctly in its books. No private person can sue under this rule. The Attorney General and the Comptroller General must jointly study whether vendors buy stock or assets, invest, or deposit in banks and whether that hurts competition, and report to Congress within one year after August 9, 1989.

Title 12, §1831g

Banks and Banking — Source: USLM XML via OLRC

(a)An insured depository institution may not enter into a written or oral contract with any person to provide goods, products, or services to or for the benefit of such depository institution if the performance of such contract would adversely affect the safety or soundness of the institution.

(b)The Corporation shall prescribe such regulations and issue such orders, including definitions consistent with this section, as may be necessary to administer and carry out the purposes of, and prevent evasions of, this section.

(c)Any action taken by any appropriate Federal banking agency under section 1818 of this title to enforce compliance on the part of any insured depository institution with the requirements of this section may include a requirement that such institution properly reflect the transaction on its books and records.

(d)This section may not be construed as creating any private right of action.

(e)(1)The Attorney General and the Comptroller General of the United States shall jointly conduct a study on the extent to which—

(A)insured depository institutions are entering into contracts with vendors under which the vendors agree to purchase stock or assets from insured depository institutions or to invest capital in or make deposits in such institutions; and

(B)if such practices occur, the extent to which such practices are having an anticompetitive effect and should be prohibited.

(2)Before the end of the 1-year period beginning on August 9, 1989, the Attorney General and the Comptroller General shall submit a report to the Congress on the results of the study conducted pursuant to paragraph (1).

Editorial Notes

Amendments

1994—Subsec. (e)(1)(A). Pub. L. 103–325 substituted “the vendors” for “venders”.

§1831g Contracts Between Depository Institutions and Persons Providing Goods, Products, or Services

Summary

Title 12, §1831g

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata