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Title 12, Banks and BankingRelease 119-110

§1831v Authority of State Insurance Regulator and Securities and Exchange Commission

Title 12 › CHAPTER 16 — FEDERAL DEPOSIT INSURANCE CORPORATION › § 1831v

Last updated Sep 23, 2026|Official source

Summary

Federal banking agencies must follow the same limits that apply to the Federal Reserve Board under sections 1844(c), 1844(g), and 1848a when dealing with a depository institution’s functionally regulated affiliates. That means an agency cannot force reports, order exams, demand capital or other funds, or take other direct or indirect actions against those affiliates except under the same rules and standards that restrict the Board. The Corporation may still examine an affiliate if it needs to check a depository institution’s condition for insurance purposes under section 1820(b)(4). Definitions: Functionally regulated subsidiary — see section 1844(c)(5) for its meaning. Functionally regulated affiliate — an affiliate that is not a depository institution holding company and that fits the description in section 1844(c)(5)(B).

Full Legal Text

Title 12, §1831v

Banks and Banking, Source: USLM XML via OLRC

(a)In general
Notwithstanding any other provision of law, the provisions of— (1)
(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 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;
shall also limit whatever authority that a Federal banking agency might otherwise have under any statute or regulation to require reports, make examinations, impose capital requirements, or take any other direct or indirect action with respect to any functionally regulated affiliate of a depository institution, subject to the same standards and requirements as are applicable to the Board under those provisions.
(b)Certain exemption authorized
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)Definitions
For purposes of this section, the following definitions shall apply:
(1)Functionally regulated subsidiary
The term “functionally regulated subsidiary” has the meaning given the term in section 1844(c)(5) of this title.
(2)Functionally regulated affiliate
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.

Legislative History

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1831v

Title 12, Banks and Banking

Last Updated

Sep 23, 2026

Release point: 119-110