§3202 — Title 12 Banks and Banking | U.S. Code

Summary

A senior manager or executive of a bank or a bank holding company must not also be a senior manager at a different bank or holding company that is not part of the same company if the two institutions have offices near each other. The rule covers offices in the same metropolitan area (as defined by the Office of Management and Budget) and also offices in the same city, town, or village or in a neighboring one. If a bank has less than $50,000,000 in assets, the metropolitan-area rule does not apply to it. For those smaller banks the restriction only looks at the same city, town, village, or adjacent communities.

Title 12, §3202

Banks and Banking — Source: USLM XML via OLRC

A management official of a depository institution or a depository holding company may not serve as a management official of any other depository institution or depository holding company not affiliated therewith if an office of one of the institutions or any depository institution that is an affiliate of such institutions is located within either—

(1)the same primary metropolitan statistical area, the same metropolitan statistical area, or the same consolidated metropolitan statistical area that is not comprised of designated primary metropolitan statistical areas as defined by the Office of Management and Budget, except in the case of depository institutions with less than $50,000,000 in assets in which case the provision of paragraph (2) shall apply, as that in which an office of the other institution or any depository institution that is an affiliate of such other institution is located, or

(2)the same city, town, or village as that in which an office of the other institution or any depository institution that is an affiliate of such other institution is located, or in any city, town, or village contiguous or adjacent thereto.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Par. (1). Pub. L. 109–351 substituted “$50,000,000” for “$20,000,000”. 1983—Par. (1). Pub. L. 98–181 substituted “primary metropolitan statistical area, the same metropolitan statistical area, or the same consolidated metropolitan statistical area that is not comprised of designated primary metropolitan statistical areas” for “standard metropolitan statistical area”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective upon the expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as a note under section 375b of this title.

§3202 Dual Service of Management Official as Management Official of Unaffiliated Institution or Holding Company in Same Area, Town, or Village Prohibited