§3204 — Title 12 Banks and Banking | U.S. Code

Summary

The bans in sections 3202 and 3203 do not apply to certain banks, credit unions, and similar companies or their subsidiaries. These exceptions cover institutions that are in liquidation or under a receiver or conservator; banks organized under section 25 or 25(a) of the Federal Reserve Act; a credit union run by a management official from another credit union; institutions that only do business outside the United States (except incidental U.S. activity); a State‑chartered savings and loan guaranty corporation; Federal Home Loan Banks and other banks set up to serve depository institutions; banks that are closed or in danger of closing (as a federal regulator decides) and that are acquired by another bank; certain dual-director situations for a diversified savings and loan holding company where the company gives notice to the appropriate federal regulators and no regulator disapproves within a 60-day period (regulators may disapprove for monopoly or competition harm, serious conflicts of interest or unsafe practices, or for missing information, and may later require ending the dual service if circumstances change); and certain savings associations or savings‑and‑loan holding companies that issued stock in a qualified stock issuance under section 10(q) of the Home Owners’ Loan Act, but only for a single management official and only if the Director of the Office of Thrift Supervision says the service is consistent with this chapter and that Act.

Title 12, §3204

Banks and Banking — Source: USLM XML via OLRC

The prohibitions contained in section 3202 and 3203 of this title shall not apply in the case of any one or more of the following or subsidiary thereof: (1)

(2)A corporation operating under section 25 or 25(a) 11 See References in Text note below. of the Federal Reserve Act [12 U.S.C. 601 et seq., 611 et seq.].

(3)A credit union being served by a management official of another credit union.

(4)A depository institution or depository holding company which does not do business within any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands except as an incident to its activities outside the United States.

(5)A State-chartered savings and loan guaranty corporation.

(6)A Federal Home Loan Bank or any other bank organized specifically to serve depository institutions.

(7)A depository institution or a depository holding company which—

(A)is closed or is in danger of closing, as determined by the appropriate Federal depository institutions regulatory agency in accordance with regulations prescribed by such agency; and

(B)is acquired by another depository institution or depository holding company,

(8)(A)A diversified savings and loan holding company (as defined in section 1730a(a)(1)(F) 1 of this title) with respect to the service of a director of such company who is also a director of any nonaffiliated depository institution or depository holding company (including a savings and loan holding company) if—

(i)notice of the proposed dual service is given by such diversified savings and loan holding company to—

(I)the appropriate Federal depository institutions regulatory agency for such company; and

(II)the appropriate Federal depository institutions regulatory agency for the nonaffiliated depository institution or depository holding company of which such person is also a director,

(ii)the proposed dual service is not disapproved by any such appropriate Federal depository institutions regulatory agency before the end of such 60-day period.

(B)Any appropriate Federal depository institutions regulatory agency may disapprove, under subparagraph (A)(ii), a notice of proposed dual service by any individual if such agency finds that—

(i)the dual service cannot be structured or limited so as to preclude the dual service’s resulting in a monopoly or substantial lessening of competition in financial services in any part of the United States;

(ii)the dual service would lead to substantial conflicts of interest or unsafe or unsound practices; or

(iii)the diversified savings and loan holding company has neglected, failed, or refused to furnish all the information required by such agency.

(C)Any appropriate Federal depository institutions regulatory agency may, at any time after the end of the 60-day period referred to in subparagraph (A), require that any dual service by any individual which was not disapproved by such agency during such period be terminated if a change in circumstances occurs with respect to any depository institution or depository holding company of which such individual is a director that would have provided a basis for disapproval of the dual service during such period.

(9)Any savings association (as defined in section 10(a)(1)(A) of the Home Owners’ Loan Act [12 U.S.C. 1467a(a)(1)(A)] or any savings and loan holding company (as defined in section 10(a)(1)(D) of such Act) which has issued stock in connection with a qualified stock issuance pursuant to section 10(q) of such Act, except that this paragraph shall apply only with respect to service as a single management official of such savings association or holding company, or any subsidiary of such savings association or holding company, by a single management official of the savings and loan holding company which purchased the stock issued in connection with such qualified stock issuance, and shall apply only when the Director of the Office of Thrift Supervision has determined that such service is consistent with the purposes of this chapter and the Home Owners’ Loan Act [12 U.S.C. 1461 et seq.].

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 25 of the Federal Reserve Act, referred to in par. (2), is classified to subchapter I (§ 601 et seq.) of chapter 6 of this title. section 25(a) of the Federal Reserve Act, which is classified to subchapter II (§ 611 et seq.) of chapter 6 of this title, was renumbered section 25A of that act by Pub. L. 102–242, title I, § 142(e)(2), Dec. 19, 1991, 105 Stat. 2281. section 1730a of this title, referred to in par. (8)(A), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363. This chapter, referred to in par. (9), was in the original “this Act” and was translated as reading “this title”, meaning title II of Pub. L. 95–630, known as the Depository Institution Management Interlocks Act, to reflect the probable intent of Congress. The Home Owners’ Loan Act, referred to in par. (9), is act June 13, 1933, ch. 64, 48 Stat. 128, which is classified generally to chapter 12 (§ 1461 et seq.) of this title. For complete classification of this Act to the Code, see section 1461 of this title and Tables.

Amendments

1989—Par. (9). Pub. L. 101–73 added par. (9). 1988—Par. (7). Pub. L. 100–650, § 4, added par. (7). Par. (8). Pub. L. 100–650, § 5(a), added par. (8). 1982—Par. (2). Pub. L. 97–320 substituted “25(a)” for “25A”.

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.

§3204 Exceptions