§3205 — Title 12 Banks and Banking | U.S. Code

Summary

People who began serving as management officials before November 10, 1978, and who were not violating section 19 of title 15 right before that date, may keep serving in that job. The federal agency that oversees their institution can give up to fifteen months to meet the new rules after a change that would otherwise bar their service, but a merger, acquisition, bigger total assets, opening offices, or a change in management duties do not count as such a change. Starting on November 10, 1978, someone who works as a management official for both a non-depository company and a depository institution or depository holding company may continue at the depository if the non-depository company later becomes a diversified savings and loan holding company (see section 1730a(a)).

Title 12, §3205

Banks and Banking — Source: USLM XML via OLRC

(a)A person whose service in a position as a management official began prior to November 10, 1978, and who was not immediately prior to November 10, 1978, in violation of section 19 of title 15 is not prohibited by section 3202 or section 3203 of this title from continuing to serve in that position. The appropriate Federal depository institutions regulatory agency may provide a reasonable period of time for compliance with this chapter, not exceeding fifteen months, after any change in circumstances which makes service described in the preceding sentence prohibited by this chapter, except that a merger, acquisition, increase in total assets, establishment of one or more offices, or change in management responsibilities shall not constitute changes in circumstances which would make such service prohibited by section 3202 or section 3203 of this title.

(b)Effective on November 10, 1978, a person who serves as a management official of a company which is not a depository institution or a depository holding company and as a management official of a depository institution or a depository holding company is not prohibited from continuing to serve as a management official of that depository institution or depository holding company as a result of that company which is not a depository institution or depository holding company becoming a diversified savings and loan holding company as that term is defined in section 1730a(a) 11 See References in Text note below. of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1730a of this title, referred to in subsec. (b), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.

Amendments

1996—Subsec. (a). Pub. L. 104–208, § 2210(b)(1), struck out “for a period of, subject to the requirements of subsection (c) of this section, 20 years after

November 10, 1978” after “continuing to serve in that position”. Subsec. (b). Pub. L. 104–208, § 2210(b)(2), struck out at end “This subsection shall expire, subject to the requirements of subsection (c) of this section, 20 years after

November 10, 1978.” Subsec. (c). Pub. L. 104–208, § 2210(b)(3), struck out subsec. (c) which related to review of existing management interlocks. 1994—Subsecs. (a), (b). Pub. L. 103–325, § 338(a)(1), substituted “, subject to the requirements of subsection (c) of this section, 20 years after

November 10, 1978” for “15 years after

November 10, 1978”. Subsec. (c). Pub. L. 103–325, § 338(a)(2), added subsec. (c). 1988—Subsec. (a). Pub. L. 100–650, § 5(b)(2), substituted “depository institutions regulatory agency” for “banking agency (as set forth in section 3207 of this title)”. Pub. L. 100–650, § 6, substituted “15 years” for “ten years”. Subsec. (b). Pub. L. 100–650, § 6, substituted “15 years” for “ten years”. 1981—Pub. L. 97–110 designated existing provisions as subsec. (a), inserted provision that a merger, acquisition, increase in total assets, establishment of one or more offices, or change in management responsibilities shall not constitute changes in circumstances which would make such service prohibited by section 3202 or 3203 of this title, and added subsec. (b).

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.

§3205 Management Official in Position Prior to November 10, 1978