12 U.S.C. § 3205: Management official in…

Summary

Lets a person who began serving as a management official before November 10, 1978, and who was not breaking section 19 of title 15 right before that date, keep serving even if new rules would otherwise bar them. The federal agency in charge can give them a reasonable time, up to 15 months, to follow the new rules after a change that would make their service prohibited. 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, if someone was a management official of both a non‑depository company and a depository (or depository holding) company, and the non‑depository later becomes a diversified savings and loan holding company (as defined in section 1730a(a)), that person may continue as a management official of the depository.

Title 12, §3205

Banks and Banking, Source: USLM XML via OLRC

(a)Continuation of service

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)Depository institution and diversified savings and loan holding company

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) 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