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U.S. Code as of:
01/19/04
Section 1815. Deposit insurance
(a) Application to Corporation required
(1) In general
Except as provided in paragraphs (2) and (3), any depository
institution which is engaged in the business of receiving
deposits other than trust funds (as defined in section 1813(p) of
this title), upon application to and examination by the
Corporation and approval by the Board of Directors, may become an
insured depository institution.
(2) Interim depository institutions
In the case of any interim Federal depository institution that
is chartered by the appropriate Federal banking agency and will
not open for business, the depository institution shall be an
insured depository institution upon the issuance of the
institution's charter by the agency.
(3) Application and approval not required in cases of continued
insurance
Paragraph (1) shall not apply in the case of any depository
institution whose insured status is continued pursuant to section
1814 of this title.
(4) Review requirements
In reviewing any application under this subsection, the Board
of Directors shall consider the factors described in section 1816
of this title in determining whether to approve the application
for insurance.
(5) Notice of denial of application for insurance
If the Board of Directors votes to deny any application for
insurance by any depository institution, the Board of Directors
shall promptly notify the appropriate Federal banking agency and,
in the case of any State depository institution, the appropriate
State banking supervisor of the denial of such application,
giving specific reasons in writing for the Board of Directors'
determination with reference to the factors described in section
1816 of this title.
(6) Nondelegation requirement
The authority of the Board of Directors to make any
determination to deny any application under this subsection may
not be delegated by the Board of Directors.
(b) Foreign branch nonmember banks; matters considered
Subject to the provisions of this chapter and to such terms and
conditions as the Board of Directors may impose, any branch of a
foreign bank, upon application by the bank to the Corporation, and
examination by the Corporation of the branch, and approval by the
Board of Directors, may become an insured branch. Before approving
any such application, the Board of Directors shall give
consideration to -
(1) the financial history and condition of the bank,
(2) the adequacy of its capital structure,
(3) its future earnings prospects,
(4) the general character and fitness of its management,
including but not limited to the management of the branch
proposed to be insured,
(5) the risk presented to the Bank Insurance Fund or the
Savings Association Insurance Fund,
(6) the convenience and needs of the community to be served by
the branch,
(7) whether or not its corporate powers, insofar as they will
be exercised through the proposed insured branch, are consistent
with the purposes of this chapter, and
(8) the probable adequacy and reliability of information
supplied and to be supplied by the bank to the Corporation to
enable it to carry out its functions under this chapter.
(c) Protection to deposit insurance fund; surety bond, pledge of
assets, etc.; injunction
(1) Before any branch of a foreign bank becomes an insured
branch, the bank shall deliver to the Corporation or as the
Corporation may direct a surety bond, a pledge of assets, or both,
in such amounts and of such types as the Corporation may require or
approve, for the purpose set forth in paragraph (4) of this
subsection.
(2) After any branch of a foreign bank becomes an insured branch,
the bank shall maintain on deposit with the Corporation, or as the
Corporation may direct, surety bonds or assets or both, in such
amounts and of such types as shall be determined from time to time
in accordance with such regulations as the Board of Directors may
prescribe. Such regulations may impose differing requirements on
the basis of any factors which in the judgment of the Board of
Directors are reasonably related to the purpose set forth in
paragraph (4).
(3) The Corporation may require of any given bank larger deposits
of bonds and assets than required under paragraph (2) of this
subsection if, in the judgment of the Corporation, the situation of
that bank or any branch thereof is or becomes such that the
deposits of bonds and assets otherwise required under this section
would not adequately fulfill the purpose set forth in paragraph
(4). The imposition of any such additional requirements may be
without notice or opportunity for hearing, but the Corporation
shall afford an opportunity to any such bank to apply for a
reduction or removal of any such additional requirements so
imposed.
(4) The purpose of the surety bonds and pledges of assets
required under this subsection is to provide protection to the
deposit insurance fund against the risks entailed in insuring the
domestic deposits of a foreign bank whose activities, assets, and
personnel are in large part outside the jurisdiction of the United
States. In the implementation of its authority under this
subsection, however, the Corporation shall endeavor to avoid
imposing requirements on such banks which would unnecessarily place
them at a competitive disadvantage in relation to domestically
incorporated banks.
(5) In the case of any failure or threatened failure of a foreign
bank to comply with any requirement imposed under this subsection
(c), the Corporation, in addition to all other administrative and
judicial remedies, may apply to any United States district court,
or United States court of any territory, within the jurisdiction of
which any branch of the bank is located, for an injunction to
compel such bank and any officer, employee, or agent thereof, or
any other person having custody or control of any of its assets, to
deliver to the Corporation such assets as may be necessary to meet
such requirement, and to take any other action necessary to vest
the Corporation with control of assets so delivered. If the court
shall determine that there has been any such failure or threatened
failure to comply with any such requirement, it shall be the duty
of the court to issue such injunction. The propriety of the
requirement may be litigated only as provided in chapter 7 of title
5, and may not be made an issue in an action for an injunction
under this paragraph.
(d) Insurance fees
(1) Uninsured institutions
(A) In general
Any institution that becomes insured by the Corporation, and
any noninsured branch that becomes insured by the Corporation,
shall pay the Corporation any fee which the Corporation may by
regulation prescribe, after giving due consideration to the
need to establish and maintain reserve ratios in the Bank
Insurance Fund and the Savings Association Insurance Fund as
required by section 1817 of this title.
(B) Fee credited to appropriate fund
The fee paid by the depository institution shall be credited
to the Bank Insurance Fund if the depository institution
becomes a Bank Insurance Fund member, and to the Savings
Association Insurance Fund if the depository institution
becomes a Savings Association Insurance Fund member.
(C) Exception for certain depository institutions
Any depository institution that becomes an insured depository
institution by operation of section 1814(a) of this title shall
not pay any fee.
(2) Conversions
(A) In general
(i) Prior approval required
No insured depository institution may participate in a
conversion transaction without the prior approval of the
Corporation.
(ii) 5-year moratorium on conversions
Except as provided in subparagraph (C), the Corporation may
not approve any conversion transaction before the later of
the end of the 5-year period beginning on August 9, 1989, or
the date on which the Savings Association Insurance Fund
first meets or exceeds the designated reserve ratio for such
fund.
(B) "Conversion transaction" defined
For purposes of this paragraph, the term "conversion
transaction" means -
(i) the change of status of an insured depository
institution from a Bank Insurance Fund member to a Savings
Association Insurance Fund member or from a Savings
Association Insurance Fund member to a Bank Insurance Fund
member;
(ii) the merger or consolidation of a Bank Insurance Fund
member with a Savings Association Insurance Fund member;
(iii) the assumption of any liability by -
(I) any Bank Insurance Fund member to pay any deposits of
a Savings Association Insurance Fund member; or
(II) any Savings Association Insurance Fund member to pay
any deposits of a Bank Insurance Fund member;
(iv) the transfer of assets of -
(I) any Bank Insurance Fund member to any Savings
Association Insurance Fund member in consideration of the
assumption of liabilities for any portion of the deposits
of such Bank Insurance Fund member; or
(II) any Savings Association Insurance Fund member to any
Bank Insurance Fund member in consideration of the
assumption of liabilities for any portion of the deposits
of such Savings Association Insurance Fund member; and
(v) the transfer of deposits -
(I) from a Bank Insurance Fund member to a Savings
Association Insurance Fund member; or
(II) from a Savings Association Insurance Fund member to
a Bank Insurance Fund member;
in a transaction in which the deposit is received from a
depositor at an insured depository institution for which a
receiver has been appointed and the receiving insured
depository institution is acting as agent for the Corporation
in connection with the payment of such deposit to the
depositor at the institution for which a receiver has been
appointed.
(C) Approval during moratorium
The Corporation may approve a conversion transaction at any
time if -
(i) the conversion transaction affects an insubstantial
portion, as determined by the Corporation, of the total
deposits of each depository institution participating in the
conversion transaction;
(ii) the conversion occurs in connection with the
acquisition of a Savings Association Insurance Fund member in
default or in danger of default, and the Corporation
determines that the estimated financial benefits to the
Savings Association Insurance Fund or Resolution Trust
Corporation equal or exceed the Corporation's estimate of
loss of assessment income to such insurance fund over the
remaining balance of the moratorium period established by
subparagraph (A), and the Resolution Trust Corporation
concurs in the Corporation's determination; or
(iii) the conversion occurs in connection with the
acquisition of a Bank Insurance Fund member in default or in
danger of default and the Corporation determines that the
estimated financial benefits to the Bank Insurance Fund equal
or exceed the Corporation's estimate of the loss of
assessment income to the insurance fund over the remaining
balance of the moratorium period established by subparagraph
(A).
(D) Certain transfers deemed to affect insubstantial portion of
total deposits
For purposes of subparagraph (C)(i), any conversion
transaction shall be deemed to affect an insubstantial portion
of the total deposits of an insured depository institution, to
the extent the aggregate amount of the total deposits
transferred in such transaction and in all conversion
transactions occurring after August 9, 1989, does not exceed 35
percent of the lesser of -
(i) the amount which is equal to the sum of -
(I) the total deposits of such insured depository
institution on May 1, 1989; and
(II) the total amount of net interest credited to the
depository institution's deposits during the period
beginning on May 1, 1989, and ending on the date of the
transfer of deposits in connection with such transaction;
or
(ii) the amount which is equal to the total deposits of
such insured depository institution on the date of the
transfer of deposits in connection with such transaction.
(E) Exit and entrance fees
Each insured depository institution participating in a
conversion transaction shall pay -
(i) in the case of a conversion transaction in which the
resulting or acquiring depository institution is not a
Savings Association Insurance Fund member, an exit fee (in an
amount to be determined and assessed in accordance with
subparagraph (F)) which -
(I) shall be deposited in the Savings Association
Insurance Fund; or
(II) shall be paid to the Financing Corporation, if the
Secretary of the Treasury determines that the Financing
Corporation has exhausted all other sources of funding for
interest payments on the obligations of the Financing
Corporation and orders that such fees be paid to the
Financing Corporation;
(ii) in the case of a conversion transaction in which the
resulting or acquiring depository institution is not a Bank
Insurance Fund member, an exit fee in an amount to be
determined by the Corporation (and assessed in accordance
with subparagraph (F)(ii)) which shall be deposited in the
Bank Insurance Fund; and
(iii) an entrance fee in an amount to be determined by the
Corporation (and assessed in accordance with subparagraph
(F)(ii)), except that -
(I) in the case of a conversion transaction in which the
resulting or acquiring depository institution is a Bank
Insurance Fund member, the fee shall be the approximate
amount which the Corporation calculates as necessary to
prevent dilution of the Bank Insurance Fund, and shall be
paid to the Bank Insurance Fund; and
(II) in the case of a conversion transaction in which the
resulting or acquiring depository institution is a Savings
Association Insurance Fund member, the fee shall be the
approximate amount which the Corporation calculates as
necessary to prevent dilution of the Savings Association
Insurance Fund, and shall be paid to the Savings
Association Insurance Fund.
(F) Assessment of exit and entrance fees
(i) Determination of amount of exit fees
(I) Conversions before January 1, 1997
In the case of any exit fee assessed under subparagraph
(E)(i) for any conversion transaction consummated before
January 1, 1997, the amount of such fee shall be determined
jointly by the Corporation and the Secretary of the
Treasury.
(II) Assessments after December 31, 1996
In the case of any exit fee assessed under subparagraph
(E)(i) for any conversion transaction consummated after
December 31, 1996, the amount of such fee shall be
determined by the Corporation.
(ii) Procedures
The Corporation shall prescribe, by regulation, procedures
for assessing any exit or entrance fee under subparagraph
(E).
(G) Charter conversion of SAIF members
This subsection shall not be construed as prohibiting any
savings association which is a Savings Association Insurance
Fund member from converting to a bank charter during the period
described in subparagraph (A)(ii) if the resulting bank remains
a Savings Association Insurance Fund member.
(3) Optional conversions subject to special rules on deposit
insurance payments
(A) Conversions allowed
Notwithstanding paragraph (2)(A), and subject to the
requirements of this paragraph, any insured depository
institution may participate in a transaction described in
clause (ii), (iii), or (iv) of paragraph (2)(B) if the
transaction is approved by the responsible agency under section
1828(c)(2) of this title.
(B) Assessments on deposits attributable to former depository
institution
(i) Assessments by SAIF
In the case of any acquiring, assuming, or resulting
depository institution which is a Bank Insurance Fund member,
that portion of the deposits of such member for any
semiannual period which is equal to the adjusted attributable
deposit amount (determined under subparagraph (C) with
respect to the transaction) shall be treated as deposits
which are insured by the Savings Association Insurance Fund.
(ii) Assessments by BIF
In the case of any acquiring, assuming, or resulting
depository institution which is a Savings Association
Insurance Fund member, that portion of the deposits of such
member for any semiannual period which is equal to the
adjusted attributable deposit amount (determined under
subparagraph (C) with respect to the transaction) shall be
treated as deposits which are insured by the Bank Insurance
Fund.
(C) Determination of adjusted attributable deposit amount
Except as provided in subparagraph (K), the adjusted
attributable deposit amount which shall be taken into account
for purposes of determining the amount of the assessment under
subparagraph (B) for any semiannual period by any acquiring,
assuming, or resulting depository institution in connection
with a transaction under subparagraph (A) is the amount which
is equal to the sum of -
(i) the amount of any deposits acquired by the institution
in connection with the transaction (as determined at the time
of such transaction);
(ii) the total of the amounts determined under clause (iii)
for semiannual periods preceding the semiannual period for
which the determination is being made under this
subparagraph; and
(iii) the amount by which the sum of the amounts described
in clauses (i) and (ii) would have increased during the
preceding semiannual period (other than any semiannual period
beginning before the date of such transaction) if such
increase occurred at a rate equal to the annual rate of
growth of deposits of the acquiring, assuming, or resulting
depository institution minus the amount of any deposits
acquired through the acquisition, in whole or in part, of
another insured depository institution.
(D) Deposit of assessment
That portion of any assessment under section 1817 of this
title which -
(i) is determined in accordance with subparagraph (B)(i)
shall be deposited in the Savings Association Insurance Fund;
and
(ii) is determined in accordance with subparagraph (B)(ii)
shall be deposited in the Bank Insurance Fund.
(E) Conditions for approval, generally
(i) Information required
An application to engage in any transaction under this
paragraph shall contain such information relating to the
factors to be considered for approval as the responsible
agency may require, by regulation or by specific request, in
connection with any particular application.
(ii) No transfer of deposit insurance permitted
This paragraph shall not be construed as authorizing
transactions which result in the transfer of any insured
depository institution's Federal deposit insurance from 1
Federal deposit insurance fund to the other Federal deposit
insurance fund.
(iii) Capital requirements
A transaction described in this paragraph shall not be
approved under section 1828(c)(2) of this title unless the
acquiring, assuming, or resulting depository institution will
meet all applicable capital requirements upon consummation of
the transaction.
(F) Certain interstate transactions
A Bank Insurance Fund member which is a subsidiary of a bank
holding company may not be the acquiring, assuming, or
resulting depository institution in a transaction under
subparagraph (A) unless the transaction would comply with the
requirements of section 1842(d) of this title if, at the time
of such transaction, the Savings Association Insurance Fund
member involved in such transaction was a State bank that the
bank holding company was applying to acquire.
(G) Allocation of costs in event of default
If any acquiring, assuming, or resulting depository
institution is in default or danger of default at any time
before this paragraph ceases to apply, any loss incurred by the
Corporation shall be allocated between the Bank Insurance Fund
and the Savings Association Insurance Fund, in amounts
reflecting the amount of insured deposits of such acquiring,
assuming, or resulting depository institution assessed by the
Bank Insurance Fund and the Savings Association Insurance Fund,
respectively, under subparagraph (B).
(H) Subsequent approval of conversion transaction
This paragraph shall cease to apply if -
(i) after the end of the moratorium period established by
paragraph (2)(A), the Corporation approves an application by
any acquiring, assuming, or resulting depository institution
to treat the transaction described in subparagraph (A) as a
conversion transaction; and
(ii) the acquiring, assuming, or resulting depository
institution pays the amount of any exit and entrance fee
assessed by the Corporation under subparagraph (E) of
paragraph (2) with respect to such transaction.
(I) "Acquiring, assuming, or resulting depository institution"
defined
For purposes of this paragraph, the term "acquiring,
assuming, or resulting depository institution" means any
insured depository institution which -
(i) results from any transaction described in paragraph
(2)(B)(ii) and approved under this paragraph;
(ii) in connection with a transaction described in
paragraph (2)(B)(iii) and approved under this paragraph,
assumes any liability to pay deposits of another insured
depository institution; or
(iii) in connection with a transaction described in
paragraph (2)(B)(iv) and approved under this paragraph,
acquires assets from any insured depository institution in
consideration of the assumption of liability for any deposits
of such institution.
(J) Redesignated (I)
(K) Adjustment of adjusted attributable deposit amount
The amount determined under subparagraph (C)(i) for deposits
acquired by March 31, 1995, shall be reduced by 20 percent for
purposes of computing the adjusted attributable deposit amount
for the payment of any assessment for any semiannual period
that begins after September 30, 1996 (other than the special
assessment imposed under section 2702(a) of such Act), for a
Bank Insurance Fund member bank that, as of June 30, 1995 -
(i) had an adjusted attributable deposit amount that was
less than 50 percent of the total deposits of that member
bank; or
(ii)(I) had an adjusted attributable deposit amount equal
to less than 75 percent of the total assessable deposits of
that member bank;
(II) had total assessable deposits greater than
$5,000,000,000; and
(III) was owned or controlled by a bank holding company
that owned or controlled insured depository institutions
having an aggregate amount of deposits insured or treated as
insured by the Bank Insurance Fund greater than the aggregate
amount of deposits insured or treated as insured by the
Savings Association Insurance Fund.
(e) Liability of commonly controlled depository institutions
(1) In general
(A) Liability established
Any insured depository institution shall be liable for any
loss incurred by the Corporation, or any loss which the
Corporation reasonably anticipates incurring, after August 9,
1989, in connection with -
(i) the default of a commonly controlled insured depository
institution; or
(ii) any assistance provided by the Corporation to any
commonly controlled insured depository institution in danger
of default.
(B) Payment upon notice
An insured depository institution shall pay the amount of any
liability to the Corporation under subparagraph (A) upon
receipt of written notice by the Corporation in accordance with
this subsection.
(C) Notice required to be provided within 2 years of loss
No insured depository institution shall be liable to the
Corporation under subparagraph (A) if written notice with
respect to such liability is not received by such institution
before the end of the 2-year period beginning on the date the
Corporation incurred the loss.
(2) Amount of compensation; procedures
(A) Use of estimates
When an insured depository institution is in default or
requires assistance to prevent default, the Corporation shall -
(i) in good faith, estimate the amount of the loss the
Corporation will incur from such default or assistance;
(ii) if, with respect to such insured depository
institution, there is more than 1 commonly controlled insured
depository institution, estimate the amount of each such
commonly controlled depository institution's share of such
liability; and
(iii) advise each commonly controlled depository
institution of the Corporation's estimate of the amount of
such institution's liability for such losses.
(B) Procedures; immediate payment
The Corporation, after consultation with the appropriate
Federal banking agency and the appropriate State chartering
agency, shall -
(i) on a case-by-case basis, establish the procedures and
schedule under which any insured depository institution shall
reimburse the Corporation for such institution's liability
under paragraph (1) in connection with any commonly
controlled insured depository institution; or
(ii) require any insured depository institution to make
immediate payment of the amount of such institution's
liability under paragraph (1) in connection with any commonly
controlled insured depository institution.
(C) Priority
The liability of any insured depository institution under
this subsection shall have priority with respect to other
obligations and liabilities as follows:
(i) Superiority
The liability shall be superior to the following
obligations and liabilities of the depository institution:
(I) Any obligation to shareholders arising as a result of
their status as shareholders (including any depository
institution holding company or any shareholder or creditor
of such company).
(II) Any obligation or liability owed to any affiliate of
the depository institution (including any other insured
depository institution), other than any secured obligation
which was secured as of May 1, 1989.
(ii) Subordination
The liability shall be subordinate in right and payment to
the following obligations and liabilities of the depository
institution:
(I) Any deposit liability (which is not a liability
described in clause (i)(II)).
(II) Any secured obligation, other than any obligation
owed to any affiliate of the depository institution
(including any other insured depository institution) which
was secured after May 1, 1989.
(III) Any other general or senior liability (which is not
a liability described in clause (i)).
(IV) Any obligation subordinated to depositors or other
general creditors (which is not an obligation described in
clause (i)).
(D) Adjustment of estimated payment
(i) Overpayment
If the amount of compensation estimated by and paid to the
Corporation by 1 or more such commonly controlled depository
institutions is greater than the actual loss incurred by the
Corporation, the Corporation shall reimburse each such
commonly controlled depository institution its pro rata share
of any overpayment.
(ii) Underpayment
If the amount of compensation estimated by and paid to the
Corporation by 1 or more such commonly controlled depository
institutions is less than the actual loss incurred by the
Corporation, the Corporation shall redetermine in its
discretion the liability of each such commonly controlled
depository institution to the Corporation and shall require
each such commonly controlled depository institution to make
payment of any additional liability to the Corporation.
(3) Review
(A) Judicial
Actions of the Corporation shall be reviewable pursuant to
chapter 7 of title 5.
(B) Administrative
The Corporation shall prescribe regulations and establish
administrative procedures which provide for a hearing on the
record for the review of -
(i) the amount of any loss incurred by the Corporation in
connection with any insured depository institution;
(ii) the liability of individual commonly controlled
depository institutions for the amount of such loss; and
(iii) the schedule of payments to be made by such commonly
controlled depository institutions.
(4) Limitation on rights of private parties
To the extent the exercise of any right or power of any person
would impair the ability of any insured depository institution to
perform such institution's obligations under this subsection -
(A) the obligations of such insured depository institution
shall supersede such right or power; and
(B) no court may give effect to such right or power with
respect to such insured depository institution.
(5) Waiver authority
(A) In general
The Corporation, in its discretion, may exempt any insured
depository institution from the provisions of this subsection
if the Corporation determines that such exemption is in the
best interests of the Bank Insurance Fund or the Savings
Association Insurance Fund.
(B) Condition
During the period any exemption granted to any insured
depository institution under subparagraph (A) or (C) is in
effect, such insured depository institution and all other
insured depository institution affiliates of such depository
institution shall comply fully with the restrictions of
sections 371c and 371c-1 of this title without regard to
section 371c(d)(1) of this title.
(C) Limited partnerships
(i) In general
The Corporation may, in its discretion, exempt any limited
partnership and any affiliate of any limited partnership
(other than any insured depository institution which is a
majority owned subsidiary of such partnership) from the
provisions of this subsection if such limited partnership or
affiliate has filed a registration statement with the
Securities and Exchange Commission on or before April 10,
1989, indicating that as of the date of such filing such
partnership intended to acquire 1 or more insured depository
institutions.
(ii) Review and notice
Within 10 business days after the date of submission of any
request for an exemption under this subparagraph together
with such information as shall be reasonably requested by the
Corporation, the Corporation shall make a determination on
the request and shall so advise the applicant.
(6) 5-year transition rule
During the 5-year period beginning on August 9, 1989 -
(A) no Savings Association Insurance Fund member shall have
any liability to the Corporation under this subsection arising
out of assistance provided by the Corporation or any loss
incurred by the Corporation as a result of the default of a
Bank Insurance Fund member which was acquired by such Savings
Association Insurance Fund member or any affiliate of such
member before August 9, 1989; and
(B) no Bank Insurance Fund member shall have such liability
with respect to assistance provided by or loss incurred by the
Corporation as a result of the default of a Savings Association
Insurance Fund member which was acquired by such Bank Insurance
Fund member or any affiliate of such member before August 9,
1989.
(7) Exclusion for institutions acquired in debt collections
Any depository institution shall not be treated as commonly
controlled, for purposes of this subsection, during the 5-year
period beginning on the date of an acquisition described in
subparagraph (A) or such longer period as the Corporation may
determine after written application by the acquirer, if -
(A) 1 depository institution controls another by virtue of
ownership of voting shares acquired in securing or collecting a
debt previously contracted in good faith; and
(B) during the period beginning on August 9, 1989, and ending
upon the expiration of the exclusion, the controlling bank and
all other insured depository institution affiliates of such
controlling bank comply fully with the restrictions of sections
371c and 371c-1 of this title, without regard to section
371c(d)(1) of this title, in transactions with the acquired
insured depository institution.
(8) Exception for certain FSLIC assisted institutions
No depository institution shall have any liability to the
Corporation under this subsection as the result of the default
of, or assistance provided with respect to, an insured depository
institution which is an affiliate of such depository institution
if -
(A) such affiliate was receiving cash payments from the
Federal Savings and Loan Insurance Corporation under an
assistance agreement or note entered into before August 9,
1989;
(B) the Federal Savings and Loan Insurance Corporation, or
such other entity which has succeeded to the payment
obligations of such Corporation with respect to such assistance
agreement or note, is unable to continue such payments; and
(C) such affiliate -
(i) is in default or in need of assistance solely as a
result of the failure to meet the payment obligations
referred to in subparagraph (B); and
(ii) is not otherwise in breach of the terms of any
assistance agreement or note which would authorize the
Federal Savings and Loan Insurance Corporation or such other
successor entity, pursuant to the terms of such assistance
agreement or note, to refuse to make such payments.
(9) Commonly controlled defined
For purposes of this subsection, depository institutions are
commonly controlled if -
(A) such institutions are controlled by the same depository
institution holding company (including any company required to
file reports pursuant to section 1843(f)(6) of this title); or
(B) 1 depository institution is controlled by another
depository institution.
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