|
U.S. Code as of:
01/19/04
Section 1820. Administration of Corporation
(a) Board of Directors; use of mails; cooperation with other
Federal agencies
The Board of Directors shall administer the affairs of the
Corporation fairly and impartially and without discrimination. The
Board of Directors of the Corporation shall determine and prescribe
the manner in which its obligations shall be incurred and its
expenses allowed and paid. The Corporation shall be entitled to the
free use of the United States mails in the same manner as the
executive departments of the Government. The Corporation with the
consent of any Federal Reserve bank or of any board, commission,
independent establishment, or executive department of the
Government, including any field service thereof, may avail itself
of the use of information, services, and facilities thereof in
carrying out the provisions of this chapter.
(b) Examinations
(1) Appointment of examiners and claims agents
The Board of Directors shall appoint examiners and claims
agents.
(2) Regular examinations
Any examiner appointed under paragraph (1) shall have power, on
behalf of the Corporation, to examine -
(A) any insured State nonmember bank (except a District bank)
or insured State branch of any foreign bank;
(B) any depository institution which files an application
with the Corporation to become an insured depository
institution; and
(C) any insured depository institution in default,
whenever the Board of Directors determines an examination of any
such depository institution is necessary.
(3) Special examination of any insured depository institution
In addition to the examinations authorized under paragraph (2),
any examiner appointed under paragraph (1) shall have power, on
behalf of the Corporation, to make any special examination of any
insured depository institution whenever the Board of Directors
determines a special examination of any such depository
institution is necessary to determine the condition of such
depository institution for insurance purposes.
(4) Examination of affiliates
(A) In general
In making any examination under paragraph (2) or (3), any
examiner appointed under paragraph (1) shall have power, on
behalf of the Corporation, to make such examinations of the
affairs of any affiliate of any depository institution as may
be necessary to disclose fully -
(i) the relationship between such depository institution
and any such affiliate; and
(ii) the effect of such relationship on the depository
institution.
(B) Commitment by foreign banks to allow examinations of
affiliates
No branch or depository institution subsidiary of a foreign
bank may become an insured depository institution unless such
foreign bank submits a written binding commitment to the Board
of Directors to permit any examination of any affiliate of such
branch or depository institution subsidiary pursuant to
subparagraph (A) to the extent determined by the Board of
Directors to be necessary to carry out the purposes of this
chapter.
(5) Examination of insured State branches
The Board of Directors shall -
(A) coordinate examinations of insured State branches of
foreign banks with examinations conducted by the Board of
Governors of the Federal Reserve System under section
3105(c)(1) of this title; and
(B) to the extent possible, participate in any simultaneous
examination of the United States operations of a foreign bank
requested by the Board under such section.
(6) Power and duty of examiners
Each examiner appointed under paragraph (1) shall -
(A) have power to make a thorough examination of any insured
depository institution or affiliate under paragraph (2), (3),
(4), or (5); and
(B) shall make a full and detailed report of condition of any
insured depository institution or affiliate examined to the
Corporation.
(7) Power of claim agents
Each claim agent appointed under paragraph (1) shall have power
to investigate and examine all claims for insured deposits.
(c) Administration of oaths and affirmations; evidence; subpena
powers
In connection with examinations of insured depository
institutions and any State nonmember bank, savings association, or
other institution making application to become insured depository
institutions, and affiliates thereof, or with other types of
investigations to determine compliance with applicable law and
regulations, the appropriate Federal banking agency, or its
designated representatives, are authorized to administer oaths and
affirmations, and to examine and to take and preserve testimony
under oath as to any matter in respect to the affairs or ownership
of any such bank or institution or affiliate thereof, and to
exercise such other powers as are set forth in section 1818(n) of
this title.
(d) Annual on-site examinations of all insured depository
institutions required
(1) In general
The appropriate Federal banking agency shall, not less than
once during each 12-month period, conduct a full-scope, on-site
examination of each insured depository institution.
(2) Examinations by Corporation
Paragraph (1) shall not apply during any 12-month period in
which the Corporation has conducted a full-scope, on-site
examination of the insured depository institution.
(3) State examinations acceptable
The examinations required by paragraph (1) may be conducted in
alternate 12-month periods, as appropriate, if the appropriate
Federal banking agency determines that an examination of the
insured depository institution conducted by the State during the
intervening 12-month period carries out the purpose of this
subsection.
(4) 18-month rule for certain small institutions
Paragraphs (1), (2), and (3) shall apply with "18-month"
substituted for "12-month" if -
(A) the insured depository institution has total assets of
less than $250,000,000;
(B) the institution is well capitalized, as defined in
section 1831o of this title;
(C) when the institution was most recently examined, it was
found to be well managed, and its composite condition -
(i) was found to be outstanding; or
(ii) was found to be outstanding or good, in the case of an
insured depository institution that has total assets of not
more than $100,000,000;
(D) the insured institution is not currently subject to a
formal enforcement proceeding or order by the Corporation or
the appropriate Federal banking agency; and
(E) no person acquired control of the institution during the
12-month period in which a full-scope, on-site examination
would be required but for this paragraph.
(5) Certain Government-controlled institutions exempted
Paragraph (1) does not apply to -
(A) any institution for which the Corporation or the
Resolution Trust Corporation is conservator; or
(B) any bridge bank, none of the voting securities of which
are owned by a person or agency other than the Corporation or
the Resolution Trust Corporation.
(6) Coordinated examinations
To minimize the disruptive effects of examinations on the
operations of insured depository institutions -
(A) each appropriate Federal banking agency shall, to the
extent practicable and consistent with principles of safety and
soundness and the public interest -
(i) coordinate examinations to be conducted by that agency
at an insured depository institution and its affiliates;
(ii) coordinate with the other appropriate Federal banking
agencies in the conduct of such examinations;
(iii) work to coordinate with the appropriate State bank
supervisor -
(I) the conduct of all examinations made pursuant to this
subsection; and
(II) the number, types, and frequency of reports required
to be submitted to such agencies and supervisors by insured
depository institutions, and the type and amount of
information required to be included in such reports; and
(iv) use copies of reports of examinations of insured
depository institutions made by any other Federal banking
agency or appropriate State bank supervisor to eliminate
duplicative requests for information; and
(B) not later than 2 years after September 23, 1994, the
Federal banking agencies shall jointly establish and implement
a system for determining which one of the Federal banking
agencies or State bank supervisors shall be the lead agency
responsible for managing a unified examination of each insured
depository institution and its affiliates, as required by this
subsection.
(7) Separate examinations permitted
Notwithstanding paragraph (6), each appropriate Federal banking
agency may conduct a separate examination in an emergency or
under other exigent circumstances, or when the agency believes
that a violation of law may have occurred.
(8) Report
At the time the system provided for in paragraph (6) is
established, the Federal banking agencies shall submit a joint
report describing the system to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Banking, Finance and Urban Affairs of the House of
Representatives. Thereafter, the Federal banking agencies shall
annually submit a joint report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Banking, Finance and Urban Affairs of the House of
Representatives regarding the progress of the agencies in
implementing the system and indicating areas in which
enhancements to the system, including legislature improvements,
would be appropriate.
(9) Standards for determining adequacy of State examinations
The Federal Financial Institutions Examination Council shall
issue guidelines establishing standards to be used at the
discretion of the appropriate Federal banking agency for purposes
of making a determination under paragraph (3).
(10) Agencies authorized to increase maximum asset amount of
institutions for certain purposes
At any time after the end of the 2-year period beginning on
September 23, 1994, the appropriate Federal banking agency, in
the agency's discretion, may increase the maximum amount
limitation contained in paragraph (4)(C)(ii), by regulation, from
$100,000,000 to an amount not to exceed $250,000,000 for purposes
of such paragraph, if the agency determines that the greater
amount would be consistent with the principles of safety and
soundness for insured depository institutions.
(e) Examination fees
(1) Regular and special examinations of depository institutions
The cost of conducting any regular examination or special
examination of any depository institution under subsection
(b)(2), (b)(3), or (d) of this section may be assessed by the
Corporation against the institution to meet the Corporation's
expenses in carrying out such examinations.
(2) Examination of affiliates
The cost of conducting any examination of any affiliate of any
insured depository institution under subsection (b)(4) of this
section may be assessed by the Corporation against each affiliate
which is examined to meet the Corporation's expenses in carrying
out such examination.
(3) Assessment against depository institution in case of
affiliate's refusal to pay
(A) In general
Subject to subparagraph (B), if any affiliate of any insured
depository institution -
(i) refuses to pay any assessment under paragraph (2); or
(ii) fails to pay any such assessment before the end of the
60-day period beginning on the date the affiliate receives
notice of the assessment,
the Corporation may assess such cost against, and collect such
cost from, the depository institution.
(B) Affiliate of more than 1 depository institution
If any affiliate referred to in subparagraph (A) is an
affiliate of more than 1 insured depository institution, the
assessment under subparagraph (A) may be assessed against the
depository institutions in such proportions as the Corporation
determines to be appropriate.
(4) Civil money penalty for affiliate's refusal to cooperate
(A) Penalty imposed
If any affiliate of any insured depository institution -
(i) refuses to permit an examiner appointed by the Board of
Directors under subsection (b)(1) of this section to conduct
an examination; or
(ii) refuses to provide any information required to be
disclosed in the course of any examination,
the depository institution shall forfeit and pay a penalty of
not more than $5,000 for each day that any such refusal
continues.
(B) Assessment and collection
Any penalty imposed under subparagraph (A) shall be assessed
and collected by the Corporation in the manner provided in
section 1818(i)(2) of this title.
(5) Deposits of examination assessment
Amounts received by the Corporation under this subsection
(other than paragraph (4)) may be deposited in the manner
provided in section 1823 of this title.
(f) Preservation of records by photography; admissibility as
evidence
The Corporation may cause any and all records, papers, or
documents kept by it or in its possession or custody to be
photographed or microphotographed or otherwise reproduced upon
film, which photographic film shall comply with the minimum
standards of quality approved for permanent photographic records by
the National Institute of Standards and Technology. Such
photographs, microphotographs, or photographic film or copies
thereof shall be deemed to be an original record for all purposes,
including introduction in evidence in all State and Federal courts
or administrative agencies and shall be admissible to prove any
act, transaction, occurrence, or event therein recorded. Such
photographs, microphotographs, or reproduction shall be preserved
in such manner as the Board of Directors of the Corporation shall
prescribe and the original records, papers, or documents may be
destroyed or otherwise disposed of as the Board shall direct.
(g) Authority to prescribe regulations and definitions
Except to the extent that authority under this chapter is
conferred on any of the Federal banking agencies other than the
Corporation, the Corporation may -
(1) prescribe regulations to carry out this chapter; and
(2) by regulation define terms as necessary to carry out this
chapter.
(h) Coordination of examination authority
(1) In general
The appropriate State bank supervisor of a host State may
examine a branch operated in such State by an out-of-State
insured State bank that resulted from an interstate merger
transaction approved under section 1831u of this title or a
branch established in such State pursuant to section 36(g) of
this title or section 1828(d)(4) of this title -
(A) for the purpose of determining compliance with host State
laws, including those that govern banking, community
reinvestment, fair lending, consumer protection, and
permissible activities; and
(B) to ensure that the activities of the branch are not
conducted in an unsafe or unsound manner.
(2) Enforcement
If the State bank supervisor of a host State determines that
there is a violation of the law of the host State concerning the
activities being conducted by a branch described in paragraph (1)
or that the branch is being operated in an unsafe and unsound
manner, the State bank supervisor of the host State or, to the
extent authorized by the law of the host State, a State law
enforcement officer may undertake such enforcement actions and
proceedings as would be permitted under the law of the host State
as if the branch were a bank chartered by that host State.
(3) Cooperative agreement
The State bank supervisors from 2 or more States may enter into
cooperative agreements to facilitate State regulatory supervision
of State banks, including cooperative agreements relating to the
coordination of examinations and joint participation in
examinations.
(4) Federal regulatory authority
No provision of this subsection shall be construed as limiting
in any way the authority of an appropriate Federal banking agency
to examine or to take any enforcement actions or proceedings
against any bank or branch of a bank for which the agency is the
appropriate Federal banking agency.
(i) Flood insurance compliance by insured depository institutions
(1) Examinations
The appropriate Federal banking agency shall, during each
scheduled on-site examination required by this section, determine
whether the insured depository institution is complying with the
requirements of the national flood insurance program.
(2) Report
(A) Requirement
Not later than 1 year after September 23, 1994, and
biennially thereafter for the next 4 years, each appropriate
Federal banking agency shall submit a report to the Congress on
compliance by insured depository institutions with the
requirements of the national flood insurance program.
(B) Contents
Each report submitted under this paragraph shall include a
description of the methods used to determine compliance, the
number of institutions examined during the reporting year, a
listing and total number of institutions found not to be in
compliance, actions taken to correct incidents of
noncompliance, and an analysis of compliance, including a
discussion of any trends, patterns, and problems, and
recommendations regarding reasonable actions to improve the
efficiency of the examinations processes.
(j) Consultation among examiners
(1) In general
Each appropriate Federal banking agency shall take such action
as may be necessary to ensure that examiners employed by the
agency -
(A) consult on examination activities with respect to any
depository institution; and
(B) achieve an agreement and resolve any inconsistencies in
the recommendations to be given to such institution as a
consequence of any examinations.
(2) Examiner-in-charge
Each appropriate Federal banking agency shall consider
appointing an examiner-in-charge with respect to a depository
institution to ensure consultation on examination activities
among all of the examiners of that agency involved in
examinations of the institution.
|
|