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U.S. Code as of:
01/19/04
Section 1828a. Prudential safeguards
(a) Comptroller of the Currency
(1) In general
The Comptroller of the Currency may, by regulation or order,
impose restrictions or requirements on relationships or
transactions between a national bank and a subsidiary of the
national bank that the Comptroller finds are -
(A) consistent with the purposes of this Act, title LXII of
the Revised Statutes of the United States, and other Federal
law applicable to national banks; and
(B) appropriate to avoid any significant risk to the safety
and soundness of insured depository institutions or any Federal
deposit insurance fund or other adverse effects, such as undue
concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices.
(2) Review
The Comptroller of the Currency shall regularly -
(A) review all restrictions or requirements established
pursuant to paragraph (1) to determine whether there is a
continuing need for any such restriction or requirement to
carry out the purposes of the Act, including the avoidance of
any adverse effect referred to in paragraph (1)(B); and
(B) modify or eliminate any such restriction or requirement
the Comptroller finds is no longer required for such purposes.
(b) Board of Governors of the Federal Reserve System
(1) In general
The Board of Governors of the Federal Reserve System may, by
regulation or order, impose restrictions or requirements on
relationships or transactions -
(A) between a depository institution subsidiary of a bank
holding company and any affiliate of such depository
institution (other than a subsidiary of such institution); or
(B) between a State member bank and a subsidiary of such
bank;
if the Board makes a finding described in paragraph (2) with
respect to such restriction or requirement.
(2) Finding
The Board of Governors of the Federal Reserve System may
exercise authority under paragraph (1) if the Board finds that
the exercise of such authority is -
(A) consistent with the purposes of this Act, the Bank
Holding Company Act of 1956 [12 U.S.C. 1841 et seq.], the
Federal Reserve Act [12 U.S.C. 221 et seq.], and other Federal
law applicable to depository institution subsidiaries of bank
holding companies or State member banks, as the case may be;
and
(B) appropriate to prevent an evasion of any provision of law
referred to in subparagraph (A) or to avoid any significant
risk to the safety and soundness of depository institutions or
any Federal deposit insurance fund or other adverse effects,
such as undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices.
(3) Review
The Board of Governors of the Federal Reserve System shall
regularly -
(A) review all restrictions or requirements established
pursuant to paragraph (1) or (4) to determine whether there is
a continuing need for any such restriction or requirement to
carry out the purposes of the Act, including the avoidance of
any adverse effect referred to in paragraph (2)(B) or (4)(B);
and
(B) modify or eliminate any such restriction or requirement
the Board finds is no longer required for such purposes.
(4) Foreign banks
The Board may, by regulation or order, impose restrictions or
requirements on relationships or transactions between a branch,
agency, or commercial lending company of a foreign bank in the
United States and any affiliate in the United States of such
foreign bank that the Board finds are -
(A) consistent with the purposes of this Act, the Bank
Holding Company Act of 1956, the Federal Reserve Act, and other
Federal law applicable to foreign banks and their affiliates in
the United States; and
(B) appropriate to prevent an evasion of any provision of law
referred to in subparagraph (A) or to avoid any significant
risk to the safety and soundness of depository institutions or
any Federal deposit insurance fund or other adverse effects,
such as undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices.
(c) Federal Deposit Insurance Corporation
(1) In general
The Federal Deposit Insurance Corporation may, by regulation or
order, impose restrictions or requirements on relationships or
transactions between a State nonmember bank (as defined in
section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813])
and a subsidiary of the State nonmember bank that the Corporation
finds are -
(A) consistent with the purposes of this Act, the Federal
Deposit Insurance Act [12 U.S.C. 1811 et seq.], or other
Federal law applicable to State nonmember banks; and
(B) appropriate to avoid any significant risk to the safety
and soundness of depository institutions or any Federal deposit
insurance fund or other adverse effects, such as undue
concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices.
(2) Review
The Federal Deposit Insurance Corporation shall regularly -
(A) review all restrictions or requirements established
pursuant to paragraph (1) to determine whether there is a
continuing need for any such restriction or requirement to
carry out the purposes of the Act, including the avoidance of
any adverse effect referred to in paragraph (1)(B); and
(B) modify or eliminate any such restriction or requirement
the Corporation finds is no longer required for such purposes.
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