Laws: Cases and Codes : U.S. Code : Title 12 : Section 1831g


   
U.S. Code as of: 01/19/04
Section 1831g. Contracts between depository institutions and persons providing goods, products, or services

    (a) In general
      An insured depository institution may not enter into a written or
    oral contract with any person to provide goods, products, or
    services to or for the benefit of such depository institution if
    the performance of such contract would adversely affect the safety
    or soundness of the institution.
    (b) Rulemaking
      The Corporation shall prescribe such regulations and issue such
    orders, including definitions consistent with this section, as may
    be necessary to administer and carry out the purposes of, and
    prevent evasions of, this section.
    (c) Enforcement
      Any action taken by any appropriate Federal banking agency under
    section 1818 of this title to enforce compliance on the part of any
    insured depository institution with the requirements of this
    section may include a requirement that such institution properly
    reflect the transaction on its books and records.
    (d) No private right of action
      This section may not be construed as creating any private right
    of action.
    (e) Study
      (1) In general
        The Attorney General and the Comptroller General of the United
      States shall jointly conduct a study on the extent to which - 
          (A) insured depository institutions are entering into
        contracts with vendors under which the vendors agree to
        purchase stock or assets from insured depository institutions
        or to invest capital in or make deposits in such institutions;
        and
          (B) if such practices occur, the extent to which such
        practices are having an anticompetitive effect and should be
        prohibited.
      (2) Report to Congress
        Before the end of the 1-year period beginning on August 9,
      1989, the Attorney General and the Comptroller General shall
      submit a report to the Congress on the results of the study
      conducted pursuant to paragraph (1).



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