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U.S. Code as of:
01/19/04
Section 1831i. Agency disapproval of directors and senior executive officers of insured depository institutions or depository institution holding companies
(a) Prior notice required
An insured depository institution or depository institution
holding company shall notify the appropriate Federal banking agency
of the proposed addition of any individual to the board of
directors or the employment of any individual as a senior executive
officer of such institution or holding company at least 30 days (or
such other period, as determined by the appropriate Federal banking
agency) before such addition or employment becomes effective, if -
(1) the insured depository institution or depository
institution holding company is not in compliance with the minimum
capital requirement applicable to such institution or is
otherwise in a troubled condition, as determined by such agency
on the basis of such institution's or holding company's most
recent report of condition or report of examination or
inspection; or
(2) the agency determines, in connection with the review by the
agency of the plan required under section 1831o of this title or
otherwise, that such prior notice is appropriate.
(b) Disapproval by agency
An insured depository institution or depository institution
holding company may not add any individual to the board of
directors or employ any individual as a senior executive officer if
the appropriate Federal banking agency issues a notice of
disapproval of such addition or employment before the end of the
notice period, not to exceed 90 days, beginning on the date the
agency receives notice of the proposed action pursuant to
subsection (a) of this section.
(c) Exception in extraordinary circumstances
(1) In general
Each appropriate Federal banking agency may prescribe by
regulation conditions under which the prior notice requirement of
subsection (a) of this section may be waived in the event of
extraordinary circumstances.
(2) No effect on disapproval authority of agency
Such waivers shall not affect the authority of each agency to
issue notices of disapproval of such additions or employment of
such individuals within 30 days after each such waiver.
(d) Additional information
Any notice submitted to an appropriate Federal banking agency
with respect to an individual by any insured depository institution
or depository institution holding company pursuant to subsection
(a) of this section shall include -
(1) the information described in section 1817(j)(6)(A) of this
title about the individual; and
(2) such other information as the agency may prescribe by
regulation.
(e) Standard for disapproval
The appropriate Federal banking agency shall issue a notice of
disapproval with respect to a notice submitted pursuant to
subsection (a) of this section if the competence, experience,
character, or integrity of the individual with respect to whom such
notice is submitted indicates that it would not be in the best
interests of the depositors of the depository institution or in the
best interests of the public to permit the individual to be
employed by, or associated with, the depository institution or
depository institution holding company.
(f) Definition regulations
Each appropriate Federal banking agency shall prescribe by
regulation a definition for the terms "troubled condition" and
"senior executive officer" for purposes of subsection (a) of this
section.
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