12 U.S.C. § 1820 - Administration of Corporation
|Cite as:||12 U.S.C. § 1820|
|Currency:||Current through P.L. 116-135 (03/26/2020)|
(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.
(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 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
(A) In general
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 or nonbank financial company supervised by the Board of Governors or a bank holding company described in section 165(a) of the Financial Stability Act of 2010 [ 12 U.S.C. 5365(a) ], whenever the Board of Directors determines that a special examination of any such depository institution is necessary to determine the condition of such depository institution for insurance purposes, or of such nonbank financial company supervised by the Board of Governors or bank holding company described in section 165(a) of the Financial Stability Act of 2010 [ 12 U.S.C. 5365(a) ], for the purpose of implementing its authority to provide for orderly liquidation of any such company under title II 1 of that Act, provided that such authority may not be used with respect to any such company that is in a generally sound condition.
Before conducting a special examination of a nonbank financial company supervised by the Board of Governors or a bank holding company described in section 165(a) of the Financial Stability Act of 2010 [ 12 U.S.C. 5365(a) ], the Corporation shall review any available and acceptable resolution plan that the company has submitted in accordance with section 165(d) of that Act [ 12 U.S.C. 5365(d) ], consistent with the nonbinding effect of such plan, and available reports of examination, and shall coordinate to the maximum extent practicable with the Board of Governors, in order to minimize duplicative or conflicting examinations.
(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 $3,000,000,000;
(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 $200,000,000;
(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 is conservator; or
(B) any bridge depository institution, none of the voting securities of which are owned by a person or agency other than the 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.
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.
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