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June 13, 1985 To A ll D e p o sito ry I n s t i t u t i o n s in th e Second F e d e ra l R eserve D i s t r i c t , and O th ers M ain tain in g S e ts o f Board R e g u la tio n s : Enclosed i s a copy of R e g u la tio n Ls "Management O f f i c i a l I n te r lo c k s ," as amended e f f e c t i v e June 10, 1984. The re v is e d pam phlet has been p r in te d in th e new s m a lle r s iz e and re p la c e s th e p re v io u s p r in t in g of th a t r e g u la tio n , to g e th e r w ith a l l amendments th e r e to . Q uestions re g a rd in g t h i s r e g u la tio n may be d ir e c te d to our R e g u la tio n s D iv is io n (T e l. No. 212-791-5914). C ir c u la r s D iv is io n FEDERAL RESERVE BANK OF NEW YORK Board of Governors of the Federal Reserve System 7 Regulation L Management Official Interlocks 12 C F R 2 1 2 ; a s a m e n d e d e ffectiv e J u n e 10, 1984 A n y in q u ir y r e la tin g to th i s r e g u la tio n s h o u ld b e a d d r e s s e d to th e F e d e r a l R e s e r v e B a n k o f th e F e d e r a l R e s e rv e D is t r ic t in w h ic h th e in q u ir y a rise s. A p r il 1985 Contents Page S e c tio n 2 1 2 .1 — A u th o r i ty , p u rp o s e , Page ( c ) D iv e rs ifie d s a v in g s a n d lo a n h o ld in g a n d s c o p e ........................................................ . . 1 ( a ) A u t h o r i t y .............................................. . . 1 ( b ) P u r p o s e a n d s c o p e ............................ . . 1 S e c tio n 2 1 2 .2 — D e f i n i t i o n s .......................... . . 1 c o m p a n y .............................................. 4 S e c tio n 2 1 2 .5 — G r a n d f a t h e r e d in te r lo c k in g r e l a t i o n s h i p s ..................... 4 S e c tio n 2 1 2 .6 — C h a n g e s in S e c tio n 2 1 2 .3 — G e n e r a l p r o h ib itio n s . . . . . 2 c ir c u m s ta n c e s ............................................ ( a ) C o m m u n i t y ......................................... . . 2 ( a ) N o n g r a n d f a t h e r e d in te r lo c k s . . 5 ( b ) M e t r o p o li ta n s ta tis tic a l a r e a . . . . . . 2 ( b ) G r a c e p e r i o d .................................... 5 ( c ) M a j o r a s s e t s ......................................... . . 3 S e c tio n 2 1 2 .7 — E ffe c t o f I n t e r lo c k s A c t o n C la y to n A c t .................................. 5 3 S e c tio n 2 1 2 .8 — E n f o r c e m e n t .................. 5 S e c tio n 2 1 2 .4 — P e r m it te d in te r lo c k in g r e l a t i o n s h i p s ................................................... . . 5 ( a ) I n t e r lo c k in g re la tio n s h ip s p e r m it te d b y s t a tu t e ....................... . . 3 ( b ) I n t e r lo c k in g re la tio n s h ip s p e r m it te d b y a g e n c y o r d e r .......... . . D e p o s ito r y I n s tit u ti o n s M a n a g e m e n t I n t e r lo c k s A c t ..................... 7 3 i Regulation L Management Official Interlocks 12 C F R 2 1 2 ; a s a m e n d e d e ffe c tiv e J u n e 10, 1 9 8 4 SECTION 212.1—Authority, Purpose, and Scope ( a ) A u th o rity. T h is p a r t* is is s u e d u n d e r th e p ro v is io n s o f th e D e p o s ito r y I n s tit u ti o n M a n a g e m e n t I n t e r lo c k s A c t ( “ I n t e r lo c k s A c t ” ) ( 1 2 U S C 3201 e t s e q .) . c o m m o n a lity o f in t e r e s t b e tw e e n t h e d e p o s ito r y o r g a n iz a tio n s . I n m a k in g th i s d e te r m i n a tio n , t h e a g e n c ie s w ill c o n s id e r, a m o n g o th e r th in g s , w h e th e r a p e rs o n , in c lu d in g m e m b e r s o f h is o r h e r im m e d ia te fa m ily , w h o s e s h a r e s a r e n e c e s s a ry t o c o n s t it u te t h e g r o u p o w n s a n o m in a l p e r c e n ta g e o f t h e s h a r e s o f o n e o f th e ( b ) Purpose a n d scope. T h e g e n e ra l p u r p o s e o r g a n iz a tio n s a n d t h e p e r c e n ta g e is s u b s ta n o f t h e I n t e r lo c k s A c t a n d th i s p a r t is to f o s te r c o m p e titio n b y g e n e ra lly p r o h ib itin g a m a n tia lly d i s p r o p o r t io n a t e w ith th a t p e r s o n ’s o w n e r s h ip o f s h a r e s in t h e o t h e r o r g a n iz a tio n . a g e m e n t o fficial o f a d e p o s ito r y in s ti tu t io n o r “ I m m e d i a te f a m ily ” in c lu d e s s p o u s e , m o th e r , d e p o s ito r y h o ld in g c o m p a n y fr o m a ls o s e r v in g f a t h e r , c h ild , g r a n d c h i ld , s is te r , b r o t h e r , o r a s a m a n a g e m e n t o fficial o f a n o t h e r d e p o s ito r y in s ti tu t io n o r d e p o s ito r y h o ld in g c o m p a n y t h e i r s h a r e s a r e h e ld in tr u s t. a n y o f t h e i r s p o u s e s , w h e th e r o r n o t a n y o f i f t h e tw o o rg a n iz a tio n s ( 1 ) a r e n o t a ffilia te d “ C o m m u n ity ” m e a n s c ity , to w n , o r v il a n d ( 2 ) a r e v e ry la r g e o r a r e lo c a te d in th e (c ) s a m e lo c a l a re a . T h is p a r t a p p lie s t o m a n a g e m e n t o fficia ls o f s t a te m e m b e r b a n k s , b a n k la g e , o r c o n tig u o u s o r a d ja c e n t c itie s , to w n s , h o ld in g c o m p a n ie s , a n d t h e i r affiliates. o r v illa g e s. (d ) “ C ontiguous cities, towns, or villages ” m e a n s c itie s , to w n s , o r v illa g e s w h o s e b o r d e r s SECTION 212.2—Definitions F o r t h e p u r p o s e o f th i s p a r t , t h e fo llo w in g d e f in itio n s a p p ly : a c tu a lly to u c h e a c h o th e r . (e ) “D epository h o ld in g c o m p a n y ” m e a n s a b a n k h o ld in g c o m p a n y o r a s a v in g s a n d lo a n h o ld in g c o m p a n y (a ) “A d ja c e n t cities, tow ns or villages ” m e a n s ( a s m o r e fu lly d e fin e d in s e c tio n 2 0 2 o f t h e I n t e r lo c k s A c t ) h a v in g its c itie s , to w n s , o r v illa g e s w h o s e b o r d e r s a r e w ith in 10 r o a d m ile s o f e a c h o t h e r a t t h e i r c lo s e s t p o in ts . T h e p r o p e r ty lin e o f a n office lo c a te d in a n u n in c o r p o r a t e d c ity , to w n , o r p r i n c ip a l office lo c a te d in t h e U n ite d S ta te s . v illa g e is r e g a r d e d a s th e b o u n d a r y lin e o f t h a t c ity , to w n , o r v illa g e fo r t h e p u r p o s e o f th is d e fin itio n . in g s b a n k , a t r u s t c o m p a n y , a sa v in g s a n d (f) “ D epository in stitu tio n ” m e a n s a c o m m e r c ia l b a n k ( i n c lu d i n g a p r i v a te b a n k ) , a s a v lo a n a s s o c ia tio n , a b u ild in g a n d lo a n a s s o c ia tio n , a h o m e s te a d a s s o c ia tio n , a c o o p e r a tiv e b a n k , a n in d u s tr i a l b a n k , o r a c r e d i t u n io n , ( b ) “A ffilia te ” h a s t h e m e a n in g g iv e n in s e c ti o n 2 0 2 o f t h e I n t e r lo c k s A c t. F o r p u r p o s e s p r in c ip a l office lo c a te d in t h e U n ite d S ta te s. o f s e c tio n 2 0 2 , a n in d iv id u a l’s s h a r e s in c lu d e A d d itio n a lly , a U n ite d S ta te s office, in c lu d in g c h a r t e r e d in t h e U n ite d S ta te s a n d h a v in g a s h a r e s o f m e m b e r s o f h is o r h e r im m e d ia te a b r a n c h o r a g e n c y , o f a f o r e ig n c o m m e r c ia l fa m ily . F o r t h e p u r p o s e o f s e c tio n 2 0 2 ( 3 ) ( B ) b a n k is a “ d e p o s ito r y in s t i t u t i o n .” o f t h e I n t e r lo c k s A c t, a n affilia te r e la tio n s h ip “D epository organization ” m e a n s a d e p o s b a s e d o n c o m m o n o w n e r s h ip d o e s n o t e x is t i f (g ) t h e a p p r o p r ia t e fe d e r a l s u p e r v is o r y a g e n c y o r it o r y a g e n c ie s d e te r m in e , a f t e r g iv in g th e a ffe c te d com pany. in s ti tu t io n or a d e p o s ito r y h o ld in g p e rs o n s th e o p p o r t u n it y to re s p o n d , t h a t th e a s s e r te d a ffilia tio n a p p e a r s to h a v e b e e n e s ta b (h ) ( 1 ) “M a n a g e m e n t o ffic ia l” m e a n s ( i ) a n lis h e d in o r d e r t o a v o id t h e p r o h ib itio n s o f th e e m p lo y e e o r o ffic e r w ith m a n a g e m e n t f u n c I n t e r lo c k s A c t a n d d o e s n o t r e p r e s e n t a tr u e tio n s ( in c lu d i n g a b r a n c h m a n a g e r ) ; ( i i ) a * The words “this part,” as used herein, mean Regula tion L (Code of Federal Regulations, title 12, chapter II, part 212). d i r e c to r ( in c lu d i n g a n a d v is o r y d i r e c to r o r h o n o r a r y d i r e c t o r ) ; ( i ii ) a tr u s te e o f a b u s i n ess o r g a n i z a ti o n under th e c o n tr o l of 1 Regulation L §212.2 tr u s te e s (e .g ., a m u t u a l s a v in g s b a n k ) ; o r ( i v ) a n y p e r s o n w h o h a s a r e p r e s e n ta tiv e o r A c t (1 2 U S C n o m in e e s e r v in g in a n y s u c h c a p a c ity . h ib itio n s o f s e c tio n 4 o f th e B a n k H o ld in g (2 ) “ M an ag em en t c lu d e (i) a official” p e rso n w hose 1 7 3 0 a (a )(F )), or of a bank h o ld in g c o m p a n y t h a t is e x e m p t fr o m t h e p r o n o t in C o m p a n y A c t o f 1956 p u r s u a n t to a n o r d e r m anagem ent is s u e d u n d e r s e c tio n 4 ( d ) o f t h a t a c t (1 2 U S C does fu n c tio n s r e la te e x c lu s iv e ly to th e b u s in e s s 1 8 4 3 ( d ) ) , m e a n s o n ly th e to t a l a s s e ts o f its o f r e t a il m e r c h a n d is in g o r m a n u f a c tu r in g ; d e p o s ito r y i n s ti tu t io n affiliate. “ T o ta l a s s e ts ” ( i i ) a p e r s o n w h o s e m a n a g e m e n t fu n c tio n s o f a U n ite d S ta te s b r a n c h o r a g e n c y o f a f o r r e la te p r in c ip a lly to th e b u s in e s s o u ts id e th e e ig n c o m m e r c ia l b a n k m e a n s th e t o t a l a s s e ts U n ite d S ta te s o f a fo r e ig n c o m m e r ic a l b a n k ; o f s u c h b r a n c h o r a g e n c y its e lf e x c lu s iv e o f th e o r ( i ii ) p e rs o n s d e s c r ib e d in th e p ro v is o s o f a s s e ts o f t h e o t h e r offices o f t h e f o r e ig n c o m s e c tio n 2 0 2 ( 4 ) o f th e I n t e r lo c k s A c t (1 2 m e r c ia l b a n k . U S C 3 2 0 1 (4 )). ( m ) “ U nited S ta te s ” m e a n s a n y s t a te o f th e “ O ffic e ” m e a n s a p r in c ip a l o r b r a n c h o f U n ite d S ta te s , t h e D is t r i c t o f C o lu m b ia , a n y fice, lo c a te d in th e U n ite d S ta te s , o f a d e p o s i t e r r i t o r y o f th e U n ite d S ta te s , P u e r t o R ic o , (i) t o r y in s titu tio n . “ O ffice” d o e s n o t in c lu d e a G uam , r e p r e s e n ta tiv e office o f a f o r e ig n c o m m e r c ia l I s la n d s . b a n k , a n e le c tr o n ic te r m in a l, a lo a n p r o d u c ti o n office, o r a n y office o f a d e p o s ito r y h o l d in g c o m p a n y . (j) A m e ric a n Sam oa, or th e V irg in ( n ) “ R e le v a n t m etropolitan sta tistica l area ” m e a n s a p r i m a r y m e t r o p o l it a n s t a ti s ti c a l a re a , a m e t r o p o l it a n s t a ti s ti c a l a re a , o r a c o n s o l id a t “Person ” m e a n s a n a tu r a l p e rs o n , c o r p o e d m e t r o p o l it a n s t a ti s ti c a l a r e a t h a t is n o t r a t io n , o r o t h e r b u sin e ss. c o m p r is e d o f d e s ig n a te d p r i m a r y m e t r o p o l i “R epresentative t a n s t a ti s ti c a l a r e a s a s d e fin e d b y th e O ffice o f (k ) or n o m in e e ” m e a n s a p e r s o n w h o se rv e s a s a m a n a g e m e n t o fficial M a n a g e m e n t a n d B u d g e t. a n d h a s a n e x p re s s o r im p lie d o b lig a tio n t o a c t o n b e h a lf o f a n o th e r p e rs o n w ith r e s p e c t to m a n a g e m e n t re s p o n s ib litie s . W h e th e r a p e r SECTION 212.3—General Prohibitions s o n is a “ re p r e s e n ta tiv e o r n o m in e e ” d e p e n d s ( a ) C o m m u n ity . A m a n a g e m e n t o fficial o f a u p o n t h e f a c ts in in d iv id u a l c a se s , a n d t h e a p d e p o s ito r y o r g a n iz a tio n m a y n o t s e rv e a t th e p r o p r ia te f e d e r a l s u p e r v is o r y a g e n c y o r a g e n s a m e tim e a s a m a n a g e m e n t official o f a n o th e r c ie s w ill d e te r m in e , a f te r g iv in g th e a ffe c te d d e p o s ito r y o r g a n i z a ti o n n o t a ffilia te d w ith it p e r s o n s a n o p p o r t u n it y to re s p o n d , w h e th e r a if— p e r s o n is a “ r e p r e s e n ta tiv e o r n o m in e e .” C e r ( 1 ) b o th ta i n re la tio n s h ip s , in c lu d in g fa m ily , e m p lo y e a c h h a s a n office in th e s a m e c o m m u n ity ; a r e d e p o s ito r y i n s ti tu t io n s a n d m e n t, o r a g e n c y r e la tio n s h ip s , o r th e a b ility ( 2 ) offices o f d e p o s ito r y i n s ti tu t io n affili a n d e x e rc is e o f a b ility b y a s h a r e h o ld e r o f a a te s o f b o th a r e lo c a te d in t h e s a m e c o m m u d e p o s ito r y n ity ; o r o r g a n iz a tio n t o e le c t a d i r e c to r m a y b e e v id e n c e o f s u c h a n e x p re s s o r im p lie d ( 3 ) o n e is a d e p o s ito r y i n s ti tu t io n t h a t h a s o b lig a tio n b y t h e m a n a g e m e n t o fficial t o a n a n office in t h e s a m e c o m m u n ity a s a d e p o s o t h e r p e rs o n . F o r t h e p u r p o s e s o f th i s d e fin i i t o r y i n s ti tu t io n a ffilia te o f th e o th e r . tio n , “ p e rso n ” s h a ll in c lu d e o n ly n a tu ra l p e rs o n s . ( b ) M etropolitan sta tistica l area. A m a n a g e m e n t official o f a d e p o s ito r y o r g a n i z a ti o n m a y ( / ) “ T o ta l assets' ’ m e a n s a s s e ts m e a s u r e d o n n o t s e rv e a t t h e s a m e tim e a s a m a n a g e m e n t a c o n s o lid a te d b a s is a s o f th e c lo s e o f th e o r g a official o f a n o t h e r d e p o s ito r y o r g a n i z a ti o n n o t n i z a t io n ’s la s t fisc a l y e a r. T h e “ to t a l a s s e ts ” o f a ffilia te d w ith it i f — a d e p o s ito r y h o ld in g c o m p a n y in c lu d e t h e t o ( 1 ) b o t h a r e d e p o s ito r y in s titu tio n s , e a c h ta l a s s e ts o f a ll o f its s u b s id ia r y a ffiliates, e x h a s a n office in t h e s a m e r e le v a n t m e t r o p o l i c e p t t h a t “ t o t a l a s s e ts ” o f a d iv e rs ifie d s a v in g s t a n s t a ti s ti c a l a re a , a n d e it h e r in s ti tu t io n a n d lo a n h o ld in g c o m p a n y , a s d e fin e d in s e c h a s to t a l a s s e ts o f $ 2 0 m illio n o r m o r e ; ti o n 4 0 8 ( a ) ( 1 ) ( F ) o f th e N a tio n a l H o u s in g ( 2 ) offices o f d e p o s ito r y i n s ti tu t io n affili 2 §212.4 Regulation L a te s o f b o th a r e lo c a te d in t h e s a m e r e le v a n t tie s c le a r in g se rv ic e s a n d s e rv ic e s r e l a te d m e t r o p o l it a n s ta tis tic a l a r e a a n d e it h e r o f t h e d e p o s ito r y in s ti tu t io n affilia te s h a s to t a l th e r e to f o r d e p o s ito r y in s ti tu t io n s , s e c u r i tie s c o m p a n ie s , o r b o th . a s s e ts o f $ 2 0 m illio n o r m o r e ; o r (3 ) o n e is a d e p o s ito r y i n s ti tu t io n t h a t h a s a n office in th e s a m e r e le v a n t m e t r o p o l it a n ( b ) Interlocking relationships permitted by agency order. A m a n a g e m e n t official o r a p r o s t a ti s ti c a l a r e a a s a d e p o s ito r y in s ti tu t io n sp e c tiv e a ffilia te o f t h e o t h e r a n d e it h e r t h e d e p o s ito m e m b e r b a n k , b a n k h o ld i n g c o m p a n y , o r a n m anagem ent o fficial of a s ta te r y in s ti tu t io n o r th e d e p o s ito r y in s ti tu t io n affilia te o f e ith e r, m a y e n te r in t o a n o th e r w is e a ffilia te h a s to t a l a s s e ts o f $ 2 0 m illio n o r p r o h ib ite d in te r lo c k in g r e l a ti o n s h ip w ith a d e m o re . p o s ito r y o r g a n i z a ti o n t h a t fa lls w ith in o n e o f (c ) Major assets. W it h o u t r e g a r d to lo c a tio n , a m a n a g e m e n t o fficial o f a d e p o s ito r y o r g a n i z a ti o n w ith t o t a l a s s e ts e x c e e d in g $ 1 b illio n o r a m a n a g e m e n t o fficia l o f a n y affilia te o f th e g r e a t e r t h a n $1 b illio n d e p o s ito r y o r g a n i z a t i o n m a y n o t s e rv e a t th e s a m e tim e a s a m a n a g e m e n t o fficial o f a n o n a ffilia te d d e p o s ito r y o r g a n iz a tio n w ith t o t a l a s s e ts e x c e e d in g $ 5 0 0 m illio n o r a m a n a g e m e n t official o f a n y affili a te o f th e g r e a t e r t h a n $ 5 0 0 m illio n d e p o s ito r y o rg a n iz a tio n . t h e c la s s if ic a tio n s e n u m e r a te d in th is p a r a g r a p h ( b ) i f t h e f e d e r a l s u p e r v is o r y a g e n c y ( a s s p e c ifie d in s e c tio n 2 0 7 o f th e I n te r lo c k s A c t ) o f t h e o r g a n i z a ti o n t h a t fa lls w ith in o n e o f t h e c la s s if ic a tio n s d e te r m in e s t h a t th e r e l a tio n s h i p m e e ts t h e r e q u i r e m e n ts s e t f o r th in th i s p a r a g r a p h . I f t h e d e p o s ito r y o r g a n iz a tio n t h a t fa lls w ith i n o n e o f th e c la s s if ic a tio n s is n o t s u b je c t t o t h e in t e r l o c k s r e g u la tio n s o f a n y o f t h e f e d e r a l s u p e r v is o r y a g e n c ie s, t h e n th e B o a r d s h a ll d e te r m i n e w h e th e r th e r e l a ti o n s h ip m e e ts t h e r e q u i r e m e n ts o f th i s p a r a g r a p h . ( 1 ) Organization in low-income area; m i nority or women's organization. A p e rs o n SECTION 212.4—Permitted Interlocking Relationships m a y s e rv e a t t h e s a m e ti m e a s a m a n a g e m e n t official o f tw o o r m o r e d e p o s ito r y o r Interlocking relationships permitted by statute. T h e p r o h ib itio n s o f s e c tio n 2 1 2 .3 d o (a ) g a n iz a tio n s ( o r a ffilia te s t h e r e o f ) i f o n e o f t h e d e p o s ito r y o r g a n i z a ti o n s is ( i ) lo c a te d , n o t a p p ly in t h e c a s e o f a n y o n e o r m o r e o f th e o r to b e lo c a te d , in a lo w -in c o m e o r o th e r f o l l o w i n g o r g a n i z a t i o n s o r th e i r s u b s id ia r ie s : e c o n o m ic a lly d e p r e s s e d a re a , o r ( i i ) c o n ( 1 ) a d e p o s ito r y o rg a n iz a tio n t h a t d o e s n o t tr o ll e d d o b u s in e s s w ith in th e U n ite d S ta te s e x c e p t m e m b e r s o f m in o r i ty g r o u p s o r b y w o m e n , a s a n in c i d e n t to its a c tiv itie s o u ts id e th e s u b je c t to t h e fo llo w in g c o n d itio n s : ( A ) th e U n ite d S ta te s; r e l a ti o n s h ip is n e c e s s a ry to p r o v id e m a n ( 2 ) a c o r p o r a ti o n o p e r a tin g u n d e r s e c tio n a g e m e n t o r o p e r a t in g e x p e r tis e to th e o r g a o r m a n a g e d b y p e rso n s w h o a re 25 o r 2 5 ( a ) o f t h e F e d e r a l R e s e rv e A c t n iz a t io n s p e c ifie d in ( i ) o r ( i i ) a b o v e ; ( B ) ( “Edge n o in te r lo c k in g r e l a ti o n s h ip p e r m it te d b y C o r p o r a t io n s ” and “ A g re e m e n t C o r p o r a t io n s ” ) ; (3 ) a d e p o s ito r y th is p a r a g r a p h s h a ll c o n ti n u e f o r m o r e t h a n o rg a n iz a tio n th a t has five y e a rs ; a n d ( C ) o t h e r c o n d itio n s in a d b e e n p la c e d fo r m a lly in liq u id a tio n , o r t h a t d itio n to , o r in lie u of, t h e f o r e g o in g m a y b e is in t h e h a n d s o f a re c e iv e r, c o n s e r v a to r , o r im p o s e d b y th e a p p r o p r ia t e f e d e r a l s u p e r v i o t h e r o fficial e x e rc is in g a s im ila r f u n c tio n ; s o r y a g e n c y in a n y sp e c ific c ase. Newly chartered organization. A p e r ( 4 ) a c r e d i t u n io n b e in g s e rv e d b y a m a n (2 ) a g e m e n t o fficial o f a n o th e r c r e d it u n io n ; s o n m a y se rv e a t t h e s a m e tim e a s a m a n (5 ) a a g e m e n t o fficial o f tw o o r m o r e d e p o s ito r y s t a te - c h a r te r e d sa v in g s and lo a n g u a r a n t y c o r p o r a tio n ; o r o rg a n iz a tio n s i f o n e o f t h e d e p o s ito r y o r g a (6 ) a F e d e ra l H o m e L o an B an k o r any n iz a tio n s ( o r a n a ffilia te th e r e o f ) is a n e w ly o t h e r b a n k o r g a n iz e d so le ly f o r th e p u r p o s e c h a r t e r e d o r g a n iz a tio n , s u b je c t t o t h e fo l o f s e r v in g lo w in g c o n d itio n s : d e p o s ito r y in s ti tu t io n s (c o m ( i ) t h e r e l a ti o n s h ip is m o n ly r e f e r r e d to a s “ b a n k e r s ’ b a n k s ” ) o r n e c e s s a ry to p r o v id e m a n a g e m e n t o r o p e r s o le ly f o r t h e p u r p o s e o f p ro v id in g s e c u r i a ti n g e x p e rtis e to t h e n e w ly c h a r t e r e d o rg a - 3 Regulation L §212.4 n iz a tio n ; ( i i) n o in te r lo c k in g r e la tio n s h ip fr o m p e r m it te d b y th is s u b p a r a g r a p h s h a ll c o n s ta n c e s , ti n u e fo r m o r e th a n tw o y e a r s a f t e r th e m u s t h a v e o c c u r r e d w ith i n a 15- m o n th p e n e w ly c h a r t e r e d o r g a n iz a tio n c o m m e n c e s rio d ; a n d ( i v ) t h e d e p o s ito r y o r g a n iz a tio n b u s in e s s ; a n d ( i ii ) o th e r c o n d itio n s in a d d i d e v e lo p s a p la n f o r t h e o r d e r ly te r m i n a ti o n ti o n to , o r in lie u of, th e f o r e g o in g m a y b e o f s e rv ic e b y e a c h s u c h m a n a g e m e n t official im p o s e d b y th e a p p r o p r ia t e f e d e r a l s u p e r v i o v e r a p e r io d n o t lo n g e r t h a n 30 m o n t h s s o r y a g e n c y in a n y sp ecific case. a f t e r t h e c h a n g e in c ir c u m s ta n c e s w h ic h Conditions endangering safety or soundness. A p e r s o n m a y se rv e a t th e s a m e c a u s e d t h e p e r s o n ’s s e rv ic e to b e c o m e p r o ti m e a s a m a n a g e m e n t official o f tw o o r c ia ls is t h e r e s u lt o f m o r e t h a n o n e c h a n g e m o r e d e p o s ito r y o r g a n iz a tio n s ( o r a ffiliates in c ir c u m s ta n c e s , th e 3 0 - m o n th p e r io d is t h e r e o f ) if o n e o f th e d e p o s ito r y o r g a n i z a m e a s u r e d fr o m th e firs t c h a n g e in c ir c u m tio n s fa c e s c o n d itio n s e n d a n g e r in g t h e o r g a s t a n c e s ) . O t h e r c o n d itio n s in a d d it io n to , o r n i z a t io n ’s s a f e ty o r s o u n d n e s s , s u b je c t to in lie u of, t h e f o r e g o in g m a y b e im p o s e d b y th e fo llo w in g c o n d itio n s : ( i ) th e r e l a ti o n th e a p p r o p r ia t e fe d e r a l s u p e r v is o r y a g e n c y . (3 ) m o re th a n such o n e c h a n g e in changes in c ir c u m c ir c u m s ta n c e s h ib ite d ( b u t i f th e lo s s o f m a n a g e m e n t offi s h ip is n e c e s s a ry to p ro v id e m a n a g e m e n t o r I n e v a lu a tin g re q u e s ts m a d e p u r s u a n t to o p e r a t in g th i s s u b p a r a g r a p h , th e a p p r o p r ia t e fe d e r a l e x p e rtis e to su ch o r g a n iz a tio n or s u p e r v is o r y a g e n c y w ill p r e s u m e t h a t a d i s o u n d n e s s ; a n d ( i i ) o th e r c o n d itio n s in a d r e c t o r w h o a ls o is a p a id , f u ll-tim e e m p lo y d it io n to , o r in lie u of, th e fo r e g o in g m a y b e ee o f th e d e p o s ito r y o r g a n iz a tio n , a b s e n t fa c in g c o n d itio n s e n d a n g e r in g s a fe ty im p o s e d b y t h e a p p r o p r ia t e fe d e r a l s u p e r v i u n u s u a l c ir c u m s ta n c e s , w ill n o t re s ig n fr o m s o r y a g e n c y in a n y sp ecific case. t h e p o s itio n o f d i r e c to r w ith t h a t d e p o s ito r y Organization sponsoring credit union. o r g a n iz a tio n . T h is p r e s u m p ti o n m a y , h o w A m a n a g e m e n t o fficial o f a d e p o s ito r y o r g a e v e r, b e r e b u t te d b y a s h o w in g t h a t s u c h n iz a t io n o r its affiliate m a y s e rv e a t th e u n u s u a l c ir c u m s ta n c e s e x ist. (4 ) s a m e tim e a s a m a n a g e m e n t official o f a f e d e ra lly in s u r e d c r e d i t u n io n t h a t is s p o n s o r e d b y th e d e p o s ito r y o r g a n iz a tio n o r its affili a te p r i m a r i ly t o se rv e e m p lo y e e s o f t h e d e p o s ito r y o rg a n iz a tio n . Loss o f management officials due to changes in circumstances. I f a d e p o s ito r y (5 ) o r g a n i z a ti o n is lik e ly to lo s e 30 p e r c e n t o r m o r e o f its d ir e c to r s o r o f its to t a l m a n a g e m e n t o fficials d u e to a c h a n g e in c ir c u m s ta n c e s d e s c r ib e d in s e c tio n 2 1 2 .6 o f th is p a r t , th e a ffe c te d m a n a g e m e n t officials m a y c o n ti n u e to se rv e in e x c e ss o f t h e tim e p e r i ods s p e c ifie d in s e c tio n 2 1 2 .6 , p ro v id e d th a t : ( i ) th e d e p o s ito r y o r g a n i z a ti o n ’s p r o s p e c tiv e lo s s o f m a n a g e m e n t officia ls o r d i r e c t o r s w ill b e d is r u p tiv e to th e in t e r n a l m a n a g e m e n t o f th e d e p o s ito r y o n s t r a te s th a t , a b s e n t a g r a n t o f r e lie f in w ith th is w h o s e rv e s a s a m a n a g e m e n t o fficial o f a d e p o s ito r y o r g a n i z a ti o n a n d o f a n o n d e p o s ito r y o r g a n i z a ti o n ( o r a n y s u b s id ia r y t h e r e o f ) is n o t p r o h i b it e d f r o m c o n ti n u in g t h e in t e r l o c k in g s e rv ic e w h e n t h e n o n d e p o s i to r y o r g a n i z a ti o n b e c o m e s a d iv e rs ifie d sa v in g s a n d lo a n h o ld in g com pany, as d e fin e d in s e c tio n 4 0 8 ( a ) ( 1 ) ( F ) o f t h e N a tio n a l H o u s in g A c t (1 2 U S C 1 7 3 0 a ( a ) ( l ) ( F ) ) , a n d m a y c o n ti n u e to s e rv e u n t i l N o v e m b e r 10, 1988, d e s p ite th e o c c u r r e n c e o f a n y s u b s e q u e n t c h a n g e s in c ir c u m s ta n c e s , w h e th e r o r n o t th o s e c h a n g e s in c ir c u m s ta n c e s o c c u r r e d p r i o r to N o v e m b e r 30, 1983. o rg a n iz a tio n ; ( i i ) t h e d e p o s ito r y o r g a n i z a ti o n d e m a c c o rd a n c e ( c ) Diversified savings and loan holding com pany. N o t w ith s ta n d i n g s e c tio n 2 1 2 .3 , a p e r s o n su b p a ra g ra p h , 30 SECTION 212.5—Grandfathered Interlocking Relationships p e r c e n t o r m o r e o f e it h e r its d ir e c to r s o r A p e r s o n w h o s e in te r lo c k in g s e r v ic e in a p o s i m a n a g e m e n t o fficials a r e se v e r ti o n a s a m a n a g e m e n t o fficial o f tw o o r m o r e th e i r in te r lo c k in g r e la tio n s h ip s w ith th e d e d e p o s ito r y o r g a n iz a tio n s b e g a n p r i o r to N o p o s ito r y o rg a n iz a tio n ; ( i ii ) i f th e p r o s p e c v e m b e r 10, 1978, a n d w a s n o t im m e d ia te ly tiv e lo s se s o f m a n a g e m e n t officia ls r e s u lte d p r i o r to t h a t d a te in v io la tio n o f s e c tio n 8 o f 4 lik e ly to Regulation L §212.8 th e C la y to n A c t ( 1 5 U S C 1 9 ) is n o t p r o h i b it t h e c h a n g e in c ir c u m s ta n c e s t h a t c a u s e d th e e d fr o m c o n ti n u in g to s e rv e in s u c h i n t e r l o c k i n t e r l o c k to b e c o m e p r o h i b it e d o c c u r r e d , u n in g p o s itio n s u n ti l N o v e m b e r 10, 1988. A n y le ss th e a p p r o p r ia t e f e d e r a l s u p e r v is o r y a g e n m a n a g e m e n t o fficial w h o h a s b e e n r e q u i r e d to c y o r a g e n c ie s ta k e a ff irm a tiv e a c ti o n in a n te r m i n a te o r w h o h a s te r m i n a te d s e rv ic e in in d iv id u a l c a s e t o e s ta b lis h a s h o r t e r p e rio d . o n e o r m o r e s u c h in te r lo c k in g p o s itio n s a s a r e s u lt o f a m e r g e r , a c q u is itio n , c o n s o lid a tio n , o r e s ta b lis h m e n t o f a n office t h a t f o r m e r ly w a s C F R 2 1 2 .6 ( a ) (1 9 8 1 ) is n o t p r o h i b it e d f r o m SECTION 212.7—Effect of Interlocks Act on Clayton Act c o n tin u in g o r re s u m in g s u c h s e rv ic e u n ti l N o T h e B o a r d o f G o v e r n o r s o f th e F e d e r a l R e d e fin e d a s a c h a n g e in c ir c u m s ta n c e s in 12 v e m b e r 10, 1988. se rv e S y s te m r e g a r d s t h e p ro v is io n s o f th e firs t th r e e p a r a g r a p h s o f s e c tio n 8 o f th e C la y to n SECTION 212.6—Changes in Circumstances (a ) Nongrandfathered interlocks. I f a p e r s o n ’s se rv ic e a s a m a n a g e m e n t o fficial is n o t A c t (1 5 U S C 1 9 ) to h a v e b e e n s u p p la n te d b y t h e r e v is e d a n d m o r e c o m p r e h e n s iv e p r o h i b i tio n s o n m a n a g e m e n t officia l in te r lo c k s b e tw e e n d e p o s ito r y o r g a n iz a tio n s in t h e I n t e r lo c k s A c t. g r a n d f a th e r e d u n d e r s e c tio n 2 1 2 .5 o f th is p a r t , th e p e r s o n ’s s e rv ic e m u s t b e te r m i n a te d i f a c h a n g e in c ir c u m s ta n c e s c a u s e s s u c h s e rv ic e to b e c o m e p ro h ib ite d . S u c h a c h a n g e m a y i n c lu d e , b u t is n o t lim ite d to , a n in c r e a s e in a s SECTION 212.8—Enforcement T h e B o a rd o f G o v e rn o rs o f th e F e d e ra l R e s e t siz e o f a n o r g a n iz a tio n d u e to n a t u r a l se rv e S y s te m a d m i n is te r s a n d e n fo r c e s th e I n g r o w th , a c h a n g e in r e le v a n t m e t r o p o l it a n s t a te r lo c k s A c t w ith r e s p e c t to s t a te m e m b e r tis tic a l a r e a o r c o m m u n ity b o u n d a r ie s , o r th e b a n k s , b a n k h o ld in g c o m p a n ie s , a n d th e i r a f d e s ig n a tio n o f a n e w r e le v a n t m e t r o p o l it a n filia te s, a n d m a y r e f e r t h e c a s e o f a p r o h ib ite d s ta tis tic a l a re a , a n a c q u is itio n , m e r g e r, o r c o n in te r lo c k in g r e l a ti o n s h ip in v o lv in g a n y s u c h s o lid a tio n , th e e s ta b lis h m e n t o f a n office, o r a o r g a n iz a tio n , r e g a r d le s s o f t h e n a t u r e o f a n y d is a ffilia tio n . o t h e r o r g a n i z a ti o n in v o lv e d in t h e p r o h ib ite d r e la tio n s h ip , t o t h e A tto r n e y G e n e r a l o f th e (b ) Grace period. I f a p e r s o n ’s n o n g r a n d f a U n ite d S ta te s to e n fo r c e c o m p lia n c e w ith th e t h e r e d s e rv ic e a s a m a n a g e m e n t o fficial b e I n t e r lo c k s A c t a n d th i s p a r t . I f a n affilia te o f a c o m e s p r o h i b it e d u n d e r p a r a g r a p h ( a ) o f th is s t a te m e m b e r b a n k o r b a n k h o ld in g c o m p a n y s e c tio n , t h e p e r s o n m a y c o n tin u e t o s e rv e a s a is p r i m a r i ly s u b je c t to t h e r e g u l a ti o n o f a n o t h m a n a g e m e n t o fficial o f a ll o r g a n iz a tio n s i n e r f e d e r a l s u p e r v is o r y a g e n c y , t h e n t h e B o a r d v o lv e d in th e p r o h ib ite d in te r lo c k in g r e l a ti o n d o e s n o t a d m i n is te r a n d e n fo r c e t h e I n t e r s h ip u n ti l 15 m o n t h s a f te r th e d a te o n w h ic h lo c k s A c t w ith r e s p e c t to t h a t affiliate. 5 Depository Institutions Management Interlocks Act 12 U S C 32 0 1 e t seq .; 9 2 S tat. 3 6 7 2 ; P u b . L . 9 5 - 6 3 0 , F in a n c ia l I n s t itu t io n s R e g u la t o r y a n d I n te r e s t R a te C o n tr o l A c t, T itle I I (N o v e m b e r 10, 1 9 7 8 ) FIRA, TITLE II—Interlocking Directors in g s to c k o f o n e c o r p o r a ti o n is b e n e fic ia l ly o w n e d in t h e a g g r e g a te b y o n e o r m o r e p e r s o n s w h o a ls o b e n e fic ia lly o w n in th e a g g r e g a te m o r e t h a n 50 p e r c e n tu m o f SECTION 201—Short Title T h is title m a y b e c ite d a s th e “ D e p o s ito r y I n s t it u ti o n M a n a g e m e n t I n t e r lo c k s A c t ” . th e v o tin g s t o c k o f t h e o t h e r c o r p o r a tio n ; or ( C ) o n e o f th e c o r p o r a ti o n s is a t r u s t c o m p a n y a ll o f t h e s to c k o f w h ic h , e x c e p t [12 USC 3201 note.] fo r d ir e c to r s q u a lif y in g sh a re s, w as o w n e d b y o n e o r m o r e m u t u a l sa v in g s b a n k o n t h e d a te o f e n a c t m e n t o f th is SECTION 202—Definitions A c t, a n d t h e o t h e r c o r p o r a ti o n is a m u t u a l s a v in g s b a n k ; o r A s u s e d in th is ti tl e — ( 1 ) th e te r m “ depository institution ” m e a n s a c o m m e r c ia l b a n k , a sa v in g s b a n k , a t r u s t c o m p a n y , a sa v in g s a n d lo a n a s s o c ia tio n , a b u ild in g a n d lo a n a s s o c ia tio n , a h o m e s te a d a s s o c ia tio n , a c o o p e ra tiv e b a n k , a n i n d u s t r i a l b a n k , o r a c r e d i t u n io n ; (2 ) th e te r m “ depository holding compa ny ” m e a n s a b a n k h o ld in g c o m p a n y a s d e fin e d in s e c tio n 2 ( a ) o f th e B a n k H o ld in g C o m p a n y A c t o f 1956, a c o m p a n y w h ic h w o u ld b e a b a n k h o ld in g c o m p a n y a s d e fin e d in s e c tio n 2 ( a ) o f th e B a n k H o ld in g C o m p a n y A c t o f 1956 b u t f o r t h e e x e m p ti o n c o n ta i n e d in s e c tio n 2 ( a ) ( 5 ) ( F ) t h e r e ( D ) o n e o f t h e c o r p o r a ti o n s is a b a n k , in s u r e d b y t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n a n d c h a r t e r e d u n d e r S ta te la w , t h e v o tin g s e c u r itie s o f w h ic h a r e h e ld b y o t h e r b a n k s , a s p e r m it te d b y S ta te la w , a n d w h ic h b a n k is p r im a r ily e n g a g e d in p r o v id in g b a n k in g s e rv ic e s fo r o t h e r b a n k s a n d n o t t h e p u b lic : Provided, however, T h a t in n o c a s e s h a ll th e v o tin g s e c u r itie s o f s u c h c o r p o r a ti o n b e h e ld b y a n y s u c h o t h e r b a n k in e x c e ss o f 5 p e r c e n tu m o f t h e p a id - in c a p it a l a n d 5 p e r c e n tu m o f t h e s u r p lu s o f s u c h o t h e r b a n k ; or o f, o r a s a v in g s a n d lo a n h o ld in g c o m p a n y ( E ) o n e o f t h e c o r p o r a ti o n s is a b a n k , a s d e fin e d in s e c tio n 4 0 8 ( a ) ( 1 ) ( d ) o f th e c h a r t e r e d u n d e r S ta te la w a n d in s u r e d b y N a tio n a l H o u s in g A c t; t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a ( 3 ) th e c h a r a c t e r i z a tio n o f a n y c o r p o r a ti o n tio n , t h e v o tin g s e c u r itie s o f w h ic h a r e ( in c lu d i n g d e p o s ito r y in s ti tu t io n s a n d d e h e ld o n ly b y p e r s o n s w h o a r e o fficers o f p o s ito r y h o ld in g c o m p a n ie s ) , a s a n “ affili o t h e r b a n k s , a s p e r m it te d b y S ta te la w , a te o f ,” o r a s “ a ffilia te d ” w ith a n y o t h e r a n d w h ic h b a n k is p r i m a r i ly e n g a g e d in c o r p o r a ti o n m e a n s t h a t — p ro v id in g b a n k in g se rv ic e s fo r o th e r Provided, how ( A ) o n e o f th e c o r p o r a ti o n s is a d e p o s i b a n k s a n d n o t t h e p u b lic : to r y h o ld in g c o m p a n y a n d th e o t h e r is a ever, T h a t in n o c a s e s h a ll th e v o tin g se s u b s id ia r y th e r e o f, o r b o th c o r p o r a ti o n s c u r itie s o f s u c h c o r p o r a ti o n b e h e ld b y a r e s u b s id ia r ie s o f t h e s a m e d e p o s ito r y s u c h o fficers o f t h e o t h e r b a n k s in ex c e ss h o ld in g c o m p a n y , a s t h e te r m “ s u b s id i o f 6 p e r c e n tu m o f t h e p a id - in c a p it a l a n d a r y ” is d e fin e d in e it h e r s e c tio n 2 ( d ) o f 6 p e r c e n tu m o f t h e s u r p lu s o f s u c h a th e B a n k H o ld in g C o m p a n y A c t o f 1956 bank. t h e te r m “ management official” m e a n s in th e c a s e o f a b a n k h o ld in g c o m p a n y o r (4 ) s e c tio n 4 0 8 ( a ) ( 1 ) ( H ) o f th e N a tio n a l a n e m p lo y e e o r o fficer w ith m a n a g e m e n t H o u s in g A c t in th e c a s e o f a sa v in g s a n d fu n c tio n s , a d i r e c to r ( in c lu d i n g a n a d v is o r y lo a n h o ld in g c o m p a n y ; o r o r h o n o r a r y d i r e c t o r ) , a t r u s te e o f a b u s i ( B ) m o r e t h a n 5 0 p e r c e n tu m o f t h e v o t n ess o r g a n i z a ti o n under th e c o n tr o l of 7 Regulation L (Statutory Provisions) §202 tr u s te e s , o r a n y p e r s o n w h o h a s a r e p r e s e n t a n d B u d g e t, e x c e p t in t h e c a s e o f d e p o s ito r y a tiv e o r n o m in e e s e rv in g in a n y s u c h c a p a c in s ti tu t io n s w ith le ss t h a n $ 2 0 ,0 0 0 ,0 0 0 in Provided, T h a t i f a c o r p o r a to r , tr u s te e , a s s e ts in w h ic h c a s e th e p ro v is io n o f p a r a d ir e c to r , o r o t h e r o fficer o f a S ta t e - c h a r g r a p h ( 2 ) s h a ll a p p ly , a s t h a t in w h ic h a n te r e d s a v in g s b a n k o r c o o p e r a tiv e b a n k is office o f t h e o t h e r in s ti tu t io n o r a n y d e p o s i s p e c ific a lly a u th o r iz e d u n d e r t h e la w s o f th e to r y in s ti tu t io n t h a t is a n affilia te o f s u c h S ta te in w h ic h s a id in s ti tu t io n is lo c a te d to o t h e r i n s ti tu t io n is lo c a te d , o r ity : s e r v e a s a tr u s te e , d ir e c to r , o r o t h e r o fficer (2 ) o f a S ta t e - c h a r te r e d t r u s t c o m p a n y w h ic h in w h ic h a n office o f t h e o t h e r in s ti tu t io n o r t h e s a m e c ity , to w n , o r v illa g e a s t h a t d o e s n o t m a k e r e a l e s ta te m o r tg a g e lo a n s a n y d e p o s ito r y in s ti tu t io n t h a t is a n a ffilia te a n d d o e s n o t a c c e p t s a v in g s d e p o s its fr o m o f s u c h o t h e r in s ti tu t io n is lo c a te d , o r in n a t u r a l p e rs o n s , th e n , f o r th e p u r p o s e s o f a n y c ity , to w n , o r v illa g e c o n tig u o u s o r a d th i s title , s u c h c o r p o r a to r , tr u s te e , d ir e c to r , j a c e n t th e r e to . o r o t h e r o fficer s h a ll n o t b e d e e m e d to b e a m a n a g e m e n t o fficial o f s u c h t r u s t c o m p a n y : [12 USC 3202. As amended by act of Nov. 30, 1983 (97 Stat. 1267).] A nd provided further, T h a t i f a m a n a g e m e n t o fficia l o f a S ta te - c h a r te r e d t r u s t c o m p a n y w h ic h d o e s n o t m a k e r e a l e s ta te m o r tg a g e lo a n s a n d d o e s n o t a c c e p t sa v in g s d e p o s its f r o m n a t u r a l p e rs o n s is s p e c ific a lly a u t h o r iz e d u n d e r t h e la w s o f th e S ta te in w h ic h SECTION 204—Management Official of $1 Billion Institution or Company as Management Official of Unaffiliated Institution or Company s a id in s ti tu t io n is lo c a te d to se rv e a s a c o r p o r a t o r , tr u s te e , d ir e c to r , o r o t h e r o fficer o f I f a d e p o s ito r y i n s ti tu t io n a S ta t e - c h a r te r e d s a v in g s b a n k o r c o o p e r a h o ld in g c o m p a n y h a s t o t a l a s s e ts e x c e e d in g o r a d e p o s ito r y tiv e b a n k , th e n , f o r th e p u r p o s e s o f th i s t i $ 1 ,0 0 0 ,0 0 0 ,0 0 0 , a m a n a g e m e n t o fficial o f s u c h tle , s u c h m a n a g e m e n t official s h a ll n o t b e i n s ti tu t io n o r a n y affilia te th e r e o f m a y n o t d e e m e d t o b e a m a n a g e m e n t o fficial o f a n y se rv e a s a m a n a g e m e n t officia l o f a n y o th e r s u c h sa v in g s b a n k o r c o o p e r a tiv e b a n k ; a n d n o n a ff ilia te d d e p o s ito r y i n s ti tu t io n o r d e p o s i th e te r m “ office” u s e d w ith re f e re n c e to r y h o ld i n g c o m p a n y h a v in g t o t a l a s s e ts e x t o a d e p o s ito r y in s ti tu t io n m e a n s e it h e r a c e e d in g $ 5 0 0 ,0 0 0 ,0 0 0 o r a s a m a n a g e m e n t o f p r in c ip a l o ffice o r a b r a n c h . ficial o f a n y a ffilia te o f s u c h o t h e r in s titu tio n . (5 ) [12 USC 3201.] [12 USC 3203.] SECTION 203—Management Official of Unaffiliated Institution or Company in Same Area SECTION 205—Exceptions A m a n a g e m e n t o fficial o f a d e p o s ito r y in s t i t u o r m o r e o f t h e fo llo w in g o r s u b s id ia r y th e r e o f: T h e p r o h i b it io n s c o n ta i n e d in s e c tio n s 203 a n d 2 0 4 s h a ll n o t a p p ly in th e c a s e o f a n y o n e ti o n o r a d e p o s ito r y h o ld in g c o m p a n y m a y n o t ( 1 ) A d e p o s ito r y i n s ti tu t io n o r d e p o s ito r y s e rv e a s a m a n a g e m e n t o fficial o f a n y o t h e r h o ld in g c o m p a n y w h ic h h a s b e e n p la c e d d e p o s ito r y in s ti tu t io n o r d e p o s ito r y h o ld in g f o r m a lly in liq u id a tio n , o r w h ic h is in th e c o m p a n y n o t a ffilia te d th e r e w i th i f a n office o f h a n d s o f a re c e iv e r, c o n s e r v a to r , o r o th e r o n e o f th e in s ti tu t io n s o r a n y d e p o s ito r y in s ti official e x e rc is in g a s im ila r fu n c tio n . tu t i o n t h a t is a n a ffiliate o f s u c h in s ti tu t io n s is ( 2 ) A c o r p o r a ti o n o p e r a t in g u n d e r s e c tio n lo c a te d w ith in e ith e r — 25 o r 2 5 ( a ) o f t h e F e d e r a l R e s e rv e A c t. (1 ) t h e s a m e p r i m a r y m e t r o p o l it a n s t a ti s ti c a l a re a , th e s a m e m e t r o p o l it a n s ta tis tic a l ( 3 ) A c r e d i t u n io n b e in g s e r v e d b y a m a n a g e m e n t o fficial o f a n o t h e r c r e d i t u n io n . a re a , o r t h e s a m e c o n s o lid a te d m e t r o p o l it a n ( 4 ) A d e p o s ito r y i n s ti tu t io n o r d e p o s ito r y s ta tis tic a l a r e a t h a t is n o t c o m p r is e d o f d e s h o ld in g c o m p a n y w h ic h d o e s n o t d o b u s i ig n a te d p r i m a r y m e t r o p o l it a n s t a ti s ti c a l a r n e s s w ith i n a n y S ta te o f t h e U n ite d S ta te s , e a s a s d e fin e d b y th e O ffice o f M a n a g e m e n t t h e D is t r i c t o f C o lu m b ia , a n y t e r r i t o r y o f Regulation L (Statutory Provisions) th e U n ite d S ta te s , P u e rto §209 R ic o , G uam , 4 0 8 (a ) o f th e N a tio n a l H o u s in g A c t. T h is A m e r i c a n S a m o a , o r t h e V irg in I s la n d s e x s u b s e c tio n s h a ll e x p ir e t e n y e a r s a f t e r t h e d a te c e p t a s a n in c i d e n t to its a c tiv itie s o u ts id e o f e n a c t m e n t o f th i s title . th e U n ite d S ta te s. (5 ) A S ta t e - c h a r te r e d sa v in g s and lo a n [12 USC 3205. As amended by act of Dec. 26, 1981 (95 Stat. 1515).] g u a r a n t y c o r p o r a tio n . (6 ) A F e d e ra l H o m e L o an B ank o r any o t h e r b a n k o r g a n iz e d sp e c ific a lly to se rv e d e p o s ito r y in s titu tio n s . [12 USC 3204. As amended by act of Oct. 15, 1982 (96 Stat. 1524).] SECTION 207—Administration and Enforcement T h is t i tl e s h a ll b e a d m i n is te r e d a n d e n fo r c e d by— ( 1 ) t h e C o m p t r o ll e r o f t h e C u r r e n c y w ith re s p e c t t o n a ti o n a l b a n k s a n d b a n k s lo c a te d SECTION 206—Management Official in Position Prior to November 10, 1978 in t h e D i s t r i c t o f C o lu m b ia , ( a ) A p e r s o n w h o s e se rv ic e in a p o s itio n a s a R e s e rv e S y s te m w ith r e s p e c t to S ta te b a n k s m a n a g e m e n t o fficial b e g a n p r i o r t o th e d a te o f w h ic h a r e m e m b e r s o f t h e F e d e r a l R e s e rv e e n a c t m e n t o f th i s t i tl e a n d w h o w a s n o t im m e S y s te m , a n d b a n k h o ld i n g c o m p a n ie s , (2 ) th e B o a rd o f G o v e rn o rs o f th e F e d e ra l d ia te ly p r i o r to t h e d a te o f e n a c t m e n t o f th is ( 3 ) t h e B o a r d o f D ir e c t o r s o f t h e F e d e r a l t i tl e in v io la tio n o f s e c tio n 8 o f th e C la y to n D e p o s it A c t is n o t p r o h i b it e d b y s e c tio n 2 0 3 o r s e c tio n s p e c t to S ta te b a n k s w h ic h a r e n o t m e m b e rs In su ra n c e C o r p o r a t io n w ith re 2 0 4 o f th is t i tl e fr o m c o n tin u in g to s e r v e in o f t h e F e d e r a l R e s e r v e S y s te m b u t th e d e t h a t p o s itio n f o r a p e r io d o f te n y e a rs a f t e r th e p o s its o f w h ic h a r e i n s u r e d b y t h e F e d e r a l d a te o f e n a c t m e n t o f th is title . T h e a p p r o p r i D e p o s it I n s u r a n c e C o r p o r a t io n , a te F e d e r a l b a n k in g a g e n c y ( a s s e t f o r t h in ( 4 ) th e F e d e r a l H o m e L o a n B a n k B o a rd s e c tio n 2 0 9 ) m a y p r o v id e a r e a s o n a b le p e r io d w ith r e s p e c t to in s ti tu t io n s t h e a c c o u n ts o f o f tim e f o r c o m p lia n c e w ith th is title , n o t e x w h ic h a r e in s u r e d b y t h e F e d e r a l S a v in g s c e e d in g fifte e n m o n th s , a f t e r a n y c h a n g e in a n d L o a n I n s u r a n c e C o r p o r a t io n , a n d s a v c ir c u m s ta n c e s w h ic h m a k e s s e rv ic e d e s c r ib e d in g s a n d lo a n h o ld i n g c o m p a n ie s , in t h e p r e c e d in g s e n te n c e p r o h ib ite d b y th i s title , e x c e p t t h a t a m e r g e r, a c q u is itio n , i n t r a t i o n w ith r e s p e c t to c r e d i t u n io n s th e a c c re a s e in to t a l a s s e ts , e s ta b lis h m e n t o f o n e o r c o u n ts o f w h ic h a r e in s u r e d b y t h e N a tio n a l m o r e offices, o r c h a n g e in m a n a g e m e n t r e C r e d it U n io n A d m in i s t r a ti o n , a n d ( 5 ) th e N a tio n a l C r e d it U n io n A d m in is s p o n s ib ilitie s s h a ll n o t c o n s t it u te c h a n g e s in ( 6 ) u p o n r e f e r r a l b y t h e a g e n c ie s n a m e d in c ir c u m s ta n c e s w h ic h w o u ld m a k e s u c h s e rv ic e t h e f o r e g o in g p a r a g r a p h s ( 1 ) th r o u g h ( 5 ) , p r o h i b it e d b y s e c tio n 203 o r s e c tio n 2 0 4 o f th e A t to r n e y G e n e r a l s h a ll h a v e t h e a u t h o r th i s title . ity to e n fo r c e c o m p lia n c e b y a n y p e r s o n w ith th i s title . ( b ) E ffe c tiv e o n t h e d a te o f e n a c t m e n t o f th i s title , a p e r s o n w h o se rv e s a s a m a n a g e m e n t o fficial o f a c o m p a n y w h ic h is n o t a d e p o s ito r y [12 USC 3206.] * * * * * in s ti tu t io n o r a d e p o s ito r y h o ld in g c o m p a n y a n d a s a m a n a g e m e n t o fficial o f a d e p o s ito r y in s ti tu t io n o r a d e p o s ito r y h o ld in g c o m p a n y is n o t p r o h i b it e d fr o m c o n tin u in g to se rv e a s a m a n a g e m e n t o fficial o f t h a t d e p o s ito r y in s t i t u SECTION 209—Rules and Regulations R u le s a n d r e g u la tio n s to c a r r y o u t th i s title , ti o n o r d e p o s ito r y h o ld in g c o m p a n y a s a r e in c lu d in g ru le s o r r e g u la tio n s w h ic h p e r m it s u l t o f t h a t c o m p a n y w h ic h is n o t a d e p o s ito r y s e r v ic e b y a m a n a g e m e n t officia l w h ic h w o u ld in s ti tu t io n o r d e p o s ito r y h o ld in g c o m p a n y b e o th e r w is e b e p r o h i b it e d b y s e c tio n 2 0 3 o r s e c c o m in g a d iv e rs ifie d s a v in g s a n d lo a n h o ld in g tio n 2 0 4 , m a y b e p r e s c r ib e d b y — c o m p a n y a s t h a t te r m is d e fin e d in s e c tio n ( 1 ) th e C o m p t r o ll e r o f th e C u r r e n c y w ith 9 §209 Regulation L (Statutory Provisions) r e s p e c t t o n a ti o n a l b a n k s a n d b a n k s lo c a te d in th e D is t r i c t o f C o lu m b ia . (2 ) th e B o a rd o f G o v e rn o rs o f th e F e d e ra l SECTION 210—Functions and Powers of Attorney General and Assistant Attorney General R e s e rv e S y s te m w ith r e s p e c t to S ta te b a n k s ( a ) F o r t h e p u r p o s e o f th e e x e rc is e b y th e w h ic h a r e m e m b e r s o f th e F e d e r a l R e s e rv e A t to r n e y G e n e r a l o f h is e n f o r c e m e n t f u n c S y s te m , a n d b a n k h o ld in g c o m p a n ie s . tio n s u n d e r s e c tio n 2 0 7 ( 6 ) o f th i s title , a ll o f th e fu n c tio n s a n d ( 3 ) t h e B o a r d o f D ir e c t o r s o f t h e F e d e r a l D e p o s it In su ra n c e C o r p o r a t io n w ith re s p e c t t o S ta te b a n k s w h ic h a r e n o t m e m b e r s o f t h e F e d e r a l R e s e rv e S y s te m b u t t h e d e p o s its o f w h ic h a r e in s u r e d b y t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n . p o w e rs o f t h e A t to r n e y G e n e r a l u n d e r t h e C la y to n A c t a r e a v a ila b le to th e A tt o r n e y G e n e r a l, ir r e s p e c tiv e o f a n y j u r is d i c ti o n a l te s ts in t h e C la y to n A c t, i n c l u d in g th e p o w e r to ta k e e n f o r c e m e n t a c ti o n s in t h e s a m e m a n n e r a s i f t h e v io la tio n h a s b e e n a v io la tio n o f t h e C la y t o n A c t. (4 ) th e F e d e ra l H o m e L o a n B a n k B o a rd ( b ) A ll o f t h e fu n c tio n s a n d p o w e rs o f th e w ith r e s p e c t to in s titu tio n s t h e a c c o u n t s o f A tt o r n e y G e n e r a l o r t h e A s s i s ta n t A t to r n e y w h ic h a r e in s u r e d b y th e F e d e r a l S a v in g s G e n e r a l in c h a r g e o f t h e A n t i t r u s t D iv is io n o f a n d L o a n I n s u r a n c e C o r p o r a t io n , a n d s a v t h e D e p a r t m e n t o f J u s tic e a r e a v a ila b le t o th e in g s a n d lo a n h o ld in g c o m p a n ie s , a n d A tt o r n e y G e n e r a l o r t o s u c h A s s i s ta n t A t t o r ( 5 ) t h e N a tio n a l C r e d it U n io n A d m in i s t r a t i o n w ith re s p e c t to c r e d i t u n io n s t h e a c c o u n ts o f w h ic h a r e in s u r e d b y t h e N a tio n a l C r e d it U n io n A d m in is tr a tio n . [12 USC 3207.] 10 n e y G e n e r a l to in v e s tig a te p o s s ib le v io la tio n s u n d e r s e c tio n 2 0 7 ( 6 ) o f t h e t i tl e in t h e s a m e m a n n e r a s i f s u c h p o s s ib le v io la tio n s w e re p o s s ib le v io la tio n s o f t h e C la y t o n A c t. [12 USC 3208. As added by act of Oct. 15, 1982 (96 Stat. 1524).]
@FedFRASER