§ 1815. Deposit insurance
(a)
Application to Corporation required
(1)
In general
Except as provided in paragraphs (2) and (3), any depository institution which is engaged in the business of receiving deposits other than trust funds (as defined in section
1813
(p) of this title), upon application to and examination by the Corporation and approval by the Board of Directors, may become an insured depository institution.
(2)
Interim depository institutions
In the case of any interim Federal depository institution that is chartered by the appropriate Federal banking agency and will not open for business, the depository institution shall be an insured depository institution upon the issuance of the institution’s charter by the agency.
(3)
Application and approval not required in cases of continued insurance
Paragraph (1) shall not apply in the case of any depository institution whose insured status is continued pursuant to section
1814 of this title.
(4)
Review requirements
In reviewing any application under this subsection, the Board of Directors shall consider the factors described in section
1816 of this title in determining whether to approve the application for insurance.
(5)
Notice of denial of application for insurance
If the Board of Directors votes to deny any application for insurance by any depository institution, the Board of Directors shall promptly notify the appropriate Federal banking agency and, in the case of any State depository institution, the appropriate State banking supervisor of the denial of such application, giving specific reasons in writing for the Board of Directors’ determination with reference to the factors described in section
1816 of this title.
(b)
Foreign branch nonmember banks; matters considered
Subject to the provisions of this chapter and to such terms and conditions as the Board of Directors may impose, any branch of a foreign bank, upon application by the bank to the Corporation, and examination by the Corporation of the branch, and approval by the Board of Directors, may become an insured branch. Before approving any such application, the Board of Directors shall give consideration to—
(4)
the general character and fitness of its management, including but not limited to the management of the branch proposed to be insured,
(c)
Protection to Deposit Insurance Fund; surety bond, pledge of assets, etc.; injunction
(1)
Before any branch of a foreign bank becomes an insured branch, the bank shall deliver to the Corporation or as the Corporation may direct a surety bond, a pledge of assets, or both, in such amounts and of such types as the Corporation may require or approve, for the purpose set forth in paragraph (4) of this subsection.
(2)
After any branch of a foreign bank becomes an insured branch, the bank shall maintain on deposit with the Corporation, or as the Corporation may direct, surety bonds or assets or both, in such amounts and of such types as shall be determined from time to time in accordance with such regulations as the Board of Directors may prescribe. Such regulations may impose differing requirements on the basis of any factors which in the judgment of the Board of Directors are reasonably related to the purpose set forth in paragraph (4).
(3)
The Corporation may require of any given bank larger deposits of bonds and assets than required under paragraph (2) of this subsection if, in the judgment of the Corporation, the situation of that bank or any branch thereof is or becomes such that the deposits of bonds and assets otherwise required under this section would not adequately fulfill the purpose set forth in paragraph (4). The imposition of any such additional requirements may be without notice or opportunity for hearing, but the Corporation shall afford an opportunity to any such bank to apply for a reduction or removal of any such additional requirements so imposed.
(4)
The purpose of the surety bonds and pledges of assets required under this subsection is to provide protection to the Deposit Insurance Fund against the risks entailed in insuring the domestic deposits of a foreign bank whose activities, assets, and personnel are in large part outside the jurisdiction of the United States. In the implementation of its authority under this subsection, however, the Corporation shall endeavor to avoid imposing requirements on such banks which would unnecessarily place them at a competitive disadvantage in relation to domestically incorporated banks.
(5)
In the case of any failure or threatened failure of a foreign bank to comply with any requirement imposed under this subsection (c), the Corporation, in addition to all other administrative and judicial remedies, may apply to any United States district court, or United States court of any territory, within the jurisdiction of which any branch of the bank is located, for an injunction to compel such bank and any officer, employee, or agent thereof, or any other person having custody or control of any of its assets, to deliver to the Corporation such assets as may be necessary to meet such requirement, and to take any other action necessary to vest the Corporation with control of assets so delivered. If the court shall determine that there has been any such failure or threatened failure to comply with any such requirement, it shall be the duty of the court to issue such injunction. The propriety of the requirement may be litigated only as provided in chapter
7 of title
5, and may not be made an issue in an action for an injunction under this paragraph.
(d)
Insurance fees
(1)
In general
Any institution that becomes insured by the Corporation, and any noninsured branch that becomes insured by the Corporation, shall pay the Corporation any fee which the Corporation may by regulation prescribe, after giving due consideration to the need to establish and maintain the reserve ratio of the Deposit Insurance Fund.
(e)
Liability of commonly controlled depository institutions
(1)
In general
(A)
Liability established
Any insured depository institution shall be liable for any loss incurred by the Corporation, or any loss which the Corporation reasonably anticipates incurring, after August 9, 1989, in connection with—
(B)
Payment upon notice
An insured depository institution shall pay the amount of any liability to the Corporation under subparagraph (A) upon receipt of written notice by the Corporation in accordance with this subsection.
(C)
Notice required to be provided within 2 years of loss
No insured depository institution shall be liable to the Corporation under subparagraph (A) if written notice with respect to such liability is not received by such institution before the end of the 2-year period beginning on the date the Corporation incurred the loss.
(2)
Amount of compensation; procedures
(A)
Use of estimates
When an insured depository institution is in default or requires assistance to prevent default, the Corporation shall—
(i)
in good faith, estimate the amount of the loss the Corporation will incur from such default or assistance;
(B)
Procedures; immediate payment
The Corporation, after consultation with the appropriate Federal banking agency and the appropriate State chartering agency, shall—
(C)
Priority
The liability of any insured depository institution under this subsection shall have priority with respect to other obligations and liabilities as follows:
(i)
Superiority
The liability shall be superior to the following obligations and liabilities of the depository institution:
(ii)
Subordination
The liability shall be subordinate in right and payment to the following obligations and liabilities of the depository institution:
(D)
Adjustment of estimated payment
(i)
Overpayment
If the amount of compensation estimated by and paid to the Corporation by 1 or more such commonly controlled depository institutions is greater than the actual loss incurred by the Corporation, the Corporation shall reimburse each such commonly controlled depository institution its pro rata share of any overpayment.
(ii)
Underpayment
If the amount of compensation estimated by and paid to the Corporation by 1 or more such commonly controlled depository institutions is less than the actual loss incurred by the Corporation, the Corporation shall redetermine in its discretion the liability of each such commonly controlled depository institution to the Corporation and shall require each such commonly controlled depository institution to make payment of any additional liability to the Corporation.
(3)
Review
(B)
Administrative
The Corporation shall prescribe regulations and establish administrative procedures which provide for a hearing on the record for the review of—
(i)
the amount of any loss incurred by the Corporation in connection with any insured depository institution;
(4)
Limitation on rights of private parties
To the extent the exercise of any right or power of any person would impair the ability of any insured depository institution to perform such institution’s obligations under this subsection—
(5)
Waiver authority
(A)
In general
The Corporation, in its discretion, may exempt any insured depository institution from the provisions of this subsection if the Corporation determines that such exemption is in the best interests of the Deposit Insurance Fund.
(B)
Condition
During the period any exemption granted to any insured depository institution under subparagraph (A) or (C) is in effect, such insured depository institution and all other insured depository institution affiliates of such depository institution shall comply fully with the restrictions of sections
371c and
371c–1 of this title without regard to section
371c
(d)(1) of this title.
(C)
Limited partnerships
(i)
In general
The Corporation may, in its discretion, exempt any limited partnership and any affiliate of any limited partnership (other than any insured depository institution which is a majority owned subsidiary of such partnership) from the provisions of this subsection if such limited partnership or affiliate has filed a registration statement with the Securities and Exchange Commission on or before April 10, 1989, indicating that as of the date of such filing such partnership intended to acquire 1 or more insured depository institutions.
(ii)
Review and notice
Within 10 business days after the date of submission of any request for an exemption under this subparagraph together with such information as shall be reasonably requested by the Corporation, the Corporation shall make a determination on the request and shall so advise the applicant.
(6)
Exclusion for institutions acquired in debt collections
Any depository institution shall not be treated as commonly controlled, for purposes of this subsection, during the 5-year period beginning on the date of an acquisition described in subparagraph (A) or such longer period as the Corporation may determine after written application by the acquirer, if—
(A)
1 depository institution controls another by virtue of ownership of voting shares acquired in securing or collecting a debt previously contracted in good faith; and
(B)
during the period beginning on August 9, 1989, and ending upon the expiration of the exclusion, the controlling bank and all other insured depository institution affiliates of such controlling bank comply fully with the restrictions of sections
371c and
371c–1 of this title, without regard to section
371c
(d)(1) of this title, in transactions with the acquired insured depository institution.
(7)
Exception for certain FSLIC assisted institutions
No depository institution shall have any liability to the Corporation under this subsection as the result of the default of, or assistance provided with respect to, an insured depository institution which is an affiliate of such depository institution if—
(A)
such affiliate was receiving cash payments from the Federal Savings and Loan Insurance Corporation under an assistance agreement or note entered into before August 9, 1989;
(B)
the Federal Savings and Loan Insurance Corporation, or such other entity which has succeeded to the payment obligations of such Corporation with respect to such assistance agreement or note, is unable to continue such payments; and