§ 1820. Administration of Corporation
(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.
(b)
Examinations
(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—
(B)
any depository institution which files an application with the Corporation to become an insured depository institution; and
whenever the Board of Directors determines an examination of any such depository institution is necessary.
(3)
Special examination of any insured depository institution
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 whenever the Board of Directors determines a special examination of any such depository institution is necessary to determine the condition of such depository institution for insurance purposes.
(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—
(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—
(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—
(C)
when the institution was most recently examined, it was found to be well managed, and its composite condition—
(5)
Certain Government-controlled institutions exempted
Paragraph (1) does not apply to—
(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;
(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.
(8)
Report
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.
(9)
Standards for determining adequacy of State examinations
The Federal Financial Institutions Examination Council shall issue guidelines establishing standards to be used at the discretion of the appropriate Federal banking agency for purposes of making a determination under paragraph (3).
(10)
Agencies authorized to increase maximum asset amount of institutions for certain purposes
At any time after the end of the 2-year period beginning on September 23, 1994, the appropriate Federal banking agency, in the agency’s discretion, may increase the maximum amount limitation contained in paragraph (4)(C)(ii), by regulation, from $100,000,000 to an amount not to exceed $500,000,000 for purposes of such paragraph, if the agency determines that the greater amount would be consistent with the principles of safety and soundness for insured depository institutions.
(e)
Examination fees
(1)
Regular and special examinations of depository institutions
The cost of conducting any regular examination or special examination of any depository institution under subsection (b)(2), (b)(3), or (d) of this section may be assessed by the Corporation against the institution to meet the Corporation’s expenses in carrying out such examinations.
(2)
Examination of affiliates
The cost of conducting any examination of any affiliate of any insured depository institution under subsection (b)(4) of this section may be assessed by the Corporation against each affiliate which is examined to meet the Corporation’s expenses in carrying out such examination.
(3)
Assessment against depository institution in case of affiliate’s refusal to pay
(A)
In general
Subject to subparagraph (B), if any affiliate of any insured depository institution—
(ii)
fails to pay any such assessment before the end of the 60-day period beginning on the date the affiliate receives notice of the assessment,
the Corporation may assess such cost against, and collect such cost from, the depository institution.
(B)
Affiliate of more than 1 depository institution
If any affiliate referred to in subparagraph (A) is an affiliate of more than 1 insured depository institution, the assessment under subparagraph (A) may be assessed against the depository institutions in such proportions as the Corporation determines to be appropriate.
(4)
Civil money penalty for affiliate’s refusal to cooperate
(A)
Penalty imposed
If any affiliate of any insured depository institution—
(i)
refuses to permit an examiner appointed by the Board of Directors under subsection (b)(1) of this section to conduct an examination; or
the depository institution shall forfeit and pay a penalty of not more than $5,000 for each day that any such refusal continues.
(5)
Deposits of examination assessment
Amounts received by the Corporation under this subsection (other than paragraph (4)) may be deposited in the manner provided in section
1823 of this title.
(f)
Preservation of agency records
(1)
In general
A Federal banking agency may cause any and all records, papers, or documents kept by the agency or in the possession or custody of the agency to be—
(2)
Treatment as original records
Any photographs, microphotographs, or photographic film or copies thereof described in paragraph (1)(A) or reproduction of electronically stored data described in paragraph (1)(B) shall be deemed to be an original record for all purposes, including introduction in evidence in all State and Federal courts or administrative agencies, and shall be admissible to prove any act, transaction, occurrence, or event therein recorded.
(3)
Authority of the Federal banking agencies
Any photographs, microphotographs, or photographic film or copies thereof described in paragraph (1)(A) or reproduction of electronically stored data described in paragraph (1)(B) shall be preserved in such manner as the Federal banking agency shall prescribe, and the original records, papers, or documents may be destroyed or otherwise disposed of as the Federal banking agency may direct.
(g)
Authority to prescribe regulations and definitions
Except to the extent that authority under this chapter is conferred on any of the Federal banking agencies other than the Corporation, the Corporation may—
(h)
Coordination of examination authority
(1)
State bank supervisors of home and host States
(A)
Home State of bank
The appropriate State bank supervisor of the home State of an insured State bank has authority to examine and supervise the bank.
(B)
Host State branches
The State bank supervisor of the home State of an insured State bank and any State bank supervisor of an appropriate host State shall exercise its respective authority to supervise and examine the branches of the bank in a host State in accordance with the terms of any applicable cooperative agreement between the home State bank supervisor and the State bank supervisor of the relevant host State.
(C)
Supervisory fees
Except as expressly provided in a cooperative agreement between the State bank supervisors of the home State and any host State of an insured State bank, only the State bank supervisor of the home State of an insured State bank may levy or charge State supervisory fees on the bank.
(2)
Host State examination
(A)
In general
With respect to a branch operated in a host State by an out-of-State insured State bank that resulted from an interstate merger transaction approved under section
1831u of this title, or that was established in such State pursuant to section
36
(g) of this title, the third undesignated paragraph of section
321 of this title or section
1828
(d)(4) of this title, the appropriate State bank supervisor of such host State may—
(i)
with written notice to the State bank supervisor of the bank’s home State and subject to the terms of any applicable cooperative agreement with the State bank supervisor of such home State, examine such branch for the purpose of determining compliance with host State laws that are applicable pursuant to section
1831a
(j) of this title, including those that govern community reinvestment, fair lending, and consumer protection; and
(ii)
if expressly permitted under and subject to the terms of a cooperative agreement with the State bank supervisor of the bank’s home State or if such out-of-State insured State bank has been determined to be in a troubled condition by either the State bank supervisor of the bank’s home State or the bank’s appropriate Federal banking agency, participate in the examination of the bank by the State bank supervisor of the bank’s home State to ascertain that the activities of the branch in such host State are not conducted in an unsafe or unsound manner.
(B)
Notice of determination
(i)
In general
The State bank supervisor of the home State of an insured State bank shall notify the State bank supervisor of each host State of the bank if there has been a final determination that the bank is in a troubled condition.
(ii)
Timing of notice
The State bank supervisor of the home State of an insured State bank shall provide notice under clause (i) as soon as is reasonably possible, but in all cases not later than 15 business days after the date on which the State bank supervisor has made such final determination or has received written notification of such final determination.
(3)
Host State enforcement
If the State bank supervisor of a host State determines that a branch of an out-of-State insured State bank is violating any law of the host State that is applicable to such branch pursuant to section
1831a
(j) of this title, including a law that governs community reinvestment, fair lending, or consumer protection, the State bank supervisor of the host State or, to the extent authorized by the law of the host State, a host State law enforcement officer may, with written notice to the State bank supervisor of the bank’s home State and subject to the terms of any applicable cooperative agreement with the State bank supervisor of the bank’s home State, undertake such enforcement actions and proceedings as would be permitted under the law of the host State as if the branch were a bank chartered by that host State.
(4)
Cooperative agreement
(A)
In general
The State bank supervisors from 2 or more States may enter into cooperative agreements to facilitate State regulatory supervision of State banks, including cooperative agreements relating to the coordination of examinations and joint participation in examinations.
(B)
Definition
For purposes of this subsection, the term “cooperative agreement” means a written agreement that is signed by the home State bank supervisor and the host State bank supervisor to facilitate State regulatory supervision of State banks, and includes nationwide or multi-State cooperative agreements and cooperative agreements solely between the home State and host State.
(C)
Rule of construction
Except for State bank supervisors, no provision of this subsection relating to such cooperative agreements shall be construed as limiting in any way the authority of home State and host State law enforcement officers, regulatory supervisors, or other officials that have not signed such cooperative agreements to enforce host State laws that are applicable to a branch of an out-of-State insured State bank located in the host State pursuant to section
1831a
(j) of this title.
(5)
Federal regulatory authority
No provision of this subsection shall be construed as limiting in any way the authority of any Federal banking agency.
(6)
State taxation authority not affected
No provision of this subsection shall be construed as affecting the authority of any State or political subdivision of any State to adopt, apply, or administer any tax or method of taxation to any bank, bank holding company, or foreign bank, or any affiliate of any bank, bank holding company, or foreign bank, to the extent that such tax or tax method is otherwise permissible by or under the Constitution of the United States or other Federal law.
(7)
Definitions
For purpose of this section, the following definitions shall apply:
(B)
State supervisory fees
The term “State supervisory fees” means assessments, examination fees, branch fees, license fees, and all other fees that are levied or charged by a State bank supervisor directly upon an insured State bank or upon branches of an insured State bank.
(C)
Troubled condition
Solely for purposes of paragraph (2)(B), an insured State bank has been determined to be in “troubled condition” if the bank—
(i)
has a composite rating, as determined in its most recent report of examination, of 4 or 5 under the Uniform Financial Institutions Ratings System;
(i)
Flood insurance compliance by insured depository institutions
(1)
Examinations
The appropriate Federal banking agency shall, during each scheduled on-site examination required by this section, determine whether the insured depository institution is complying with the requirements of the national flood insurance program.
(2)
Report
(A)
Requirement
Not later than 1 year after September 23, 1994, and biennially thereafter for the next 4 years, each appropriate Federal banking agency shall submit a report to the Congress on compliance by insured depository institutions with the requirements of the national flood insurance program.
(B)
Contents
Each report submitted under this paragraph shall include a description of the methods used to determine compliance, the number of institutions examined during the reporting year, a listing and total number of institutions found not to be in compliance, actions taken to correct incidents of noncompliance, and an analysis of compliance, including a discussion of any trends, patterns, and problems, and recommendations regarding reasonable actions to improve the efficiency of the examinations processes.
(j)
Consultation among examiners
(k)
One-year restrictions on Federal examiners of financial institutions
(1)
In general
In addition to other applicable restrictions set forth in title 18, the penalties set forth in paragraph (6) of this subsection shall apply to any person who—
(A)
was an officer or employee (including any special Government employee) of a Federal banking agency or a Federal reserve bank;
(B)
served 2 or more months during the final 12 months of his or her employment with such agency or entity as the senior examiner (or a functionally equivalent position) of a depository institution or depository institution holding company with continuing, broad responsibility for the examination (or inspection) of that depository institution or depository institution holding company on behalf of the relevant agency or Federal reserve bank; and
(C)
within 1 year after the termination date of his or her service or employment with such agency or entity, knowingly accepts compensation as an employee, officer, director, or consultant from—
(2)
Definitions
For purposes of this subsection—
(3)
Rules of construction
For purposes of this subsection, a foreign bank shall be deemed to control any branch or agency of the foreign bank, and a person shall be deemed to act as a consultant for a depository institution, depository institution holding company, or other company, only if such person directly works on matters for, or on behalf of, such depository institution, depository institution holding company, or other company.
(4)
Regulations
(A)
In general
Each Federal banking agency shall prescribe rules or regulations to administer and carry out this subsection, including rules, regulations, or guidelines to define the scope of persons referred to in paragraph (1)(B).
(B)
Consultation required
The Federal banking agencies shall consult with each other for the purpose of assuring that the rules and regulations issued by the agencies under subparagraph (A) are, to the extent possible, consistent, comparable, and practicable, taking into account any differences in the supervisory programs utilized by the agencies for the supervision of depository institutions and depository institution holding companies.
(5)
Waiver
(A)
Agency authority
A Federal banking agency may grant a waiver, on a case by case basis, of the restriction imposed by this subsection to any officer or employee (including any special Government employee) of that agency, and the Board of Governors of the Federal Reserve System may grant a waiver of the restriction imposed by this subsection to any officer or employee of a Federal reserve bank, if the head of such agency certifies in writing that granting the waiver would not affect the integrity of the supervisory program of the relevant Federal banking agency.
(6)
Penalties
(A)
In general
In addition to any other administrative, civil, or criminal remedy or penalty that may otherwise apply, whenever a Federal banking agency determines that a person subject to paragraph (1) has become associated, in the manner described in paragraph (1)(C), with a depository institution, depository institution holding company, or other company for which such agency serves as the appropriate Federal banking agency, the agency shall impose upon such person one or more of the following penalties:
(i)
Industry-wide prohibition order
The Federal banking agency shall serve a written notice or order in accordance with and subject to the provisions of section
1818
(e)(4) of this title for written notices or orders under paragraph (1) or (2) of section
1818
(e) of this title, upon such person of the intention of the agency—
(ii)
Civil monetary penalty
The Federal banking agency may, in an administrative proceeding or civil action in an appropriate United States district court, impose on such person a civil monetary penalty of not more than $250,000. Any administrative proceeding under this clause shall be conducted in accordance with section
1818
(i) of this title. In lieu of an action by the Federal banking agency under this clause, the Attorney General of the United States may bring a civil action under this clause in the appropriate United States district court.
(C)
Definitions
Solely for purposes of this paragraph, the “appropriate Federal banking agency” for a company that is not a depository institution or depository institution holding company shall be the Federal banking agency on whose behalf the person described in paragraph (1) performed the functions described in paragraph (1)(B).