The appropriate Federal banking agency for a bank holding company or savings and loan holding company shall require the bank holding company or savings and loan holding company to serve as a source of financial strength for any subsidiary of the bank holding company or savings and loan holding company that is a depository institution.
If an insured depository institution is not the subsidiary of a bank holding company or savings and loan holding company, the appropriate Federal banking agency for the insured depository institution shall require any company that directly or indirectly controls the insured depository institution to serve as a source of financial strength for such institution.
The provisions of section 1844(g) of this title shall apply to a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, and to any other company that is an insurance company and that directly or indirectly controls an insured depository institution, to the same extent as the provisions of that section apply to a bank holding company that is an insurance company.
Requiring a bank holding company that is an insurance company, a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, or any other company that is an insurance company and that directly or indirectly controls an insured depository institution to serve as a source of financial strength under this section shall be deemed an action of the Board that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for purposes of section 1844(g) of this title.
The appropriate Federal banking agency for an insured depository institution described in subsection (b) may, from time to time, require the company, or a company that directly or indirectly controls the insured depository institution, to submit a report, under oath, for the purposes of-
Not later than 1 year after the transfer date, as defined in section 5411 of this title, the appropriate Federal banking agencies shall jointly issue final rules to carry out this section.
In this section, the term "source of financial strength" means the ability of a company that directly or indirectly owns or controls an insured depository institution to provide financial assistance to such insured depository institution in the event of the financial distress of the insured depository institution.
12 U.S.C. § 1831o-1
EDITORIAL NOTES
AMENDMENTS2015-Subsecs. (c) to (f). Pub. L. 114-113 added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATESection effective on the transfer date, see section 616(e) of Pub. L. 111-203 set out as an Effective Date of 2010 Amendment note under section 1467a of this title.
- State
- The term "State" means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
- affiliate
- The term "affiliate" means any person that controls, is controlled by, or is under common control with another person.
- appropriate Federal banking agency
- The term "appropriate Federal banking agency" means-(1) the Office of the Comptroller of the Currency, in the case of-(A) any national banking association;(B) any Federal branch or agency of a foreign bank; and(C) any Federal savings association;(2) the Federal Deposit Insurance Corporation, in the case of-(A) any State nonmember insured bank;(B) any foreign bank having an insured branch; and(C) any State savings association; 1(3) the Board of Governors of the Federal Reserve System, in the case of-(A) any State member bank;(B) any branch or agency of a foreign bank with respect to any provision of the Federal Reserve Act [ 12 U.S.C. 221 et seq.] which is made applicable under the International Banking Act of 1978 [ 12 U.S.C. 3101 et seq.];(C) any foreign bank which does not operate an insured branch;(D) any agency or commercial lending company other than a Federal agency;(E) supervisory or regulatory proceedings arising from the authority given to the Board of Governors under section 7(c)(1) of the International Banking Act of 1978 [ 12 U.S.C. 3105(c)(1) ], including such proceedings under the Financial Institutions Supervisory Act of 1966;(F) any bank holding company and any subsidiary (other than a depository institution) of a bank holding company; and(G) any savings and loan holding company and any subsidiary (other than a depository institution) of a savings and loan holding company.Under the rule set forth in this subsection, more than one agency may be an appropriate Federal banking agency with respect to any given institution.
- depository institution
- The term "depository institution" means any bank or savings association.
- insured depository institution
- The term "insured depository institution" means any bank or savings association the deposits of which are insured by the Corporation pursuant to this chapter.