(a) Prior notice required. An insured depository institution or
depository institution holding company shall notify the appropriate
Federal banking agency of the proposed addition of any individual
to the board of directors or the employment of any individual as a
senior executive officer of such institution or holding company at
least 30 days (or such other period, as determined by the appropriate
Federal banking agency) before such addition or employment becomes
effective, if—
(1) the insured depository institution
or depository institution holding company is not in compliance with
the minimum capital requirement applicable to such institution or
is otherwise in a troubled condition, as determined by such agency
on the basis of such institution’s or holding company’s most recent
report of condition or report of examination or inspection; or
(2) the agency determines,
in connection with the review by the agency of the plan required under
section 38 or otherwise, that such prior notice is appropriate.
1-399.51
(b) Disapproval by agency. An insured depository institution or depository institution holding company
may not add any individual to the board of directors or employ any
individual as a senior executive officer if the appropriate Federal
banking agency issues a notice of disapproval of such addition or
employment before the end of the notice period, not to exceed 90 days,
beginning on the date the agency receives notice of the proposed action
pursuant to subsection (a) of this section.
(c) Exception in extraordinary
circumstances.
(1) Each appropriate Federal banking agency
may prescribe by regulation conditions under which the prior notice
requirement of subsection (a) of this section may be waived in the
event of extraordinary circumstances.
(2) Such waivers shall not affect the authority
of each agency to issue notices of disapproval of such additions or
employment of such individuals within 30 days after each such waiver.
1-399.52
(d) Additional information. Any notice submitted to an appropriate Federal banking agency with
respect to an individual by any insured depository institution or
depository institution holding company pursuant to subsection (a)
of this section shall include—
(1) the information described in section
1817(j)(6)(A) of this title about the individual; and
(2) such other information
as the agency may prescribe by regulation.
1-399.53
(e) Standard for disapproval . The
appropriate Federal banking agency shall issue a notice of disapproval
with respect to a notice submitted pursuant to subsection (a) of this
section if the competence, experience, character, or integrity of
the individual with respect to whom such notice is submitted indicates
that it would not be in the best interests of the depositors of the
depository institution or in the best interests of the public to permit
the individual to be employed by, or associated with, the depository
institution or depository institution holding company.
1-399.54
(f) Definition regulations. Each appropriate
Federal banking agency shall prescribe by regulation a definition
for the terms “troubled condition” and “senior executive officer”
for purposes of subsection (a) of this section.
[12 USC 1831i. As added
by act of Aug. 9, 1989 (103 Stat. 484) and amended by act of Sept.
30, 1996 (110 Stat. 3009-409).]
