(a) Holding companies. 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.
(b) Other companies. 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.
(c) Authority of state insurance regulator.
(1) The provisions of
section 5(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(g))
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.
(2) 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 5(g) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1844(g)).
(d) Reports. 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—
(1) assessing the ability of such company
to comply with the requirement under subsection (b); and
(2) enforcing the compliance of such company
with the requirement under subsection (b).
(e) Rules. Not later than 1 year after the
transfer date, as defined in section 311 of the Enhancing Financial
Institution Safety and Soundness Act of 2010, the appropriate Federal
banking agencies shall jointly issue final rules to carry out this
section.
(f) Definition. 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 USC 1831o-1. As added
by act of July 21, 2010 (124 Stat. 1616) and amended by act of Dec.
18, 2015 (129 Stat. 3029).]
