12 U.S.C. § 1831g — Contracts between depository institutions and persons providing goods, products, or services
submitted 76 years ago by Pub. L. 101-73 to r/title-12-BANKS-AND-BANKING · 279 words · no verdicts yet
An insured depository institution may not make a goods, products, or services contract whose performance would harm the institution’s safety or soundness. The Corporation may issue rules, and the Attorney General and Comptroller General must study certain vendor arrangements and report to Congress.
(a) In general. An insured depository institution may not make a written or oral contract with a person* to provide goods, products, or services to or for the institution if performing the contract would adversely affect its safety or soundness.
(b) Rulemaking. The Corporation must issue needed regulations and orders, including consistent definitions, to administer this section, carry out its purposes, and prevent evasion.
(c) Enforcement. Enforcement by an appropriate Federal banking agency* under 12 U.S.C. § 1818 may require the institution to record the transaction properly in its books and records.
(d) No private right of action. This section does not create a private right to sue.
(e) Study. (1) The Attorney General and Comptroller General must jointly study how often insured depository institutions make vendor contracts under which vendors agree to buy institutional stock or assets, invest capital, or make deposits, and, if this occurs, whether it has an anticompetitive effect and should be prohibited. (2) Before one year ends after August 9, 1989, they must report the study’s results to Congress.
An insured depository institution may not enter into a written or oral contract with any person* to provide goods, products, or services to or for the benefit of such depository institution if the performance of such contract would adversely affect the safety or soundness of the institution.
The Corporation shall prescribe such regulations and issue such orders, including definitions consistent with this section, as may be necessary to administer and carry out the purposes of, and prevent evasions of, this section.
Any action taken by any appropriate Federal banking agency* under section 1818 of this title to enforce compliance on the part of any insured depository institution with the requirements of this section may include a requirement that such institution properly reflect the transaction on its books and records.
This section may not be construed as creating any private right of action.
The Attorney General and the Comptroller General of the United States shall jointly conduct a study on the extent to which—
insured depository institutions are entering into contracts with vendors under which the vendors agree to purchase stock or assets from insured depository institutions or to invest capital in or make deposits in such institutions; and
if such practices occur, the extent to which such practices are having an anticompetitive effect and should be prohibited.
Before the end of the 1-year period beginning on August 9, 1989, the Attorney General and the Comptroller General shall submit a report to the Congress on the results of the study conducted pursuant to paragraph (1).
Source credit: (Sept. 21, 1950, ch. 967, § 2[30], as added Pub. L. 101–73, title II, § 225, Aug. 9, 1989, 103 Stat. 275; amended Pub. L. 103–325, title VI, § 602(a)(59), Sept. 23, 1994, 108 Stat. 2291.)
- 1950Enacted · Pub. L. 101-73 · 103 Stat. 275
- 1994Amended · Pub. L. 103-325 · 108 Stat. 2291
A history note hasn’t been published yet. The record shows enactment by Pub. L. 101-73 on 1950-09-21.
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