12 U.S.C. § 3204 — Exceptions

The prohibitions in sections 3202 and 3203 do not apply to any of the following, or to a subsidiary of any of them:

(1) A depository institution^* or depository holding company^* that has been formally placed in liquidation, or that is under a receiver, conservator, or another official performing a similar function. This section does not define the term "depository institution".

(2) A corporation operating under section 25 or 25(a) of the Federal Reserve Act.

(3) A credit^* union that is being served by a management official^* of another credit union. This section does not define the term "management official".

(4) A depository institution or depository holding company that does no business in any State^* of the United States, the District of Columbia, any United States territory, Puerto Rico, Guam, American Samoa, or the Virgin Islands, except as an incident to activities outside the United States.

(5) A State-chartered savings-and-loan guaranty corporation.

(6) A Federal Home Loan Bank or another bank organized specifically to serve depository institutions.

(7) A depository institution or depository holding company that—

(A) is closed or is in danger of closing, as determined by the appropriate Federal depository institutions regulatory agency^* under that agency's regulations; and

(B) is acquired by another depository institution or depository holding company during the five-year period beginning on the date of the acquisition of the depository institution or depository holding company described in subparagraph (A).

(8)(A) A diversified savings-and-loan holding company may have a director^* who also is a director of an unaffiliated depository institution or depository holding company, including a savings-and-loan holding company, if—

(i) at least 60 days before the proposed dual service begins, the diversified savings-and-loan holding company gives notice of it to—

(I) the appropriate Federal depository institutions regulatory agency for that diversified savings-and-loan holding company; and

(II) the appropriate Federal depository institutions regulatory agency for the unaffiliated depository institution or depository holding company where the person^* also serves as a director; and

(ii) neither appropriate agency disapproves the proposed dual service before the 60-day period ends.

(B) An appropriate Federal depository institutions regulatory agency may disapprove the notice if it finds that—

(i) the dual service cannot be structured or limited to prevent it from creating a monopoly or substantially reducing competition in financial services in any part of the United States;

(ii) the dual service would lead to substantial conflicts of interest or unsafe or unsound practices; or

(iii) the diversified savings-and-loan holding company neglected, failed, or refused to provide all information the agency required.

(C) At any time after the 60-day period, an appropriate agency may require an individual's dual service to end if circumstances change concerning any depository institution or depository holding company where that individual is a director, and the changed circumstances would have given the agency a basis to disapprove the service during the 60-day period.

(9) A savings association or savings-and-loan holding company that issued stock as part of a qualified stock issuance under section 10(q) of the Home Owners' Loan Act. This exception applies only to service as a single management official of that savings association or holding company, or of a subsidiary of that savings association or holding company, by a single management official of the savings-and-loan holding company that purchased the stock issued as part of the qualified stock issuance. It applies only when the Director of the Office of Thrift Supervision has determined that the service is consistent with the purposes of this chapter and the Home Owners' Loan Act. The section does not define "savings association", "savings-and-loan holding company", "qualified stock issuance", or "management official"; it points to the definitions and provision cited in the statute.