§1816. Factors to be considered

The factors that are required, under section 1814 of this title, to be considered in connection with, and enumerated in, any certificate issued pursuant to section 1814 of this title and that are required, under section 1815 of this title, to be considered by the Board of Directors in connection with any determination by such Board pursuant to section 1815 of this title are the following:

(1) The financial history and condition of the depository institution.

(2) The adequacy of the depository institution's capital structure.

(3) The future earnings prospects of the depository institution.

(4) The general character and fitness of the management of the depository institution.

(5) The risk presented by such depository institution to the Bank Insurance Fund or the Savings Association Insurance Fund.

(6) The convenience and needs of the community to be served by such depository institution.

(7) Whether the depository institution's corporate powers are consistent with the purposes of this chapter.

(Sept. 21, 1950, ch. 967, §2[6], 64 Stat. 876 ; Pub. L. 101–73, title II, §207, Aug. 9, 1989, 103 Stat. 206 ; Pub. L. 104–208, div. A, title II, §2704(d)(14)(F), Sept. 30, 1996, 110 Stat. 3009–491 .)

Amendment of Paragraph (5)

Pub. L. 104–208, div. A, title II, §2704(c), (d)(14)(F), Sept. 30, 1996, 110 Stat. 3009–487 , 3009-491, provided that, effective Jan. 1, 1999, if no insured depository institution is a savings association on that date, paragraph (5) of this section is amended by striking "Bank Insurance Fund or the Savings Association Insurance Fund" and inserting "Deposit Insurance Fund".

Prior Provisions

Section is derived from subsec. (g) of former section 264 of this title. See Codification note set out under section 1811 of this title.

Amendments

1989-Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: "The factors to be enumerated in the certificate required under section 1814 of this title and to be considered by the Board of Directors under section 1815 of this title shall be the following: The financial history and condition of the bank, the adequacy of its capital structure, its future earnings prospects, the general character of its management, the convenience and needs of the community to be served by the bank, and whether or not its corporate powers are consistent with the purposes of this chapter."

Effective Date of 1996 Amendment

Amendment by Pub. L. 104–208 effective Jan. 1, 1999, if no insured depository institution is a savings association on that date, see section 2704(c) of Pub. L. 104–208, set out as a note under section 1821 of this title.

Section Referred to in Other Sections

This section is referred to in sections 1815, 1828 of this title.