§3205. Management official in position prior to November 10, 1978

(a) Continuation of service

A person whose service in a position as a management official began prior to November 10, 1978, and who was not immediately prior to November 10, 1978, in violation of section 19 of title 15 is not prohibited by section 3202 or section 3203 of this title from continuing to serve in that position for a period of, subject to the requirements of subsection (c) of this section, 20 years after November 10, 1978. The appropriate Federal depository institutions regulatory agency may provide a reasonable period of time for compliance with this chapter, not exceeding fifteen months, after any change in circumstances which makes service described in the preceding sentence prohibited by this chapter, except that a merger, acquisition, increase in total assets, establishment of one or more offices, or change in management responsibilities shall not constitute changes in circumstances which would make such service prohibited by section 3202 or section 3203 of this title.

(b) Depository institution and diversified savings and loan holding company

Effective on November 10, 1978, a person who serves as a management official of a company which is not a depository institution or a depository holding company and as a management official of a depository institution or a depository holding company is not prohibited from continuing to serve as a management official of that depository institution or depository holding company as a result of that company which is not a depository institution or depository holding company becoming a diversified savings and loan holding company as that term is defined in section 1730a(a) ¹ of this title. This subsection shall expire, subject to the requirements of subsection (c) of this section, 20 years after November 10, 1978.

(c) Review of existing management interlocks

Upon the timely filing of a submission by a person petitioning to serve as a management official in more than 1 position pursuant to subsection (a) or (b) of this section, each appropriate Federal depository institutions regulatory agency shall, not later than 6 months after September 23, 1994- ²

(1) review, on a case-by-case basis, the circumstances under which such person has served as a management official under the provisions of subsection (a) or (b) of this section; and

(2) permit the management official to continue to serve in such position only if-

(A) such person has provided a resolution from the boards of directors of each affected depository institution, depository holding company, or company described in subsection (b) of this section, certifying to the appropriate Federal depository institutions regulatory agency for each of the institutions involved that there is no other qualified candidate from the community described in paragraph (1) or (2) of section 3202 of this title who-

(i) possesses the level of expertise necessary for such service with respect to the affected depository institution, depository holding company, or company described in subsection (b) of this section; and

(ii) is willing to serve as a management official at the affected depository institution, depository holding company, or company described in subsection (b) of this section; and

(B) the appropriate Federal depository institutions regulatory agency determines that continuation of service by the management official does not produce an anticompetitive effect with respect to each affected depository institution, depository holding company, or company described in subsection (b) of this section.

( Pub. L. 95–630, title II, §206, Nov. 10, 1978, 92 Stat. 3674 ; Pub. L. 97–110, title III, §302, Dec. 26, 1981, 95 Stat. 1515 ; Pub. L. 100–650, §§5(b)(2), 6, Nov. 10, 1988, 102 Stat. 3820 , 3821; Pub. L. 103–325, title III, §338(a), Sept. 23, 1994, 108 Stat. 2235 .)

References in Text

Section 1730a of this title, referred to in subsec. (b), was repealed by Pub. L. 101–73, title IV, §407, Aug. 9, 1989, 103 Stat. 363 .

Codification

September 23, 1994, referred to in subsec. (c), was in the original "the date of enactment of this Act", which was translated as meaning the date of enactment of Pub. L. 103–325, which enacted subsec. (c) of this section, to reflect the probable intent of Congress.

Amendments

1994-Subsecs. (a), (b). Pub. L. 103–325, §338(a)(1), substituted ", subject to the requirements of subsection (c) of this section, 20 years after November 10, 1978" for "15 years after November 10, 1978".

Subsec. (c). Pub. L. 103–325, §338(a)(2), added subsec. (c).

1988-Subsec. (a). Pub. L. 100–650, §5(b)(2), substituted "depository institutions regulatory agency" for "banking agency (as set forth in section 3207 of this title)".

Pub. L. 100–650, §6, substituted "15 years" for "ten years".

Subsec. (b). Pub. L. 100–650, §6, substituted "15 years" for "ten years".

1981-Pub. L. 97–110 designated existing provisions as subsec. (a), inserted provision that a merger, acquisition, increase in total assets, establishment of one or more offices, or change in management responsibilities shall not constitute changes in circumstances which would make such service prohibited by section 3202 or 3203 of this title, and added subsec. (b).

Section Referred to in Other Sections

This section is referred to in section 3207 of this title.

¹ See References in Text note below.

² See Codification note below.