§ 1831g. — Contracts between depository institutions and persons providing goods, products, or services.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1831g]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1831g. Contracts between depository institutions and
persons providing goods, products, or services
(a) In general
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.
(b) Rulemaking
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.
(c) Enforcement
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.
(d) No private right of action
This section may not be construed as creating any private right of
action.
(e) Study
(1) In general
The Attorney General and the Comptroller General of the United
States shall jointly conduct a study on the extent to which--
(A) 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
(B) if such practices occur, the extent to which such
practices are having an anticompetitive effect and should be
prohibited.
(2) Report to Congress
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).
(Sept. 21, 1950, ch. 967, Sec. 2[30], as added Pub. L. 101-73, title II,
Sec. 225, Aug. 9, 1989, 103 Stat. 275; amended Pub. L. 103-325, title
VI, Sec. 602(a)(59), Sept. 23, 1994, 108 Stat. 2291.)
Amendments
1994--Subsec. (e)(1)(A). Pub. L. 103-325 substituted ``the vendors''
for ``venders''.
