Page:United States Statutes at Large Volume 103 Part 1.djvu/274

 103 STAT. 246 PUBLIC LAW 101-73—AUG. 9, 1989 the new bank. Thereafter the Corporation shall be liable for the obligations of such bank and shall be the owner of its assets. "(19) APPLICABILITY OF CERTAIN LAWS.— The provisions of sec- r tions 5220 and 5221 of the Revised Statutes shall not apply to a new bank under this subsection.". SEC. 214. BRIDGE BANKS. Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended by inserting after subsection (m) (as added by section 213) the following new subsection: >,. " (n) BRIDGE BANKS.— " (1) ORGANIZATION. — "(A) PURPOSE.— When 1 or more insured banks are in default, or when the Corporation anticipates that 1 or more insured banks may become in default, the Corporation may, in its discretion, organize, and the Office of the Comptroller of the Currency shall charter, 1 or more national banks with respect thereto with the powers and attributes of national banking associations, subject to the provisions of this subsection, to be referred to as bridge banks. "(B) AUTHORITIES.—Upon the granting of a charter to a bridge bank, the bridge bank may— "(i) assume such deposits of such insured bank or banks that is or are in default or in danger of default as the Corporation may, in its discretion, determine to be appropriate, except that if any insured deposits of a bank are assumed, all insured deposits of that bank shall be assumed by the bridge bank or another insured • depository institution; (ii) assume such other liabilities (including liabil- ities associated with any trust business) of such insured bank or banks that is or are in default or in danger of default as the (Corporation may, in its discretion, deter- mine to be appropriate; "(iii) purchase such assets (including assets associ- ated with any trust business) of such insured bank or banks that is or are in default or in danger of default as ' the Corporation may, in its discretion, determine to be appropriate; and (iv) perform any other temporary function which - the (Corporation may, in its discretion, prescribe in accordance with this Act. "(C) ARTICLES OF ASSOCIATION. —The articles of association and organization certificate of a bridge bank as approved by the Corporation shall be executed by 3 representatives designated by the (Corporation. "(D) INTERIM DIRECTORS.—A bridge bank shall have an interim board of directors consisting of not fewer than 5 nor more than 10 members appointed by the (Corporation. "(E) NATIONAL BANK. —A bridge bank shall be organized - as a national bank. "(2) (CHARTERING. — "(A) (CONDITIONS.—A national bank may be chartered by the (Comptroller of the Currency as a bridge bank only if the Board of Directors determines that— "(i) the amount which is reasonably necessary to operate such bridge bank will not exceed the amount

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