Page:United States Statutes at Large Volume 103 Part 1.djvu/481

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 453 "(ii) unless set aside, limited, or suspended by a court in proceedings under paragraph (2), shall remain in effect and enforceable until the earlier of^ "(I) the completion of the proceeding initiated under subsection (e)(1) in connection with the notice of charges; or "(ID the date the Board determines, by examina- tion or otherwise, that the insured credit union's ^ books and records are accurate and reflect the financial condition of the credit union.". SEC. 903. MERGER OF REMOVAL AND PROHIBITION AUTHORITY. (a) DEPOSITORY INSTITUTIONS INSURED BY THE FDIC. — (1) IN GENERAL.— Section 8(e)(1) of the Federal Deposit Insur- ance Act (12 U.S.C. 1818(e)(1)) is amended to read as follows: "(e) REMOVAL AND PROHIBITION AUTHORITY.— "(1) AUTHORITY TO ISSUE ORDER.—Whenever the appropriate Federal banking agency determines that— "(A) any institution-affiliated party has, directly or in- directly— ^ " (i) violated— "(I) any law or regulation; "(II) any cease-and-desist order which has become final; "(III) any condition imposed in writing by the appropriate Federal banking agency in connection with the grant of any application or other request by such depository institution; or "(IV) any written agreement between such depository institution and such agency; "(ii) engaged or participated in any unsafe or un- sound practice in connection with any insured deposi- tory institution or business institution; or ' (iii) committed or engaged in any act, omission, or practice which constitutes a breach of such party's fiduciary duty; "(B) by reason of the violation, practice, or breach de- scribed in any clause of subparagraph (A)— "(i) such insured depository institution or business ,- institution has suffered or will probably suffer finan- cial loss or other damage; "(ii) the interests of the insured depository institu- tion's depositors have been or could be prejudiced; or "(iii) such party has received financial gain or other benefit by reason of such violation, practice, or breach; and "(C) such violation, practice, or breach— "(i) involves personal dishonesty on the part of such party; or "(ii) demonstrates willful or continuing disregard by such party for the safety or soundness of such insured depository institution or business institution, the agency may serve upon such party a written notice of the agency's intention to remove such party from office or to pro- hibit any further participation by such party, in any manner, in the conduct of the affairs of any insured depository institu- tion.".

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