Page:United States Statutes at Large Volume 104 Part 6.djvu/480

 104 STAT. 4870 PUBLIC LAW 101-647—NOV. 29, 1990 "(iii) any payment made by reason of the death or disability of an institution-afflUated party. "(5) OTHER DEFINITIONS. — For purposes of this subsection— " (A) INDEMNIFICATION PAYMENT. —Subject to paragraph (6), the term 'indemnification payment means any pay- ment (or any agreement to make any payment) by any insured depository institution or depository institution holding company for the benefit of any person who is or was an institution-affiliated party, to pay or reimburse such person for any liability or legal expense with regard to any administrative proceeding or civil action instituted by the appropriate Federal banking agency which results in a final order under which such person— "(i) is assessed a civil money penalty; "(ii) is removed or prohibited from participating in conduct of the affairs of the insured depository institution; or "(iii) is required to take any affirmative action described in section 8(b)(6) with respect to such institution. "(B) LIABILITY OR LEGAL EXPENSE.—The term 'liability or legal expense' means— "(i) any legal or other professional expense incurred in connection with any claim, proceeding, or action; "(ii) the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and "(iii) the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action. "(C) PAYMENT. —The term 'payment' includes— "(i) any direct or indirect transfer of any funds or any asset; and "(ii) any segregation of any funds or assets for the purpose of making, or pursuant to an agreement to make, any payment after the date on which such funds or assets are segregated, without regard to whether the obligation to make such payment is contingent on— "(I) the determination, after such date, of the liability for the payment of such amount; or "(II) the liquidation, after such date, of the amount of such payment. "(6) CERTAIN COMMERCIAL INSURANCE COVERAGE NOT TREATED AS COVERED BENEFIT PAYMENT. — No provision of this subsection shall be construed as prohibiting any insured depository institution or depository institution holding company from purchasing any commercial insurance policy or fidelity bond, except that, subject to any requirement described in paragraph (5)(A)(iii), such insurance policy or bond shall not cover any legal or liability expense of the institution or holding company which is described in paragraph (5)(A). ". (b) NCUA INSURED CREDIT UNIONS DEPOSITORY INSTITUTIONS. — Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by adding at the end the following new subsection: "(t) REGULATION OF CERTAIN FORMS OF BENEFITS TO INSTITUTION- AFFIUATED PARTIES.—

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