Page:United States Statutes at Large Volume 104 Part 6.djvu/481

 PUBLIC LAW 101-647—NOV. 29, 1990 104 STAT. 4871 "(1) GOLDEN PARACHUTES AND INDEMNIFICATION PAYMENTS. — The Board may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment. "(2) FACTORS TO BE TAKEN INTO ACCOUNT. —The Board shall Regulations, prescribe, by regulation, the factors to be considered by the Board in taking any action pursuant to paragraph (1) which may include such factors as the following: "(A) Whether there is a reasonable basis to believe that the institution-affiliated party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the credit union that has had a material siffect on the financial condition of the credit union. "(B) Whether there is a reasonable basis to believe that the institution-affiliated party is substantially responsible for the insolvency of the credit union, the appointment of a conservator or liquidating agent for the credit union, or the credit union's troubled condition (as defined in prescribed by the Board pursuant to paragraph (4)(A)(ii)(III)). "(C) Whether there is a reasonable basis to believe that the institution-affiliated party has materially violated any applicable Federal or State banking law or regulation that has had a material affect on the financial condition of the credit union. "(D) Whether there is a reasonable basis to believe that the institution-affiliated party has violated or conspired to violate— "(i) section 215, 656, 657, 1005, 1006, 1007, 1014, 1032, or 1344 of title 18, United States Code; or "(ii) section 1341 or 1343 of such title affecting a financial institution. "(E) Whether the institution-affiliated party was in a "(F) The length of time the party was affiliated with the , credit union and the degree to which— "(i) the payment reasonably reflects compensation earned over the period of employment; and "(ii) the compensation involved represents a reasonable payment for services rendered. "(3) CERTAIN PAYMENTS PROHIBITED.— No credit union may prepay the salary or any liability or legal expense of any institution-afQliated party if such payment is made— "(A) in contemplation of the insolvency of such credit union or after the commission of an act of insolvency; and "(B) with a view to, or has the result of— "(i) preventing the proper application of the assets of the credit union; or "(ii) preferring one creditor over another. "(4) GOLDEN PARACHUTE PAYMENT DEFINED. —For purposes of this subsection— "(A) IN GENERAL.—The term 'golden parachute payment' means any payment (or any agreement to make any pay- ment) in the nature of compensation by any credit union for the benefit of any institution-affiliated party pursuant to an obligation of such credit union that— "(i) is contingent on the termination of such party's affiliation with the credit union; and 39-194O-91- 16:QL3Part6
 * position of managerial or fiduciary responsibility.

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