Page:United States Statutes at Large Volume 105 Part 3.djvu/398

 105 STAT. 2282 PUBLIC LAW 102-242 —DEC. 19, 1991 action (hereafter the "resulting institution") and any institution acquiring the troubled institution should meet all applicable minimum capital standards. (3) SUBSTANTIAL PRIVATE INVESTMENT. — The transaction should involve substantial private investment. (4) CONCESSIONS. — Preexisting owners and debtholders of any troubled institution or its holding company should make substantial concessions. (5) QUALIFIED MANAGEMENT.— Directors and senior management of the resulting institution should be qualified to perform their duties, and should not include individuals substantially responsible for the troubled institution's problems. (6) FDIC's PARTICIPATION. — The transaction should give the Federal Deposit Insurance Corporation an opportunity to participate in the success of the resulting institution. (7) STRUCTURE OF TRANSACTION. — The transaction should, insofar as practical, be structured so that— (A) the Federal Deposit Insurance Corporation— (i) does not acquire a significant proportion of the troubled institution's problem assets; (ii) succeeds to the interests of the troubled institution's preexisting owners and debtholders in proportion to the assistance the Corporation provides; and (iii) limits the Corporation's assistance in term and amount; and (B) new investors share risk with the Corporation. (c) REPORT. — Two years after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall submit a report to Congress analyzing the effect of early resolution on the deposit insurance funds. Subtitle F—Federal Insurance for State Chartered Depository Institutions SEC. 151. DEPOSITORY INSTITUTIONS LACKING FEDERAL DEPOSIT INSUR- ANCE. (a) ANNUAL INDEPENDENT AUDIT OF PRIVATE DEPOSIT INSURER; DISCLOSURE BY INSTITUTIONS LACKING FEDERAL DEPOSIT INSUR- ANCE. — (1) IN GENERAL.—The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section: 12 USC 1831t. "SEC. 40. DEPOSITORY INSTITUTIONS LACKING FEDERAL DEPOSIT INSUR- ANCE. "(a) ANNUAL INDEPENDENT AUDIT OF PRIVATE DEPOSIT INSURERS. — "(1) AUDIT REQUIRED. —Any private deposit insurer shall obtain an annual audit from an independent auditor using generally accepted auditing standards. The audit shall include a determination of whether the private deposit insurer follows generally accepted accounting principles and has set aside sufficient reserves for losses. "(2) PROVIDING COPIES OF AUDIT REPORT.—

�