Page:United States Statutes at Large Volume 124.djvu/1543

 124 STAT. 1517 PUBLIC LAW 111–203—JULY 21, 2010 (c) CONFLICT OF INTEREST.—In the event that the Corporation is appointed receiver for more than 1 covered financial company or is appointed receiver for a covered financial company and receiver for any insured depository institution that is an affiliate of such covered financial company, the Corporation shall take appropriate action, as necessary to avoid any conflicts of interest that may arise in connection with multiple receiverships. SEC. 213. BAN ON CERTAIN ACTIVITIES BY SENIOR EXECUTIVES AND DIRECTORS. (a) PROHIBITION AUTHORITY.—The Board of Governors or, if the covered financial company was not supervised by the Board of Governors, the Corporation, may exercise the authority provided by this section. (b) AUTHORITY TO ISSUE ORDER.—The appropriate agency described in subsection (a) may take any action authorized by subsection (c), if the agency determines that— (1) a senior executive or a director of the covered financial company, prior to the appointment of the Corporation as receiver, has, directly or indirectly— (A) violated— (i) any law or regulation; (ii) any cease-and-desist order which has become final; (iii) any condition imposed in writing by a Federal agency in connection with any action on any applica- tion, notice, or request by such company or senior executive; or (iv) any written agreement between such company and such agency; (B) engaged or participated in any unsafe or unsound practice in connection with any financial company; or (C) committed or engaged in any act, omission, or practice which constitutes a breach of the fiduciary duty of such senior executive or director; (2) by reason of the violation, practice, or breach described in any subparagraph of paragraph (1), such senior executive or director has received financial gain or other benefit by reason of such violation, practice, or breach and such violation, prac- tice, or breach contributed to the failure of the company; and (3) such violation, practice, or breach— (A) involves personal dishonesty on the part of such senior executive or director; or (B) demonstrates willful or continuing disregard by such senior executive or director for the safety or soundness of such company. (c) AUTHORIZED ACTIONS.— (1) IN GENERAL.—The appropriate agency for a financial company, as described in subsection (a), may serve upon a senior executive or director described in subsection (b) a written notice of the intention of the agency to prohibit any further participation by such person, in any manner, in the conduct of the affairs of any financial company for a period of time determined by the appropriate agency to be commensurate with such violation, practice, or breach, provided such period shall be not less than 2 years. Notice. Time period. 12 USC 5393.