12 USC 5393 - Ban on certain activities by senior executives and directors

U.S Code last checked for updates: Oct 17, 2024

§ 5393.

Ban on certain activities by senior executives and directors

(a)

Prohibition authority

(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 application, 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, practice, 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

(2)

Procedures

(d)

Regulations

(Pub. L. 111–203, title II, § 213, July 21, 2010, 124 Stat. 1517.)

cite as: 12 USC 5393