Sec. 126. FDIC AUTHORITY
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## SEC. 126 FDIC AUTHORITY ###
(a)In General Section 18(a) of the Federal Deposit Insurance Act (12 U.S.C. 1828(a)) is amended by adding at the end the following new paragraph: > > #### “(4) False advertising, misuse of fdic names, and misrepresentation to indicate insured status > > > ##### “(A) Prohibition on false advertising and misuse of fdic names > > No person may represent or imply that any deposit liability, obligation, certificate, or share is insured or guaranteed by the Corporation, if such deposit liability, obligation, certificate, or share is not insured or guaranteed by the Corporation— > > > ###### “(i) > > by using the terms ‘**Federal Deposit**’, ‘Federal Deposit Insurance’, ‘Federal Deposit Insurance Corporation’, any combination of such terms, or the abbreviation ‘FDIC’ as part of the business name or firm name of any person, including any corporation, partnership, business trust, association, or other business entity; or > > > ###### “(ii) > > by using such terms or any other terms, sign, or symbol as part of an advertisement, solicitation, or other document. > > > ##### “(B) Prohibition on misrepresentations of insured status > > No person may knowingly misrepresent— > > > ###### “(i) > > that any deposit liability, obligation, certificate, or share is insured, under this Act, if such deposit liability, obligation, certificate, or share is not so insured; or > > > ###### “(ii) > > the extent to which or the manner in which any deposit liability, obligation, certificate, or share is insured under this Act, if such deposit liability, obligation, certificate, or share is not so insured, to the extent or in the manner represented. > > > ##### “(C) Authority of the appropriate federal banking agency > > The appropriate Federal banking agency shall have enforcement authority in the case of a violation of this paragraph by any person for which the agency is the appropriate Federal banking agency, or any institution-affiliated party thereof. > > > ##### “(D) Corporation authority if the appropriate federal banking agency fails to follow recommendation > > > ###### “(i) Recommendation > > The Corporation may recommend in writing to the appropriate Federal banking agency that the agency take any enforcement action authorized under section 8 for purposes of enforcement of this paragraph with respect to any person for which the agency is the appropriate Federal banking agency or any institution-affiliated party thereof. > > > ###### “(ii) Agency response > > If the appropriate Federal banking agency does not, within 30 days of the date of receipt of a recommendation under clause (i), take the enforcement action with respect to this paragraph recommended by the Corporation or provide a plan acceptable to the Corporation for responding to the situation presented, the Corporation may take the recommended enforcement action against such person or institution-affiliated party. > > > ##### “(E) Additional authority > > In addition to its authority under subparagraphs
(C)and (D), for purposes of this paragraph, the Corporation shall have, in the same manner and to the same extent as with respect to a State nonmember insured bank— > > > ###### “(i) > > jurisdiction over— > > > ###### “(I) > > any person other than a person for which another agency is the appropriate Federal banking agency or any institution-affiliated party thereof; and > > > ###### “(II) > > any person that aids or abets a violation of this paragraph by a person described in subclause (I); and > > > ###### “(ii) > > for purposes of enforcing the requirements of this paragraph, the authority of the Corporation under— > > > ###### “(I) > > section 10(c) to conduct investigations; and > > > ###### “(II) > > subsections (b), (c),
(d)and
(i)of section 8 to conduct enforcement actions. > > > ##### “(F) Other actions preserved > > No provision of this paragraph shall be construed as barring any action otherwise available, under the laws of the United States or any State, to any Federal or State agency or individual.” > . ###
(b)Enforcement Orders Section 8(c) of the Federal Deposit Insurance Act (12 U.S.C. 1818(c)) is amended by adding at the end the following new paragraph: > > #### “(4) False advertising or misuse of names to indicate insured status > > > ##### “(A) Temporary order > > > ###### “(i) In general > > If a notice of charges served under subsection (b)(1) specifies on the basis of particular facts that any person engaged or is engaging in conduct described in section 18(a)(4), the Corporation or other appropriate Federal banking agency may issue a temporary order requiring— > > > ###### “(I) > > the immediate cessation of any activity or practice described, which gave rise to the notice of charges; and > > > ###### “(II) > > affirmative action to prevent any further, or to remedy any existing, violation. > > > ###### “(ii) Effect of order > > Any temporary order issued under this subparagraph shall take effect upon service. > > > ##### “(B) Effective period of temporary order > > A temporary order issued under subparagraph
(A)shall remain effective and enforceable, pending the completion of an administrative proceeding pursuant to subsection (b)(1) in connection with the notice of charges— > > > ###### “(i) > > until such time as the Corporation or other appropriate Federal banking agency dismisses the charges specified in such notice; or > > > ###### “(ii) > > if a cease-and-desist order is issued against such person, until the effective date of such order. > > > ##### “(C) Civil money penalties > > Any violation of section 18(a)(4) shall be subject to civil money penalties, as set forth in subsection (i), except that for any person other than an insured depository institution or an institution-affiliated party that is found to have violated this paragraph, the Corporation or other appropriate Federal banking agency shall not be required to demonstrate any loss to an insured depository institution.” > . ###
(c)Unenforceability of Certain Agreements Section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by adding at the end the following new paragraph: > > #### “(11) Unenforceability of certain agreements > > No provision contained in any existing or future standstill, confidentiality, or other agreement that, directly or indirectly— > > > ##### “(A) > > affects, restricts, or limits the ability of any person to offer to acquire or acquire, > > > ##### “(B) > > prohibits any person from offering to acquire or acquiring, or > > > ##### “(C) > > prohibits any person from using any previously disclosed information in connection with any such offer to acquire or acquisition of, > > all or part of any insured depository institution, including any liabilities, assets, or interest therein, in connection with any transaction in which the Corporation exercises its authority under section 11 or 13, shall be enforceable against or impose any liability on such person, as such enforcement or liability shall be contrary to public policy.” > . ###
(d)Technical and Conforming Amendments Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended— ####
(1)in subsection (a)(3)— #####
(A)by striking “this subsection” the first place that term appears and inserting “paragraph (1)”; and #####
(B)by striking “this subsection” the second place that term appears and inserting “paragraph (2)”; and ####
(2)in the heading for subsection (a), by striking “Insurance Logo.—” and inserting “Representations of Deposit Insurance.—”.
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