Sec. 612. RESTRICTION ON CONVERSIONS OF TROUBLED BANKS
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## SEC. 612 RESTRICTION ON CONVERSIONS OF TROUBLED BANKS ###
(a)* * * * * * * * * * ###
(d)Exception **[**[12 U.S.C. 35 note](/us/usc/t12/s35)**]** The prohibition on the approval of conversions under the amendments made by subsections (a), (b), and
(c)shall not apply, if— ####
(1)the Federal banking agency that would be the appropriate Federal banking agency after the proposed conversion gives the appropriate Federal banking agency or State bank supervisor that issued the cease and desist order (or other formal enforcement order) or memorandum of understanding, as appropriate, written notice of the proposed conversion including a plan to address the significant supervisory matter in a manner that is consistent with the safe and sound operation of the institution; ####
(2)within 30 days of receipt of the written notice required under paragraph (1), the appropriate Federal banking agency or State bank supervisor that issued the cease and desist order (or other formal enforcement order) or memorandum of understanding, as appropriate, does not object to the conversion or the plan to address the significant supervisory matter; ####
(3)after conversion of the insured depository institution, the appropriate Federal banking agency after the conversion implements such plan; and ####
(4)in the case of a final enforcement action by a State Attorney General, approval of the conversion is conditioned on compliance by the insured depository institution with the terms of such final enforcement action. ###
(e)Notification of Pending Enforcement Actions **[**[12 U.S.C. 35 note](/us/usc/t12/s35)**]** ####
(1)Copy of conversion application At the time an insured depository institution files a conversion application, the insured depository institution shall transmit a copy of the conversion application to— #####
(A)the appropriate Federal banking agency for the insured depository institution; and #####
(B)the Federal banking agency that would be the appropriate Federal banking agency of the insured depository institution after the proposed conversion. ####
(2)Notification and access to information Upon receipt of a copy of the application described in paragraph (1), the appropriate Federal banking agency for the insured depository institution proposing the conversion shall— #####
(A)notify the Federal banking agency that would be the appropriate Federal banking agency for the institution after the proposed conversion in writing of any ongoing supervisory or investigative proceedings that the appropriate Federal banking agency for the institution proposing to convert believes is likely to result, in the near term and absent the proposed conversion, in a cease and desist order (or other formal enforcement order) or memorandum of understanding with respect to a significant supervisory matter; and #####
(B)provide the Federal banking agency that would be the appropriate Federal banking agency for the institution after the proposed conversion access to all investigative and supervisory information relating to the proceedings described in subparagraph (A). * * * * * * *
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Sec. 612
RESTRICTION ON CONVERSIONS OF TROUBLED BANKS
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