Page:United States Statutes at Large Volume 104 Part 6.djvu/486

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104 STAT. 4876 PUBLIC LAW 101-647—NOV. 29, 1990 (b) INSURED CREDIT UNIONS.—Section 207 of the Federal Credit Union Act (12 U.S.C. 1787) is amended by adding at the end the following new subsection: "(q) PROHIBITION ON CERTAIN ACQUISITIONS OF ASSETS. — "(1) CONVICTED DEBTORS. —Except as provided in paragraph (2), any individual who— "(A) has been convicted of an offense under section 215, 657, 1006, 1014, 1032, 1341, 1343, or 1344 of title 18, United States Code, or of conspiring to commit any such offense, affecting any insured credit union for which the Board is appointed conservator or liquidating agent; and (B) is in default on any loan or other extension of credit from such insured credit union which, if not paid, will cause substantial loss to the credit union, the National Credit Union Share Insurance Fund, or the Board, may not purchase any asset of such credit union from the conservator or liquidating agent. "(2) SETTLEMENT OP CLAIMS. —Paragraph (1) shall not apply to the sale or transfer by the Board of any asset of any insured credit union to any individual if the sale or transfer of the asset resolves or settles, or is part of the resolution or settlement, of— "(A) 1 or more claims that have been, or could have been, asserted by the Board against the individual; or "(B) obligations owed by the individual to the insured credit union or the Board.". (c) LIMITATION ON RTC ASSET SALES, —Section 21A(f) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(f)) is amended to read as follows: " (f) LIMITATION ON CERTAIN CORPORATION ACTIVITIES. — Regulations. "(1) CERTAIN SALES PROHIBITED. —The Corporation shall prescribe regulations to prohibit the sale of assets of a failed institution by the Corporation to any person who— "(A)(i) has defaulted, or was a member of a partnership or an officer or director of a corporation which has defaulted, on 1 or more obligations the aggregate amount of which exceed $1,000,000 to such failed institution; "(ii) has been found to have engaged in fraudulent activity in connection with any obligation referred to in clause (i); and "(iii) proposes to purchase any such asset in whole or in part through the use of the proceeds of a loan or advance of credit from the Corporation or from any institution subject to the jurisdiction of the Corporation pursuant to paragraph (3)(A); "(B) participated, as an officer or director of such failed institution or of any affiliate of such institution, in a material way in transactions that resulted in a substantial loss to such failed institution; "(C) has been removed from, or prohibited from participating in the affairs of, such failed institution pursuant to any final enforcement action by an appropriate Federal banking agency; or "(D) has demonstrated a pattern or practice of defalcation regarding obligations to such failed institution. " (2) SETTLEMENT OF CLAIMS; DEFINITIONS. — "(A) SETTLEMENT OF CLAIMS.—Nothing in this subsection shall prohibit the Corporation from selling or otherwise