Page:United States Statutes at Large Volume 107 Part 3.djvu/467

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PUBLIC LAW 103-204—DEC. 17, 1993 107 STAT. 2405 (1) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3); and (2) by inserting before paragraph (2), as redesignated, the following new paragraph: "(1) PERSONS WHO ENGAGED IN IMPROPER CONDUCT WITH. Regulations. OR CAUSED LOSSES TO, DEPOSITORY INSTITUTIONS. —The Corporation shall prescribe regulations which, at a minimum, shall prohibit the sale of assets of a failed institution by the Corporation to— "(A) any person who— "(i) has defaulted, or was a member of a partnership or an officer or director of a corporation that 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 frt)m any institution for which the Corporation has been ^ appointed as conservator or receiver; "(B) any person who 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 substajitial loss to such failed institution; "(C) any person who 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) any person who has demonstrated a pattern or practice of defalcation regarding obligations to such failed institution.". (b) TECHNICAL AND CONFORMING AMENDMENTS. —Section ll(p) of the Federal Deposit Insurance Act (12 U.S.C. 1821(p)) is amended— (1) in paragraph (2) (as redesignated by subsection (a))— (A) by striking "individual" and inserting "person"; and (B) by striking "paragraph (2)" and inserting "paragraph (3)"; (2) in paragraph (3) (as redesignated by subsection (a))— (A) by striking "individual" each place such term appears and inserting "person"; and (B) by striking "Paragraph (1)" and inserting "Paragraphs (1) and (2)"; (3) by adding at the end the following new paragraph: "(4) DEFINITION OF DEFAULT.—For purposes of this subsection, the term 'defaiilt' means a failure to comply with the terms of a loan or other obligation to such an extent that the property securing the obligation is foreclosed upon."; and (4) by striking the heading and inserting the following new heading: "(p) CERTAIN SALES OF ASSETS PROHIBITED.—".