INSTITUTION-AFFILIATED PARTIES OF A DEPOSITORY INSTITUTION SUBJECT TO ADMINISTRATIVE ENFORCEMENT ORDERS; SUBSTITUTION OF “DEPOSITORY INSTITUTION“ FOR “BANK” IN ENFORCEMENT PROVISIONS.

SEC. 901. INSTITUTION-AFFILIATED PARTIES OF A DEPOSITORY INSTITUTION SUBJECT TO ADMINISTRATIVE ENFORCEMENT ORDERS; SUBSTITUTION OF “DEPOSITORY INSTITUTION“ FOR “BANK” IN ENFORCEMENT PROVISIONS. (a) Institution-Affiliated Party Defined.—Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by adding at the end thereof the following new subsection: “(r) Institution-Affiliated Party Defined.—For purposes of this Act, the term ‘institution-affiliated party’ means— “(1) any committee member, director, officer, or employee of, or agent for, an insured credit union; “(2) any consultant, joint venture partner, and any other person as determined by the Board (by regulation or on a case-by-case basis) who participates in the conduct of the affairs of an insured credit union; and “(3) any independent contractor (including any attorney, appraiser, or accountant) who knowingly or recklessly participates in— “(A) any violation of any law or regulation; “(B) any breach of fiduciary duty; or “(C) any unsafe or unsound practice, which caused or is likely to cause more than a minimal financial loss to, or a significant adverse effect on, the insured credit union.”. (b) Amendments Relating to Use of “Institution-Affiliated Party”.— 103 STAT. 447 (1) FDIA.— Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended— (A) in subsection (b)(1)— (i) by striking out “director, officer, employee, agent, or other person participating in the conduct of the affairs of such a bank” and inserting in lieu thereof “institution-affiliated party”; and (ii) by striking out “directors, officers, employees, agents, or other persons participating in the conduct of the affairs of such bank” and inserting in lieu thereof “institution-affiliated parties”; (B) in each of subsections (b)(1) and (c)— (i) by striking out “director, officer, employee, agent, or other person participating in the conduct of the affairs of such bank” each place such term appears and inserting in lieu thereof “institution-affiliated party”; and (ii) by striking out “such director, officer, employee, agent, or other person” each place such term appears and inserting in lieu thereof “such party”; (C) in subsection (e)(4), as so redesignated by section 903(a)(2) of this Act— (i) by striking out “a director, officer, or other person from office or to prohibit his participation” and inserting in lieu thereof “an institution-affiliated party from office or to prohibit such party from participating”; (ii) by striking out “such director or officer or other person” and inserting in lieu thereof “such party”; (iii) by striking out “such director, officer, or other person” and inserting in lieu thereof “such party”; (iv) by striking out “he” and inserting in lieu thereof “such party”; (v) by striking out “any director, officer or other person” and inserting in lieu thereof “any such party”; and (vi) by striking out “the director, officer, or other person concerned” and inserting in lieu thereof “such party”; (D) in subsection (e)(5), as so redesignated by section 903(a)(2) of this Act— (i) by inserting after “the term ‘officer’” the following: “within the term ‘institution-affiliated party’ ”; and (ii) by inserting after “the term ‘director’ ” the following: “within the term ‘institution-affiliated party’ as used in this subsection”; (E) in subsection (f)— (i) by striking out “any director, officer, or other person’ and inserting in lieu thereof “any institution-affiliated party”; and (ii) by striking out “such director, officer, or other person” each place such term appears and inserting in lieu thereof “such party”; (F) in subsection (g)(1)— (i) by striking out “director or officer of an insured bank, or other person participating in the conduct of 103 STAT. 448the affairs of such bank” and inserting in lieu thereof “institution-affiliated party”; (ii) by striking out “the individual” each place such term appears and inserting in lieu thereof “such party”; (iii) by striking out “such director, officer, or other person” each place such term appears and inserting in lieu thereof “such party”; (iv) by striking out “him” each place such term appears and inserting in lieu thereof “such party”; (v) by striking out “director, officer or other person” and inserting in lieu thereof “party”; and (vi) by striking out “whereupon such director or officer” and inserting in lieu thereof “whereupon such party (if a director or an officer)”; (G) in subsection (g)(3)— (i) by striking out “the director, officer, or other person concerned” and inserting in lieu thereof “the institution-affiliated party concerned”; (ii) by striking out “such individual” each place such term appears and inserting in lieu thereof “such Party”; (iii) by striking out “the concerned director, officer, or other person” and inserting in lieu thereof “such party”; (iv) by striking out “the director, officer, or other person“ each place such term appears (except in “the director, officer, or other person concerned”) and inserting in lieu thereof “such party”; (v) by striking out “said director, officer or other person” and inserting in lieu thereof “such party”; and (vi) by striking out “the director, officer or other person” and inserting in lieu thereof “such party”; (H) in subsection (h)(2), by striking out “director or officer or other person” and inserting in lieu thereof “institution-affiliated party”; (I) in subsection (I), by striking out “director or officer thereof or other person participating in the conduct of its affairs” and inserting in lieu thereof “institution-affiliated party”; and (J) in subsection (m), by striking out “director or officer or other person participating in the conduct of its affairs” and inserting in lieu thereof “institution-affiliated party”. (2) FCUA.—Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended— (A) in subsection (e)(1)— (i) by striking out “director, officer, committee member, employee, agent, or other person participating in the conduct of the affairs of such a credit union“ and inserting in lieu thereof “institution-affiliated party”; and (ii) by striking out “directors, officers, committee members, employees, agents, or other persons participating in the conduct of the affairs of such credit union” and inserting in lieu thereof “institution-affiliated parties”; (B) in each of subsections (e)(1) and (f)— 103 STAT. 449 (i) by striking out “director, officer, committee member, employee, agent, or other person participating in the conduct of the affairs of such credit union” each place such term appears and inserting in lieu thereof “institution-affiliated party”; and (ii) by striking out “such director, officer, committee member, employee, agent, or other person” each place such term appears and inserting in lieu thereof “such party”; and (C) in subsection (f)(1), by striking out “such director, officer, committee member, employee, agents, or other person” and inserting in lieu thereof “such party”; (D) in subsection (i)(1)— (i) by striking out “director, committee member, or officer of an insured credit union, or other person participating in the conduct of the affairs of such credit union” and inserting in lieu thereof “institution-affiliated party”; (ii) by striking out “the individual” each place such term appears and inserting in lieu thereof “such party”; „ , (iii) by striking out “such director, committee member, officer, or other person” each place such term appears and inserting in lieu thereof “such party”; (iv) by striking out “him” and inserting in lieu thereof “such party”; (v) by striking out “director, officer or other person” and inserting in lieu thereof “party”; and (vi) by striking out “whereupon such director, committee member, or officer” and inserting in lieu thereof “whereupon such party (if a director, a committee member, or an officer)”; (E) in subsection (i)(3)— (i) by striking out “director, committee member, officer, or other person concerned” and inserting in lieu thereof “institution-affiliated party concerned”, and (ii) by striking out “such individual” each place such term appears and inserting in lieu thereof “such party”; (iii) by striking out “the concerned director, committee member, officer, or other person” and inserting in lieu thereof “such party”; (iv) by striking out “the director, committee member, officer, or other person” each place such term appears (except in “the director, committee member, officer, or other person concerned”) and inserting in lieu thereof “such party”; and (v) by striking out “said director, committee member, officer or other person“ and inserting in lieu thereof “such party”; (F) in subsection (j)(2), by striking out “director, officer, committee member, or other person” and inserting in lieu thereof “institution-affiliated party”; and (G) in subsection (o), by striking out “director, officer, committee member or other person participating in the conduct of its affairs” and inserting in lieu thereof “institution-affiliated party”. 103 STAT. 450 (d) Substitution of “Depository Institution” for “Bank”.—Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), as amended by subsection (b)(1) of this section, is amended by striking out “bank” and “banks” each place such terms appear and inserting in lieu thereof “depository institution” and “depository institutions”, respectively, except in subsections (b)(3), (b)(4), (m), (o), and (r).