PUBLIC LAW 102-550—OCT. 28, 1992

106 STAT. 4053

ice or participation by such party may pose a threat
to the interests of the depository institution's deposi-
tors or may threaten to impair public confidence in
the depository institution, issue and serve upon such
party an order removing such party from office or
prohibiting such party from further participation in
any manner in the conduct of the affairs of the deposi-
tory institution without the prior written consent of
the appropriate agency.

•Xu) REQUIRED FOR CERTAIN OFFENSES.—In the
case of a judgment of conviction or agreement against
an institution-affiliated party in connection with a vio-
lation described in subparagraph (AXii), the appro-
priate Federal banking agency shall issue and serve
upon such party an order removing such party from
office or prohibiting such party from further participa-
tion in any manner in the conduct of the affairs of
the depository institution without the prior written
consent of the appropriate agency.
"(D) PROVISIONS APPLICABLE TO ORDER.—

"(i) COPY.—A copy of any order under subpara-
graph (C) shall also be served upon the depository
institution, whereupon the institution-affiliated party
who is subject to the order (if a director or an officer)
shall cease to be a director or officer of such depository
institution.

"(ii) EFFECT OF ACQUITTAL.—A finding of not guilty
or other disposition of the charge shall not preclude
the agency from instituting proceedings after such find-
ing or disposition to remove such party from office
or to prohibit further participation in depository
institution affairs, pursuant to paragraph (1), (2), or
(3) of subsection (e) of this section.

"(iii) EFFECTIVE PERIOD.—Any notice of suspension
or order of removal issued under this paragraph shall
remain effective and outstanding until the completion
of any hearing or appeal authonzed under paragraph
(3) unless terminated by the agency.",
(b) CREDIT UNIONS.—

(1) VIOLATION OF REPORTING REQUIREMENTS.—Section
206(gX2) of the Federal Credit Union Act (12 U.S.C. 1786(gX2))
is amended to read as follows:
"(2) SPECIFIC VIOLATIONS.—

"(A) IN GENERAL.—Whenever the Board determines
that—

"(i) an institution-affiliated party has committed
a violation of any provision of subchapter II of chapter
53 of title 31, United States Code, unless such violation
was inadvertent or unintentional;

"(ii) an officer or director of an insured credit union
has knowledge that an institution-affiliated party of
the insured credit union has violated any such provi-
sion or any provision of law referred to in subsection
(iXlXAXii);or

"(iii) an officer or director of an insured credit
union has committed any violation of the Depository
Institution Management Interlocks Act,