106 STAT. 4054 PUBLIC LAW 102-550—OCT. 28, 1992

the Board may serve upon such party, officer, or director
a written notice of the Board's intention to remove such
officer or director from office.

"(B) FACTORS TO BE CONSIDERED.—In determining
whether an officer or director should be removed as a
result of the application of subparagraph (AXii), the Board
shall consider whether the officer or director took appro-
priate action to stop, or to prevent the recurrence of, a
violation described in such subparagraph.".
(2) CERTAIN FELONY CHARGES.—Section 206(iXD of the Fed-
eral Credit Union Act (12 U.S.C. 1786(iXD) is amended to
read as follows:

"(1) SUSPENSION OR PROHIBITION AUTHORIZED.—

"(A) IN GENERAL.—Whenever any institution-affiliated
party is charged in any information, indictment, or com-
plaint, with the commission of or participation in—

"(i) a crime involving dishonesty or breach of trust
which is punishable by imprisonment for a term
exceeding one year under State or Federal law, or
"(ii) a criminal violation of section 1956, 1957,
or 1960 of title 18, United States Code, or section
5322 of title 31, United States Code,

the Board may, if continued service or participation by
such party may pose a threat to the interests of the credit
union s members or may threaten to impair public con-
fidence in the credit union, by written notice served upon
such party, suspend such party from office or prohibit
such party from further participation in any manner in
the conduct of the affairs of the credit union.
"(B) PROVISIONS APPLICABLE TO NOTICE.—

"(i) COPY.—A copy of any notice under subpara-
graph (A) shall also be served upon the credit union.
"(ii) EFFECTIVE PERIOD.—A suspension or prohibi-
tion under subparagraph (A) shall remain in effect
until the information, indictment, or complaint referred
to in such subparagraph is finally disposed of or until
terminated by the Board.
a(C) REMOVAL OR PROHIBITION.—

"(i) IN GENERAL.—If a judgment of conviction or
an agreement to enter a pretrial diversion or other
similar program is entered against an institution-affili-
ated party in connection with a crime described in
subparagraph (AXD, at such tune as such judgment
is not subject to further appellate review, the Board
may, if continued service or participation by such party
may pose a threat to the interests of the credit union is
members or may threaten to impair public confidence
in the credit union, issue and serve upon such party
an order removing such party from office or prohibiting
such party from further participation hi any manner
in the conduct of the affairs of the credit union without
the prior written consent of the Board.

"(ii) REQUIRED FOR CERTAIN OFFENSES—In the case
of a judgment of conviction or agreement against an
institution-affiliated party in connection with a viola-
tion described in subparagraph (AXii), the Board shall
issue and serve upon such party an order removing