Page:United States Statutes at Large Volume 106 Part 5.djvu/416

From Wikisource
Jump to: navigation, search
This page needs to be proofread.


106 STAT. 4054 PUBLIC LAW 102-550—CXTT. 28, 1992 the Board may serve upon such party, officer, or director a written notice of the Board's intention to remove sudi 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 (A)(ii), the Board shall consider whether the ofificer or director took appropriate action to stop, or to prevent the recurrence of, a violation described in such subparagraph.". (2) CERTAIN FELONY CHARGES. —Section 206(i)(l) of the Federal Credit Union Act (12 U.S.C. 1786(i)(l)) 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 complaint, 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 unions members or may threaten to imjiair public confidence in the credit union, by written notice served upon such party, suspend such party hx>m office or prohibit such party from further participation in any manner in the conduct of the affidrs of the credit union. "(B) PROVISIONS APPLICABLE TO NOTICE.— "(i) COPY.— A copy of any notice under subparagraph (A) shall also be served upon the credit union.

"(ii) EFFECTIVE PERIOD. —^A suspension or prohibition 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. "(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-affiliated party in connection with a crime described in subparagraph (A)(i)> at such time as such iudcment 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^ members or ma}^ 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 in 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 violation described in subparagraph (A)(ii), the Board shall issue and serve upon such party an order removing