---
kind: "section"
citation: "12 C.F.R. § 390.419"
title: "12"
number: "390.419"
heading: "Unsafe or unsound practices."
url: "https://uscodex.org/cfr/12/390.419"
---

# §390.419. Unsafe or unsound practices.

- (a) No person shall directly or indirectly,
  - (1) Employ any device, scheme or artifice to defraud,
  - (2) Make any untrue statement of a material fact or omit to state a material fact necessary in order to make statements made, in light of the circumstances under which they were made, not misleading, or
  - (3) Engage in any act, practice, or course of business which operates as a fraud or deceit upon any person, in connection with the purchase or sale of any security of a State savings association.
- (b) Violations of this subpart shall constitute an unsafe or unsound practice within the meaning of section 8 of the Federal Deposit Insurance Act, as amended, [12 U.S.C. 1818](/usc/12/1818.md).
- (c) Nothing in this subpart shall be construed as a limitation on the applicability of section 10(b) of the Exchange Act ([15 U.S.C. 78j(b)](/usc/15/78j.md?p=b)) or [Rule 10b-5](/cfr/12/10b-5.md) promulgated thereunder ([17 CFR 240.10b-5](/cfr/17/240.10b-5.md)).

## Notes

### Authority

Authority: 12 U.S.C. 1819. Subpart Q also issued under 12 U.S.C. 1462; 1462a; 1463; 1464. Subpart W also issued under 12 U.S.C. 1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m; 78n; 78p; 78w.

### Source

Source: 76 FR 47655, Aug. 5, 2011, unless otherwise noted.