---
kind: "section"
citation: "12 C.F.R. § 711.1"
title: "12"
number: "711.1"
heading: "Authority, purpose, and scope."
url: "https://uscodex.org/cfr/12/711.1"
---

# §711.1. Authority, purpose, and scope.

- (a) **Authority.** This part is issued under the provisions of the Depository Institution Management Interlocks Act (Interlocks Act) ([12 U.S.C. 3201](/usc/12/3201.md) et seq).
- (b) **Purpose.** The purpose of the Interlocks Act and this part is to foster competition by generally prohibiting a management official from serving two nonaffiliated depository organizations in situations where the management interlock likely would have an anticompetitive effect.
- (c) **Scope.** This part applies to management officials of federally insured credit unions. [Section 711.4(c)](/cfr/12/711.4.md?p=c) exempts a management official of a credit union from the prohibitions of the Interlocks Act when the individual serves as a management official of another credit union. Therefore, the Interlocks Act prohibitions contained in this part only apply to a management official of a credit union when that individual also serves as a management official of another type of depository organization (usually a bank or thrift).

## Notes

### Authority

Authority: 12 U.S.C. 1757 and 3201-3208.

### Source

Source: 61 FR 50702, Sept. 27, 1996, unless otherwise noted.