---
kind: "section"
citation: "12 U.S.C. § 1831i"
title: "12"
title_heading: "Banks and Banking"
number: "1831i"
heading: "Agency disapproval of directors and senior executive officers of insured depository institutions or depository institution holding companies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1831i"
units:
  - "Chapter 16 — Federal Deposit Insurance Corporation"
---

# §1831i. Agency disapproval of directors and senior executive officers of insured depository institutions or depository institution holding companies

- (a) **Prior notice required—** An [insured depository institution](/usc/12/1813.md?p=c-2) or [depository institution holding company](/usc/12/1813.md?p=w-1) shall notify the [appropriate Federal banking agency](/usc/12/1813.md?p=q) of the proposed addition of any individual to the [board of directors](/usc/12/1813.md?p=k) or the employment of any individual as a senior executive officer of such institution or holding [company](/usc/12/1813.md?p=w-7) at least 30 days (or such other period, as determined by the [appropriate Federal banking agency](/usc/12/1813.md?p=q)) before such addition or employment becomes effective, if—
  - (1) the [insured depository institution](/usc/12/1813.md?p=c-2) or [depository institution holding company](/usc/12/1813.md?p=w-1) is not in compliance with the minimum capital requirement applicable to such institution or is otherwise in a troubled condition, as determined by such agency on the basis of such institution’s or holding [company](/usc/12/1813.md?p=w-7)’s most recent report of condition or report of examination or inspection; or
  - (2) the agency determines, in connection with the review by the agency of the plan required under [section 1831o](/usc/12/1831o.md) of this title or otherwise, that such prior notice is appropriate.
- (b) **Disapproval by agency—** An [insured depository institution](/usc/12/1813.md?p=c-2) or [depository institution holding company](/usc/12/1813.md?p=w-1) may not add any individual to the [board of directors](/usc/12/1813.md?p=k) or employ any individual as a senior executive officer if the [appropriate Federal banking agency](/usc/12/1813.md?p=q) issues a notice of disapproval of such addition or employment before the end of the notice period, not to exceed 90 days, beginning on the date the agency receives notice of the proposed action pursuant to [subsection (a)](#a).
- (c) **Exception in extraordinary circumstances—**
  - (1) **In general—** Each [appropriate Federal banking agency](/usc/12/1813.md?p=q) may prescribe by regulation conditions under which the prior notice requirement of [subsection (a)](#a) may be waived in the event of extraordinary circumstances.
  - (2) **No effect on disapproval authority of agency—** Such waivers shall not affect the authority of each agency to issue notices of disapproval of such additions or employment of such individuals within 30 days after each such waiver.
- (d) **Additional information—** Any notice submitted to an [appropriate Federal banking agency](/usc/12/1813.md?p=q) with respect to an individual by any [insured depository institution](/usc/12/1813.md?p=c-2) or [depository institution holding company](/usc/12/1813.md?p=w-1) pursuant to [subsection (a)](#a) shall include—
  - (1) the information described in [section 1817(j)(6)(A) of this title](/usc/12/1817.md?p=j-6-A) about the individual; and
  - (2) such other information as the agency may prescribe by regulation.
- (e) **Standard for disapproval—** The [appropriate Federal banking agency](/usc/12/1813.md?p=q) shall issue a notice of disapproval with respect to a notice submitted pursuant to [subsection (a)](#a) if the competence, experience, character, or integrity of the individual with respect to whom such notice is submitted indicates that it would not be in the best interests of the depositors of the [depository institution](/usc/12/1813.md?p=c-1) or in the best interests of the public to permit the individual to be employed by, or associated with, the [depository institution](/usc/12/1813.md?p=c-1) or [depository institution holding company](/usc/12/1813.md?p=w-1).
- (f) **Definition regulations—** Each [appropriate Federal banking agency](/usc/12/1813.md?p=q) shall prescribe by regulation a definition for the terms “troubled condition” and “senior executive officer” for purposes of [subsection (a)](#a).

## Source credit

(Sept. 21, 1950, ch. 967, § 2[32], as added Pub. L. 101–73, title IX, § 914(a), Aug. 9, 1989, 103 Stat. 484; amended Pub. L. 104–208, div. A, title II, § 2209, Sept. 30, 1996, 110 Stat. 3009–409.)

## Notes

### Editorial Notes

### Amendments

1996—Subsec. (a). Pub. L. 104–208, § 2209(1)(A), (B), in introductory provisions, inserted “(or such other period, as determined by the appropriate Federal banking agency)” after “30 days” and substituted “if” for “if the insured depository institution or depository institution holding company”.

Subsec. (a)(1). Pub. L. 104–208, § 2209(1)(E), inserted “the insured depository institution or depository institution holding company” before “is not in compliance” and substituted “; or” for period at end.

Pub. L. 104–208, § 2209(1)(C), (D), redesignated par. (3) as (1) and struck out former par. (1) which read as follows: “has been chartered less than 2 years in the case of an insured depository institution;”.

Subsec. (a)(2). Pub. L. 104–208, § 2209(1)(C), (F), added par. (2) and struck out former par. (2) which read as follows: “has undergone a change in control within the preceding 2 years; or”.

Subsec. (a)(3). Pub. L. 104–208, § 2209(1)(D), redesignated par. (3) as (1).

Subsec. (b). Pub. L. 104–208, § 2209(2), substituted “notice period, not to exceed 90 days,” for “30-day period”.