---
kind: "section"
citation: "12 U.S.C. § 3204"
title: "12"
title_heading: "Banks and Banking"
number: "3204"
heading: "Exceptions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3204"
units:
  - "Chapter 33 — Depository Institution Management Interlocks"
---

# §3204. Exceptions


The prohibitions contained in sections [3202](/usc/12/3202.md) and [3203](/usc/12/3203.md) of this title shall not apply in the case of any one or more of the following or [subsidiary](/usc/12/3201.md?p=3-A) thereof:

- (1) A [depository institution](/usc/12/3201.md?p=1) or [depository holding company](/usc/12/3201.md?p=2) which has been placed formally in liquidation, or which is in the hands of a receiver, conservator, or other official exercising a similar function.
- (2) A corporation operating under section [25](/usc/12/25.md) or [25(a)](/usc/12/25.md)[^1] of the Federal Reserve Act [[12 U.S.C. 601](/usc/12/601.md) et seq., 611 et seq.].
- (3) A [credit](/usc/12/5481.md?p=7) union being served by a [management official](/usc/12/3201.md?p=4) of another [credit](/usc/12/5481.md?p=7) union.
- (4) A [depository institution](/usc/12/3201.md?p=1) or [depository holding company](/usc/12/3201.md?p=2) which does not do business within any [State](/usc/12/1707.md?p=d) of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands except as an incident to its activities outside the United States.
- (5) A [State](/usc/12/1707.md?p=d)-chartered savings and loan guaranty corporation.
- (6) A Federal Home Loan Bank or any other bank organized specifically to serve [depository institutions](/usc/12/3201.md?p=1).
- (7) A [depository institution](/usc/12/3201.md?p=1) or a [depository holding company](/usc/12/3201.md?p=2) which—
  - (A) is closed or is in danger of closing, as determined by the [appropriate Federal depository institutions regulatory agency](/usc/12/3201.md?p=6) in accordance with regulations prescribed by such agency; and
  - (B) is acquired by another [depository institution](/usc/12/3201.md?p=1) or [depository holding company](/usc/12/3201.md?p=2),

  during the 5-year period beginning on the date of the acquisition of the [depository institution](/usc/12/3201.md?p=1) or [depository holding company](/usc/12/3201.md?p=2) described in [subparagraph (A)](#7-A).

- (8)
  - (A) A diversified savings and loan holding company (as defined in section 1730a(a)(1)(F)[^1] of this title) with respect to the service of a [director](/usc/12/5481.md?p=10) of such company who is also a [director](/usc/12/5481.md?p=10) of any nonaffiliated [depository institution](/usc/12/3201.md?p=1) or [depository holding company](/usc/12/3201.md?p=2) (including a savings and loan holding company) if—
    - (i) notice of the proposed dual service is given by such diversified savings and loan holding company to—
      - (I) the [appropriate Federal depository institutions regulatory agency](/usc/12/3201.md?p=6) for such company; and
      - (II) the [appropriate Federal depository institutions regulatory agency](/usc/12/3201.md?p=6) for the nonaffiliated [depository institution](/usc/12/3201.md?p=1) or [depository holding company](/usc/12/3201.md?p=2) of which such [person](/usc/12/5481.md?p=19) is also a [director](/usc/12/5481.md?p=10),

      not less than 60 days before such dual service is proposed to begin; and

    - (ii) the proposed dual service is not disapproved by any such [appropriate Federal depository institutions regulatory agency](/usc/12/3201.md?p=6) before the end of such 60-day period.
  - (B) Any [appropriate Federal depository institutions regulatory agency](/usc/12/3201.md?p=6) may disapprove, under [subparagraph (A)(ii)](#8-A-ii), a notice of proposed dual service by any individual if such agency finds that—
    - (i) the dual service cannot be structured or limited so as to preclude the dual service’s resulting in a monopoly or substantial lessening of competition in financial services in any part of the United States;
    - (ii) the dual service would lead to substantial conflicts of interest or unsafe or unsound practices; or
    - (iii) the diversified savings and loan holding company has neglected, failed, or refused to furnish all the information required by such agency.
  - (C) Any [appropriate Federal depository institutions regulatory agency](/usc/12/3201.md?p=6) may, at any time after the end of the 60-day period referred to in [subparagraph (A)](#8-A), require that any dual service by any individual which was not disapproved by such agency during such period be terminated if a change in circumstances occurs with respect to any [depository institution](/usc/12/3201.md?p=1) or [depository holding company](/usc/12/3201.md?p=2) of which such individual is a [director](/usc/12/5481.md?p=10) that would have provided a basis for disapproval of the dual service during such period.
- (9) Any [savings association](/usc/12/1861.md?p=b-5) (as defined in section 10(a)(1)(A) of the Home Owners’ Loan Act [[12 U.S.C. 1467a(a)(1)(A)](/usc/12/1467a.md?p=a-1-A)] or any savings and loan holding company (as defined in [section 10(a)(1)(D)](/usc/12/10.md) of such Act) which has issued stock in connection with a qualified stock issuance pursuant to [section 10(q)](/usc/12/10.md) of such Act, except that this paragraph shall apply only with respect to service as a single [management official](/usc/12/3201.md?p=4) of such [savings association](/usc/12/1861.md?p=b-5) or holding company, or any [subsidiary](/usc/12/3201.md?p=3-A) of such [savings association](/usc/12/1861.md?p=b-5) or holding company, by a single [management official](/usc/12/3201.md?p=4) of the savings and loan holding company which purchased the stock issued in connection with such qualified stock issuance, and shall apply only when the [Director](/usc/12/5481.md?p=10) of the [Office](/usc/12/3201.md?p=5) of Thrift Supervision has determined that such service is consistent with the purposes of this chapter and the Home Owners’ Loan Act [[12 U.S.C. 1461](/usc/12/1461.md) et seq.].

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 95–630, title II, § 205, Nov. 10, 1978, 92 Stat. 3673; Pub. L. 97–320, title IV, § 425(d), Oct. 15, 1982, 96 Stat. 1524; Pub. L. 100–650, §§ 4, 5(a), Nov. 10, 1988, 102 Stat. 3819; Pub. L. 101–73, title VI, § 604(a), Aug. 9, 1989, 103 Stat. 410.)

## Notes

### Editorial Notes

### References in Text

Section 25 of the Federal Reserve Act, referred to in par. (2), is classified to subchapter I (§ 601 et seq.) of chapter 6 of this title. Section 25(a) of the Federal Reserve Act, which is classified to subchapter II (§ 611 et seq.) of chapter 6 of this title, was renumbered section 25A of that act by Pub. L. 102–242, title I, § 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.

Section 1730a of this title, referred to in par. (8)(A), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.

This chapter, referred to in par. (9), was in the original “this Act” and was translated as reading “this title”, meaning title II of Pub. L. 95–630, known as the Depository Institution Management Interlocks Act, to reflect the probable intent of Congress.

The Home Owners’ Loan Act, referred to in par. (9), is act June 13, 1933, ch. 64, 48 Stat. 128, which is classified generally to chapter 12 (§ 1461 et seq.) of this title. For complete classification of this Act to the Code, see section 1461 of this title and Tables.

### Amendments

1989—Par. (9). Pub. L. 101–73 added par. (9).

1988—Par. (7). Pub. L. 100–650, § 4, added par. (7).

Par. (8). Pub. L. 100–650, § 5(a), added par. (8).

1982—Par. (2). Pub. L. 97–320 substituted “25(a)” for “25A”.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective upon the expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as a note under section 375b of this title.