US Code

Public Law 119-102 (07/12/2026)

12 U.S.C. § 1831o–1

Source of strength

Section text and notes

(a)

Holding companies

The appropriate Federal banking agency for a bank holding company or savings and loan holding company shall require the bank holding company or savings and loan holding company to serve as a source of financial strength for any subsidiary of the bank holding company or savings and loan holding company that is a depository institution.

(b)

Other companies

If an insured depository institution is not the subsidiary of a bank holding company or savings and loan holding company, the appropriate Federal banking agency for the insured depository institution shall require any company that directly or indirectly controls the insured depository institution to serve as a source of financial strength for such institution.

(c)

Authority of State insurance regulator

(1)

In general

section 1844(g) of this titleThe provisions of shall apply to a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, and to any other company that is an insurance company and that directly or indirectly controls an insured depository institution, to the same extent as the provisions of that section apply to a bank holding company that is an insurance company.

(2)

Rule of construction

section 1844(g) of this titleRequiring a bank holding company that is an insurance company, a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, or any other company that is an insurance company and that directly or indirectly controls an insured depository institution to serve as a source of financial strength under this section shall be deemed an action of the Board that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for purposes of .

(d)

Reports

The appropriate Federal banking agency for an insured depository institution described in subsection (b) may, from time to time, require the company, or a company that directly or indirectly controls the insured depository institution, to submit a report, under oath, for the purposes of—
(1)
assessing the ability of such company to comply with the requirement under subsection (b); and
(2)
enforcing the compliance of such company with the requirement under subsection (b).
(e)

Rules

section 5411 of this titleNot later than 1 year after the transfer date, as defined in , the appropriate Federal banking agencies shall jointly issue final rules to carry out this section.

(f)

Definition

In this section, the term “source of financial strength” means the ability of a company that directly or indirectly owns or controls an insured depository institution to provide financial assistance to such insured depository institution in the event of the financial distress of the insured depository institution.

Sept. 21, 1950, ch. 967, § 2 Pub. L. 111–203, title VI, § 616(d)124 Stat. 1616 Pub. L. 114–113, div. O, title VII, § 706(a)129 Stat. 3029 ([38A], as added , , ; amended , , .)

Editorial Notes

Amendments

Pub. L. 114–1132015—Subsecs. (c) to (f). added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively.

Statutory Notes and Related Subsidiaries

Effective Date

section 616(e) of Pub. L. 111–203section 1467a of this titleSection effective on the transfer date, see , set out as an Effective Date of 2010 Amendment note under .