§ 1464. — Federal savings associations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1464]
TITLE 12--BANKS AND BANKING
CHAPTER 12--SAVINGS ASSOCIATIONS
Sec. 1464. Federal savings associations
(a) In general
In order to provide thrift institutions for the deposit of funds and
for the extension of credit for homes and other goods and services, the
Director is authorized, under such regulations as the Director may
prescribe--
(1) to provide for the organization, incorporation, examination,
operation, and regulation of associations to be known as Federal
savings associations (including Federal savings banks), and
(2) to issue charters therefor,
giving primary consideration of the best practices of thrift
institutions in the United States. The lending and investment powers
conferred by this section are intended to encourage such institutions to
provide credit for housing safely and soundly.
(b) Deposits and related powers
(1) Deposit accounts
(A) Subject to the terms of its charter and regulations of the
Director, a Federal savings association may--
(i) raise funds through such deposit, share, or other
accounts, including demand deposit accounts (hereafter in this
section referred to as ``accounts''); and
(ii) issue passbooks, certificates, or other evidence of
accounts.
(B) A Federal savings association may not--
(i) pay interest on a demand account; or
(ii) permit any overdraft (including an intraday overdraft)
on behalf of an affiliate, or incur any such overdraft in such
savings association's account at a Federal reserve bank or
Federal home loan bank on behalf of an affiliate.
All savings accounts and demand accounts shall have the same
priority upon liquidation. Holders of accounts and obligors of a
Federal savings association shall, to such extent as may be provided
by its charter or by regulations of the Director, be members of the
savings association, and shall have such voting rights and such
other rights as are thereby provided.
(C) A Federal savings association may require not less than 14
days notice prior to payment of savings accounts if the charter of
the savings association or the regulations of the Director so
provide.
(D) If a Federal savings association does not pay all
withdrawals in full (subject to the right of the association, where
applicable, to require notice), the payment of withdrawals from
accounts shall be subject to such rules and procedures as may be
prescribed by the savings association's charter or by regulation of
the Director. Except as authorized in writing by the Director, any
Federal savings association that fails to make full payment of any
withdrawal when due shall be deemed to be in an unsafe or unsound
condition.
(E) Accounts may be subject to check or to withdrawal or
transfer on negotiable or transferable or other order or
authorization to the Federal savings association, as the Director
may by regulation provide.
(F) A Federal savings association may establish remote service
units for the purpose of crediting savings or demand accounts,
debiting such accounts, crediting payments on loans, and the
disposition of related financial transactions, as provided in
regulations prescribed by the Director.
(2) Other liabilities
To such extent as the Director may authorize in writing, a
Federal savings association may borrow, may give security, may be
surety as defined by the Director and may issue such notes, bonds,
debentures, or other obligations, or other securities, including
capital stock.
(3) Loans from State housing finance agencies
(A) In general
Subject to regulation by the Director but without regard to
any other provision of this subsection, any Federal savings
association that is in compliance with the capital standards in
effect under subsection (t) of this section may borrow funds
from a State mortgage finance agency of the State in which the
head office of such savings association is situated to the same
extent as State law authorizes a savings association organized
under the laws of such State to borrow from the State mortgage
finance agency.
(B) Interest rate
A Federal savings association may not make any loan of funds
borrowed under subparagraph (A) at an interest rate which
exceeds by more than 1\3/4\ percent per annum the interest rate
paid to the State mortgage finance agency on the obligations
issued to obtain the funds so borrowed.
(4) Mutual capital certificates
In accordance with regulations issued by the Director, mutual
capital certificates may be issued and sold directly to subscribers
or through underwriters. Such certificates may be included in
calculating capital for the purpose of subsection (t) of this
section to the extent permitted by the Director. The issuance of
certificates under this paragraph does not constitute a change of
control or ownership under this chapter or any other law unless
there is in fact a change in control or reorganization. Regulations
relating to the issuance and sale of mutual capital certificates
shall provide that such certificates--
(A) are subordinate to all savings accounts, savings
certificates, and debt obligations;
(B) constitute a claim in liquidation on the general
reserves, surplus, and undivided profits of the Federal savings
association remaining after the payment in full of all savings
accounts, savings certificates, and debt obligations;
(C) are entitled to the payment of dividends; and
(D) may have a fixed or variable dividend rate.
(c) Loans and investments
To the extent specified in regulations of the Director, a Federal
savings association may invest in, sell, or otherwise deal in the
following loans and other investments:
(1) Loans or investments without percentage of assets
limitation
Without limitation as a percentage of assets, the following are
permitted:
(A) Account loans
Loans on the security of its savings accounts and loans
specifically related to transaction accounts.
(B) Residential real property loans
Loans on the security of liens upon residential real
property.
(C) United States Government securities
Investments in obligations of, or fully guaranteed as to
principal and interest by, the United States.
(D) Federal home loan bank and Federal National Mortgage
Association securities
Investments in the stock or bonds of a Federal home loan
bank or in the stock of the Federal National Mortgage
Association.
(E) Federal Home Loan Mortgage Corporation instruments
Investments in mortgages, obligations, or other securities
which are or have been sold by the Federal Home Loan Mortgage
Corporation pursuant to section 305 or 306 of the Federal Home
Loan Mortgage Corporation Act [12 U.S.C. 1454 or 1455].
(F) Other Government securities
Investments in obligations, participations, securities, or
other instruments issued by, or fully guaranteed as to principal
and interest by, the Federal National Mortgage Association, the
Student Loan Marketing Association, the Government National
Mortgage Association, or any agency of the United States. A
savings association may issue and sell securities which are
guaranteed pursuant to section 306(g) of the National Housing
Act [12 U.S.C. 1721(g)].
(G) Deposits
Investments in accounts of any insured depository
institution, as defined in section 3 of the Federal Deposit
Insurance Act [12 U.S.C. 1813].
(H) State securities
Investments in obligations issued by any State or political
subdivision thereof (including any agency, corporation, or
instrumentality of a State or political subdivision). A Federal
savings association may not invest more than 10 percent of its
capital in obligations of any one issuer, exclusive of
investments in general obligations of any issuer.
(I) Purchase of insured loans
Purchase of loans secured by liens on improved real estate
which are insured or guaranteed under the National Housing Act
[12 U.S.C. 1701 et seq.], the Servicemen's Readjustment Act of
1944, or chapter 37 of title 38.
(J) Home improvement and manufactured home loans
Loans made to repair, equip, alter, or improve any
residential real property, and loans made for manufactured home
financing.
(K) Insured loans to finance the purchase of fee simple
Loans insured under section 240 of the National Housing Act
[12 U.S.C. 1715z-5].
(L) Loans to financial institutions, brokers, and dealers
Loans to--
(i) financial institutions with respect to which the
United States or an agency or instrumentality thereof has
any function of examination or supervision, or
(ii) any broker or dealer registered with the Securities
and Exchange Commission,
which are secured by loans, obligations, or investments in which
the Federal savings association has the statutory authority to
invest directly.
(M) Liquidity investments
Investments (other than equity investments), identified by
the Director, for liquidity purposes, including cash, funds on
deposit at a Federal reserve bank or a Federal home loan bank,
or bankers' acceptances.
(N) Investment in the national housing partnership corporation,
partnerships, and joint ventures
Investments in shares of stock issued by a corporation
authorized to be created pursuant to title IX of the Housing and
Urban Development Act of 1968 [42 U.S.C. 3931 et seq.], and
investments in any partnership, limited partnership, or joint
venture formed pursuant to section 907(a) or 907(c) of such Act
[42 U.S.C. 3937(a) or (c)].
(O) Certain HUD insured or guaranteed investments
Loans that are secured by mortgages--
(i) insured under title X of the National Housing Act
[12 U.S.C. 1749aa et seq.],\1\ or
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(ii) guaranteed under title IV of the Housing and Urban
Development Act of 1968, under part B of the National Urban
Policy and New Community Development Act of 1970 [42 U.S.C.
4511 et seq.], or under section 802 of the Housing and
Community Development Act of 1974 [42 U.S.C. 1440].
(P) State housing corporation investments
Obligations of and loans to any State housing corporation,
if--
(i) such obligations or loans are secured directly, or
indirectly through an agent or fiduciary, by a first lien on
improved real estate which is insured under the provisions
of the National Housing Act [12 U.S.C. 1701 et seq.], and
(ii) in the event of default, the holder of the
obligations or loans has the right directly, or indirectly
through an agent or fiduciary, to cause to be subject to the
satisfaction of such obligations or loans the real estate
described in the first lien or the insurance proceeds under
the National Housing Act.
(Q) Investment companies
A Federal savings association may invest in, redeem, or hold
shares or certificates issued by any open-end management
investment company which--
(i) is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 [15
U.S.C. 80a-1 et seq.], and
(ii) the portfolio of which is restricted by such
management company's investment policy (changeable only if
authorized by shareholder vote) solely to investments that a
Federal savings association by law or regulation may,
without limitation as to percentage of assets, invest in,
sell, redeem, hold, or otherwise deal in.
(R) Mortgage-backed securities
Investments in securities that--
(i) are offered and sold pursuant to section 4(5) of the
Securities Act of 1933 [15 U.S.C. 77d(5)]; or
(ii) are mortgage related securities (as defined in
section 3(a)(41) of the Securities Exchange Act of 1934) [15
U.S.C. 78c(a)(41)],
subject to such regulations as the Director may prescribe,
including regulations prescribing minimum size of the issue (at
the time of initial distribution) or minimum aggregate sales
price, or both.
(S) Small business related securities
Investments in small business related securities (as defined
in section 78c(a)(53) of title 15), subject to such regulations
as the Director may prescribe, including regulations concerning
the minimum size of the issue (at the time of the initial
distribution), the minimum aggregate sales price, or both.
(T) Credit card loans
Loans made through credit cards or credit card accounts.
(U) Educational loans
Loans made for the payment of educational expenses.
(2) Loans or investments limited to a percentage of assets
or capital
The following loans or investments are permitted, but only to
the extent specified:
(A) Commercial and other loans
Secured or unsecured loans for commercial, corporate,
business, or agricultural purposes. The aggregate amount of
loans made under this subparagraph may not exceed 20 percent of
the total assets of the Federal savings association, and amounts
in excess of 10 percent of such total assets may be used under
this subparagraph only for small business loans, as that term is
defined by the Director.
(B) Nonresidential real property loans
(i) In general
Loans on the security of liens upon nonresidential real
property. Except as provided in clause (ii), the aggregate
amount of such loans shall not exceed 400 percent of the
Federal savings association's capital, as determined under
subsection (t) of this section.
(ii) Exception
The Director may permit a savings association to exceed
the limitation set forth in clause (i) if the Director
determines that the increased authority--
(I) poses no significant risk to the safe and sound
operation of the association, and
(II) is consistent with prudent operating practices.
(iii) Monitoring
If the Director permits any increased authority pursuant
to clause (ii), the Director shall closely monitor the
Federal savings association's condition and lending
activities to ensure that the savings association carries
out all authority under this paragraph in a safe and sound
manner and complies with this subparagraph and all relevant
laws and regulations.
(C) Investments in personal property
Investments in tangible personal property, including
vehicles, manufactured homes, machinery, equipment, or
furniture, for rental or sale. Investments under this
subparagraph may not exceed 10 percent of the assets of the
Federal savings association.
(D) Consumer loans and certain securities
A Federal savings association may make loans for personal,
family, or household purposes, including loans reasonably
incident to providing such credit, and may invest in, sell, or
hold commercial paper and corporate debt securities, as defined
and approved by the Director. Loans and other investments under
this subparagraph may not exceed 35 percent of the assets of the
Federal savings association, except that amounts in excess of 30
percent of the assets may be invested only in loans which are
made by the association directly to the original obligor and
with respect to which the association does not pay any finder,
referral, or other fee, directly or indirectly, to any third
party.
(3) Loans or investments limited to 5 percent of assets
The following loans or investments are permitted, but not to
exceed 5 percent of assets of a Federal savings association for each
subparagraph:
(A) Community development investments
Investments in real property and obligations secured by
liens on real property located within a geographic area or
neighborhood receiving concentrated development assistance by a
local government under title I of the Housing and Community
Development Act of 1974 [42 U.S.C. 5301 et seq.]. No investment
under this subparagraph in such real property may exceed an
aggregate of 2 percent of the assets of the Federal savings
association.
(B) Nonconforming loans
Loans upon the security of or respecting real property or
interests therein used for primarily residential or farm
purposes that do not comply with the limitations of this
subsection.
(C) Construction loans without security
Loans--
(i) the principal purpose of which is to provide
financing with respect to what is or is expected to become
primarily residential real estate; and
(ii) with respect to which the association--
(I) relies substantially on the borrower's general
credit standing and projected future income for
repayment, without other security; or
(II) relies on other assurances for repayment,
including a guarantee or similar obligation of a third
party.
The aggregate amount of such investments shall not exceed the
greater of the Federal savings association's capital or 5
percent of its assets.
(4) Other loans and investments
The following additional loans and other investments to the
extent authorized below:
(A) Business development credit corporations
A Federal savings association that is in compliance with the
capital standards prescribed under subsection (t) of this
section may invest in, lend to, or to \2\ commit itself to lend
to, any business development credit corporation incorporated in
the State in which the home office of the association is located
in the same manner and to the same extent as savings
associations chartered by such State are authorized. The
aggregate amount of such investments, loans, and commitments of
any such Federal savings association shall not exceed one-half
of 1 percent of the association's total outstanding loans or
$250,000, whichever is less.
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(B) Service corporations
Investments in the capital stock, obligations, or other
securities of any corporation organized under the laws of the
State in which the Federal savings association's home office is
located, if such corporation's entire capital stock is available
for purchase only by savings associations of such State and by
Federal associations having their home offices in such State. No
Federal savings association may make any investment under this
subparagraph if the association's aggregate outstanding
investment under this subparagraph would exceed 3 percent of the
association's assets. Not less than one-half of the investment
permitted under this subparagraph which exceeds 1 percent of the
association's assets shall be used primarily for community,
inner-city, and community development purposes.
(C) Foreign assistance investments
Investments in housing project loans having the benefit of
any guaranty under section 221 of the Foreign Assistance Act of
1961 [22 U.S.C. 2181] or loans having the benefit of any
guarantee under section 224 of such Act [22 U.S.C. 2184],\3\ or
any commitment or agreement with respect to such loans made
pursuant to either of such sections and in the share capital and
capital reserve of the Inter-American Savings and Loan Bank.
This authority extends to the acquisition, holding, and
disposition of loans guaranteed under section 221 or 222 of such
Act [22 U.S.C. 2181 or 2182]. Investments under this
subparagraph shall not exceed 1 percent of the Federal savings
association's assets.
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(D) Small business investment companies
A Federal savings association may invest in stock,
obligations, or other securities of any small business
investment company formed pursuant to section 301(d) \3\ of the
Small Business Investment Act of 1958 [15 U.S.C. 681(d)] for the
purpose of aiding members of a Federal home loan bank. A Federal
savings association may not make any investment under this
subparagraph if its aggregate outstanding investment under this
subparagraph would exceed 1 percent of the assets of such
savings association.
(E) Bankers' banks
A Federal savings association may purchase for its own
account shares of stock of a bankers' bank, described in
Paragraph Seventh of section 24 of this title or in section
27(b) of this title, on the same terms and conditions as a
national bank may purchase such shares.
(F) New Markets Venture Capital companies
A Federal savings association may invest in stock,
obligations, or other securities of any New Markets Venture
Capital company as defined in section 689 of title 15, except
that a Federal savings association may not make any investment
under this subparagraph if its aggregate outstanding investment
under this subparagraph would exceed 5 percent of the capital
and surplus of such savings association.
(5) Transition rule for savings associations acquiring banks
(A) In general
If, under section 5(d)(3) of the Federal Deposit Insurance
Act [12 U.S.C. 1815(d)(3)], a savings association acquires all
or substantially all of the assets of a bank that is a member of
the Bank Insurance Fund, the Director may permit the savings
association to retain any such asset during the 2-year period
beginning on the date of the acquisition.
(B) Extension
The Director may extend the 2-year period described in
subparagraph (A) for not more than 1 year at a time and not more
than 2 years in the aggregate, if the Director determines that
the extension is consistent with the purposes of this chapter.
(6) Definitions
As used in this subsection--
(A) Residential property
The terms ``residential real property'' or ``residential
real estate'' mean leaseholds, homes (including condominiums and
cooperatives, except that in connection with loans on individual
cooperative units, such loans shall be adequately secured as
defined by the Director) and, combinations of homes or dwelling
units and business property, involving only minor or incidental
business use, or property to be improved by construction of such
structures.
(B) Loans
The term ``loans'' includes obligations and extensions or
advances of credit; and any reference to a loan or investment
includes an interest in such a loan or investment.
(d) Regulatory authority
(1) In general
(A) Enforcement
The Director shall have power to enforce this section,
section 8 of the Federal Deposit Insurance Act [12 U.S.C. 1818],
and regulations prescribed hereunder. In enforcing any provision
of this section, regulations prescribed under this section, or
any other law or regulation, or in any other action, suit, or
proceeding to which the Director is a party or in which the
Director is interested, and in the administration of
conservatorships and receiverships, the Director may act in the
Director's own name and through the Director's own attorneys.
Except as otherwise provided, the Director shall be subject to
suit (other than suits on claims for money damages) by any
Federal savings association or director or officer thereof with
respect to any matter under this section or any other applicable
law, or regulation thereunder, in the United States district
court for the judicial district in which the savings
association's home office is located, or in the United States
District Court for the District of Columbia, and the Director
may be served with process in the manner prescribed by the
Federal Rules of Civil Procedure.
(B) Ancillary provisions
(i) In making examinations of savings associations,
examiners appointed by the Director shall have power to make
such examinations of the affairs of all affiliates of such
savings associations as shall be necessary to disclose fully the
relations between such savings associations and their affiliates
and the effect of such relations upon such savings associations.
For purposes of this subsection, the term ``affiliate'' has the
same meaning as in section 2(b) of the Banking Act of 1933 [12
U.S.C. 221a(b)], except that the term ``member bank'' in section
2(b) shall be deemed to refer to a savings association.
(ii) In the course of any examination of any savings
association, upon request by the Director, prompt and complete
access shall be given to all savings association officers,
directors, employees, and agents, and to all relevant books,
records, or documents of any type.
(iii) Upon request made in the course of supervision or
oversight of any savings association, for the purpose of acting
on any application or determining the condition of any savings
association, including whether operations are being conducted
safely, soundly, or in compliance with charters, laws,
regulations, directives, written agreements, or conditions
imposed in writing in connection with the granting of an
application or other request, the Director shall be given prompt
and complete access to all savings association officers,
directors, employees, and agents, and to all relevant books,
records, or documents of any type.
(iv) If prompt and complete access upon request is not given
as required in this subsection, the Director may apply to the
United States district court for the judicial district (or the
United States court in any territory) in which the principal
office of the institution is located, or in which the person
denying such access resides or carries on business, for an order
requiring that such information be promptly provided.
(v) In connection with examinations of savings associations
and affiliates thereof, the Director may--
(I) administer oaths and affirmations and examine and to
\4\ take and preserve testimony under oath as to any matter
in respect of the affairs or ownership of any such savings
association or affiliate, and
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(II) issue subpenas and, for the enforcement thereof,
apply to the United States district court for the judicial
district (or the United States court in any territory) in
which the principal office of the savings association or
affiliate is located, or in which the witness resides or
carries on business.
Such courts shall have jurisdiction and power to order and
require compliance with any such subpena.
(vi) In any proceeding under this section, the Director may
administer oaths and affirmations, take depositions, and issue
subpenas. The Director may prescribe regulations with respect to
any such proceedings. The attendance of witnesses and the
production of documents provided for in this subsection may be
required from any place in any State or in any territory at any
designated place where such proceeding is being conducted.
(vii) Any party to a proceeding under this section may apply
to the United States District Court for the District of
Columbia, or the United States district court for the judicial
district (or the United States court in any territory) in which
such proceeding is being conducted, or where the witness resides
or carries on business, for enforcement of any subpena issued
pursuant to this subsection or section 10(c) of the Federal
Deposit Insurance Act [12 U.S.C. 1820(c)], and such courts shall
have jurisdiction and power to order and require compliance
therewith. Witnesses subpenaed under this section shall be paid
the same fees and mileage that are paid witnesses in the
district courts of the United States. All expenses of the
Director in connection with this section shall be considered as
nonadministrative expenses. Any court having jurisdiction of any
proceeding instituted under this section by a savings
association, or a director or officer thereof, may allow to any
such party reasonable expenses and attorneys' fees. Such
expenses and fees shall be paid by the savings association.
(2) Conservatorships and receiverships
(A) Grounds for appointing conservator or receiver for insured
savings association
The Director of the Office of Thrift Supervision may appoint
a conservator or receiver for any insured savings association if
the Director determines, in the Director's discretion, that 1 or
more of the grounds specified in section 11(c)(5) of the Federal
Deposit Insurance Act [12 U.S.C. 1821(c)(5)] exists.
(B) Power of appointment; judicial review
The Director shall have exclusive power and jurisdiction to
appoint a conservator or receiver for a Federal savings
association. If, in the opinion of the Director, a ground for
the appointment of a conservator or receiver for a savings
association exists, the Director is authorized to appoint ex
parte and without notice a conservator or receiver for the
savings association. In the event of such appointment, the
association may, within 30 days thereafter, bring an action in
the United States district court for the judicial district in
which the home office of such association is located, or in the
United States District Court for the District of Columbia, for
an order requiring the Director to remove such conservator or
receiver, and the court shall upon the merits dismiss such
action or direct the Director to remove such conservator or
receiver. Upon the commencement of such an action, the court
having jurisdiction of any other action or proceeding authorized
under this subsection to which the association is a party shall
stay such action or proceeding during the pendency of the action
for removal of the conservator or receiver.
(C) Replacement
The Director may, without any prior notice, hearing, or
other action, replace a conservator with another conservator or
with a receiver, but such replacement shall not affect any right
which the association may have to obtain judicial review of the
original appointment, except that any removal under this
subparagraph shall be removal of the conservator or receiver in
office at the time of such removal.
(D) Court action
Except as otherwise provided in this subsection, no court
may take any action for or toward the removal of any conservator
or receiver or, except at the request of the Director, to
restrain or affect the exercise of powers or functions of a
conservator or receiver.
(E) Powers
(i) In general
A conservator shall have all the powers of the members,
the stockholders, the directors, and the officers of the
association and shall be authorized to operate the
association in its own name or to conserve its assets in the
manner and to the extent authorized by the Director.
(ii) FDIC or RTC as conservator or receiver
Except as provided in section 21A of the Federal Home
Loan Bank Act [12 U.S.C. 1441a], the Director, at the
Director's discretion, may appoint the Federal Deposit
Insurance Corporation or the Resolution Trust Corporation,
as appropriate, as conservator for a savings association.
The Director shall appoint only the Federal Deposit
Insurance Corporation or the Resolution Trust Corporation,
as appropriate, as receiver for a savings association for
the purpose of liquidation or winding up the affairs of such
savings association. The conservator or receiver so
appointed shall, as such, have power to buy at its own sale.
The Federal Deposit Insurance Corporation, as such
conservator or receiver, shall have all the powers of a
conservator or receiver, as appropriate, granted under the
Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.], and
(when not inconsistent therewith) any other rights, powers,
and privileges possessed by conservators or receivers, as
appropriate, of savings associations under this chapter and
any other provisions of law.
(F) Disclosure requirement for those acting on behalf of
conservator
A conservator shall require that any independent contractor,
consultant, or counsel employed by the conservator in connection
with the conservatorship of a savings association pursuant to
this section shall fully disclose to all parties with which such
contractor, consultant, or counsel is negotiating, any
limitation on the authority of such contractor, consultant, or
counsel to make legally binding representations on behalf of the
conservator.
(3) Regulations
(A) In general
The Director may prescribe regulations for the
reorganization, consolidation, liquidation, and dissolution of
savings associations, for the merger of insured savings
associations with insured savings associations, for savings
associations in conservatorship and receivership, and for the
conduct of conservatorships and receiverships. The Director may,
by regulation or otherwise, provide for the exercise of
functions by members, stockholders, directors, or officers of a
savings association during conservatorship and receivership.
(B) FDIC or RTC as conservator or receiver
In any case where the Federal Deposit Insurance Corporation
or the Resolution Trust Corporation is the conservator or
receiver, any regulations prescribed by the Director shall be
consistent with any regulations prescribed by the Federal
Deposit Insurance Corporation pursuant to the Federal Deposit
Insurance Act [12 U.S.C. 1811 et seq.].
(4) Refusal to comply with demand
Whenever a conservator or receiver appointed by the Director
demands possession of the property, business, and assets of any
savings association, or of any part thereof, the refusal by any
director, officer, employee, or agent of such association to comply
with the demand shall be punishable by a fine of not more than
$5,000 or imprisonment for not more than one year, or both.
(5) ``Savings association'' defined
As used in this subsection, the term ``savings association''
includes any savings association or former savings association that
retains deposits insured by the Corporation, notwithstanding
termination of its status as an institution insured by the
Corporation.
(6) Compliance with monetary transaction recordkeeping and
report requirements
(A) Compliance procedures required
The Director shall prescribe regulations requiring savings
associations to establish and maintain procedures reasonably
designed to assure and monitor the compliance of such
associations with the requirements of subchapter II of chapter
53 of title 31.
(B) Examinations of savings associations to include review of
compliance procedures
(i) In general
Each examination of a savings association by the
Director shall include a review of the procedures required
to be established and maintained under subparagraph (A).
(ii) Exam report requirement
The report of examination shall describe any problem
with the procedures maintained by the association.
(C) Order to comply with requirements
If the Director determines that a savings association--
(i) has failed to establish and maintain the procedures
described in subparagraph (A); or
(ii) has failed to correct any problem with the
procedures maintained by such association which was
previously reported to the association by the Director,
the Director shall issue an order under section 8 of the Federal
Deposit Insurance Act [12 U.S.C. 1818] requiring such
association to cease and desist from its violation of this
paragraph or regulations prescribed under this paragraph.
(7) Regulation and examination of savings association
service companies, subsidiaries, and service
providers
(A) General examination and regulatory authority
A service company or subsidiary that is owned in whole or in
part by a savings association shall be subject to examination
and regulation by the Director to the same extent as that
savings association.
(B) Examination by other banking agencies
The Director may authorize any other Federal banking agency
that supervises any other owner of part of the service company
or subsidiary to perform an examination described in
subparagraph (A).
(C) Applicability of section 8 of the Federal Deposit Insurance
Act
A service company or subsidiary that is owned in whole or in
part by a saving association shall be subject to the provisions
of section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818] as if the service company or subsidiary were an insured
depository institution. In any such case, the Director shall be
deemed to be the appropriate Federal banking agency, pursuant to
section 3(q) of the Federal Deposit Insurance Act [12 U.S.C.
1813(q)].
(D) Service performed by contract or otherwise
Notwithstanding subparagraph (A), if a savings association,
a subsidiary thereof, or any savings and loan affiliate or
entity, as identified by section 8(b)(9) of the Federal Deposit
Insurance Act [12 U.S.C. 1818(b)(9)], that is regularly examined
or subject to examination by the Director, causes to be
performed for itself, by contract or otherwise, any service
authorized under this chapter or, in the case of a State savings
association, any applicable State law, whether on or off its
premises--
(i) such performance shall be subject to regulation and
examination by the Director to the same extent as if such
services were being performed by the savings association on
its own premises; and
(ii) the savings association shall notify the Director
of the existence of the service relationship not later than
30 days after the earlier of--
(I) the date on which the contract is entered into;
or
(II) the date on which the performance of the
service is initiated.
(E) Administration by the Director
The Director may issue such regulations and orders,
including those issued pursuant to section 8 of the Federal
Deposit Insurance Act [12 U.S.C. 1818], as may be necessary to
enable the Director to administer and carry out this paragraph
and to prevent evasion of this paragraph.
(8) Definitions
For purposes of this section--
(A) the term ``service company'' means--
(i) any corporation--
(I) that is organized to perform services authorized
by this chapter or, in the case of a corporation owned
in part by a State savings association, authorized by
applicable State law; and
(II) all of the capital stock of which is owned by 1
or more insured savings associations; and
(ii) any limited liability company--
(I) that is organized to perform services authorized
by this chapter or, in the case of a company, 1 of the
members of which is a State savings association,
authorized by applicable State law; and
(II) all of the members of which are 1 or more
insured savings associations;
(B) the term ``limited liability company'' means any
company, partnership, trust, or similar business entity
organized under the law of a State (as defined in section 3 of
the Federal Deposit Insurance Act [12 U.S.C. 1813]) that
provides that a member or manager of such company is not
personally liable for a debt, obligation, or liability of the
company solely by reason of being, or acting as, a member or
manager of such company; and
(C) the terms ``State savings association'' and
``subsidiary'' have the same meanings as in section 3 of the
Federal Deposit Insurance Act.
(e) Character and responsibility
A charter may be granted only--
(1) to persons of good character and responsibility,
(2) if in the judgment of the Director a necessity exists for
such an institution in the community to be served,
(3) if there is a reasonable probability of its usefulness and
success, and
(4) if the association can be established without undue injury
to properly conducted existing local thrift and home financing
institutions.
(f) Federal home loan bank membership
After the end of the 6-month period beginning on November 12, 1999,
a Federal savings association may become a member of the Federal Home
Loan Bank System, and shall qualify for such membership in the manner
provided by the Federal Home Loan Bank Act [12 U.S.C. 1421 et seq.].
(g) Preferred shares
[Repealed.]
(h) Discriminatory State and local taxation prohibited
No State, county, municipal, or local taxing authority may impose
any tax on Federal savings associations or their franchise, capital,
reserves, surplus, loans, or income greater than that imposed by such
authority on other similar local mutual or cooperative thrift and home
financing institutions.
(i) Conversions
(1) In general
Any savings association which is, or is eligible to become, a
member of a Federal home loan bank may convert into a Federal
savings association (and in so doing may change directly from the
mutual form to the stock form, or from the stock form to the mutual
form). Such conversion shall be subject to such regulations as the
Director shall prescribe. Thereafter such Federal savings
association shall be entitled to all the benefits of this section
and shall be subject to examination and regulation to the same
extent as other associations incorporated pursuant to this chapter.
(2) Authority of Director
(A) No savings association may convert from the mutual to the
stock form, or from the stock form to the mutual form, except in
accordance with the regulations of the Director.
(B) Any aggrieved person may obtain review of a final action of
the Director which approves or disapproves a plan of conversion
pursuant to this subsection only by complying with the provisions of
section 1467a(j) of this title within the time limit and in the
manner therein prescribed, which provisions shall apply in all
respects as if such final action were an order the review of which
is therein provided for, except that such time limit shall commence
upon publication of notice of such final action in the Federal
Register or upon the giving of such general notice of such final
action as is required by or approved under regulations of the
Director, whichever is later.
(C) Any Federal savings association may change its designation
from a Federal savings association to a Federal savings bank, or the
reverse.
(3) Conversion to State association
(A) Any Federal savings association may convert itself into a
savings association or savings bank organized pursuant to the laws
of the State in which the principal office of such Federal savings
association is located if--
(i) the State permits the conversion of any savings
association or savings bank of such State into a Federal savings
association;
(ii) such conversion of a Federal savings association into
such a State savings association is determined--
(I) upon the vote in favor of such conversion cast in
person or by proxy at a special meeting of members or
stockholders called to consider such action, specified by
the law of the State in which the home office of the Federal
savings association is located, as required by such law for
a State-chartered institution to convert itself into a
Federal savings association, but in no event upon a vote of
less than 51 percent of all the votes cast at such meeting,
and
(II) upon compliance with other requirements
reciprocally equivalent to the requirements of such State
law for the conversion of a State-chartered institution into
a Federal savings association;
(iii) notice of the meeting to vote on conversion shall be
given as herein provided and no other notice thereof shall be
necessary; the notice shall expressly state that such meeting is
called to vote thereon, as well as the time and place thereof;
and such notice shall be mailed, postage prepaid, at least 30
and not more than 60 days prior to the date of the meeting, to
the Director and to each member or stockholder of record of the
Federal savings association at the member's or stockholder's
last address as shown on the books of the Federal savings
association;
(iv) when a mutual savings association is dissolved after
conversion, the members or shareholders of the savings
association will share on a mutual basis in the assets of the
association in exact proportion to their relative share or
account credits;
(v) when a stock savings association is dissolved after
conversion, the stockholders will share on an equitable basis in
the assets of the association; and
(vi) such conversion shall be effective upon the date that
all the provisions of this chapter shall have been fully
complied with and upon the issuance of a new charter by the
State wherein the savings association is located.
(B)(i) The act of conversion constitutes consent by the
institution to be bound by all the requirements that the Director
may impose under this chapter.
(ii) The savings association shall upon conversion and
thereafter be authorized to issue securities in any form currently
approved at the time of issue by the Director for issuance by
similar savings associations in such State.
(iii) If the insurance of accounts is terminated in connection
with such conversion, the notice and other action shall be taken as
provided by law and regulations for the termination of insurance of
accounts.
(4) Savings bank activities
(A) To the extent authorized by the Director, but subject to
section 18(m)(3) of the Federal Deposit Insurance Act [12 U.S.C.
1828(m)(3)]--
(i) any Federal savings bank chartered as such prior to
October 15, 1982, may continue to make any investment or engage
in any activity not otherwise authorized under this section, to
the degree it was permitted to do so as a Federal savings bank
prior to October 15, 1982; and
(ii) any Federal savings bank in existence on August 9,
1989, and formerly organized as a mutual savings bank under
State law may continue to make any investment or engage in any
activity not otherwise authorized under this section, to the
degree it was authorized to do so as a mutual savings bank under
State law.
(B) The authority conferred by this paragraph may be utilized by
any Federal savings association that acquires, by merger or
consolidation, a Federal savings bank enjoying grandfather rights
hereunder.
(5) Conversion to national or State bank
(A) In general
Any Federal savings association chartered and in operation
before November 12, 1999, with branches in operation before
November 12, 1999, in 1 or more States, may convert, at its
option, with the approval of the Comptroller of the Currency or
the appropriate State bank supervisor, into 1 or more national
or State banks, each of which may encompass 1 or more of the
branches of the Federal savings association in operation before
November 12, 1999, in 1 or more States, but only if each
resulting national or State bank will meet all financial,
management, and capital requirements applicable to the resulting
national or State bank.
(B) Definitions
For purposes of this paragraph, the terms ``State bank'' and
``State bank supervisor'' have the meanings given those terms in
section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813].
(j) Subscription for shares
[Repealed.]
(k) Depository of public money
When designated for that purpose by the Secretary of the Treasury, a
savings association the deposits of which are insured by the Corporation
shall be a depository of public money and may be employed as fiscal
agent of the Government under such regulations as may be prescribed by
the Secretary and shall perform all such reasonable duties as fiscal
agent of the Government as may be required of it. A savings association
the deposits of which are insured by the Corporation may act as agent
for any other instrumentality of the United States when designated for
that purpose by such instrumentality, including services in connection
with the collection of taxes and other obligations owed the United
States, and the Secretary of the Treasury may deposit public money in
any such savings association, and shall prescribe such regulations as
may be necessary to carry out the purposes of this subsection.
(l) Retirement accounts
A Federal savings association is authorized to act as trustee of any
trust created or organized in the United States and forming part of a
stock bonus, pension, or profit-sharing plan which qualifies or
qualified for specific tax treatment under section 401(d) of the
Internal Revenue Code of 1986 [26 U.S.C. 401(d)] and to act as trustee
or custodian of an individual retirement account within the meaning of
section 408 of such Code [26 U.S.C. 408] if the funds of such trust or
account are invested only in savings accounts or deposits in such
Federal savings association or in obligations or securities issued by
such Federal savings association. All funds held in such fiduciary
capacity by any Federal savings association may be commingled for
appropriate purposes of investment, but individual records shall be kept
by the fiduciary for each participant and shall show in proper detail
all transactions engaged in under this paragraph.
(m) Branching
(1) In general
(A) No savings association incorporated under the laws of the
District of Columbia or organized in the District or doing business
in the District shall establish any branch or move its principal
office or any branch without the Director's prior written approval.
(B) No savings association shall establish any branch in the
District of Columbia or move its principal office or any branch in
the District without the Director's prior written approval.
(2) ``Branch'' defined
For purposes of this subsection the term ``branch'' means any
office, place of business, or facility, other than the principal
office as defined by the Director, of a savings association at which
accounts are opened or payments are received or withdrawals are
made, or any other office, place of business, or facility of a
savings association defined by the Director as a branch within the
meaning of such sentence.
(n) Trusts
(1) Permits
The Director may grant by special permit to a Federal savings
association applying therefor the right to act as trustee, executor,
administrator, guardian, or in any other fiduciary capacity in which
State banks, trust companies, or other corporations which compete
with Federal savings associations are permitted to act under the
laws of the State in which the Federal savings association is
located. Subject to the regulations of the Director, service
corporations may invest in State or federally chartered corporations
which are located in the State in which the home office of the
Federal savings association is located and which are engaged in
trust activities.
(2) Segregation of assets
A Federal savings association exercising any or all of the
powers enumerated in this section shall segregate all assets held in
any fiduciary capacity from the general assets of the association
and shall keep a separate set of books and records showing in proper
detail all transactions engaged in under this subsection. The State
banking authority involved may have access to reports of examination
made by the Director insofar as such reports relate to the trust
department of such association but nothing in this subsection shall
be construed as authorizing such State banking authority to examine
the books, records, and assets of such associations.
(3) Prohibitions
No Federal savings association shall receive in its trust
department deposits of current funds subject to check or the deposit
of checks, drafts, bills of exchange, or other items for collection
or exchange purposes. Funds deposited or held in trust by the
association awaiting investment shall be carried in a separate
account and shall not be used by the association in the conduct of
its business unless it shall first set aside in the trust department
United States bonds or other securities approved by the Director.
(4) Separate lien
In the event of the failure of a Federal savings association,
the owners of the funds held in trust for investment shall have a
lien on the bonds or other securities so set apart in addition to
their claim against the estate of the association.
(5) Deposits
Whenever the laws of a State require corporations acting in a
fiduciary capacity to deposit securities with the State authorities
for the protection of private or court trusts, Federal savings
associations so acting shall be required to make similar deposits.
Securities so deposited shall be held for the protection of private
or court trusts, as provided by the State law. Federal savings
associations in such cases shall not be required to execute the bond
usually required of individuals if State corporations under similar
circumstances are exempt from this requirement. Federal savings
associations shall have power to execute such bond when so required
by the laws of the State involved.
(6) Oaths and affidavits
In any case in which the laws of a State require that a
corporation acting as trustee, executor, administrator, or in any
capacity specified in this section, shall take an oath or make an
affidavit, the president, vice president, cashier, or trust officer
of such association may take the necessary oath or execute the
necessary affidavit.
(7) Certain loans prohibited
It shall be unlawful for any Federal savings association to lend
any officer, director, or employee any funds held in trust under the
powers conferred by this section. Any officer, director, or employee
making such loan, or to whom such loan is made, may be fined not
more than $50,000 or twice the amount of that person's gain from the
loan, whichever is greater, or may be imprisoned not more than 5
years, or may be both fined and imprisoned, in the discretion of the
court.
(8) Factors to be considered
In reviewing applications for permission to exercise the powers
enumerated in this section, the Director may consider--
(A) the amount of capital of the applying Federal savings
association,
(B) whether or not such capital is sufficient under the
circumstances of the case,
(C) the needs of the community to be served, and
(D) any other facts and circumstances that seem to it
proper.
The Director may grant or refuse the application accordingly, except
that no permit shall be issued to any association having capital
less than the capital required by State law of State banks, trust
companies, and corporations exercising such powers.
(9) Surrender of charter
(A) Any Federal savings association may surrender its right to
exercise the powers granted under this subsection, and have returned
to it any securities which it may have deposited with the State
authorities, by filing with the Director a certified copy of a
resolution of its board of directors indicating its intention to
surrender its right.
(B) Upon receipt of such resolution, the Director, if satisfied
that such Federal savings association has been relieved in
accordance with State law of all duties as trustee, executor,
administrator, guardian or other fiduciary, may in the Director's
discretion, issue to such association a certificate that such
association is no longer authorized to exercise the powers granted
by this subsection.
(C) Upon the issuance of such a certificate by the Director,
such Federal savings association (i) shall no longer be subject to
the provisions of this section or the regulations of the Director
made pursuant thereto, (ii) shall be entitled to have returned to it
any securities which it may have deposited with State authorities,
and (iii) shall not exercise thereafter any of the powers granted by
this section without first applying for and obtaining a new permit
to exercise such powers pursuant to the provisions of this section.
(D) The Director may prescribe regulations necessary to enforce
compliance with the provisions of this subsection.
(10) Revocation
(A) In addition to the authority conferred by other law, if, in
the opinion of the Director, a Federal savings association is
unlawfully or unsoundly exercising, or has unlawfully or unsoundly
exercised, or has failed for a period of 5 consecutive years to
exercise, the powers granted by this subsection or otherwise fails
or has failed to comply with the requirements of this subsection,
the Director may issue and serve upon the association a notice of
intent to revoke the authority of the association to exercise the
powers granted by this subsection. The notice shall contain a
statement of the facts constituting the alleged unlawful or unsound
exercise of powers, or failure to exercise powers, or failure to
comply, and shall fix a time and place at which a hearing will be
held to determine whether an order revoking authority to exercise
such powers should issue against the association.
(B) Such hearing shall be conducted in accordance with the
provisions of subsection (d)(1)(B) of this section, and subject to
judicial review as therein provided, and shall be fixed for a date
not earlier than 30 days and not later than 60 days after service of
such notice unless the Director sets an earlier or later date at the
request of any Federal savings association so served.
(C) Unless the Federal savings association so served shall
appear at the hearing by a duly authorized representative, it shall
be deemed to have consented to the issuance of the revocation order.
In the event of such consent, or if upon the record made at any such
hearing, the Director shall find that any allegation specified in
the notice of charges has been established, the Director may issue
and serve upon the association an order prohibiting it from
accepting any new or additional trust accounts and revoking
authority to exercise any and all powers granted by this subsection,
except that such order shall permit the association to continue to
service all previously accepted trust accounts pending their
expeditious divestiture or termination.
(D) A revocation order shall become effective not earlier than
the expiration of 30 days after service of such order upon the
association so served (except in the case of a revocation order
issued upon consent, which shall become effective at the time
specified therein), and shall remain effective and enforceable,
except to such extent as it is stayed, modified, terminated, or set
aside by action of the Director or a reviewing court.
(o) Conversion of State savings banks
(1) Subject to the provisions of this subsection and under
regulations of the Director, the Director may authorize the conversion
of a State-chartered savings bank that is a Bank Insurance Fund member
into a Federal savings bank, if such conversion is not in contravention
of State law, and provide for the organization, incorporation,
operation, examination, and regulation of such institution.
(2)(A) Any Federal savings bank chartered pursuant to this
subsection shall continue to be a Bank Insurance Fund member until such
time as it changes its status to a Savings Association Insurance Fund
member.
(B) The Director shall notify the Corporation of any application
under this chapter for conversion to a Federal charter by an institution
insured by the Corporation, shall consult with the Corporation before
disposing of the application, and shall notify the Corporation of the
Director's determination with respect to such application.
(C) Notwithstanding any other provision of law, if the Corporation
determines that conversion into a Federal stock savings bank or the
chartering of a Federal stock savings bank is necessary to prevent the
default of a savings bank it insures or to reopen a savings bank in
default that it insured, or if the Corporation determines, with the
concurrence of the Director, that severe financial conditions exist that
threaten the stability of a savings bank insured by the Corporation and
that such a conversion or charter is likely to improve the financial
condition of such savings bank, the Corporation shall provide the
Director with a certificate of such determination, the reasons therefor
in conformance with the requirements of this chapter, and the bank shall
be converted or chartered by the Director, pursuant to the regulations
thereof, from the time the Corporation issues the certificate.
(D) A bank may be converted under subparagraph (C) only if the board
of trustees of the bank--
(i) has specified in writing that the bank is in danger of
closing or is closed, or that severe financial conditions exist that
threaten the stability of the bank and a conversion is likely to
improve the financial condition of the bank; and
(ii) has requested in writing that the Corporation use the
authority of subparagraph (C).
(E)(i) Before making a determination under subparagraph (D), the
Corporation shall consult the State bank supervisor of the State in
which the bank in danger of closing is chartered. The State bank
supervisor shall be given a reasonable opportunity, and in no event less
than 48 hours, to object to the use of the provisions of subparagraph
(D).
(ii) If the State supervisor objects during such period, the
Corporation may use the authority of subparagraph (D) only by an
affirmative vote of three-fourths of the Board of Directors. The Board
of Directors shall provide the State supervisor, as soon as practicable,
with a written certification of its determination.
(3) A Federal savings bank chartered under this subsection shall
have the same authority with respect to investments, operations, and
activities, and shall be subject to the same restrictions, including
those applicable to branching and discrimination, as would apply to it
if it were chartered as a Federal savings bank under any other provision
of this chapter.
(p) Conversions
(1) Notwithstanding any other provision of law, and consistent with
the purposes of this chapter, the Director may authorize (or in the case
of a Federal savings association, require) the conversion of any mutual
savings association or Federal mutual savings bank that is insured by
the Corporation into a Federal stock savings association or Federal
stock savings bank, or charter a Federal stock savings association or
Federal stock savings bank to acquire the assets of, or merge with such
a mutual institution under the regulations of the Director.
(2) Authorizations under this subsection may be made only--
(A) if the Director has determined that severe financial
conditions exist which threaten the stability of an association and
that such authorization is likely to improve the financial condition
of the association,
(B) when the Corporation has contracted to provide assistance to
such association under section 13 of the Federal Deposit Insurance
Act [12 U.S.C. 1823], or
(C) to assist an institution in receivership.
(3) A Federal savings bank chartered under this subsection shall
have the same authority with respect to investments, operations and
activities, and shall be subject to the same restrictions, including
those applicable to branching and discrimination, as would apply to it
if it were chartered as a Federal savings bank under any other provision
of this chapter, and may engage in any investment, activity, or
operation that the institution it acquired was engaged in if that
institution was a Federal savings bank, or would have been authorized to
engage in had that institution converted to a Federal charter.
(q) Tying arrangements
(1) A savings association may not in any manner extend credit,
lease, or sell property of any kind, or furnish any service, or fix or
vary the consideration for any of the foregoing, on the condition or
requirement--
(A) that the customer shall obtain additional credit, property,
or service from such savings association, or from any service
corporation or affiliate of such association, other than a loan,
discount, deposit, or trust service;
(B) that the customer provide additional credit, property, or
service to such association, or to any service corporation or
affiliate of such association, other than those related to and
usually provided in connection with a similar loan, discount,
deposit, or trust service; and
(C) that the customer shall not obtain some other credit,
property, or service from a competitor of such association, or from
a competitor of any service corporation or affiliate of such
association, other than a condition or requirement that such
association shall reasonably impose in connection with credit
transactions to assure the soundness of credit.
(2)(A) Any person may sue for and have injunctive relief, in any
court of the United States having jurisdiction over the parties, against
threatened loss or damage by reason of a violation of paragraph (1),
under the same conditions and principles as injunctive relief against
threatened conduct that will cause loss or damage is granted by courts
of equity and under the rules governing such proceedings.
(B) Upon the execution of proper bond against damages for an
injunction improvidently granted and a showing that the danger of
irreparable loss or damage is immediate, a preliminary injunction may
issue.
(3) Any person injured by a violation of paragraph (1) may bring an
action in any district court of the United States in which the defendant
resides or is found or has an agent, without regard to the amount in
controversy, or in any other court of competent jurisdiction, and shall
be entitled to recover three times the amount of the damages sustained,
and the cost of suit, including a reasonable attorney's fee. Any such
action shall be brought within 4 years from the date of the occurrence
of the violation.
(4) Nothing contained in this subsection affects in any manner the
right of the United States or any other party to bring an action under
any other law of the United States or of any State, including any right
which may exist in addition to specific statutory authority, challenging
the legality of any act or practice which may be proscribed by this
subsection. No regulation or order issued by the Director under this
subsection shall in any manner constitute a defense to such action.
(5) For purposes of this subsection, the term ``loan'' includes
obligations and extensions or advances of credit.
(6) Exceptions.--The Director may, by regulation or order, permit
such exceptions to the prohibitions of this subsection as the Director
considers will not be contrary to the purposes of this subsection and
which conform to exceptions granted by the Board of Governors of the
Federal Reserve System pursuant to section 1972 of this title.
(r) Out-of-State branches
(1) No Federal savings association may establish, retain, or operate
a branch outside the State in which the Federal savings association has
its home office, unless the association qualifies as a domestic building
and loan association under section 7701(a)(19) of the Internal Revenue
Code of 1986 [26 U.S.C. 7701(a)(19)] or meets the asset composition test
imposed by subparagraph (C) of that section on institutions seeking so
to qualify, or qualifies as a qualified thrift lender, as determined
under section 1467a(m) of this title. No out-of-State branch so
established shall be retained or operated unless the total assets of the
Federal savings association attributable to all branches of the Federal
savings association in that State would qualify the branches as a whole,
were they otherwise eligible, for treatment as a domestic building and
loan association under section 7701(a)(19) or as a qualified thrift
lender, as determined under section 1467a(m) of this title, as
applicable.
(2) The limitations of paragraph (1) shall not apply if--
(A) the branch results from a transaction authorized under
section 13(k) of the Federal Deposit Insurance Act [12 U.S.C.
1823(k)];
(B) the branch was authorized for the Federal savings
association prior to October 15, 1982;
(C) the law of the State where the branch is located, or is to
be located, would permit establishment of the branch if the
association was a savings association or savings bank chartered by
the State in which its home office is located; or
(D) the branch was operated lawfully as a branch under State law
prior to the association's conversion to a Federal charter.
(3) The Director, for good cause shown, may allow Federal savings
associations up to 2 years to comply with the requirements of this
subsection.
(s) Minimum capital requirements
(1) In general
Consistent with the purposes of section 908 of the International
Lending Supervision Act of 1983 [12 U.S.C. 3907] and the capital
requirements established pursuant to such section by the appropriate
Federal banking agencies (as defined in section 903(1) of such Act
[12 U.S.C. 3902(1)]), the Director shall require all savings
associations to achieve and maintain adequate capital by--
(A) establishing minimum levels of capital for savings
associations; and
(B) using such other methods as the Director determines to
be appropriate.
(2) Minimum capital levels may be determined by Director
case-by-case
The Director may, consistent with subsection (t) of this
section, establish the minimum level of capital for a savings
association at such amount or at such ratio of capital-to-assets as
the Director determines to be necessary or appropriate for such
association in light of the particular circumstances of the
association.
(3) Unsafe or unsound practice
In the Director's discretion, the Director may treat the failure
of any savings association to maintain capital at or above the
minimum level required by the Director under this subsection or
subsection (t) of this section as an unsafe or unsound practice.
(4) Directive to increase capital
(A) Plan may be required
In addition to any other action authorized by law, including
paragraph (3), the Director may issue a directive requiring any
savings association which fails to maintain capital at or above
the minimum level required by the Director to submit and adhere
to a plan for increasing capital which is acceptable to the
Director.
(B) Enforcement of plan
Any directive issued and plan approved under subparagraph
(A) shall be enforceable under section 8 of the Federal Deposit
Insurance Act [12 U.S.C. 1818] to the same extent and in the
same manner as an outstanding order which was issued under
section 8 of the Federal Deposit Insurance Act and has become
final.
(5) Plan taken into account in other proceedings
The Director may--
(A) consider a savings association's progress in adhering to
any plan required under paragraph (4) whenever such association
or any affiliate of such association (including any company
which controls such association) seeks the Director's approval
for any proposal which would have the effect of diverting
earnings, diminishing capital, or otherwise impeding such
association's progress in meeting the minimum level of capital
required by the Director; and
(B) disapprove any proposal referred to in subparagraph (A)
if the Director determines that the proposal would adversely
affect the ability of the association to comply with such plan.
(t) Capital standards
(1) In general
(A) Requirement for standards to be prescribed
The Director shall, by regulation, prescribe and maintain
uniformly applicable capital standards for savings associations.
Those standards shall include--
(i) a leverage limit;
(ii) a tangible capital requirement; and
(iii) a risk-based capital requirement.
(B) Compliance
A savings association is not in compliance with capital
standards for purposes of this subsection unless it complies
with all capital standards prescribed under this paragraph.
(C) Stringency
The standards prescribed under this paragraph shall be no
less stringent than the capital standards applicable to national
banks.
(D) Deadline for regulations
The Director shall promulgate final regulations under this
paragraph not later than 90 days after August 9, 1989, and those
regulations shall become effective not later than 120 days after
August 9, 1989.
(2) Content of standards
(A) Leverage limit
The leverage limit prescribed under paragraph (1) shall
require a savings association to maintain core capital in an
amount not less than 3 percent of the savings association's
total assets.
(B) Tangible capital requirement
The tangible capital requirement prescribed under paragraph
(1) shall require a savings association to maintain tangible
capital in an amount not less than 1.5 percent of the savings
association's total assets.
(C) Risk-based capital requirement
Notwithstanding paragraph (1)(C), the risk-based capital
requirement prescribed under paragraph (1) may deviate from the
risk-based capital standards applicable to national banks to
reflect interest-rate risk or other risks, but such deviations
shall not, in the aggregate, result in materially lower levels
of capital being required of savings associations under the
risk-based capital requirement than would be required under the
risk-based capital standards applicable to national banks.
(3) Transition rule
(A) Certain qualifying supervisory goodwill included in
calculating core capital
Notwithstanding paragraph (9)(A), an eligible savings
association may include qualifying supervisory goodwill in
calculating core capital. The amount of qualifying supervisory
goodwill that may be included may not exceed the applicable
percentage of total assets set forth in the following table:
For the followingThe applicable
period: percentage is:
Prior to January 1, 1992................................ 1.500 percent
January 1, 1992-December 31, 1992....................... 1.000 percent
January 1, 1993-December 31, 1993....................... 0.750 percent
January 1, 1994-December 31, 1994....................... 0.375 percent
Thereafter................................................ 0
percent
(B) Eligible savings associations
For purposes of subparagraph (A), a savings association is
an eligible savings association so long as the Director
determines that--
(i) the savings association's management is competent;
(ii) the savings association is in substantial
compliance with all applicable statutes, regulations,
orders, and supervisory agreements and directives; and
(iii) the savings association's management has not
engaged in insider dealing, speculative practices, or any
other activities that have jeopardized the association's
safety and soundness or contributed to impairing the
association's capital.
(4) Special rules for purchased mortgage servicing rights
(A) In general
Notwithstanding paragraphs (1)(C) and (9), the standards
prescribed under paragraph (1) may permit a savings association
to include in calculating capital for the purpose of the
leverage limit and risk-based capital requirement prescribed
under paragraph (1), on terms no less stringent than under both
the capital standards applicable to State nonmember banks and
(except as to the amount that may be included in calculating
capital) the capital standards applicable to national banks, 90
percent of the fair market value of readily marketable purchased
mortgage servicing rights.
(B) Tangible capital requirement
Notwithstanding paragraphs (1)(C) and (9)(C), the standards
prescribed under paragraph (1) may permit a savings association
to include in calculating capital for the purpose of the
tangible capital requirement prescribed under paragraph (1), on
terms no less stringent than under both the capital standards
applicable to State nonmember banks and (except as to the amount
that may be included in calculating capital) the capital
standards applicable to national banks, 90 percent of the fair
market value of readily marketable purchased mortgage servicing
rights.
(C) Percentage limitation prescribed by FDIC
Notwithstanding paragraph (1)(C) and subparagraphs (A) and
(B) of this paragraph--
(i) for the purpose of subparagraph (A), the maximum
amount of purchased mortgage servicing rights that may be
included in calculating capital under the leverage limit and
the risk-based capital requirement prescribed under
paragraph (1) may not exceed the amount that could be
included if the savings association were an insured State
nonmember bank; and
(ii) for the purpose of subparagraph (B), the
Corporation shall prescribe a maximum percentage of the
tangible capital requirement that savings associations may
satisfy by including purchased mortgage servicing rights in
calculating such capital.
(D) Quarterly valuation
The fair market value of purchased mortgage servicing rights
shall be determined not less often than quarterly.
(5) Separate capitalization required for certain
subsidiaries
(A) In general
In determining compliance with capital standards prescribed
under paragraph (1), all of a savings association's investments
in and extensions of credit to any subsidiary engaged in
activities not permissible for a national bank shall be deducted
from the savings association's capital.
(B) Exception for agency activities
Subparagraph (A) shall not apply with respect to a
subsidiary engaged, solely as agent for its customers, in
activities not permissible for a national bank unless the
Corporation, in its sole discretion, determines that, in the
interests of safety and soundness, this subparagraph should
cease to apply to that subsidiary.
(C) Other exceptions
Subparagraph (A) shall not apply with respect to any of the
following:
(i) Mortgage banking subsidiaries
A savings association's investments in and extensions of
credit to a subsidiary engaged solely in mortgage-banking
activities.
(ii) Subsidiary insured depository institutions
A savings association's investments in and extensions of
credit to a subsidiary--
(I) that is itself an insured depository institution
or a company the sole investment of which is an insured
depository institution, and
(II) that was acquired by the parent insured
depository institution prior to May 1, 1989.
(iii) Certain Federal savings banks
Any Federal savings association existing as a Federal
savings association on August 9, 1989--
(I) that was chartered prior to October 15, 1982, as
a savings bank or a cooperative bank under State law; or
(II) that acquired its principal assets from an
association that was chartered prior to October 15,
1982, as a savings bank or a cooperative bank under
State law.
(D) Transition rule
(i) Inclusion in capital
Notwithstanding subparagraph (A), if a savings
association's subsidiary was, as of April 12, 1989, engaged
in activities not permissible for a national bank, the
savings association may include in calculating capital the
applicable percentage (set forth in clause (ii)) of the
lesser of--
(I) the savings association's investments in and
extensions of credit to the subsidiary on April 12,
1989; or
(II) the savings association's investments in and
extensions of credit to the subsidiary on the date as of
which the savings association's capital is being
determined.
(ii) Applicable percentage
For purposes of clause (i), the applicable percentage is
as follows:
For the followingThe applicable
period: percentage is:
Prior to July 1, 1990................................. 100 percent
July 1, 1990-June 30, 1991............................. 90
percent
July 1, 1991-October 31, 1992.......................... 75
percent
November 1, 1992-June 30, 1993......................... 60
percent
July 1, 1993-June 30, 1994............................. 40
percent
Thereafter............................................. 0
percent
(iii) Agency discretion to prescribe greater
percentage
Subject to clauses (iv), (v), and (vi), the Director may
prescribe by order, with respect to a particular qualified
savings association, an applicable percentage greater than
that provided in clause (ii) if the Director determines, in
the Director's sole discretion, that the use of the greater
percentage, under the circumstances--
(I) would not constitute an unsafe or unsound
practice;
(II) would not increase the risk to the affected
deposit insurance fund; and
(III) would not be likely to result in the
association's being in an unsafe or unsound condition.
(iv) Substantial compliance with approved capital
plan
In the case of a savings association which is subject to
a plan submitted under paragraph (7)(D) of this subsection
or an order issued under this subsection, a directive issued
or plan approved under subsection (s) of this section, or a
capital restoration plan approved or order issued under
section 38 or 39 of the Federal Deposit Insurance Act [12
U.S.C. 1831o, 1831p-1], an order issued under clause (iii)
with respect to the association shall be effective only so
long as the association is in substantial compliance with
such plan, directive, or order.
(v) Limitation on investments taken into account
In prescribing the amount by which an applicable
percentage under clause (iii) may exceed the applicable
percentage under clause (ii) with respect to a particular
qualified savings association, the Director may take into
account only the sum of--
(I) the association's investments in, and extensions
of credit to, the subsidiary that were made on or before
April 12, 1989; and
(II) the association's investments in, and
extensions of credit to, the subsidiary that were made
after April 12, 1989, and were necessary to complete
projects initiated before April 12, 1989.
(vi) Limit
The applicable percentage limit allowed by the Director
in an order under clause (iii) shall not exceed the
following limits:
For the following period:The limit is:
Prior to July 1, 1994.................................. 75 percent
July 1, 1994 through June 30, 1995..................... 60 percent
July 1, 1995 through June 30, 1996..................... 40 percent
After June 30, 1996..................................... 0
percent
(vii) Critically undercapitalized institution
In the case of a savings association that becomes
critically undercapitalized (as defined in section 38 of the
Federal Deposit Insurance Act [12 U.S.C. 1831o]) as
determined under this subparagraph without applying clause
(iii), clauses (iii) through (v) shall be applied by
substituting ``Corporation'' for ``Director'' each place
such term appears.
(viii) ``Qualified savings association'' defined
For purposes of clause (iii), the term ``qualified
savings association'' means an eligible savings association
(as defined in paragraph (3)(B)) which is subject to this
paragraph solely because of the real estate investments or
other real estate activities of the association's
subsidiary, and--
(I) is adequately capitalized (as defined in section
38 of the Federal Deposit Insurance Act [12 U.S.C.
1831o]); or
(II) is in compliance with an approved capital
restoration plan meeting the requirements of section 38
of the Federal Deposit Insurance Act [12 U.S.C. 1831o],
and is not critically undercapitalized (as defined in
such section).
(ix) FDIC's discretion to prescribe lesser
percentage
The Corporation may prescribe by order, with respect to
a particular savings association, an applicable percentage
less than that provided in clause (ii) or prescribed under
clause (iii) if the Corporation determines, in its sole
discretion, that the use of a greater percentage would,
under the circumstances, constitute an unsafe or unsound
practice or be likely to result in the association's being
in an unsafe or unsound condition.
(E) Consolidation of subsidiaries not separately capitalized
In determining compliance with capital standards prescribed
under paragraph (1), the assets and liabilities of each of a
savings association's subsidiaries (other than any subsidiary
described in subparagraph (C)(ii)) shall be consolidated with
the savings association's assets and liabilities, unless all of
the savings association's investments in and extensions of
credit to the subsidiary are deducted from the savings
association's capital pursuant to subparagraph (A).
(6) Consequences of failing to comply with capital standards
(A) Prior to January 1, 1991
Prior to January 1, 1991, the Director--
(i) may restrict the asset growth of any savings
association not in compliance with capital standards; and
(ii) shall, beginning 60 days following the promulgation
of final regulations under this subsection, require any
savings association not in compliance with capital standards
to submit a plan under subsection (s)(4)(A) of this section
that--
(I) addresses the savings association's need for
increased capital;
(II) describes the manner in which the savings
association will increase its capital so as to achieve
compliance with capital standards;
(III) specifies the types and levels of activities
in which the savings association will engage;
(IV) requires any increase in assets to be
accompanied by an increase in tangible capital not less
in percentage amount than the leverage limit then
applicable;
(V) requires any increase in assets to be
accompanied by an increase in capital not less in
percentage amount than required under the risk-based
capital standard then applicable; and
(VI) is acceptable to the Director.
(B) On or after January 1, 1991
On or after January 1, 1991, the Director--
(i) shall prohibit any asset growth by any savings
association not in compliance with capital standards, except
as provided in subparagraph (C); and
(ii) shall require any savings association not in
compliance with capital standards to comply with a capital
directive issued by the Director (which may include such
restrictions, including restrictions on the payment of
dividends and on compensation, as the Director determines to
be appropriate).
(C) Limited growth exception
The Director may permit any savings association that is
subject to subparagraph (B) to increase its assets in an amount
not exceeding the amount of net interest credited to the savings
association's deposit liabilities if--
(i) the savings association obtains the Director's prior
approval;
(ii) any increase in assets is accompanied by an
increase in tangible capital in an amount not less than 6
percent of the increase in assets (or, in the Director's
discretion if the leverage limit then applicable is less
than 6 percent, in an amount equal to the increase in assets
multiplied by the percentage amount of the leverage limit);
(iii) any increase in assets is accompanied by an
increase in capital not less in percentage amount than
required under the risk-based capital standard then
applicable;
(iv) any increase in assets is invested in low-risk
assets, such as first mortgage loans secured by 1- to 4-
family residences and fully secured consumer loans; and
(v) the savings association's ratio of core capital to
total assets is not less than the ratio existing on January
1, 1991.
(D) Additional restrictions in case of excessive risks or rates
The Director may restrict the asset growth of any savings
association that the Director determines is taking excessive
risks or paying excessive rates for deposits.
(E) Failure to comply with plan, regulation, or order
The Director shall treat as an unsafe and unsound practice
any material failure by a savings association to comply with any
plan, regulation, or order under this paragraph.
(F) Effect on other regulatory authority
This paragraph does not limit any authority of the Director
under other provisions of law.
(7) Exemption from certain sanctions
(A) Application for exemption
Any savings association not in compliance with the capital
standards prescribed under paragraph (1) may apply to the
Director for an exemption from any applicable sanction or
penalty for noncompliance which the Director may impose under
this chapter.
(B) Effect of grant of exemption
If the Director approves any savings association's
application under subparagraph (A), the only sanction or penalty
to be imposed by the Director under this chapter for the savings
association's failure to comply with the capital standards
prescribed under paragraph (1) is the growth limitation
contained in paragraph (6)(B) or paragraph (6)(C), whichever is
applicable.
(C) Standards for approval or disapproval
(i) Approval
The Director may approve an application for an exemption
if the Director determines that--
(I) such exemption would pose no significant risk to
the affected deposit insurance fund;
(II) the savings association's management is
competent;
(III) the savings association is in substantial
compliance with all applicable statutes, regulations,
orders, and supervisory agreements and directives; and
(IV) the savings association's management has not
engaged in insider dealing, speculative practices, or
any other activities that have jeopardized the
association's safety and soundness or contributed to
impairing the association's capital.
(ii) Denial or revocation of approval
The Director shall deny any application submitted under
clause (i) and revoke any prior approval granted with
respect to any such application if the Director determines
that the association's failure to meet any capital standards
prescribed under paragraph (1) is accompanied by--
(I) a pattern of consistent losses;
(II) substantial dissipation of assets;
(III) evidence of imprudent management or business
behavior;
(IV) a material violation of any Federal law, any
law of any State to which such association is subject,
or any applicable regulation; or
(V) any other unsafe or unsound condition or
activity, other than the failure to meet such capital
standards.
(D) Submission of plan required
Any application submitted under subparagraph (A) shall be
accompanied by a plan which--
(i) meets the requirements of paragraph (6)(A)(ii); and
(ii) is acceptable to the Director.
(E) Failure to comply with plan
The Director shall treat as an unsafe and unsound practice
any material failure by any savings association which has been
granted an exemption under this paragraph to comply with the
provisions of any plan submitted by such association under
subparagraph (D).
(F) Exemption not available with respect to unsafe or unsound
practices
This paragraph does not limit any authority of the Director
under any other provision of law, including section 8 of the
Federal Deposit Insurance Act [12 U.S.C. 1818], to take any
appropriate action with respect to any unsafe or unsound
practice or condition of any savings association, other than the
failure of such savings association to comply with the capital
standards prescribed under paragraph (1).
(8) Temporary authority to make exceptions for eligible
savings associations
(A) In general
Notwithstanding paragraph (1)(C), the Director may, by
order, make exceptions to the capital standards prescribed under
paragraph (1) for eligible savings associations. No exception
under this paragraph shall be effective after January 1, 1991.
(B) Standards for approval or disapproval
In determining whether to grant an exception under
subparagraph (A), the Director shall apply the same standards as
apply to determinations under paragraph (7)(C).
(9) Definitions
For purposes of this subsection--
(A) Core capital
Unless the Director prescribes a more stringent definition,
the term ``core capital'' means core capital as defined by the
Comptroller of the Currency for national banks, less any
unidentifiable intangible assets, plus any purchased mortgage
servicing rights excluded from the Comptroller's definition of
capital but included in calculating the core capital of savings
associations pursuant to paragraph (4).
(B) Qualifying supervisory goodwill
The term ``qualifying supervisory goodwill'' means
supervisory goodwill existing on April 12, 1989, amortized on a
straightline basis over the shorter of--
(i) 20 years, or
(ii) the remaining period for amortization in effect on
April 12, 1989.
(C) Tangible capital
The term ``tangible capital'' means core capital minus any
intangible assets (as intangible assets are defined by the
Comptroller of the Currency for national banks).
(D) Total assets
The term ``total assets'' means total assets (as total
assets are defined by the Comptroller of the Currency for
national banks) adjusted in the same manner as total assets
would be adjusted in determining compliance with the leverage
limit applicable to national banks if the savings association
were a national bank.
(10) Use of Comptroller's definitions
(A) In general
The standards prescribed under paragraph (1) shall include
all relevant substantive definitions established by the
Comptroller of the Currency for national banks.
(B) Special rule
If the Comptroller of the Currency has not made effective
regulations defining core capital or establishing a risk-based
capital standard, the Director shall use the definition and
standard contained in the Comptroller's most recently published
final regulations.
(u) Limits on loans to one borrower
(1) In general
Section 5200 of the Revised Statutes [12 U.S.C. 84] shall apply
to savings associations in the same manner and to the same extent as
it applies to national banks.
(2) Special rules
(A) Notwithstanding paragraph (1), a savings association may
make loans to one borrower under one of the following clauses:
(i) for any purpose, not to exceed $500,000; or
(ii) to develop domestic residential housing units, not to
exceed the lesser of $30,000,000 or 30 percent of the savings
association's unimpaired capital and unimpaired surplus, if--
(I) the purchase price of each single family dwelling
unit the development of which is financed under this clause
does not exceed $500,000;
(II) the savings association is and continues to be in
compliance with the fully phased-in capital standards
prescribed under subsection (t) of this section;
(III) the Director, by order, permits the savings
association to avail itself of the higher limit provided by
this clause;
(IV) loans made under this clause to all borrowers do
not, in aggregate, exceed 150 percent of the savings
association's unimpaired capital and unimpaired surplus; and
(V) such loans comply with all applicable loan-to-value
requirements.
(B) A savings association's loans to one borrower to finance the
sale of real property acquired in satisfaction of debts previously
contracted in good faith shall not exceed 50 percent of the savings
association's unimpaired capital and unimpaired surplus.
(3) Authority to impose more stringent restrictions
The Director may impose more stringent restrictions on a savings
association's loans to one borrower if the Director determines that
such restrictions are necessary to protect the safety and soundness
of the savings association.
(v) Reports of condition
(1) In general
Each association shall make reports of conditions to the
Director which shall be in a form prescribed by the Director and
shall contain--
(A) information sufficient to allow the identification of
potential interest rate and credit risk;
(B) a description of any assistance being received by the
association, including the type and monetary value of such
assistance;
(C) the identity of all subsidiaries and affiliates of the
association;
(D) the identity, value, type, and sector of investment of
all equity investments of the associations and subsidiaries; and
(E) other information that the Director may prescribe.
(2) Public disclosure
(A) Reports required under paragraph (1) and all information
contained therein shall be available to the public upon request,
unless the Director determines--
(i) that a particular item or classification of information
should not be made public in order to protect the safety or
soundness of the institution concerned or institutions
concerned, the Savings Association Insurance Fund; or
(ii) that public disclosure would not otherwise be in the
public interest.
(B) Any determination made by the Director under subparagraph
(A) not to permit the public disclosure of information shall be made
in writing, and if the Director restricts any item of information
for savings institutions generally, the Director shall disclose the
reason in detail in the Federal Register.
(C) The Director's determinations under subparagraph (A) shall
not be subject to judicial review.
(3) Access by certain parties
(A) Notwithstanding paragraph (2), the persons described in
subparagraph (B) shall not be denied access to any information
contained in a report of condition, subject to reasonable
requirements of confidentiality. Those requirements shall not
prevent such information from being transmitted to the Comptroller
General of the United States for analysis.
(B) The following persons are described in this subparagraph for
purposes of subparagraph (A):
(i) the Chairman and ranking minority member of the
Committee on Banking, Housing, and Urban Affairs of the Senate
and their designees; and
(ii) the Chairman and ranking minority member of the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives and their designees.
(4) First tier penalties
Any savings association which--
(A) maintains procedures reasonably adapted to avoid any
inadvertent and unintentional error and, as a result of such an
error--
(i) fails to submit or publish any report or information
required by the Director under paragraph (1) or (2), within
the period of time specified by the Director; or
(ii) submits or publishes any false or misleading report
or information; or
(B) inadvertently transmits or publishes any report which is
minimally late,
shall be subject to a penalty of not more than $2,000 for each day
during which such failure continues or such false or misleading
information is not corrected. The savings association shall have the
burden of proving by a preponderence \5\ of the evidence that an
error was inadvertent and unintentional and that a report was
inadvertently transmitted or published late.
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\5\ So in original. Probably should be ``preponderance''.
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(5) Second tier penalties
Any savings association which--
(A) fails to submit or publish any report or information
required by the Director under paragraph (1) or (2), within the
period of time specified by the Director; or
(B) submits or publishes any false or misleading report or
information,
in a manner not described in paragraph (4) shall be subject to a
penalty of not more than $20,000 for each day during which such
failure continues or such false or misleading information is not
corrected.
(6) Third tier penalties
If any savings association knowingly or with reckless disregard
for the accuracy of any information or report described in paragraph
(5) submits or publishes any false or misleading report or
information, the Director may assess a penalty of not more than
$1,000,000 or 1 percent of total assets, whichever is less, per day
for each day during which such failure continues or such false or
misleading information is not corrected.
(7) Assessment
Any penalty imposed under paragraph (4), (5), or (6) shall be
assessed and collected by the Director in the manner provided in
subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the
Federal Deposit Insurance Act [12 U.S.C. 1818(i)(2)(E), (F), (G),
(I)] (for penalties imposed under such section), and any such
assessment (including the determination of the amount of the
penalty) shall be subject to the provisions of such subsection.
(8) Hearing
Any savings association against which any penalty is assessed
under this subsection shall be afforded a hearing if such savings
association submits a request for such hearing within 20 days after
the issuance of the notice of assessment. Section 8(h) of the
Federal Deposit Insurance Act [12 U.S.C. 1818(h)] shall apply to any
proceeding under this subsection.
(w) Forfeiture of franchise for money laundering or cash transaction
reporting offenses
(1) In general
(A) Conviction of title 18 offense
(I) Duty to notify
If a Federal savings association has been convicted of
any criminal offense under section 1956 or 1957 of title 18,
the Attorney General shall provide to the Director a written
notification of the conviction and shall include a certified
copy of the order of conviction from the court rendering the
decision.
(II) Notice of termination; pretermination hearing
After receiving written notification from the Attorney
General of such a conviction, the Director shall issue to
the savings association a notice of the Director's intention
to terminate all rights, privileges, and franchises of the
savings association and schedule a pretermination hearing.
(B) Conviction of title 31 offenses
If a Federal savings association is convicted of any
criminal offense under section 5322 or 5324 of title 31 after
receiving written notification from the Attorney General, the
Director may issue to the savings association a notice of the
Director's intention to terminate all rights, privileges, and
franchises of the savings association and schedule a
pretermination hearing.
(C) Judicial review
Subsection (d)(1)(B)(vii) of this section shall apply to any
proceeding under this subsection.
(2) Factors to be considered
In determining whether a franchise shall be forfeited under
paragraph (1), the Director shall take into account the following
factors:
(A) The extent to which directors or senior executive
officers of the savings association knew of, were \6\ involved
in, the commission of the money laundering offense of which the
association was found guilty.
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\6\ So in original. Probably should be ``or were''.
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(B) The extent to which the offense occurred despite the
existence of policies and procedures within the savings
association which were designed to prevent the occurrence of any
such offense.
(C) The extent to which the savings association has fully
cooperated with law enforcement authorities with respect to the
investigation of the money laundering offense of which the
association was found guilty.
(D) The extent to which the savings association has
implemented additional internal controls (since the commission
of the offense of which the savings association was found
guilty) to prevent the occurrence of any other money laundering
offense.
(E) The extent to which the interest of the local community
in having adequate deposit and credit services available would
be threatened by the forfeiture of the franchise.
(3) Successor liability
This subsection shall not apply to a successor to the interests
of, or a person who acquires, a savings association that violated a
provision of law described in paragraph (1), if the successor
succeeds to the interests of the violator, or the acquisition is
made, in good faith and not for purposes of evading this subsection
or regulations prescribed under this subsection.
(4) ``Senior executive officer'' defined
The term ``senior executive officer'' has the same meaning as in
regulations prescribed under section 32(f) of the Federal Deposit
Insurance Act [12 U.S.C. 1831i(f)].
(June 13, 1933, ch. 64, Sec. 5, 48 Stat. 132; Apr. 27, 1934, ch. 168,
Secs. 5, 6, 48 Stat. 645, 646; May 28, 1935, ch. 150, Sec. 18, 49 Stat.
297; Aug. 10, 1939, ch. 666, title IX, Sec. 909, 53 Stat. 1402; Aug. 6,
1947, ch. 503, 61 Stat. 786; July 3, 1948, ch. 825, Sec. 1, 62 Stat.
1239; Oct. 20, 1951, ch. 521, title III, Sec. 313(d), 65 Stat. 490; July
14, 1952, ch. 723, Sec. 12, 66 Stat. 604; Aug. 2, 1954, ch. 649, title
II, Sec. 204(b), title V, Sec. 503, 68 Stat. 622, 634; Aug. 11, 1955,
ch. 783, title I, Sec. 110, 69 Stat. 641; Aug. 7, 1956, ch. 1029, title
VI, Sec. 604, 70 Stat. 1114; Pub. L. 85-857, Sec. 13(f), Sept. 2, 1958,
72 Stat. 1264; Pub. L. 86-372, title VIII, Sec. 805, Sept. 23, 1959, 73
Stat. 687; Pub. L. 86-507, Sec. 1(11), June 11, 1960, 74 Stat. 200; Pub.
L. 87-70, title IX, Sec. 901, June 30, 1961, 75 Stat. 189; Pub. L. 87-
779, Sec. 1, Oct. 9, 1962, 76 Stat. 778; Pub. L. 87-834, Sec. 6(e)(1),
Oct. 16, 1962, 76 Stat. 984; Pub. L. 88-560, title IX, Secs. 901(a),
902-905, 907, 908, 910, Sept. 2, 1964, 78 Stat. 804-806; Pub. L. 89-117,
title II, Sec. 201(b)(3), title XI, Sec. 1110(a)-(c), Aug. 10, 1965, 79
Stat. 465, 507; Pub. L. 89-695, title I, Sec. 101(a), Oct. 16, 1966, 80
Stat. 1028; Pub. L. 90-448, title III, Sec. 304(b), title IV,
Sec. 416(c), title VIII, Secs. 804(e), 807(m), title XVII, Sec. 1716,
Aug. 1, 1968, 82 Stat. 508, 518, 543, 545, 608; Pub. L. 90-505, Sec. 5,
Sept. 21, 1968, 82 Stat. 858; Pub. L. 90-575, title I, Sec. 118(b), Oct.
16, 1968, 82 Stat. 1026; Pub. L. 91-152, title IV, Sec. 416(b), Dec. 24,
1969, 83 Stat. 401; Pub. L. 91-351, title VII, Secs. 706, 708, 709, July
24, 1970, 84 Stat. 462, 463; Pub. L. 91-609, title VII, Sec. 727(d),
title IX, Sec. 907(b), (c), Dec. 31, 1970, 84 Stat. 1803, 1811; Pub. L.
92-318, title I, Sec. 133(c)(3), June 23, 1972, 86 Stat. 270; Pub. L.
93-100, Sec. 5(b), Aug. 16, 1973, 87 Stat. 343; Pub. L. 93-383, title
VII, Secs. 702-706, title VIII, Secs. 802(i)(2), 805(c)(4), Aug. 22,
1974, 88 Stat. 715, 716, 725, 727; Pub. L. 93-449, Sec. 4(d), Oct. 18,
1974, 88 Stat. 1367; Pub. L. 93-495, title I, Sec. 101(e), Oct. 28,
1974, 88 Stat. 1502; Pub. L. 94-60, July 25, 1975, 89 Stat. 301; Pub. L.
94-375, Sec. 22, Aug. 3, 1976, 90 Stat. 1078; Pub. L. 95-128, title IV,
Secs. 401-405, Oct. 12, 1977, 91 Stat. 1136, 1137; Pub. L. 95-147,
Sec. 2(a), Oct. 28, 1977, 91 Stat. 1227; Pub. L. 95-630, title I,
Secs. 107(a)(3), (c)(3), (d)(3), (e)(3), 111(c), title II, Sec. 208(b),
title XII, Secs. 1202, 1204, title XVII, Sec. 1701, Nov. 10, 1978, 92
Stat. 3651, 3655, 3659, 3662, 3668, 3675, 3710, 3711, 3714; Pub. L. 96-
153, title III, Secs. 325, 326, Dec. 21, 1979, 93 Stat. 1121; Pub. L.
96-161, title I, Sec. 102, Dec. 28, 1979, 93 Stat. 1233; Pub. L. 96-221,
title III, Secs. 304, 307, title IV, Secs. 401-404, 407(a), 408, Mar.
31, 1980, 94 Stat. 146, 147, 151, 155, 156, 158-160; Pub. L. 97-320,
title I, Secs. 112, 114(b), (c), 121, 141(a)(2), (5), title II,
Sec. 202(b), title III, Secs. 311-313, 321-325, 328-331, 334, 351, title
IV, Secs. 424(a), (d)(8), (e), 427(a), Oct. 15, 1982, 96 Stat. 1471,
1475, 1479, 1489, 1492, 1496, 1497, 1499-1504, 1507, 1522-1524; Pub. L.
97-457, Secs. 2, 12, 14(a)(1), (b), Jan. 12, 1983, 96 Stat. 2507, 2508;
Pub. L. 98-440, title I, Sec. 105(a), Oct. 3, 1984, 98 Stat. 1691; Pub.
L. 98-620, title IV, Sec. 402(9), Nov. 8, 1984, 98 Stat. 3357; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99-570, title I,
Sec. 1359(b), Oct. 27, 1986, 100 Stat. 3207-27; Pub. L. 100-86, title
IV, Secs. 406(a), 413(a), title V, Sec. 509(a), Aug. 10, 1987, 101 Stat.
614, 621, 635; Pub. L. 101-73, title III, Sec. 301, Aug. 9, 1989, 103
Stat. 282; Pub. L. 102-242, title I, Secs. 131(d), 133(d), title IV,
Sec. 441, title V, Sec. 501(c), Dec. 19, 1991, 105 Stat. 2267, 2271,
2381, 2391; Pub. L. 102-310, July 1, 1992, 106 Stat. 276; Pub. L. 102-
550, title IX, Sec. 953, title XV, Sec. 1502(b), title XVI,
Secs. 1603(d)(8), 1606(f)(1)-(3), Oct. 28, 1992, 106 Stat. 3893, 4046,
4080, 4088; Pub. L. 103-325, title II, Sec. 206(a), title III,
Sec. 322(b), title IV, Sec. 411(c)(2)(D), Sept. 23, 1994, 108 Stat.
2199, 2227, 2253; Pub. L. 104-208, div. A, title II, Secs. 2216(b),
2303(a)-(d), (f), 2704(d)(12)(A), Sept. 30, 1996, 110 Stat. 3009-413,
3009-424, 3009-490; Pub. L. 105-164, Sec. 3(a)(1), Mar. 20, 1998, 112
Stat. 33; Pub. L. 106-102, title VI, Sec. 603, title VII, Sec. 739, Nov.
12, 1999, 113 Stat. 1450, 1480; Pub. L. 106-554, Sec. 1(a)(8)
[Sec. 1(f)], Dec. 21, 2000, 114 Stat. 2763, 2763A-665; Pub. L. 106-569,
title XII, Sec. 1201(b)(1), Dec. 27, 2000, 114 Stat. 3032.)
References in Text
The National Housing Act, referred to in subsec. (c)(1)(I), (O)(i),
(P), is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is
classified principally to chapter 13 (Sec. 1701 et seq.) of this title.
Title X of the National Housing Act is title X of act June 27, 1934, ch.
847, as added by act Aug. 10, 1965, Pub. L. 89-117, title II,
Sec. 201(a), 79 Stat. 461, which was classified generally to subchapter
IX-A (Sec. 1749aa et seq.) of chapter 13 of this title, and was repealed
by Pub. L. 101-235, title I, Sec. 133(a), Dec. 15, 1989, 103 Stat. 2027.
For complete classification of this Act to the Code, see section 1701 of
this title and Tables.
The Servicemen's Readjustment Act of 1944, referred to in subsec.
(c)(1)(I), is act June 22, 1944, ch. 268, 58 Stat. 284, as amended,
which was classified generally to chapter 11C (Secs. 693 to 697g) of
former Title 38, Pensions, Bonuses, and Veterans' Relief, and which was
repealed by section 14(87) of Pub. L. 85-857, Sept. 2, 1958, 72 Stat.
1273, the first section of which enacted Title 38, Veterans' Benefits.
For distribution of sections 693 to 697g of former Title 38 to Title 38,
Veterans' Benefits, see Table preceding section 101 of Title 38,
Veterans' Benefits.
The Housing and Urban Development Act of 1968, referred to in
subsec. (c)(1)(N), (O)(ii), is Pub. L. 90-448, Aug. 1, 1968, 82 Stat.
476, as amended. Title IX of the Act is classified principally to
chapter 49 (Sec. 3931 et seq.) of Title 42, The Public Health and
Welfare. Title IV of the Housing and Urban Development Act, which was
classified to chapter 48 (Sec. 3901 et seq.) of Title 42, was repealed,
with certain exceptions which were omitted from the Code, by Pub. L. 98-
181, title IV, Sec. 474(e), Nov. 30, 1983, 97 Stat. 1239. For complete
classification of this Act to the Code, see Short Title of 1968
Amendment note set out under section 1701 of this title and Tables.
The National Urban Policy and New Community Development Act of 1970,
referred to in subsec. (c)(1)(O)(ii), is title VII of Pub. L. 91-609,
Dec. 31, 1970, 84 Stat. 1791, as amended. Part B of the Act is
classified generally to part B (Sec. 4511 et seq.) of chapter 59 of
Title 42. For complete classification of this Act to the Code, see Short
Title note set out under section 4501 of Title 42 and Tables.
Section 802 of the Housing and Community Development Act of 1974,
referred to in subsec. (c)(1)(O)(ii), enacted section 1440 of Title 42,
and amended sections 371 and 1464 of this title.
The Investment Company Act of 1940, referred to in subsec.
(c)(1)(Q)(i), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as
amended, which is classified generally to subchapter I (Sec. 80a-1 et
seq.) of chapter 2D of Title 15, Commerce and Trade. For complete
classification of this Act to the Code, see section 80a-51 of Title 15
and Tables.
The Housing and Community Development Act of 1974, referred to in
subsec. (c)(3)(A), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as
amended. Title I of the Act is classified principally to chapter 69
(Sec. 5301 et seq.) of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see Short Title note
set out under section 5301 of Title 42 and Tables.
Section 224 of such Act [22 U.S.C. 2184], referred to in subsec.
(c)(4)(C), means section 224 of the Foreign Assistance Act of 1961,
which related to housing projects in Latin American countries and was
eliminated in the general amendment made by section 105 of the Foreign
Assistance Act of 1969 (Pub. L. 91-175). See section 222 of such Act [22
U.S.C. 2182].
Section 301(d) of the Small Business Investment Act of 1958,
referred to in subsec. (c)(4)(D), which was classified to section 681(d)
of Title 15, Commerce and Trade, was repealed by Pub. L. 104-208, div.
D, title II, Sec. 208(b)(3)(A), Sept. 30, 1996, 110 Stat. 3009-742.
The Federal Rules of Civil Procedure, referred to in subsec.
(d)(1)(A), are set out in the Appendix to Title 28, Judiciary and
Judicial Procedure.
The Federal Deposit Insurance Act, referred to in subsec.
(d)(2)(E)(ii), (3)(B), is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat.
873, as amended, which is classified generally to chapter 16 (Sec. 1811
et seq.) of this title. For complete classification of this Act to the
Code, see Short Title note set out under section 1811 of this title and
Tables.
The Federal Home Loan Bank Act, referred to in subsec. (f), is act
July 22, 1932, ch. 522, 47 Stat. 725, as amended, which is classified
generally to chapter 11 (Sec. 1421 et seq.) of this title. For complete
classification of this Act to the Code, see section 1421 of this title
and Tables.
Amendments
2000--Subsec. (c)(1)(M). Pub. L. 106-569 amended heading and text
generally. Prior to amendment, text read as follows: ``Investments
which, when made, are of a type that may be used to satisfy any
liquidity requirement imposed by the Director pursuant to section 1465
of this title.''
Subsec. (c)(4)(F). Pub. L. 106-554 added subpar. (F).
1999--Subsec. (f). Pub. L. 106-102, Sec. 603, amended heading and
text of subsec. (f) generally. Prior to amendment, text read as follows:
``Each Federal savings association, upon receiving its charter, shall
become automatically a member of the Federal home loan bank of the
district in which it is located, or if convenience requires and the
Director approves, shall become a member of a Federal home loan bank of
an adjoining district. Such associations shall qualify for such
membership in the manner provided in the Federal Home Loan Bank Act with
respect to other members.''
Subsec. (i)(5). Pub. L. 106-102, Sec. 739, added par. (5).
1998--Subsec. (d)(7), (8). Pub. L. 105-164 added pars. (7) and (8).
1996--Subsec. (b)(4), (5). Pub. L. 104-208, Sec. 2303(a),
redesignated par. (5) as (4) and struck out heading and text of former
par. (4). Text read as follows: ``Subject to regulations of the
Director, a Federal savings association may issue credit cards, extend
credit in connection therewith, and otherwise engage in or participate
in credit card operations.''
Subsec. (c)(1)(T), (U). Pub. L. 104-208, Sec. 2303(b), added
subpars. (T) and (U).
Subsec. (c)(2)(A). Pub. L. 104-208, Sec. 2303(c), amended heading
and text of subpar. (A) generally. Prior to amendment, text read as
follows: ``Secured or unsecured loans for commercial, corporate,
business, or agricultural purposes. The aggregate amount of loans under
this paragraph shall not exceed 10 percent of the assets of the Federal
savings association.''
Subsec. (c)(3). Pub. L. 104-208, Sec. 2303(d), redesignated subpars.
(B) to (D) as (A) to (C), respectively, and struck out heading and text
of former subpar. (A). Text read as follows: ``Loans made for the
payment of educational expenses.''
Subsec. (c)(5)(A). Pub. L. 104-208, Sec. 2704(d)(12)(A)(i), which
directed the amendment of subpar. (A) by striking ``that is a member of
the Bank Insurance Fund'', was not executed. See Effective Date of 1996
Amendment note below.
Subsec. (c)(6). Pub. L. 104-208, Sec. 2704(d)(12)(A)(ii), which
directed the amendment of par. (6) by substituting ``For purposes of
this subsection, the following definitions shall apply:'' for ``As used
in this subsection--'', was not executed. See Effective Date of 1996
Amendment note below.
Subsec. (o)(1). Pub. L. 104-208, Sec. 2704(d)(12)(A)(iii), which
directed the amendment of par. (1) by striking ``that is a Bank
Insurance Fund member'', was not executed. See Effective Date of 1996
Amendment note below.
Subsec. (o)(2)(A). Pub. L. 104-208, Sec. 2704(d)(12)(A)(iv), which
directed the amendment of subpar. (A) by substituting ``insured by the
Deposit Insurance Fund'' for ``a Bank Insurance Fund member until such
time as it changes its status to a Savings Association Insurance Fund
member'', was not executed. See Effective Date of 1996 Amendment note
below.
Subsec. (q)(6). Pub. L. 104-208, Sec. 2216(b), added par. (6).
Subsec. (r)(1). Pub. L. 104-208, Sec. 2303(f)(1), in first sentence,
substituted ``subparagraph (C) of that section'' for ``subparagraph (c)
of that section'' and inserted before period at end ``, or qualifies as
a qualified thrift lender, as determined under section 1467a(m) of this
title'' and, in second sentence, inserted before period at end ``or as a
qualified thrift lender, as determined under section 1467a(m) of this
title, as applicable''.
Subsec. (r)(2)(C). Pub. L. 104-208, Sec. 2303(f)(2), added subpar.
(C) and struck out former subpar. (C) which read as follows: ``the law
of the State where the branch would be located would permit the branch
to be established if the branch were a Federal savings association
chartered by the State in which its home office is located; or''.
Subsec. (t)(5)(D)(iii)(II), (7)(C)(i)(I). Pub. L. 104-208,
Sec. 2704(d)(12)(A)(v), (vi), which directed the substitution of
``Deposit Insurance Fund'' for ``affected deposit insurance fund'', was
not executed. See Effective Date of 1996 Amendment note below.
Subsec. (v)(2)(A)(i). Pub. L. 104-208, Sec. 2704(d)(12)(A)(vii),
which directed the amendment of cl. (i) by substituting ``or the Deposit
Insurance Fund'' for ``, the Savings Association Insurance Fund'', was
not executed. See Effective Date of 1996 Amendment note below.
1994--Subsec. (c)(1)(S). Pub. L. 103-325, Sec. 206(a), added subpar.
(S).
Subsec. (c)(4)(E). Pub. L. 103-325, Sec. 322(b), added subpar. (E).
Subsec. (w)(1)(B). Pub. L. 103-325, Sec. 411(c)(2)(D), substituted
``section 5322 or 5324 of title 31'' for ``section 5322 of title 31''.
1992--Subsec. (c)(2)(B)(iii). Pub. L. 102-550, Sec. 1606(f)(1),
amended cl. (iii) generally. Prior to amendment, cl. (iii) read as
follows: ``If the Director permits any increased authority pursuant to
clause (ii), the Director shall closely monitor the Federal savings
association's condition and lending activities to ensure that the
savings association carries out all authority under this paragraph in a
safe and sound manner and complies with this subparagraph and all
relevant laws and regulations''.
Subsec. (c)(2)(C). Pub. L. 102-550, Sec. 1606(f)(2), struck out
comma after ``including''.
Subsec. (c)(2)(D). Pub. L. 102-550, Sec. 1606(f)(3), inserted before
period at end of last sentence ``, except that amounts in excess of 30
percent of the assets may be invested only in loans which are made by
the association directly to the original obligor and with respect to
which the association does not pay any finder, referral, or other fee,
directly or indirectly, to any third party''.
Subsec. (d)(2)(A). Pub. L. 102-550, Sec. 1603(d)(8), inserted period
at end.
Subsec. (t)(5)(D)(ii). Pub. L. 102-310 substituted ``October 31,
1992'' for ``June 30, 1992'' and ``November 1, 1992'' for ``July 1,
1992''.
Subsec. (t)(5)(D)(iii) to (ix). Pub. L. 102-550, Sec. 953, added
cls. (iii) to (viii), redesignated former cl. (iii) as (ix), and
inserted ``or prescribed under clause (iii)'' after ``clause (ii)''.
Subsec. (w). Pub. L. 102-550, Sec. 1502(b), added subsec. (w).
1991--Subsec. (c)(2)(B). Pub. L. 102-242, Sec. 441(b), which
directed amendment of subpar. (B) by inserting before period at end the
following: ``, provided however, that no amount in excess of 30 percent
of the assets may be invested in loans made directly by the association
to the original obligor, and the association does not pay finder,
referral, or other fees, directly or indirectly, to a third party.'',
could not be executed because subpar. (B) did not contain a period at
end thereof. The new language probably was intended to be inserted
before period at end of subpar. (D).
Subsec. (c)(2)(D). Pub. L. 102-242, Sec. 441(a), substituted ``35
percent'' for ``30 percent''.
Subsec. (c)(5), (6). Pub. L. 102-242, Sec. 501(c), added par. (5)
and redesignated former par. (5) as (6).
Subsec. (d)(2). Pub. L. 102-242, Sec. 133(d), added subpar. (A),
redesignated subpars. (E) to (I) as (B) to (F), respectively, and struck
out former subpars. (A) to (D) which related to grounds for appointment
of conservator or receiver for Federal savings associations, additional
grounds for appointment of such conservator or receiver, grounds for
appointment of conservator or receiver for State savings associations,
and approval of State officials, respectively.
Subsec. (t)(7)(A), (B). Pub. L. 102-242, Sec. 131(d), inserted
``under this chapter'' before period at end of subpar. (A) and after
``imposed by the Director'' in subpar. (B).
1989--Pub. L. 101-73 amended section generally, substituting
subsecs. (a) to (f), (h), (i), and (k) to (v) relating to Federal
savings associations for former subsecs. (a) to (s) relating to thrift
institutions, and repealing subsecs. (g) and (j).
1987--Pub. L. 100-86, Sec. 509(a), repealed Pub. L. 97-320,
Sec. 141. See 1982 Amendment note below.
Subsec. (d)(6)(E). Pub. L. 100-86, Sec. 413(a), added subpar. (E).
Subsec. (s). Pub. L. 100-86, Sec. 406(a), added subsec. (s).
1986--Subsec. (d)(8)(B)(i). Pub. L. 99-570, Sec. 1359(b)(2),
inserted reference to par. (16) of this subsection.
Subsec. (d)(16). Pub. L. 99-570, Sec. 1359(b)(1), added par. (16).
Subsecs. (l), (r)(1). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954''.
1984--Subsec. (c)(1)(S). Pub. L. 98-440 added subpar. (S).
Subsec. (d)(6)(A). Pub. L. 98-620 struck out provision that such
proceedings had to be given precedence over other cases pending in such
courts, and had to be in every way expedited.
1983--Subsec. (b)(1)(B). Pub. L. 97-457, Sec. 12, inserted ``may
accept a demand account from itself and'' after ``An association''.
Subsec. (c)(3)(D). Pub. L. 97-457, Sec. 14(a)(1), added subpar. (D).
Subsec. (o)(1). Pub. L. 97-457, Sec. 2, inserted ``examination,''
after ``operation,''.
Subsec. (r)(2)(B). Pub. L. 97-457, Sec. 14(b), substituted ``prior
to the enactment of the Garn-St Germain Depository Institutions Act''
for ``prior to the enactment of the Depository Institutions
Amendments''. Because the phrase had been translated as ``prior to
October 15, 1982'' the amendment resulted in no change in text.
1982--Subsec. (a). Pub. L. 97-320, Sec. 311, substituted provisions
that in order to provide thrift institutions for the deposit or
investment of funds and for the extension of credit for homes and other
goods and services, the Board is authorized, under such rules and
regulations as it may prescribe, to provide for the organization,
incorporation, examination, operation, and regulation of associations to
be known as Federal savings and loan associations, or Federal savings
banks, and to issue charters therefor, giving primary consideration to
the best practices of thrift institutions in the United States and that
the lending and investment authorities are conferred by this section to
provide such institutions the flexibility necessary to maintain their
role of providing credit for housing for provisions which authorized the
Board to provide for organization, etc. of Federal Savings and Loan
Associations or Federal Mutual Savings Banks, and detailed the
requirements as to associations which were State mutual savings banks or
other associations which were formerly organized as savings banks under
State law.
Subsec. (b)(1)(A). Pub. L. 97-320, Sec. 312, designated existing
first sentence as subpar. (A), struck out from parenthetical phrase
``and all of which shall have the same priority upon liquidation'' after
``savings accounts'', authorized the raising of capital in the form of
demand accounts of persons or organizations that have a business,
corporate, commercial, or agricultural relationship with the
association, and substituted ``evidence of accounts'' for ``evidence of
savings accounts''.
Subsec. (b)(1)(B). Pub. L. 97-320, Sec. 312, designated existing
second sentence as subpar. (B); authorized an association to accept
demand accounts from a commercial, corporate, business, or agricultural
entity for the sole purpose of effectuating payments thereto by a
nonbusiness customer; barred an association from payment of interest on
a demand account; inserted requirement that ``All savings accounts and
demand accounts shall have the same priority upon liquidation'',
incorporating such requirement for savings accounts from existing first
sentence; and substituted ``Holder of accounts'' for ``Holder of savings
accounts''.
Subsec. (b)(1)(C). Pub. L. 97-320, Sec. 312, designated existing
third sentence as subpar. (C) and substituted ``an association's
charter'' for ``the association's charter'' and ``fourteen'' days for
``thirty'' days in two places.
Subsec. (b)(1)(D). Pub. L. 97-320, Sec. 312, designated existing
fourth sentence as subpar. (D), substituted ``accounts'' for ``savings
accounts'', and inserted in parenthetical phrase ``, where
applicable,''.
Subsec. (b)(1)(E). Pub. L. 97-320, Sec. 312, designated existing
fifth sentence as subpar. (E) and substituted ``Accounts may be
subject'' for ``Savings accounts shall not be subject'' and
``transferable or other order or authorization to the association, as
the Board may by regulation provide'' for ``transferable order or
authorization to the association, but the Board may by regulation
provide for withdrawal or transfer of savings accounts upon
nontransferable order or authorization''.
Subsec. (b)(1)(F). Pub. L. 97-320, Sec. 312, designated existing
sixth sentence as subpar. (F) and substituted ``Notwithstanding any
limitation of this section, associations may establish remote service
units'' for ``This section does not prohibit the establishment of remote
service units by associations'' and ``crediting savings or demand
accounts'' for ``crediting existing savings accounts''.
Subsec. (b)(2). Pub. L. 97-320, Sec. 312, substituted ``, including
capital stock,'' for ``(except capital stock)''.
Subsec. (b)(5)(B). Pub. L. 97-320, Sec. 202(b)(1), added subpar.
(B). Provisions of former subpar. (B) were moved to subpar. (C) and
amended.
Subsec. (b)(5)(C). Pub. L. 97-320, Sec. 202(b)(2), added subpar. (C)
which consisted of the provisions of former subpar. (B) but with the
addition of a reference to net worth certificates issued pursuant to
section 1729(f) of this title.
Subsec. (c)(1)(A). Pub. L. 97-320, Sec. 321, substituted
``transaction accounts'' for ``negotiable order-of-withdrawal
accounts''.
Subsec. (c)(1)(B). Pub. L. 97-320, Sec. 322, substituted ``Loans on
the security of liens upon residential or nonresidential real property,
except that the loans and investments of an association on
nonresidential real property may not exceed 40 per centum of its
assets'' for ``Loans on the security of liens upon residential real
property in an amount which, when added to the amount unpaid upon prior
mortgages, liens or encumbrances, if any, upon such real estate does not
exceed the appraised value thereof, except that the amount of any such
loan hereafter made shall not exceed 66\2/3\ per centum of the appraised
value if such real estate is unimproved, 75 per centum of the appraised
value if such real estate is improved by offsite improvements such as
street, water, sewers, or other utilities, 75 per centum of the
appraised value if such real estate is in the process of being improved
by a building or buildings to be constructed or in the process of
construction, or 90 per centum of the appraised value if such real
estate is improved by a building or buildings. Notwithstanding the above
loan-to-value ratios, the Board may permit a loan-to-value ratio in
excess of 90 per centum if such real estate is improved by a building or
buildings and that portion of the unpaid balance of such loan which is
in excess of an amount equal to 90 per centum of such value is
guaranteed or insured by a public or private mortgage insurer or in the
case of any loan for the purpose of providing housing for persons of low
income, as described in regulations of the Board.
Subsec. (c)(1)(G). Pub. L. 97-320, Sec. 323, inserted ``, or in the
savings accounts, certificates, or other accounts of any institution the
accounts of which are insured by the Federal Savings and Loan Insurance
Corporation'' after ``Federal Deposit Insurance Corporation''.
Subsec. (c)(1)(H). Pub. L. 97-320, Sec. 324, substituted
``Investments in obligations of, or issued by, any State or political
subdivision thereof (including any agency, corporation, or
instrumentality of a State or political subdivision), except that an
association may not invest more than 10 per centum of its capital and
surplus in obligations of any one issuer, exclusive of investments in
general obligations of any issuer'' for ``Investments in general
obligations of any State or any political subdivision thereof''.
Subsec. (c)(1)(O). Pub. L. 97-320, Sec. 328, inserted reference to
loans secured by mortgages as to which the association has the benefit
of insurance under title X of the National Housing Act or of a
commitment or agreement for such insurance.
Subsec. (c)(1)(R). Pub. L. 97-320, Sec. 325, added subpar. (R).
Subsec. (c)(2). Pub. L. 97-320, Sec. 330(1), substituted ``the
following percentages'' for ``20 per centum'' in provisions preceding
subpar. (A).
Subsec. (c)(2)(A). Pub. L. 97-320, Sec. 330(3), substituted
``Investments in tangible personal property, including, without
limitation, vehicles, manufactured homes, machinery, equipment, or
furniture, for rental or sale, but such investment may not exceed 10 per
centum of the assets of the association'' for ``Loans on security of
first liens upon other improved real estate''.
Subsec. (c)(2)(B). Pub. L. 97-320, Sec. 329, inserted ``, including
loans reasonably incident to the provision of such credit,'' after
``household purposes'' and ``, except that loans of an association under
this subparagraph may not exceed 30 per centum of the assets of the
association'' after ``as defined and approved by the Board''.
Subsec. (c)(3)(A). Pub. L. 97-320, Sec. 330(4)(B), substituted
``educational expenses'' for ``expenses of college, university, or
vocational education''.
Subsec. (c)(3)(D). Pub. L. 97-320, Sec. 330(4)(A), struck out
subpar. (D). See 1983 Amendment note reenacting subpar. (D).
Subsec. (c)(4)(C). Pub. L. 97-320, Sec. 330(5)(A), struck out
subparagraph (i) which permitted loans secured by mortgages as to which
the association had the benefit of insurance under title X of the
National Housing Act [12 U.S.C. 1749aa et seq.] or of a commitment or
agreement for such insurance, struck out designations of former
subparagraphs (ii) and (iii), substituted ``guarantee'' for ``guaranty''
in first sentence, inserted ``as hereafter amended or extended'' after
``section 221 or 222 of such Act [22 U.S.C. 2181 or 2182]'', and struck
out ``Investments under clause (i) of this subparagraph shall not be
included in any percentage of assets or other percentage referred to in
this subsection.''
Subsec. (c)(4)(D). Pub. L. 97-320, Sec. 330(5)(B), substituted
provisions authorizing investments in small business investment
companies for provisions that authorized investments in State and local
government obligations.
Subsec. (c)(5), (6). Pub. L. 97-320, Sec. 330(2), redesignated par.
(6) as (5).
Subsec. (d)(4)(C). Pub. L. 97-320, Sec. 427(a)(1), added subpar.
(C). Former subpar. (C) redesignated (D).
Subsec. (d)(4)(D). Pub. L. 97-320, Sec. 427(a)(1)-(3), redesignated
former subpar. (C) as (D), and in subpar. (D) as so redesignated,
substituted ``(A), (B), or (C)'' for ``(A) or (B)'' wherever appearing,
and ``subparagraph (F)'' for ``subparagraph (E)''. Former subpar. (D)
redesignated (E).
Subsec. (d)(4)(E). Pub. L. 97-320, Sec. 427(a)(1), redesignated
former subpar. (D) as (E). Former subpar. (E) redesignated (F).
Subsec. (d)(4)(F). Pub. L. 97-320, Sec. 427(a)(1), (2), (4),
redesignated former subpar. (E) as (F), and in subpar. (F) as so
redesignated, substituted ``(A), (B), or (C)'' for ``(A) or (B)'', and
``subparagraph (D)'' for ``subparagraph (C)''.
Subsec. (d)(5)(A). Pub. L. 97-320, Sec. 427(a)(5), substituted
``(C), or (D)'' for ``or (C)''.
Subsec. (d)(6)(B). Pub. L. 97-320, Sec. 114(b)(1), inserted ``or the
Federal Deposit Insurance Corporation'' after ``Federal Savings and Loan
Corporation''.
Subsec. (d)(6)(D). Pub. L. 97-320, Sec. 114(b)(2), inserted ``,
except as hereafter provided,'' after ``shall appoint''.
Pub. L. 97-320, Sec. 114(b)(3), inserted provision relating to
appointment as receiver and powers of Federal Deposit Insurance
Corporation in the case of a Federal savings bank chartered pursuant to
subsec. (o) of this section.
Subsec. (d)(8)(A). Pub. L. 97-320, Sec. 351, inserted in last
sentence ``, which prevails,'' after ``party''.
Subsec. (d)(8)(B)(i). Pub. L. 97-320, Sec. 424(a), (d)(8), inserted
proviso giving Board discretionary authority to compromise, etc., any
civil money penalty imposed under this subsection, and substituted ``may
be assessed'' for ``shall be assessed''.
Subsec. (d)(8)(B)(iv). Pub. L. 97-320, Sec. 424(e), substituted
``twenty days from the service'' for ``ten days from the date''.
Subsec. (d)(11). Pub. L. 97-320, Sec. 114(c), substituted ``with
associations or any'' for ``with other'' after ``merger of
associations''.
Subsec. (d)(12)(A). Pub. L. 97-320, Sec. 427(a)(6), substituted
``(4)(D), (4)(E)'' for ``(4)(C), (4)(D)''.
Subsec. (i). Pub. L. 97-320, Sec. 313, amended subsec. (i)
generally, substituting expanded provisions relating to conversions by
banks to Federal charters, for provisions relating to conversion of
member of Federal Home Loan Bank into Federal Savings and Loan
Association, conversion of State stock savings and loan type institution
charters into Federal stock charters, and conversion of Federal Savings
and Loan Associations into State-chartered institutions.
Subsec. (o). Pub. L. 97-320, Sec. 112, added subsec. (o).
Subsec. (o)(2)(F), (G). Pub. L. 97-320, Sec. 141(a)(2), which
directed the repeal of subpars. (F) and (G) effective Oct. 13, 1986, was
repealed by Pub. L. 100-86, Sec. 509(a). See Effective and Termination
Dates of 1982 Amendment note and Extension of Emergency Acquisition and
Net Worth Guarantee Provisions of Pub. L. 97-320 note set out below.
Subsec. (p). Pub. L. 97-320, Sec. 141(a)(5), which directed the
repeal of subsec. (p) effective Oct. 13, 1986, was repealed by Pub. L.
100-86, Sec. 509(a). See Effective and Termination Dates of 1982
Amendment note and Extension of Emergency Acquisition and Net Worth
Guarantee Provisions of Pub. L. 97-320 note set out below.
Pub. L. 97-320, Sec. 121, added subsec. (p).
Subsecs. (q), (r). Pub. L. 97-320, Secs. 331, 334, added subsecs.
(q) and (r).
1980--Subsec. (a). Pub. L. 96-221, Sec. 408, redesignated existing
provisions as par. (1), denominated cls. (1) and (2) as (A) and (B),
respectively, wherever appearing, and added pars. (2) and (3).
Subsec. (b)(1). Pub. L. 96-221, Secs. 304, 307, inserted provision
identical to provision added by Pub. L. 96-161 relating to establishment
of remote service units, and repealed the amendment made by Pub. L. 96-
161. See Repeals and Effective Date of 1980 Amendment notes below.
Subsec. (b)(4). Pub. L. 96-221, Sec. 402, added par. (4).
Subsec. (b)(5). Pub. L. 96-221, Sec. 407(a), added par. (5).
Subsec. (c). Pub. L. 96-221, Sec. 401, generally revised investment
authority of an association, with emphasis on provisions respecting
loans or investments without percentage of assets limitations, loans or
investments limited to 20 per centum of assets, and loans or investments
limited to 5 per centum of assets.
Subsec. (i). Pub. L. 96-221, Sec. 404, inserted provisions relating
to conversion of State stock savings and loan type charter into Federal
stock charter.
Subsec. (n). Pub. L. 96-221, Sec. 403, added subsec. (n).
1979--Subsec. (b)(1). Pub. L. 96-161 provided that this section does
not prohibit the establishment of remote service units by associations
for the purpose of crediting existing savings accounts, debiting such
accounts, crediting payments on loans, and the disposition of related
financial transactions as provided in regulations prescribed by the
Board.
Subsec. (c)(1)(B). Pub. L. 96-153, Sec. 326, substituted ``$75,000''
for ``$60,000''.
Subsec. (c)(4)(E). Pub. L. 96-153, Sec. 325, added subpar. (E).
1978--Subsec. (a). Pub. L. 95-630, Sec. 1202, inserted provisions
relating to the authority of the Federal Home Loan Bank Board to allow a
State-chartered mutual savings bank to convert to a Federal charter and
be known as a Federal mutual savings bank.
Subsec. (b)(3). Pub. L. 95-630, Sec. 1701(b), redesignated as
subpar. (3), provisions which were formerly contained in undesignated
par. 23 of subsec. (c).
Subsec. (c). Pub. L. 95-630, Sec. 1701, simplified the investment
authority for Federal savings and loan associations and provided such
associations with more authority to invest in urban areas and
transferred provisions of formerly undesignated paragraphs 15, 17, and
23 of this section to subsecs. (m), (l), and (b)(3) of this section,
respectively.
Subsec. (d)(2). Pub. L. 95-630, Sec. 107(a)(3), in subpar. (A)
extended coverage of provisions to include directors, officers,
employees, agents, or other persons participating in the conduct of the
affairs of any association and added subpar. (C).
Subsec. (d)(3). Pub. L. 95-630, Sec. 107(c)(3), in subpars. (A) and
(B) inserted references to any director, officer, employee, agent, or
other person participating in the conduct of the affairs of the
association and in subpar. (A) inserted ``prior to the completion of the
proceedings conducted pursuant to paragraph (2)(A) of this sub-
subsection'' after ``savings account holders'' and ``and to take
affirmative action to prevent such insolvency, dissipation, condition or
prejudice pending completion of such proceedings'' after ``violation or
practice''.
Subsec. (d)(4)(A). Pub. L. 95-630, Sec. 107(d)(3), inserted ``or
that the director or officer has received financial gain by reason of
such violation or practice or breach of fiduciary duty'' before ``, and
that such violation'', ``, or a willful or continuing disregard for the
safety or soundness of the association'' after ``the part of such
director or officer'', and ``or to prohibit his further participation in
any manner in the conduct of the affairs of the association'' after
``remove him from office''.
Subsec. (d)(4)(B). Pub. L. 95-630, Sec. 107(d)(3), inserted
references to a willful or continuing disregard for its safety and
soundness in two places.
Subsec. (d)(5). Pub. L. 95-630, Sec. 111(c)(1), among other changes,
in subpar. (A) substituted ``crime'' for ``felony'' in two places and
``subparagraph (A), (B), or (C)'' for ``subparagraph (A) or (B)'',
inserted ``which is punishable by imprisonment for a term exceeding one
year under State or Federal law'' after ``or breach of trust'' and ``,
if continued service or participation by the individual may pose a
threat to the interests of the association's depositors or may threaten
to impair public confidence in the association'' after ``the Board may''
in two places, and inserted provision that any notice of suspension or
order of removal issued under this subparagraph remain effective and
outstanding until the completion of any hearing or appeal authorized
under subparagraph (C) hereof unless terminated by the Board, and added
subpar. (C).
Subsec. (d)(7)(A). Pub. L. 95-630, Sec. 111(c)(2), inserted ``(other
than the hearing provided for in paragraph (5)(C) of this subsection''
after ``provided for in this subsection (d)''.
Subsec. (d)(8). Pub. L. 95-630, Sec. 107(e)(3), designated existing
provisions as subpar. (A) and added subpar. (B).
Subsec. (d)(12)(A). Pub. L. 95-630, Sec. 111(c)(3), substituted
``(5)(A), or (5)(C)'' for ``or (5)(A)''.
Subsec. (d)(13)(A)(1). Pub. L. 95-630, Sec. 111(c)(4), inserted ``or
(C)'' after ``paragraph (5)(A)''.
Subsec. (d)(15). Pub. L. 95-630, Sec. 208(b), added par. (15).
Subsec. (i). Pub. L. 95-630, Sec. 1204, inserted ``(including a
savings bank)'' after ``member of a Federal Home Loan Bank'' in first
par.
Subsec. (l). Pub. L. 95-630, Sec. 1701(b), redesignated as subsec.
(l) the provisions which were formerly contained in undesignated par. 17
of subsec. (c).
Subsec. (m). Pub. L. 95-630, Sec. 1701(b), redesignated as subsec.
(m) provisions which were formerly contained in undesignated par. 15 of
subsec. (c).
1977--Subsec. (c), first par. Pub. L. 95-128, Secs. 402, 405, in
first proviso, increased limitation on loans for single family dwellings
to $60,000 from $55,000 and inserted ``but of said 20 per centum the
amount deemed to be loaned in transactions which, except for excess in
amount, would be eligible for such association under provisions of this
sentence (other than this exception) or under the next following
sentence shall be only the outstanding amount of such excess,'' after
``improved real estate without regard to the foregoing limitations,'';
and struck out ``, and the Board shall by regulation limit to not more
than 20 per centum of the assets of the association the aggregate amount
or amounts of the investments which may be made by an association under
the foregoing provisions of this sentence on the security of property
which comprises or includes more than four dwelling units or does not
constitute homes or combinations of homes and business property'' before
``; except''.
Subsec. (c), second and third pars. Pub. L. 95-128, Sec. 404,
increased limitation on loans to $15,000 from $10,000.
Subsec. (c), twenty-first par. Pub. L. 95-128, Sec. 401, increased
the rate to 5 from 3 per centum.
Subsec. (c), twenty-second par. Pub. L. 95-128, Sec. 403, authorized
use of real property or interests for farm purposes.
Subsec. (k). Pub. L. 95-147 inserted ``shall be a depositary of
public money and'' after ``Federal Home Loan Bank'' and ``, including
services in connection with the collection of taxes and other
obligations owed the United States, and the Secretary of the Treasury is
hereby authorized to deposit public money in any such Federal savings
and loan association or member of a Federal home loan bank, and shall
prescribe such regulations as may be necessary to carry out the purposes
of this subsection'' after ``instrumentality of the United States''.
1976--Subsec. (c). Pub. L. 94-375 inserted, in cl. (2) of twelfth
par., ``and in the share capital and capital reserve of the Inter-
American Savings and Loan Bank'' after ``made pursuant to either of such
sections''.
1975--Subsec. (c). Pub. L. 94-60 in seventeenth par. struck out ``or
section 408(a)'' after ``under section 401(d)'', and inserted ``and to
act as trustee or custodian of an individual retirement account within
the meaning of section 408 of such Code'' after ``Code of 1954'', and
``or account'' after ``funds of such trust''.
1974--Subsec. (b)(2). Pub. L. 93-495 inserted ``may be surety as
defined by the Board'' after ``security,''.
Subsec. (c). Pub. L. 93-383, Secs. 703, 805(c)(4), in first par.
increased limitation from $45,000 for each single-family dwelling to
$55,000, except that with respect to Alaska, Guam, and Hawaii the
limitation may be increased by not more than 50 per centum by regulation
of the Board, and inserted reference to mortgages, obligations, or other
securities sold by the Federal Home Loan Mortgage Corporation pursuant
to section 305 or 306 of the Federal Home Loan Mortgage Corporation Act.
Pub. L. 93-383, Sec. 705, in second and third pars. substituted
``$10,000'' for ``$5,000''.
Pub. L. 93-383, Sec. 802(i)(2), in twelfth par. inserted reference
to section 802 of the Housing and Community Development Act of 1974.
Pub. L. 93-449 in seventeenth par. inserted reference to section
408(a) of title 26. As enacted section 4(d) of Pub. L. 93-449 amended
nineteenth par.; however the amendment was executed to seventeenth par.
editorially since this would appear to be the probable intent of
Congress.
Pub. L. 93-383, Sec. 702, added par. authorizing associations to
invest an amount not exceeding the greater of (A) the sum of its
surplus, undivided profits, and reserves or (B) 3 per centum of its
assets, in loans or in interests therein.
Pub. L. 93-383, Sec. 704, added par. authorizing associations to
invest in loans and advances of credit and interests therein upon the
security of or respecting real property or interests therein.
Pub. L. 93-383, Sec. 706, added par. authorizing association to
borrow funds from a State mortgage finance agency of the State in which
the head office of such association is situated.
1973--Subsec. (c). Pub. L. 93-100 added par. authorizing
associations with general reserves, surplus, and undivided profits
aggregating in excess of 5% of their withdrawable accounts to invest in,
to lend to, or to commit themselves to lend to State housing
corporations incorporated in the state in which the head office of the
association is located with certain limitations.
1972--Subsec. (c). Pub. L. 92-318 authorized in second proviso
investments in obligations or other instruments or securities of the
Student Loan Marketing Association.
1970--Subsec. (c), first par. Pub. L. 91-609, Sec. 907(c), increased
aggregate amount of authorized investments from 15 to 20 per centum of
assets of the association.
Pub. L. 91-351, Secs. 706, 709, in first par., inserted ``or within
the State in which such home office is located'' after ``their home
office'', and substituted ``$45,000'' for ``$40,000'' in first proviso,
and ``section'' for ``proviso'' in second proviso.
Pub. L. 91-351, Sec. 708, added par. authorizing any association to
act as trustee of any trust created or organized in the United States
and forming part of a stock bonus, pension, or profit-sharing plan
qualifying for specific tax treatment under section 401(d) of title 26.
Pub. L. 91-609, Secs. 727(d), 907(b), in twelfth par., authorized
associations to invest in loans or obligations guaranteed under part B
of the Urban Growth and New Community Development Act of 1970, and
extended authority to make certain investments to acquisition, holding,
and disposition of loans, or interests therein, having benefit of any
guaranty under section 2181 or 2182 of title 22 or such sections as
hereafter amended or extended, or of any commitment or agreement for any
such guaranty, respectively.
1969--Subsec. (c). Pub. L. 91-152 inserted provision authorizing any
association to invest in stock issued by a corporation created pursuant
to title IX of the Housing and Urban Development Act of 1968, and to
invest in any partnership, etc., formed pursuant to section 907(a) or
907(c) of the Housing and Urban Development Act of 1968.
1968--Subsec. (b). Pub. L. 90-448, Sec. 1716(a), struck out
provisions which permitted associations to raise their capital only in
the form of payments on shares and which prohibited acceptance of
deposits or issuance of certificates of indebtedness except for borrowed
money, and inserted provisions permitting an association to raise
capital in the form of savings deposits, shares, or other accounts and
to issue passbooks, time certificates of deposit, or other evidence of
savings accounts, requiring holders of savings accounts and obligors to
be members of the association, providing for notice for payment of any
savings account, and for payment of withdrawals, prohibiting negotiable
or transferable orders or authorization for checks or withdrawals or
transfers, and empowering the associations to borrow, give security, and
issue such notes, bonds, debentures, or other obligations or other
securities (except capital stock) as the Board may authorize.
Subsec. (c). Pub. L. 90-505 allowed an association to invest in any
investment which, at the time of the making of the investment, was an
asset eligible for inclusion toward satisfaction of any liquidity
requirement imposed on the association by section 1425a of this title
but only to the extent that the investment was permitted to be so
included under regulations issued by the Board or otherwise authorized.
Pub. L. 90-575 amended third par. (as designated prior to amendment
by Pub. L. 90-448) to add vocational education expenses to the list of
expenses for the payment of which associations are authorized to invest
in loan, obligations and advances of credit.
Pub. L. 90-448, Sec. 304(b), inserted paragraph permitting an
association to invest in loans or obligations, or interests therein, as
to which the association has the benefit of insurance under section
1715z-5 of this title, or of a commitment or agreement therefor.
Pub. L. 90-448, Sec. 416(c), inserted sentence permitting an
association to invest in loans or obligations, or interests therein, as
to which the association has the benefit of any guaranty under title IV
of the Housing and Urban Development Act of 1968, as now or hereafter in
effect, or of a commitment or agreement therefor.
Pub. L. 90-448, Sec. 804(e), inserted paragraph authorizing any such
association to issue and sell securities which are guaranteed pursuant
to section 1721(g) of this title.
Pub. L. 90-448, Sec. 807(m), amended first par. to authorize
investments in obligations, participations, or other instruments of or
issued by, or guaranteed as to principal and interest by, the Government
National Mortgage Association, and in stock of the Federal National
Mortgage Association.
Pub. L. 90-448, Sec. 1716(b), in first par., substituted ``security
of their savings accounts'' for ``security of their shares'', and
inserted provisions authorizing investment in time deposits,
certificates, or accounts of any bank the deposits of which are insured
by the Federal Deposit Insurance Corporation.
Pub. L. 90-448, Sec. 1716(c), inserted provisions in second par.
permitting loans for the construction of new structures related to
residential use of the property.
Pub. L. 90-448, Sec. 1716(d), inserted third par. authorizing loans,
or investment in loans, not exceeding $5,000 for repair, equipping,
alteration, or improvement of real property, or for mobile home
financing.
Pub. L. 90-448, Sec. 1716(e), amended par. relating to loans secured
by mortgages insured under Title X of the National Housing Act, to
permit an association to acquire and hold investments in housing project
loans, or interests therein, having the benefit of any guaranty under
section 2181 of title 22, to include commitments or agreements with
respect to loans, or interests therein, made pursuant to either section
2181 or 2184 of title 22, and to eliminate provisions which stated that
investments in loans secured by mortgages insured under Title X of the
National Housing Act shall not be included in any percentage of assets
or other percentage referred to in this subsection, and that investments
in loans guaranteed under section 2184 of title 22 shall not be more
than 1 per centum of the assets of the association.
Pub. L. 90-448, Sec. 1716(f), inserted par. permitting an
association to invest in loans, or interests in loans, to financial
institutions with respect to which the United States or any agency or
instrumentality thereof has any function of examination or supervision,
or to any broker or dealer registered with the Securities and Exchange
Commission, secured by loans, obligations, or investments in which it
has any statutory authority to invest directly.
1966--Subsec. (d). Pub. L. 89-695 amended provisions generally,
substituting pars. (1) to (14) for former pars. (1) (consisting of
thirteen sentences) and (2) (consisting of eleven sentences), such pars.
(2) to (5), (7) to (10), (12)(A)(B), (13), and (14) being new
provisions.
1965--Subsec. (c). Pub. L. 89-117 added par. which permitted an
association to invest in loans (1) secured by mortgages as to which the
association has the benefit of insurance under title X of the National
Housing Act or of a commitment or agreement for such insurance, or (2)
guaranteed by the President under section 2184 of title 22, and
prohibited investments under cl. (2) to exceed 1 per centum of the
assets of such association, provided that, for purposes of this
subsection, ``other dwelling units'' would include living accommodations
for students, employees, or staff members of a college, or university,
or hospital, reduced from 15 to 10 years the time by which a lease
period must extend beyond the maturity date of the debt in order that a
leasehold interest qualify as ``real property'' or ``real estate''
within this section, and added par. which prohibited any District of
Columbia building and loan associations from establishing a branch or
moving its principal office without the prior written approval of the
Federal Home Loan Bank Board and forbade any other building and loan
associations from establishing a branch office in the District or moving
its principal office in the District without such approval.
1964--Subsec. (c). Pub. L. 88-560, Secs. 901(a), 902-905, 907, 908,
910, amended provisions as follows:
Section 901(a) substituted ``one hundred miles'' for ``fifty miles''
in first sentence.
Section 902 substituted ``$40,000'' for ``$35,000'' in first proviso
of first par. and deleted from end of such first proviso ``, except that
the aggregate sums invested pursuant to the two exceptions in this
proviso shall not exceed 30 per centum of the assets of such
association''.
Section 903 substituted provisions which authorized the association
to invest not more than 5 per centum of its assets in, or in interests
in, real property located within urban renewal areas and obligations
secured by first liens on real property so located but limited the
aggregate of such investments to 2 per centum of the assets of the
association for former provisions which authorized the association to
invest not more than 5 per centum of its assets in certificates of
beneficial interest issued by any urban renewal investment trust,
defined an ``urban renewal investment trust'', and provided for rules
and regulations to be prescribed by the Federal Home Loan Bank Board for
the establishment, operation, etc. of such urban renewal investment
trusts.
Section 904 added par. which defined ``real property'' and ``real
estate''.
Section 905 added par. which authorized an association to invest its
assets in a corporation organized in the State where the association's
home office is located, if the entire capital stock of such corporation
is available for purchase only by savings and loan associations
chartered in that State and Federal associations having their home
offices therein but limited the aggregate of such investments to 1 per
centum of its assets.
Section 907 inserted in second proviso of first par. ``, or fully
guaranteed as to principal and interest by,'', authorized an association
to invest in participations or other instruments of or issued by, or
fully guaranteed as to principal and interest by, the Federal National
Mortgage Association or any other agency of the United States, and
defined term ``State''.
Section 908 substituted in first sentence of second par. ``20 per
centum'' and ``$5,000'' for ``15 per centum'' and ``$3,500'',
respectively.
Section 910 inserted after second par. the paragraph which
authorized the association to invest in loans, obligations, and advances
of credit made for the payment of expenses of college or university
education but limited such investments to 5 per centum of the assets of
the association.
1962--Subsec. (c). Pub. L. 87-779, in first par., substituted
provisions authorizing loans on the security of first liens upon real
property within fifty miles of their home office which constitute first
liens upon homes, combinations of homes and business property, other
dwelling units, or combinations of dwelling units, including homes, and
business property involving only minor or incidental business use, for
provisions which permitted loans on the security of first liens upon
homes or combination of homes and business property within fifty miles
of their home office, and provisions limiting the amount of loan on the
security of first liens to not more than $35,000 for each single-family
dwelling, and not more than such amount per room as the Board may
determine within the limits allowable in section 1713(c)(3) of this
title for any other dwelling unit, for provisions which limited the
amount of the loan to not more than $35,000 on the security of a first
lien upon a home or combination of home and business property, inserted
provisions requiring the Board to limit by regulation to not more than
15 per centum of the assets of the association the aggregate amount or
amounts of the investments which may be made by an association on the
security of property which comprises or includes more than four dwelling
units or does not constitute homes or combinations of homes and business
property, changed provisions which permitted use of additional sums not
exceeding 20 per centum of the assets of the association without regard
to area restriction for the making or purchase of participating
interests in first liens on one- to four-family homes to permit use of
such sums for the making or purchase of participating interests in real
property of the type described in the opening provisions of this
subsection, and substituted ``dollar amount limitation'' for ``$35,000
limitation'' in fourth par.
Subsec. (h). Pub. L. 87-834 struck out provisions which exempted
such associations, including their franchises, capital, reserves, and
surplus, and their loans and income, and all shares of such associations
both as to their value and the income therefrom, from all taxation
imposed by the United States.
1961--Pub. L. 87-70 inserted provisions in second par. authorizing
investments in home improvement loans insured under subchapter II of
chapter 13 of this title, and added former fourth, fifth, sixth and
seventh par. (now sixth, seventh, eighth, and ninth) authorizing
investments in non-amortized loans which are made on the security of
first liens upon homes or combinations of homes and business property,
in amortized loans or participating interests therein which are secured
by first liens upon improved real estate used to provide housing
facilities for the aging, in certificates of beneficial interest issued
by any urban renewal investment trust, and permitting associations to
invest in, to lend to, or to commit themselves to lend to any business
development credit corporation incorporated in the State in which the
head office of the association is situated.
1960--Subsec. (d)(1). Pub. L. 86-507 inserted ``or by certified
mail,'' after ``registered mail,''.
1959--Subsec. (c). Pub. L. 86-372 permitted the use of additional
sums not exceeding 20 per centum of the assets of an association without
regard to the area restriction for the making or purchase of
participating interests in first liens on one- to four-family homes,
limited the aggregate sums invested pursuant to the two exceptions to
not more than 30 per centum of the assets of the association, provided
that participating interests in loans secured by mortgages which have
the benefit of insurance or guaranty (or a commitment therefor) under
the National Housing Act, the Servicemen's Readjustment Act of 1944, or
chapter 37 of title 38, shall not be taken into account in determining
the amount of loans which an association may make within any of the
percentage limitations contained in the first proviso, and authorized
any association whose general reserves, surplus, and undivided profits
aggregate a sum in excess of 5 per centum of its withdrawable accounts
to invest an amount not exceeding at any one time 5 per centum of such
withdrawable accounts in loans to finance the acquisition and
development of land for primarily residential usage.
1958--Subsec. (c). Pub. L. 85-857 inserted ``, or chapter 37 of
Title 38'' after ``Servicemen's Readjustment Act of 1944, as amended''
in two places.
1956--Subsec. (c). Act Aug. 7, 1956, substituted ``20 per centum''
for ``15 per centum'' in first sentence, and ``$3,500'' for ``$2,500''
in proviso at end of second par.
1955--Subsec. (c). Act Aug. 11, 1955, removed the limitation of
$2,500 from insured or guaranteed loans.
1954--Subsec. (c). Act Aug. 2, 1954, Secs. 204(b), 503(1), (3),
amended provisions as follows: section 204(b) inserted the reference to
obligations of the Federal National Mortgage Association in second
proviso of first par.; section 503(1), (3), substituted ``$35,000'' for
``$20,000'' in two places in first par. and increased from $1,500 to
$2,500 the maximum amount of an unsecured loan in which a Federal
savings and loan association may invest in second par.
Subsec. (d). Act Aug. 2, 1954, Sec. 503(2), amended provisions
generally to provide a means by administrative and court proceedings
whereby the Board may enforce compliance with law and regulations by
Federal savings and loan associations in cases where the Board felt that
the appointment of a conservator or receiver was not necessary or
desirable; and to set out the grounds, and provide the procedure, for
the appointment of conservators, receivers, and supervisory
representatives.
1952--Subsec. (c). Act July 14, 1952, inserted penultimate sentence
to first par.
1951--Subsec. (h). Act Oct. 20, 1951, inserted ``date, and except,
in the case of taxable years beginning after December 31, 1951, income,
war-profits, and excess-profits taxes''.
1948--Subsec. (i). Act July 3, 1948, permitted any Federal savings
and loan association to convert into a savings and loan type of
organization or a mutual savings bank pursuant to the law of the State
in which the principal office of the association is located.
1947--Subsec. (c). Act Aug. 6, 1947, liberalized provisions with
respect to loans made by Federal savings and loan associations.
1939--Subsec. (h). Act Aug. 10, 1939, inserted exception contained
within first parenthetical.
1935--Subsec. (c). Act May 28, 1935, inserted last proviso.
1934--Subsecs. (i) to (k). Act Apr. 27, 1934, amended subsec. (i)
and added subsecs. (j) and (k).
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Effective Date of 1996 Amendment
Amendment by section 2704(d)(12)(A) of Pub. L. 104-208 effective
Jan. 1, 1999, if no insured depository institution is a savings
association on that date, see section 2704(c) of Pub. L. 104-208, set
out as a note under section 1821 of this title.
Effective Date of 1992 Amendment
Section 1603(d)(8) of Pub. L. 102-550 provided that the amendment
made by that section is effective on the effective date of the amendment
made by section 133(d)(1) of Pub. L. 102-242. See Effective Date of 1991
Amendment note below.
Amendment by section 1606(f) of Pub. L. 102-550 effective as if
included in the Federal Deposit Insurance Corporation Improvement Act of
1991, Pub. L. 102-242, as of Dec. 19, 1991, except that where amendment
is to any provision of law added or amended by Pub. L. 102-242 effective
after Dec. 19, 1992, then amendment by Pub. L. 102-550 effective on
effective date of amendment by Pub. L. 102-242, see section 1609 of Pub.
L. 102-550, set out as a note under section 191 of this title.
Effective Date of 1991 Amendment
Section 131(f) of Pub. L. 102-242 provided that: ``The amendments
made by this section [enacting section 1831o of this title and amending
this section and sections 1813 and 1818 of this title] shall become
effective 1 year after the date of enactment of this Act [Dec. 19,
1991].''
Amendment by section 133(d) of Pub. L. 102-242 effective 1 year
after Dec. 19, 1991, see section 133(g) of Pub. L. 102-242, set out as a
note under section 191 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98-620 not applicable to cases pending on Nov.
8, 1984, see section 403 of Pub. L. 98-620, set out as an Effective Date
note under section 1657 of Title 28, Judiciary and Judicial Procedure.
Effective Date of 1983 Amendment
Section 14(a)(2) of Pub. L. 97-457 provided that: ``The amendment
made by paragraph (1) [amending this section] shall be deemed to have
taken effect upon the enactment of Public Law 97-320 [Oct. 15, 1982].''
Effective and Termination Dates of 1982 Amendment
Prior to its repeal by section 509(a) of Pub. L. 100-86, section 141
of Pub. L. 97-320, as amended by Pub. L. 99-120, Sec. 6(a), Oct. 8,
1985, 99 Stat. 504; Pub. L. 99-278, Sec. 1(a), Apr. 24, 1986, 100 Stat.
397; Pub. L. 99-400, Sec. 1(a), Aug. 27, 1986, 100 Stat. 902; Pub. L.
99-452, Sec. 1(a), Oct. 8, 1986, 100 Stat. 1140, provided that:
``(a) Effective on October 13, 1986--
``(1) section 13(c)(5) of the Federal Deposit Insurance Act
[section 1823(c)(5) of this title], as added by section 111 of this
Act, shall be repealed;
``(2) subparagraphs (F) and (G) of section 5(o)(2) of the Home
Owners' Loan Act of 1933 [section 1464(o)(2) of this title], as
added by section 112 of this Act, shall be repealed;
``(3) the provision of law amended by section 116 of this Act
[section 1823(f) of this title] shall be amended to read as it would
without such amendment;
``(4) the provisions of law amended by subsections (a) [section
1843(c)(8) of this title] and (c) [section 1842(d) of this title] of
section 118 shall be amended to read as they would without such
amendments;
``(5) the provision of law amended by section 121 of this Act
[section 1464(p) of this title] shall be amended to read as it would
without such amendment;
``(6) the provisions of law amended by subsections (d) through
(g) of section 122 of this Act [section 1729(c), (d) of this title]
shall be amended to read as they would without such amendments;
``(7) the provisions of law amended by section 123 of this Act
[section 1730a(e)(2), (m) of this title] shall be amended to read as
they would without such amendments; and
``(8) the provisions of law amended by sections 131 [section
1785(h), (i) of this title] and 132 [section 1786(b)(2), (h)-(p) of
this title] shall be amended to read as they would without such
amendments.
``(b) The repeal or termination by subsection (a) of any amendment
made by this Act shall have no effect on any action taken or authorized
while such amendment was in effect.''
Effective Date of 1980 Amendment
Amendment by section 304 of Pub. L. 96-221 effective at close of
Mar. 31, 1980, see section 306 of Pub. L. 96-221, set out as a note
under section 371a of this title.
Effective and Termination Dates of 1979 Amendment
Amendment by Pub. L. 96-161 effective Dec. 31, 1979, with that
amendment to remain in effect until close of Mar. 31, 1980, see section
104 of Pub. L. 96-161, set out as a note under section 371a of this
title.
Effective Date of 1978 Amendment
Amendment by section 107(e)(3) of Pub. L. 95-630, relating to
imposition of civil penalties, applicable to violations occurring or
continuing after Nov. 10, 1978, see section 109 of Pub. L. 95-630, set
out as a note under section 93 of this title.
Amendment by section 1701 of Pub. L. 95-630 effective Nov. 10, 1978,
see section 1703 of Pub. L. 95-630, set out as a note under section 1451
of this title.
Amendment by Pub. L. 95-630 effective, except as otherwise provided,
on expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub.
L. 95-630 set out as an Effective Date note under section 375b of this
title.
Effective Date of 1974 Amendment
Amendment by Pub. L. 93-495 effective on thirtieth day beginning
after Oct. 28, 1974, see section 101(g) of Pub. L. 93-495, set out as a
note under section 1813 of this title.
Effective Date of 1973 Amendment
Amendment by Pub. L. 93-100 effective Aug. 16, 1973, see section 8
of Pub. L. 93-100, set out as an Effective Date note under section 1469
of this title.
Effective Date of 1968 Amendment
For effective date of amendment by title VIII of Pub. L. 90-448, see
section 808 of Pub. L. 90-448, set out as an Effective Date note under
section 1716b of this title.
Effective Date of 1966 Amendment
Section 101(b) of Pub. L. 89-695 provided that: ``The amendment made
by subsection (a) of this section [amending this section] shall be
effective only with respect to proceedings commenced on or after the
date of enactment of this Act [Oct. 16, 1966]. Section 5(d) of the Home
Owners' Loan Act of 1933 [this section] as in effect immediately prior
to the date of enactment of this Act shall continue in effect with
respect to any proceedings commenced prior to such date.''
Expiration of 1966 Amendment
Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84 Stat. 1811,
repealed section 401 of Pub. L. 89-695 which had provided that: ``The
provisions of titles I and II of this Act [amending this section and
sections 1730, 1813, 1817 to 1820 of this title, repealing section 77 of
this title, and enacting provisions set out as notes under this section
and sections 1730 and 1813 of this title] and any provisions of law
enacted by said titles shall be effective only during the period ending
at the close of June 30, 1972. Effective upon the expiration of such
period, each provision of law amended by either of such titles is
further amended to read as it did immediately prior to the enactment of
this Act [Oct. 16, 1966] and each provision of law repealed by either of
such titles is reenacted.''
Effective Date of 1962 Amendment
Section 6(g)(4) of Pub. L. 87-834, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
``Subsection (e) of this section [amending this section and section
4382 of Title 26, Internal Revenue Code] shall become effective on
January 1, 1963, except that--
``(A) in the case of the tax imposed by section 4251 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954, section 4251 of
title 26], such subsection shall apply only with respect to amounts
paid pursuant to bills rendered after December 31, 1962; and
``(B) in the case of the tax imposed by section 4261 of such
Code [section 4261 of title 26], such subsection shall apply only
with respect to transportation beginning after December 31, 1962.''
Effective Date of 1958 Amendment
Amendment by Pub. L. 85-857 effective Jan. 1, 1959, see section 2 of
Pub. L. 85-857, set out as an Effective Date note preceding Part 1 of
Title 38, Veterans' Benefits.
Effective Date of 1951 Amendment
Amendment by act Oct. 20, 1951, applicable only with respect to
taxable years beginning after Dec. 31, 1951, see section 313(j) of act
Oct. 20, 1951.
Section 615 of act Oct. 20, 1951, provided that: ``No amendment made
by this Act [see Tables for classification] shall apply in any case
where its application would be contrary to any treaty obligation of the
United States.''
Short Title of 1974 Amendment
Section 701 of title VII of Pub. L. 93-383 provided that: ``This
title [amending this section and sections 371, 1757, 1759, 1761b, 1761d,
1763, 1772, 1782, 1786, and 1788 of this title] may be cited as the
`Consumer Home Mortgage Assistance Act of 1974'.''
Short Title of 1966 Amendment
Section 1 of Pub. L. 89-695 provided: ``That this Act [amending this
section and sections 1724, 1728, 1730, 1730a, 1813, and 1817 to 1821 of
this title, repealing section 77 of this title, and enacting provisions
set out as notes under this section and sections 1724, 1730, and 1813 of
this title] may be cited as the `Financial Institutions Supervisory Act
of 1966'.''
Effective Date of Regulations Prescribed Under 1986 Amendment
Section 1364(e) of Pub. L. 99-570 provided that: ``The regulations
required to be prescribed under the amendments made by section 1359
[amending this section and sections 1730, 1786, and 1818 of this title]
shall take effect at the end of the 3-month period beginning on the date
of the enactment of this Act [Oct. 27, 1986].''
Transitional Rules Regarding Certain Loans
Section 305(a), (b) of Pub. L. 101-73 provided that:
``(a) Divestiture of Certain Loans and Investments Not Required.--
The limitations on loans and investments contained in section 5(c) of
the Home Owners' Loan Act [12 U.S.C. 1464(c)], as amended by section
301, do not require the divestiture of any loan or investment that was
lawful when made under the provisions of such section as those
provisions were in effect at the time such loan or investment was made.
``(b) Loans Secured by Nonresidential Real Property.--
``(1) In general.--The Director of the Office of Thrift
Supervision may, by order, permit a Federal savings association to
exceed the limitation set forth in section 5(c)(2)(B)(i) of the Home
Owners' Loan Act [12 U.S.C. 1464(c)(2)(B)(i)] during the period
beginning on the date of enactment of this Act [Aug. 9, 1989] and
ending on June 1, 1991, if the Director determines that--
``(A) there is a reasonable prospect that the savings
association can be in compliance, not later than June 1, 1991,
with the capital standards prescribed under section 5(t) of the
Home Owners' Loan Act; and
``(B) the increased authority--
``(i) is consistent with prudent operating practices,
and
``(ii) is in accordance with a plan submitted by the
savings association for--
``(I) an orderly transition to compliance with section
5(c)(2)(B)(i), or
``(II) an orderly conversion to a bank charter.
``(2) Other exemptive authority not affected.--The authority
granted by paragraph (1) is in addition to any authority of the
Director under section 5(c)(2)(B)(ii) of the Home Owners' Loan
Act.''
Extension of Emergency Acquisition and Net Worth Guarantee Provisions of
Pub. L. 97-320
Section 509(c) of Pub. L. 100-86 provided that: ``No amendment made
by part D [section 141, formerly set out as an Effective and Termination
Dates of 1982 Amendment note above] of title I or section 206 [set out
as an Effective and Termination Dates of 1982 Amendment note under
section 1729 of this title] of the Garn-St Germain Depository
Institutions Act of 1982 [Pub. L. 97-320], as in effect before the date
of the enactment of this Act [Aug. 10, 1987], to any other provision of
law shall be deemed to have taken effect before the date of the
enactment of this Act and any such provision of law shall be in effect
as if no such amendment had been made before such date of enactment.''
Pub. L. 99-452, Sec. 1(c), Oct. 8, 1986, 100 Stat. 1140, provided
that: ``No amendment made by section 141(a) or section 206(a) of the
Garn-St Germain Depository Institutions Act of 1982 [set out as
Effective and Termination Dates of 1982 Amendment notes under sections
1464 and 1729 of this title], as in effect on the day before the date of
the enactment of this Act [Oct. 8, 1986], to any other provision of law
shall be deemed to have taken effect before such date of enactment and
any such provision of law shall be in effect as if no such amendment had
taken effect before such date of enactment.''
Pub. L. 99-400, Sec. 1(c), Aug. 27, 1986, 100 Stat. 902, provided
that: ``Sections 141(a) and 206(a) of the Garn-St Germain Depository
Institutions Act of 1982 [set out as Effective and Termination Dates of
1982 Amendment notes under sections 1464 and 1729 of this title], as
such sections are in effect on the day after the date of enactment of
this Act [Aug. 27, 1986], shall apply as if such sections had been
included in the Garn-St Germain Depository Institutions Act of 1982 on
the date of the enactment of such Act [Oct. 15, 1982], no amendment made
by any such section to any other provision of law shall be deemed to
have taken effect before the date of the enactment of this Act, and any
such provision of law shall be in effect as if no such amendment had
taken effect before the date of the enactment of this Act.''
Repeals
Amendment of this section by section 102 of Pub. L. 96-161, cited as
a credit to this section, was repealed at the close of Mar. 31, 1980, by
section 307 of Pub. L. 96-221, and substantially identical provisions
were enacted by section 304 of Pub. L. 96-221, such amendments to take
effect at the close of Mar. 31, 1980.
Section Referred to in Other Sections
This section is referred to in sections 1422b, 1462, 1463, 1467,
1467a, 1813, 1817, 1818, 1821, 1823, 1828, 1831e, 1831o of this title;
title 15 sections 18a, 78m, 78o-5; title 31 sections 3121, 9110.
