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US (United States) Code. Title 12. Chapter 12: Savings Associations

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12 USC CHAPTER 12 - SAVINGS ASSOCIATIONS 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

CHAPTER 12 - SAVINGS ASSOCIATIONS

-MISC1-

Sec.

1461. Short title.

1462. Definitions.

1462a. Director of Office of Thrift Supervision.

(a) Establishment of Office.

(b) Establishment of position of Director.

(d) Prohibition on financial interests.

(e) Powers of Director.

(f) State homestead provisions.

(g) Annual report required.

(h) Staff.

(i) Funding through assessments.

(j) GAO audit.

1463. Supervision of savings associations.

(a) Federal savings associations.

(b) Accounting and disclosure.

(d) Investment of certain funds in accounts of

savings associations.

(e) Participation by savings associations in

lotteries and related activities.

(f) Federally related mortgage loan disclosures.

(g) Preemption of State usury laws.

(h) Form and maturity of securities.

1464. Federal savings associations.

(a) In general.

(b) Deposits and related powers.

(d) Regulatory authority.

(e) Character and responsibility.

(f) Federal home loan bank membership.

(g) Repealed.

(h) Discriminatory State and local taxation

prohibited.

(i) Conversions.

(j) Repealed.

(k) Depository of public money.

(l) Retirement accounts.

(m) Branching.

(n) Trusts.

(o) Conversion of State savings banks.

(p) Conversions.

(q) Tying arrangements.

(r) Out-of-State branches.

(s) Minimum capital requirements.

(t) Capital standards.

(u) Limits on loans to one borrower.

(v) Reports of condition.

(w) Forfeiture of franchise for money laundering or

cash transaction reporting offenses.

1465. Repealed.

1466. Applicability.

1466a. District associations.

(a) In general.

(b) Additional powers.

(d) Limitation.

1467. Examination fees.

(a) Examination of savings associations.

(b) Examination of affiliates.

affiliate's refusal to pay.

(d) Civil money penalty for affiliate's refusal to

cooperate.

(e) Regulations.

(f) Collection through FDIC or Federal home loan

banks.

(g) Costs of other examinations.

(h) Additional information.

(i) Treatment of examination assessments.

(j) Processing fee.

(k) Fees for examinations and supervisory activities.

(l) Working capital.

(m) Use of funds.

1467a. Regulation of holding companies.

(a) Definitions.

(b) Registration and examination.

(d) Transactions with affiliates.

(e) Acquisitions.

(f) Declaration of dividend.

(g) Administration and enforcement.

(h) Prohibited acts.

(i) Penalties.

(j) Judicial review.

(k) Savings clause.

(l) Treatment of FDIC insured State savings banks and

cooperative banks as savings associations.

(m) Qualified thrift lender test.

(n) Tying restrictions.

(o) Mutual holding companies.

(p) Holding company activities constituting serious

risk to subsidiary savings association.

(q) Qualified stock issuance by undercapitalized

savings associations or holding companies.

(r) Penalty for failure to provide timely and

accurate reports.

(s) Mergers, consolidations, and other acquisitions

authorized.

(t) Exemption for bank holding companies.

1468. Transactions with affiliates; extensions of credit to

executive officers, directors, and principal shareholders.

(a) Affiliate transactions.

(b) Extensions of credit to executive officers,

directors, and principal shareholders.

1468a. Advertising.

1468b. Powers of examiners.

1468c. Separability.

1469. Authority to invest in State housing corporations.

1470. Federal supervision of insured institutions, State member and

nonmember banks; access to information; definitions.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1441a, 1831k, 1843, 3204,

3401 of this title; title 18 section 433; title 41 section 22.

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12 USC Sec. 1461 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1461. Short title

-STATUTE-

This chapter may be cited as the ''Home Owners' Loan Act.''

-SOURCE-

(June 13, 1933, ch. 64, Sec. 1, 48 Stat. 128; Pub. L. 101-73, title

III, Sec. 301, Aug. 9, 1989, 103 Stat. 277.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-73 amended section generally, striking out

''of 1933'' after ''Act''.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 305(c) of Pub. L. 101-73 provided that: ''The amendments

made by section 301 (amending this chapter) relating to civil

penalties shall apply with respect to violations committed and

activities engaged in after the date of the enactment of this Act

(Aug. 9, 1989), except that the increased maximum civil penalties

of $5,000 and $25,000 per violation or per day may apply to such

violations or activities committed or engaged in before such date

with respect to an institution if such violations or activities -

''(1) are not already subject to a notice issued by the

appropriate Federal banking agency or the Board (initiating an

administrative proceeding); and

''(2) occurred after the completion of the last report of

examination of the institution by the appropriate Federal banking

agency (as defined in section 3 of the Federal Deposit Insurance

Act (12 U.S.C. 1813)) occurring before the date of the enactment

of this Act.''

SHORT TITLE OF 1998 AMENDMENT

Pub. L. 105-164, Sec. 1, Mar. 20, 1998, 112 Stat. 32, provided

that: ''This Act (enacting section 1786a of this title, amending

sections 1464 and 1818 of this title, and enacting provisions set

out as a note under section 1811 of this title) may be cited as the

'Examination Parity and Year 2000 Readiness for Financial

Institutions Act'.''

SHORT TITLE OF 1991 AMENDMENT

Pub. L. 102-242, title IV, Sec. 436, Dec. 19, 1991, 105 Stat.

2381, provided that: ''This subtitle (subtitle G (Sec. 436-441) of

title IV of Pub. L. 102-242, amending sections 1464 and 1467a of

this title) may be cited as the 'Qualified Thrift Lender Reform Act

of 1991'.''

SHORT TITLE OF 1982 AMENDMENT

Pub. L. 97-320, title III, Sec. 301, Oct. 15, 1982, 96 Stat.

1496, provided that: ''This title (enacting section 1701j-3 of this

title, amending sections 1425a, 1426, 1428a, 1430, 1464, 1725,

1730a, 1841, and 3503 of this title, enacting provisions set out as

a note under section 3503 of this title, and repealing provisions

set out as a note under section 461 of this title) may be cited as

the 'Thrift Institutions Restructuring Act'.''

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12 USC Sec. 1462 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1462. Definitions

-STATUTE-

For purposes of this chapter -

(1) Director

The term ''Director'' means the Director of the Office of

Thrift Supervision.

(2) Corporation

The term ''Corporation'' means the Federal Deposit Insurance

Corporation.

(3) Office

The term ''Office'' means the Office of Thrift Supervision.

(4) Savings association

The term ''savings association'' means a savings association,

as defined in section 3 of the Federal Deposit Insurance Act (12

U.S.C. 1813), the deposits of which are insured by the

Corporation.

(5) Federal savings association

The term ''Federal savings association'' means a Federal

savings association or a Federal savings bank chartered under

section 1464 of this title.

(6) National bank

The term ''national bank'' has the same meaning as in section 3

of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(7) Federal banking agencies

The term ''Federal banking agencies'' means the Office of the

Comptroller of the Currency, the Board of Governors of the

Federal Reserve System, and the Federal Deposit Insurance

Corporation.

(8) State

The term ''State'' has the same meaning as in section 3 of the

Federal Deposit Insurance Act (12 U.S.C. 1813).

(9) Affiliate

The term ''affiliate'' means any person that controls, is

controlled by, or is under common control with, a savings

association, except as provided in section 1467a of this title.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 2, 48 Stat. 128; June 27, 1934, ch.

847, title V, Sec. 508(a), 48 Stat. 1264; May 28, 1935, ch. 150,

Sec. 10, 49 Stat. 296; 1947 Reorg. Plan No. 3, eff. July 27, 1947,

12 F.R. 4981, 61 Stat. 954; Aug. 11, 1955, ch. 783, title I, Sec.

109(a)(3), 69 Stat. 640; Pub. L. 95-630, title XII, Sec. 1201, Nov.

10, 1978, 92 Stat. 3710; Pub. L. 97-320, title I, Sec. 114(a), Oct.

15, 1982, 96 Stat. 1475; Pub. L. 101-73, title III, Sec. 301, Aug.

9, 1989, 103 Stat. 277.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-73 amended section generally, substituting

definition of ''Director'', ''Corporation'', ''Office'', ''savings

association'', ''Federal savings association'', ''national bank'',

''Federal banking agencies'', ''State'', and ''affiliate'',

designated as pars. (1) to (9), for definition of ''Board'',

''Corporation'', ''home mortgage'', ''first mortgage'', and

''association'', designated as subsecs. (a) to (d).

1982 - Subsec. (d). Pub. L. 97-320 substituted reference to

Federal savings bank or Federal savings banks for reference to

Federal mutual savings bank wherever appearing.

1978 - Subsec. (d). Pub. L. 95-630 included a Federal mutual

savings bank chartered by the Board within definition of

''association'', and inserted provisions that a reference to a

Federal savings and loan association shall be deemed also a

reference to a Federal mutual savings bank.

1935 - Subsec. (c). Act May 28, 1935, inserted ''or dwellings''

and ''in whole or in part'' in cl. (2).

1934 - Subsec. (c). Act June 27, 1934, substituted ''(1) under a

lease for not less than ninety-nine years which is renewable, or

(2) under a lease having a period of not less than fifty years to

run from the date the mortgage was executed'' for ''under a lease

renewable for not less than ninety nine years''.

-CHANGE-

CHANGE OF NAME

''Home Loan Bank Board'' changed to ''Federal Home Loan Bank

Board'' by act Aug. 11, 1955, ch. 783, Sec. 109(a)(3), which was

classified to section 1437(b) of this title prior to the repeal of

section 1437 by Pub. L. 101-73, title VII, Sec. 703(a), Aug. 9,

1989, 103 Stat. 415.

-MISC4-

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment effective upon 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.

-TRANS-

TRANSFER OF FUNCTIONS

Reorg. Plan No. 3 of 1947, set out in the Appendix to Title 5,

Government Organization and Employees, abolished Federal Home Loan

Bank Board and transferred its functions to Home Loan Bank Board

created by the Plan.

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12 USC Sec. 1462a 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1462a. Director of Office of Thrift Supervision

-STATUTE-

(a) Establishment of Office

There is established the Office of Thrift Supervision, which

shall be an office in the Department of the Treasury.

(b) Establishment of position of Director

(1) In general

There is established the position of the Director of the Office

of Thrift Supervision, who shall be the head of the Office of

Thrift Supervision and shall be subject to the general oversight

of the Secretary of the Treasury.

(2) Authority to prescribe regulations

The Director may prescribe such regulations and issue such

orders as the Director may determine to be necessary for carrying

out this chapter and all other laws within the Director's

jurisdiction.

(3) Autonomy of Director

The Secretary of the Treasury may not intervene in any matter

or proceeding before the Director (including agency enforcement

actions) unless otherwise specifically provided by law.

(4) Banking agency rulemaking

The Secretary of the Treasury may not delay or prevent the

issuance of any rule or the promulgation of any regulation by the

Director.

(1) Appointment

The Director shall be appointed by the President, by and with

the advice and consent of the Senate, from among individuals who

are citizens of the United States.

(2) Term

The Director shall be appointed for a term of 5 years.

(3) Vacancy

A vacancy in the position of Director which occurs before the

expiration of the term for which a Director was appointed shall

be filled in the manner established in paragraph (1) and the

Director appointed to fill such vacancy shall be appointed only

for the remainder of such term.

(4) Service after end of term

An individual may serve as Director after the expiration of the

term for which appointed until a successor Director has been

appointed.

(5) Transitional provision

Notwithstanding paragraphs (1) and (2), the Chairman of the

Federal Home Loan Bank Board on the date of enactment of the

Financial Institutions Reform, Recovery, and Enforcement Act of

1989 (Aug. 9, 1989), shall be the Director until the date on

which that individual's term as Chairman of the Federal Home Loan

Bank Board would have expired.

(d) Prohibition on financial interests

The Director shall not have a direct or indirect financial

interest in any insured depository institution, as defined in

section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(e) Powers of Director

The Director shall have all powers which -

(1) were vested in the Federal Home Loan Bank Board (in the

Board's capacity as such) or the Chairman of such Board on the

day before the date of the enactment of the Financial

Institutions Reform, Recovery, and Enforcement Act of 1989 (Aug.

9, 1989); and

(2) were not -

(A) transferred to the Federal Deposit Insurance Corporation,

the Federal Housing Finance Board, the Resolution Trust

Corporation, or the Federal Home Loan Mortgage Corporation

pursuant to any amendment made by such Act; or

(B) established under any provision of law repealed by such

Act.

(f) State homestead provisions

No provision of this chapter or any other provision of law

administered by the Director shall be construed as superseding any

homestead provision of any State constitution, including any

implementing State statute, in effect on September 29, 1994, or any

subsequent amendment to such a State constitutional or statutory

provision in effect on September 29, 1994, that exempts the

homestead of any person from foreclosure, or forced sale, for the

payment of all debts, other than a purchase money obligation

relating to the homestead, taxes due on the homestead, or an

obligation arising from work and material used in constructing

improvements on the homestead.

(g) Annual report required

The Director shall make an annual report to the Congress. Such

report shall include -

(1) a description of any changes the Director has made or is

considering making in the district offices of the Office,

including a description of the geographic allocation of the

Office's resources and personnel used to carry out examination

and supervision functions; and

(2) a description of actions taken to carry out section 308 of

the Financial Institutions Reform, Recovery, and Enforcement Act

of 1989.

(h) Staff

(1) Appointment and compensation

The Director shall fix the compensation and number of, and

appoint and direct, all employees of the Office of Thrift

Supervision notwithstanding section 301(f)(1) of title 31. Such

compensation shall be paid without regard to the provisions of

other laws applicable to officers or employees of the United

States.

(2) Rates of basic pay

Rates of basic pay for employees of the Office may be set and

adjusted by the Director without regard to the provisions of

chapter 51 or subchapter III of chapter 53 of title 5.

(3) Additional compensation and benefits

The Director may provide additional compensation and benefits

to employees of the Office if the same type of compensation or

benefits are then being provided by any Federal banking agency

or, if not then being provided, could be provided by such an

agency under applicable provisions of law, rule, or regulation.

In setting and adjusting the total amount of compensation and

benefits for employees of the Office, the Director shall consult,

and seek to maintain comparability with, the Federal banking

agencies.

(4) Delegation authority

(A) In general

The Director may -

(i) designate who shall act as Director in the Director's

absence; and

(ii) delegate to any employee, representative, or agent any

power of the Director.

(B) Limitations

Notwithstanding subparagraph (A)(ii), the Director shall not,

directly or indirectly -

(i) after October 10, 1989, delegate to any Federal home

loan bank or to any officer, director, or employee of a

Federal home loan bank, any power involving examining,

supervising, taking enforcement action with respect to, or

otherwise regulating any savings association, savings and

loan holding company, or other person subject to regulation

by the Director; or

(ii) delegate the Director's authority to serve as a member

of the Corporation's Board of Directors.

(i) Funding through assessments

The compensation of the Director and other employees of the

Office and all other expenses thereof may be paid from assessments

levied under this chapter.

(j) GAO audit

The Director shall make available to the Comptroller General of

the United States all books and records necessary to audit all of

the activities of the Office of Thrift Supervision.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 3, as added Pub. L. 101-73, title III,

Sec. 301, Aug. 9, 1989, 103 Stat. 278; amended Pub. L. 103-325,

title III, Sec. 331(c), Sept. 23, 1994, 108 Stat. 2232; Pub. L.

103-328, title I, Sec. 102(b)(5), Sept. 29, 1994, 108 Stat. 2352.)

-REFTEXT-

REFERENCES IN TEXT

The Financial Institutions Reform, Recovery, and Enforcement Act

of 1989, referred to in subsecs. (c)(5), (e), and (g)(2), is Pub.

L. 101-73, Aug. 9, 1989, 103 Stat. 183. Section 308 of the Act is

set out as a note under section 1463 of this title. For complete

classification of this Act to the Code, see Tables.

-MISC2-

PRIOR PROVISIONS

A prior section 3 of act June 13, 1933, amended section 1424 of

this title prior to the general revision of this chapter by Pub. L.

101-73, Sec. 301.

AMENDMENTS

1994 - Subsec. (b)(3). Pub. L. 103-325, Sec. 331(c)(1),

substituted ''(including agency enforcement actions) unless

otherwise specifically provided by law'' for ''unless otherwise

provided by law''.

Subsec. (b)(4). Pub. L. 103-325, Sec. 331(c)(2), added par. (4).

Subsecs. (f) to (j). Pub. L. 103-328 added subsec. (f) and

redesignated former subsecs. (f) to (i) as (g) to (j),

respectively.

-EXEC-

DELEGATION OF AUTHORITY TO RATIFY OFFICE OF THRIFT SUPERVISION

ACTIONS

Memorandum of the President of the United States, Apr. 18, 1990,

55 F.R. 15207, provided:

Memorandum for the Director of the Office of Thrift Supervision

By the authority vested in me as President of the United States

by the Constitution and laws of the United States, including

section 301 of title 3 of the United States Code, I hereby delegate

to the Director of the Office of Thrift Supervision my authority to

ratify actions taken on behalf of, or in the name of, the Office of

Thrift Supervision or its Director before April 9, 1990.

This memorandum shall be published in the Federal Register.

George Bush.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1 of this title; title 31

section 309.

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12 USC Sec. 1463 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1463. Supervision of savings associations

-STATUTE-

(a) Federal savings associations

(1) In general

The Director shall provide for the examination, safe and sound

operation, and regulation of savings associations.

(2) Regulations

The Director may issue such regulations as the Director

determines to be appropriate to carry out the responsibilities of

the Director or the Office.

(3) Safe and sound housing credit to be encouraged

The Director shall exercise all powers granted to the Director

under this chapter so as to encourage savings associations to

provide credit for housing safely and soundly.

(b) Accounting and disclosure

(1) In general

The Director shall, by regulation, prescribe uniform accounting

and disclosure standards for savings associations, to be used in

determining savings associations' compliance with all applicable

regulations.

(2) Specific requirements for accounting standards

Subject to section 1464(t) of this title, the uniform

accounting standards prescribed under paragraph (1) shall -

(A) incorporate generally accepted accounting principles to

the same degree that such principles are used to determine

compliance with regulations prescribed by the Federal banking

agencies;

(B) allow for no deviation from full compliance with such

standards as are in effect after December 31, 1993; and

savings associations with accounting standards in effect at any

time before such date not later than provided under the

schedule in section 563.23-3 of title 12, Code of Federal

Regulations (as in effect on May 1, 1989).

(3) Authority to prescribe more stringent accounting standards

The Director may at any time prescribe accounting standards

more stringent than required under paragraph (2) if the Director

determines that the more stringent standards are necessary to

ensure the safe and sound operation of savings associations.

All regulations and policies of the Director governing the safe

and sound operation of savings associations, including regulations

and policies governing asset classification and appraisals, shall

be no less stringent than those established by the Comptroller of

the Currency for national banks.

(d) Investment of certain funds in accounts of savings associations

The savings accounts and share accounts of savings associations

insured by the Corporation shall be lawful investments and may be

accepted as security for all public funds of the United States,

fiduciary and trust funds under the authority or control of the

United States or any officer thereof, and for the funds of all

corporations organized under the laws of the United States (subject

to any regulatory authority otherwise applicable), regardless of

any limitation of law upon the investment of any such funds or upon

the acceptance of security for the investment or deposit of any of

such funds.

(e) Participation by savings associations in lotteries and related

activities

(1) Participation prohibited

No savings association may -

(A) deal in lottery tickets;

(B) deal in bets used as a means or substitute for

participation in a lottery;

lottery; or

(D) announce, advertise, or publicize the existence or

identity of any participant or winner, as such, in a lottery.

(2) Use of facilities prohibited

No savings association may permit -

(A) the use of any part of any of its own offices by any

person for any purpose forbidden to the institution under

paragraph (1); or

(B) direct access by the public from any of its own offices

to any premises used by any person for any purpose forbidden to

the institution under paragraph (1).

(3) Definitions

For purposes of this subsection -

(A) Deal in

The term ''deal in'' includes making, taking, buying,

selling, redeeming, or collecting.

(B) Lottery

The term ''lottery'' includes any arrangement under which -

(i) 3 or more persons (hereafter in this subparagraph

referred to as the ''participants'') advance money or credit

to another in exchange for the possibility or expectation

that 1 or more but not all of the participants (hereafter in

this paragraph referred to as the ''winners'') will receive

by reason of those participants' advances more than the

amounts those participants have advanced; and

(ii) the identity of the winners is determined by any means

which includes -

(I) a random selection;

(II) a game, race, or contest; or

(III) any record or tabulation of the result of 1 or more

events in which any participant has no interest except for

the bearing that event has on the possibility that the

participant may become a winner.

The term ''lottery ticket'' includes any right, privilege, or

possibility (and any ticket, receipt, record, or other evidence

of any such right, privilege, or possibility) of becoming a

winner in a lottery.

(4) Exception for State lotteries

Paragraphs (1) and (2) shall not apply with respect to any

savings association accepting funds from, or performing any

lawful services for, any State operating a lottery, or any

officer or employee of such a State who is charged with

administering the lottery.

(5) Regulations

The Director shall prescribe such regulations as may be

necessary to provide for enforcement of this subsection and to

prevent any evasion of any provision of this subsection.

(f) Federally related mortgage loan disclosures

A savings association may not make a federally related mortgage

loan to an agent, trustee, nominee, or other person acting in a

fiduciary capacity without requiring that the identity of the

person receiving the beneficial interest of such loan shall at all

times be revealed to the savings association. At the request of

the Director, the savings association shall report to the Director

the identity of such person and the nature and amount of the loan.

(g) Preemption of State usury laws

(1) Notwithstanding any State law, a savings association may

charge interest on any extension of credit at a rate of not more

than 1 percent in excess of the discount rate on 90-day commercial

paper in effect at the Federal Reserve bank in the Federal Reserve

district in which such savings association is located or at the

rate allowed by the laws of the State in which such savings

association is located, whichever is greater.

(2) If the rate prescribed in paragraph (1) exceeds the rate such

savings association would be permitted to charge in the absence of

this subsection, the receiving or charging a greater rate of

interest than that prescribed by paragraph (1), when knowingly

done, shall be deemed a forfeiture of the entire interest which the

extension of credit carries with it, or which has been agreed to be

paid thereon. If such greater rate of interest has been paid, the

person who paid it may recover, in a civil action commenced in a

court of appropriate jurisdiction not later than 2 years after the

date of such payment, an amount equal to twice the amount of the

interest paid from the savings association taking or receiving such

interest.

(h) Form and maturity of securities

No savings association shall -

(1) issue securities which guarantee a definite maturity except

with the specific approval of the Director, or

(2) issue any securities the form of which has not been

approved by the Director.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 4, as added Pub. L. 101-73, title III,

Sec. 301, Aug. 9, 1989, 103 Stat. 280.)

-MISC1-

PRIOR PROVISIONS

A prior section 1463, acts June 13, 1933, ch. 64, Sec. 4, 48

Stat. 129; Apr. 27, 1934, ch. 168, Sec. 1(a), 2-4, 13, 48 Stat.

643-645, 647; June 27, 1934, ch. 847, title V, Sec. 506, 508(b), 48

Stat. 1263, 1264; May 28, 1935, ch. 150, Sec. 10-17(a), 49 Stat.

296, 297; Aug. 11, 1939, ch. 684, 53 Stat. 1403; Oct. 24, 1942, ch.

621, 56 Stat. 986; June 30, 1947, ch. 166, title II, Sec. 206(f),

61 Stat. 206, related to creation of Home Owners' Loan Corporation,

for appointment and compensation of its board of directors, for

appointment and compensation of its employees, and for other

powers, prior to repeal by Pub. L. 89-554, Sec. 8(a), Sept. 6,

1966, 80 Stat. 648.

A prior section 1463a, act Apr. 27, 1934, ch. 168, Sec. 1(b), 48

Stat. 644, provided that amendments made to subsec. (c) of former

section 1463 of this title, except with respect to refunding, by

act Apr. 27, 1934, should not apply to any bonds prior to Apr. 27,

1934, issued under subsec. (c), or to any bonds thereafter issued

in compliance with commitments of the Corporation outstanding on

Apr. 27, 1934.

A prior section 1463b, act Apr. 27, 1934, ch. 168, Sec. 9, 48

Stat. 646, related to purchase of obligations of, and loans to,

Federal Home Loan Banks, prior to repeal by act May 28, 1935, ch.

150, Sec. 17(b), 49 Stat. 297.

PRESERVING MINORITY OWNERSHIP OF MINORITY FINANCIAL INSTITUTIONS

Section 308 of Pub. L. 101-73 provided that:

''(a) Consultation on Methods. - The Secretary of the Treasury

shall consult with the Director of the Office of Thrift Supervision

and the Chairperson of the Board of Directors of the Federal

Deposit Insurance Corporation on methods for best achieving the

following goals:

''(1) Preserving the present number of minority depository

institutions.

''(2) Preserving their minority character in cases involving

mergers or acquisition of a minority depository institution by

using general preference guidelines in the following order:

''(A) Same type of minority depository institution in the

same city.

''(B) Same type of minority depository institution in the

same State.

''(C) Same type of minority depository institution

nationwide.

''(D) Any type of minority depository institution in the same

city.

''(E) Any type of minority depository institution in the same

State.

''(F) Any type of minority depository institution nationwide.

''(G) Any other bidders.

''(3) Providing technical assistance to prevent insolvency of

institutions not now insolvent.

''(4) Promoting and encouraging creation of new minority

depository institutions.

''(5) Providing for training, technical assistance, and

educational programs.

''(b) Definitions. - For purposes of this section -

''(1) Minority financial institution. - The term 'minority

depository institution' means any depository institution that -

''(A) if a privately owned institution, 51 percent is owned

by one or more socially and economically disadvantaged

individuals;

''(B) if publicly owned, 51 percent of the stock is owned by

one or more socially and economically disadvantaged

individuals; and

''(C) in the case of a mutual institution where the majority

of the Board of Directors, account holders, and the community

which it services is predominantly minority.

''(2) Minority. - The term 'minority' means any black American,

Native American, Hispanic American, or Asian American.''

-TRANS-

ABOLITION OF HOME OWNERS' LOAN CORPORATION

Act June 30, 1953, ch. 170, Sec. 21, 67 Stat. 126, provided for

dissolution and abolition of Home Owners' Loan Corporation

established by former section 1463 of this title.

-CITE-

12 USC Sec. 1464 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1464. Federal savings associations

-STATUTE-

(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.

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;

(D) may have a fixed or variable dividend rate.

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.

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.), (FOOTNOTE 1) or

(FOOTNOTE 1) See References in Text note below.

(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.

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.

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 (FOOTNOTE 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.

(FOOTNOTE 2) So in original.

(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.

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),

(FOOTNOTE 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.

(FOOTNOTE 3) See References in Text note below.

(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) (FOOTNOTE

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

(FOOTNOTE 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

(FOOTNOTE 4) So in original.

(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.

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.

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).

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

''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.

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,

(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.

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.

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.

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

(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

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;

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.

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.

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 following

The 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.

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.

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;

(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 following

The 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).

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.

(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.

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;

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.

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 (FOOTNOTE 5)

of the evidence that an error was inadvertent and unintentional

and that a report was inadvertently transmitted or published

late.

(FOOTNOTE 5) So in original. Probably should be

''preponderance''.

(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.

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 (FOOTNOTE 6)

involved in, the commission of the money laundering offense of

which the association was found guilty.

(FOOTNOTE 6) So in original. Probably should be ''or were''.

(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.

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)).

-SOURCE-

(June 13, 1933, ch. 64, Sec. 5, 48 Stat. 132; Apr. 27, 1934, ch.

168, Sec. 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,

Sec. 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, Sec.

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, Sec. 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, Sec. 702-706, title VIII, Sec.

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, Sec. 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, Sec. 107(a)(3),

(c)(3), (d)(3), (e)(3), 111(c), title II, Sec. 208(b), title XII,

Sec. 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, Sec. 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, Sec. 304, 307, title IV, Sec. 401-404,

407(a), 408, Mar. 31, 1980, 94 Stat. 146, 147, 151, 155, 156,

158-160; Pub. L. 97-320, title I, Sec. 112, 114(b), (c), 121,

141(a)(2), (5), title II, Sec. 202(b), title III, Sec. 311-313,

321-325, 328-331, 334, 351, title IV, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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.)

-REFTEXT-

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 (Sec. 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.

-MISC2-

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.

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, Sec. 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, Sec. 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

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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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-

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.

-MISC4-

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.

-SECREF-

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.

-CITE-

12 USC Sec. 1465 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1465. Repealed. Pub. L. 106-569, title XII, Sec. 1201(a), Dec.

27, 2000, 114 Stat. 3032

-MISC1-

Section, acts June 13, 1933, ch. 64, Sec. 6, 48 Stat. 134; Apr.

27, 1934, ch. 168, Sec. 11, 48 Stat. 647; May 28, 1935, ch. 150,

Sec. 19, 49 Stat. 297; Pub. L. 101-73, title III, Sec. 301, Aug. 9,

1989, 103 Stat. 313, related to liquid asset requirements.

-CITE-

12 USC Sec. 1466 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1466. Applicability

-STATUTE-

The provisions of this chapter shall apply to the United States

and to Puerto Rico, Guam, and the Virgin Islands.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 7, 48 Stat. 134; July 14, 1952, ch.

723, Sec. 10(b), 66 Stat. 604; Pub. L. 86-70, Sec. 9(b), June 25,

1959, 73 Stat. 142; Pub. L. 86-624, Sec. 5(b), July 12, 1960, 74

Stat. 411; Pub. L. 101-73, title III, Sec. 301, Aug. 9, 1989, 103

Stat. 315.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-73 amended section generally. Prior to

amendment, section read as follows: ''The provisions of this

chapter shall apply to the continental United States (including

Alaska), to the State of Hawaii, and to Puerto Rico, Guam and the

Virgin Islands.''

1960 - Pub. L. 86-624 substituted ''State of Hawaii'' for

''Territory of Hawaii''.

1959 - Pub. L. 86-70 substituted ''continental United States

(including Alaska), to the Territory of Hawaii'' for ''continental

United States, to the Territories of Alaska and Hawaii''.

1952 - Act July 14, 1952, inserted ''Guam''.

-CITE-

12 USC Sec. 1466a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1466a. District associations

-STATUTE-

(a) In general

The Director shall, with respect to all incorporated or

unincorporated building, building or loan, building and loan, or

homestead associations, and similar institutions, of or transacting

or doing business in the District of Columbia, or maintaining any

office in the District of Columbia (other than Federal savings

associations), have the same powers and functions as to

examination, operation, and regulation as the Director has with

respect to Federal savings associations.

(b) Additional powers

Any such association or institution incorporated under the laws

of, or organized in, the District of Columbia shall have in

addition to any existing statutory authority such statutory

authority as is vested in Federal savings associations.

Charters, certificates of incorporation, articles of

incorporation, constitutions, bylaws, or other organic documents of

associations or institutions referred to in subsection (b) of this

section may, without regard to anything contained therein or

otherwise, be amended in such manner and to such extent and upon

such votes if any as the Director may by regulation or otherwise

provide.

(d) Limitation

Nothing in this section shall cause, or permit the Director to

cause, District of Columbia associations to be or become Federal

savings associations, or require the Director to impose on District

of Columbia associations the same regulations as are imposed on

Federal savings associations.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 8, as added Pub. L. 91-609, title IX,

Sec. 913, Dec. 31, 1970, 84 Stat. 1815; amended Pub. L. 101-73,

title III, Sec. 301, Aug. 9, 1989, 103 Stat. 315.)

-MISC1-

PRIOR PROVISIONS

A prior section 8 of act June 13, 1933, ch. 64, 48 Stat. 134, was

classified to section 1467 of this title, prior to repeal by act

June 25, 1948, ch. 645, Sec. 21, 62 Stat. 862, eff. Sept. 1, 1948.

AMENDMENTS

1989 - Pub. L. 101-73 amended section generally, substituting

provisions relating to Director and Federal savings associations

for former provisions relating to Federal Home Loan Bank Board and

Federal savings and loan associations.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 15 section 78c.

-CITE-

12 USC Sec. 1467 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1467. Examination fees

-STATUTE-

(a) Examination of savings associations

The cost of conducting examinations of savings associations

pursuant to section 1464(d) of this title shall be assessed by the

Director against each such savings association as the Director

deems necessary or appropriate.

(b) Examination of affiliates

The cost of conducting examinations of affiliates of savings

associations pursuant to this chapter may be assessed by the

Director against each affiliate that is examined as the Director

deems necessary or appropriate.

to pay

(1) In general

Subject to paragraph (2), if any affiliate of any savings

association -

(A) refuses to pay any assessment under subsection (b) of

this section; or

(B) fails to pay any such assessment before the end of the

60-day period beginning on the date of the assessment,

the Director may assess such cost against, and collect such cost

from, such savings association.

(2) Affiliate of more than 1 savings association

If any affiliate referred to in paragraph (1) is an affiliate

of more than 1 savings association, the assessment with respect

to the affiliate against, and collected from, any affiliated

savings association in such proportions as the Director may

prescribe.

(d) Civil money penalty for affiliate's refusal to cooperate

(1) Penalty imposed

If any affiliate of any savings association -

(A) refuses to permit any examiner appointed by the Director

to make an examination; or

(B) refuses to provide any information required to be

disclosed in the course of any examination,

the savings association shall forfeit and pay a civil penalty of

not more than $5,000 for each day that any such refusal

continues.

(2) Assessment and collection

Any penalty imposed under paragraph (1) shall be assessed and

collected by the Director, in the manner provided in section

8(i)(2) of the Federal Deposit Insurance Act (12 U.S.C.

1818(i)(2)).

(e) Regulations

Only the Director may prescribe regulations with respect to -

(1) the computation of, and the assessment for, the cost of

conducting examinations pursuant to this section; and

(2) the collection and use of such assessments and any fees

under this section.

Such regulations may establish formulas to determine a fee or

schedule of fees to cover the costs of examinations and also to

cover the cost of processing applications, filings, notices, and

requests for approvals by the Director or the Director's designee.

(f) Collection through FDIC or Federal home loan banks

The Corporation or the Federal home loan banks shall, upon

request of and by agreement with the Director, collect fees and

assessments on behalf of the Director and be reimbursed for the

actual cost of collection.

(g) Costs of other examinations

(1) Examination of fiduciary activities

In addition to any assessment imposed pursuant to subsection

(a) of this section, the cost of conducting examinations of

fiduciary activities of savings associations which exercise

fiduciary powers (including savings associations or similar

institutions in the District of Columbia) shall be assessed by

the Director against such savings associations (or similar

institutions).

(2) Examinations in excess of 2 per calendar year

If any savings association or affiliate of a savings

association is examined by the Director, or the Corporation, as

the case may be, more than 2 times in any calendar year, the cost

of conducting such additional examinations shall be assessed, in

addition to any assessment imposed pursuant to subsection (a) of

this section, by the Director or the Corporation, as the case may

be, against such savings association or affiliate.

(h) Additional information

Any savings association and any affiliate of any savings

association shall provide the Director with access to any

information or report with respect to any examination made by any

public regulatory authority and furnish any additional information

with respect thereto as the Director may require.

(i) Treatment of examination assessments

(1) Deposits

Amounts received by the Director from assessments under this

section (other than an assessment under subsection (d)(2) of this

section) or section 1467a(b)(4) of this title may be deposited in

the manner provided in section 5234 of the Revised Statutes (12

U.S.C. 192) with respect to assessments by the Comptroller of the

Currency.

(2) Assessments are not Government funds

The amounts received by the Director from any assessment under

this section shall not be construed to be Government or public

funds or appropriated money.

(3) Assessments are not subject to apportionment of funds

Notwithstanding any other provision of law, the amounts

received by the Director from any assessment under this section

shall not be subject to apportionment for the purpose of chapter

15 of title 31 or under any other authority.

(j) Processing fee

The Director may, in the Director's sole discretion, assess

against any person that submits to the Director an application,

filing, notice, or request a fee to cover the cost of processing

such submission.

(k) Fees for examinations and supervisory activities

The Director may assess against institutions for which the

Director is the appropriate Federal banking agency, as defined in

section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813),

fees to fund the direct and indirect expenses of the Office as the

Director deems necessary or appropriate. The fees may be imposed

more frequently than annually at the discretion of the Director.

(l) Working capital

The Director is authorized to impose fees and assessments

pursuant to subsections (a), (b), (e), and (k) of this section, in

excess of actual expenses for any given year, to permit the

Director to maintain a working capital fund. The Director shall

remit to the payors of such fees and assessments any funds

collected in excess of what he deems necessary to maintain such

working capital fund.

(m) Use of funds

The Director is authorized to use the combined resources retained

through fees and assessments imposed pursuant to this section to

pay all direct and indirect salary and administrative expenses of

the Office, including contracts and purchases of property and

services, and the direct and indirect expenses of the examinations

and supervisory activities of the Office.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 9, as added Pub. L. 100-86, title IV,

Sec. 402(a), Aug. 10, 1987, 101 Stat. 605; amended Pub. L. 101-73,

title III, Sec. 301, Aug. 9, 1989, 103 Stat. 316; Pub. L. 102-242,

title I, Sec. 114(c), Dec. 19, 1991, 105 Stat. 2248.)

-MISC1-

PRIOR PROVISIONS

A prior section 1467, acts June 13, 1933, ch. 64, Sec. 8, 48

Stat. 134; Apr. 27, 1934, ch. 168, Sec. 12, 48 Stat. 647; May 28,

1935, ch. 150, Sec. 20, 21, 49 Stat. 298, related to penalties,

prior to repeal by act June 25, 1948, ch. 645, Sec. 21, 62 Stat.

862, eff. Sept. 1, 1948. See sections 223, 433, 493, 657, 1006,

and 1014 of Title 18, Crimes and Criminal Procedure.

A prior section 9 of act June 13, 1933, was renumbered section 11

and is classified to section 1468 of this title.

AMENDMENTS

1991 - Subsec. (a). Pub. L. 102-242, Sec. 114(c)(1), added

subsec. (a) and struck out former subsec. (a) which read as

follows: ''The cost of conducting examinations of savings

associations pursuant to section 1464(d) of this title shall be

assessed by the Director against each such savings association in

proportion to the assets or resources of the savings association.''

Subsec. (b). Pub. L. 102-242, Sec. 114(c)(1), added subsec. (b)

and struck out former subsec. (b) which read as follows: ''The cost

of conducting examinations of affiliates of savings associations

pursuant to this chapter may be assessed by the Director against

each affiliate which is examined in proportion to the assets or

resources held by the affiliate on the date of any such

examination.''

Subsec. (k). Pub. L. 102-242, Sec. 114(c)(2), amended subsec. (k)

generally. Prior to amendment, subsec. (k) read as follows: ''The

Director may assess against institutions for which the Director is

the appropriate Federal banking agency, within the meaning of

section 3 of the Federal Deposit Insurance Act, fees to fund the

direct and indirect expenses of the Office. Such fees shall be

imposed in proportion of the assets or resources of the

institutions. The fees may be imposed more frequently than

annually at the discretion of the Director. The annual rate of such

fees shall be the same for all institutions subject to such fees.''

1989 - Pub. L. 101-73 amended section generally, substituting

subsecs. (a) to (m) relating to examination fees for former

subsecs. (a) to (f) relating to accounting principles and other

standards and requirements.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-73 relating to civil penalties

applicable with respect to violations committed and activities

engaged in after Aug. 9, 1989, except that the increased maximum

civil penalties of $5,000 and $25,000 per violation or per day may

apply to such violations or activities committed or engaged in

before such date with respect to an institution if such violations

or activities (1) are not already subject to a notice issued by the

appropriate Federal banking agency or the Board (initiating an

administrative proceeding); and (2) occurred after the completion

of the last report of examination of the institution by the

appropriate Federal banking agency (as defined in section 1813 of

this title) occurring before Aug. 9, 1989, see section 305(c) of

Pub. L. 101-73, set out as a note under section 1461 of this title.

SUBMISSION OF PROPOSED REGULATIONS TO CONGRESS

Section 402(c) of Pub. L. 100-86 provided that: ''Not later than

the end of the 90-day period beginning on the date of the enactment

of this Act (Aug. 10, 1987) -

''(1) the Federal Home Loan Bank Board shall submit a copy of

the proposed regulations required to be prescribed under the

amendment made by subsection (a) (enacting this section) to the

Congress; and

''(2) the Federal Savings and Loan Insurance Corporation shall

submit a copy of the proposed regulations required to be

prescribed under the amendment made by subsection (b) (enacting

section 1730h of this title) to the Congress.''

EFFECTIVE DATE OF REGULATIONS

Section 402(d) of Pub. L. 100-86 provided that:

''(1) In general. - Except as provided in paragraph (2), any

regulation required to be prescribed under the amendment made by

subsections (a) and (b) (enacting sections 1467 and 1730h of this

title) shall be implemented not later than the end of the 150-day

period beginning on the date of the enactment of this Act (Aug. 10,

1987).

''(2) Uniform gaap accounting standards. -

''(A) In general. - Except as provided in subparagraph (B), the

regulations required to be prescribed pursuant to subsection (b)

of the amendments made by subsections (a) and (b) of this section

shall take effect on December 31, 1987.

''(B) Compliance at a later date. - If any association or

insured institution demonstrates to the satisfaction of the Home

Loan Bank Board or the Federal Savings and Loan Insurance

Corporation, as the case may be, that it is not feasible for such

association or institution to achieve compliance with the

regulations referred to in subparagraph (A) by the date contained

in such subparagraph, the Board or Corporation may approve a plan

submitted by an association or insured institution which allows

such association or institution to comply with such regulations

at a later date to the extent such later date is the earlier of -

''(i) the date by which, in the determination of the Board or

Corporation, it is feasible for such association or insured

institution to achieve compliance with such regulations; or

''(ii) December 31, 1993.''

SUNSET AND SAVINGS PROVISION

Subsec. (a)(2), (3), (5) ceases to be effective on date that

notice of completion of all net new borrowing by Financing

Corporation is published in Federal Register (Mar. 30, 1992, 57

F.R. 10763), with such termination not to be construed to affect or

limit any authority of Federal Home Loan Bank Board or Federal

Savings and Loan Insurance Corporation to prescribe any regulation

or engage in any activity with respect to any association or

insured institution under any other provision of law, see section

416 of Pub. L. 100-86, set out as a note under section 1441 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1817 of this title.

-CITE-

12 USC Sec. 1467a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1467a. Regulation of holding companies

-STATUTE-

(a) Definitions

(1) In general

As used in this section, unless the context otherwise requires

(A) Savings association

The term ''savings association'' includes a savings bank or

cooperative bank which is deemed by the Director to be a

savings association under subsection (l) of this section.

(B) Uninsured institution

The term ''uninsured institution'' means any depository

institution the deposits of which are not insured by the

Federal Deposit Insurance Corporation.

The term ''company'' means any corporation, partnership,

trust, joint-stock company, or similar organization, but does

not include the Federal Deposit Insurance Corporation, the

Resolution Trust Corporation, any Federal home loan bank, or

any company the majority of the shares of which is owned by the

United States or any State, or by an instrumentality of the

United States or any State.

(D) Savings and loan holding company

(i) In general

Except as provided in clause (ii), the term ''savings and

loan holding company'' means any company that directly or

indirectly controls a savings association or that controls

any other company that is a savings and loan holding company.

(ii) Exclusion

The term ''savings and loan holding company'' does not

include a bank holding company that is registered under, and

subject to, the Bank Holding Company Act of 1956 (12 U.S.C.

1841 et seq.), or to any company directly or indirectly

controlled by such company (other than a savings

association).

(E) Multiple savings and loan holding company

The term ''multiple savings and loan holding company'' means

any savings and loan holding company which directly or

indirectly controls 2 or more savings associations.

(F) Diversified savings and loan holding company

The term ''diversified savings and loan holding company''

means any savings and loan holding company whose subsidiary

savings association and related activities as permitted under

paragraph (2) of subsection (c) of this section represented, on

either an actual or a pro forma basis, less than 50 percent of

its consolidated net worth at the close of its preceding fiscal

year and of its consolidated net earnings for such fiscal year,

as determined in accordance with regulations issued by the

Director.

(G) Subsidiary

The term ''subsidiary'' has the same meaning as in section 3

of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(H) Affiliate

The term ''affiliate'' of a savings association means any

person which controls, is controlled by, or is under common

control with, such savings association.

(I) Bank holding company

The terms ''bank holding company'' and ''bank'' have the

meanings given to such terms in section 2 of the Bank Holding

Company Act of 1956 (12 U.S.C. 1841).

(J) Acquire

The term ''acquire'' has the meaning given to such term in

section 13(f)(8) of the Federal Deposit Insurance Act (12

U.S.C. 1823(f)(8)).

(2) Control

For purposes of this section, a person shall be deemed to have

control of -

(A) a savings association if the person directly or

indirectly or acting in concert with one or more other persons,

or through one or more subsidiaries, owns, controls, or holds

with power to vote, or holds proxies representing, more than 25

percent of the voting shares of such savings association, or

controls in any manner the election of a majority of the

directors of such association;

(B) any other company if the person directly or indirectly or

acting in concert with one or more other persons, or through

one or more subsidiaries, owns, controls, or holds with power

to vote, or holds proxies representing, more than 25 percent of

the voting shares or rights of such other company, or controls

in any manner the election or appointment of a majority of the

directors or trustees of such other company, or is a general

partner in or has contributed more than 25 percent of the

capital of such other company;

(D) a savings association or any other company if the

Director determines, after reasonable notice and opportunity

for hearing, that such person directly or indirectly exercises

a controlling influence over the management or policies of such

association or other company.

(3) Exclusions

Notwithstanding any other provision of this subsection, the

term ''savings and loan holding company'' does not include -

(A) any company by virtue of its ownership or control of

voting shares of a savings association or a savings and loan

holding company acquired in connection with the underwriting of

securities if such shares are held only for such period of time

(not exceeding 120 days unless extended by the Director) as

will permit the sale thereof on a reasonable basis; and

(B) any trust (other than a pension, profit-sharing,

shareholders', voting, or business trust) which controls a

savings association or a savings and loan holding company if

such trust by its terms must terminate within 25 years or not

later than 21 years and 10 months after the death of

individuals living on the effective date of the trust, and is

(i) in existence on June 26, 1967, or (ii) a testamentary trust

created on or after June 26, 1967.

(4) Special rule relating to qualified stock issuance

No savings and loan holding company shall be deemed to control

a savings association solely by reason of the purchase by such

savings and loan holding company of shares issued by such savings

association, or issued by any savings and loan holding company

(other than a bank holding company) which controls such savings

association, in connection with a qualified stock issuance if

such purchase is approved by the Director under subsection

(q)(1)(D) of this section, unless the acquiring savings and loan

holding company, directly or indirectly, or acting in concert

with 1 or more other persons, or through 1 or more subsidiaries,

owns, controls, or holds with power to vote, or holds proxies

representing, more than 15 percent of the voting shares of such

savings association or holding company.

(b) Registration and examination

(1) In general

Within 90 days after becoming a savings and loan holding

company, each savings and loan holding company shall register

with the Director on forms prescribed by the Director, which

shall include such information, under oath or otherwise, with

respect to the financial condition, ownership, operations,

management, and intercompany relationships of such holding

company and its subsidiaries, and related matters, as the

Director may deem necessary or appropriate to carry out the

purposes of this section. Upon application, the Director may

extend the time within which a savings and loan holding company

shall register and file the requisite information.

(2) Reports

Each savings and loan holding company and each subsidiary

thereof, other than a savings association, shall file with the

Director, and the regional office of the Director of the district

in which its principal office is located, such reports as may be

required by the Director. Such reports shall be made under oath

or otherwise, and shall be in such form and for such periods, as

the Director may prescribe. Each report shall contain such

information concerning the operations of such savings and loan

holding company and its subsidiaries as the Director may require.

(3) Books and records

Each savings and loan holding company shall maintain such books

and records as may be prescribed by the Director.

(4) Examinations

Each savings and loan holding company and each subsidiary

thereof (other than a bank) shall be subject to such examinations

as the Director may prescribe. The cost of such examinations

shall be assessed against and paid by such holding company.

Examination and other reports may be furnished by the Director to

the appropriate State supervisory authority. The Director shall,

to the extent deemed feasible, use for the purposes of this

subsection reports filed with or examinations made by other

Federal agencies or the appropriate State supervisory authority.

(5) Agent for service of process

The Director may require any savings and loan holding company,

or persons connected therewith if it is not a corporation, to

execute and file a prescribed form of irrevocable appointment of

agent for service of process.

(6) Release from registration

The Director may at any time, upon the Director's own motion or

upon application, release a registered savings and loan holding

company from any registration theretofore made by such company,

if the Director determines that such company no longer has

control of any savings association.

(1) Prohibited activities

Except as otherwise provided in this subsection, no savings and

loan holding company and no subsidiary which is not a savings

association shall -

(A) engage in any activity or render any service for or on

behalf of a savings association subsidiary for the purpose or

with the effect of evading any law or regulation applicable to

such savings association;

(B) commence any business activity, other than the activities

described in paragraph (2); or

described in paragraph (2), after the end of the 2-year period

beginning on the date on which such company received approval

under subsection (e) of this section to become a savings and

loan holding company subject to the limitations contained in

this subparagraph.

(2) Exempt activities

The prohibitions of subparagraphs (B) and (C) of paragraph (1)

shall not apply to the following business activities of any

savings and loan holding company or any subsidiary (of such

company) which is not a savings association:

(A) Furnishing or performing management services for a

savings association subsidiary of such company.

(B) Conducting an insurance agency or escrow business.

acquired from a savings association subsidiary of such company.

(D) Holding or managing properties used or occupied by a

savings association subsidiary of such company.

(E) Acting as trustee under deed of trust.

(F) Any other activity -

(i) which the Board of Governors of the Federal Reserve

System, by regulation, has determined to be permissible for

bank holding companies under section 4(c) of the Bank Holding

Company Act of 1956 (12 U.S.C. 1843(c)), unless the Director,

by regulation, prohibits or limits any such activity for

savings and loan holding companies; or

(ii) in which multiple savings and loan holding companies

were authorized (by regulation) to directly engage on March

5, 1987.

(G) In the case of a savings and loan holding company,

purchasing, holding, or disposing of stock acquired in

connection with a qualified stock issuance if the purchase of

such stock by such savings and loan holding company is approved

by the Director pursuant to subsection (q)(1)(D) of this

section.

(3) Certain limitations on activities not applicable to certain

holding companies

Notwithstanding paragraphs (4) and (6) of this subsection, the

limitations contained in subparagraphs (B) and (C) of paragraph

(1) shall not apply to any savings and loan holding company (or

any subsidiary of such company) which controls -

(A) only 1 savings association, if the savings association

subsidiary of such company is a qualified thrift lender (as

determined under subsection (m) of this section); or

(B) more than 1 savings association, if -

(i) all, or all but 1, of the savings association

subsidiaries of such company were initially acquired by the

company or by an individual who would be deemed to control

such company if such individual were a company -

(I) pursuant to an acquisition under section 13(c) or

13(k) of the Federal Deposit Insurance Act (12 U.S.C.

1823(c) or (k)) or section 408(m) (FOOTNOTE 1) of the

National Housing Act (12 U.S.C. 1730a(m)); or

(FOOTNOTE 1) See References in Text note below.

(II) pursuant to an acquisition in which assistance was

continued to a savings association under section 13(i) of

the Federal Deposit Insurance Act; and

(ii) all of the savings association subsidiaries of such

company are qualified thrift lenders (as determined under

subsection (m) of this section).

(4) Prior approval of certain new activities required

(A) In general

No savings and loan holding company and no subsidiary which

is not a savings association shall commence, either de novo or

by an acquisition (in whole or in part) of a going concern, any

activity described in paragraph (2)(F)(i) of this subsection

without the prior approval of the Director.

(B) Factors to be considered by Director

In considering any application under subparagraph (A) by any

savings and loan holding company or any subsidiary of any such

company which is not a savings association, the Director shall

consider -

(i) whether the performance of the activity described in

such application by the company or the subsidiary can

reasonably be expected to produce benefits to the public

(such as greater convenience, increased competition, or gains

in efficiency) that outweigh possible adverse effects of such

activity (such as undue concentration of resources, decreased

or unfair competition, conflicts of interest, or unsound

financial practices);

(ii) the managerial resources of the companies involved;

and

(iii) the adequacy of the financial resources, including

capital, of the companies involved.

activities

In prescribing any regulation or considering any application

under this paragraph, the Director may differentiate between

activities commenced de novo and activities commenced by the

acquisition, in whole or in part, of a going concern.

(D) Approval or disapproval by order

The approval or disapproval of any application under this

paragraph by the Director shall be made in an order issued by

the Director containing the reasons for such approval or

disapproval.

(5) Grace period to achieve compliance

If any savings association referred to in paragraph (3) fails

to maintain the status of such association as a qualified thrift

lender, the Director may allow, for good cause shown, any company

that controls such association (or any subsidiary of such company

which is not a savings association) up to 3 years to comply with

the limitations contained in paragraph (1)(C).

(6) Special provisions relating to certain companies affected by

1987 amendments

(A) Exception to 2-year grace period for achieving compliance

Notwithstanding paragraph (1)(C), any company which received

approval under subsection (e) of this section to acquire

control of a savings association between March 5, 1987, and

August 10, 1987, shall not continue any business activity other

than an activity described in paragraph (2) after August 10,

1987.

(B) Exemption for activities lawfully engaged in before March

5, 1987

Notwithstanding paragraph (1)(C) and subject to subparagraphs

received approval, before March 5, 1987, under subsection (e)

of this section to acquire control of a savings association may

engage, directly or through any subsidiary (other than a

savings association subsidiary of such company), in any

activity in which such company or such subsidiary was lawfully

engaged on such date.

The exemption provided under subparagraph (B) for activities

engaged in by any savings and loan holding company or a

subsidiary of such company (which is not a savings association)

which would otherwise be prohibited under paragraph (1)(C)

shall terminate with respect to such activities of such company

or subsidiary upon the occurrence (after August 10, 1987) of

any of the following:

(i) The savings and loan holding company acquires control

of a bank or an additional savings association (other than a

savings association acquired pursuant to section 13(c) or

13(k) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)

or (k)) or section 406(f) or 408(m) (FOOTNOTE 1) of the

National Housing Act (12 U.S.C. 1729(f) or 1730a(m))).

(ii) Any savings association subsidiary of the savings and

loan holding company fails to qualify 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)).

(iii) The savings and loan holding company engages in any

business activity -

(I) which is not described in paragraph (2); and

(II) in which it was not engaged on March 5, 1987.

(iv) Any savings association subsidiary of the savings and

loan holding company increases the number of locations from

which such savings association conducts business after March

5, 1987 (other than an increase which occurs in connection

with a transaction under section 13(c) or (k) of the Federal

Deposit Insurance Act or section 408(m) (FOOTNOTE 2) of the

National Housing Act.

(FOOTNOTE 2) See References in Text note below.

(v) Any savings association subsidiary of the savings and

loan holding company permits any overdraft (including an

intraday overdraft), or incurs any such overdraft in its

account at a Federal Reserve bank, on behalf of an affiliate,

unless such overdraft is the result of an inadvertent

computer or accounting error that is beyond the control of

both the savings association subsidiary and the affiliate.

(D) Order by Director to terminate subparagraph (B) activity

Any activity described in subparagraph (B) may also be

terminated by the Director, after opportunity for hearing, if

the Director determines, having due regard for the purposes of

this title, (FOOTNOTE 3) that such action is necessary to

prevent conflicts of interest or unsound practices or is in the

public interest.

(FOOTNOTE 3) So in original. Act June 13, 1933, which is

classified to this chapter, does not contain titles.

(7) Foreign savings and loan holding company

Notwithstanding any other provision of this section, any

savings and loan holding company organized under the laws of a

foreign country as of June 1, 1984 (including any subsidiary

thereof which is not a savings association), which controls a

single savings association on August 10, 1987, shall not be

subject to this subsection with respect to any activities of such

holding company which are conducted exclusively in a foreign

country.

(8) Exemption for bank holding companies

Except for paragraph (1)(A), this subsection shall not apply to

any company that is treated as a bank holding company for

purposes of section 4 of the Bank Holding Company Act of 1956 (12

U.S.C. 1843), or any of its subsidiaries.

(9) Prevention of new affiliations between S&L holding companies

and commercial firms

(A) In general

Notwithstanding paragraph (3), no company may directly or

indirectly, including through any merger, consolidation, or

other type of business combination, acquire control of a

savings association after May 4, 1999, unless the company is

engaged, directly or indirectly (including through a subsidiary

other than a savings association), only in activities that are

permitted -

(i) under paragraph (1)(C) or (2) of this subsection; or

(ii) for financial holding companies under section 4(k) of

the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)).

(B) Prevention of new commercial affiliations

Notwithstanding paragraph (3), no savings and loan holding

company may engage directly or indirectly (including through a

subsidiary other than a savings association) in any activity

other than as described in clauses (i) and (ii) of subparagraph

(A).

companies

Subparagraphs (A) and (B) do not apply with respect to any

company that was a savings and loan holding company on May 4,

1999, or that becomes a savings and loan holding company

pursuant to an application pending before the Office on or

before that date, and that -

(i) meets and continues to meet the requirements of

paragraph (3); and

(ii) continues to control not fewer than 1 savings

association that it controlled on May 4, 1999, or that it

acquired pursuant to an application pending before the Office

on or before that date, or the successor to such savings

association.

(D) Corporate reorganizations permitted

This paragraph does not prevent a transaction that -

(i) involves solely a company under common control with a

savings and loan holding company from acquiring, directly or

indirectly, control of the savings and loan holding company

or any savings association that is already a subsidiary of

the savings and loan holding company; or

(ii) involves solely a merger, consolidation, or other type

of business combination as a result of which a company under

common control with the savings and loan holding company

acquires, directly or indirectly, control of the savings and

loan holding company or any savings association that is

already a subsidiary of the savings and loan holding company.

(E) Authority to prevent evasions

The Director may issue interpretations, regulations, or

orders that the Director determines necessary to administer and

carry out the purpose and prevent evasions of this paragraph,

including a determination that, notwithstanding the form of a

transaction, the transaction would in substance result in a

company acquiring control of a savings association.

(F) Preservation of authority for family trusts

Subparagraphs (A) and (B) do not apply with respect to any

trust that becomes a savings and loan holding company with

respect to a savings association, if -

(i) not less than 85 percent of the beneficial ownership

interests in the trust are continuously owned, directly or

indirectly, by or for the benefit of members of the same

family, or their spouses, who are lineal descendants of

common ancestors who controlled, directly or indirectly, such

savings association on May 4, 1999, or a subsequent date,

pursuant to an application pending before the Office on or

before May 4, 1999; and

(ii) at the time at which such trust becomes a savings and

loan holding company, such ancestors or lineal descendants,

or spouses of such descendants, have directly or indirectly

controlled the savings association continuously since May 4,

1999, or a subsequent date, pursuant to an application

pending before the Office on or before May 4, 1999.

(d) Transactions with affiliates

Transactions between any subsidiary savings association of a

savings and loan holding company and any affiliate (of such savings

association subsidiary) shall be subject to the limitations and

prohibitions specified in section 1468 of this title.

(e) Acquisitions

(1) In general

It shall be unlawful for -

(A) any savings and loan holding company directly or

indirectly, or through one or more subsidiaries or through one

or more transactions -

(i) to acquire, except with the prior written approval of

the Director, the control of a savings association or a

savings and loan holding company, or to retain the control of

such an association or holding company acquired or retained

in violation of this section as heretofore or hereafter in

effect;

(ii) to acquire, except with the prior written approval of

the Director, by the process of merger, consolidation, or

purchase of assets, another savings association or a savings

and loan holding company, or all or substantially all of the

assets of any such association or holding company;

(iii) to acquire, by purchase or otherwise, or to retain,

except with the prior written approval of the Director, more

than 5 percent of the voting shares of a savings association

not a subsidiary, or of a savings and loan holding company

not a subsidiary, or in the case of a multiple savings and

loan holding company (other than a company described in

subsection (c)(8) of this section), to acquire or retain, and

the Director may not authorize acquisition or retention of,

more than 5 percent of the voting shares of any company not a

subsidiary which is engaged in any business activity other

than the activities specified in subsection (c)(2) of this

section. This clause shall not apply to shares of a savings

association or of a savings and loan holding company -

(I) held as a bona fide fiduciary (whether with or

without the sole discretion to vote such shares);

(II) held temporarily pursuant to an underwriting

commitment in the normal course of an underwriting

business;

(III) held in an account solely for trading purposes;

(IV) over which no control is held other than control of

voting rights acquired in the normal course of a proxy

solicitation;

(V) acquired in securing or collecting a debt previously

contracted in good faith, during the 2-year period

beginning on the date of such acquisition or for such

additional time (not exceeding 3 years) as the Director may

permit if the Director determines that such an extension

will not be detrimental to the public interest;

(VI) acquired under section 408(m) (FOOTNOTE 4) of the

National Housing Act (12 U.S.C. 1730a(m)) or section 13(k)

of the Federal Deposit Insurance Act (12 U.S.C. 1823(k));

(FOOTNOTE 4) See References in Text note below.

(VII) held by any insurance company, as defined in

section 2(a)(17) of the Investment Company Act of 1940 (15

U.S.C. 80a-2(a)(17)), except as provided in paragraph (6);

(VIII) acquired pursuant to a qualified stock issuance if

such purchase is approved by the Director under subsection

(q)(1)(D) of this section;

except that the aggregate amount of shares held under this

clause (other than under subclauses (I), (II), (III), (IV),

and (VI)) may not exceed 15 percent of all outstanding shares

or of the voting power of a savings association or savings

and loan holding company; or

(iv) to acquire the control of an uninsured institution, or

to retain for more than one year after February 14, 1968, or

from the date on which such control was acquired, whichever

is later, except that the Director may upon application by

such company extend such one-year period from year to year,

for an additional period not exceeding 3 years, if the

Director finds such extension is warranted and is not

detrimental to the public interest; and

(B) any other company, without the prior written approval of

the Director, directly or indirectly, or through one or more

subsidiaries or through one or more transactions, to acquire

the control of one or more savings associations, except that

such approval shall not be required in connection with the

control of a savings association, (i) acquired by devise under

the terms of a will creating a trust which is excluded from the

definition of ''savings and loan holding company'' under

subsection (a) of this section, (ii) acquired in connection

with a reorganization in which a person or group of persons,

having had control of a savings association for more than 3

years, vests control of that association in a newly formed

holding company subject to the control of the same person or

group of persons, or (iii) acquired by a bank holding company

that is registered under, and subject to, the Bank Holding

Company Act of 1956 (12 U.S.C. 1841 et seq.), or any company

controlled by such bank holding company. The Director shall

approve an acquisition of a savings association under this

subparagraph unless the Director finds the financial and

managerial resources and future prospects of the company and

association involved to be such that the acquisition would be

detrimental to the association or the insurance risk of the

Savings Association Insurance Fund or Bank Insurance Fund, and

shall render a decision within 90 days after submission to the

Director of the complete record on the application.

Consideration of the managerial resources of a company or savings

association under subparagraph (B) shall include consideration of

the competence, experience, and integrity of the officers,

directors, and principal shareholders of the company or

association.

(2) Factors to be considered

The Director shall not approve any acquisition under

subparagraph (A)(i) or (A)(ii), or of more than one savings

association under subparagraph (B) of paragraph (1) of this

subsection, any acquisition of stock in connection with a

qualified stock issuance, any acquisition under paragraph (4)(A),

or any transaction under section 13(k) of the Federal Deposit

Insurance Act (12 U.S.C. 1823(k)), except in accordance with this

paragraph. In every case, the Director shall take into

consideration the financial and managerial resources and future

prospects of the company and association involved, the effect of

the acquisition on the association, the insurance risk to the

Savings Association Insurance Fund or the Bank Insurance Fund,

and the convenience and needs of the community to be served, and

shall render a decision within 90 days after submission to the

Director of the complete record on the application.

Consideration of the managerial resources of a company or savings

association shall include consideration of the competence,

experience, and integrity of the officers, directors, and

principal shareholders of the company or association. Before

approving any such acquisition, except a transaction under

section 13(k) of the Federal Deposit Insurance Act, the Director

shall request from the Attorney General and consider any report

rendered within 30 days on the competitive factors involved. The

Director shall not approve any proposed acquisition -

(A) which would result in a monopoly, or which would be in

furtherance of any combination or conspiracy to monopolize or

to attempt to monopolize the savings and loan business in any

part of the United States,

(B) the effect of which in any section of the country may be

substantially to lessen competition, or tend to create a

monopoly, or which in any other manner would be in restraint of

trade, unless it finds that the anticompetitive effects of the

proposed acquisition are clearly outweighed in the public

interest by the probable effect of the acquisition in meeting

the convenience and needs of the community to be served,

the Director that the company will make available to the

Director such information on the operations or activities of

the company, and any affiliate of the company, as the Director

determines to be appropriate to determine and enforce

compliance with this chapter, or

(D) in the case of an application involving a foreign bank,

if the foreign bank is not subject to comprehensive supervision

or regulation on a consolidated basis by the appropriate

authorities in the bank's home country.

(3) Interstate acquisitions

No acquisition shall be approved by the Director under this

subsection which will result in the formation by any company,

through one or more subsidiaries or through one or more

transactions, of a multiple savings and loan holding company

controlling savings associations in more than one State, unless -

(A) such company, or a savings association subsidiary of such

company, is authorized to acquire control of a savings

association subsidiary, or to operate a home or branch office,

in the additional State or States pursuant to section 13(k) of

the Federal Deposit Insurance Act (12 U.S.C. 1823(k));

(B) such company controls a savings association subsidiary

which operated a home or branch office in the additional State

or States as of March 5, 1987; or

association to be acquired is located permit a savings

association chartered by such State to be acquired by a savings

association chartered by the State where the acquiring savings

association or savings and loan holding company is located or

by a holding company that controls such a State chartered

savings association, and such statutes specifically authorize

such an acquisition by language to that effect and not merely

by implication.

(4) Acquisitions by certain individuals

(A) In general

Notwithstanding subsection (h)(2) of this section, any

director or officer of a savings and loan holding company, or

any individual who owns, controls, or holds with power to vote

(or holds proxies representing) more than 25 percent of the

voting shares of such holding company, may acquire control of

any savings association not a subsidiary of such savings and

loan holding company with the prior written approval of the

Director.

(B) Treatment of certain holding companies

If any individual referred to in subparagraph (A) controls

more than 1 savings and loan holding company or more than 1

savings association, any savings and loan holding company

controlled by such individual shall be subject to the

activities limitations contained in subsection (c) of this

section to the same extent such limitations apply to multiple

savings and loan holding companies, unless all or all but 1 of

the savings associations (including any institution deemed to

be a savings association under subsection (1) (FOOTNOTE 5) of

this section) controlled directly or indirectly by such

individual was acquired pursuant to an acquisition described in

subclause (I) or (II) of subsection (c)(3)(B)(i) of this

section.

(FOOTNOTE 5) So in original. Probably should be subsection

''(l)''.

(5) Acquisitions pursuant to certain security interests

This subsection and subsection (c)(2) of this section do not

apply to any savings and loan holding company which acquired the

control of a savings association or of a savings and loan holding

company pursuant to a pledge or hypothecation to secure a loan,

or in connection with the liquidation of a loan, made in the

ordinary course of business. It shall be unlawful for any such

company to retain such control for more than one year after

February 14, 1968, or from the date on which such control was

acquired, whichever is later, except that the Director may upon

application by such company extend such one-year period from year

to year, for an additional period not exceeding 3 years, if the

Director finds such extension is warranted and would not be

detrimental to the public interest.

(6) Shares held by insurance affiliates

Shares described in clause (iii)(VII) of paragraph (1)(A) shall

not be excluded for purposes of clause (iii) of such paragraph if

(A) all shares held under such clause (iii)(VII) by all

insurance company affiliates of such savings association or

savings and loan holding company in the aggregate exceed 5

percent of all outstanding shares or of the voting power of the

savings association or savings and loan holding company; or

(B) such shares are acquired or retained with a view to

acquiring, exercising, or transferring control of the savings

association or savings and loan holding company.

(f) Declaration of dividend

Every subsidiary savings association of a savings and loan

holding company shall give the Director not less than 30 days'

advance notice of the proposed declaration by its directors of any

dividend on its guaranty, permanent, or other nonwithdrawable

stock. Such notice period shall commence to run from the date of

receipt of such notice by the Director. Any such dividend declared

within such period, or without the giving of such notice to the

Director, shall be invalid and shall confer no rights or benefits

upon the holder of any such stock.

(g) Administration and enforcement

(1) In general

The Director is authorized to issue such regulations and orders

as the Director deems necessary or appropriate to enable the

Director to administer and carry out the purposes of this

section, and to require compliance therewith and prevent evasions

thereof.

(2) Investigations

The Director may make such investigations as the Director deems

necessary or appropriate to determine whether the provisions of

this section, and regulations and orders thereunder, are being

and have been complied with by savings and loan holding companies

and subsidiaries and affiliates thereof. For the purpose of any

investigation under this section, the Director may administer

oaths and affirmations, issue subpenas, take evidence, and

require the production of any books, papers, correspondence,

memorandums, or other records which may be relevant or material

to the inquiry. The attendance of witnesses and the production

of any such records may be required from any place in any State.

The Director may apply to the United States district court for

the judicial district (or the United States court in any

territory) in which any witness or company subpenaed resides or

carries on business, for enforcement of any subpena issued

pursuant to this paragraph, and such courts shall have

jurisdiction and power to order and require compliance.

(3) Proceedings

(A) In any proceeding under subsection (a)(2)(D) of this

section or under paragraph (5) of this section, (FOOTNOTE 6) the

Director may administer oaths and affirmations, take or cause to

be taken depositions, and issue subpenas. The Director may make

regulations with respect to any such proceedings. The attendance

of witnesses and the production of documents provided for in this

paragraph may be required from any place in any State or in any

territory at any designated place where such proceeding is being

conducted. Any party to such proceedings 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 paragraph,

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.

(FOOTNOTE 6) So in original. Probably should be

''subsection,''.

(B) Any hearing provided for in subsection (a)(2)(D) of this

section or under paragraph (5) of this section (FOOTNOTE 7) shall

be held in the Federal judicial district or in the territory in

which the principal office of the association or other company is

located unless the party afforded the hearing consents to another

place, and shall be conducted in accordance with the provisions

of chapter 5 of title 5.

(FOOTNOTE 7) So in original. Probably should be ''subsection''.

(4) Injunctions

Whenever it appears to the Director that any person is engaged

or has engaged or is about to engage in any acts or practices

which constitute or will constitute a violation of the provisions

of this section or of any regulation or order thereunder, the

Director may bring an action in the proper United States district

court, or the United States court of any territory or other place

subject to the jurisdiction of the United States, to enjoin such

acts or practices, to enforce compliance with this section or any

regulation or order, or to require the divestiture of any

acquisition in violation of this section, or for any combination

of the foregoing, and such courts shall have jurisdiction of such

actions. Upon a proper showing an injunction, decree,

restraining order, order of divestiture, or other appropriate

order shall be granted without bond.

(5) Cease and desist orders

(A) Notwithstanding any other provision of this section, the

Director may, whenever the Director has reasonable cause to

believe that the continuation by a savings and loan holding

company of any activity or of ownership or control of any of its

noninsured subsidiaries constitutes a serious risk to the

financial safety, soundness, or stability of a savings and loan

holding company's subsidiary savings association and is

inconsistent with the sound operation of a savings association or

with the purposes of this section or section 8 of the Federal

Deposit Insurance Act (12 U.S.C. 1818), order the savings and

loan holding company or any of its subsidiaries, after due notice

and opportunity for hearing, to terminate such activities or to

terminate (within 120 days or such longer period as the Director

directs in unusual circumstances) its ownership or control of any

such noninsured subsidiary either by sale or by distribution of

the shares of the subsidiary to the shareholders of the savings

and loan holding company. Such distribution shall be pro rata

with respect to all of the shareholders of the distributing

savings and loan holding company, and the holding company shall

not make any charge to its shareholders arising out of such a

distribution.

(B) The Director may in the Director's discretion apply to the

United States district court within the jurisdiction of which the

principal office of the company is located, for the enforcement

of any effective and outstanding order issued under this section,

and such court shall have jurisdiction and power to order and

require compliance therewith. Except as provided in subsection

(j) of this section, no court shall have jurisdiction to affect

by injunction or otherwise the issuance or enforcement of any

notice or order under this section, or to review, modify,

suspend, terminate, or set aside any such notice or order.

(h) Prohibited acts

It shall be unlawful for -

(1) any savings and loan holding company or subsidiary thereof,

or any director, officer, employee, or person owning,

controlling, or holding with power to vote, or holding proxies

representing, more than 25 percent of the voting shares, of such

holding company or subsidiary, to hold, solicit, or exercise any

proxies in respect of any voting rights in a savings association

which is a mutual association;

(2) any director or officer of a savings and loan holding

company, or any individual who owns, controls, or holds with

power to vote (or holds proxies representing) more than 25

percent of the voting shares of such holding company, to acquire

control of any savings association not a subsidiary of such

savings and loan holding company, unless such acquisition is

approved by the Director pursuant to subsection (e)(4) of this

section; or

(3) any individual, except with the prior approval of the

Director, to serve or act as a director, officer, or trustee of,

or become a partner in, any savings and loan holding company

after having been convicted of any criminal offense involving

dishonesty or breach of trust.

(i) Penalties

(1) Criminal penalty

(A) Whoever knowingly violates any provision of this section or

being a company, violates any regulation or order issued by the

Director under this section, shall be imprisoned not more than 1

year, fined not more than $100,000 per day for each day during

which the violation continues, or both.

(B) Whoever, with the intent to deceive, defraud, or profit

significantly, knowingly violates any provision of this section

shall be fined not more than $1,000,000 per day for each day

during which the violation continues, imprisoned not more than 5

years, or both.

(2) (FOOTNOTE 8) Civil money penalty

(FOOTNOTE 8) See Codification note below.

(A) Penalty

Any company which violates, and any person who participates

in a violation of, any provision of this section, or any

regulation or order issued pursuant thereto, shall forfeit and

pay a civil penalty of not more than $25,000 for each day

during which such violation continues.

(B) Assessment

Any penalty imposed under subparagraph (A) may 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 shall be subject to the provisions of such

section.

The company or other person against whom any civil penalty is

assessed under this paragraph shall be afforded a hearing if

such company or person 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 shall apply

to any proceeding under this paragraph.

(D) Disbursement

All penalties collected under authority of this paragraph

shall be deposited into the Treasury.

(E) ''Violate'' defined

For purposes of this section, the term ''violate'' includes

any action (alone or with another or others) for or toward

causing, bringing about, participating in, counseling, or

aiding or abetting a violation.

(F) Regulations

The Director shall prescribe regulations establishing such

procedures as may be necessary to carry out this paragraph.

(3) (FOOTNOTE 8) Civil money penalty

(A) Penalty

Any company which violates, and any person who participates

in a violation of, any provision of this section, or any

regulation or order issued pursuant thereto, shall forfeit and

pay a civil penalty of not more than $25,000 for each day

during which such violation continues.

(B) Assessment; etc.

Any penalty imposed under subparagraph (A) may 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 shall be subject to the provisions of such

section.

The company or other person against whom any penalty is

assessed under this paragraph shall be afforded an agency

hearing if such company or person 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

shall apply to any proceeding under this paragraph.

(D) Disbursement

All penalties collected under authority of this paragraph

shall be deposited into the Treasury.

(E) ''Violate'' defined

For purposes of this section, the term ''violate'' includes

any action (alone or with another or others) for or toward

causing, bringing about, participating in, counseling, or

aiding or abetting a violation.

(F) Regulations

The Director shall prescribe regulations establishing such

procedures as may be necessary to carry out this paragraph.

(4) Redesignated (3)

(5) Notice under this section after separation from service

The resignation, termination of employment or participation, or

separation of an institution-affiliated party (within the meaning

of section 3(u) of the Federal Deposit Insurance Act (12 U.S.C.

1813(u))) with respect to a savings and loan holding company or

subsidiary thereof (including a separation caused by the

deregistration of such a company or such a subsidiary) shall not

affect the jurisdiction and authority of the Director to issue

any notice and proceed under this section against any such party,

if such notice is served before the end of the 6-year period

beginning on the date such party ceased to be such a party with

respect to such holding company or its subsidiary (whether such

date occurs before, on, or after August 9, 1989).

(j) Judicial review

Any party aggrieved by an order of the Director under this

section may obtain a review of such order by filing in the court of

appeals of the United States for the circuit in which the principal

office of such party is located, or in the United States Court of

Appeals for the District of Columbia Circuit, within 30 days after

the date of service of such order, a written petition praying that

the order of the Director be modified, terminated, or set aside. A

copy of the petition shall be forthwith transmitted by the clerk of

the court to the Director, and thereupon the Director shall file in

the court the record in the proceeding, as provided in section 2112

of title 28. Upon the filing of such petition, such court shall

have jurisdiction, which upon the filing of the record shall be

exclusive, to affirm, modify, terminate, or set aside, in whole or

in part, the order of the Director. Review of such proceedings

shall be had as provided in chapter 7 of title 5. The judgment and

decree of the court shall be final, except that the same shall be

subject to review by the Supreme Court upon certiorari as provided

in section 1254 of title 28.

(k) Savings clause

Nothing contained in this section, other than any transaction

approved under subsection (e)(2) of this section or section 13 of

the Federal Deposit Insurance Act (12 U.S.C. 1823), shall be

interpreted or construed as approving any act, action, or conduct

which is or has been or may be in violation of existing law, nor

shall anything herein contained constitute a defense to any action,

suit, or proceeding pending or hereafter instituted on account of

any act, action, or conduct in violation of the antitrust laws.

(l) Treatment of FDIC insured State savings banks and cooperative

banks as savings associations

(1) In general

Notwithstanding any other provision of law, a savings bank (as

defined in section 3(g) of the Federal Deposit Insurance Act (12

U.S.C. 1813(g))) and a cooperative bank that is an insured bank

(as defined in section 3(h) of the Federal Deposit Insurance Act)

upon application shall be deemed to be a savings association for

the purpose of this section, if the Director determines that such

bank is a qualified thrift lender (as determined under subsection

(m) of this section).

(2) Failure to maintain qualified thrift lender status

If any savings bank which is deemed to be a savings association

under paragraph (1) subsequently fails to maintain its status as

a qualified thrift lender, as determined by the Director, such

bank may not thereafter be a qualified thrift lender for a period

of 5 years.

(m) Qualified thrift lender test

(1) In general

Except as provided in paragraphs (2) and (7), any savings

association is a qualified thrift lender if -

(A) the savings association qualifies as a domestic building

and loan association, as such term is defined in section

7701(a)(19) of title 26; or

(B)(i) the savings association's qualified thrift investments

equal or exceed 65 percent of the savings association's

portfolio assets; and

(ii) the savings association's qualified thrift investments

continue to equal or exceed 65 percent of the savings

association's portfolio assets on a monthly average basis in 9

out of every 12 months.

(2) Exceptions granted by Director

Notwithstanding paragraph (1), the Director may grant such

temporary and limited exceptions from the minimum actual thrift

investment percentage requirement contained in such paragraph as

the Director deems necessary if -

(A) the Director determines that extraordinary circumstances

exist, such as when the effects of high interest rates reduce

mortgage demand to such a degree that an insufficient

opportunity exists for a savings association to meet such

investment requirements; or

(B) the Director determines that -

(i) the grant of any such exception will significantly

facilitate an acquisition under section 13(c) or 13(k) of the

Federal Deposit Insurance Act (12 U.S.C. 1823(c) or (k));

(ii) the acquired association will comply with the

transition requirements of paragraph (7)(B), as if the date

of the exemption were the starting date for the transition

period described in that paragraph; and

(iii) the Director determines that the exemption will not

have an undue adverse effect on competing savings

associations in the relevant market and will further the

purposes of this subsection.

(3) Failure to become and remain a qualified thrift lender

(A) In general

A savings association that fails to become or remain a

qualified thrift lender shall either become one or more banks

(other than a savings bank) or be subject to subparagraph (B),

except as provided in subparagraph (D).

(B) Restrictions applicable to savings associations that are

not qualified thrift lenders

(i) Restrictions effective immediately

The following restrictions shall apply to a savings

association beginning on the date on which the savings

association should have become or ceases to be a qualified

thrift lender:

(I) Activities

The savings association shall not make any new investment

(including an investment in a subsidiary) or engage,

directly or indirectly, in any other new activity unless

that investment or activity would be permissible for the

savings association if it were a national bank, and is also

permissible for the savings association as a savings

association.

(II) Branching

The savings association shall not establish any new

branch office at any location at which a national bank

located in the savings association's home State may not

establish a branch office. For purposes of this subclause,

a savings association's home State is the State in which

the savings association's total deposits were largest on

the date on which the savings association should have

become or ceased to be a qualified thrift lender.

(III) Dividends

The savings association shall be subject to all statutes

and regulations governing the payment of dividends by a

national bank in the same manner and to the same extent as

if the savings association were a national bank.

(ii) Additional restrictions effective after 3 years

Beginning 3 years after the date on which a savings

association should have become a qualified thrift lender, or

the date on which the savings association ceases to be a

qualified thrift lender, as applicable, the savings

association shall not retain any investment (including an

investment in any subsidiary) or engage, directly or

indirectly, in any activity, unless that investment or

activity -

(I) would be permissible for the savings association if

it were a national bank; and

(II) is permissible for the savings association as a

savings association.

Any company that controls a savings association that is

subject to any provision of subparagraph (B) shall, within one

year after the date on which the savings association should

have become or ceases to be a qualified thrift lender, register

as and be deemed to be a bank holding company subject to all of

the provisions of the Bank Holding Company Act of 1956 (12

U.S.C. 1841 et seq.), section 8 of the Federal Deposit

Insurance Act (12 U.S.C. 1818), and other statutes applicable

to bank holding companies, in the same manner and to the same

extent as if the company were a bank holding company and the

savings association were a bank, as those terms are defined in

the Bank Holding Company Act of 1956.

(D) Requalification

A savings association that should have become or ceases to be

a qualified thrift lender shall not be subject to subparagraph

(B) or (C) if the savings association becomes a qualified

thrift lender by meeting the qualified thrift lender

requirement in paragraph (1) on a monthly average basis in 9

out of the preceding 12 months and remains a qualified thrift

lender. If the savings association (or any savings association

that acquired all or substantially all of its assets from that

savings association) at any time thereafter ceases to be a

qualified thrift lender, it shall immediately be subject to all

provisions of subparagraphs (B) and (C) as if all the periods

described in subparagraphs (B)(ii) and (C) had expired.

(E) Deposit insurance assessments

Any bank chartered as a result of the requirements of this

section shall be obligated until December 31, 1993, to pay to

the Savings Association Insurance Fund the assessments assessed

on savings associations under the Federal Deposit Insurance Act

(12 U.S.C. 1811 et seq.). Such association shall also be

assessed, on the date of its change of status from a Savings

Association Insurance Fund member, the exit fee and entrance

fee provided in section 5(d) of the Federal Deposit Insurance

Act (12 U.S.C. 1815(d)). Such institution shall not be

obligated to pay the assessments assessed on banks under the

Federal Deposit Insurance Act until -

(i) December 31, 1993, or

(ii) the institution's change of status from a Savings

Association Insurance Fund member to a Bank Insurance Fund

member,

whichever is later.

(F) Exemption for specialized savings associations serving

certain military personnel

Subparagraph (A) shall not apply to a savings association

subsidiary of a savings and loan holding company if at least 90

percent of the customers of the savings and loan holding

company and its subsidiaries and affiliates are active or

former members in the United States military services or the

widows, widowers, divorced spouses, or current or former

dependents of such members.

(G) Exemption for certain Federal savings associations

This paragraph shall not apply to any Federal savings

association in existence as a Federal savings association on

August 9, 1989 -

(i) that was chartered before 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 before October 15, 1982, as a savings bank

or a cooperative bank under State law.

(H) No circumvention of exit moratorium

Subparagraph (A) of this paragraph shall not be construed as

permitting any insured depository institution to engage in any

conversion transaction prohibited under section 5(d) of the

Federal Deposit Insurance Act (12 U.S.C. 1815(d)).

(4) Definitions

For purposes of this subsection, the following definitions

shall apply:

(A) Actual thrift investment percentage

The term ''actual thrift investment percentage'' means the

percentage determined by dividing -

(i) the amount of a savings association's qualified thrift

investments, by

(ii) the amount of the savings association's portfolio

assets.

(B) Portfolio assets

The term ''portfolio assets'' means, with respect to any

savings association, the total assets of the savings

association, minus the sum of -

(i) goodwill and other intangible assets;

(ii) the value of property used by the savings association

to conduct its business; and

(iii) liquid assets of the type required to be maintained

under section 1465 of this title, as in effect on the day

before December 27, 2000, in an amount not exceeding the

amount equal to 20 percent of the savings association's total

assets.

(i) In general

The term ''qualified thrift investments'' means, with

respect to any savings association, the assets of the savings

association that are described in clauses (ii) and (iii).

(ii) Assets includible without limit

The following assets are described in this clause for

purposes of clause (i):

(I) The aggregate amount of loans held by the savings

association that were made to purchase, refinance,

construct, improve, or repair domestic residential housing

or manufactured housing.

(II) Home-equity loans.

(III) Securities backed by or representing an interest in

mortgages on domestic residential housing or manufactured

housing.

(IV) Existing obligations of deposit insurance agencies.

- Direct or indirect obligations of the Federal Deposit

Insurance Corporation or the Federal Savings and Loan

Insurance Corporation issued in accordance with the terms

of agreements entered into prior to July 1, 1989, for the

10-year period beginning on the date of issuance of such

obligations.

(V) New obligations of deposit insurance agencies. -

Obligations of the Federal Deposit Insurance Corporation,

the Federal Savings and Loan Insurance Corporation, the

FSLIC Resolution Fund, and the Resolution Trust Corporation

issued in accordance with the terms of agreements entered

into on or after July 1, 1989, for the 5-year period

beginning on the date of issuance of such obligations.

(VI) Shares of stock issued by any Federal home loan

bank.

(VII) Loans for educational purposes, loans to small

businesses, and loans made through credit cards or credit

card accounts.

(iii) Assets includible subject to percentage restriction

The following assets are described in this clause for

purposes of clause (i):

(I) 50 percent of the dollar amount of the residential

mortgage loans originated by such savings association and

sold within 90 days of origination.

(II) Investments in the capital stock or obligations of,

and any other security issued by, any service corporation

if such service corporation derives at least 80 percent of

its annual gross revenues from activities directly related

to purchasing, refinancing, constructing, improving, or

repairing domestic residential real estate or manufactured

housing.

(III) 200 percent of the dollar amount of loans and

investments made to acquire, develop, and construct 1- to

4-family residences the purchase price of which is or is

guaranteed to be not greater than 60 percent of the median

value of comparable newly constructed 1- to 4-family

residences within the local community in which such real

estate is located, except that not more than 25 percent of

the amount included under this subclause may consist of

commercial properties related to the development if those

properties are directly related to providing services to

residents of the development.

(IV) 200 percent of the dollar amount of loans for the

acquisition or improvement of residential real property,

churches, schools, and nursing homes located within, and

loans for any other purpose to any small businesses located

within any area which has been identified by the Director,

in connection with any review or examination of community

reinvestment practices, as a geographic area or

neighborhood in which the credit needs of the low- and

moderate-income residents of such area or neighborhood are

not being adequately met.

(V) Loans for the purchase or construction of churches,

schools, nursing homes, and hospitals, other than those

qualifying under clause (IV), and loans for the improvement

and upkeep of such properties.

(VI) Loans for personal, family, or household purposes

(other than loans for personal, family, or household

purposes described in clause (ii)(VII)).

(VII) Shares of stock issued by the Federal Home Loan

Mortgage Corporation or the Federal National Mortgage

Association.

(iv) Percentage restriction applicable to certain assets

The aggregate amount of the assets described in clause

(iii) which may be taken into account in determining the

amount of the qualified thrift investments of any savings

association shall not exceed the amount which is equal to 20

percent of a savings association's portfolio assets.

(v) Qualified thrift investments

The term ''qualified thrift investments'' excludes -

(I) except for home equity loans, that portion of any

loan or investment that is used for any purpose other than

those expressly qualifying under any subparagraph of clause

(ii) or (iii); or

(II) goodwill or any other intangible asset.

(D) Credit card

The Director shall issue such regulations as may be necessary

to define the term ''credit card''.

(E) Small business

The Director shall issue such regulations as may be necessary

to define the term ''small business''.

(5) Consistent accounting required

(A) In determining the amount of a savings association's

portfolio assets, the assets of any subsidiary of the savings

association shall be consolidated with the assets of the savings

association if -

(i) Assets of the subsidiary are consolidated with the assets

of the savings association in determining the savings

association's qualified thrift investments; or

(ii) Residential mortgage loans originated by the subsidiary

are included pursuant to paragraph (4)(C)(iii)(I) in

determining the savings association's qualified thrift

investments.

(B) In determining the amount of a savings association's

portfolio assets and qualified thrift investments, consistent

accounting principles shall be applied.

(6) Special rules for Puerto Rico and Virgin Islands savings

associations

(A) Puerto Rico savings associations

With respect to any savings association headquartered and

operating primarily in Puerto Rico -

(i) the term ''qualified thrift investments'' includes, in

addition to the items specified in paragraph (4) -

(I) the aggregate amount of loans for personal, family,

educational, or household purposes made to persons residing

or domiciled in the Commonwealth of Puerto Rico; and

(II) the aggregate amount of loans for the acquisition or

improvement of churches, schools, or nursing homes, and of

loans to small businesses, located within the Commonwealth

of Puerto Rico; and

(ii) the aggregate amount of loans related to the purchase,

acquisition, development and construction of 1- to 4-family

residential real estate -

(I) which is located within the Commonwealth of Puerto

Rico; and

(II) the value of which (at the time of acquisition or

upon completion of the development and construction) is

below the median value of newly constructed 1- to 4-family

residences in the Commonwealth of Puerto Rico, which may be

taken into account in determining the amount of the

qualified thrift investments and of such savings

association shall be doubled.

(B) Virgin Islands savings associations

With respect to any savings association headquartered and

operating primarily in the Virgin Islands -

(i) the term ''qualified thrift investments'' includes, in

addition to the items specified in paragraph (4) -

(I) the aggregate amount of loans for personal, family,

educational, or household purposes made to persons residing

or domiciled in the Virgin Islands; and

(II) the aggregate amount of loans for the acquisition or

improvement of churches, schools, or nursing homes, and of

loans to small businesses, located within the Virgin

Islands; and

(ii) the aggregate amount of loans related to the purchase,

acquisition, development and construction of 1- to 4-family

residential real estate -

(I) which is located within the Virgin Islands; and

(II) the value of which (at the time of acquisition or

upon completion of the development and construction) is

below the median value of newly constructed 1- to 4-family

residences in the Virgin Islands, which may be taken into

account in determining the amount of the qualified thrift

investments and of such savings association shall be

doubled.

(7) Transitional rule for certain savings associations

(A) In general

If any Federal savings association in existence as a Federal

savings association on August 9, 1989 -

(i) that was chartered as a savings bank or a cooperative

bank under State law before October 15, 1982; or

(ii) that acquired its principal assets from an association

that was chartered before October 15, 1982, as a savings bank

or a cooperative bank under State law,

meets the requirements of subparagraph (B), such savings

association shall be treated as a qualified thrift lender

during period (FOOTNOTE 9) ending on September 30, 1995.

(FOOTNOTE 9) So in original. Probably should be ''the period''.

(B) Subparagraph (B) requirements

A savings association meets the requirements of this

subparagraph if, in the determination of the Director -

(i) the actual thrift investment percentage of such

association does not, after August 9, 1989, decrease below

the actual thrift investment percentage of such association

on July 15, 1989; and

(ii) the amount by which -

(I) the actual thrift investment percentage of such

association at the end of each period described in the

following table, exceeds

(II) the actual thrift investment percentage of such

association on July 15, 1989,

is equal to or greater than the applicable percentage (as

determined under the following table) of the amount by which

70 percent exceeds the actual thrift investment percentage of

such association on August 9, 1989:

For the following

The applicable

period:

percentage is:

July 1, 1991-September 30, 1992 25 percent

October 1, 1992-March 31, 1994 50 percent

April 1, 1994-September 30, 1995 75 percent

Thereafter 100 percent

For purposes of this paragraph, the actual thrift investment

percentage of an association on July 15, 1989, shall be

determined by applying the definition of ''actual thrift

investment percentage'' that takes effect on July 1, 1991.

(n) Tying restrictions

A savings and loan holding company and any of its affiliates

shall be subject to section 1464(q) of this title and regulations

prescribed under such section, in connection with transactions

involving the products or services of such company or affiliate and

those of an affiliated savings association as if such company or

affiliate were a savings association.

(o) Mutual holding companies

(1) In general

A savings association operating in mutual form may reorganize

so as to become a holding company by -

(A) chartering an interim savings association, the stock of

which is to be wholly owned, except as otherwise provided in

this section, by the mutual association; and

(B) transferring the substantial part of its assets and

liabilities, including all of its insured liabilities, to the

interim savings association.

(2) Directors and certain account holders' approval of plan

required

A reorganization is not authorized under this subsection unless

(A) a plan providing for such reorganization has been

approved by a majority of the board of directors of the mutual

savings association; and

(B) in the case of an association in which holders of

accounts and obligors exercise voting rights, such plan has

been submitted to and approved by a majority of such

individuals at a meeting held at the call of the directors in

accordance with the procedures prescribed by the association's

charter and bylaws.

(3) Notice to the Director; disapproval period

(A) Notice required

At least 60 days prior to taking any action described in

paragraph (1), a savings association seeking to establish a

mutual holding company shall provide written notice to the

Director. The notice shall contain such relevant information as

the Director shall require by regulation or by specific request

in connection with any particular notice.

(B) Transaction allowed if not disapproved

Unless the Director within such 60-day notice period

disapproves the proposed holding company formation, or extends

for another 30 days the period during which such disapproval

may be issued, the savings association providing such notice

may proceed with the transaction, if the requirements of

paragraph (2) have been met.

The Director may disapprove any proposed holding company

formation only if -

(i) such disapproval is necessary to prevent unsafe or

unsound practices;

(ii) the financial or management resources of the savings

association involved warrant disapproval;

(iii) the savings association fails to furnish the

information required under subparagraph (A); or

(iv) the savings association fails to comply with the

requirement of paragraph (2).

(D) Retention of capital assets

In connection with the transaction described in paragraph

(1), a savings association may, subject to the approval of the

Director, retain capital assets at the holding company level to

the extent that such capital exceeds the association's capital

requirement established by the Director pursuant to sections

(FOOTNOTE 01) 1464(s) and (t) of this title.

(FOOTNOTE 01) So in original. Probably should be ''section''.

(4) Ownership

(A) In general

Persons having ownership rights in the mutual association

pursuant to section 1464(b)(1)(B) of this title or State law

shall have the same ownership rights with respect to the mutual

holding company.

(B) Holders of certain accounts

Holders of savings, demand or other accounts of -

(i) a savings association chartered as part of a

transaction described in paragraph (1); or

(ii) a mutual savings association acquired pursuant to

paragraph (5)(B),

shall have the same ownership rights with respect to the mutual

holding company as persons described in subparagraph (A) of

this paragraph.

(5) Permitted activities

A mutual holding company may engage only in the following

activities:

(A) Investing in the stock of a savings association.

(B) Acquiring a mutual association through the merger of such

association into a savings association subsidiary of such

holding company or an interim savings association subsidiary of

such holding company.

another holding company, one of whose subsidiaries is a savings

association.

(D) Investing in a corporation the capital stock of which is

available for purchase by a savings association under Federal

law or under the law of any State where the subsidiary savings

association or associations have their home offices.

(E) Engaging in the activities described in subsection (c)(2)

or (c)(9)(A)(ii) of this section.

(6) Limitations on certain activities of acquired holding

companies

(A) New activities

If a mutual holding company acquires or merges with another

holding company under paragraph (5)(C), the holding company

acquired or the holding company resulting from such merger or

acquisition may only invest in assets and engage in activities

which are authorized under paragraph (5).

(B) Grace period for divesting prohibited assets or

discontinuing prohibited activities

Not later than 2 years following a merger or acquisition

described in paragraph (5)(C), the acquired holding company or

the holding company resulting from such merger or acquisition

shall -

(i) dispose of any asset which is an asset in which a

mutual holding company may not invest under paragraph (5);

and

(ii) cease any activity which is an activity in which a

mutual holding company may not engage under paragraph (5).

(7) Regulation

A mutual holding company shall be chartered by the Director and

shall be subject to such regulations as the Director may

prescribe. Unless the context otherwise requires, a mutual

holding company shall be subject to the other requirements of

this section regarding regulation of holding companies.

(8) Capital improvement

(A) Pledge of stock of savings association subsidiary

This section shall not prohibit a mutual holding company from

pledging all or a portion of the stock of a savings association

chartered as part of a transaction described in paragraph (1)

to raise capital for such savings association.

(B) Issuance of nonvoting shares

This section shall not prohibit a savings association

chartered as part of a transaction described in paragraph (1)

from issuing any nonvoting shares or less than 50 percent of

the voting shares of such association to any person other than

the mutual holding company.

(9) Insolvency and liquidation

(A) In general

Notwithstanding any provision of law, upon -

(i) the default of any savings association -

(I) the stock of which is owned by any mutual holding

company; and

(II) which was chartered in a transaction described in

paragraph (1);

(ii) the default of a mutual holding company; or

(iii) a foreclosure on a pledge by a mutual holding company

described in paragraph (8)(A),

a trustee shall be appointed receiver of such mutual holding

company and such trustee shall have the authority to liquidate

the assets of, and satisfy the liabilities of, such mutual

holding company pursuant to title 11.

(B) Distribution of net proceeds

Except as provided in subparagraph (C), the net proceeds of

any liquidation of any mutual holding company pursuant to

subparagraph (A) shall be transferred to persons who hold

ownership interests in such mutual holding company.

If the Corporation incurs a loss as a result of the default

of any savings association subsidiary of a mutual holding

company which is liquidated pursuant to subparagraph (A), the

Corporation shall succeed to the ownership interests of the

depositors of such savings association in the mutual holding

company, to the extent of the Corporation's loss.

(10) Definitions

For purposes of this subsection -

(A) Mutual holding company

The term ''mutual holding company'' means a corporation

organized as a holding company under this subsection.

(B) Mutual association

The term ''mutual association'' means a savings association

which is operating in mutual form.

The term ''default'' means an adjudication or other official

determination of a court of competent jurisdiction or other

public authority pursuant to which a conservator, receiver, or

other legal custodian is appointed.

(p) Holding company activities constituting serious risk to

subsidiary savings association

(1) Determination and imposition of restrictions

If the Director determines that there is reasonable cause to

believe that the continuation by a savings and loan holding

company of any activity constitutes a serious risk to the

financial safety, soundness, or stability of a savings and loan

holding company's subsidiary savings association, the Director

may impose such restrictions as the Director determines to be

necessary to address such risk. Such restrictions shall be

issued in the form of a directive to the holding company and any

of its subsidiaries, limiting -

(A) the payment of dividends by the savings association;

(B) transactions between the savings association, the holding

company, and the subsidiaries or affiliates of either; and

create a serious risk that the liabilities of the holding

company and its other affiliates may be imposed on the savings

association.

Such directive shall be effective as a cease and desist order

that has become final.

(2) Review of directive

(A) Administrative review

After a directive referred to in paragraph (1) is issued, the

savings and loan holding company, or any subsidiary of such

holding company subject to the directive, may object and

present in writing its reasons why the directive should be

modified or rescinded. Unless within 10 days after receipt of

such response the Director affirms, modifies, or rescinds the

directive, such directive shall automatically lapse.

(B) Judicial review

If the Director affirms or modifies a directive pursuant to

subparagraph (A), any affected party may immediately thereafter

petition the United States district court for the district in

which the savings and loan holding company has its main office

or in the United States District Court for the District of

Columbia to stay, modify, terminate or set aside the

directive. Upon a showing of extraordinary cause, the savings

and loan holding company, or any subsidiary of such holding

company subject to a directive, may petition a United States

district court for relief without first pursuing or exhausting

the administrative remedies set forth in this paragraph.

(q) Qualified stock issuance by undercapitalized savings

associations or holding companies

(1) In general

For purposes of this section, any issue of shares of stock

shall be treated as a qualified stock issuance if the following

conditions are met:

(A) The shares of stock are issued by -

(i) an undercapitalized savings association; or

(ii) a savings and loan holding company which is not a bank

holding company but which controls an undercapitalized

savings association if, at the time of issuance, the savings

and loan holding company is legally obligated to contribute

the net proceeds from the issuance of such stock to the

capital of an undercapitalized savings association subsidiary

of such holding company.

(B) All shares of stock issued consist of previously unissued

stock or treasury shares.

loan holding company that is registered, as of the date of

purchase, with the Director in accordance with the provisions

of subsection (b)(1) of this section.

(D) Subject to paragraph (2), the Director approved the

purchase of the shares of stock by the acquiring savings and

loan holding company.

(E) The entire consideration for the stock issued is paid in

cash by the acquiring savings and loan holding company.

(F) At the time of the stock issuance, each savings

association subsidiary of the acquiring savings and loan

holding company (other than an association acquired in a

transaction pursuant to subsection (c) or (k) of section 13 of

the Federal Deposit Insurance Act (12 U.S.C. 1823(c) or (k)) or

section 408(m) (FOOTNOTE 11) of the National Housing Act (12

U.S.C. 1730a(m))) has capital (after deducting any subordinated

debt, intangible assets, and deferred, unamortized gains or

losses) of not less than 6 1/2 percent of the total assets of

such savings association.

(FOOTNOTE 11) See References in Text note below.

(G) Immediately after the stock issuance, the acquiring

savings and loan holding company holds not more than 15 percent

of the outstanding voting stock of the issuing undercapitalized

savings association or savings and loan holding company.

(H) Not more than one of the directors of the issuing

association or company is an officer, director, employee, or

other representative of the acquiring company or any of its

affiliates.

(I) Transactions between the savings association or savings

and loan holding company that issues the shares pursuant to

this section and the acquiring company and any of its

affiliates shall be subject to the provisions of section 1468

of this title.

(2) Approval of acquisitions

(A) Additional capital commitments not required

The Director shall not disapprove any application for the

purchase of stock in connection with a qualified stock issuance

on the grounds that the acquiring savings and loan holding

company has failed to undertake to make subsequent additional

capital contributions to maintain the capital of the

undercapitalized savings association at or above the minimum

level required by the Director or any other Federal agency

having jurisdiction.

(B) Other conditions

Notwithstanding subsection (a)(4) of this section, the

Director may impose such conditions on any approval of an

application for the purchase of stock in connection with a

qualified stock issuance as the Director determines to be

appropriate, including -

(i) a requirement that any savings association subsidiary

of the acquiring savings and loan holding company limit

dividends paid to such holding company for such period of

time as the Director may require; and

(ii) such other conditions as the Director deems necessary

or appropriate to prevent evasions of this section.

days

An application for approval of a purchase of stock in

connection with a qualified stock issuance shall be deemed to

have been approved by the Director if such application has not

been disapproved by the Director before the end of the 90-day

period beginning on the date such application has been deemed

sufficient under regulations issued by the Director.

(3) No limitation on class of stock issued

The shares of stock issued in connection with a qualified stock

issuance may be shares of any class.

(4) ''Undercapitalized savings association'' defined

For purposes of this subsection, the term ''undercapitalized

savings association'' means any savings association -

(A) the assets of which exceed the liabilities of such

association; and

(B) which does not comply with one or more of the capital

standards in effect under section 1464(t) of this title.

(r) Penalty for failure to provide timely and accurate reports

(1) First tier

Any savings and loan holding company, and any subsidiary of

such holding company, 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 under this section or regulations prescribed by the

Director, 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. Such holding company or

subsidiary shall have the burden of proving by a preponderence

(FOOTNOTE 21) of the evidence that an error was inadvertent and

unintentional and that a report was inadvertently transmitted or

published late.

(FOOTNOTE 21) So in original. Probably should be

''preponderance''.

(2) Second tier

Any savings and loan holding company, and any subsidiary of

such holding company, which -

(A) fails to submit or publish any report or information

required under this section or under regulations prescribed by

the Director, 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 (1) 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.

(3) Third tier

If any savings and loan holding company or any subsidiary of

such a holding company knowingly or with reckless disregard for

the accuracy of any information or report described in paragraph

(2) 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 of such company or

subsidiary, whichever is less, per day for each day during which

such failure continues or such false or misleading information is

not corrected.

(4) Assessment

Any penalty imposed under paragraph (1), (2), or (3) 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.

(5) Hearing

Any savings and loan holding company or any subsidiary of such

a holding company against which any penalty is assessed under

this subsection shall be afforded a hearing if such savings and

loan holding company or such subsidiary, as the case may be,

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.

(s) Mergers, consolidations, and other acquisitions authorized

(1) In general

Subject to sections 5(d)(3) and 18(c) of the Federal Deposit

Insurance Act (12 U.S.C. 1815(d)(3), 1828(c)) and all other

applicable laws, any Federal savings association may acquire or

be acquired by any insured depository institution.

(2) Expedited approval of acquisitions

(A) In general

Any application by a savings association to acquire or be

acquired by another insured depository institution which is

required to be filed with the Director under any applicable law

or regulation shall be approved or disapproved in writing by

the Director before the end of the 60-day period beginning on

the date such application is filed with the agency.

(B) Extension of period

The period for approval or disapproval referred to in

subparagraph (A) may be extended for an additional 30-day

period if the Director determines that -

(i) an applicant has not furnished all of the information

required to be submitted; or

(ii) in the Director's judgment, any material information

submitted is substantially inaccurate or incomplete.

(3) ''Acquire'' defined

For purposes of this subsection, the term ''acquire'' means to

acquire, directly or indirectly, ownership or control through a

merger or consolidation or an acquisition of assets or assumption

of liabilities, provided that following such merger,

consolidation, or acquisition, an acquiring insured depository

institution may not own the shares of the acquired insured

depository institution.

(4) Regulations

(A) Required

The Director shall prescribe such regulations as may be

necessary to carry out paragraph (1).

(B) Effective date

The regulations required under subparagraph (A) shall -

(i) be prescribed in final form before the end of the

90-day period beginning on December 19, 1991; and

(ii) take effect before the end of the 120-day period

beginning on December 19, 1991.

(5) Limitation

No provision of this section shall be construed to authorize a

national bank or any subsidiary thereof to engage in any activity

not otherwise authorized under the National Bank Act (12 U.S.C.

21 et seq.) or any other law governing the powers of a national

bank.

(t) Exemption for bank holding companies

This section shall not apply to a bank holding company that is

subject to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et

seq.), or any company controlled by such bank holding company.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 10, as added Pub. L. 100-86, title IV,

Sec. 404(a), Aug. 10, 1987, 101 Stat. 609; amended Pub. L. 101-73,

title III, Sec. 301, 303(a), title IX, Sec. 905(j), 907(k), Aug. 9,

1989, 103 Stat. 318, 343, 462, 475; Pub. L. 102-242, title II, Sec.

211, title IV, Sec. 437-440, title V, Sec. 502(a), Dec. 19, 1991,

105 Stat. 2298, 2381, 2392; Pub. L. 102-550, title XVI, Sec.

1606(f)(4), 1607(b), Oct. 28, 1992, 106 Stat. 4088, 4089; Pub. L.

104-201, div. A, title X, Sec. 1077, Sept. 23, 1996, 110 Stat.

2664; Pub. L. 104-208, div. A, title II, Sec. 2201(b)(2),

2203(a)-(c), 2303(e), (g), 2704(d)(12)(B), Sept. 30, 1996, 110

Stat. 3009-403, 3009-404, 3009-424, 3009-425, 3009-490; Pub. L.

106-102, title IV, Sec. 401(a), (b), title VI, Sec. 604(d), Nov.

12, 1999, 113 Stat. 1434, 1436, 1452; Pub. L. 106-569, title XII,

Sec. 1201(b)(2), 1202, Dec. 27, 2000, 114 Stat. 3032.)

-REFTEXT-

REFERENCES IN TEXT

Sections 406 and 408 of the National Housing Act, referred to in

subsecs. (c)(3)(B)(i)(I), (6)(C)(i), (iv), (e)(1)(A)(iii)(VI), and

(q)(1)(F), which were classified to sections 1729 and 1730a of this

title, respectively, were repealed by Pub. L. 101-73, title IV,

Sec. 407, Aug. 9, 1989, 103 Stat. 363.

The antitrust laws, referred to in subsec. (k), are classified

generally to chapter 1 (Sec. 1 et seq.) of Title 15, Commerce and

Trade.

The Bank Holding Company Act of 1956, referred to in subsecs.

(a)(1)(D)(ii), (e)(1)(B)(iii), (m)(3)(C), and (t), is act May 9,

1956, ch. 240, 70 Stat. 133, as amended, which is classified

principally to chapter 17 (Sec. 1841 et seq.) of this title. For

complete classification of this Act to the Code, see Short Title

note set out under section 1841 of this title and Tables.

The Federal Deposit Insurance Act, referred to in subsec.

(m)(3)(E), 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.

Section 1465 of this title, referred to in subsec.

(m)(4)(B)(iii), was repealed by Pub. L. 106-569, title XII, Sec.

1201(a), Dec. 27, 2000, 114 Stat. 3032.

The National Bank Act, referred to in subsec. (s)(5), is act June

3, 1864, ch. 106, 13 Stat. 99, as amended, which is classified

principally to chapter 2 (Sec. 21 et seq.) of this title. For

complete classification of this Act to the Code, see References in

Text note set out under section 38 of this title.

-COD-

CODIFICATION

The directory language of sections 905(j) and 907(k) of Pub. L.

101-73 amending subsec. (i) of this section resulted in the

enactment of two virtually identical pars. (2) and (3) both

relating to civil money penalties and a par. (5) identical to

former par. (4). See 1989 Amendment notes below.

-MISC3-

AMENDMENTS

2000 - Subsec. (e)(1)(A)(iii). Pub. L. 106-569, Sec. 1202, in

introductory provisions, inserted '', except with the prior written

approval of the Director,'' after ''to acquire, by purchase or

otherwise, or to retain'' and substituted ''acquire or retain, and

the Director may not authorize acquisition or retention of,'' for

''so acquire or retain''.

Subsec. (m)(4)(B)(iii). Pub. L. 106-569, Sec. 1201(b)(2),

inserted ''as in effect on the day before December 27, 2000,''

after ''section 1465 of this title,''.

1999 - Subsec. (c)(9). Pub. L. 106-102, Sec. 401(a), added par.

(9).

Subsec. (m)(3)(B)(i)(III), (IV). Pub. L. 106-102, Sec. 604(d)(1),

redesignated subcl. (IV) as (III) and struck out heading and text

of former subcl. (III). Text read as follows: ''The savings

association shall not be eligible to obtain new advances from any

Federal home loan bank.''

Subsec. (m)(3)(B)(ii). Pub. L. 106-102, Sec. 604(d)(2), added cl.

(ii) and struck out heading and text of former cl. (ii). Text read

as follows: ''The following additional restrictions shall apply to

a savings association beginning 3 years after the date on which the

savings association should have become or ceases to be a qualified

thrift lender:

''(I) Activities. - The savings association shall not retain any

investment (including an investment in any subsidiary) or engage,

directly or indirectly, in any activity unless that investment or

activity would be permissible for the savings association if it

were a national bank, and is also permissible for the savings

association as a savings association.

''(II) Advances. - The savings association shall repay any

outstanding advances from any Federal home loan bank as promptly as

can be prudently done consistent with the safe and sound operation

of the savings association.''

Subsec. (o)(5)(E). Pub. L. 106-102, Sec. 401(b), substituted

''subsection (c)(2) or (c)(9)(A)(ii) of this section'' for

''subsection (c)(2) of this section, except subparagraph (B)''.

1996 - Subsec. (a)(1)(D). Pub. L. 104-208, Sec. 2203(b), amended

heading and text of subpar. (D) generally. Prior to amendment,

text read as follows: ''The term 'savings and loan holding company'

means any company which directly or indirectly controls a savings

association or controls any other company which is a savings and

loan holding company.''

Subsec. (e)(1)(A)(iii)(VII). Pub. L. 104-208, Sec.

2704(d)(12)(B)(i), which directed insertion of ''or'' at end, was

not executed. See Effective Date of 1996 Amendment note below.

Pub. L. 104-208, Sec. 2203(c)(1), inserted ''or'' at end.

Subsec. (e)(1)(A)(iv). Pub. L. 104-208, Sec. 2704(d)(12)(B)(ii),

which directed insertion of ''and'' at end, was not executed. See

Effective Date of 1996 Amendment note below.

Pub. L. 104-208, Sec. 2203(c)(2), inserted ''and'' at end.

Subsec. (e)(1)(B). Pub. L. 104-208, Sec. 2704(d)(12)(B)(iii),

which directed substitution of ''Deposit Insurance Fund'' for

''Savings Association Insurance Fund or Bank Insurance Fund'', was

not executed. See Effective Date of 1996 Amendment note below.

Subsec. (e)(1)(B)(iii). Pub. L. 104-208, Sec. 2203(c)(3), added

cl. (iii).

Subsec. (e)(2). Pub. L. 104-208, Sec. 2704(d)(12)(B)(iv), which

directed substitution of ''Deposit Insurance Fund'' for ''Savings

Association Insurance Fund or the Bank Insurance Fund'', was not

executed. See Effective Date of 1996 Amendment note below.

Subsec. (m)(1). Pub. L. 104-208, Sec. 2203(e)(3), added subpar.

(A), redesignated existing provisions as subpar. (B), and

redesignated former subpars. (A) and (B) as cls. (i) and (ii),

respectively, of subpar. (B).

Subsec. (m)(3)(E). Pub. L. 104-208, Sec. 2704(d)(12)(B)(v), which

directed the amendment of par. (3) by striking subpar. (E) and

redesignating subpar. (F) as (E), was not executed. See Effective

Date of 1996 Amendment note below.

Subsec. (m)(3)(F). Pub. L. 104-208, Sec. 2704(d)(12)(B)(v), which

directed the amendment of par. (3) by redesignating subpar. (F) as

(E), was not executed. See Effective Date of 1996 Amendment note

below.

Pub. L. 104-201 substituted ''associations serving certain'' for

''association serving transient'' in heading, substituted ''company

if'' for ''company if - '' and cl. (i), struck out cl. (ii)

designation before ''at least 90'', and substituted ''members'' for

''officers'' in two places. Prior to amendment, cl. (i) read as

follows: ''the savings and loan holding company is a reciprocal

interinsurance exchange that acquired control of the insured

institution before January 1, 1984; and''.

Subsec. (m)(3)(G), (H). Pub. L. 104-208, Sec. 2704(d)(12)(B)(v),

which directed the amendment of par. (3) by redesignating subpars.

(G) and (H) as (F) and (G), respectively, was not executed. See

Effective Date of 1996 Amendment note below.

Subsec. (m)(4). Pub. L. 104-208, Sec. 2303(g)(1), substituted

''subsection, the following definitions apply:'' for ''subsection -

'' in introductory provisions.

Subsec. (m)(4)(C)(ii)(VII). Pub. L. 104-208, Sec. 2303(g)(2)(A),

added subcl. (VII).

Subsec. (m)(4)(C)(iii)(VI). Pub. L. 104-208, Sec. 2303(g)(2)(B),

added cl. (VI) and struck out former cl. (VI) which read as

follows: ''Loans for personal, family, household, or educational

purposes, but the dollar amount treated as qualified thrift

investments under this subclause may not exceed the amount which is

equal to 10 percent of the savings association's portfolio

assets.''

Subsec. (m)(4)(D), (E). Pub. L. 104-208, Sec. 2303(g)(3), added

subpars. (D) and (E).

Subsec. (s)(2)(A). Pub. L. 104-208, Sec. 2201(b)(2), substituted

''under any'' for ''under section 5(d)(3) of the Federal Deposit

Insurance Act or any other''.

Subsec. (t). Pub. L. 104-208, Sec. 2203(a), added subsec. (t).

1992 - Subsec. (m)(1), (3)(D). Pub. L. 102-550, Sec. 1606(f)(4),

amended Pub. L. 102-242, Sec. 437. See 1991 Amendment note below.

Subsecs. (s), (t). Pub. L. 102-550, Sec. 1607(b), redesignated

subsec. (t) as (s).

1991 - Subsec. (e)(1). Pub. L. 102-242, Sec. 211(1), inserted

after subpar. (B) ''Consideration of the managerial resources of a

company or savings association under subparagraph (B) shall include

consideration of the competence, experience, and integrity of the

officers, directors, and principal shareholders of the company or

association.''

Subsec. (e)(2). Pub. L. 102-242, Sec. 211(2)(A), inserted after

second sentence ''Consideration of the managerial resources of a

company or savings association shall include consideration of the

competence, experience, and integrity of the officers, directors,

and principal shareholders of the company or association.''

Subsec. (e)(2)(C), (D). Pub. L. 102-242, Sec. 211(2)(B)-(D),

added subpars. (C) and (D).

Subsec. (m)(1)(A). Pub. L. 102-242, Sec. 437(b)(1), as added by

Pub. L. 102-550, Sec. 1606(f)(4)(B), substituted ''65 percent'' for

''70 percent''.

Subsec. (m)(1)(B). Pub. L. 102-242, Sec. 437(a), as amended by

Pub. L. 102-550, Sec. 1606(f)(4)(A), amended subpar. (B)

generally. Prior to amendment, subpar. (B) read as follows: ''the

savings association's qualified thrift investments continue to

equal or exceed 70 percent of the savings association's portfolio

assets, as measured by a daily or weekly average of such qualified

thrift investments and such portfolio assets, for the 2-year period

beginning on July 1, 1991, and for each 2-year period thereafter.''

Subsec. (m)(3)(D). Pub. L. 102-242, Sec. 437(b)(2), as added by

Pub. L. 102-550, Sec. 1606(f)(4)(B), substituted ''on a monthly

average basis in 9 out of the preceding 12 months'' for ''for the

preceding 2-year period''.

Subsec. (m)(4)(B)(iii). Pub. L. 102-242, Sec. 438, substituted

''20 percent'' for ''10 percent''.

Subsec. (m)(4)(C)(ii). Pub. L. 102-242, Sec. 439(1), added subcl.

(VI).

Subsec. (m)(4)(C)(iii)(VI). Pub. L. 102-242, Sec. 440(a),

substituted ''10 percent'' for ''5 percent''.

Subsec. (m)(4)(C)(iii)(VII). Pub. L. 102-242, Sec. 439(2), added

subcl. (VII).

Subsec. (m)(4)(C)(iv). Pub. L. 102-242, Sec. 440(b), substituted

''20 percent'' for ''15 percent''.

Subsec. (t). Pub. L. 102-242, Sec. 502(a), added subsec. (t).

1989 - Pub. L. 101-73, Sec. 301, amended section generally,

substituting subsecs. (a) to (r) relating to regulation of holding

companies for former subsecs. (a) to (d) relating to thrift

industry recovery regulations.

Subsec. (i)(1). Pub. L. 101-73, Sec. 907(k)(1), added par. (1)

and struck out former par. (1) which related to criminal penalties.

Subsec. (i)(2). Pub. L. 101-73, Sec. 907(k)(1), (2), redesignated

par. (3) as (2) and struck out former par. (2) which related to

penalties for making false entries.

Subsec. (i)(3), (4). Pub. L. 101-73, Sec. 907(k)(2), (3),

redesignated par. (4), relating to notice after separation from

service, as (3) and amended par. (3) generally, substituting

provisions relating to and penalties for provisions relating to

notice after separation from service. Former par. (3) redesignated

(2). See Codification note above.

Subsec. (i)(5). Pub. L. 101-73, Sec. 905(j), added par. (5).

Subsec. (m). Pub. L. 101-73, Sec. 303(a), amended subsec. (m)

generally, revising and restating as pars. (1) to (7) provisions of

former pars. (1) to (6).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 2704(d)(12)(B) 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

Amendment by 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, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 303(b) of Pub. L. 101-73 provided that: ''The amendment

made by subsection (a) (amending this section) shall take effect on

July 1, 1991.''

Amendment by section 301 of Pub. L. 101-73 relating to civil

penalties applicable with respect to violations committed and

activities engaged in after Aug. 9, 1989, except that the increased

maximum civil penalties of $5,000 and $25,000 per violation or per

day may apply to such violations or activities committed or engaged

in before such date with respect to an institution if such

violations or activities (1) are not already subject to a notice

issued by the appropriate Federal banking agency or the Board

(initiating an administrative proceeding); and (2) occurred after

the completion of the last report of examination of the institution

by the appropriate Federal banking agency (as defined in section

1813 of this title) occurring before Aug. 9, 1989, see section

305(c) of Pub. L. 101-73, set out as a note under section 1461 of

this title.

Amendment by section 907(k) of Pub. L. 101-73 applicable to

conduct engaged in after Aug. 9, 1989, except that increased

maximum penalties of $5,000 and $25,000 may apply to conduct

engaged in before such date if such conduct is not already subject

to a notice issued by the appropriate agency and occurred after

completion of the last report of the examination of the institution

by the appropriate agency occurring before Aug. 9, 1989, see

section 907(l) of Pub. L. 101-73, set out as a note under section

93 of this title.

SAVINGS PROVISION

Section 302 of title III of Pub. L. 101-73 provided that:

''Notwithstanding the amendment made by this title to section 10 of

the Home Owners' Loan Act (12 U.S.C. 1467a) and the repeal of

section 416 of the National Housing Act (12 U.S.C. 1730i) -

''(1) any plan approved by the Federal Home Loan Bank Board

under such section 10 for any Federal savings association shall

continue in effect as long as such association adheres to the

plan and continues to submit to the Director of the Office of

Thrift Supervision regular and complete reports on the

association's progress in meeting the association's goals under

the plan; and

''(2) any plan approved by the Federal Savings and Loan

Insurance Corporation under such section 416 for any State

savings association shall continue in effect as long as such

association adheres to the plan and continues to submit to the

Federal Deposit Insurance Corporation regular and complete

reports on the association's progress in meeting the savings

association's goals under the plan.''

RULE OF CONSTRUCTION FOR CERTAIN APPLICATIONS

Pub. L. 106-102, title IV, Sec. 401(c), Nov. 12, 1999, 113 Stat.

1436, provided that:

''(1) In general. - In the case of a company that -

''(A) submits an application with the Director of the Office of

Thrift Supervision before the date of the enactment of this Act

(Nov. 12, 1999) to convert a State-chartered trust company

controlled by such company on May 4, 1999, to a savings

association; and

''(B) controlled a subsidiary on May 4, 1999, that had

submitted an application to the Director on September 2, 1998;

the company (including any subsidiary controlled by such company as

of such date of enactment (Nov. 12, 1999)) shall be treated as

having filed such conversion application with the Director before

May 4, 1999, for purposes of section 10(c)(9)(C) of the Home

Owners' Loan Act (12 U.S.C. 1467a(c)(9)(C)) (as added by subsection

(a)).

''(2) Definitions. - For purposes of paragraph (1), the terms

'company', 'control', 'savings association', and 'subsidiary' have

the meanings given those terms in section 10 of the Home Owners'

Loan Act.''

ASSOCIATIONS THAT HAVE PREVIOUSLY FAILED TO REMAIN QUALIFIED THRIFT

LENDERS

Section 303(c) of Pub. L. 101-73 provided that: ''If, as of June

30, 1991, any savings association is subject to any provision of

section 10(m)(3) of the Home Owners' Loan Act (12 U.S.C.

1467a(m)(3)) as in effect on that date, the amendment to this

subsection made by section 303 of the Financial Institutions

Reform, Recovery, and Enforcement Act of 1989 (Pub. L. 101-73),

shall not be construed as reducing the period specified in section

10(m)(3) of such Act.''

CAPITAL RECOVERY; SUBMISSION OF PROPOSED REGULATIONS TO CONGRESS;

EFFECTIVE DATE; STUDY, REPORT, AND CONGRESSIONAL REVIEW

Section 404(c)-(e) of Pub. L. 100-86 required the Federal Home

Loan Bank Board and the Federal Savings and Loan Insurance

Corporation to each submit a report to Congress containing the

proposed regulations required to be prescribed under 12 U.S.C.

1467a and 1730i of this title not later than the end of the 90-day

period beginning on Aug. 10, 1987; required the regulations to be

implemented not later than the end of the 150-day period beginning

on Aug. 10, 1987; and required, not later than Jan. 31, 1989, a

detailed evaluation of, and report the effectiveness of, the

regulations in achieving an increased level of capitalization for

thrift institutions.

SUNSET AND SAVINGS PROVISION

Section ceases to be effective on date that notice of completion

of all net new borrowing by Financing Corporation is published in

Federal Register (Mar. 30, 1992, 57 F.R. 10763), with such

termination not to be construed to affect or limit any authority of

Federal Home Loan Bank Board or Federal Savings and Loan Insurance

Corporation to prescribe any regulation or engage in any activity

with respect to any association or insured institution under any

other provision of law, see section 416 of Pub. L. 100-86, set out

as a note under section 1441 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1462, 1464, 1467, 1468,

1813, 1817, 1820a, 1823, 1828b, 1841, 1843, 3204 of this title;

title 7 section 6f; title 15 sections 18a, 77c, 78o-5, 78q.

-CITE-

12 USC Sec. 1468 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1468. Transactions with affiliates; extensions of credit to

executive officers, directors, and principal shareholders

-STATUTE-

(a) Affiliate transactions

(1) In general

Sections 23A and 23B of the Federal Reserve Act (12 U.S.C. 371c

and 371c-1) shall apply to every savings association in the same

manner and to the same extent as if the savings association were

a member bank (as defined in such Act (12 U.S.C. 221 et seq.)),

except that -

(A) no loan or other extension of credit may be made to any

affiliate unless that affiliate is engaged only in activities

described in section 1467a(c)(2)(F)(i) of this title; and

(B) no savings association may enter into any transaction

described in section 23A(b)(7)(B) of the Federal Reserve Act

with any affiliate other than with respect to shares of a

subsidiary.

(2) Sister bank exemption made available to savings associations

(A) Savings associations controlled by bank holding companies

Every savings association more than 80 percent of the voting

stock of which is owned by a company described in section

1467a(c)(8) of this title shall be treated as a bank for

purposes of section 23A(d)(1) and section 23B of the Federal

Reserve Act, if every savings association and bank controlled

by such company complies with all applicable capital

requirements on a fully phased-in basis and without reliance on

goodwill.

(B) Savings associations generally

Effective on and after January 1, 1995, every savings

association shall be treated as a bank for purposes of section

23A(d)(1) and section 23B of the Federal Reserve Act.

(3) Affiliates described

Any company that would be an affiliate (as defined in sections

23A and 23B of the Federal Reserve Act) of any savings

association if such savings association were a member bank (as

such term is defined in such Act) shall be deemed to be an

affiliate of such savings association for purposes of paragraph

(1).

(4) Additional restrictions authorized

The Director may impose such additional restrictions on any

transaction between any savings association and any affiliate of

such savings association as the Director determines to be

necessary to protect the safety and soundness of the savings

association.

(b) Extensions of credit to executive officers, directors, and

principal shareholders

(1) In general

Subsections (g) and (h) of section 22 of the Federal Reserve

Act (12 U.S.C. 375a, 375b) shall apply to every savings

association in the same manner and to the same extent as if the

savings association were a member bank (as defined in such Act).

(2) Additional restrictions authorized

The Director may impose such additional restrictions on loans

or extensions of credit to any director or executive officer of

any savings association, or any person who directly or indirectly

owns, controls, or has the power to vote more than 10 percent of

any class of voting securities of a savings association, as the

Director determines to be necessary to protect the safety and

soundness of the savings association.

The Director may take enforcement action with respect to

violations of this section pursuant to section 8 or 18(j) of the

Federal Deposit Insurance Act (12 U.S.C. 1818 or 1828(j)), as

appropriate.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 11, formerly Sec. 9, 48 Stat. 135;

Apr. 27, 1934, ch. 168, Sec. 15, 48 Stat. 647; renumbered Sec. 11,

Pub. L. 100-86, title IV, Sec. 402(a), Aug. 10, 1987, 101 Stat.

605; Pub. L. 101-73, title III, Sec. 301, Aug. 9, 1989, 103 Stat.

342; Pub. L. 102-242, title III, Sec. 306(i), Dec. 19, 1991, 105

Stat. 2359; Pub. L. 103-325, title III, Sec. 316, Sept. 23, 1994,

108 Stat. 2223.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Reserve Act, referred to in subsecs. (a)(1), (3) and

(b)(1), is act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended,

which is classified principally to chapter 3 (Sec. 221 et seq.) of

this title. For complete classification of this Act to the Code,

see References in Text note set out under section 226 of this title

and Tables.

-MISC2-

AMENDMENTS

1994 - Subsec. (a)(2)(C). Pub. L. 103-325, Sec. 316(b), struck

out heading and text of subpar. (C) which read as follows:

''(C) Transition rule for well capitalized savings associations.

''(i) In general. - A savings association that is well

capitalized (as defined in section 1831o of this title), as

determined without including goodwill in calculating core

capital, shall be treated as a bank for purposes of section

371c(d)(1) of this title and section 371c-1 of this title.

''(ii) Liability of commonly controlled depository

institutions. - Any savings association that engages under clause

(i) in a transaction that would not otherwise be permissible

under this subsection, and any affiliated insured bank that is

commonly controlled (as defined in section 1815(e)(9) of this

title), shall be subject to subsection (e) of section 1815 of

this title as if paragraph (6) of that subsection did not

apply.''

Pub. L. 103-325, Sec. 316(a), added subpar. (C).

1991 - Subsec. (b)(1). Pub. L. 102-242 substituted ''Subsections

(g) and (h) of section 22'' for ''Section 22(h)''.

1989 - Pub. L. 101-73 amended section generally, substituting

subsecs. (a) to (c) relating to affiliate transactions, extensions

of credit, and administrative enforcement, for former undesignated

paragraph relating to separability of provisions.

1934 - Act Apr. 27, 1934, reenacted section without change.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 316(b) of Pub. L. 103-325 provided that amendment made by

that section is effective Jan. 1, 1995.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102-242 effective upon the earlier of the

date on which final regulations under section 306(m)(1) of Pub. L.

102-242 become effective or 150 days after Dec. 19, 1991, see

section 306(l) of Pub. L. 102-242, set out as a note under section

375b of this title.

TRANSITIONAL RULE FOR CERTAIN TRANSACTIONS WITH AFFILIATES

Section 304 of Pub. L. 101-73 provided that:

''(a) Consistency of Certain Regulations With Section 23A of the

Federal Reserve Act (12 U.S.C. 371c). - Not later than 6 months

after the date of enactment of this Act (Aug. 9, 1989), the

Director of the Office of Thrift Supervision shall revise the

Director's conflicts regulations so as not to prohibit a thrift

institution from purchasing mortgages from a mortgage-banking

affiliate to the same extent as a member bank may do so under

section 250.250 of title 12, Code of Federal Regulations.

''(b) Transitional Period. - Notwithstanding section 11(a) of the

Home Owners' Loan Act (12 U.S.C. 1468(a)) (as added by section 301

of this Act), a thrift institution that, before May 1, 1989, had

received approval from the Federal Savings and Loan Insurance

Corporation pursuant to section 408(d)(6) of the National Housing

Act (former 12 U.S.C. 1730a(d)(6)) as then in effect to purchase

mortgages from a mortgage-banking affiliate may, during the 6-month

period following the date on which final regulations are prescribed

pursuant to subsection (a), continue to engage in transactions for

which it had received such approval. Any savings association that

engages in such transactions pursuant to this subsection shall

comply with the standards that were applicable under section

408(d)(6) as in effect on May 1, 1989.

''(c) Authority To Extend Regulatory Approvals That Would

Otherwise Lapse During the Transitional Period. - The Director of

the Office of Thrift Supervision may extend until the expiration of

the 6-month period described in subsection (b) any approval granted

by the Federal Savings and Loan Insurance Corporation that expires

or would expire before the expiration of that 6-month period. In

determining whether to grant such exemptions, the Director shall

apply the standards that were applicable under section 408(d)(6) of

the National Housing Act (former 12 U.S.C. 1730a(d)(6)) as in

effect on May 1, 1989.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1467a, 1831e of this

title.

-CITE-

12 USC Sec. 1468a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1468a. Advertising

-STATUTE-

No savings association shall carry on any sale, plan, or

practices, or any advertising, in violation of regulations

promulgated by the Director.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 12, as added Pub. L. 101-73, title

III, Sec. 301, Aug. 9, 1989, 103 Stat. 343.)

-CITE-

12 USC Sec. 1468b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1468b. Powers of examiners

-STATUTE-

For the purposes of this chapter, examiners appointed by the

Director shall -

(1) be subject to the same requirements, responsibilities, and

penalties as are applicable to examiners under the Federal

Reserve Act (12 U.S.C. 221 et seq.) and title LXII of the Revised

Statutes; and

(2) have, in the exercise of functions under this chapter, the

same powers and privileges as are vested in such examiners by

law.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 13, as added Pub. L. 101-73, title

III, Sec. 301, Aug. 9, 1989, 103 Stat. 343.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Reserve Act, referred to in par. (1), is act Dec. 23,

1913, ch. 6, 38 Stat. 251, as amended, which is classified

principally to chapter 3 (Sec. 221 et seq.) of this title. For

complete classification of this Act to the Code, see References in

Text note set out under section 226 of this title and Tables.

Title LXII of the Revised Statutes, referred to in par. (1),

consists of R.S. Sec. 5133 to 5244, which are classified to

sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53,

55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93,

93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481

to 485, 501, 541, 548, and 582 of this title. See, also, sections

8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and

Criminal Procedure. For complete classification of R.S. Sec. 5133

to 5244 to the Code, see Tables.

-CITE-

12 USC Sec. 1468c 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1468c. Separability

-STATUTE-

If any provision of this chapter, or the application thereof to

any person or circumstances, is held invalid, the remainder of the

chapter, and the application of such provision to other persons or

circumstances, shall not be affected thereby.

-SOURCE-

(June 13, 1933, ch. 64, Sec. 14, as added Pub. L. 101-73, title

III, Sec. 301, Aug. 9, 1989, 103 Stat. 343.)

-CITE-

12 USC Sec. 1469 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1469. Authority to invest in State housing corporations

-STATUTE-

The Congress finds that Federal savings and loan associations and

national banks should have the authority to assist in financing the

organization and operation of any State housing corporation

established under the laws of the State in which the corporation

will carry on its operation. It is the purpose of this section to

provide a means whereby private financial institutions can assist

in providing housing, particularly for families of low- or

moderate-income, by purchasing stock of and investing in loans to

any such State housing corporation situated in the particular State

in which the Federal savings and loan association or national bank

involved is located.

-SOURCE-

(Pub. L. 93-100, Sec. 5(a), Aug. 16, 1973, 87 Stat. 343.)

-REFTEXT-

REFERENCES IN TEXT

This section, referred to in text, means section 5 of Pub. L.

93-100, which enacted this section and section 1470 of this title

and amended sections 24 and 1464 of this title.

-COD-

CODIFICATION

Section was not enacted as part of the Home Owners' Loan Act of

1933 which comprises this chapter.

-MISC3-

EFFECTIVE DATE

Section 8 of Pub. L. 93-100 provided that: ''The provisions of

this Act (enacting this section and sections 1470 and 1832 of this

title, amending sections 24, 461 note, 1464, 1725, 1727 and 1828 of

this title, and enacting provisions set out as notes under section

548 of this title) shall take effect on the thirtieth day after the

date of its enactment (Aug. 16, 1973), except that the amendments

made by sections 1 and 5 (enacting this section and section 1470 of

this title and amending sections 24, 461 note, and 1464 of this

title) shall take effect on the date of enactment of this Act (Aug.

16, 1973).''

-CITE-

12 USC Sec. 1470 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 12 - SAVINGS ASSOCIATIONS

-HEAD-

Sec. 1470. Federal supervision of insured institutions, State

member and nonmember banks; access to information; definitions

-STATUTE-

(a)(1) The Federal Savings and Loan Insurance Corporation with

respect to insured institutions, the Board of Governors of the

Federal Reserve System with respect to State member insured banks,

and the Federal Deposit Insurance Corporation with respect to State

nonmember insured banks shall by appropriate rule, regulation,

order, or otherwise regulate investment in State housing

corporations.

(2) A State housing corporation in which financial institutions

invest under the authority of this section shall make available to

the appropriate Federal supervisory agency referred to in paragraph

(1) such information as may be necessary to insure that investments

are properly made in accordance with this section.

(b) For the purposes of this section and any Act amended by this

section -

(1) The term ''insured institution'' has the same meaning as in

section 401(a) of the National Housing Act (12 U.S.C. 1724(a)).

(FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

(2) The terms ''State member insured banks'' and ''State

nonmember insured banks'' have the same meaning as when used in

the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.).

(3) The term ''State housing corporation'' means a corporation

established by a State for the limited purpose of providing

housing and incidental services, particularly for families of low

or moderate income.

(4) The term ''State'' means any State, the District of

Columbia, Guam, the Commonwealth of Puerto Rico, and the Virgin

Islands.

-SOURCE-

(Pub. L. 93-100, Sec. 5(d), (e), Aug. 16, 1973, 87 Stat. 344.)

-REFTEXT-

REFERENCES IN TEXT

This section, referred to in subsec. (a)(2), refers to section 5

of Pub. L. 93-100, which enacted this section and section 1469 of

this title and amended sections 24 and 1464 of this title.

This section and any Act amended by this section, referred to in

subsec. (b), are this section and sections 24 par. Seventh,

1464(c), and 1469 of this title.

Section 401(a) of the National Housing Act, referred to in

subsec. (b)(1), which was classified to section 1724 of this title,

was repealed by Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989,

103 Stat. 363.

The Federal Deposit Insurance Act, referred to in subsec. (b)(2),

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.

-COD-

CODIFICATION

Section was not enacted as part of the Home Owners' Loan Act of

1933, which comprises this chapter.

Subsecs. (d) and (e) of section 5 of Pub. L. 93-100 have been

designated subsecs. (a) and (b) for purposes of codification.

-MISC3-

EFFECTIVE DATE

Section effective Aug. 16, 1973, see section 8 of Pub. L. 93-100,

set out as a note under section 1469 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Federal Savings and Loan Insurance Corporation abolished and

functions transferred, see sections 401 to 406 of Pub. L. 101-73,

set out as a note under section 1437 of this title.

-CITE-

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Enviado por:	El remitente no desea revelar su nombre
Idioma:	inglés
País:	Estados Unidos

Palabras clave:

Codificación normativa de EEUU (Estados Unidos)Legislación federal estadounidense # Banks and banking

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