text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/636

 101 STAT. 606 Regulations.

PUBLIC LAW 100-86—AUG. 10, 1987

"(1) IN GENERAL.—Except a s otherwise provided in t h i s section, the Board shall prescribe, by regulation, uniformly applicable accounting standard s to be used by all associations for the purpose of determining compliance with any r u l e or
 * •: regulation issued by the Board or the Federal Savings and Loan

Insurance Corporation to the s a m e degree that generally accepted accounting principles a r e used to determine compliance w i t h rules and regulations of the Federal b a n k i n g agencies. "(2)

EXCEPTION

FOR CERTAIN

INSTITUTIONS

A N D TRANS-

ACTIONS.—Notwithstanding the requirement contained in paragraph (1)(A), the Board may suspend the application of any such standard w i t h respect to any association or t r a n s a c t i o n if— "(A) the application of such standard to a n association and a company that controls such association would result in such association and company being t r e a t e d differently than a b a n k and such b a n k ' s holding company considered on a consolidated basis; and it. vv "(B) the t r a n s a c t i o n w a s consistent w i t h generally im^^i accepted accounting principles w h e n such t r a n s a c t i o n w a s completed. "(c) ASSET EVALUATIONS.—The Board may not r e q u i r e a n association to establish reserves against, or w r i t e down the v a l u e of, any asset in a n a m o u n t i n excess of the a m o u n t which would r e s u l t from a n evaluation of such asset which is consistent w i t h generally accepted accounting principles, except that evaluations which a r e consistent w i t h the practice of the Federal b a n k i n g agencies may be used for supervisory purposes. "(d) ACCOUNTING FOR SUBORDINATED D E B T A N D G O O D W I L L. — N o

> i

provision of this section shall affect the authority of the Board to authorize associations to utilize subordinated debt and goodwill in meeting reserve and other r e g u l a to r y requirements. "(e) Loss DEFERRALS.—Notwithstanding any other provision of this section— "(1) associations may continue, for purposes of determining regulatory n e t w o r t h and capital, to defer and amortize gains and losses from the disposition of assets pursuant to regulations of the Board in effect before the e n a c t m e n t of the Thrift Indust r y Recovery Act; and "(2) the u s e of such deferrals and amortizations, consistently with the regulations referred to i n paragraph (1), shall not reduce the ability of a n association to comply w i than y other r u l e issued or regulation prescribed by the Board. "(f) FEDERAL B A N K I N G A G E N C Y D E F I N E D. — For purposes of t h i s

section, the term 'Federal b a n k i n g agency' means the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation.". (b) STATE CHARTERED, FEDERALLY INSURED T H R I F T S. — Title IV of

12 USC 1730h. Regulations.

the National Housing Act (12 U.S.C. 1724 e t seq.) is amended by adding a t the e n d thereof the following new section: "SEC. 415. ACCOUNTING PRINCIPLES AND OTHER STANDARDS AND REQUIREMENTS. "(a) IN GENERAL.—The Corporation shall prescribe regulations which m a k e the following provisions applicable to insured institutions for regulatory purposes:

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text: Dictionary of National Biography, 1885-1900/Pattison, Dorothy Wyndlow

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


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101 STAT. 607

"(1) ASSET CLASSIFICATION SYSTEM.—An asset classification system shall be established which is consistent with the asset classification system established by the Federal banking agencies, except that such system shall provide the principal supervisory agent of the Federal Home Loan Bank Board for each Federal home loan bank district may, in such agent's discretion— "(A) require an insured institution to create additional general loss reserves on the basis of an evaluation of such institution's assets; or "(B) determine whether a restructured loan asset which is in a nonperforming status or with respect to which the borrowers have otherwise failed to remain in compliance with the repayment terms at the time of such restructuring shall be classified. "(2) APPRAISAL STANDARD.—An appraisal standard shall be established which is consistent with the appraisal standard established by the Federal banking agencies. "(3)

REAPPRAISAL UPON FORECLOSURE.—Generally accepted

accounting principles shall apply to any reappraisal of the value of property securing any loan or other extension of credit upon any foreclosure on such property by an insured institution (or any other action by the insured institution in lieu of foreclosure). "(4) AUTHORIZING USE OF FASB RESTRUCTURING.—If—

15

FOR TROUBLED DEBT

"(A) an insured institution engages in troubled debt restructuring with respect to any loan by the insured institution; and "(B) the troubled debt restructuring complies with Statement of Financial Accounting Standards Numbered 5 and Statement of Financial Accounting Standards Numbered 15 (as issued by the Financial Accounting Standards Board), regulatory accounting principles shall allow the insured institution to account for the effects of the troubled debt restructuring and to account for such insured institution's investment in the original debt instrument (or other agreement which is subject to such restructuring) in the manner provided in such statements. "(5) CERTAIN LOAN LOSS RESERVES TREATED AS CAPITAL FOR CERTAIN PURPOSES.—Any amount which an insured institution

holds in any account as a general loss reserve may be treated, at the option of the insured institution, as capital of the insured institution for purposes of determining regulatory capital or regulatory net worth with respect to such insured institution, to the extent such treatment is consistent with the procedures established by the Federal banking agencies. "(b) UNIFORM GAAP ACCOUNTING STANDARDS REQUIRED.— "(1) IN GENERAL.—Except as otherwise provided in this section, the Corporation shall prescribe, by regulation, uniformly applicable accounting standards to be used by all insured institutions for the purpose of determining compliance with any rule or regulation issued by the Corporation or the Federal Home Loan Bank Board to the same degree that generally accepted accounting principles are used to determine compliance with rules and regulations of the Federal banking agencies.

n

Regulations. ^

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text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/638

 101 STAT. 608

PUBLIC LAW 100-86—AUG. 10, 1987 "(2)

^ J '\ ' ' ^

EXCEPTION

FOR CERTAIN

INSTITUTIONS

AND TRANS-

ACTIONS.—Notwithstanding the requirement contained in paragraph (1)(A), the Corporation may suspend the appHcation of any such standard with respect to any insured institution or any transaction if— "(A) the application of such standard to an insured institution and a company that controls such insured ' institution would result in such insured institution and company being treated differently than a bank and such bank's holding company considered on a consolidated basis; and "(B) the transaction was consistent with generally accepted accounting principles when such transaction was completed. "(c) ASSET EVALUATIONS.—The Corporation may not require an

insured institution to establish reserves against, or write down the value of, any asset in an amount in excess of the amount which would result from an evaluation of such asset which is consistent with generally accepted accounting principles, except that evaluations which are consistent with the practice of the Federal banking agencies may be used for supervisory purposes. "(d) ACCOUNTING FOR SUBORDINATED DEBT AND GOODWILL.—No

12 USC 1467 note.

provision of this section shall affect the authority of the Corporation to authorize insured institutions to utilize subordinated debt and goodwill in meeting reserve and other regulatory requirements. "(e) Loss DEFERRALS.—Notwithstanding any other provision of this section— "(1) insured institutions may continue, for purposes of determining regulatory net worth and capital, to defer and amortize gains and losses from the disposition of assets pursuant to regulations of the Corporation in effect before the enactment of the Thrift Industry Recovery Act; and "(2) the use of such deferrals and amortizations, consistently with the regulations referred to in paragraph (1), shall not Ji reduce the ability of an insured institution to comply with any •' "(f) FEDERAL BANKING AGENCY DEFINED.—For purposes of this section, the term 'Federal banking agency' means the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation.". (c) REPORT TO CONGRESS.—Not later than the end of the 90-day period beginning on the date of the enactment of this Act— (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) to the Congress; and (2) the Federal Savings and Loan Insurance Corporation shall submit a copy of the proposed regulations required to be pre'^ scribed under the amendment made by subsection (b) to the Congress. (d) EFFECTIVE DATE OF REGULATIONS.—
 * other rule issued or regulation prescribed by the Corporation.

12 USC 1467 note.

^

(1) IN GENERAL.—Except as provided in paragraph (2), any regulation required to be prescribed under the amendment made by subsections (a) and (b) shall be implemented not later than the end of the 150-day period beginning on the date of the enactment of this Act. (2) UNIFORM GAAP ACCOUNTING STANDARDS.—

-IT

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text: Dictionary of National Biography, 1885-1900/Pattison, Granville Sharp


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/639

 PUBLIC LAW 100-86—AUG. 10, 1987

f«t;

^'

.

,., „, f...

101 STAT. 609

(A) IN GENERAL.—Except as provided in subparagraph (B), Effective date. 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 ^..^ December 31, 1993.

SEC. 403. AUDIT OF FEDERAL ASSET DISPOSITION ASSOCIATION.

Section 9105(a) of title 31, United States Code (relating to audits) is amended by inserting at the end thereof the following new paragraph: "(3)(A) Notwithstanding any other provision of law and under such regulations as the Comptroller General may prescribe, the Comptroller General shall perform a financial audit of the Federal Asset Disposition Association on whatever basis the Comptroller General determines to be necessary. "(B) The Federal Asset Disposition Association shall— "(i) make available to the Comptroller General for audit all records and property of, or used or managed by, the Association > <>^c, which may be necessary for the audit; and "(ii) provide the Comptroller General with facilities for verifying transactions with the balances or securities held by any depositary, fiscal agent, or custodian. "(C) For purposes of this paragraph, the term 'Federal Asset Disposition Association' means the savings and loan association established by the Federal Savings and Loan Insurance Corporation under section 406 of the National Housing Act to manage and 12 USC 1729. liquidate nonperforming assets on behalf of such Corporation in accordance with such section.". SEC. 404. THRIFT INDUSTRY RECOVERY REGULATIONS.

(a) FEDERALLY CHARTERED THRIFTS.—The Home Owners' Loan Act of 1933 (12 U.S.C. 1461 et seq.) is amended by adding after section 9 (as added by section 402(a) of this title) the following new section: "SEC. 10. THRIFT INDUSTRY RECOVERY REGULATIONS.

"(a) IN GENERAL.—The Board shall prescribe capital recovery regulations for regulating and supervising troubled but well-managed and viable associations in a manner which will maximize the long-term viability of the thrift industry at the lowest cost to the Federal Savings and Loan Insurance Corporation.

12 USC 1467a.

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Page:United States Statutes at Large Volume 101 Part 1.djvu/640

 101 STAT. 610

Minorities.

Reports.

PUBLIC LAW 100-86—AUG. 10, 1987

"(b) CAPITAL RECOVERY.—The regulations required to be prescribed under subsection (a) shall provide that an association with net worth of 0.5 percent or more, as determined in accordance with regulatory accounting principles, may be allowed to continue to operate and be eligible for capital forbearance if— "(1) the Board determines that the association's weak capital condition is— . "(A) primarily the result of losses recognized on, the nonperforming status of, or the failure of borrowers to otherwise remain in compliance with the repayment terms of, loans, or participations in loans, the value of the collateral for which has been adversely affected by economic conditions in a designated economically depressed region; or "(B) primarily the result of losses recognized on, the nonperforming status of, or the failure of borrowers to otherwise remain in compliance with the repayment terms of, loans, or participation in loans, made by a minority 1; association 50 percent or more of whose loan assets are minority loans and 50 percent or more of whose originated loans are construction or permanent loans for 1 to 4 family residences; "(2) the Board determines that the association's weak capital I condition is not the result of imprudent operating practices, ,y, such as practices that were speculative at the time the practices were undertaken, insider abuses, excessive operating expenses, dividends paid by the association, or actions taken solely for the purpose of qualifying for capital recovery under this subsection; "(3) the Board approves a plan submitted by the association for increasing such association's capital; and "(4) the association— "(A) adheres to the plan approved under paragraph (3); and "(B) submits regular and complete reports on such lii association's progress in meeting the association's goals under such plan. "(c) ASSOCIATIONS WITH NET WORTH OF LESS THAN 0.5 PERCENT MAY PARTICIPATE IN CAPITAL RECOVERY.—In the regulations

.mTi

required to be prescribed under subsection (a), the Board may provide that a well-managed association with a net worth of less than 0.5 percent, as determined in accordance with regulatory accounting principles, may, in the discretion of the Board, be allowed to continue to operate and be eligible for capital forbearance if— "(1) the conditions described in each paragraph of subsection (a) have been met with respect to such association; and "(2) the association has reasonable and demonstrable prospects of returning to a satisfactory capital level, as determined by the Board. "(d) DEFINITIONS.—For purposes of this section— "(1) DESIGNATED ECONOMICALLY DEPRESSED REGION DEFINED.—

The term 'designated economically depressed region' means any geographical region which the Board determines, by regulation, to be a region within which real estate values have suffered serious declines due to severe economic conditions, such as a decline in energy or agricultural values or prices.

�


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Page:United States Statutes at Large Volume 101 Part 1.djvu/641

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 611

"(2) MINORITY.—The term 'minority' means any Black American, Native American, Hispanic American, or Asian American. "(3) MINORITY ASSOCIATION.—The term 'minority association' means any association of which— "(A) more than 50 percent of the ownership or control (of such association) is held by minority individuals; and "(B) more than 50 percent of the net profit or loss (of such association) accrues to minority individuals. "(4) MINORITY LOAN.—The term 'minority loan' means any obligation or other extension or advance of credit which is made to 1 or more minority individuals or to any person which is owned or controlled by 1 or more minority individuals.",

..,,.^ ^

(b) STATE CHARTERED, FEDERALLY INSURED THRIFTS.—Title IV of

the National Housing Act (12 U.S.C. 1724 et seq.) is amended by adding after section 415 (as added by section 402(b) of this title) the following new section: "SEC. 416. THRIFT INDUSTRY RECOVERY REGULATIONS.

12 USC 17301.

"(a) IN GENERAL.—The Corporation shall prescribe capital recovery regulations for regulating and supervising troubled but wellmanaged and viable insured institutions in a manner which will maximize the long-term viability of the thrift industry at the lowest cost to the Corporation. "(b) CAPITAL RECOVERY.—The regulations required to be prescribed under subsection (a) shall provide that an insured institution with net worth of 0.5 percent or more, as determined in accordance with regulatory accounting principles, may be allowed to continue to operate and be eligible for capital forbearance if— "(1) the Corporation determines that the insured institution's weak capital condition is— "(A) primarily the result of losses recognized on, the nonperforming status of, or the failure of borrowers to otherwise remain in compliance with the repayment terms of, loans, or participations in loans, the value of the collateral for which has been adversely affected by economic conditions in a designated economically depressed region; .. or "(B) primarily the result of losses recognized on, the Minorities. ^'* ^ nonperforming status of, or the failure of borrowers to otherwise remain in compliance with the repayment terms of, loans, or participation in loans, made by a minority institution 50 percent or more of whose loan assets are r. minority loans and 50 percent or more of whose originated />, loans are construction or permanent loans for 1 to 4 family residences; "(2) the Corporation determines that the insured institution's « weak capital condition is not the result of imprudent operating practices, such as practices that were speculative at the time the practices were undertaken, insider abuses, excessive operating expenses, dividends paid by the insured institution, or actions taken solely for the purpose of qualifying for capital I recovery under this subsection; i "(3) the Corporation approves a plan submitted by the insured ,, institution for increasing such institution's capital; and J "(4) the insured institution— "(A) adheres to the plan approved under paragraph (3);
 * I

and

91-194 O - 90 - 21: QL.3 Part 1

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text: Dictionary of National Biography, 1885-1900/Pattison, Mark


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/642

 101 STAT. 612 Reports.

PUBLIC LAW 100-86—AUG. 10, 1987 "(B) submits regular and complete reports on such institution's progress in meeting the institution's goals under such plan.

"(c) THRIFTS WITH N E T WORTH OF LESS THAN 0.5 PERCENT MAY PARTICIPATE IN CAPITAL RECOVERY.—In the regulations required to

be prescribed under subsection (a), the Corporation may provide that a well-managed insured institution with a net worth of less than 0.5 percent, as determined in accordance with regulatory accounting principles, may, in the discretion of the Corporation, be allowed to continue to operate and be eligible for capital forbearance if— "(1) the conditions described in each paragraph of subsection ^ (a) have been met with respect to such insured institution; and ^ "(2) the insured institution has reasonable and demonstrable ^ prospects of returning to a satisfactory capital level, as determined by the Corporation, "(d) DEFINITIONS.—For purposes of this section— "(1) DESIGNATED ECONOMICALLY DEPRESSED REGION DEFINED.—

12 USC 1467a note.

12 USC 1467a note.

12 USC 1467a note.

 * ,, The term 'designated economically depressed region' means any

geographical region which the Corporation determines, by regulation, to be a region within which real estate values have . suffered serious declines due to severe economic conditions, such as a decline in energy or agricultural values or prices. "(2) MINORITY.—The term 'minority' means any Black Amer;, ican. Native American, Hispanic American, or Asian American. "(3) MINORITY INSTITUTION.—The term 'minority institution' meansany insured institution of which— "(A) more than 50 percent of the ownership or control (of f..i;4j such insured institution) is held by minority individuals; and "(B) more than 50 percent of the net profit or loss (of such insured institution) accrues to minority individuals. "(4) MINORITY LOAN.—The term 'minority loan' means any obligation or other extension or advance of credit which is made to 1 or more minority individuals or to any person which is owned or controlled by 1 or more minority individuals.". (c) IMPLEMENTATION REPORT TO CONGRESS.—The Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation shall each submit a report to Congress containing the proposed regulations required to be prescribed under subsection (a) or (b), as the case may be, not later than the end of the 90-day period beginning on the date of the enactment of this Act. (d) EFFECTIVE DATE OF REGULATIONS.—The regulations required to be prescribed under the amendments made by subsections (a) and (b) shall be implemented not later than the end of the 150-day period beginning on the date of the enactment of this Act. (e) AGENCY STUDY AND REPORT ON, AND CONGRESSIONAL REVIEW OF, CAPITAL RECOVERY.— (1) STUDY AND REPORT REQUIRED.—Not later than January

31, 1989, the Federal Home Loan Bank Board and the Federal (A) conduct a detailed evaluation of the effectiveness of >: ica 1' ^jjg regulations required to be prescribed under the amendments made by subsections (a) and (b) in achieving an increased level of capitalization for thrift institutions; and '* • ''^' (B) submit a report to the Congress containing the findings and conclusions of the Board and the Corporation in
 * ' Savings and Loan Insurance Corporation shall jointly—

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Page:United States Statutes at Large Volume 101 Part 1.djvu/643

 PUBLIC LAW 100-86—AUG. 10, 1987 •

connection graph (A).

with

the study

required

under

101 STAT. 613 subpara-

(2) CONGRESSIONAL REVIEW.—The Committee on Banking, Fi-

nance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate shall, upon receipt of the report under paragraph (1)(B), review the regulations and recommend such revisions to the regulations as may be appropriate. SEC. 405. CAPITAL INSTRUMENT PURCHASE PROGRAM.

' ^ •

i;-

Section 406(f) of the National Housing Act (12 U.S.C. 1729(f)) is amended by adding at the end thereof the following new paragraph: "(6) CAPITAL INSTRUMENT PURCHASE PROGRAM.—

"(A) IN GENERAL.—Notwithstanding any other provision of Federal law (other than subparagraph (O) and without limitation on any other authority of the Corporation or the Federal Home Loan Bank Board, the Corporation may exercise its authority to purchase capital instruments in the case of any insured institution for which a plan for increasing capital has been approved by the Corporation pursuant to section 416 or by such Board pursuant to section 10 of the Home Owners' Loan Act of 1933. "(B) TERMS AND CONDITIONS.—Except as provided in subpara-

Ante, p. 6ii. Ante, p. 609.

graph (C), the purchase of capital instruments under subparagraph (A) shall be subject to such terms and conditions as the Corporation may prescribe. "(C) WARRANT REQUIREMENT.—

"(i) IN GENERAL.—In the case of an insured institution with capital stock, the Corporation shall require such institution to negotiate with the Corporation warrants for the purchase of shares of stock as a condition for the purchase of capital instruments by the Corporation, on such terms and conditions as the Corporation may prescribe, "(ii) MUTUAL INSTITUTIONS.—If any insured institution— "(I) which is organized on a mutual basis; and "(II) with respect to which the Corporation has purs uo'^ chased capital instruments, >* converts to a stock charter, such insured institution shall comply with the requirements of clause (i) immediately upon such conversion. "(iii) MAXIMUM AMOUNT.—The amount of shares for which warrants are negotiated under subparagraph (A) with respect to any insured institution shall not exceed the total number of shares outstanding at the time such warrants are issued to the Corporation. "(iv) REDEMPTION BY INSURED INSTITUTION.—Upon the full 1 i3r • redemption of the capital instruments by an insured institution, including all accumulated unpaid dividends, the i >•:. Corporation may, at the discretion of the Corporation, tender the warrants for redemption by the insured institution. "(v) PAYMENT ON REDEMPTION.—Upon any redemption of warrants under clause (iv), the insured institution shall pay the Corporation the difference between the fair market c value of the warrants on the date of redemption and the exercise price of such warrants.

... ^,

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Page:United States Statutes at Large Volume 101 Part 1.djvu/644

 101 STAT. 614

PUBLIC LAW 100-86—AUG. 10, 1987 «.? •

"(vi) PROCEEDS FROM REDEMPTION OF WARRANTS.—The

proceeds of any sale or redemption of warrants under clause (iv) shall be deposited in and be considered a part of the primary reserve established under section 404(a). "(D) DIVIDENDS.—Capital instruments purchased by the Corporation under subparagraph (A) shall pay dividends at a reasonable rate, as determined by the Corporation, and the rate shall be indexed to obligations issued by the Secretary of the Treasury under subchapter I of chapter 31 of title 31, United States Code.

12 USC 1727.

31 USC 3101.

"(E) PRIORITY.—

Claims.

^ ,s .

'^ r

"(i) IN GENERAL.—In the event of the liquidation or reorganization of any insured institution with respect to which the Corporation holds capital instruments under this paragraph, the Corporation shall have priority over— "(I) any claim, other than a claim described in clause (ii), arising out of any equity interest in such insured institution; and "(II) any right of any holder of an equity interest in such insured institution to participate in future earnings, "(ii) DIVIDENDS.— "(I) No OTHER DIVIDENDS.—No dividends may be paid

'

on any class of equity instruments of any insured institution (other than a capital instrument held by the Corporation) until all dividends, including accumulated unpaid dividends, on the capital instruments are paid. "(II) PROHIBITION CEASES IF PAYMENT REDEMPTION PAYMENTS AND DIVIDENDS ARE CURRENT.—If all pay-

^

ments on capital instruments held by the Corporation with respect to any insured institution, including redemption payments and dividends, are current, dividends on other classes of equity instruments of such insured institution may be paid, notwithstanding subclause (I).".

SEC. 406. MINIMUM CAPITAL REQUIREMENTS.

(a) FEDERALLY CHARTERED THRIFTS.—Section 5 of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464) is amended by adding at the end thereof the following new subsection: "(s) MINIMUM CAPITAL REQUIREMENTS.—

12 USC 3907. 12 USC 3902.

"(1) IN GENERAL.—Consistent with the purposes of section 908 of the International Lending Supervision Act of 1983 and the capital requirements established pursuant to such section by the appropriate Federal banking agencies (as defined in section 903(1) of such Act), the Board shall require all associations to achieve and maintain adequate capital by— "(A) establishing minimum levels of capital for associations; and "(B) using such other methods as the Board determines to be appropriate. "(2) MINIMUM CAPITAL LEVELS MAY BE DETERMINED BY BOARD ON CASE-BY-CASE BASIS.—The Board may establish the minimum

level of capital for an association at such amount or at such ratio of capital-to-assets as the Board determines to be necessary or appropriate for such association in light of the particular circumstances of the association.

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text: Dictionary of National Biography, 1885-1900/Pattison, William


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/645

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 615

"(3) UNSAFE OR UNSOUND PRACTICE.—In the Board's discretion, the Board may treat the failure of any association to maintain capital at or above the minimum level required by the Board under this subsection as an unsafe or unsound practice within the meaning of subsection (d). "(4) DIRECTIVE TO INCREASE CAPITAL.—

"(A) PLAN MAY BE REQUIRED.—In addition to any other

action authorized by law, including paragraph (3), the Board may issue a directive requiring any association which fails to maintain capital at or above the minimum level required by the Board to submit and adhere to a plan for increasing capital which is acceptable to the Board. "(B) ENFORCEMENT OF PLAN.—Any directive issued and plan approved under subparagraph (A) shall be enforceable under subsection (d)(8) to the same extent and in the same manner as an outstanding order which was issued under subsection (d)(2) and has become final. "(5) PLAN TAKEN INTO ACCOUNT IN OTHER PROCEEDINGS.—The

Board may— "(A) consider an 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 approval of the Board 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 Board; and "(B) disapprove any proposal referred to in subparagraph (A) if the Board determines that the proposal would adversely affect the ability of the association to comply with such plan.", (b) STATE CHARTERED, FEDERALLY INSURED THRIFTS.—Section 407

of the National Housing Act (12 U.S.C. 1730) is amended by adding at the end thereof the following new subsection: "(t) MINIMUM CAPITAL REQUIREMENTS.—

^ ' '

"(1) IN GENERAL.—Consistent with the purposes of section 908 of the International Lending Supervision Act of 1983 and the 12 USC 3907. capital requirements established pursuant to such section by the appropriate Federal banking agencies (as defined in section 903(1) of such Act), the Corporation shall require all insured 12 USC 3902. institutions to achieve and maintain adequate capital by— "(A) establishing minimum levels of capital for insured institutions; and "(B) using such other methods as the Corporation determines to be appropriate. "(2) MINIMUM CAPITAL LEVELS MAY BE DETERMINED BY CORPORATION ON CASE-BY-CASE BASIS.—The Corporation may estab-

lish the minimum level of capital for an insured institution at such amount or at such ratio of capital-to-assets as the Corporation determines to be necessary or appropriate for such insured institution in light of the particular circumstances of the insured institution. "(3) UNSAFE OR UNSOUND PRACTICE.—In the Corporation's discretion, the Corporation may treat the failure of any insured institution to maintain capital at or above the minimum level required by the Corporation under this subsection as an unsafe or unsound practice within the meaning of subsection (e).

�


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Page:United States Statutes at Large Volume 101 Part 1.djvu/646

 101 STAT. 616

PUBLIC LAW 100-86—AUG. 10, 1987 "(4) DIRECTIVE TO INCREASE CAPITAL.— "(A) PLAN MAY BE REQUIRED.—In addition to any other

3;

action authorized by law, including paragraph (3), the Corporation may issue a directive requiring any insured institution which fails to maintain capital at or above the minimum level required by the Corporation to submit and adhere to a plan for increasing capital which is acceptable to the Corporation. "(B) ENFORCEMENT OF PLAN.—Any directive issued and

'•

plan approved under subparagraph (A) shall be enforceable under subsection (k) to the same extent and in the same manner as an outstanding order which was issued under subsection (e) and has become final. "(5) PLAN TAKEN INTO ACCOUNT IN OTHER PROCEEDINGS.—The

Corporation may— "(A) consider an insured institution's progress in adhering to any plan required under paragraph (4) whenever sfii* such insured institution or any affiliate of such insured institution (including any company which controls such insured institution) seeks the approval of the Corporation for any proposal which would have the effect of diverting V earnings, diminishing capital, or otherwise impeding such - . insured institution's progress in meeting the minimum level of capital required by the Corporation; and "(B) disapprove any proposal referred to in subparagraph •iii.:, (A) if the Corporation determines that the proposal would adversely affect the ability of the insured institution to comply with such plan.". 12 USC 1437

SEC. 407. IMPROVEMENTS IN THE SUPERVISORY PROCESS. (a) ENHANCED FLEXIBILITY IN THE SUPERVISORY PROCESS.—The

12 USC 1725. t; x. J .,r Vi,

Federal Home Loan Bank Board (acting as such under the Federal Home Loan Bank Act and in the Board's capacity as the board of trustees of the Federal Savings and Loan Insurance Corporation under section 402(a) of the National Housing Act) shall issue guidelines which provide greater flexibility for supervisory agents, examiners, and other employees and agents of the Board, the Federal Savings and Loan Insurance Corporation, and the Federal home loan banks in applying regulations, standards, and other requirements of the Board or such Corporation with regard to particular situations or particular thrift institutions. (b) PARTICULAR GUIDEUNES REQUIRED.—The guidelines issued under subsection (a) shall contain the following provisions: (1) FLEXIBLE APPROVAL PROCESS FOR RENEGOTIATED LOANS.—A

provision establishing a flexible procedure for obtaining supervisory approval of the terms of loans renegotiated by thrift institutions if a supervisory agreement is in effect between such institution and the principal supervisory agent of the Federal home loan bank district where such institution is located. (2) RECOGNITION OF ADDITIONAL FINANCIAL CAPABILITY OF A

I

BORROWER.—A provision permitting examiners and other employees and agents of the Board, the Federal Savings and Loan Insurance Corporation, and the Federal home loan banks to take into account, to the extent consistent with the practices of the Federal banking agencies, other financial resources of a borrower (in addition to the financial assets of the borrower which are pledged to secure a loan) in classifying the assets of

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text: Dictionary of National Biography, 1885-1900/Patton, George


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101 STAT. 617

the thrift institution which holds a loan made to such borrower or with recourse to the borrower. (3) APPRAISAL REVIEW.—A provision establishing an appraisal review system to avoid overly optimistic or conservative appraisals with the goal of achieving appraisals that are more consistent in reflecting underlying values. (4) l-TO-4 FAMILY RESIDENCES.—A provision eliminating the d scheduled item system except as such system relates to l-to-4 family residences. (c) DEFINITIONS.—For purposes of subsections (a) and (b)— (1) THRIFT INSTITUTION.—The term "thrift institution" c means— (A) any association (within the meaning given to such term in section 2(d) of the Home Owners' Loan Act of 1933); (B) any insured institution (within the meaning given to • such term in section 401(a) of the National Housing Act); ^ and (C) any member (within the meaning given to such term in section 2(4) of the Federal Home Loan Bank Act). • ^ (2) BOARD.—The term "Board" means the Federal Home Loan (3) FEDERAL BANKING AGENCY.—The term "Federal banking agency" means the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation. (d) NONADVERSARIAL REVIEW OF CERTAIN SUPERVISORY DECISIONS.—The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by inserting after section 22 the following new section: "SEC. 22A. INFORMAL REVIEW OF CERTAIN SUPERVISORY DECISIONS. "(a) REVIEW OF CERTAIN SUPERVISORY DECISIONS.—The Board shall establish an informal review procedure under which any association, insured institution, or member may obtain a review, by the principal supervisory agent for the Federal home loan bank district in which such association, institution, or member is located, of any decision by any examiner or supervisory agent of the Federal home loan bank for such district with respect to— "(1) the appraisal value of— ^,,, "(A) any loan held by the association, insured institution, or member; or "(B) any property serving as collateral to secure the repayment of any loan (held by the association, institution, or member); "(2) the classification of any loan held by the association, institution, or member; or "(3) any requirement imposed on the association, institution, or member to establish or to add to a reserve or allowance for a possible loss on any loan held by such institution. "(b) STANDARDS FOR REVIEW.—The review procedure established pursuant to subsection (a) shall provide that the principal supervisory agent for the appropriate Federal home loan bank district, after taking into account the report described in subsection (c)(2) by the arbiter (or panel of arbiters), shall approve, modify, or set aside any decision for which a review has been requested on the basis of the supervisory agent's review of all the facts and the regulations applicable to such decision and shall take such action as such agent
 * Bank Board.

12 USC 1462. 12 USC 1724. 12 USC 1422.

12 USC 1442a.

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PUBLIC LAW 100-86—AUG. 10, 1987

may determine to be necessary or appropriate in light of such review. "(c) APPOINTMENT OF INDEPENDENT ARBITER.—The review proce-

... _

dure established pursuant to subsection (a) shall provide for the appointment (by the principal supervisory agent for the appropriate Federal home loan bank district, upon the filing of a request for a review under this section by an association, insured institution, or member) of an independent arbiter (or, upon the request of such association, institution, or member, a panel of independent arbiters) who shall— "(1) review the decision which is the subject of the review in light of all the facts of the case and the regulations applicable to such determination; and "(2) report the conclusions and recommendations of the independent arbiter (or the panel) with respect to the decision under review to the principal supervisory agent for the appropriate Federal home loan bank district and the association, insured institution, or member. "(d) CONSOLIDATION OF REVIEWS OF RELATED DECISIONS.—The principal supervisory agent may consolidate requests for review under this section of related decisions and conduct a single review of all such related decisions. "(e) 25-DAY ARBITER REVIEW PERIOD; 20-DAY PSA REVIEW PERIOD.— "(1) ARBITER REVIEW.—The review procedure established

i.. i.:''.

pursuant to subsection (a) shall provide that any review described in subsection (c) by an arbiter (or panel of arbiters) shall be completed before the end of the 25-day period beginning on the date the request for the review was filed with the principal supervisory agent. "(2) REVIEW BY PSA.—The review procedure established pursuant to subsection (a) shall provide that any review by the principal supervisory agent of an arbiter's report described in subsection (c)(2) (or the report of a panel of arbiters) shall be completed before the end of the 20-day period beginning on the date the agent receives such report. "(3) ONLY BUSINESS DAYS INCLUDED.—Saturdays, Sundays, and

holidays shall not be taken into account in determining the periods described in paragraphs (1) and (2). "(f) CLARIFICATION OF RELATIONSHIP BETWEEN INFORMAL REVIEW AND OTHER AVAILABLE REVIEW.— "(1) INFORMAL REVIEW NOT EXCLUSIVE.—The informal review

procedure established pursuant to subsection (a) for reviewing any decision referred to in such subsection shall be in addition to, and not in lieu of, any other procedure established by law, or any regulation of the Board, which provides for formal administrative or judicial review of such decision. "(2) ONLY THE ORIGINAL DECISION IS WITHIN SCOPE OF ADMINISTRATIVE AND JUDICIAL REVIEW.—If any association, insured

institution, or member seeks administrative or judicial review of any examiner or supervisory agent decision for which such association, insured institution, or member obtained an informal review under the procedure established pursuant to subsection (a), such administrative or judicial review shall be carried out— "(A) without regard to the fact that such informal review was made; and .,; . v.. .« - . ^

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"(B) without admitting into evidence, or otherwise taking into account, the findings, recommendations, or conclusions of the principal supervisory agent and the independent arbiter (or the panel of independent arbiters) which conducted the informal review. "(3) INFORMAL REVIEW NOT SUBJECT TO FORMAL REVIEW.—The

findings, recommendations, or conclusions of any principal supervisory agent who conducted a review under the procedure established pursuant to subsection (a) are not decisions which may be subject to review by the Board or any court under any regulation of the Board or any law. "(g) EXPENSES OF REVIEW BORNE BY ASSOCIATION, INSTITUTION, OR

MEMBER.—All reasonable expenses incurred as a direct or indirect result of any review under the procedure established pursuant to subsection (a) shall be paid by the association, insured institution, or member which requested the review.". SEC. 408. PREVENTION OF INSOLVENCIES.

Before the end of the 6-month period beginning on the date of the enactment of this Act, the Federal Home Loan Bank Board shall submit a report to the Congress containing— (1) a detailed description of the steps the Board has taken and is planning to take to prevent additional failures of thrift institutions; and (2) such recommendations for legislation as the Board may determine to be appropriate.

Reports..

SEC. 409. FEASIBILITY STUDY RELATING TO ESTABLISHMENT OF ASSET HOLDING CORPORATION.

(a) STUDY REQUIRED.—The Federal Home Loan Bank Board shall study the feasibility of establishing an asset holding corporation to relieve thrift institutions of the burden of carrying and maintaining troubled real estate assets by providing for the acquisition of such assets by such corporation. (b) FACTORS TO B E CONSIDERED.—In studying the feasibility of establishing an asset holding corporation, the Federal Home Loan Bank Board shall— (1) estimate the cost of establishing and operating such corporation for the purposes intended; (2) consider whether sufficient capital for the establishment and operation of the corporation can be obtained from the private sector or from the Federal home loan bank system without any Government investment in the corporation; (3) develop standards for determining the type and condition of real estate assets which would be eligible for acquisition by such corporation and estimate the total value of such real estate; and (4) develop a proposal for allowing participating thrift institutions to obtain an equity participation in the corporation. (c) REPORT REQUIRED.—The Federal Home Loan Bank Board shall prepare and submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, not later than 6 months after the date of the enactment of this Act, a report containing the findings and conclusions of the Board with respect to the study required under subsection (a) and any recommendation of

Real property.

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the Board for legislation which the Board determines may be necessary or appropriate. 12 USC 1437 note.

SEC. 410. NOTICE AND DISAPPROVAL PROCEDURE REQUIRED FOR ALL APPLICATIONS TO THE BANK BOARD.

(a) IN GENERAL.—The Federal Home Loan Bank Board shall promulgate guidelines which provide that with respect to each type of completed application (other than an application under section 408(g) of the National Housing Act) by any person for approval by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation, the application shall be deemed to be approved as of the end of the period prescribed under such guidelines unless the Board or the Federal Savings and Loan Insurance Corporation, as the case may be, approves or disapproves such application before the end of such period. (b) APPLICATION FOR HOLDING COMPANY INDEBTEDNESS.—Section

''(•^.

408(g) of the National Housing Act (12 U.S.C. 1730a(g)) is amended by adding at the end thereof the following new paragraph: "(7) Any completed application under this subsection shall be deemed to be approved as of the end of the 60-day period beginning on the date such application was filed, unless the Corporation issues notice of approval or disapproval of the application before the end of such period.". (c) REPORT TO CONGRESS.—Before the end of the 60-day period

'

'' ' '

beginning on the date of the enactment of this Act, the Federal Home Loan Bank Board shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing the guidelines required to be promulgated under subsection (a). (d) EFFECTIVE DATE.—The guidelines required to be promulgated under subsection (a) shall take effect at the end of the 60-day period referred to in subsection (c).

12 USC 1437

SEC. 41L GUIDELINES FOR ASSET DISPOSITION.

 * n^G

Reports.

^^^ later than 6 months after the date of the enactment of this Act, the Federal Home Loan Bank Board shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing appropriate new guidelines which— (1) prevent the dumping of assets over which it has direct or indirect control; and (2) the Board shall promulgate at the end of such period.

12 USC 1437 note.

SEC. 412. EXPANSION OF USE OF UNDERUTILIZED MINORITY THRIFT INSTITUTIONS.

(a) CONSULTATION ON EXPANDED USE.—The Secretary of the Treasury shall consult with the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation on methods for increasing the use of underutilized minority thrift institutions as depositaries or financial agents of Federal agencies. (b) DESIGNATION OF MINORITY THRIFT INSTITUTIONS INVOLVED IN CAPITAL RECOVERY PROGRAM AS UNDERUTILIZED THRIFT.—If the Fed-

Ante, p. 609.

eral Home Loan Bank Board approves any plan submitted under regulations prescribed under section 10 of the Home Owners' Loan Act of 1933 (as added by section 404(a) of this title) or section 416 of

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101 STAT. 621

the National Housing Act (as added by section 404(c) of this title) by Ante, p. 6ii. any minority institution (as defined in each such section), such minority institution shall be designated by the Board as an underutilized thrift institution for purposes of increasing the use of such association as a depositary or financial agent of other Federal ' j' agencies. (c) REPORT TO CONGRESS.—Before the end of the 6-month period

beginning on the date of the enactment of this Act, the Secretary of the Treasury, the Federal Home Loan Bank Board, and the Federal Savings and Loan Insurance Corporation shall each submit a report to the Congress on actions taken by such Secretary or agency pursuant to subsection (a) or (b). (d) THRIFT INSTITUTION DEFINED.—For purposes of this section, the term "thrift institution" has the meaning given to such term in section 407(c)(1). SEC. 413. AUTHORITY OF INDEPENDENT CONTRACTORS, CONSULTANTS, AND COUNSEL.

(a) FEDERALLY CHARTERED THRIFT INSTITUTIONS.—Section 5(d)(6) of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464(d)(6)) (relating to appointments of receivers and conservators) is amended by adding at the end thereof the following new subparagraph: "(E) 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 an 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.". (b) FEDERALLY INSURED STATE CHARTERED THRIFT INSTITUTIONS.—

Section 406(b) of the National Housing Act (12 U.S.C. 1730) (relating to involuntary termination of insurance) is amended by adding at the end thereof the following new paragraph: "(4) DISCLOSURE REQUIREMENT FOR THOSE ACTING ON BEHALF OF

CORPORATION.—The Corporation shall require that any independent contractor, consultant, or counsel employed by the Corporation in connection with the management or liquidation of an insured institution 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 Corporation.". SEC. 414. EXTENSION OF FORBEARANCE PREVIOUSLY PROVIDED IN THE ACQUISITION OF TROUBLED THRIFT INSTITUTIONS.

Section 408(m)(l)(A) of the National Housing Act (12 U.S.C. 1730a(m)(l)(A)) is amended by adding at the end thereof the following new clause: "(iv) If, in connection with a merger, consolidation, transfer, or acquisition of an insured institution under this subparagraph before March 31, 1987, forbearance measures have been included in the agreement governing the supervisory action with respect to such transaction, the period of forbearance in such agreement shall be extended for an additional 5 years upon a showing by the acquiring or resulting insured institution that any failure to meet any requirement, restriction, or limitation specified in such agreement with respect to any such forbearance measure is attributable to the assets

-• .. •

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PUBLIC LAW 100-86—AUG. 10, 1987

or liabilities (of the acquired or merged insured institution) which were acquired by or assumed by the acquiring or resulting insured institution.". 12 USC 1437 note.

Ante, p. 616. Reports.

Reports.

SEC. 415. CONGRESSIONAL OVERSIGHT. (a)

BANKING

COMMITTEE

REVIEW

OF

PANEL

ACTIONS.—The

Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate shall monitor and review the actions taken by each review panel established pursuant to the amendment made by section 407(d) of this Act. (b) OTHER CONGRESSIONAL OVERSIGHT.—The Federal Home Loan Bank Board shall submit a report to the Committee on Banking, Finance and Urban Affairs of the House of Representatives, at the end of the 6-month period beginning on the date of the enactment of this title, at the end of the 1-year period beginning on such date, and on an annual basis after the end of such 1-year period, containing— (1) a description of the Board's existing manpower and talent; (2) an estimate of the Board's projected manpower and talent needs for the year, including the cost of such projected needs; (3) a description and explanation of the goals and objectives, of the Board and all its related entities (including the Federal Asset Disposition Association), for the coming year and the management strategies to be employed by such entities in accomplishing such goals and objectives; (4) a summary of the operations, receipts, expenses, and expenditures, of the Board and all its related entities (including the Federal Asset Disposition Association), during the preceding year; and (5) a summary of the operations and the aggregate receipts, expenses, and expenditures of any other person not referred to in paragraph (4), including receivers, conservators, accountants, attorneys, and consultants, who is engaged in any activity on behalf of the Board or any other entity which is referred to in such paragraph, to the extent such operations, receipts, expenses, and expenditures are in connection with such activity. (c) APPEARANCE.—The Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation shall, before the beginning of each fiscal year, appear before the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate to describe and explain each such agency's plans and proposals with respect to administrative expenses for such fiscal year. (d) GUIDELINES FOR EMPLOYMENT OF OUTSIDE ACCOUNTANTS, ATTORNEYS, CONSERVATORS, AND OTHER CONSULTANTS.—Before the

end of the 6-month period beginning on the date of the enactment of this Act, the Federal Home Loan Bank Board shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing guidelines to improve the management of and control over all outside accountants, attorneys, conservators, consultants, and other persons whose services are employed by the Board, the Federal Savings and Loan Insurance Corporation, the Federal Asset Disposition Association, the principal supervisory agent for any Federal home loan bank district, or any other entity created, owned, or controlled by the

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 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 623

Board in connection with any function for which the Board has direct or indirect regulatory or supervisory responsibility. SEC. 416. SUNSET.

(a) IN GENERAL.—The following provisions shall ceeise to be effective on the date that a notice is published in the Federal Register by the Financing Corporation pursuant to subsection (b): (1) Paragraphs (2), (3), and (5) of— (A) section 9(a) of the Home Owners' Loan Act of 1933; •i,

12 USC 1441 note. Federal Register, publication.

and

(B) section 415(a) of the National Housing Act, (as added by subsections (a) and (b), respectively, of section 402 of this title). (2) Section 10 of the Home Owners' Loan Act of 1933 and section 416 of the National Housing Act (as added by subsections (a) and (b), respectively, of section 404 of this title). (3) Paragraph (6) of section 406(f) of the National Housing Act (as added by section 405 of this title). (4) Section 22A of the Federal Home Loan Bank Act (as added by section 407(d) of this title). (5) Section 411 of this title. (b) NOTICE OF COMPLETION OF N E T N E W BORROWING BY FINANCING

CORPORATION.—When the Financing Corporation established pursuant to section 21 of the Federal Home Loan Bank Act has completed all net new borrowing under such section, the Financing Corporation shall publish a notice of such fact in the Federal Register. (c) SAVINGS PROVISION.—The termination by subsection (a) of the effectiveness of any provision described in such subsection shall not be construed to affect or limit any authority of the Federal Home Loan Bank Board or the 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.

TITLE V—FINANCIAL INSTITUTIONS EMERGENCY ACQUISITIONS SEC. 501. SHORT TITLE.

This title may be cited as the "Financial Institutions Emergency Acquisitions Amendments of 1987". SEC. 502. FDIC ASSISTED EMERGENCY INTERSTATE ACQUISITIONS.

(a) GENERAL PROVISIONS.—Section 13(f)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1823(f)(1)) is amended to read as follows: "(f) ASSISTED EMERGENCY INTERSTATE ACQUISITIONS.—(1) This subsection shall apply only to an acquisition of an insured bank or a holding company by an out-of-State bank or out-of-State holding company for which the Corporation provides assistance under subsection (c).". (b) EMERGENCY INTERSTATE ACQUISITIONS OF BANKS IN DANGER OF

CLOSING.—Section 13(f)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1823(f)(3)) is amended to read as follows: "(3) EMERGENCY INTERSTATE ACQUISITIONS OF INSURED BANKS IN DANGER OF CLOSING.—

Ante, pp. 605, 606. Ante, pp. 609, 611. Ante, p. 613. Ante, p. 617. Ante, p. 620. Federal Register, publication. Ante, p. 585.

Financial Institutions Emergency Acquisitions Amendments of 1987. 12 USC 1811 note.

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 101 STAT. 624

PUBLIC LAW 100-86—AUG. 10, 1987 "(A) ACQUISITION OF INSURED BANKS IN DANGER OF CLOSING.—

One or more out-of-State banks or out-of-State holding companies may acquire and retain all or part of the shares or assets of, or otherwise acquire and retain— "(i) an insured bank in danger of closing which has total assets of $500,000,000 or more; or "(ii) 2 or more affiliated insured banks in danger of ^^. closing which have aggregate total assets of $500,000,000 or ^ r*6k; more, if the aggregate total assets of such banks is equal to or greater than 33 percent of the aggregate total assets of all affiliated insured banks.

'''"

2C'

f '

"(B) ACQUISITION OF A HOLDING COMPANY OR OTHER BANK

' y-''

'

AFFILIATE.—If one or more out-of-State banks or out-of-State holding companies acquire 1 or more affiliated insured banks under subparagraph (A) the aggregate total assets of which is equal to or greater than 33 percent of the aggregate total assets of all affiliated insured banks, any such out-of-State bank or out-of-State holding company may also, as part of the same ^ ' transaction, acquire and retain the shares or assets of, or otherwise acquire and retain— "(i) the holding company which controls the affiliated insured banks so acquired; or "(ii) any other affiliated insured bank.

'

"(C) REQUEST FOR ASSISTANCE BY CORPORATE BOARD OF DIREC-

i,; q \,.\ »^o /

TORS.—The Corporation may assist an acquisition or merger authorized under subparagraph (A) only if the board of directors or trustees of each insured bank in danger of closing which is being acquired has requested in writing that the Corporation assist the acquisition or merger. "(D) CERTAIN ACQUISITIONS AUTHORIZED AFTER ASSISTANCE IS

,'. > •*y. J, J;

PROVIDED.—Notwithstanding paragraph (1), if— "(i) a t any time after the date of the enactment of the Financial Institutions Emergency Acquisitions Amendments of 1987, the Corporation provides any assistance .. under subsection (c) to an insured bank; and "* "(ii) at the time such assistance is granted, the insured bank, the holding company which controls the insured bank (if any), or any affiliated insured bank is eligible to be acquired by an out-of-State bank or out-of-State holding company under this paragraph, the insured bank, the holding company, and such other affiliated insured bank shall remain eligible, subject to such terms and conditions as the Corporation (in the Corporation's discretion) may impose, to be acquired by an out-of-State bank or outof-State holding company under this paragraph as long as any portion of such assistance remains outstanding. "(E) STATE BANK SUPERVISOR APPROVAL.—The Corporation

may take no final action in connection with any acquisition under this paragraph unless the State bank supervisor of the State in which the bank in danger of closing is located approves the acquisition. "(F) OTHER REQUIREMENTS NOT AFFECTED.—This paragraph

does not affect any other requirement under Federal or State law for regulatory approval of an acquisition under this paragraph. "(G) ACQUISITION MAY BE CONDITIONED ON RECEIPT OF CONSIDERATION FOR CORPORATION'S ASSISTANCE.—Any acquisition de-

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 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 625

scribed in subparagraph (D) may be conditioned on the receipt of such consideration for the Corporation's assistance as the Board of Directors deems appropriate.". (c) SPECIAL PROVISIONS APPLICABLE TO EMERGENCY INTERSTATE ACQUISITIONS.— (1) COORDINATION WITH CERTAIN STATE LAWS.—Section 13(f)(4)

of the Federal Deposit Insurance Act (12 U.S.C. 1823(f)(4)) is amended— (A) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; (B) by amending subparagraph (A) (as so redesignated) to read as follows: "(A) ACQUISITIONS NOT SUBJECT TO CERTAIN OTHER LAWS.—Sec-

tion 3(d) of the Bank Holding Company Act of 1956, any provision of 12 USC 1842. State law, the constitution of any State, and section 408(e)(3) of the 12 USC I730a. National Housing Act shall not apply to prohibit any acquisition under paragraph (2) or (3), except that an out-of-State bank may make such an acquisition only if such ownership is otherwise specifically authorized.'; and (C) by adding at the end thereof the following new subparagraphs: "(D) SUBSEQUENT NONEMERGENCY INTERSTATE ACQUISITIONS SUBJECT TO STATE LAW.—

"(i) IN GENERAL.—Any out-of-State bank holding company which acquires control of a n insured bank in any State under paragraph (2) or (3) may acquire any other insured bank and establish branches in such State to the same extent as a bank holding company whose insured bank subsidiaries' operations are principally conducted in such State may acquire any other insured bank or establish branches. "(ii) DELAYED DATE OF APPLICABILTTY.—Clause (i) shall not apply with respect to any out-of-State bank holding company referred to in such clause before the earlier of— •^ ^ "(I) the end of the 2-year period beginning on the date the acquisition referred to in such clause with respect to such company is consummated; or "(II) the end of any period established under State law ' • during which such out-of-State bank holding company may not be treated as a bank holding company whose insured bank subsidiaries' operations are principally conducted in such State for purposes of acquiring other insured banks or establishing bank branches, "(iii) DETERMINATION OP PRINCIPALLY CONDUCTED.—For purposes of this subparagraph, the State in which the operations of a holding company's insured bank subsidiaries are principally conducted is the State determined under section 3(d) of the Bank Holding Company Act of 1956 with respect to such holding company. "(E) CERTAIN STATE INTERSTATE BANKING LAWS INAPPLICABLE.—

Any holding company which acquires control of any insured bank or holding company under paragraph (2) or (3) or subparagraph (D) of this paragraph shall not, by reason of such acquisition, be required under the law of any State to divest any other insured bank or be prevented from acquiring any other bank or holding company.". (2) RECIPROCAL BANK PACTS AND MINORITY BANK OWNERSHIP TAKEN INTO ACCOUNT IN BIDDING PRIORITIES.—Section 13(f)(6) of

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 101 STAT. 626

PUBLIC LAW 100-86—AUG. 10, 1987

the Federal Deposit Insurance Act (12 U.S.C. 1823(f)(6)) is amended— (A) in subparagraph (B), by striking out clause (ii) and all that follows through clause (iv) and inserting in lieu thereof the following new clauses: "(ii) Second, between depository institutions of the same type— "(I) in different States which by statute specifically au« thorize such acquisitions; or "(II) in the absence of such statutes, in different States which are contiguous, "(iii) Third, between depository institutions of the same type in different States other than the States described in clause (ii). "(iv) Fourth, between depository institutions of different types in the same State. "(v) Fifth, between depository institutions of different types— "(I) in different States which by statute specifically au;v thorize such acquisitions; or "(II) in the absence of such statutes, in different States j, which are contiguous. "(vi) Sixth, between depository institutions of different types in different States other than the States described in clause (v).";and (B) by amending subparagraph (C) to read as follows: "(C) MINORITY BANK PRIORITY.—In the case of a minority-controlled bank, the Corporation shall seek an offer from other minority-controlled banks before proceeding with the bidding priorities set forth in subparagraph (B).". (3) REAFFIRMATION O F THE RULE THAT N O ASSISTANCE I S A U THORIZED FOR NONBANK SUBSIDIARIES O F HOLDING COMPANIES.—

Section 13(f) of the Federal Deposit Insurance Act (12 U.S.C. 1823(f)) is amended by adding at the end thereof the following new paragraph: "(9) No ASSISTANCE AUTHORIZED FOR NONBANK SUBSIDIARIES OF HOLDING COMPANIES.—

"(A) IN GENERAL.—The Corporation shall not provide any assistance to a subsidiary of a holding company which is not an insured bank in connection with any acquisition under this subsection. "(B) INTERMEDIATE HOLDING COMPANY PERMITTED.—This paragraph does not prohibit an intermediate holding company from being a conduit for assistance ultimately intended for an insured bank.". (4) REPORTS REQUIRED.—Section 13(f) of the Federal Deposit

Insurance Act (12 U.S.C. 1823(f)) is amended by adding after paragraph (9) (as added by paragraph (3) of this subsection) the following new paragraph: "(10) ANNUAL REPORT.—

"(A) REQUIRED.—In its annual report to Congress the Corporation shall include a report on the acquisitions under this subsection during the preceding year. "(B) CONTENTS.—The report required under subparagraph (A) shall contain the following information: "(i) The number of acquisitions under this subsection. "(ii) A brief description of each such acquisition and the .^~ circumstances under which such acquisition occurred.".
 * V

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101 STAT. 627

(5) DETERMINATION OF TOTAL ASSETS.—Section 13(f) of the

Federal Deposit Insurance Act (12 U.S.C. 1823(f)) is amended by adding after paragraph (10) (as added by paragraph (4) of this subsection) the following new paragraph: "(11) DETERMINATION OF TOTAL ASSETS.—For purposes of this subsection, the total assets of any insured bank shall be determined on the basis of the most recent report of condition of such bank which is available at the time of such determination.". (d) BANK IN DANGER OF CLOSING DEFINED.—Section 13(f)(8) of the

Federal Deposit Insurance Act (12 U.S.C. 1823(f)(8)) is amended— (1) by adding a t the end thereof the following new subparagraph: "(D) the term 'bank in danger of closing' means an insured bank with respect to which the appropriate Federal or State chartering authority certifies in writing that— "(i)(I) the bank is not likely to be able to meet the demands of such bank's depositors or pay the obligations of ' the bank in the normal course of business, and "(II) there is no reasonable prospect that the bank will be able to meet such demands or pay such obligations without Federal assistance; or "(ii)(I) the bank has incurred or is likely to incur losses that will deplete all or substantially all of the capital of the bank, and "(II) there is no reasonable prospect for the replenishment of the bank's capital without Federal assistance;"; (2) by striking out "and" a t the end of subparagraph (B); and (3) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof a semicolon.

^

(e) ACQUIRE DEFINED.—Section 13(f)(8) of the Federal Deposit

Insurance Act (12 U.S.C. 1823(f)(8)) is amended by adding after subparagraph (D) (as added by subsection (d) of this section) the following new subparagraph: "(E) the term 'acquire' means to acquire, directly or indirectly, ownership or control through— "(i) an acquisition of shares; "(ii) an acquisition of assets or assumption of liabilities; "(iii) a merger or consolidation; or "(iv) any similar transaction;". (1) AFFIUATED INSURED BANK DEFINED.—Section 13(fK8) of the Federal Deposit Insurance Act (12 U.S.C. 1823(f)(8)) is amended by adding after subparagraph (E) (as added by subsection (e) of this section) the following new subparagraph: "(F) the term affiliated insured bank' means— "(i) when used in connection with a reference to a holding company, an insured bank which is a subsidiary of such holding company; and "(ii) when used in connection with a reference to 2 or more insured banks, insured banks which are subsidiaries of the same holding company; and". (g) SUBSIDIARY DEFINED.—Section 13(f)(8) of the Federal Deposit

Insurance Act (12 U.S.C. 1823(fK8)) is amended by adding after subparagraph (F) (as added by subsection (f) of this section) the following new subparagraph: "(G) the term 'subsidiary' has the meaning given to such term in section 2(d) of the Bank Holding Company Act of 1956.". (h) WAIVER OF NOTICE AND HEARING REQXJIREMENTS.—

12 USC 1841.

�


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/658

 101 STAT. 628

PUBLIC LAW 100-86—AUG. 10, 1987 (1) APPLICATION RELATING TO ACQUISITIONS.—Section 3(b) of

the Bank Holding Company Act of 1956 (12 U.S.C. 1842(b)) is amended— (A) by striking out "(b) Upon" and inserting in lieu thereof

"(b)(1) NOTICE

AND HEARING

REQUIREMENTS.—

Upon"; and (B) by adding at the end thereof the following new paragraph:

"(2) WAIVER IN CASE OF BANK IN DANGER OF CLOSING.—If the

Ante, p. 627.

Board receives a certification described in section 13(f)(8)(D) of the Federal Deposit Insurance Act from the appropriate Federal or State chartering authority that a bank is in danger of closing, the Board may dispense with the notice and hearing requirements of paragraph (1) with respect to any application received by the Board relating to the acquisition of such bank, the bank holding company which controls such bank, or any other affiliated bank.". (2) APPLICATION RELATING TO NONBANKING ACTIVITIES.—Sec-

f < f j Federal Register, publication. -

tion 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)(8)) is amended by striking out the semicolon at the end and inserting in lieu thereof a period and the following new sentences: "If an application is filed under this paragraph in connection with an application to make an acquisition pursuant to section 13(f) of the Federal Deposit Insurance Act, the Board may dispense with the notice and hearing requirement of this paragraph and the Board may approve or deny the application Under this paragraph without notice or hearing. If an application described in the preceding sentence is approved, the Board gj^^jj publish in the Federal Register, not later than 7 days after such approval is granted, the order approving the application and a description of the nonbanking activities involved in the acquisition;". (3) EARLY ANTITRUST REVIEW I N CASE O F EMERGENCY ACQUISITION OF F A I U N G BANK.—Section 11(b) of the B a n k Holding

Company Act of 1956 (12 U.S.C. 1849(b)) is amended— (A) by striking out "(b) The Board" and inserting i n lieu !fa^. thereof "(b) A N T I T R U S T R E VI E W. — "(1) IN GENERAL.—The Board"; ,,, (B) by moving all that follows 2 e m s to the right; and (C) by adding a t the e n d thereof the following n e w "' paragraph: "(2) SECTION 13(f) CASES.—(A) If—

.it>c=

"(i) the Federal Deposit Insurance Corporation learns that a bank insured by such Corporation is in danger of J' closing; and "(ii) the Corporation is considering assisting the acquisition of such bank and its affiliated banks by another bank li' or holding company under section 13(f) of the Federal DetS' posit Insurance Act and such acquisition is subject to the approval of the Board under section 3 of this Act, the Corporation shall immediately notify the Board of such facts. "(B) Upon receipt of notice from the Federal Deposit Insurance Corporation under subparagraph (A) or at such earlier time as deemed appropriate by the Board, the Board shall immediately notify the Attorney General of the United States of the facts concerning the possible acquisition.

�


text: Dictionary of National Biography, 1885-1900/Paul (d.1093)


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/659

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 629

"(C) Within 5 days of receiving notice under subparagraph (B), the Attorney General shall notify the Board in writing of the Attorney General's preliminary finding as to the consistency of the possible acquisition with the antitrust laws. "(D) The Board may reduce or eliminate the post-approval waiting period established under paragraph (1) for an acquisition to which this paragraph applies, except that such period may not be eliminated or reduced to less than 5 days without the concurrence of the Attorney General.". (i) TECHNICAL AND CONFORMING AMENDMENTS.—Section 13(f)

of

the Federal Deposit Insurance Act (12 U.S.C. 1823(f)) is amended— (1) in paragraph (5), by striking out "to permit"; and (2) in paragraph (6)(A)— (A) by striking out "where the closed bank" and inserting in lieu thereof' where the bank"; and ' ' (B) by striking out "in-State bank holding company" and inserting in lieu thereof "in-State holding company". SEC. 503. BRIDGE BANKS. (a) ESTABLISHMENT OF BRIDGE BANKS.—Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended— (1) in subsection (h) by striking out "(h) As soon as" and inserting in lieu thereof "(h) N E W BANKS.—(1) As soon as"; (2) by redesignating subsections (i), (j), (k), and (1) as paragraphs (2), (3), (4), and (5) of subsection (h), respectively; and (3) by inserting after subsection (h)(5) (as redesignated by paragraph (2)) the following new subsection: "(i) BRIDGE BANKS.—

"(1) ESTABLISHMENT.—When an insured bank is closed, the Corporation, in the Corporation's discretion and subject to the conditions established in paragraph (2), may establisn a bridge bank to— "(A) assume the deposits of the closed bank; "(B) assume such other liabilities of the closed bank as the Corporation, in the Corporation's discretion, may determine to be appropriate; ,, "(C) purchase such assets of the closed bank as the Corporation, in the Corporation's discretion, may determine to be appropriate; and . "(D) perform any other temporary function which the Corporation may prescribe in accordance with this Act. "(2) CONDITIONS.—A bridge bank may be established under paragraph (1) only if the Board of Directors determines that— "(A) the amount which is reasonably necessary to organize and operate such bridge bank will not exceed the amount which is reasonably necessary to save the cost of liquidating, including paying the insured accounts of, the ' closed bank or banks; "(B) the continued operation of such insured bank is essential to provide adequate banking services in the ' ' community where such bank is located; or "(C) that the continued operation of such insured bank is in the best interest of the depositors of the closed bank and the public. h,,

' *'•

"(3) TRANSFER OF ASSETS AND LIABILITIES.—

"(A) IN GENERAL.—Upon the organization of a bridge bank pursuant to this subsection, the Corporation, as re-

r

, _ > r;>• «

 * «;jeM Si

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Page:United States Statutes at Large Volume 101 Part 1.djvu/660

 101 STAT. 630

PUBLIC LAW 100-86—AUG. 10, 1987 ceiver, or any other receiver appointed with respect to the closed insured bank may, subject to the approval of any such transfer by a court of competent jurisdiction, transfer any assets and liabilities of the closed insured bank to the bridge bank. "(B) INTENT OF CONGRESS RELATING TO CONTINUING OPER-

ATIONS.—It is the intent of the Congress that, in order to prevent unnecessary hardship or losses to the customers of the closed bank with respect to which a bridge bank is established, especially creditworthy farmers, small businesses, and households, the Corporation should— "(i) continue to honor commitments made by the closed bank to creditworthy customers, and
 * -f.. '-.

"(ii) not interrupt or terminate adequately secured loans which are transferred under subparagraph (A) I. and are being repaid by the debtor in accordance with the terms of the loan instrument. "(4) ORGANIZATION.— "(A) ARTICLES OF ASSOCIATION.—The articles of associa-

'•f-

12 USC 71-75. 12 USC 71a.

12 USC 51.

tion and the organization certificate of a bridge bank shall be executed by representatives designated by the Corporation. "(B) INSURED NATIONAL BANK.—Each bridge bank shall be a national bank and shall be insured from the time of the organization of the bridge bank. "(C) MANAGEMENT.—Each bridge bank shall be under the management of a board of directors consisting of 5 members appointed by the Board of Directors of the Corporation. "(5) POWERS OF BRIDGE BANKS.—Each bridge bank established under this subsection shall have all corporate powers of, and be subject to the same provisions of law as, a national bank, except that— "(A) the Corporation may— "(i) remove the directors of any bridge bank; ' ** "(ii) fix the compensation of members of the board of ^^ directors of any bridge bank; and "(iii) waive any requirement established under section 5145, 5146, 5147, 5148, or 5149 of the Revised Statutes (relating to directors of national banks) or T' section 31 of the Banking Act of 1933 which would otherwise be applicable with respect to directors of a bridge bank by operation of paragraph (4)(B); "(B) the Corporation may indemnify the directors of a bridge bank on such terms as the Corporation determines to be appropriate; "(C) no requirement under section 5138 of the Revised Statutes or any other provision of law relating to the capital of a national bank shall apply with respect to any bridge bank; "(D) the Comptroller of the Currency may establish a ,J, limitation on the extent to which any person may become t indebted to any bridge bank without regard to the amount of the bank's capital or surplus; "(E) the board of directors of the bridge bank shall elect a ,.^y chairperson who shall also serve in the position of chief .: executive officer; .-,,, „ ,...

�


text: Dictionary of National Biography, 1885-1900/Paul, Earl of Orkney


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/661

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 631

"(F) no bridge bank shall be required to purchase stock of any Federal Reserve bank; and (G) the Comptroller of the Currency may waive any requirement for a fidelity bond. "(6) CAPITAL.—

"(A) No CAPITAL REQUIRED.—The Corporation shall not be required to— "(i) issue capital stock on behalf of any bridge bank established under this subsection; or "(ii) purchase any capital stock of any bridge bank. "(B) OPERATING FUNDS IN UEU OF CAPITAL.—Upon the

organization of a bridge bank, and thereafter as the Board of Directors may in its discretion deem necessary or advisable, the Corporation shall promptly make available to the bridge bank, upon such terms and conditions and in such form and amounts as the Board of Directors may prescribe, sufficient funds for the bridge bank to operate. "(C) AUTHORITY TO ISSUE CAPITAL STOCK.—Whenever in

the judgment of the Board of Directors it is desirable to do so, the Corporation shall cause capital stock of any bridge bank to be issued and offered for sale on such terms and conditions as the Corporation determines to be appropriate and in an amount sufficient (in the discretion of the Corporation) to make possible the conduct of the business of the bridge bank on a sound basis.

v

"(7) N o FEDERAL STATUS.—

<

"(A) AGENCY STATUS.—A bridge bank is not an agency, establishment, or instrumentality of the United States. "(B) EMPLOYEE STATUS.—Directors, officers, employees, or agents of the bridge bank are not officers or employees of the United States for purposes of title 5, United States Code, or any other provision of law. "(8) ASSISTANCE AUTHORIZED.—The Corporation may, in its

discretion, provide assistance under section 13(c) to facilitate the sale or merger of the bridge bank with another insured depository institution in the same manner and to the same extent as such Eissistance may be provided under such section with respect to a closed insured bank. "(9) ACQUISITION BY OUT-OF-STATE BANK HOLDING COMPANY.—

Any depository institution, including an out-of-State bank, or any out-of-State holding company may acquire and retain the shares or Eissets of, or otherwise acquire and retain a bridge bank which has assumed the insured deposits of one or more closed banks which had total assets aggregating $500,000,000 or more (determined in the manner provided in section 13(f)(ll) at the time such insured bank was closed) in the same manner and to the same extent as such depository institution or such out-ofState holding company may acquire a closed insured bank under section 13(f)(2). "(10) TERMINATION OF BRIDGE BANK.—

"(A) IN GENERAL.—A bridge bank shall terminate upon the occurrence of the earliest of the following: "(i) The bridge bank merges or consolidates with another bank that is not a bridge bank. "(ii) The bridge bank sells all or substantially all of the stock of the bridge bank other than to the Corporation or to another bridge bank.

12 USC 1873.

�


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Page:United States Statutes at Large Volume 101 Part 1.djvu/662

 101 STAT. 632

PUBLIC LAW 100-86—AUG. 10, 1987

1v >I?'> " ' Jt

"(iii) A holding company or another bank that is not a bridge bank assumes all, or substantially all of the t/iv » deposits or other liabilities of a bridge bank. "(iv) A period of 2 years following the date the bridge bank was organized expires without any other disposiM: '/" ' tion of the assets and liabilities of the bank having occurred. "(B) EXTENSION ALLOWED FOR i YEAR.—If the Board of Directors finds, after consultation with the Comptroller of '^ r the Currency, that an extension of time for winding up the affairs of the bank is in the best interest of the depositors of the closed bank and the public, the Corporation may extend the time period specified in subparagraph (A)(iv) for not to exceed one year. "(11) 2 OR MORE BANKS.—The Corporation, in the Corporation's discretion, may establish a bridge bank under this subsection to assume the deposits of, assume any other liabilities of, and purchase any assets of 2 or more closed banks.". (b) DEFINITIONS.—Section 3(i) of the Federal Deposit Insurance Act (12 U.S.C. 1813(i)) is amended to read as follows: "(i) N E W BANK AND BRIDGE BANK DEFINED.—
 * %At,

Ante, p. 629.

"(1) N E W BANK.—The term 'new bank' means a new national bank, other than a bridge bank, organized by the Corporation in 5.. accordance with section 11(h). "(2) BRIDGE BANK.—The term 'bridge bank' means a new national bank organized by the Corporation in accordance with ' section ll(i).". SEC. 504. CONVERSIONS. (a) AMENDMENT TO THE NATIONAL HOUSING ACT.—Section 403 of

,r >

Infra.

the National Housing Act (12 U.S.C. 1726) is amended by adding at the end thereof the following: "(e) If, upon application, and pursuant to a plan of conversion to an institution of a type eligible to be an insured institution, the Corporation, in its discretion, determines to grant insurance of accounts to a savings bank that is an insured bank (as the term 'insured bank' is defined in section 3(h) of the Federal Deposit Insurance Act), such insurance shall become effective at such time as the Corporation stipulates, at which time such institution automatically shall lose its status as such an insured bank. No change of deposit insurance agencies from the Federal Deposit Insurance Corporation to the Corporation shall be treated, for the purposes of section 18(i) of the Federal Deposit Insurance Act, as involving a conversion to a noninsured bank or institution, except that the Corporation shall provide the Federal Deposit Insurance Corporation with notification of any application that, if granted, would involve such a change of deposit insurance agencies, shall consult with tht Corporation before disposing of the application, and shall provide the Federal Deposit Insurance Corporation with notification of the determination with respect to such application.". flj) AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT.— (1) SECTION 18 (c) APPLICABILITY.—Section 18(c)(12) of the Fed-

eral Deposit Insurance Act (12 U.S.C. 1828(c)(12)) is amended to read as follows: "(12) The provisions of this subsection shall not apply to any transaction where the acquiring, assuming, or resulting institution is an insured Federal savings bank or an institution insured by the

�


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Page:United States Statutes at Large Volume 101 Part 1.djvu/663

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 633

Federal Savings and Loan Insurance Corporation, except that any insured bank involved in the transaction shall notify the Corporation in writing at least 30 days prior to consummation of the transaction and, if any approval by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation is required in connection therewith, such approving authority shall provide the Corporation with notification of the application for approval, shall consult with the Corporation before disposing of the application, and shall provide notification to the Corporation of the determination with respect to said application.". (2) SECTION 1 8 (i) APPLICABILITY.—Section 18(i) of such Act is amended by adding at the end thereof the following: "(5) Nothing in this subsection shall apply to a conversion of an insured bank to an insured institution pursuant to section 403(e) of the National Housing Act (12 U.S.C. 1726(e)).".

% >^ 11 . Ante, p. 632.

SEC. 505. FEDERAL DEPOSITORY INSTITUTIONS REGULATORY AGENCIES NOT SUBJECT TO APPORTIONMENT OF FUNDS PROVISIONS. (a) FEDERAL DEPOSIT INSURANCE CORPORATION.—Section 7(b) of the

Federal Deposit Insurance Act (12 U.S.C. 18170t))) is amended by adding at the end thereof the following: "(9) APPORTIONMENT.—Notwithstanding any other provision of law, amounts received pursuant to any assessment under this section and any other amounts received by the Corporation shall not be subject to apportionment for the purpose of chapter 15 of title 31, United States Code, or under any other authority..

,,

(b) THE COMPTROLLER OF THE CURRENCY.—The second paragraph

of section 5240 of the Revised Statutes (12 U.S.C. 481) is amended by inserting after the fifth sentence the following: "Such funds shall not be subject to apportionment for the purpose of chapter 15 of title 31, United States Code, or under any other authority.".

"'

,^ '

31 USC I50i et

(c) THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION.— seq.

Section 404 of the National Housing Act (12 U.S.C. 1727) is amended by adding at the end thereof the following: "(k) APPORTIONMENT.—Notwithstanding any other provision of law, amounts received by the Corporation pursuant to any assessment under this Act, deposits required under this section and any other moneys received by the Corporation shall not be subject to apportionment for the purpose of chapter 15 of title 31, United States Code, or under any other authority.". (d) THE FEDERAL HOME LOAN BANK BOARD.—The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by inserting after section 19 (12 U.S.C. 1439) the following: "SEC. 12A. APPORTIONMENT.

12 USC 1439-1.

"Notwithstanding any other provision of law, amounts received pursuant to any assessment under this Act and any other moneys received by the Board shall not be subject to apportionment for the purpose of chapter 15 of title 31, United States Code, or under any other authority.". (e) THE NATIONAL CREDIT UNION ADMINISTRATION.—Title I of the

Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended by adding at the end thereof the following: "SEC. 128. APPORTIONMENT.

"Notwithstanding any other provision of law, funds received by the Board pursuant to any method provided by this Act, and in-

12 USC 1772b.

�


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/664

 101 STAT. 634

31 USC 1501 et

PUBLIC LAW 100-86—AUG. 10, 1987

terest, dividend, or other income thereon, shall not be subject to apportionment for the purpose of chapter 15 of title 31, United States Code, or under any other authority.".

seq. SEC. 506. FEDERAL DEPOSITORY INSTITUTIONS REGULATORY AGENCIES NOT SUBJECT TO SEQUESTRATION.

2 USC 905. ^ J <

'.

2 USC 906.

,,,,,•,

(a) IN GENERAL.—Paragraph (1) of section 255(g) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended— (1) by inserting after the item relating to compensation of the President the following new item: "Comptroller of the Currency;"; (2) by inserting after the item relating to the exchange sta.1 bilization fund the following new items: • "Federal Deposit Insurance Corporation; "Federal Home Loan Bank Board; i^? "Federal Home Loan Bank Board, Federal Savings and Loan Insurance Corporation;"; and (3) by inserting after the item relating to intragovernmental funds the following new items: "National Credit Union Administration; '; „ «' "National Credit Union Administration, central liquidity facility; "National Credit Union Administration, credit union share insurance fund;". (b) CERTAIN EXPENSES.—Section 256(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end thereof the following new paragraph: "(4) Notwithstanding any other provision of law, this subsection shall not apply with respect to the following: "(A) Comptroller of the Currency. "(B) Federal Deposit Insurance Corporation. "(C) Federal Home Loan Bank Board. "(D) Federal Savings and Loan Insurance Corporation. i, "(E) National Credit Union Administration. "(F) National Credit Union Administration, central liquidity facility.". SEC. 507. LIQUIDATION PROCEEDINGS.

Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended by inserting after subsection (i) (as added by section 503(a)(3) of this title) the following new subsection: "(j) CONDITIONS APPLICABLE TO LIQUIDATION PROCEEDINGS.— "(1) CONSIDERATION OF LOCAL ECONOMIC IMPACT REQUIRED.—

~ '

'

The Corporation shall fully consider the adverse economic impact on local communities, including businesses and farms, of actions to be taken by it during the administration and liquidation of loans of a closed bank. "(2) ACTIONS TO ALLEVIATE ADVERSE ECONOMIC IMPACT TO BE

CONSIDERED.—The actions which the Corporation shall consider include the release of proceeds from the sale of products and t* services for family living and business expenses and shortening the undue length of the decisionmaking process for the acceptance of offers of settlement contingent upon third party financ•

ing.

"(3) GUIDELINES REQUIRED.—The Corporation shall adopt and publish procedures and guidelines to minimize adverse eco-

�


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Page:United States Statutes at Large Volume 101 Part 1.djvu/665

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 635

nomic effects caused by its actions on individual debtors in the community.". SEC. 508. CAPITAL POOLS.

(a) FINDINGS.—The Congress hereby finds that— (1) the Federal Deposit Insurance Corporation has the statutory authority to engage in open bank assistance for failing banks under section 13(c) of the Federal Deposit Insurance Act 12 USC 1873. to minimize losses to the insurance fund and to provide for the f stability of the community; (2) communities in depressed regions of the Nation have had increasing difficulty in raising capital to infuse into locally ? operated, failing banks; (3) States have the authority to establish capital pools to ' supplement Federal Deposit Insurance Corporation funds and outside capital in arranging open banks assistance plans; and (4) it is not in the public interest to have a fire sale of assets acquired by the Federal Deposit Insurance Corporation as a part of their acquisitions of nonperforming loans of failed banks. (b) SENSE OF THE CONGRESS.—It is the sense of the Congress that the Federal Deposit Insurance Corporation should— (1) exercise its discretionary authority to work with States which authorize capital pools described in subsection (a)(3) to save community banks during this time of great economic distress in certain regions of the country; and (2) use its discretionary authority to negotiate sale of loans in the Corporation's capacity as receiver for a closed insured bank to banks in the area in which such closed bank is located in order to prevent further asset devaluation. SEC. 509. PERMANENT EXTENSION OF CERTAIN TEMPORARY PROVISIONS OF LAW; 5-YEAR EXTENSION OF NET WORTH CERTIFICATES.

(a) PERMANENT EXTENSION.—Part D of title I of the Garn-St Germain Depository Institutions Act of 1982 is repealed. (b) 5-YEAR EXTENSION OF N E T WORTH CERTIFICATES.—Section

206(a) of such Act (12 U.S.C. 1729 note) is amended by striking out "October 13, 1986" and inserting in lieu thereof "October 13, 1991". (c) PRIOR AMENDMENTS NOT EFFECTIVE.—No amendment made by part D of title I or section 206 of the Garn-St Germain Depository Institutions Act of 1982, as in effect before the date of the enactment of this Act, 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.

TITLE VI—EXPEDITED FUNDS AVAILABILITY

12 USC 1464 note. 12 USC 1729, 1823. 12 USC 1464 note. 12 USC 1729, 1823.

Expedited Funds Availability Act. 12 USC 4001 note.

SEC. 601. SHORT TITLE.

This title may be cited as the "Expedited Funds Availability Act". SEC. 602. DEFINITIONS.

For purposes of this title—

12 USC 4001.

�


text: Dictionary of National Biography, 1885-1900/Paul Anglicus


text:
Page:United States Statutes at Large Volume 101 Part 1.djvu/666

 101 STAT. 636

PUBLIC LAW 100-86—AUG. 10, 1987

(1) ACCOUNT.—The term "account" means a demand deposit account or other similar transaction account at a depository institution. (2) BOARD.—The term "Board" means the Board of Governors of the Federal Reserve System. (3) BUSINESS DAY.—The term "business day" means any day other than a Saturday, Sunday, or legal holiday. '.y ' (4) CASH.—The term "cash means United States coins and ,; currency, including Federal Reserve notes. (5) CASHIER'S CHECK.—The term "cashier's check" means any t>? check which— '^i (A) is drawn on a depository institution; (B) is signed by an officer or employee of such depository • institution; and (C) is a direct obligation of such depository institution. (6) CERTIFIED CHECK.—The term "certified check" means any check with respect to which a depository institution certifies that— (A) the signature on the check is genuine; and (B) such depository institution has set aside funds iisri' ^ which— (i) are equal to the amount of the check; and (ii) will be used only to pay such check. (7) CHECK.—The term "check" means any negotiable demand draft drawn on or payable through an office of a depository institution located in the United States. Such term does not include noncash items. (8) CHECK CLEARINGHOUSE ASSOCIATION.—The term "check clearinghouse association" means any arrangement by which participant depository institutions exchange deposited checks on a local basis, including an entire metropolitan area, without using the check processing facilities of the Federal Reserve System. ^^ (9) CHECK PROCESSING REGION.—The term "check processing region" means the geographical area served by a Federal Reserve bank check processing center or such larger area as the >' Board may prescribe by regulations. (10) CONSUMER ACCOUNT.—The term "consumer account" 5,;. -, means any account used primarily for personal, family, or household purposes. (11) DEPOSITORY CHECK.—The term "depository check" means ,j,r,;, any cashier's check, certified check, teller's check, and any other functionally equivalent instrument as determined by the Board. (12) DEPOSITORY INSTITUTION.—The term "depository institution" has the meaning given such term in clauses (i) through (vi) 12 USC 461. of section 19(b)(1)(A) of the Federal Reserve Act. Such term also includes an office, branch, or agency of a foreign bank located in the United States. ,,, (13) LOCAL ORIGINATING DEPOSITORY INSTITUTION.—The term "local originating depository institution" means any originating depository institution which is located in the same check ' processing region as the receiving depository institution, (14) NONCASH ITEM.—The term "noncash item" means— ' (A) a check or other demand item to which a passbook, certificate, or other document is attached;,,,-,,.»,. < J

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