12 U.S.C. § 1468 : US Code - Section 1468: Transactions with affiliates; extensions of credit to executive officers, directors, and principal shareholders

Search 12 U.S.C. § 1468 : US Code - Section 1468: Transactions with affiliates; extensions of credit to executive officers, directors, and principal shareholders

(a) Affiliate transactions
(1) In general
Sections 23A and 23B of the Federal Reserve Act [12 U.S.C. 371c
and 371c-1] shall apply to every savings association in the same
manner and to the same extent as if the savings association were
a member bank (as defined in such Act [12 U.S.C. 221 et seq.]),
except that -
(A) no loan or other extension of credit may be made to any
affiliate unless that affiliate is engaged only in activities
described in section 1467a(c)(2)(F)(i) of this title; and
(B) no savings association may enter into any transaction
described in section 23A(b)(7)(B) of the Federal Reserve Act
with any affiliate other than with respect to shares of a
subsidiary.
(2) Sister bank exemption made available to savings associations
(A) Savings associations controlled by bank holding companies
Every savings association more than 80 percent of the voting
stock of which is owned by a company described in section
1467a(c)(8) of this title shall be treated as a bank for
purposes of section 23A(d)(1) and section 23B of the Federal
Reserve Act, if every savings association and bank controlled
by such company complies with all applicable capital
requirements on a fully phased-in basis and without reliance on
goodwill.
(B) Savings associations generally
Effective on and after January 1, 1995, every savings
association shall be treated as a bank for purposes of section
23A(d)(1) and section 23B of the Federal Reserve Act.
(3) Affiliates described
Any company that would be an affiliate (as defined in sections
23A and 23B of the Federal Reserve Act) of any savings
association if such savings association were a member bank (as
such term is defined in such Act) shall be deemed to be an
affiliate of such savings association for purposes of paragraph
(1).
(4) Additional restrictions authorized
The Director may impose such additional restrictions on any
transaction between any savings association and any affiliate of
such savings association as the Director determines to be
necessary to protect the safety and soundness of the savings
association.
(b) Extensions of credit to executive officers, directors, and
principal shareholders
(1) In general
Subsections (g) and (h) of section 22 of the Federal Reserve
Act [12 U.S.C. 375a, 375b] shall apply to every savings
association in the same manner and to the same extent as if the
savings association were a member bank (as defined in such Act).
(2) Additional restrictions authorized
The Director may impose such additional restrictions on loans
or extensions of credit to any director or executive officer of
any savings association, or any person who directly or indirectly
owns, controls, or has the power to vote more than 10 percent of
any class of voting securities of a savings association, as the
Director determines to be necessary to protect the safety and
soundness of the savings association.
(c) Administrative enforcement
The Director may take enforcement action with respect to
violations of this section pursuant to section 8 or 18(j) of the
Federal Deposit Insurance Act [12 U.S.C. 1818 or 1828(j)], as
appropriate.