Financial Institutions Reform, Recovery, and Enforcement Act of 1989


 * Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

{{SECTION|SEC. 1.|SECTION 1}}. SHORT TITLE; TABLE OF CONTENTS.

 * (a) SHORT TITLE.—
 * This Act may be cited as the ``Financial Institutions Reform, Recovery, and Enforcement Act of 1989´´.
 * (b) TABLE OF CONTENTS.—


 * TITLE I — PURPOSES
 * Sec. 101. Purposes.


 * TITLE II — FEDERAL DEPOSIT INSURANCE CORPORATION
 * Sec. 201. Depository institutions.
 * Sec. 202. Duties of Federal Deposit Insurance Corporation.
 * Sec. 203. FDIC Board members.
 * Sec. 204. Definitions.
 * Sec. 205. Insured savings associations.
 * Sec. 206. Application process; insurance fees.
 * Sec. 207. Insurability factors.
 * Sec. 208. Assessments.
 * Sec. 209. Corporate powers of the FDIC.
 * Sec. 210. Administration of Corporation.
 * Sec. 211. Insurance funds.
 * Sec. 212. Conservatorship and receivership powers of the Corporation.
 * Sec. 213. New banks.
 * Sec. 214. Bridge banks.
 * Sec. 215. FSLIC Resolution Fund.
 * Sec. 216. Amendments to section 12.
 * Sec. 217. Amendments to section 13.
 * Sec. 218. FDIC borrowing authority.
 * Sec. 219. Exemption from taxation; limitation on borrowing.
 * Sec. 220. Reports.
 * Sec. 221. Regulations governing insured depository institutions.
 * Sec. 222. Activities of savings associations.
 * Sec. 223. Nondiscrimination.
 * Sec. 224. Brokered deposits.
 * Sec. 225. Contracts between depository institutions and persons providing goods, products, or services.
 * Sec. 226. Savings association insurance fund industry advisory committee established.


 * TITLE III — SAVINGS ASSOCIATIONS
 * Sec. 301. Amendment to Home Owners' Loan Act of 1933.
 * Sec. 302. Savings provisions.
 * Sec. 303. Qualified thrift lender test.
 * Sec. 304. Transitional rule for certain transactions with affiliates.
 * Sec. 305. Transitional rules regarding certain loans and effective dates.
 * Sec. 306. Amendment of additional powers of Director.
 * Sec. 307. Amendment to title 31, United States Code.
 * Sec. 308. Preserving minority ownership of minority financial institutions.


 * TITLE IV — TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY
 * Sec. 401. FSLIC and Federal Home Loan Bank Board abolished.
 * Sec. 402. Continuation and coordination of certain regulations.
 * Sec. 403. Determination of transferred functions and employees.
 * Sec. 404. Rights of employees of abolished agencies.
 * Sec. 405. Division of property and facilities.
 * Sec. 406. Report.
 * Sec. 407. Repeals.


 * TITLE V — FINANCING FOR THRIFT RESOLUTIONS
 * Subtitle A — Oversight Board and Resolution Trust Corporation
 * Sec. 501. Oversight Board and Resolution Trust Corporation established.
 * Subtitle B — Resolution Funding Corporation
 * Sec. 511. Resolution Funding Corporation established.
 * Sec. 512. Financing Corporation.


 * TITLE VI — THRIFT ACQUISITION ENHANCEMENT PROVISIONS
 * Sec. 601. Acquisition of thrift institutions by bank holding companies.
 * Sec. 602. Technical amendments to the Bank Holding Company Act.
 * Sec. 603. Passive investments by companies controlling certain nonbank banks.
 * Sec. 604. Purchase of minority interest in undercapitalized savings associations by other savings and loan holding companies allowed.


 * TITLE VII — FEDERAL HOME LOAN BANK SYSTEM REFORMS
 * Subtitle A — Federal Home Loan Bank Act Amendments
 * Sec. 701. Definitions.
 * Sec. 702. Federal Housing Finance Board established.
 * Sec. 703. Termination of the Federal Home Loan Bank Board.
 * Sec. 704. Eligibility for membership.
 * Sec. 705. Repeal of provision relating to rate of interest on deposits.
 * Sec. 706. Capital stock.
 * Sec. 707. Election of Bank directors.
 * Sec. 708. Repeal of provisions relating to certain powers of the Federal Home Loan Bank Board.
 * Sec. 709. Powers and duties of Banks.
 * Sec. 710. Eligibility of borrowers to secure advances.
 * Sec. 711. Administrative expenses.
 * Sec. 712. Nonadministrative expenses.
 * Sec. 713. Federal Savings and Loan Insurance Corporation Industry Advisory Committee.
 * Sec. 714. Advances.
 * Sec. 715. Amendments relating to withdrawal from Federal Home Loan Bank membership.
 * Sec. 716. Repeal of provisions relating to lawful contract rate.
 * Sec. 717. Bank stock and obligations.
 * Sec. 718. Thrift Advisory Council.
 * Sec. 719. Examination of members.
 * Sec. 720. Liquidity.
 * Sec. 721. Affordable housing.
 * Sec. 722. Transferred employees of Federal Home Loan Banks and joint offices.
 * Sec. 723. Transitional provisions.
 * Sec. 724. Federal Home Loan Bank reserves.
 * Sec. 725. Special account.
 * Subtitle B — Federal Home Loan Mortgage Corporation
 * Sec. 731. Federal Home Loan Mortgage Corporation.
 * Subtitle C — Technical and Conforming Amendments
 * Sec. 741. Repeal of limitation of obligation for administrative expenses.
 * Sec. 742. Amendment of title 5, United States Code.
 * Sec. 743. Amendment of Balanced Budget and Emergency Deficit Control Act provisions.
 * Sec. 744. Conforming amendments to financial institution related Acts.


 * TITLE VIII — BANK CONSERVATION ACT AMENDMENTS
 * Sec. 801. Definitions.
 * Sec. 802. Appointment of conservator.
 * Sec. 803. Examinations.
 * Sec. 804. Termination of conservatorship.
 * Sec. 805. Conservator; powers and duties.
 * Sec. 806. Liability protection.
 * Sec. 807. Rules and regulations.
 * Sec. 808. Repeals.


 * TITLE IX — REGULATORY ENFORCEMENT AUTHORITY AND CRIMINAL ENHANCEMENTS
 * Subtitle A — Expanded Enforcement Powers, Increased Penalties, and Improved Accountability
 * Sec. 901. Institution-affiliated parties of a depository institution subject to administrative enforcement orders; substitution of `depository institution' for `bank' in enforcement provisions.
 * Sec. 902. Amendments to cease and desist authority with respect to restitution, restrictions on specific activities, grounds for issuance of a temporary order, and incomplete or inaccurate records.
 * Sec. 903. Merger of removal and prohibition authority.
 * Sec. 904. Industrywide application of removal, suspension, and prohibition orders.
 * Sec. 905. Enforcement proceedings allowed after separation from service.
 * Sec. 906. Expansion of removal powers for state criminal proceedings.
 * Sec. 907. Amendments to expand and increase civil money penalties.
 * Sec. 908. Clarification of criminal penalty provisions for violation of certain orders.
 * Sec. 909. Supervisory records.
 * Sec. 910. Increased penalty for participation by convicted individuals.
 * Sec. 911. Amendments to various provisions of law relating to reports.
 * Sec. 912. Authority of the FDIC to take enforcement action against savings associations.
 * Sec. 913. Public disclosure of enforcement actions required.
 * Sec. 914. Agency disapproval of directors and senior executive officers of certain depository institutions.
 * Sec. 915. Clarification of NCUA's authority to conduct compliance investigations.
 * Sec. 916. Improved administrative hearings and procedures.
 * Sec. 917. Task force study of delegation of enforcement actions.
 * Sec. 918. Annual report to Congress.
 * Sec. 919. Credit union audit requirements.
 * Sec. 920. Technical amendments relating to administrative and judicial review.
 * Subtitle B — Termination of Deposit Insurance
 * Sec. 926. Revision of procedures for termination of FDIC deposit insurance.
 * Subtitle C — Improving Early Detection of Misconduct and Encouraging Informants
 * Sec. 931. Information required to be made available to outside auditors.
 * Sec. 932. Depository institution employee protection remedy.
 * Sec. 933. Reward for information leading to recoveries or civil penalties.
 * Subtitle D — Right to Financial Privacy Act Amendments
 * Sec. 941. Definitions.
 * Sec. 942. Additional exceptions.
 * Sec. 943. Prohibition.
 * Sec. 944. Miscellaneous provisions.
 * Subtitle E — Civil Penalties for Violations Involving Financial Institutions
 * Sec. 951. Civil penalties.
 * Subtitle F — Criminal Law and Procedure
 * Sec. 961. Increased criminal penalties for certain financial institution offenses.
 * Sec. 962. Miscellaneous revisions to title 18.
 * Sec. 963. Civil and criminal forfeiture.
 * Sec. 964. Grand jury secrecy.
 * Sec. 965. Criminal Division Fraud Section regional office.
 * Sec. 966. Department of Justice appropriation authorization.
 * Sec. 967. Authorization of additional appropriations for the judiciary.
 * Sec. 968. Racketeer influenced and corrupt organizations.


 * TITLE X — STUDIES OF FEDERAL DEPOSIT INSURANCE, BANKING SERVICES, AND THE SAFETY AND SOUNDNESS OF GOVERNMENT-SPONSORED ENTERPRISES
 * Sec. 1001. Study of Federal deposit insurance system.
 * Sec. 1002. Survey of bank fees and services.
 * Sec. 1003. General Accounting Office study.
 * Sec. 1004. Study regarding capital requirements for government-sponsored enterprises.


 * TITLE XI — REAL ESTATE APPRAISAL REFORM AMENDMENTS
 * Sec. 1101. Purpose.
 * Sec. 1102. Establishment of Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
 * Sec. 1103. Functions of Appraisal Subcommittee.
 * Sec. 1104. Chairperson of Appraisal Subcommittee; term of Chairperson; meetings.
 * Sec. 1105. Officers and staff.
 * Sec. 1106. Powers of Appraisal Subcommittee.
 * Sec. 1107. Procedures for establishing appraisal standards and requiring the use of certified and licensed appraisers.
 * Sec. 1108. Startup funding.
 * Sec. 1109. Roster of State certified or licensed appraisers; authority to collect and transmit fees.
 * Sec. 1110. Functions of the Federal financial institutions regulatory agencies relating to appraisal standards.
 * Sec. 1111. Time for proposal and adoption of standards.
 * Sec. 1112. Functions of the Federal financial institutions regulatory agencies relating to appraiser qualifications.
 * Sec. 1113. Transactions requiring the services of a State certified appraiser.
 * Sec. 1114. Transactions requiring the services of a State licensed appraiser.
 * Sec. 1115. Time for proposal and adoption of rules.
 * Sec. 1116. Certification and licensing requirements.
 * Sec. 1117. Establishment of State appraiser certifying and licensing agencies.
 * Sec. 1118. Monitoring of State appraiser certifying and licensing agencies.
 * Sec. 1119. Recognition of State certified and licensed appraisers for purposes of this title.
 * Sec. 1120. Violations in obtaining and performing appraisals in federally related transactions.
 * Sec. 1121. Definitions.
 * Sec. 1122. Miscellaneous provisions.


 * TITLE XII — MISCELLANEOUS PROVISIONS
 * Sec. 1201. GAO study of credit union system.
 * Sec. 1202. OCC employment provision.
 * Sec. 1203. NCUA employment provision.
 * Sec. 1204. Expansion of use of underutilized minority banks, women's banks, and low-income credit unions.
 * Sec. 1205. Credit standards advisory committee.
 * Sec. 1206. Comparability in compensation schedules.
 * Sec. 1207. Study by Secretary of the Treasury.
 * Sec. 1208. Expenditure of taxpayer money only for deposit insurance purposes.
 * Sec. 1209. Amendment to section 5373 of title 5, United States Code.
 * Sec. 1210. Farm Credit Administration and Farm Credit System Insurance Corporation employment provision.
 * Sec. 1211. Fair lending oversight and enforcement.
 * Sec. 1212. Amendment to the Community Reinvestment Act of 1977.
 * Sec. 1213. Comptroller General audit and access to records.
 * Sec. 1214. Amendment related to the Hart-Scott-Rodino Act.
 * Sec. 1215. Capital and accounting standards.
 * Sec. 1216. Equal opportunity.
 * Sec. 1217. NCUA powers as liquidating agent and conservator.
 * Sec. 1218. Risk management training.
 * Sec. 1219. Cross-marketing restrictions.
 * Sec. 1220. Separability of provisions.


 * TITLE XIII — PARTICIPATION BY STATE HOUSING FINANCE AUTHORITIES AND NONPROFIT ENTITIES
 * Sec. 1301. Definitions.
 * Sec. 1302. Authorization for State housing finance agencies and nonprofit entities to purchase mortgage-related assets.


 * TITLE XIV — TAX PROVISIONS
 * Sec. 1401. Early termination of special reorganization rules for financial institutions.
 * Sec. 1402. Tax exemption for Resolution Trust Corporation and Resolution Funding Corporation.
 * Sec. 1403. Annual reports on transactions in which Federal financial assistance provided.
 * Sec. 1404. Studies of relationship between public debt and activities of Government-sponsored enterprises.

Approved August 9, 1989.

Legislative History

 * HOUSE REPORTS:
 * No. 101-54, Parts I, III & VII, (Comm. on Banking, Finance and Urban Affairs)
 * No. 101-54, Part II, (Comm. on Ways and Means)
 * No. 101-54, Part IV, (Comm. on Rules)
 * No. 101-54, Part V, (Comm. on the Judiciary)
 * No. 101-54, Part VI, (Comm. on Government Operations)
 * No. 101-209 (Comm. of Conference)
 * No. 101-222 (Comm. of Conference)
 * CONGRESSIONAL RECORD, Vol. 135 (1989):
 * , considered and passed Senate.
 * , considered and passed House.
 * , considered and passed House.