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

�