Page:United States Statutes at Large Volume 103 Part 1.djvu/288

 103 STAT. 260 PUBLIC LAW 101-73—AUG. 9, 1989 . ^^^;.;. "(B) RESTRICTIONS. — •••'•^ " (i) IN GENERAL. — Notwithstanding subparagraph (A), if- "(I) a savings association described in such subparagraph does not have its home office in the State of the bank holding company bank subsidi- ary, and "(II) such association does not qualify as a domes- tic building and loan association under section 7701(a)(19) of the Internal Revenue Code of 1986, or does not meet the asset composition test imposed by subparagraph (C) of that section on institutions seeking so to qualify, ' ^.. gmjjj savings association shall be subject to the condi- tions upon which a bank may retain, operate, and establish branches in the State in which the Savings Association Insurance Fund member is located. "(ii) TRANSITION PERIOD. — The Corporation, for good cause shown, may allow a savings association up to 2 years to comply with the requirements of clause (i). " (5) ASSISTANCE BEFORE APPOINTMENT OF CONSERVATOR OR RE- CEIVER. — "(A) ASSISTANCE PROPOSALS.— The Corporation shall con- sider proposals by Savings Association Insurance Fund members for assistance pursuant to subsection (c) before grounds exist for appointment of a conservator or receiver for such member under the following circumstances: "(i) TROUBLED CONDITION CRITERIA. —The Corporation ' determines— "(I) that grounds for appointment of a conserva- tor or receiver exist or likely will exist in the future unless the member's tangible capital is in- •' creased; "(II) that it is unlikely that the member can achieve positive tangible capital without assist- ance; and "(III) that providing assistance pursuant to the member's proposal would be likely to lessen the risk to the Corporation. ^ " (ii) OTHER CRITERIA. —The member meets the follow- ing criteria: "(I) Before enactment of the Financial Institu- tions Reform, Recovery, and Enforcement Act of " 1989, the member was solvent under applicable regulatory accounting principles but had negative tangible capital. "(II) The member's negative tangible capital ' ^'' position is substantially attributable to its partici- pation in acquisition and merger transactions that were instituted by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation for supervisory reasons. "(Ill) The member is a qualified thrift lender (as defined in section 10(m) of the Home Owners' Loan Act) or would be a qualified thrift lender if commercial real estate owned and nonperforming commercial loans acquired in acquisition and

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