Page:United States Statutes at Large Volume 103 Part 1.djvu/289

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 261 merger transactions that were instituted by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation for super- visory reasons were excluded from the member's total assets. "(IV) The appropriate Federal banking agency has determined that the member's management is competent and has complied with applicable laws, rules, and supervisory directives and orders. "(V) The member's management did not engage ' in insider dealing or speculative practices or other activities that jeopardized the member's safety and soundness or contributed to its impaired capital position. "(VI) The member's offices are located in an ^f' economically depressed region. " (B) CORPORATION CONSIDERATION OF ASSISTANCE PRO- POSAL. —If a member meets the requirements of clauses (i) and (ii) of subparagraph (A), the Corporation shall consider providing direct financial assistance. "(C) ECONOMICALLY DEPRESSED REGION DEFINED.— For pur- poses of this paragraph, the term 'economically depressed region' means any geographical region which the Corpora- tion determines by regulation to be a region within which real estate values have suffered serious decline due to severe economic conditions, such as a decline in energy or agricultural values or prices.". SEC. 218. FDIC BORROWING AUTHORITY. Section 14 of the Federal Deposit Insurance Act (12 U.S.C. 1824) is amended— (1) by striking out "$3,000,000,000 outstanding at any one time" and inserting in lieu thereof "$5,000,000,000 outstanding at any one time, subject to the approval of the Secretary of the Treasury"; and (2) by adding at the end the following: "The Corporation may employ such funds for purposes of the Bank Insurance Fund or the Savings Association Insurance Fund and the borrowing shall become a liability of each such fund to the extent funds are employed therefor. There are hereby appropriated to the Secretary, for fiscal year 1989 and each fiscal year thereafter, such sums as may be necessary to carry out this section."; and (3) by striking out "the current average rate on outstanding marketable and nonmarketable obligations of the United States as of the last day of the month preceding the making of such loan" and inserting in lieu thereof the following: "an amount determined by the Secretary of the Treasury, taking into consid- eration current market yields on outstanding marketable obligations of the United States of comparable maturities". SEC. 219. EXEMPTION FROM TAXATION; LIMITATION ON BORROWING. Section 15 of the Federal Deposit Insurance Act (12 U.S.C. 1825) is amended— (1) by inserting "(a) GENERAL RULE. — " before "AH"; and (2) by adding at the end the following new subsections: "(b) OTHER EXEMPTIONS. —When acting as a receiver, the following provisions shall apply with respect to the Corporation:

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