Page:United States Statutes at Large Volume 103 Part 1.djvu/312

 103 STAT. 284 PUBLIC LAW 101-73 —AUG. 9, 1989 in connection therewith, and otherwise engage in or participate in credit card operations. "(5) MUTUAL CAPITAL CERTIFICATES.— In accordance with regu- lations issued by the Director, mutual capital certificates may be issued and sold directly to subscribers or through under- writers. Such certificates may be included in calculating capital for the purpose of subsection (t) to the extent permitted by the Director. The issuance of certificates under this paragraph does not constitute a change of control or ownership under this Act or any other law unless there is in fact a change in control or reorganization. Regulations relating to the issuance and sale of mutual capital certificates shall provide that such certificates— "(A) are subordinate to all savings accounts, savings cer- tificates, and debt obligations; "(B) constitute a claim in liquidation on the general reserves, surplus, and undivided profits of the Federal sav- ings association remaining after the payment in full of all savings accounts, savings certificates, and debt obligations; "(C) are entitled to the payment of dividends; and "(D) may have a fixed or variable dividend rate. "(c) LOANS AND INVESTMENTS. — To the extent specified in regula- tions of the Director, a Federal savings association may invest in, sell, or otherwise deal in the following loans and other investments: "(1) LOANS OR INVESTMENTS WITHOUT PERCENTAGE OF ASSETS UMiTATiON.— Without limitation as a percentage of assets, the following are permitted: "(A) ACCOUNT LOANS. — Loans on the security of its sav- ings accounts and loans specifically related to transaction accounts. "(B) RESIDENTIAL REAL PROPERTY LOANS.— Loans on the security of liens upon residential real property. "(C) UNITED STATES GOVERNMENT SECURITIES. —Invest- ments in obligations of, or fully guaranteed as to principal and interest by, the United States. "(D) FEDERAL HOME LOAN BANK AND FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES.— Investments in the stock or bonds of a Federal home loan bank or in the stock of the Federal National Mortgage Association. "(E) FEDERAL HOME LOAN MORTGAGE CORPORATION IN- STRUMENTS.—Investments in mortgages, obligations, or other securities which are or have been sold by the Federal \ Home Loan Mortgage Corporation pursuant to section 305 or 306 of the Federal Home Loan Mortgage Corporation Act. " (F) OTHER GOVERNMENT SECURITIES.—Investments in -^ obligations, participations, securities, or other instruments issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association, the Student Loan Marketing Association, the Government National Mortgage Association, or any agency of the United States. A savings association may issue and sell securities which are guaranteed pursuant to section 306(g) of the National Housing Act. "(G) DEPOSITS.— Investments in accounts of any insured ,... depository institution, as defined in section 3 of the Federal Deposit Insurance Act.

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