Page:United States Statutes at Large Volume 103 Part 1.djvu/326

 103 STAT. 298 PUBLIC LAW 101-73 —AUG. 9, 1989 Law enforcement and crime. construed as authorizing such State banking authority to exam- ine the books, records, and assets of such associations. "(3) PROHIBITIONS. — No Federal savings association shall re- ceive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes. Funds deposited or held in trust by the association awaiting investment shall be carried in a separate account and shall not be used by the association in the conduct of its business unless it shall first set aside in the trust department United States bonds or other securities approved by the Director. "(4) SEPARATE UEN. —In the event of the failure of a Federal savings association, the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the association. "(5) DEPOSITS.—Whenever the laws of a State require corpora- tions acting in a fiduciary capacity to deposit securities with the State authorities for the protection of private or court trusts, Federal savings associations so acting shall be required to make similar deposits. Securities so deposited shall be held for the protection of private or court trusts, as provided by the State law. Federal savings associations in such cases shall not be required to execute the bond usually required of individuals if State corporations under similar circumstances are exempt from this requirement. Federal savings associations shall have power to execute such bond when so required by the laws of the State involved. "(6) OATHS AND AFFIDAVITS. — In any case in which the laws of a State require that a corporation acting as trustee, executor, administrator, or in any capacity specified in this section, shall take an oath or make an affidavit, the president, vice president, cashier, or trust officer of such association may take the nec- essary oath or execute the necessary affidavit. "(7) CERTAIN LOANS PROHIBITED. —It shall be unlawful for any Federal savings association to lend any officer, director, or employee any funds held in trust under the powers conferred by this section. Any officer, director, or employee making such loan, or to whom such loan is made, may be fined not more than $50,000 or twice the amount of that person's gain from the loan, whichever is greater, or may be imprisoned not more than 5 years, or may be both fined and imprisoned, in the discretion of the court. "(8) FACTORS TO BE CONSIDERED.— In reviewing applications for permission to exercise the powers enumerated in this section, the Director may consider— "(A) the amount of capital of the applying Federal sav- ings association, "(B) whether or not such capital is sufficient under the circumstances of the case, "(C) the needs of the community to be served, and "(D) any other facts and circumstances that seem to it proper. The Director may grant or refuse the application accordingly, except that no permit shall be issued to any association having capital less than the capital required by State law of State

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