Page:United States Statutes at Large Volume 103 Part 1.djvu/333

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 305 "(ii) the savings association is in substantial compli- ance with all applicable statutes, regulations, orders, and supervisory agreements and directives; and "(iii) the savings association's management has not engaged in insider dealing, speculative practices, or any other activities that have jeopardized the associa- tion's safety and soundness or contributed to impairing the association's capital. "(4) SPECIAL RULES FOR PURCHASED MORTGAGE SERVICING RIGHTS.— "(A) IN GENERAL. — Notwithstanding paragraphs (1)(C) and (9), the standards prescribed under paragraph (1) may permit a savings association to include in calculating cap- ital for the purpose of the leverage limit and risk-based capital requirement prescribed under paragraph (1), on terms no less stringent than under both the capital stand- ards applicable to State nonmember banks and (except as to the amount that may be included in calculating capital) the capital standards applicable to national banks, 90 percent of the fair market value of readily marketable purchased mortgage servicing rights. "(B) TANGIBLE CAPITAL REQUIREMENT.—Notwithstanding paragraphs (I)(C) and (9)(C), the standards prescribed under paragraph (1) may permit a savings association to include in calculating capital for the purpose of the tangible capital requirement prescribed under paragraph (1), on terms no less stringent than under both the capital standards ap- plicable to State nonmember banks and (except as to the amount that may be included in calculating capital) the capital standards applicable to national banks, 90 percent of the fair market value of readily marketable purchased mortgage servicing rights. "(C) PERCENTAGE LIMITATION PRESCRIBED BY FDIC. — Not- withstanding paragraph (1)(C) and subparagraphs (A) and (B) of this paragraph— "(i) for the purpose of subparagraph (A), the maxi- mum amount of purchased mortgage servicing rights that may be included in calculating capital under the leverage limit and the risk-based capital requirement prescribed under paragraph (1) may not exceed the amount that could be included if the savings associa- tion were an insured State nonmember bank; and "(ii) for the purpose of subparagraph (B), the Cor- poration shall prescribe a maximum percentage of the tangible capital requirement that savings associations may satisfy by including purchased mortgage servicing rights in calculating such capital. "(D) QUARTERLY VALUATION. —The fair market value of purchased mortgage servicing rights shall be determined not less often than quarterly. "(5) SEPARATE CAPITAUZATION REQUIRED FOR CERTAIN SUBSIDI- ARIES. — "(A) IN GENERAL. — In determining compliance with cap- ital standards prescribed under paragraph (1), all of a savings association's investments in and extensions of credit to any subsidiary engaged in activities not permis-

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