Page:United States Statutes at Large Volume 103 Part 1.djvu/334

 103 STAT. 306 PUBLIC LAW 101-73 —AUG. 9, 1989 sible for a national bank shall be deducted from the savings association's capital. " (B) EXCEPTION FOR AGENCY ACTIVITIES. —Subparagraph (A) shall not apply with respect to a subsidiary engaged, solely as agent for its customers, in activities not permis- sible for a national bank unless the Corporation, in its sole discretion, determines that, in the interests of safety and soundness, this subparagraph should cease to apply to that subsidiary. "(C) OTHER EXCEPTIONS.— Subparagraph (A) shall not apply with respect to any of the following: "(i) MORTGAGE BANKING SUBSIDIARIES.— A savings association's investments in and extensions of credit to a subsidiary engaged solely in mortgage-banking activi- ties. "(ii) SUBSIDIARY INSURED DEPOSITORY INSTITUTIONS. — A savings association's investments in and extensions of credit to a subsidiary— "(I) that is itself an insured depository institu- tion or a company the sole investment of which is an insured depository institution, and "(II) that was acquired by the parent insured depository institution prior to May 1, 1989. "(iii) CERTAIN FEDERAL SAVINGS BANKS. —Any Federal savings association existing as a Federal savings association on the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989— "(I) that was chartered prior to October 15, 1982, as a savings bank or a cooperative bank under State law; or "(II) that acquired its principal assets from an association that was chartered prior to October 15, 1982, as a savings bank or a cooperative bank under State law. " (D) TRANSITION RULE. — "(i) INCLUSION IN CAPITAL. —Notwithstanding subparagraph (A), if a savings association's subsidiary was, as of April 12, 1989, engaged in activities not permissible for a national bank, the savings association may include in calculating capital the applicable percentage (set forth in clause (ii)) of the lesser of— "(I) the savings association's investments in and extensions of credit to the subsidiary on April 12, 1989; or "(II) the savings association's investments in and extensions of credit to the subsidiary on the date as of which the savings association's capital is being determined. " (ii) APPLICABLE PERCENTAGE.— For purposes of clause (i), the applicable percentage is as follows: "For the following The applicable period: percentage is: Prior to July 1, 1990 100 percent July 1, 1990-June 30, 1991 90 percent July 1, 1991-June 30, 1992 75 percent July 1, 1992-June 30, 1993 60 percent July 1, 1993-June 30, 1994 40 percent Thereafter 0 percent

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