Page:United States Statutes at Large Volume 103 Part 1.djvu/337

 PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 309 "(I) such exemption would pose no significant risk to the affected deposit insurance fund; "(II) the savings association's management is competent; "(III) the savings association is in substantial compliance with all applicable statutes, regula- tions, orders, and supervisory agreements and directives; and "(IV) the savings association's management has not engaged in insider dealing, speculative prac- tices, or any other activities that have jeopardized the association's safety and soundness or contrib- uted to impairing the association's capital. "(ii) DENIAL OR REVOCATION OF APPROVAL. —The Director shall deny any application submitted under clause (i) and revoke any prior approval granted with respect to any such application if the Director deter- mines that the association's failure to meet any capital standards prescribed under paragraph (1) is accom- panied by— "(I) a pattern of consistent losses; "(II) substantial dissipation of assets; "(III) evidence of imprudent management or business behavior; "(IV) a material violation of any Federal law, any law of any State to which such association is subject, or any applicable regulation; or "(V) any other unsafe or unsound condition or activity, other than the failure to meet such capital standards. "(D) SUBMISSION OF PLAN REQUIRED. —Any application submitted under subparagraph (A) shall be accompanied by a plan which— "(i) meets the requirements of paragraph (6)(A)(ii); and "(ii) is acceptable to the Director. "(E) FAILURE TO COMPLY WITH PLAN.— The Director shall treat as an unsafe and unsound practice any material failure by any savings association which has been granted an exemption under this paragraph to comply with the provisions of any plan submitted by such association under subparagraph (D). "(F) EXEMPTION NOT AVAILABLE WITH RESPECT TO UNSAFE OR UNSOUND PRACTICES. —Th is paragraph does not limit any authority of the Director under any other provision of law, including section 8 of the Federal Deposit Insurance Act, to take any appropriate action with respect to any unsafe or unsound practice or condition of any savings association, other than the failure of such savings association to comply with the capital standards prescribed under paragraph (1). "(8) TEMPORARY AUTHORITY TO MAKE EXCEPTIONS FOR ELIGIBLE SAVINGS ASSOCIATIONS.— " (A) IN GENERAL. — Notwithstanding paragraph (1)(C), the Director may, by order, make exceptions to the capital standards prescribed under paragraph (1) for eligible sav- ings associations. No exception under this paragraph shall be effective after January 1, 1991.

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