Page:United States Statutes at Large Volume 103 Part 1.djvu/351

 PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 323 "(B) EXEMPTION FOR ACTIVITIES LAWFULLY ENGAGED IN BEFORE MARCH 5, 1987. —Notwithstanding paragraph (IXQ and subject to subpargigraphs (C) and (D), any savings and loan holding company which received approval, before March 5, 1987, under subsection (e) of this section to acquire control of a savings association may engage, directly or through any subsidiary (other than a savings association subsidiary of such company), in any activity in which such company or such subsidiary was lawfully engaged on such date., "(C) TERMINATION OF SUBPARAGRAPH (B) EXEMPTION. — The exemption provided under subparagraph (B) for activi- ties engaged in by any savings and loan holding company or a subsidiary of such company (which is not a savings association) which would otherwise be prohibited under paragraph (I)(C) shall terminate with respect to such activi- ties of such company or subsidiary upon the occurrence (after August 10, 1987) of any of the following: "(i) The savings and loan holding company acquires control of a bank or an additional savings association (other than a savings association acquired pursuant to ^ section 13(c) or 13(k) of the Federal Deposit Insurance Act or section 406(f) or 408(m) of the National Housing Act). "(ii) Any savings association subsidiary of the savings and loan holding company fails to qualify as a domestic building and loan association under section 7701(a)(19) of the Internal Revenue (Dode of 1986. "(iii) The savings and loan holding company engages in any business activity— "(I) which is not described in paragraph (2); and "(II) in which it was not engaged on March 5, 1987. "(iv) Any savings association subsidiary of the sav- ings and loan holding company increases the number of locations from which such savings association conducts business after March 5, 1987 (other than an increase which occurs in connection with a transaction under section 13(c) or (k) of the Federal Deposit Insurance Act or section 408(m) of the National Housing Act. "(v) Any savings association subsidiary of the savings and loan holding company permits any overdraft (including an intraday overdraft), or incurs any such overdraft in its account at a Federal Reserve bank, on behalf of an affiliate, unless such overdraft is the result of an inadvertent computer or accounting error that is beyond the control of both the savings association subsidiary and the affiliate. "(D) ORDER BY DIRECTOR TO TERMINATE SUBPARAGRAPH (B) ACTIVITY. —Any activity described in subparagraph (B) may also be terminated by the Director, after opportunity for hearing, if the Director determines, having due regard for the purposes of this title, that such action is necessary to prevent conflicts of interest or unsound practices or is in the public interest. "(7) FOREIGN SAVINGS AND LOAN HOLDING COMPANY.— Notwith- standing any other provision of this section, any savings and

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