Page:United States Statutes at Large Volume 103 Part 1.djvu/370

 103 STAT. 342 PUBLIC LAW 101-73 —AUG. 9, 1989 "(5) HEARING.— Any savings and loan holding company or any subsidiary of such a holding company against which any pen- alty is assessed under this subsection shall be afforded a hearing if such savings and loan holding company or such subsidiary, as the case may be, submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceed- ing under this subsection. 12 USC 1468. " SEC. 11. TRANSACTIONS WITH AFFILIATES; EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHARE- HOLDERS. " (a) AFFILIATE TRANSACTIONS. — "(1) IN GENERAL.— Sections 23A and 23B of the Federal Re- serve Act shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act), except that— "(A) no loan or other extension of credit may be made to any affiliate unless that affiliate is engaged only in activi- ties described in section 10(c)(2)(F)(i); and "(B) no savings association may enter into any trans- action described in section 23A03)(7)(B) of the Federal Re- serve Act with any affiliate other than with respect to shares of a subsidiary. " (2) SISTER BANK EXEMPTION MADE AVAILABLE TO SAVINGS ASSOCIATIONS. — "(A) SAVINGS ASSOCIATIONS CONTROLLED BY BANK HOLDING COMPANIES.— Every savings association more than 80 per- cent of the voting stock of which is owned by a company described in section 10(c)(8) shall be treated as a bank for purposes of section 23A(d)(l) and section 23B of the Federal Reserve Act, if every savings association and bank con- trolled by such company complies with all applicable capital requirements on a fully phased-in basis and without reli- ance on goodwill. "(B) SAVINGS ASSOCIATIONS GENERALLY. —Effective on and after January 1, 1995, every savings association shall be treated as a bank for purposes of section 23A(d)(l) and section 23B of the Federal Reserve Act. "(3) AFFILIATES DESCRIBED. — Any company that would be an affiliate (as defined in sections 23A and 23B of the Federal Reserve Act) of any savings association if such savings associa- tion were a member bank (as such term is defined in such Act) shall be deemed to be an affiliate of such savings association for purposes of paragraph (1). "(4) ADDITIONAL RESTRICTIONS AUTHORIZED. — The Director may impose such additional restrictions on any transaction between any savings association and any affiliate of such sav- ings association as the Director determines to be necessary to protect the safety and soundness of the savings association. "(b) EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS.— "(1) IN GENERAL.— Section 22(h) of the Federal Reserve Act shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act).

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