Page:United States Statutes at Large Volume 103 Part 1.djvu/372

 103 STAT. 344 PUBLIC LAW 101-73 —AUG. 9, 1989 "(A) the savings association's qualified thrift investments equal or exceed 70 percent of the savings association's portfolio assets; and "(B) the savings association's qualified thrift investments continue to equal or exceed 70 percent of the savings association's portfolio assets, as measured by a daily or weekly average of such qualified thrift investments and such portfolio assets, for the 2-year period beginning on July 1, 1991, and for each 2-year period thereafter. "(2) EXCEPTIONS GRANTED BY DIRECTOR.— Notwithstanding paragraph (1), the Director may grant such temporary and limited exceptions from the minimum actual thrift investment percentage requirement contained in such paragraph as the Director deems necessary if— "(A) the Director determines that extraordinary cir- cumstances exist, such as when the effects of high interest rates reduce mortgage demand to such a degree that an insufficient opportunity exists for a savings association to meet such investment requirements; or "(B) the Director determines that— "(i) the grant of any such exception will significantly facilitate an acquisition under section 13(c) or 13(k) of the Federal Deposit Insurance Act; "(ii) the acquired association will comply with the transition requirements of paragraph (7)(B), as if the date of the exemption were the starting date for the transition period described in that paragraph; and "(iii) the Director determines that the exemption will not have an undue adverse effect on competing savings associations in the relevant market and will further the purposes of this subsection. "(3) FAILURE TO BECOME AND REMAIN A QUALIFIED THRIFT LENDER.— "(A) IN GENERAL. — A savings association that fails to become or remain a qualified thrift lender shall either become one or more banks (other than a savings bank) or be subject to subparagraph (B), except as provided in subpara- graph (D). " (B) RESTRICTIONS APPLICABLE TO SAVINGS ASSOCIATIONS THAT ARE NOT QUALIFIED THRIFT LENDERS.— "(i) RESTRICTIONS EFFECTIVE IMMEDIATELY.— The fol- lowing restrictions shall apply to a savings association beginning on the date on which the savings association should have become or ceases to be a qualified thrift lender: "(I) ACTIVITIES.—The savings association shall not make any new investment (including an invest- ment in a subsidiary) or engage, directly or in- directly, in any other new activity unless that investment or activity would be permissible for the savings association if it were a national bank, and is also permissible for the savings association as a savings association. "(II) BRANCHING.—The savings association shall not establish any new branch office at any location at which a national bank located in the savings association's home State may not establish a

�