Page:United States Statutes at Large Volume 103 Part 1.djvu/449

 PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 421 "(4) EXCEPTIONS. —Paragraphs (1) and (2) of this subsection do not apply to— "(A) a savings bank as defined in section 3 of the Federal Deposit Insurance Act; or "(B) a Federal savings association in existence as a Fed- eral savings association on the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989— "(i) that was chartered as a savings bank or coopera- tive bank prior to October 15, 1982; or "(ii) that acquired its principal assets from an institu- tion which was chartered prior to October 15, 1982, as a savings bank or cooperative bank under State law. "(5) DEFINITIONS.—As used in this subsection— "(A) SAVINGS ASSOCIATION. — The term 'savings associa- tion' has the same meaning as in section 10(a)(l)(A) of the Home Owners' Loan Act. "(B) QuAUFiED THRIFT LENDER. —The term 'qualified thrift lender' has the same meaning as in section 10(m) of the Home Owners' Loan Act. "(C) ACTUAL THRIFT INVESTMENT PERCENTAGE. —The term 'actual thrift investment percentage' has the same meaning as in section 10(m) of the Home Owners' Loan Act.". (c) SPECIAL LIQUIDITY ADVANCES.— Section 10 of the Federal Home Loan Bank Act (12 U.S.C. 1430) (as amended by section 710(c) of this Act) is amended by adding at the end the following new subsection: "(h) SPECIAL LIQUIDITY ADVANCES. — "(1) IN GENERAL.— Subject to paragraph (2), the Federal Home Loan Banks may, upon the request of the Director of the Office of Thrift Supervision, make short-term liquidity advances to a savings association that— "(A) is solvent but presents a supervisory concern because of such association's poor financial condition; and "(B) has reasonable and demonstrable prospects of returning to a satisfactory financial condition. " (2) INTEREST ON AND SECURITY FOR SPECIAL UQUIDITY AD- VANCES. —Any loan by a Federal Home Loan Bank pursuant to paragraph (1) shall be subject to all applicable collateral requirements, including the requirements of section 10(a) of this Act, and shall be at an interest rate no less favorable than those made available for similar short-term liquidity advances to savings associations that do not present such supervisory concern.". SEC. 715. AMENDMENTS RELATING TO WITHDRAWAL FROM FEDERAL HOME LOAN BANK MEMBERSHIP. Section 6(h) of the Federal Home Loan Bank Act (as redesignated by section 706 of this Act) is amended by striking "five" and inserting "10". SEC. 716. REPEAL OP PROVISIONS RELATING TO LAWFUL CONTRACT RATE. Section 5 of the Federal Home Loan Bank Act (12 U.S.C. 1425) is hereby repealed.

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