Page:United States Statutes at Large Volume 105 Part 3.djvu/459

 PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2343 (2) ANNUAL PERCENTAGE YIELD. —The term "annual percentage yield" means the total amount of interest that would be received on a $100 deposit, based on the annual rate of simple interest and the frequency of compounding for a 365-day period, expressed as a percentage calculated by a method which shall be prescribed by the Board in regulations. (3) ANNUAL RATE OF SIMPLE INTEREST. —The term "annual rate of simple interest"— (A) means the annualized rate of interest paid with respect to each compounding period, expressed as a percentage; and (B) may be referred to as the "annual percentage rate". (4) BOARD.—The term "Board" means the Board of Governors of the Federal Reserve System. (5) DEPOSIT BROKER. — The term "deposit broker"— (A) has the meaning given to such term in section 29(f)(1) of the Federal Deposit Insurance Act; and (B) includes any person who solicits any amount from any other person for deposit in an insured depository institution. (6) DEPOSITORY INSTITUTION.—The term "depository institution" has the meaning given such term in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act. (7) INTEREST.—The term "interest" includes dividends paid with respect to share draft accounts which are accounts within the meaning of paragraph (3). (8) MULTIPLE RATE ACCOUNT.— The term "multiple rate account" means any account that has 2 or more annual rates of simple interest which take effect at the same time or in succeeding periods and which are known at the time of disclosure. TITLE III—REGULATORY IMPROVEMENT Subtitle A—Activities SEC. 301. LIMITATIONS ON BROKERED DEPOSITS AND DEPOSIT SOLICI- TATIONS. (a) IN GENERAL. — Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended— (1) in subsection (a), by striking "troubled institution" and inserting "insured depository institution that is not well capitalized"; (2) in subsection (c), by inserting "which is adequately capitalized" after "insured depository institution"; (3) in subsection (d), by striking all after "unsound practice;" and inserting the following: "(2) is necessary to enable the institution to meet the demands of its depositors or pay its obligations in the ordinary course of business; and "(3) is consistent with the conservator's fiduciary duty to minimize the institution's losses. Effective 90 days after the date on which the institution was placed Effective date, in conservatorship, the institution may not accept such deposits.";

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