Page:United States Statutes at Large Volume 105 Part 3.djvu/475

 PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2359 cipal shareholder shall knowingly receive (or knowingly permit any of that person's related interests to receive) from a member bank, directly or indirectly, any extension of credit not authorized under this subsection.". (f) APPLYING UNIFORM RULES TO ALL COMPANIES CONTROLLING DEPOSITORY INSTITUTIONS. —Section 22(h)(8) of the Federal Reserve Act (12 U.S.C. 375b(8)), as amended by subsection (a), is amended by striking "bank holding". (g) APPLYING SAFEGUARDS TO INSIDER TRANSACTIONS WITH DEPOSI- TORY INSTITUTION'S SUBSIDIARIES. —Section 22(h)(9)(E) of the Federal Reserve Act (12 U.S.C. 375b(9)(E)), as amended by subsection (a), is amended to read as follows: "(E) MEMBER BANK. —The term 'member bank' includes any subsidiary of a member bank.". (h) APPLYING UNIFORM RULES TO ALL PRINCIPAL SHAREHOLDERS.— Section 22(h)(9)(F) of the Federal Reserve Act (12 U.S.C. 375b(9)(F)), as amended by subsection (a), is amended by striking the last sentence. (i) LIMITING SAVINGS ASSOCIATIONS' EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS. —Section ll(b)(l) of the Home Owners' Loan Act (12 U.S.C. 1468(b)(l)) is amended by striking "Section 22(h)" and inserting "Subsections (g) and (h) of section 22". (j) PREVENTING SAVINGS ASSOCIATIONS FROM MAKING PREF- ERENTIAL EXTENSIONS OF CREDIT THROUGH CORRESPONDENT INSTITU- TIONS.—Section 106(b)(2)(H)(i) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972(2)(H)(i)) is amended by inserting ", a savings bank, and a savings association (as those terms are defined in section 3 of the Federal Deposit Insurance Act)" after "mutual savings bank". (k) LIMITING STATE NONMEMBER BANK'S EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS; CLARIFYING THE PROHIBITION ON PREFERENTIAL EXTENSIONS OF CREDIT TO INSIDERS. — Section 18(j) of the Federal Deposit Insurance Act (12 U.S.C. 1828(j)) is amended to read as follows: "(j) RESTRICTIONS ON TRANSACTIONS WITH AFFILIATES AND INSID- ERS.— "(1) TRANSACTIONS WITH AFFIUATES.— "(A) IN GENERAL. —Sections 23A and 23B of the Federal Reserve Act shall apply with respect to every nonmember insured bank in the same manner and to the same extent as if the nonmember insured bank were a member bank. "(B) AFFILIATE DEFINED.— For the purpose of subparagraph (A), any company that would be an affiliate (as defined in sections 23A and 23B) of a nonmember insured bank if the nonmember insured bank were a member bank shall be deemed to be an affiliate of that nonmember insured bank. "(2) EXTENSIONS OF CREDIT TO OFFICERS, DIRECTORS, AND PRIN- CIPAL SHAREHOLDERS. —Subsections (g) and (h) of section 22 of the Federal Reserve Act shall apply with respect to every nonmember insured bank in the same manner and to the same extent as if the nonmember insured bank were a member bank. "(3) AVOIDING EXTRATERRITORIAL APPLICATION TO FOREIGN BANKS. — "(A) TRANSACTIONS WITH AFFILIATES. — Paragraph (1) shall not apply with respect to a foreign bank solely because the foreign bank has an insured branch.

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