Page:United States Statutes at Large Volume 81.djvu/143

 81 STAT. J

PUBLIC LAW 90-44-JULY 3, 1967

109

Public Law 90-44 AN ACT To amend section 22(g) of the Federal Reserve Act relating to loans to executive officers by member banks of the Federal Reserve System, and to amend the Federal Credit Union Act to modify the loan provisions relating to directors, members of the supervisory committee, and members of the credit committee of Federal credit unions.

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Be it enacted 'by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. eralTidu"'* ^^'^" 375a) is amended to read: unions. " (g)(1) Except as authorized under this subsection, no member Loans to offibank may extend credit in any manner to any of its own executive ''^I'Stat. 7i6; officers. No executive officer of any member bank may become indebted 53 Stat. 842. to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of conditions, credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— " (A) the bank would be authorized to make it to borrowers other than its officers; " (B) it is on terms not more favorable than those afforded other borrowers; "(C) the officer has submitted a detailed current financial statement; and " (D) it is on condition that it shall become due and payable on demand of the bank at any t!me when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. "(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— " (A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and " (B) no other loan by the bank to the officer under authority of this paragraph is outstanding. "(3) A member bank may make extensions of credit to any execu- Educational tive officer of the bank, not exceeding the aggregate amount of $10,000 '°^"*outstanding at any one time, to finance the education of the children of the officer. "(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. "(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. "(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the

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