Page:United States Statutes at Large Volume 87.djvu/374

 342

PUBLIC LAW 93-100-AUG. 16, 1973

[87

STAT.

Public Law 93-100 August 16, 1973 ' [ H. R. 6370]

Financial institutions. Regulation.

Ante,

p. 147.

AN ACT To extend certain laws relating to the payment of interest on time and savings deposits, to prohibit depository institutions from permitting negotiable orders of withdrawal to be made with respect to any deposit or account on which any interest or dividend is paid, to authorize Federal savings and loan associations and national banks to own stock in and invest in loans to certain State housing corporations, and for other purposes.

Be it enacted by the Senate and House of Representatives United States of Americain Congress assembled,

of the

E X T E N S I O N OF AUTHORITY FOR THE F L E X I B L E REGULATION OF I N T E R E S T RATES ON DEPOSITS AND SHARE ACCOUNTS I N F I N A N C I A L INSTITUTIONS

SECTION 1. Section 7 of the Act of September 21, 1966 (Public Law 89-597), is amended by striking out "August 1, 1973" and inserting in lieu thereof "December 31, 1974". PROHIBITION ON CERTAIN ACTIVITIES BY DEPOSITORY INSTITUTIONS

'•Depository institution."

64 Stat. 8 7 3; 80 Stat. 1046. 12 USC 1813.

48 Stat. 1255; 83 Stat. 3 75. 12 USC 1724. "State".

Penalty.

SEC. 2. (a) No depository institution shall allow the owner of a deposit or account on which interest or dividends are paid to make withdrawals by negotiable or transferable instruments for the purpose of making transfers to third parties, except that such withdrawals may be made in the States of Massachusetts and New Hampshire. (b) For purposes of this section, the term "depository institution" means— (1) any insured bank as defined in section 3 of the Federal Deposit Insurance Act; (2) any State bank as defined in section 3 of the Federal Deposit Insurance Act; (3) any mutual savings bank as defined in section 3 of the Federal Deposit Insurance Act; (4) any savings bank as defined in section 3 of the Federal Deposit Insurance Act; (5) any insured institution as defined in section 401 of the National Housing Act; and (6) any building and loan association or savings and loan association organized and operated according to the laws of the State in which it is chartered or organized; and, for purposes of this paragraph, the term "State" means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands. (c) Any depository institution which violates this section shall be fined $1,000 for each violation. EXTENSION OF AUTHORITY OF FEDERAL DEPOSIT INSURANCE CORPORATION OVER I N T E R E S T RATES P A I D ON DEPOSITS BY N O N I N S U R E D B A N K S

64 Stat. 893; 83 Stat. 3 72, 3 74.

SEC. 3. Section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828 (g)) is amended by— (1) inserting in the second sentence thereof "or dividends" immediately after "the payment and advertisement of interest"; and (2) striking out in the tenth sentence thereof " (1) ", and by further striking out in such sentence ", and (2) there does not exist under the laws of such State a bank supervisory agency with authority comparable to that conferred by this subsection,

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