Page:United States Statutes at Large Volume 96 Part 2.djvu/142

 96 STAT. 1504

"Loan."

PUBLIC LAW 97-320—OCT. 15, 1982 controlled by, or is under common control with such association; and "(B) the term 'loan' includes obligations and extensions or advances of credit.". LIQUIDITY INVESTMENTS

SEC. 332. Section 5A(b)(l)(B) of the Federal Home Loan Bank Act (12 U.S.C. 1425a(b)(l)(B)) is amended by striking out "and commercial banks" and inserting in lieu thereof the following: ", institutions which are, or are eligible to become, members thereof, and commercial banks". REGULATORY JURISDICTION

SEC. 333. Section 2(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)) is amended by inserting after "Islands" the following: ", except an institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation or an institution chartered by the Federal Home Loan Bank Board,". BRANCHING

Ante, p. 1503.

26 USC 7701.

Ante, p. 1483.

SEC. 334. Section 5 of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464), as amended by sections 112, 121, and 331, is amended by adding at the end thereof the following: "(r)(1) No association may establish, retain, or operate a branch outside the State in which the association has its home office, unless the association qualifies as a domestic building and loan association under section 7701(a)(19) of the Internal Revenue Code of 1954 or meets the asset composition test imposed by subparagraph (c) of that section on institutions seeking so to qualify. No out-of-State branch so established shall be retained or operated unless the total assets of the association attributable to all branches of the association in that State would qualify the branches as a whole, were they otherwise eligible, for treatment as a domestic building and loan association under said section 7701(a)(19). "(2) The limitations of paragraph (1) shall not apply if— "(A) the branch results from a transaction authorized under section 408(m) of the National Housing Act; "(B) the branch was authorized for the association prior to the enactment of the Depository Institutions Amendments of 1982; "(C) the law of the State in which the branch is or is to be located would permit establishment of the branch were the association an institution of the savings and loan or savings bank type chartered by the State in which its home office is located; or "(D) the branch was operated lawfully as a branch under State law prior to the association's conversion to a Federal charter. "(3) The Board, for good cause shown, may allow associations up to two years to comply with the requirements of this subsection.".

�