§ 1463. — Supervision of savings associations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1463]
TITLE 12--BANKS AND BANKING
CHAPTER 12--SAVINGS ASSOCIATIONS
Sec. 1463. Supervision of savings associations
(a) Federal savings associations
(1) In general
The Director shall provide for the examination, safe and sound
operation, and regulation of savings associations.
(2) Regulations
The Director may issue such regulations as the Director
determines to be appropriate to carry out the responsibilities of
the Director or the Office.
(3) Safe and sound housing credit to be encouraged
The Director shall exercise all powers granted to the Director
under this chapter so as to encourage savings associations to
provide credit for housing safely and soundly.
(b) Accounting and disclosure
(1) In general
The Director shall, by regulation, prescribe uniform accounting
and disclosure standards for savings associations, to be used in
determining savings associations' compliance with all applicable
regulations.
(2) Specific requirements for accounting standards
Subject to section 1464(t) of this title, the uniform accounting
standards prescribed under paragraph (1) shall--
(A) incorporate generally accepted accounting principles to
the same degree that such principles are used to determine
compliance with regulations prescribed by the Federal banking
agencies;
(B) allow for no deviation from full compliance with such
standards as are in effect after December 31, 1993; and
(C) prior to January 1, 1994, require full compliance by
savings associations with accounting standards in effect at any
time before such date not later than provided under the schedule
in section 563.23-3 of title 12, Code of Federal Regulations (as
in effect on May 1, 1989).
(3) Authority to prescribe more stringent accounting
standards
The Director may at any time prescribe accounting standards more
stringent than required under paragraph (2) if the Director
determines that the more stringent standards are necessary to ensure
the safe and sound operation of savings associations.
(c) Stringency of standards
All regulations and policies of the Director governing the safe and
sound operation of savings associations, including regulations and
policies governing asset classification and appraisals, shall be no less
stringent than those established by the Comptroller of the Currency for
national banks.
(d) Investment of certain funds in accounts of savings associations
The savings accounts and share accounts of savings associations
insured by the Corporation shall be lawful investments and may be
accepted as security for all public funds of the United States,
fiduciary and trust funds under the authority or control of the United
States or any officer thereof, and for the funds of all corporations
organized under the laws of the United States (subject to any regulatory
authority otherwise applicable), regardless of any limitation of law
upon the investment of any such funds or upon the acceptance of security
for the investment or deposit of any of such funds.
(e) Participation by savings associations in lotteries and related
activities
(1) Participation prohibited
No savings association may--
(A) deal in lottery tickets;
(B) deal in bets used as a means or substitute for
participation in a lottery;
(C) announce, advertise, or publicize the existence of any
lottery; or
(D) announce, advertise, or publicize the existence or
identity of any participant or winner, as such, in a lottery.
(2) Use of facilities prohibited
No savings association may permit--
(A) the use of any part of any of its own offices by any
person for any purpose forbidden to the institution under
paragraph (1); or
(B) direct access by the public from any of its own offices
to any premises used by any person for any purpose forbidden to
the institution under paragraph (1).
(3) Definitions
For purposes of this subsection--
(A) Deal in
The term ``deal in'' includes making, taking, buying,
selling, redeeming, or collecting.
(B) Lottery
The term ``lottery'' includes any arrangement under which--
(i) 3 or more persons (hereafter in this subparagraph
referred to as the ``participants'') advance money or credit
to another in exchange for the possibility or expectation
that 1 or more but not all of the participants (hereafter in
this paragraph referred to as the ``winners'') will receive
by reason of those participants' advances more than the
amounts those participants have advanced; and
(ii) the identity of the winners is determined by any
means which includes--
(I) a random selection;
(II) a game, race, or contest; or
(III) any record or tabulation of the result of 1 or
more events in which any participant has no interest
except for the bearing that event has on the possibility
that the participant may become a winner.
(C) Lottery ticket
The term ``lottery ticket'' includes any right, privilege,
or possibility (and any ticket, receipt, record, or other
evidence of any such right, privilege, or possibility) of
becoming a winner in a lottery.
(4) Exception for State lotteries
Paragraphs (1) and (2) shall not apply with respect to any
savings association accepting funds from, or performing any lawful
services for, any State operating a lottery, or any officer or
employee of such a State who is charged with administering the
lottery.
(5) Regulations
The Director shall prescribe such regulations as may be
necessary to provide for enforcement of this subsection and to
prevent any evasion of any provision of this subsection.
(f) Federally related mortgage loan disclosures
A savings association may not make a federally related mortgage loan
to an agent, trustee, nominee, or other person acting in a fiduciary
capacity without requiring that the identity of the person receiving the
beneficial interest of such loan shall at all times be revealed to the
savings association. At the request of the Director, the savings
association shall report to the Director the identity of such person and
the nature and amount of the loan.
(g) Preemption of State usury laws
(1) Notwithstanding any State law, a savings association may charge
interest on any extension of credit at a rate of not more than 1 percent
in excess of the discount rate on 90-day commercial paper in effect at
the Federal Reserve bank in the Federal Reserve district in which such
savings association is located or at the rate allowed by the laws of the
State in which such savings association is located, whichever is
greater.
(2) If the rate prescribed in paragraph (1) exceeds the rate such
savings association would be permitted to charge in the absence of this
subsection, the receiving or charging a greater rate of interest than
that prescribed by paragraph (1), when knowingly done, shall be deemed a
forfeiture of the entire interest which the extension of credit carries
with it, or which has been agreed to be paid thereon. If such greater
rate of interest has been paid, the person who paid it may recover, in a
civil action commenced in a court of appropriate jurisdiction not later
than 2 years after the date of such payment, an amount equal to twice
the amount of the interest paid from the savings association taking or
receiving such interest.
(h) Form and maturity of securities
No savings association shall--
(1) issue securities which guarantee a definite maturity except
with the specific approval of the Director, or
(2) issue any securities the form of which has not been approved
by the Director.
(June 13, 1933, ch. 64, Sec. 4, as added Pub. L. 101-73, title III,
Sec. 301, Aug. 9, 1989, 103 Stat. 280.)
Prior Provisions
A prior section 1463, acts June 13, 1933, ch. 64, Sec. 4, 48 Stat.
129; Apr. 27, 1934, ch. 168, Secs. 1(a), 2-4, 13, 48 Stat. 643-645, 647;
June 27, 1934, ch. 847, title V, Secs. 506, 508(b), 48 Stat. 1263, 1264;
May 28, 1935, ch. 150, Secs. 10-17(a), 49 Stat. 296, 297; Aug. 11, 1939,
ch. 684, 53 Stat. 1403; Oct. 24, 1942, ch. 621, 56 Stat. 986; June 30,
1947, ch. 166, title II, Sec. 206(f), 61 Stat. 206, related to creation
of Home Owners' Loan Corporation, for appointment and compensation of
its board of directors, for appointment and compensation of its
employees, and for other powers, prior to repeal by Pub. L. 89-554,
Sec. 8(a), Sept. 6, 1966, 80 Stat. 648.
A prior section 1463a, act Apr. 27, 1934, ch. 168, Sec. 1(b), 48
Stat. 644, provided that amendments made to subsec. (c) of former
section 1463 of this title, except with respect to refunding, by act
Apr. 27, 1934, should not apply to any bonds prior to Apr. 27, 1934,
issued under subsec. (c), or to any bonds thereafter issued in
compliance with commitments of the Corporation outstanding on Apr. 27,
1934.
A prior section 1463b, act Apr. 27, 1934, ch. 168, Sec. 9, 48 Stat.
646, related to purchase of obligations of, and loans to, Federal Home
Loan Banks, prior to repeal by act May 28, 1935, ch. 150, Sec. 17(b), 49
Stat. 297.
Preserving Minority Ownership of Minority Financial Institutions
Section 308 of Pub. L. 101-73 provided that:
``(a) Consultation on Methods.--The Secretary of the Treasury shall
consult with the Director of the Office of Thrift Supervision and the
Chairperson of the Board of Directors of the Federal Deposit Insurance
Corporation on methods for best achieving the following goals:
``(1) Preserving the present number of minority depository
institutions.
``(2) Preserving their minority character in cases involving
mergers or acquisition of a minority depository institution by using
general preference guidelines in the following order:
``(A) Same type of minority depository institution in the
same city.
``(B) Same type of minority depository institution in the
same State.
``(C) Same type of minority depository institution
nationwide.
``(D) Any type of minority depository institution in the
same city.
``(E) Any type of minority depository institution in the
same State.
``(F) Any type of minority depository institution
nationwide.
``(G) Any other bidders.
``(3) Providing technical assistance to prevent insolvency of
institutions not now insolvent.
``(4) Promoting and encouraging creation of new minority
depository institutions.
``(5) Providing for training, technical assistance, and
educational programs.
``(b) Definitions.--For purposes of this section--
``(1) Minority financial institution.--The term `minority
depository institution' means any depository institution that--
``(A) if a privately owned institution, 51 percent is owned
by one or more socially and economically disadvantaged
individuals;
``(B) if publicly owned, 51 percent of the stock is owned by
one or more socially and economically disadvantaged individuals;
and
``(C) in the case of a mutual institution where the majority
of the Board of Directors, account holders, and the community
which it services is predominantly minority.
``(2) Minority.--The term `minority' means any black American,
Native American, Hispanic American, or Asian American.''
Abolition of Home Owners' Loan Corporation
Act June 30, 1953, ch. 170, Sec. 21, 67 Stat. 126, provided for
dissolution and abolition of Home Owners' Loan Corporation established
by former section 1463 of this title.
