H.R.1680 - Insured Institution Improvements Act of 198599th Congress (1985-1986)
|Sponsor:||Rep. St Germain, Fernand J. [D-RI-1] (Introduced 03/21/1985)(by request)|
|Committees:||House - Banking, Finance, and Urban Affairs|
|Latest Action:||House - 10/17/1985 Subcommittee Hearings Held. (All Actions)|
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Summary: H.R.1680 — 99th Congress (1985-1986)All Information (Except Text)
Introduced in House (03/21/1985)
Insured Institution Improvements Act of 1985 - Title I: Insurance of Accounts - Savings Insurance Protection Act of 1985 - Amends the National Housing Act to authorize the Federal Savings and Loan Insurance Corporation (FSLIC) to establish classes of accounts and to determine whether accounts in any such class constitute insured accounts.
Authorizes the FSLIC to assess an additional premium against institutions which engage in activities not authorized for Federal associations or which exceed certain percentage-of-assets limitations.
Title II: Enforcement - Savings Institutions Supervisory Act of 1985 - Amends the National Housing Act to extend the authority of the FSLIC concerning cease and desist proceedings to cover institution-related parties that it determines are: (1) engaging in an unsafe or unsound practice in conducting the business of an insured institution; or (2) violating an FSLIC regulation or agreement. Declares that the affirmative actions the FSLIC may order an institution or related party to take to correct the condition resulting from such practice or violation may include restitution, rescission, the disposal of loans or assets, or guarantees against loss. Extends the authority of the FSLIC to any subsidiary corporation wholly or partly owned by an insured institution.
Requires the FSLIC to show some dissipation of assets or some weakening of an insured institution (currently a substantial dissipation of assets or a serious weakening) in order to constitute grounds for issuing a temporary cease and desist order. Provides the FSLIC new authority to issue a temporary cease and desist order requiring the cessation of institution activities if the institution's books and records are so incomplete or inaccurate that the FSLIC is unable to determine the institution's financial condition.
Revises provisions dealing with the suspension or removal of institution directors and officers and a prohibition from participation in institution affairs by other institution-related parties.
Amends the FSLIC's subpoena power to include inquiries into the affairs, assets, or ownership of insured institutions, affiliates thereof, or any entity that was such an institution or affiliate at the time of the transaction or conduct being examined. Sets penalties for failure to comply with FSLIC subpoenas. Prohibits any person who has been suspended from, or prohibited from participation in, the affairs of an FSLIC-insured institution from participating in the affairs of any federally-insured institution without the approval of the appropriate Federal regulatory authority. Prohibits any person who has been convicted of a criminal offense involving dishonesty or breach of trust from serving as an institution-related party without the prior written consent of the FSLIC. Authorizes the FSLIC to apply to U.S. district courts for injunctive relief when administrative remedies are insufficient to deal with violations of the National Housing Act.
Amends the Federal Home Owners' Loan Act to make the same changes previously prescribed under this title with respect to Federal savings and loan associations and the Federal Home Loan Bank Board (FHLBB).
Title III: Payment of Insurance - Insurance Amendments of 1985 - Amends the National Housing Act to state that the FSLIC, where it pays insurance on accounts of a defaulted institution, shall be subrogated to all rights of the insured member to the extent of such payment.
Permits the FSLIC to withhold payment of insurance to the extent of any liability of an insured depositor to the institution or the receiver (other than a liability as a borrower under a note that has not defaulted).
Title IV: Receivership Powers, Automatic Stay, and Priorities - Receivership Improvement Act of 1985 - Amends the National Housing Act to provide that the FSLIC, in connection with its activities as receiver for a defaulted institution, shall not be required to furnish bond, but may employ necessary personnel and pay related expenses from the receivership funds. Sets forth requirements for any valid agreement diminishing the right, title, or interest of the FSLIC as receiver in any asset acquired in such capacity. Declares that any property in which an insured institution in receivership has a legal or equitable interest is property of the receivership estate. Provides, upon the appointment of a receiver by the FHLBB for an insured institution under such Act or the Home Owners' Loan Act of 1933, for an automatic stay on claims against the receivership estate. Excludes from such automatic stay certain security interests of Federal Home Loan Banks. Sets forth the rights and powers of an appointed receiver (which shall include the rights of a lien creditor, bona fide purchaser, or equity receiver) to avoid transfers of property or obligations of the insured institution. Specifies the payment priority of unsecured claims against the receivership estate.
Title V: Federal Savings and Loan Insurance Corporation - Federal Savings and Loan Insurance Corporation Improvements Act of 1985 - Redefines the FSLIC (currently a wholly owned Government corporation) as a mixed-ownership Government corporation.
Amends the National Housing Act to direct the FSLIC to determine its expenditures without regard to restrictions of any other law concerning personnel or apportionment of expenditures. Authorizes the FSLIC to issue regulations governing risk-taking by insured institutions. Declares that FSLIC expenditures to carry out such Act shall not be deemed to be appropriations. Provides that insured institution funds paid to, or on deposit with, the FSLIC shall not be subject to attachment, garnishment, or other legal process by creditors of such institution. Provides that any action to which the FSLIC is appointed by a State authority as receiver of a State-chartered institution shall be a State matter.
Title VI: Holding Companies - Holding Company Amendments of 1985 - Amends the National Housing Act to prohibit savings and loan holding companies and insured institutions from directly or indirectly engaging in the activities of an underwriter or market-maker in: (1) equity securities; or (2) debt securities other than those secured by interests in real estate or that are eligible to be underwritten by national banks.
Extends prohibitions on transactions between a savings and loan holding company and subsidiary insured institutions to transactions between subsidiaries of such subsidiary insured institutions and such holding company. Provides for transaction exceptions with respect to service corporation subsidiaries of insured institutions.
Prohibits the FSLIC from approving: (1) a transaction which would result in a savings and loan holding company that is itself uninsured or that has control of an uninsured institution, unless certain conditions are met; and (2) an acquisition of an insured institution by a company engaged in the activities of an underwriter or market-maker in equity or debt securities other than those representing interests in real estate or that are eligible to be underwritten by national banks.
Authorizes the FSLIC to bring actions in U.S. district court to require the rescission of transactions in violation of the National Housing Act or the restitution to persons suffering damages as a result of such violations.
Excludes from the requirement for approval by a State official any emergency acquisition of a federally-chartered insured institution.
Title VII: Qualified Thrift Lenders - Qualified Thrift Lender Act of 1985 - Amends the National Housing Act to condition eligibility for FSLIC insurance of non-federal associations and Federal savings banks insured by the Federal Deposit Insurance Corporation (FDIC) upon meeting the definition of a qualified thrift lender. Defines a qualified thrift lender as an institution that maintains at least 60 percent of its assets in certain liquid assets and specified housing and housing-related investments. Provides a 20-year period during which a State-chartered mutual savings bank maintaining at least 50 percent of its assets in such categories (with specified increases every five years) shall qualify as a qualified thrift institution. Prohibits any institution which loses its status as a qualified thrift lender from regaining such status for five years.
Amends the Federal Home Loan Bank Act to limit the eligibility for Federal Home Loan Bank advances by members with deposits insured by the FSLIC or the FDIC to qualified thrift lenders. Increases from three to five percent of assets the maximum service corporation investment authority of qualified thrift institutions. Requires a Federal association to be a qualified thrift lender in order to establish and operate a branch outside of its home State. Requires that a bank or bank holding company making an out-of-State acquisition of an insured institution conform to the branching limitations applicable to banks in the State in which the acquired institution is located if the institution is not a qualified thrift lender. Limits the business activities of a savings and loan holding company whose subsidiary insured institution fails to qualify as a qualified thrift lender.
Title VIII: Miscellaneous - Amends the Federal Home Loan Bank Act to authorize the Federal Home Loan Bank Board and the FSLIC to accept payment from Federal or non-Federal entities for expenses incurred by officers and employees in attending meetings concerning Board or FSLIC activities or functions.
Permits Federal associations to accept deposits without limitation. (Currently demand deposits are accepted only from persons with a business relationship with an association.)
Allows former employers of participants in the Board's professional accounting fellows programs to pay such participants' actual expenses for relocating to Washington, D.C.
Amends the Garn-St Germain Depository Institutions Act of 1982 to extend the Deposit Insurance Flexibility Act and the Net Worth Certificate Act for three years.
Amends the National Housing Act to set forth provisions concerning the transfer of insurance coverage between the FSLIC and FDIC insurance funds.
Amends the Federal Deposit Insurance Act to prescribe notification requirements for mergers involving an insured Federal savings bank or an FSLIC-insured institution.
Amends the Federal Home Loan Bank Act to authorize the Board to provide for staggered terms for Federal home loan bank directors.
Amends the National Housing Act to authorize the FSLIC to define "control" of an insured institution.