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8000 - Miscellaneous Statutes and Regulations


DEPOSITORY INSTITUTIONS DEREGULATION AND MONETARY
CONTROL ACT OF 1980

An Act

To facilitate the implementation of monetary policy, to provide for the gradual elimination of all limitations on the rates of interest which are payable on deposits and accounts, and to authorize interest-bearing transaction accounts, and for other purposes.

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

SHORT TITLE

SECTION 1.  This Act may be cited as the "Depository Institutions Deregulation and Monetary Control Act of 1980".

[Codified to 12 U.S.C. 226 note]

[Source:  Section 1 of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 132), effective March 31, 1980]

TITLE I—MONETARY CONTROL ACT OF 1980

SHORT TITLE

SEC. 101.  This title may be cited as the "Monetary Control Act of 1980".

[Codified to 12 U.S.C. 226 note]

[Source:  Section 101 of title I of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 132), effective October 1, 1980]

EDITOR'S NOTE

Sections 102, 103 and 104 of this act amend sections 11(a) and 19(b) and (c) of the Federal Reserve Act (12 U.S.C. 248 and 461). Section 107 adds section 11A to the Federal Reserve Act (12 U.S.C. 248(a)).

EFFECTIVE DATES

SEC. 108.  This title shall take effect on the first day of the sixth month which begins after the date of the enactment of this title, except that the amendments regarding sections 19(b)(7) and 19(b)(8)(D) of the Federal Reserve Act shall take effect on the date of enactment of this title.

[Codified to 12 U.S.C. 248 note]

[Source:  Section 108 of title I of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 141), effective March 31, 1980]

TITLE II—DEPOSITORY INSTITUTIONS DEREGULATION

[Expired March 31, 1986]

TITLE III—CONSUMER CHECKING ACCOUNT EQUITY ACT OF 1980

SHORT TITLE

SEC. 301.  This title may be cited as the "Consumer Checking Account Equity Act of 1980".

[Codified to 12 U.S.C. 226 note]


[Source:  Section 301 of title III of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 145), effective March 31, 1980 through March 31, 1986]

EDITOR'S NOTE

Section 302(b) of this act amends section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)).

Section 303 of this act amends section 2(a) of Public Law 93-100 (12 U.S.C. 1832(a)) (NOW Accounts).

EFFECTIVE DATES

SEC. 306.  The amendments made by sections 302, 304, and 305 of this title shall take effect at the close of March 31, 1980, and the amendments made by section 303 of this title shall take effect on December 31, 1980.

[Codified to 12 U.S.C. 371a note]

[Source:  Section 306 of title III of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 147), effective March 31, 1980]

REPEAL OF EXISTING LAW

SEC. 307.  (i) [Repealed]

[Codified to 12 U.S.C. 371a]

[Source:  Section 307 of title III of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 147), effective March 31, 1980; section 627(a)(1) of title VI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1640), effective July 21, 2011]

EDITOR'S NOTE

Section 308(a)(1) and (d) of this act amends sections 3(m), 7(d), 7(i), and 11(a)(1) and (i) of the Federal Deposit Insurance Act (12 U.S.C. 1813(m), 1817(d) and (i), 1821(a) and (i), respectively).

TITLE IV—POWERS OF THRIFT INSTITUTIONS AND MISCELLANEOUS PROVISIONS

STUDY OF MORTGAGE PORTFOLIOS

SEC. 406.  (a)(1)  The President shall convene an interagency task force consisting of the Secretary of the Treasury, the Secretary of Housing and Urban Development, the Federal Home Loan Bank Board, the Board of Governors of the Federal Reserve System, the Board of Directors of the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the National Credit Union Administration Board. The task force shall conduct a study and make recommendations regarding--

(A)  the options available to provide balance to the asset-liability management problems inherent in the thrift portfolio structure;

(B)  the options available to increase the ability of thrift institutions to pay market rates of interest in periods of rapid inflation and high interest rates; and

(C)  the options available through the Federal Home Loan Bank system and other Federal agencies to assist thrifts in times of economic difficulties.

(2)  In carrying out such study, the task force shall solicit the views of, and invite participation by, consumer and public interest groups, business, labor, and State regulators of depository institutions.

(b)  Not later than three months after the date of enactment of this Act, the task force shall transmit to the President and the Congress its findings and recommendations for such action as it deems appropriate.

[Codified to 12 U.S.C. 1425a note]

[Source:  Section 406 of title IV of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 159), effective March 31, 1980]

TITLE V—STATE USURY LAWS

PART A—MORTGAGE USURY LAWS

MORTGAGES

SEC. 501.  (a)(1)  The provisions of the constitution or the laws of any State expressly limiting the rate or amount of interest, discount points, finance charges, or other charges which may be charged, taken, received, or reserved shall not apply to any loan, mortgage, credit sale, or advance which is--

(A)  secured by a first lien on residential real property, by a first lien on all stock allocated to a dwelling unit in a residential cooperative housing corporation or by a first lien on a residential manufactured home;

(B)  made after March 31, 1980; and

(C)  described in section 527(b) of the National Housing Act (12 U.S.C. 1735f-5(b)), except that for the purpose of this section--

(i)  the limitation described in section 527(b)(1) of such Act that the property must be designed principally for the occupancy of from one to four families shall not apply;

(ii)  the requirement contained in section 527(b)(1) of such Act that the loan be secured by residential real property shall not apply to a loan secured by stock in a residential cooperative housing corporation or to a loan or credit sale secured by a first lien on a residential manufactured home;

(iii)  the term "federally related mortgage loan" in section 527(b) of such Act shall include a credit sale which is secured by a first lien on a residential manufactured home and which otherwise meets the definitional requirements of section 527(b) of such Act, as those requirements are modified by this section;

(iv)  the term "residential loans" in section 527(b)(2)(D) of such Act shall also include loans or credit sales secured by a first lien on a residential manufactured home, and any individual who finances the sale or exchange of residential real property or a residential manufactured home which such individual owns and which such individual occupies or has occupied as his principal residence;

(v)  the requirement contained in section 527(b)(2)(D) of such Act that a creditor make or invest in loans aggregating more than $1,000,000 per year shall not apply to a creditor selling residential manufactured homes financed by loans or credit sales secured by first liens on residential manufactured homes if the creditor has an arrangement to sell such loans or credit sales in whole or in part, or if such loans or credit sales are sold in whole or in part to a lender, institution, or creditor described in section 527(b) of such Act or in this section or a creditor, as defined in section 103(f) of the Truth in Lending Act, as such section was in effect on the day preceding the date of enactment of this title, if such creditor makes or invests in residential real estate loans or loans or credit sales secured by first liens on residential manufactured homes aggregating more than $1,000,000 per year; and

(vi)  the term "lender" in section 527(b)(2)(A) of such Act shall also be deemed to include any lender approved by the Secretary of Housing and Urban Development for participation in any mortgage insurance program under the National Housing Act.

(2)(A)  The provisions of the constitution or law of any State expressly limiting the rate or amount of interest which may be charged, taken, received, or reserved shall not apply to any deposit or account held by, or other obligation of a depository institution. For purposes of this paragraph, the term "depository institution" means--

(i)  any insured bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(ii)  any mutual savings bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(iii)  any savings bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(iv)  any insured credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752);

(v)  any member as defined in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422); and

(vi)  any insured institution as defined in section 408 of the National Housing Act (12 U.S.C. 1730a).

(B)  This paragraph shall not apply to any such deposit, account, or obligation which is payable only at an office of an insured bank, as defined in section 3 of the Federal Deposit Insurance Act, located in the Commonwealth of Puerto Rico.

(b)(1)  Except as provided in paragaphs (2) and (3), the provisions of subsection (a)(1) shall apply to any loan, mortgage, credit sale, or advance made in any State on or after April 1, 1980.

(2)  Except as provided in paragraph (3), the provisions of subsection (a)(1) shall not apply to any loan, mortgage, credit sale, or advance made in any State after the date (on or after April 1, 1980, and before April 1, 1983) on which such State adopts a law or certifies that the voters of such State have voted in favor of any provision, constitutional or otherwise, which states explicitly and by its terms that such State does not want the provisions of subsection (a)(1) to apply with respect to loans, mortgages, credit sales, and advances made in such State.

(3)  In any case in which a State takes an action described in paragraph (2), the provisions of subsection (a)(1) shall continue to apply to--

(A)  any loan, mortgage, credit sale, or advance which is made after the date such action was taken pursuant to a commitment therefor which was entered during the period beginning on April 1, 1980, and ending on the date on which such State takes such action; and

(B)  any loan, mortgage, or advance which is a rollover of a loan, mortgage, or advance, as described in regulations of the Federal Home Loan Bank Board, which was made or committed to be made during the period beginning on April 1, 1980, and ending on the date on which such State takes any action described in paragaph (2).

(4)  At any time after the date of enactment of this Act, any State may adopt a provision of law placing limitations on discount points or such other charges on any loan, mortgage, credit sale, or advance described in subsection (a)(1).

(c)  The provisions of subsection (a)(1) shall not apply to a loan, mortgage, credit sale, or advance which is secured by a first lien on a residential manufactured home unless the terms and conditions relating to such loan, mortgage, credit sale, or advance comply with consumer protection provisions specified in regulations prescribed by the Federal Home Loan Bank Board. Such regulations shall--

(1)  include consumer protection provisions with respect to balloon payments, prepayment penalties, late charges, and deferral fees;

(2)  require a 30-day notice prior to instituting any action leading to repossession or foreclosure (except in the case of abandonment or other extreme circumstances);

(3)  require that upon prepayment in full, the debtor shall be entitled to a refund of the unearned portion of the precomputed finance charge in an amount not less than the amount which would be calculated by the actuarial method, except that the debtor shall not be entitled to a refund which is less than $1; and

(4)  include such other provisions as the Federal Home Loan Bank Board may prescribe after a finding that additional protections are required.

(d)  The provisions of subsection (c) shall not apply to a loan, mortgage, credit sale, or advance secured by a first lien on a residential manufactured home until regulations required to be issued pursuant to paragraphs (1), (2), and (3) of subsection (c) take effect, except that the provisions of subsection (c) shall apply in the case of such a loan, mortgage, credit sale, or advance made prior to the date on which such regulations take effect if the loan, mortgage, credit sale, or advance includes a precomputed finance charge and does not provide that, upon repayment in full, the refund of the unearned portion of the precomputed finance charge is in an amount not less than the amount which would be calculated by the actuarial method, except that the debtor shall not be entitled to a refund which is less than $1. The Federal Home Loan Bank Board shall issue regulations pursuant to the provisions of paragraphs (1), (2), and (3) of subsection (c) that shall take effect prospectively not less than 30 days after publication in the Federal Register and not later than 120 days from the date of enactment of this Act.

(e)  For the purpose of this section--

(1)  a "prepayment" occurs upon--

(A)  the refinancing or consolidation of the indebtedness;

(B)  the actual prepayment of the indebtedness by the consumer whether voluntarily or following acceleration of the payment obligation by the creditor; or

(C)  the entry of a judgment for the indebtedness in favor of the creditor;

(2)  the term "actuarial method" means the method of allocating payments made on a debt between the outstanding balance of the obligation and the precomputed finance charge pursuant to which a payment is applied first to the accrued precomputed finance charge and any remainder is subtracted from, or any deficiency is added to, the outstanding balance of the obligation;

(3)  the term "precomputed finance charge" means interest or a time price differential within the meaning of sections 106(a)(1) and (2) of the Truth in Lending Act (15 U.S.C. 1605(a)(1) and (2)) as computed by an add-on or discount method; and

(4)  the term "residential manufactured home" means a manufactured home as defined in section 603(6) of the National Mobile Home Construction and Safety Standards Act of 1974 which is used as a residence.

(f)  The Federal Home Loan Bank Board is authorized to issue rules and regulations and to publish interpretations governing the implementation of this section.

(g)  This section takes effect on April 1, 1980.

[Codified to 12 U.S.C. 1735f-7 note]

[Source:  Section 501 of title V of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 161-163), effective April 1, 1980, as amended by sections 308 and 324 of title III of the Act of October 8, 1980 (Pub. L. No. 96-399; 94 Stat. 1641 and 1648), effective October 8, 1980; section 384 of title III of the Act of August 13, 1981 (Pub. L. No. 97-35; 95 Stat. 432), effective August 13, 1981]


PART B—BUSINESS AND AGRICULTURAL LOANS

BUSINESS AND AGRICULTURAL LOANS

SEC. 511.  (a)  If the applicable rate prescribed in this section exceeds the rate a person would be permitted to charge in the absence of this section, such person may in the case of a business or agricultural loan in the amount of $1,000 or more, notwithstanding any State constitution or statute which is hereby preempted for the purposes of this section, take, receive, reserve, and charge on any such loan, interest at a rate of not more than 5 per centum in excess of the discount rate, including any surcharge thereon, on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where the person is located.

(b)  For the purpose of this part--

(1)  the term "loan" includes all secured and unsecured loans, credit sales, forbearances, advances, renewals or other extensions of credit made by or to any person or organization for business or agricultural purposes;

(2)  the term "interest" includes any compensation, however denominated, for a loan;

(3)  the term "organization" means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, association, or other entity; and

(4)  the term "person" means a natural person or organization.

(c)  If the rate prescribed in subsection (a) exceeds the rate such person would be permitted to charge in the absence of this section, and such State imposed rate is thereby preempted by the rate described in subsection (a), the taking, receiving, reserving, or charging a greater rate than is allowed by subsection (a), when knowingly done, shall be deemed a forfeiture of the entire interest which the loan 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 two years after the date of such payment, an amount equal to twice the amount of interest paid from the person taking, receiving, reserving, or charging such interest.

[Codified to 12 U.S.C. 86a]

[Source:  Section 511 of title V of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 164), effective as detailed in section 512 below; as amended by section 324 of title III of the Act of October 8, 1980 (Pub. L. No. 96-399; 94 Stat. 1648), effective October 8, 1980]

EFFECTIVE DATE OF PART B

SEC. 512.  (a)  The provisions of this part shall apply only with respect to business or agricultural loans in amounts of $1,000 or more made in any State during the period beginning on April 1, 1980, and ending on the earlier of--

(1)  April 1, 1983; or

(2)  the date, on or after April 1, 1980, on which such State adopts a law or certifies that the voters of such State have voted in favor of any provision, constitutional or otherwise, which states explicitly and by its terms that such State does not want the provisions of this part to apply with respect to loans made in such State,

except that such provisions shall apply to any loan made on or after such earlier date pursuant to a commitment to make such loan which was entered into on or after April 1, 1980, and prior to such earlier date.

(b)  A loan shall be deemed to be made during the period described in subsection (a) if such loan--

(1)(A)  is funded or made in whole or in part during such period, regardless of whether pursuant to a commitment or other agreement therefor made prior to April 1, 1980;

(B)  was made prior to or on April 1, 1980, and bears or provides for interest during such period on the outstanding amount thereof at a variable or fluctuating rate; or

(C)  is a renewal, extension, or other modification during such period of any loan, if such renewal, extension, or other modification is made with the written consent of any person obligated to repay such loan; and

(2)(A)  is an original principal amount of $25,000 or more ($1,000 or more on or after the date of enactment of the Housing and Community Development Act of 1980); or

(B)  is part of a series of advances if the aggregate of all sums advanced or agreed or contemplated to be advanced pursuant to a commitment or other agreement therefor is $25,000 or more ($1,000 or more on or after the date of enactment of the Housing and Community Development Act of 1980).

[Codified to 12 U.S.C. 86a note]

[Source:  Section 512 of title V of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 164), effective March 31, 1980; as amended by section 324 of title III of the Act of October 8, 1980 (Pub. L. No. 96-399; 94 Stat. 1649), effective April 1, 1980]

EDITOR'S NOTE

Section 521 of this act adds section 27 to the Federal Deposit Insurance Act (12 U.S.C. 1831d).

EFFECTIVE DATE

SEC. 525.  The amendments made by sections 521 through 523 of this title shall apply only with respect to loans made in any State during the period beginning on April 1, 1980, and ending on the date, on or after April 1, 1980, on which such State adopts a law or certifies that the voters of such State have voted in favor of any provision, constitutional or otherwise, which states explicitly and by its terms that such State does not want the amendments made by such sections to apply with respect to loans made in such State, except that such amendments shall apply to a loan made on or after the date such law is adopted or such certification is made if such loan is made pursuant to a commitment to make such loan which was entered into on or after April 1, 1980, and prior to the date on which such law is adopted or such certification is made.

[Codified to 12 U.S.C. 1730g note]

[Source:  Section 525 of title V of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 167), effective March 31, 1980]

TITLE VI—TRUTH IN LENDING SIMPLIFICATION

SHORT TITLE

SEC. 601.  This title may be cited as the "Truth in Lending Simplification and Reform Act".

[Codified to 15 U.S.C. 1601 note]

[Source:  Section 601 of title VI of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 168-186), effective March 31, 1980]

EDITOR'S NOTE

Sections 602 through 624 of this act amend the Truth in Lending Act (15 U.S.C. 1602 et sec.).

EFFECTIVE DATE

SEC. 625.  (a)  Except as provided in section 608(b), the amendments made by this title shall take effect upon the expiration of two years and six months after the date of enactment of this title.

(b)  All regulations, forms, and clauses required to be prescribed under the amendments made by this title shall be promulgated at least one year prior to such effective date.

(c)  Notwithstanding subsections (a) and (b), any creditor may comply with the amendments made by this title, in accordance with the regulations, forms, and clauses prescribed by the Board, prior to such effective date. Any creditor who elects to comply with such amendments and any assignee of such a creditor shall be subject to the provisions of sections 130 and 131 of the Truth in Lending Act, as amended by sections 615 and 616, respectively, of this title.

[Codified to 15 U.S.C. 1602 note]

[Source:  Section 625 of title VI of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 185-186), effective March 31, 1980, as amended by section 301 of title III of the Act of July 27, 1981 (Pub. L. No. 97-25; 95 Stat. 145), effective July 27, 1981; and section 301 of title III of the Act of December 26, 1981 (Pub. L. No. 97-110; 95 Stat. 1515), effective December 26, 1981]

TITLE VII—AMENDMENTS TO THE NATIONAL BANKING LAWS

PART A—NATIONAL BANKING LAWS

EDITOR'S NOTE

Sections 712(b)-(c) and 713 amend section 3(c) and (d) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(c) and (d)).

TITLE VIII—REGULATORY SIMPLIFICATION

[Expired March 31, 1985]

TITLE IX—FOREIGN CONTROL OF UNITED STATES FINANCIAL INSTITUTIONS

DEFINITIONS

SEC. 901.  For purposes of this title--

(1)  the term "domestic financial institution" means any bank, mutual savings bank, or savings and loan association organized under the laws of any State or of the United States;

(2)  the term "foreign person" means any foreign organization or any individual resident in a foreign country or any organization or individual owned or controlled by such an organization or individual; and

(3)  the term "takeover" means any acquisition of the stock or assets of any domestic financial institution if, after such acquisition, the amount of stock or assets held is 5 per centum or more of the institution's stock or assets.

[Codified to 12 U.S.C. 3101 note]

[Source:  Section 901 of title IX of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 192), effective March 31, 1980]

MORATORIUM

SEC. 902.  The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board may not approve any application relating to the takeover of any domestic financial institution by a foreign person until July 1, 1980, unless--

(1)  such takeover is necessary to prevent the bankruptcy or insolvency of the domestic financial institution involved;

(2)  the application was initially submitted for filing on or before March 5, 1980;

(3)  the domestic financial institution has deposits of less than $100,000,000;

(4)  the application relates to a takeover of shares or assets pursuant to a foreign person's intrafirm reorganization of its interests in a domestic financial institution, including specifically any application to establish a bank holding company pursuant to such reorganization;

(5)  the application relates to a takeover of the assets or shares of a domestic financial institution if such assets or shares are owned or controlled by a foreign person; or

(6)  the application relates to the takeover of a domestic financial institution which is a subsidiary of a bank holding company under an order to divest by December 31, 1980.

[Codified to 12 U.S.C. 3101 note]

[Source:  Section 902 of title IX of the Act of March 31, 1980 (Pub. L. No. 96-221; 94 Stat. 193), effective March 31, 1980]


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