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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

FDIC Law, Regulations, Related Acts

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1000 - Federal Deposit Insurance Act


SEC. 25.  DISCLOSURES WITH RESPECT TO CERTAIN FEDERALLY RELATED MORTGAGE LOANS.--

(a)  IDENTITY OF BENEFICIARY INTEREST AS CONDITION FOR A LOAN; REPORT TO CORPORATION.--No insured depository institution, insured branch of a foreign bank, or mutual savings or cooperative bank which is not an insured depository institution, shall make any federally related mortgage loan to any agent, trustee, nominee, or other person acting in a fiduciary capacity without the prior condition that the identity of the person receiving the beneficial interest of such loan shall at all times be revealed to the insured depository institution, insured branch, or bank. At the request of the Corporation, the insured depository institution, insured branch, or bank shall report to the Corporation on the identity of such person and the nature and amount of the loan, discount, or other extension of credit.

[Codified to 12 U.S.C. 1831b(a)]

[Source:  Section 2[25(a)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 11(a) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975, and as amended by section 6(c)(30) of the Act of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 620), effective September 17, 1978; section 201(a)(1) of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187), effective August 9, 1989; section 602(a)(55) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2290), effective September 23, 1994]

(b)  ENFORCEMENT; BANK STATUS.--In addition to other available remedies, this section may be enforced with respect to mutual savings and cooperative banks which are not insured depository institutions in accordance with section 8 of this Act, and for such purpose such mutual savings and cooperative banks shall be held and considered to be State nonmember insured banks and the appropriate Federal agency with respect to such mutual savings and cooperative banks shall be the Federal Deposit Insurance Corporation.

[Codified to 12 U.S.C. 1831b(b)]

[Source:  Section 2[25(b)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 11(a) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975, and as amended by section 201(a)(1) of title II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187), effective August 9, 1989]

NOTES AND DECISIONS

Derivation.  Section 25 derives from section 11(a) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975.

Definition of terms.  The terms used in section 25 of the Federal Deposit Insurance Act are defined in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602), appearing under the "Miscellaneous Statutes and Regulations" tabcard.

Authority of FDIC to exempt classes or types of transactions from the provisions of section 25.   Section 11(c) of the Act of December 22, 1974 (Pub. L. No. 93--533; 88 Stat. 1729), effective June 20, 1975, provides in part as follows:

"(c)  The Federal Deposit Insurance Corporation... may by regulation exempt classes or types of transactions from the provisons [of section 25 of the Federal Deposit Insurance Act] if the Corporation... determines that the purposes of such provisions would not be advanced materially by their application to such transactions."


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