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4000 - Advisory Opinions

Savings Association That Converts to Bank Charter and Retains Its SAIF Membership Pursuant to Sasser Amendment Is Subject to Insured Bank Regulations


April 21, 1993

Sandra Comenetz, Senior Attorney

This responds to your March 26, 1993 letter in which you inquire whether your institution must comply with insured bank or insured savings association regulations. You state that your institution converted from a savings association to a Pennsylvania mutual savings bank.

The type of charter under which an institution is established or to which it converts is what determines which regulations (i.e., insured bank or insured savings association) an institution should follow. Thus, despite the fact that savings associations that convert to a bank charter pursuant to 12 U.S.C. 1815(d)(2)(G) (the "Sasser Amendment") remain SAIF members, such institutions are subject to insured bank regulations.

Concerning the use of insurance fund logos, the Federal Deposit Insurance Act ("FDI Act") provides that each "insured bank" shall display either the bank (FDIC) sign or the savings association (American Eagle) sign. 12 U.S.C. 1828(a)(2). "Insured bank" is defined to mean any bank the deposits of which are insured in accordance with the provisions of the FDI Act. 12 U.S.C. 1813(h). "Bank" includes any former savings association that converted from a savings association charter, and is a SAIF member. 12 U.S.C. 1813(a).

FDIC regulations implementing 12 U.S.C. 1828(a) are set forth at 12 C.F.R. Part 328. As the foregoing indicates, a former savings association that converts to a bank charter and retains its SAIF membership pursuant to the Sasser Amendment is subject to all of the requirements set forth in 12 U.S.C. Part 328 that apply to banks.

Thank you for writing to the FDIC.

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