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8000 - Miscellaneous Statutes and Regulations


GARN-ST GERMAIN DEPOSITORY INSTITUTIONS ACT OF 1982

An Act

To revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans.

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 "Garn-St Germain Depository Institutions Act of 1982".

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

[Source: Section 1 of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1469), effective October 15, 1982]

TITLE I—DEPOSIT INSURANCE FLEXIBILITY

SHORT TITLE

SEC. 101.  This title may be cited as the "Deposit Insurance Flexibility Act".

[Codified to 12 U.S.C. 1811 note]

[Source: Section 101 of title I of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1469), effective October 15, 1982]

EDITOR'S NOTE

This act amends sections 3(q) and (t); 4; 7(a), (d) and (j); 8(a) and (o); 10(b); 11(c) and (g); 12(a); 13(c), (e), (f), (g) and (h); 18(c) and (j); and 26 of the Federal Deposit Insurance Act (12 U.S.C. 1813(q) and (t); 1814; 1817(a), (d) and (j); 1818(a) and (o); 1820(b), 1821(c) and (g); 1822(a); 1823(c), (f), (g) and (h); 1828(c) and (j); and 1831c, respectively).

Section 118 of this act amends sections 2(i), 3(d) and 4(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(i), 1842(d) and 1843(c), respectively).

TITLE II—NET WORTH CERTIFICATES

SHORT TITLE

SEC. 201.  This title may be cited as the "Net Worth Certificate Act".

[Codified to 12 U.S.C. 1811 note]

[Source: Section 201 of title II of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1489), effective October 15, 1982]

EDITOR'S NOTE

Section 203 of this act amends section 13 of the Federal Deposit Insurance Act (12 U.S.C. 1823) by adding a new subsection (i).

REPORTS TO CONGRESS

SEC. 204.  The Federal Home Loan Bank Board and the Board of Directors of the Federal Deposit Insurance Corporation shall each transmit an annual report to each House of the Congress specifying the types and amounts of net worth certificates purchased from each depository institution and the conditions imposed on each such depository institution.

[Codified to 12 U.S.C. 1823 note]


[Source: Section 204 of title II of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1495), effective October 15, 1982]

GOVERNMENT ACCOUNTABILITY OFFICE AUDIT

SEC. 205.  The Comptroller General of the United States shall conduct on a semiannual basis an audit of the net worth certificate programs of the Federal Deposit Insurance Corporation and the Federal Home Loan Bank Board. A report on each such audit shall be transmitted to each House of the Congress.

[Codified to 12 U.S.C. 1823 note]

[Source: Section 205 of title II of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1495), effective October 15, 1982; amended by section 8(b) of the Act of July 7, 2004 (Pub. L. No. 108--171; 118 Stat. 814), effective July 7, 2004]

REPEAL

SEC. 206.  On October 13, 1991, section 406(f)(5) of the National Housing Act and section 13(i) of the Federal Deposit Insurance Act are repealed.

[Codified to 12 U.S.C. 1729, 1823]

[Source: Section 206 of title II of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1496), effective October 15, 1982, as amended by section 6(b) of the Act of October 8, 1985 (Pub. L. No. 99-120; 99 Stat. 504), effective October 8, 1985; the Act of April 24, 1986 (Pub. L. 99-278; 100 Stat. 397), effective April 24, 1986; the Act of August 27, 1986 (Pub. L. No. 99-400; 100 Stat. 902), effective August 27, 1986; the Act of October 8, 1986 (Pub. L. No. 99-452; 100 Stat. 1140), effective October 8, 1986; and section 509(b) of title V of the Act of August 10, 1987 (Pub. L. No. 100-86; 101 Stat. 635), effective August 10, 1987]

TITLE III—THRIFT INSTITUTIONS RESTRUCTURING

SHORT TITLE

SEC. 301.  This title may be cited as the "Thrift Institutions Restructuring Act".

[Codified to 12 U.S.C. 1461 note]

[Source: Section 301 of title III of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1496), effective October 15, 1982]

EDITOR'S NOTE

This act amends section 2(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)) and section 204 of the Depository Institutions Deregulation Act of 1980 (12 U.S.C. 3503).

TITLE IV—PROVISIONS RELATING TO NATIONAL AND MEMBER BANKS

EDITOR'S NOTE

Title IV amends sections 2(c), 3(e), 4(a) and 8(b) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c), 1842(e), 1843(a) and 1847(b)); section 106(b) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972); section 205(2) of the Depository Institution Management Interlocks Act (12 U.S.C. 3204(2)); sections 7(k), 8(b), (e), (f), (g), (i), (j) and (q), 10(b) and 18(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(k), 1818(b), (e), (f), (g), (i), (j) and (q), 1820(b) and 1828(j), respectively); section 1006(b) of the Federal Financial Inststitutions Examination Council Act of 1978 (12 U.S.C. 3305); sections 19(b), 22(h) and 23A of the Federal Reserve Act (12 U.S.C. 461, 375b and 371c, respectively); section 5200 of the Revised Statutes (12 U.S.C. 84); and sections 1112 and 1114(b) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3412 and 3414(b)).

TITLE VI—PROPERTY, CASUALTY, LIFE INSURANCE ACTIVITIES OF BANK HOLDING COMPANIES

AMENDMENT TO THE BANK HOLDING COMPANY ACT OF 1956

EDITOR'S NOTE

Title VI amends section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)).

TITLE VII—MISCELLANEOUS

EDITOR'S NOTE

Title VII amends section 2(a) of Public Law 93-100 (NOW Accounts) (12 U.S.C. 1832), sections 1 to 7 of the Bank Service Corporation Act (12 U.S.C. 1861 to 1867), sections 3(a) and (l) and 5(a) of the Federal Deposit Insurance Act (12 U.S.C. 1813(a) and (l) and 1815(a), respectively), section 19(b) of the Federal Reserve Act (12 U.S.C. 461), section 8(c) of the International Banking Act of 1978 (12 U.S.C. 3106), and sections 603 and 604 of the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8102 and 8103).

INSURANCE STUDY

SEC. 712.  (a)  The Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration Board shall each conduct a study of--

(1)  the current system of deposit insurance and its impact on the structure and operations of depository institutions;

(2)  the feasibility of providing depositors the option to purchase additional deposit insurance covering deposits in excess of the general limit provided by law and the capabilities of the private insurance system, either directly or through reinsurance, to provide risk coverage in excess of the general statutory limit;

(3)  the feasibility of basing deposit insurance premiums on the risk posed by either the insured institution or the category or size of the depository institution rather than the present flat rate system;

(4)  the impact of expanding coverage of insured deposits upon the operations of the insurance funds, including the possibility of increased or undue risk to the funds;

(5)  the feasibility of revising the deposit insurance system to provide even greater protection for smaller depositors while fostering a greater degree of discipline with respect to large depositors;

(6)  the adequacy of existing public disclosure regarding the condition and business practices of insured depository institutions, and providing an assessment of changes which may be needed to assure adequate public disclosure;

(7)  the feasibility of consolidating the three separate insurance funds; and

(8) other related issues.

(b)  A report containing the results of each of the studies carried out under subsection (a) shall be transmitted to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and to the Committee on Banking, Housing, and Urban Affairs of the Senate not later than six months after the date of enactment of this Act.

[Not codified]

[Source: Section 712 of title VII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1544), effective October 15, 1982]


TITLE VIII—ALTERNATIVE MORTGAGE TRANSACTIONS

SHORT TITLE

SEC. 801.  This title may be cited as the "Alternative Mortgage Transaction Parity Act of 1982".

[Codified to 12 U.S.C. 3801 note]

[Source: Section 801 of title VIII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1545), effective October 15, 1982]

FINDINGS AND PURPOSE

SEC. 802.  (a)  The Congress hereby finds that--

(1)  increasingly volatile and dynamic changes in interest rates have seriously impaired the ability of housing creditors to provide consumers with fixed-term, fixed-rate credit secured by interests in real property, cooperative housing, manufactured homes, and other dwellings;

(2)  alternative mortgage transactions are essential to the provision of an adequate supply of credit secured by residential property necessary to meet the demand expected during the 1980's; and

(3)  the Comptroller of the Currency, the National Credit Union Administration, and the Director of the Office of Thrift Supervision have recognized the importance of alternative mortgage transactions and have adopted regulations authorizing federally chartered depository institutions to engage in alternative mortgage financing.

(b)  It is the purpose of this title to eliminate the discriminatory impact that those regulations have upon nonfederally chartered housing creditors and provide them with parity with federally chartered institutions by authorizing all housing creditors to make, purchase, and enforce alternative mortgage transactions so long as the transactions are in conformity with the regulations issued by the Federal agencies.

[Codified to 12 U.S.C. 3801]

[Source: Section 802 of title VIII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1545), effective October 15, 1982; as amended by section 744(c) of title VII of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 438), effective August 9, 1989]

DEFINITIONS

SEC. 803.  As used in this title--

(1)  the term "alternative mortgage transaction" means a loan or credit sale secured by an interest in residential real property, a dwelling, all stock allocated to a dwelling unit in a residential cooperative housing corporation, or a residential manufactured home (as that term is defined in section 5402(6) of title 42), in which the interest rate or finance charge may be adjusted or renegotiated, described and defined by applicable regulation; and

(2)  the term "housing creditor" means--

(A)  a depository institution, as defined in section 501(a)(2) of the Depository Institutions Deregulation and Monetary Control Act of 1980;

(B)  a lender approved by the Secretary of Housing and Urban Development for participation in any mortgage insurance program under the National Housing Act;

(C)  any person who regularly makes loans, credit sales, or advances secured by interests in properties referred to in paragraph (1); or

(D)  any transferee of any of them.

A person is not a "housing creditor" with respect to a specific alternative mortgage transaction if, except for this title, in order to enter into that transaction, the person would be required to comply with licensing requirements imposed under State law, unless such person is licensed under applicable State law and such person remains, or becomes, subject to the applicable regulatory requirements and enforcement mechanisms provided by State law.

[Codified to 12 U.S.C. 3802]

[Source: Section 803 of title VIII of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1545), effective October 15, 1982; section 1083(a)(1) of title X of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2080), effective July 21, 2011]

Note

(c)  RULE OF CONSTRUCTION.--The amendments made by subsection (a) shall not affect any transaction covered by the Alternative Mortgage Transaction Parity Act of l982 (12 U.S.C. 3801 et seq.) and entered into on or before the designated transfer date.

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

[Source: Section 1083 (c) of title X of the Act of July 21, 2011 (Pub. L. No. 111--203; 124 Stat. 2081), effective July 21, 2011]

ALTERNATIVE MORTGAGE AUTHORITY

SEC. 804.  (a)  In order to prevent discrimination against State-chartered depository institutions, and other nonfederally chartered housing creditors, with respect to making, purchasing, and enforcing alternative mortgage transactions, housing creditors may make, purchase, and enforce alternative mortgage transactions, except that this section shall apply--

(1)  with respect to banks, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010, in accordance with regulations governing alternative mortgage transactions as issued by the Comptroller of the Currency for national banks, to the extent that such regulations are authorized by rulemaking authority granted to the Comptroller of the Currency with regard to national banks under laws other than this section;

(2)  with respect to credit unions, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010, in accordance with regulations governing alternative mortgage transactions as issued by the National Credit Union Administration Board for Federal credit unions, to the extent that such regulations are authorized by rulemaking authority granted to the National Credit Union Administration with regard to Federal credit unions under laws other than this section;

(3)  with respect to all other housing creditors, including without limitation, savings and loan associations, mutual savings banks, and savings banks, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010, in accordance with regulations governing alternative mortgage transactions as issued by the Director of the Office of Thrift Supervision for federally chartered savings and loan associations, to the extent that such regulations are authorized by rulemaking authority granted to the Director of the Office of Thrift Supervision with regard to federally chartered savings and loan associations under laws other than this section; and

(4)  with respect to transactions made after the designated transfer date, only in accordance with regulations governing alternative mortgage transactions, as issued by the Bureau of Consumer Financial Protection for federally chartered housing creditors, in accordance with the rulemaking authority granted to the Bureau of Consumer Financial Protection with regard to federally chartered housing creditors under provisions of law other than this section.

(b)  For the purpose of determining the applicability of this section, an alternative mortgage transaction shall be deemed to be made in accordance with the applicable regulation notwithstanding the housing creditor's failure to comply with the regulation, if--

(1)  the transaction is in substantial compliance with the regulation; and

(2)  within sixty days of discovering any error, the housing creditor corrects such error, including making appropriate adjustments, if any, to the account.

(c)  PREEMPTION OF STATE LAW.--An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation that prohibits an alternative mortgage transaction. For purposes of this subsection, a State constitution, law, or regulation that prohibits an alternative mortgage transaction does not include any State constitution, law, or regulation that regulates mortgage transactions generally, including any restriction on prepayment penalties or late charges.

(d)  BUREAU ACTIONS.--The Bureau of Consumer Financial Protection shall--

(1)  review the regulations identified by the Comptroller of the Currency and the National Credit Union Administration, (as those rules exist on the designated transfer date), as applicable under paragraphs (1) through (3) of subsection (a);

(2)  determine whether such regulations are fair and not deceptive and otherwise meet the objectives of the Consumer Financial Protection Act of 2010; and

(3)  promulgate regulations under subsection (a)(4) after the designated transfer date.

(e)  DESIGNATED TRANSFER DATE.--As used in this section, the term "designated transfer date" means the date determined under section 1062 of the Consumer Financial Protection Act of 2010.

[Codified to 12 U.S.C. 3803]

[Source: Section 804 of title VIII of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1546), effective October 15, 1982; as amended by section 744(c) of title VII of the Act of August 9, 1989 (Pub. L. No. 101--73; Stat. 438), effective August 9, 1989; section 1083(a)(2) of title X of the Act of July 21, 2010 (Pub. L. No, 111--203; 124 Stat. 2080 and 2081), effetive July 21, 2011]

APPLICABILITY

SEC. 805.  (a)  The provisions of section 804 shall not apply to any alternative mortgage transaction in any State made on or after the effective date (if such effective date occurs on or after the effective date of this title and prior to a date three years after the effective date of this title) of a State law or a certification 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 preemption provided in section 804 to apply with respect to alternative mortgage transactions (or to any class or type of alternative mortgage transaction) subject to the laws of such State, except that section 804 shall continue to apply to--

(1)  any alternative mortgage transaction undertaken on or after such date pursuant to an agreement to undertake such alternative mortgage transaction which was entered into on or after the effective date of this title and prior to such later date (the "preemption period"); and

(2)  any renewal, extension, refinancing, or other modification of an alternative mortgage transaction that was entered into during the preemption period.

(b)  An alternative mortgage transaction shall be deemed to have been undertaken during the preemption period to which this section applies if it--

(1)  is funded or extended in whole or in part during the preemption period, regardless of whether pursuant to a commitment or other agreement therefor made prior to that period; or

(2)  is a renewal, extension, refinancing, or other modification of an alternative mortgage transaction entered into before the preemption period and such renewal, extension, or other modification is made during such period with the written consent of any person obligated to repay such credit.

[Codified to 12 U.S.C. 3804]


[Source: Section 805 of title VIII of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1547), effective October 15, 1982, as amended by section 472 of title IV of the Act of November 30, 1984 (Pub. L. No. 98-181; 97 Stat. 1237), effective November 30, 1984]

RELATION TO OTHER LAW

SEC. 806.  Section 501(c)(1) of the Depository Institutions Deregulation and Monetary Control Act of 1980 shall not apply to transactions which are subject to this title.

[Codified to 12 U.S.C. 3805]

[Source: Section 806 of title VIII of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1548), effective October 15, 1982]

EFFECTIVE DATE

SEC. 807.  (a)  This title shall be effective upon enactment.

(b)  Within sixty days of the enactment of this title, the Comptroller of the Currency, the National Credit Union Administration, and the Director of the Office of Thrift Supervision shall identify, describe, and publish those portions or provisions of their respective regulations that are inappropriate for (and thus inapplicable to), or that need to be conformed for the use of, the nonfederally chartered housing creditors to which their respective regulations apply, including without limitation, making necessary changes in terminology to conform the regulatory and disclosure provisions to those more typically associated with various types of transactions including credit sales.

[Codified to 12 U.S.C. 3801 note]

[Source: Section 807 of title VIII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1548), effective October 15, 1982; as amended by section 744(c) of title VII of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 438), effective August 9, 1989]


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