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12 U.S.C. § 1468 — Transactions with affiliates; extensions of credit to executive officers, directors, and principal shareholders
Federal law — U.S. Code and appendices · legal_authorities
**(a) Affiliate transactions**
(1) **In general** — Sections 23A and 23B of the Federal Reserve Act [[12 U.S.C. 371c](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section371c&num=0&edition=prelim) and 371c–1] shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act [[12 U.S.C. 221](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section221&num=0&edition=prelim) et seq.]), except that—
(A) no loan or other extension of credit may be made to any affiliate unless that affiliate is engaged only in activities described in [section 1467a(c)(2)(F)(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1467a/c/2/F/i&num=0&edition=prelim); and
(B) no savings association may enter into any transaction described in section 23A(b)(7)(B) of the Federal Reserve Act with any affiliate other than with respect to shares of a subsidiary.
(2) **Sister bank exemption made available to savings associations**
(A) *Savings associations controlled by bank holding companies* — Every savings association more than 80 percent of the voting stock of which is owned by a company described in [section 1467a(c)(8) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1467a/c/8&num=0&edition=prelim) shall be treated as a bank for purposes of section 23A(d)(1) and section 23B of the Federal Reserve Act, if every savings association and bank controlled by such company complies with all applicable capital requirements on a fully phased-in basis and without reliance on goodwill.
(B) *Savings associations generally* — Effective on and after January 1, 1995, every savings associa
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Source file: Laws/federal/codes/united-states-code/title-12/section-1468-transactions-with-affiliates-extensions-of-credit-to-executive-officers--9c3e7c339f.md
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Source location: Title 12, Chapter 12, § 1468; chapter-012-savings-associations.md
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**(a) Affiliate transactions**
(1) **In general** — Sections 23A and 23B of the Federal Reserve Act [[12 U.S.C. 371c](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section371c&num=0&edition=prelim) and 371c–1] shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act [[12 U.S.C. 221](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section221&num=0&edition=prelim) et seq.]), except that—
(A) no loan or other extension of credit may be made to any affiliate unless that affiliate is engaged only in activities described in [section 1467a(c)(2)(F)(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1467a/c/2/F/i&num=0&edition=prelim); and
(B) no savings association may enter into any transaction described in section 23A(b)(7)(B) of the Federal Reserve Act with any affiliate other than with respect to shares of a subsidiary.
(2) **Sister bank exemption made available to savings associations**
(A) *Savings associations controlled by bank holding companies* — Every savings association more than 80 percent of the voting stock of which is owned by a company described in [section 1467a(c)(8) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1467a/c/8&num=0&edition=prelim) shall be treated as a bank for purposes of section 23A(d)(1) and section 23B of the Federal Reserve Act, if every savings association and bank controlled by such company complies with all applicable capital requirements on a fully phased-in basis and without reliance on goodwill.
(B) *Savings associations generally* — Effective on and after January 1, 1995, every savings association shall be treated as a bank for purposes of section 23A(d)(1) and section 23B of the Federal Reserve Act.
(3) **Affiliates described** — Any company that would be an affiliate (as defined in sections 23A and 23B of the Federal Reserve Act) of any savings association if such savings association were a member bank (as such term is defined in such Act) shall be deemed to be an affiliate of such savings association for purposes of paragraph (1).
(4) **Additional restrictions authorized** — The appropriate Federal banking agency may impose such additional restrictions on any transaction between any savings association and any affiliate of such savings association as the appropriate Federal banking agency determines to be necessary to protect the safety and soundness of the savings association.
**(b) Extensions of credit to executive officers, directors, and principal shareholders**
(1) **In general** — Subsections (g) and (h) of section 22 of the Federal Reserve Act [[12 U.S.C. 375a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section375a&num=0&edition=prelim), 375b] shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act).
(2) **Additional restrictions authorized** — The appropriate Federal banking agency may impose such additional restrictions on loans or extensions of credit to any appropriate Federal banking agency or executive officer of any savings association, or any person who directly or indirectly owns, controls, or has the power to vote more than 10 percent of any class of voting securities of a savings association, as the appropriate Federal banking agency determines to be necessary to protect the safety and soundness of the savings association.
**(c) Administrative enforcement** The appropriate Federal banking agency may take enforcement action with respect to violations of this section pursuant to section 8 or 18(j) of the Federal Deposit Insurance Act [[12 U.S.C. 1818](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1818&num=0&edition=prelim) or 1828(j)], as appropriate.
**(d) Exemptions**
(1) **Federal savings associations** — The Comptroller of the Currency may, by order, exempt a transaction of a Federal savings association from the requirements of this section if—
(A) the Board and the Office of the Comptroller of the Currency jointly find the exemption to be in the public interest and consistent with the purposes of this section and notify the Federal Deposit Insurance Corporation of such finding; and
(B) before the end of the 60-day period beginning on the date on which the Federal Deposit Insurance Corporation receives notice of the finding under subparagraph (A), the Federal Deposit Insurance Corporation does not object, in writing, to the finding, based on a determination that the exemption presents an unacceptable risk to the Deposit Insurance Fund.
(2) **State savings association** — The Federal Deposit Insurance Corporation may, by order, exempt a transaction of a State savings association from the requirements of this section if the Board and the Federal Deposit Insurance Corporation jointly find that—
(A) the exemption is in the public interest and consistent with the purposes of this section; and
(B) the exemption does not present an unacceptable risk to the Deposit Insurance Fund.
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Federal law — U.S. Code and appendices · legal_authorities
Wherever the word “bank” is used in this chapter, the word shall be held to include State bank, banking association, and trust company, except where national banks or Federal reserve banks are specifically referred to. For purposes of this chapter, a State bank includes any bank which is operating under the Code of Law for the District of Columbia.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 221
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Termination of insurance**
(1) **Voluntary termination** — Any insured depository institution which is not—
(A) a national member bank;
(B) a State member bank;
(C) a Federal branch;
(D) a Federal savings association; or
(E) an insured branch which is required to be insured under subsection (a) or (b) 11 See References in Text note below. of [section 3104 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3104&num=0&edition=prelim),
may terminate such depository institution’s status as an insured depository institution if such insured institution provides written notice to the Corporation of the institution’s intent to terminate such status not less than 90 days before the effective date of such termination.
(2) **Involuntary termination**
(A) *Notice to primary regulator* — If the Board of Directors determines that—
(i) an insured depository institution or the directors or trustees of an insured depository institution have engaged or are engaging in unsafe or unsound practices in conducting the business of the depository institution;
(ii) an insured depository institution is in an unsafe or unsound condition to continue operations as an insured institution; or
(iii) an insured depository institution or the directors or trustees of the insured institution have violated any applicable law, regulation, order, condition imposed in writing by the Corporation in connection with the approval of any application or other request by the insured depository institution, or written agreement entered into between the insured depository institution and the Corporation,
the Board of Directors shall notify the appropriate Federal banking agency with respect to such institution (if other than the Corp
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1818
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Application to Corporation required**
(1) **In general** — Except as provided in paragraphs (2) and (3), any depository institution which is engaged in the business of receiving deposits other than trust funds (as defined in [section 1813(p) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1813/p&num=0&edition=prelim)), upon application to and examination by the Corporation and approval by the Board of Directors, may become an insured depository institution.
(2) **Interim depository institutions** — In the case of any interim Federal depository institution that is chartered by the appropriate Federal banking agency and will not open for business, the depository institution shall be an insured depository institution upon the issuance of the institution’s charter by the agency.
(3) **Application and approval not required in cases of continued insurance** — Paragraph (1) shall not apply in the case of any depository institution whose insured status is continued pursuant to [section 1814 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1814&num=0&edition=prelim).
(4) **Review requirements** — In reviewing any application under this subsection, the Board of Directors shall consider the factors described in [section 1816 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1816&num=0&edition=prelim) in determining whether to approve the application for insurance.
(5) **Notice of denial of application for insurance** — If the Board of Directors votes to deny any application for insurance by any depository institution, the Board of Directors shall promptly notify the appropriate Federal banking agency and, in the case of any State depository insti
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1815
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Restrictions on transactions with affiliates**
(1) A member bank and its subsidiaries may engage in a covered transaction with an affiliate only if—
(A) in the case of any affiliate, the aggregate amount of covered transactions of the member bank and its subsidiaries will not exceed 10 per centum of the capital stock and surplus of the member bank; and
(B) in the case of all affiliates, the aggregate amount of covered transactions of the member bank and its subsidiaries will not exceed 20 per centum of the capital stock and surplus of the member bank.
(2) For the purpose of this section, any transaction by a member bank with any person shall be deemed to be a transaction with an affiliate to the extent that the proceeds of the transaction are used for the benefit of, or transferred to, that affiliate.
(3) A member bank and its subsidiaries may not purchase a low-quality asset from an affiliate unless the bank or such subsidiary, pursuant to an independent credit evaluation, committed itself to purchase such asset prior to the time such asset was acquired by the affiliate.
(4) Any covered transactions and any transactions exempt under subsection (d) between a member bank and an affiliate shall be on terms and conditions that are consistent with safe and sound banking practices.
**(b) Definitions** For the purpose of this section—
(1) the term “affiliate” with respect to a member bank means—
(A) any company that controls the member bank and any other company that is controlled by the company that controls the member bank;
(B) a bank subsidiary of the member bank;
(C) any company—
(i) that is controlled directly or indirectly, by a trust or otherwise, by or for the benefit of shareholders who beneficially or otherwise control, directly or in
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 371c
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Federal law — U.S. Code and appendices · legal_authorities
(1) **In general** — No member bank may extend credit to any of its executive officers, directors, or principal shareholders, or to any related interest of such a person, except to the extent permitted under paragraphs (2), (3), (4), (5), and (6).
(2) **Preferential terms prohibited**
(A) *In general* — A member bank may extend credit to its executive officers, directors, or principal shareholders, or to any related interest of such a person, only if the extension of credit—
(i) is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank;
(ii) does not involve more than the normal risk of repayment or present other unfavorable features; and
(iii) the bank follows credit underwriting procedures that are not less stringent than those applicable to comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank.
(B) *Exception* — Nothing in this paragraph shall prohibit any extension of credit made pursuant to a benefit or compensation program—
(i) that is widely available to employees of the member bank; and
(ii) that does not give preference to any officer, director, or principal shareholder of the member bank, or to any related interest of such person, over other employees of the member bank.
(3) **Prior approval required** — A member bank may extend credit to a person described in paragraph (1) in an amount that, when aggregated with the amount of all other outstanding extensions of credit by that bank to each such person and that person’s related interests, would e
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 375b
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Repealed. Pub. L. 111–139, title I, § 10(a), Feb. 12, 2010, 124 Stat. 21**
**(b) Student loans** For all student loans under part B or D of title IV of the Higher Education Act of 1965 [[20 U.S.C. 1071](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1071&num=0&edition=prelim) et seq., 1087a et seq.] made during the period when a sequestration order under [section 904 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section904&num=0&edition=prelim) is in effect as required by section 902 or 903 of this title, origination fees under sections 438(c)(2) and (6) and 455(c) [[20 U.S.C. 1087–1(c)(2)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087–1/c/2&num=0&edition=prelim), (6), 1087e(c)] and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act [[20 U.S.C. 1078(f)(1)(A)(ii)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/f/1/A/ii&num=0&edition=prelim)] shall each be increased by the uniform percentage specified in that sequestration order, and, for student loans originated during the period of the sequestration, special allowance payments under section 438(b) of that Act [[20 U.S.C. 1087–1(b)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087–1/b&num=0&edition=prelim)] accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.
**(c) Repealed. Pub. L. 111–139, title I, § 10(c), Feb. 12, 2010, 124 Stat. 22**
**(d) Special rules for Medicare program**
(1) **Calculation of reduction in payment amounts** — To achieve the total percentage reduction in those programs required by section 902 or 903 of this title, subject
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Federal law — U.S. Code and appendices · legal_authorities
The short title of the Act of December 23, 1913, ch. 6, 38 Stat. 251, shall be the “Federal Reserve Act.”
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Federal law — U.S. Code and appendices · legal_authorities
(1) **General prohibition; authorization for extension of credit; conditions for credit** — Except as authorized under this section, no member bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this section. Any extension of credit under this section shall be promptly reported to the board of directors of the bank, and may be made only if—
(A) the bank would be authorized to make it to borrowers other than its officers;
(B) it is on terms not more favorable than those afforded other borrowers;
(C) the officer has submitted a detailed current financial statement; and
(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer.
(2) **Mortgage loans** — A member bank may make a loan to any executive officer of the bank if, at the time the loan is made—
(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and
(B) no other loan by the bank to the officer under authority of this paragraph is outstanding.
(3) **Educational loans** — A member bank may make extensions of credit to any executive officer of the bank to finance the education of the children of the officer.
(4) **General limitation on amount of credit
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 375a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Examination of savings associations** The cost of conducting examinations of savings associations pursuant to [section 1464(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1464/d&num=0&edition=prelim) shall be assessed by—
(1) the Comptroller, against each such Federal savings association, as the Comptroller deems necessary or appropriate; and
(2) the Corporation, against each such State savings association, as the Corporation deems necessary or appropriate.
**(b) Examination of affiliates** The cost of conducting examinations of affiliates of savings associations pursuant to this chapter may be assessed by the Comptroller or Corporation, as appropriate 11 So in original. Probably should be followed by a comma. against each affiliate that is examined as the Comptroller or Corporation, as appropriate 1 deems necessary or appropriate.
**(c) Assessment against association in case of affiliate’s refusal to pay**
(1) **In general** — Subject to paragraph (2), if any affiliate of any savings association—
(A) refuses to pay any assessment under subsection (b); or
(B) fails to pay any such assessment before the end of the 60-day period beginning on the date of the assessment,
the appropriate Federal banking agency may assess such cost against, and collect such cost from, such savings association.
(2) **Affiliate of more than 1 savings association** — If any affiliate referred to in paragraph (1) is an affiliate of more than 1 savings association, the assessment with respect to the affiliate against, and collected from, any affiliated savings association in such proportions as the appropriate Federal banking agency may prescribe.
**(d) Civil money penalty for affiliate’s refusal to cooperate**
(1) **Penalty impo
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1467
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions**
(1) **In general** — As used in this section, unless the context otherwise requires—
(A) *Savings association* — The term “savings association” includes a savings bank or cooperative bank which is deemed by the appropriate Federal banking agency to be a savings association under subsection (l).
(B) *Uninsured institution* — The term “uninsured institution” means any depository institution the deposits of which are not insured by the Federal Deposit Insurance Corporation.
(C) *Company* — The term “company” means any corporation, partnership, trust, joint-stock company, or similar organization, but does not include the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, any Federal home loan bank, or any company the majority of the shares of which is owned by the United States or any State, or by an instrumentality of the United States or any State.
(D) *Savings and loan holding company*
(i) *In general* — Except as provided in clause (ii), the term “savings and loan holding company” means any company that directly or indirectly controls a savings association or that controls any other company that is a savings and loan holding company.
(ii) *Exclusion* — The term “savings and loan holding company” does not include—
(I) a bank holding company that is registered under, and subject to, the Bank Holding Company Act of 1956 ([12 U.S.C. 1841](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1841&num=0&edition=prelim) et seq.), or to any company directly or indirectly controlled by such company (other than a savings association);
(II) a company that controls a savings association that functions solely in a trust or fiduciary capacity as described in section 2(c)(2)(D) of the
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1467a
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