12 USC 1463 - Supervision of savings associations

U.S Code last checked for updates: Apr 29, 2024

§ 1463.

Supervision of savings associations

(a)

Savings associations

(1)

Examination and safe and sound operation

(A)

Federal savings associations

(B)

State savings associations

(2)

Regulations for savings associations

(3)

Safe and sound housing credit to be encouraged

(b)

Accounting and disclosure

(1)

In general

(2)

Specific requirements for accounting standards

Subject to section 1464(t) of this title, the uniform accounting standards prescribed under paragraph (1) shall—

(A)

incorporate generally accepted accounting principles to the same degree that such principles are used to determine compliance with regulations prescribed by the Federal banking agencies; and

(B)

allow for no deviation from full compliance with such standards as are in effect after December 31, 1993.

(3)

Authority to prescribe more stringent accounting standards

(c)

Stringency of standards

(d)

Investment of certain funds in accounts of savings associations

(e)

Participation by savings associations in lotteries and related activities

(1)

Participation prohibited

No savings association may—

(A)

deal in lottery tickets;

(B)

deal in bets used as a means or substitute for participation in a lottery;

(C)

announce, advertise, or publicize the existence of any lottery; or

(D)

announce, advertise, or publicize the existence or identity of any participant or winner, as such, in a lottery.

(2)

Use of facilities prohibited

No savings association may permit—

(A)

the use of any part of any of its own offices by any person for any purpose forbidden to the institution under paragraph (1); or

(B)

direct access by the public from any of its own offices to any premises used by any person for any purpose forbidden to the institution under paragraph (1).

(3)

Definitions

For purposes of this subsection—

(A)

Deal in

(B)

Lottery

The term “lottery” includes any arrangement, other than a savings promotion raffle, under which—

(i)

3 or more persons (hereafter in this subparagraph referred to as the “participants”) advance money or credit to another in exchange for the possibility or expectation that 1 or more but not all of the participants (hereafter in this paragraph referred to as the “winners”) will receive by reason of those participants’ advances more than the amounts those participants have advanced; and

(ii)

the identity of the winners is determined by any means which includes—

(I)

a random selection;

(II)

a game, race, or contest; or

(III)

any record or tabulation of the result of 1 or more events in which any participant has no interest except for the bearing that event has on the possibility that the participant may become a winner.

(C)

Lottery ticket

(D)

Savings promotion raffle

(4)

Exception for State lotteries

(5)

Regulations

(f)

Federally related mortgage loan disclosures

(g)

Preemption of State usury laws

(1)

Notwithstanding any State law, a savings association may charge interest on any extension of credit at a rate of not more than 1 percent in excess of the discount rate on 90-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district in which such savings association is located or at the rate allowed by the laws of the State in which such savings association is located, whichever is greater.

(2)

If the rate prescribed in paragraph (1) exceeds the rate such savings association would be permitted to charge in the absence of this subsection, the receiving or charging a greater rate of interest than that prescribed by paragraph (1), when knowingly done, shall be deemed a forfeiture of the entire interest which the extension of credit 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 2 years after the date of such payment, an amount equal to twice the amount of the interest paid from the savings association taking or receiving such interest.

(h)

Form and maturity of securities

No savings association shall—

(1)

issue securities which guarantee a definite maturity except with the specific approval of the appropriate Federal banking agency, or

(2)

issue any securities the form of which has not been approved by the appropriate Federal banking agency.

(June 13, 1933, ch. 64, § 4, as added Pub. L. 101–73, title III, § 301, Aug. 9, 1989, 103 Stat. 280; amended Pub. L. 111–203, title III, § 369(4), July 21, 2010, 124 Stat. 1558; Pub. L. 113–251, § 3(d), Dec. 18, 2014, 128 Stat. 2889.)

cite as: 12 USC 1463