Prevention of new affiliations between S&L holding companies and commercial firms

Official source

(A) In general Notwithstanding paragraph (3), no company may directly or indirectly, including through any merger, consolidation, or other type of business combination, acquire control of a savings association after May 4, 1999 , unless the company is engaged, directly or indirectly (including through a subsidiary other than a savings association), only in activities that are permitted— (i) under paragraph (1)(C) or (2) of this subsection; or (ii) for financial holding companies under section 4(k) of the Bank Holding Company Act of 1956 [ 12 U.S.C. 1843(k) ].

(B) Prevention of new commercial affiliations Notwithstanding paragraph (3), no savings and loan holding company may engage directly or indirectly (including through a subsidiary other than a savings association) in any activity other than as described in clauses (i) and (ii) of subparagraph (A).

(C) Preservation of authority of existing unitary S&L holding companies Subparagraphs (A) and (B) do not apply with respect to any company that was a savings and loan holding company on May 4, 1999 , or that becomes a savings and loan holding company pursuant to an application pending before the Office on or before that date, and that— (i) meets and continues to meet the requirements of paragraph (3); and (ii) continues to control not fewer than 1 savings association that it controlled on May 4, 1999 , or that it acquired pursuant to an application pending before the Office on or before that date, or the successor to such savings association.

(D) Corporate reorganizations permitted This paragraph does not prevent a transaction that— (i) involves solely a company under common control with a savings and loan holding company from acquiring, directly or indirectly, control of the savings and loan holding company or any savings association that is already a subsidiary of the savings and loan holding company; or (ii) involves solely a merger, consolidation, or other type of business combination as a result of which a company under common control with the savings and loan holding company acquires, directly or indirectly, control of the savings and loan holding company or any savings association that is already a subsidiary of the savings and loan holding company.

(E) Authority to prevent evasions The Board may issue interpretations, regulations, or orders that the Board determines necessary to administer and carry out the purpose and prevent evasions of this paragraph, including a determination (in consultation with the appropriate Federal banking agency) that, notwithstanding the form of a transaction, the transaction would in substance result in a company acquiring control of a savings association.

(F) Preservation of authority for family trusts Subparagraphs (A) and (B) do not apply with respect to any trust that becomes a savings and loan holding company with respect to a savings association, if— (i) not less than 85 percent of the beneficial ownership interests in the trust are continuously owned, directly or indirectly, by or for the benefit of members of the same family, or their spouses, who are lineal descendants of common ancestors who controlled, directly or indirectly, such savings association on May 4, 1999 , or a subsequent date, pursuant to an application pending before the Office on or before May 4, 1999 ; and (ii) at the time at which such trust becomes a savings and loan holding company, such ancestors or lineal descendants, or spouses of such descendants, have directly or indirectly controlled the savings association continuously since May 4, 1999 , or a subsequent date, pursuant to an application pending before the Office on or before May 4, 1999 .

Prevention of new affiliations between S&L holding companies and commercial firms

Official source

- name: qualified_thrift_investment_percentage_threshold kind: parameter dtype: Rate source: 12 USC 1467a(m) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1467a excerpt: qualified thrift investments equal or exceed 65 percent versions: - effective_from: '0001-01-01' formula: '0.65'

- name: qualified_thrift_monthly_average_required_months kind: parameter dtype: Count source: 12 USC 1467a(m) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1467a excerpt: on a monthly average basis in 9 out of every 12 months versions: - effective_from: '0001-01-01' formula: '9'

- name: qualified_thrift_lender kind: derived entity: SavingsAssociation dtype: Judgment period: Month source: 12 USC 1467a(m) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/12/1467a - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1467a excerpt: 65 percent - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1467a excerpt: 9 out of every 12 months versions: - effective_from: '0001-01-01' formula: |- qualifies_as_domestic_building_and_loan_association or ( qualified_thrift_investments_divided_by_portfolio_assets >= qualified_thrift_investment_percentage_threshold and months_in_prior_twelve_meeting_monthly_average_requirement >= qualified_thrift_monthly_average_required_months )

- name: qualified_stock_issuance_voting_stock_limit kind: parameter dtype: Rate source: 12 USC 1467a(q) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1467a excerpt: not more than 15 percent of the outstanding voting stock versions: - effective_from: '0001-01-01' formula: '0.15'

- name: qualified_stock_issuance kind: derived entity: SavingsAndLoanHoldingCompany dtype: Judgment period: Day source: 12 USC 1467a(q) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/12/1467a - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1467a excerpt: not more than 15 percent versions: - effective_from: '0001-01-01' formula: >- issuer_is_undercapitalized_savings_association_or_qualifying_holding_company and shares_are_previously_unissued_or_treasury_shares and all_shares_purchased_by_registered_savings_and_loan_holding_company and board_approved_purchase and entire_consideration_paid_in_cash and acquiring_company_voting_stock_share_after_issuance <= qualified_stock_issuance_voting_stock_limit and not more_than_one_issuer_director_represents_acquiring_company and transactions_with_acquiring_company_subject_to_section_1468

- name: first_tier_report_penalty_daily_cap kind: parameter dtype: Money unit: USD source: 12 USC 1467a(r) metadata: proof: atoms: - path: versions[0].formula kind: amount source: corpus_citation_path: us/statute/12/1467a excerpt: not more than $2,000 for each day versions: - effective_from: '0001-01-01' formula: '2000'

- name: second_tier_report_penalty_daily_cap kind: parameter dtype: Money unit: USD source: 12 USC 1467a(r) metadata: proof: atoms: - path: versions[0].formula kind: amount source: corpus_citation_path: us/statute/12/1467a excerpt: not more than $20,000 for each day versions: - effective_from: '0001-01-01' formula: '20000'

- name: third_tier_report_penalty_fixed_daily_cap kind: parameter dtype: Money unit: USD source: 12 USC 1467a(r) metadata: proof: atoms: - path: versions[0].formula kind: amount source: corpus_citation_path: us/statute/12/1467a excerpt: not more than $1,000,000 or 1 percent of total assets versions: - effective_from: '0001-01-01' formula: '1000000'

- name: third_tier_report_penalty_asset_share_cap kind: parameter dtype: Rate source: 12 USC 1467a(r) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/12/1467a excerpt: 1 percent of total assets versions: - effective_from: '0001-01-01' formula: '0.01'

- name: report_penalty_daily_cap kind: derived entity: SavingsAndLoanHoldingCompany dtype: Money period: Day unit: USD source: 12 USC 1467a(r) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/12/1467a - path: versions[0].formula kind: amount source: corpus_citation_path: us/statute/12/1467a excerpt: $2,000 ... $20,000 ... $1,000,000 or 1 percent versions: - effective_from: '0001-01-01' formula: >- if first_tier_report_violation_applies: first_tier_report_penalty_daily_cap else: if second_tier_report_violation_applies: second_tier_report_penalty_daily_cap else: if third_tier_report_violation_applies: min(third_tier_report_penalty_fixed_daily_cap, total_assets * third_tier_report_penalty_asset_share_cap) else: 0