Failure to become and remain a qualified thrift lender

Official source

(A) In general A savings association that fails to become or remain a qualified thrift lender shall immediately be subject to the restrictions under subparagraph (B).

(B) Restrictions applicable to savings associations that are not qualified thrift lenders (i) Restrictions effective immediately The following restrictions shall apply to a savings association beginning on the date on which the savings association should have become or ceases to be a qualified thrift lender: (I) Activities The savings association shall not make any new investment (including an investment in a subsidiary) or engage, directly or indirectly, in any other new activity unless that investment or activity would be permissible for the savings association if it were a national bank, and is also permissible for the savings association as a savings association. (II) Branching The savings association shall not establish any new branch office at any location at which a national bank located in the savings association’s home State may not establish a branch office. For purposes of this subclause, a savings association’s home State is the State in which the savings association’s total deposits were largest on the date on which the savings association should have become or ceased to be a qualified thrift lender. (III) Dividends The savings association may not pay dividends, except for dividends that— (aa) would be permissible for a national bank; (bb) are necessary to meet obligations of a company that controls such savings association; and (cc) are specifically approved by the Comptroller of the Currency and the Board after a written request submitted to the Comptroller of the Currency and the Board by the savings association not later than 30 days before the date of the proposed payment. (IV) Regulatory authority A savings association that fails to become or remain a qualified thrift lender shall be deemed to have violated section 1464 of this title and subject to actions authorized by section 1464(d) of this title . (ii) Additional restrictions effective after 3 years Beginning 3 years after the date on which a savings association should have become a qualified thrift lender, or the date on which the savings association ceases to be a qualified thrift lender, as applicable, the savings association shall not retain any investment (including an investment in any subsidiary) or engage, directly or indirectly, in any activity, unless that investment or activity— (I) would be permissible for the savings association if it were a national bank; and (II) is permissible for the savings association as a savings association.

(C) Holding company regulation Any company that controls a savings association that is subject to any provision of subparagraph (B) shall, within one year after the date on which the savings association should have become or ceases to be a qualified thrift lender, register as and be deemed to be a bank holding company subject to all of the provisions of the Bank Holding Company Act of 1956 [ 12 U.S.C. 1841 et seq.], section 1818 of this title , and other statutes applicable to bank holding companies, in the same manner and to the same extent as if the company were a bank holding company and the savings association were a bank, as those terms are defined in the Bank Holding Company Act of 1956.

(D) Requalification A savings association that should have become or ceases to be a qualified thrift lender shall not be subject to subparagraph (B) or (C) if the savings association becomes a qualified thrift lender by meeting the qualified thrift lender requirement in paragraph (1) on a monthly average basis in 9 out of the preceding 12 months and remains a qualified thrift lender. If the savings association (or any savings association that acquired all or substantially all of its assets from that savings association) at any time thereafter ceases to be a qualified thrift lender, it shall immediately be subject to all provisions of subparagraphs (B) and (C) as if all the periods described in subparagraphs (B)(ii) and (C) had expired.

(E) Exemption for specialized savings associations serving certain military personnel Subparagraph (A) shall not apply to a savings association subsidiary of a savings and loan holding company if at least 90 percent of the customers of the savings and loan holding company and its subsidiaries and affiliates are active or former members in the United States military services or the widows, widowers, divorced spouses, or current or former dependents of such members.

(F) Exemption for certain Federal savings associations This paragraph shall not apply to any Federal savings association in existence as a Federal savings association on August 9, 1989 — (i) that was chartered before October 15, 1982 , as a savings bank or a cooperative bank under State law; or (ii) that acquired its principal assets from an association that was chartered before October 15, 1982 , as a savings bank or a cooperative bank under State law.

(G) No circumvention of exit moratorium Subparagraph (A) of this paragraph shall not be construed as permitting any insured depository institution to engage in any conversion transaction prohibited under section 1815(d) 3 of this title.

Failure to become and remain a qualified thrift lender

Official source

(A) In general A savings association that fails to become or remain a qualified thrift lender shall immediately be subject to the restrictions under subparagraph (B).

- 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