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Code · STATUTE-COMPILATIONS · Bank Enterprise Act of 1991 · Sec. 475

Sec. 475. PURCHASED MORTGAGE SERVICING RIGHTS

272 words·~1 min read·/statute-compilations/comps-10658/sec-475

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## SEC. 475 PURCHASED MORTGAGE SERVICING RIGHTS **[**[12 U.S.C. 1828](/us/usc/t12/s1828) nt.**]** ###
(a)In General Notwithstanding section 5(t)(4) of the Home Owners' Loan Act, each appropriate Federal banking agency shall determine, with respect to insured depository institutions for which it is the appropriate Federal regulator, the amount of readily marketable purchased mortgage servicing rights that may be included in calculating such institution's tangible capital, risk-based capital, or leverage limit, if— ####
(1)such servicing rights are valued at not more than 90 percent (or such other percentage exceeding 90 percent but not exceeding 100 percent, as may be determined under subsection (b)) of their fair market value; and ####
(2)the fair market value of such servicing rights is determined not less often than quarterly. ###
(b)Authority To Determine Percentage by Which To Discount Value of Servicing Rights The appropriate Federal banking agencies may allow readily marketable purchased mortgage servicing rights to be valued at more than 90 percent of their fair market value but at not more than 100 percent of such value, if such agencies jointly make a finding that such valuation would not have an adverse effect on the deposit insurance funds or the safety and soundness of insured depository institutions. ###
(c)Definition For purposes of this section, the terms “**appropriate Federal banking agency**”, “deposit insurance fund”, and “insured depository institution” have the same meanings as in section 3 of the Federal Deposit Insurance Act. ###
(d)Effective Date This section shall apply after the end of the 60-day period beginning on the date of the enactment of this Act. * * * * * * *
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Sec. 475
PURCHASED MORTGAGE SERVICING RIGHTS
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