Sec. 11. TRANSACTIONS WITH AFFILIATES; EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS.16
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## SEC. 11 TRANSACTIONS WITH AFFILIATES; EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS.16 **[**[12 U.S.C. 1468](/us/usc/t12/s1468)**]** 16Effective on July 21, 2011, section 369(9) of Public Law 111–203 amends section 11 by striking “Director” each place that term appears and inserting “appropriate Federal banking agency”. Section 311 of such Public Law provides for a delayed effective date of one year after the date of enactment of this law subject to a transfer of duties. See section 311(b) of such Public Law for a possible extension of the transfer date. ###
(a)Affiliate Transactions ####
(1)In general Sections 23A and 23B of the Federal Reserve Act 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), 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 10(c)(2)(F)(i); 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 10(c)(8) 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 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 director 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, as appropriate. **[**Note: Effective July 21, 2012, (one year after the transfer date pursuant to section 608(d) of Public Law 111–203), section 608(c) of such Public Law provides for an amendment to insert a new subsection (d). Section 311 of such Public Law provides for a delayed effective date of one year after the date of enactment of this law subject to a transfer of duties. See section 311(b) of such Public Law for a possible extension of the transfer date.**]** ###
(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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- Pub. L. 111-203
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Sec. 11
TRANSACTIONS WITH AFFILIATES; EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS.16
Pub. L.Pub. L. 111-203
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