Full text of International Banking Facility Deposit Insurance Act

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PUBLIC LAW 97-110—DEC. 26, 1981

95 STAT. 1513

Public Law 97-110
97th Congress
An Act
To clarify the treatment of international banking facility deposits for purposes of
deposit insurance assessments and to remove certain limitations on the mortgage
loan purchase authority of the Federal Home Loan Mortgage Corporation and the
Federal National Mortgage Association.

Be it enacted by the Senate and House of Representatives of the
United States ofAmerica in Congress assembled,
TITLE I—INTERNATIONAL BANKING FACILITY DEPOSIT
INSURANCE ACT

Dec. 26, 1981
[H.R. 4879]

International
Banking Facility
Deposit
Insurance Act.

SHORT TITLE

SEC. 101. This title may be cited as the 'International Banking
Facility Deposit Insurance Act",
INTERNATIONAL BANKING FACIUTY DEPOSITS

SEC. 102. Section 3(1X5) of the Federal Deposit Insurance Act (12
U.S.C. 1813(1X5)) is amended to read as follows:
"(5) such other obligations of a bank as the Board of Directors,
after consultation with the Comptroller of the Currency and the
Board of Governors of the Federal Reserve System, shall find and
prescribe by regulation to be deposit liabilities by general usage,
except that the following shall not be a deposit for any of the
purposes of this Act or be included as part of the total deposits or
of an insured deposit:
"(A) any obligation of a bank which is payable only at an
office of such bank located outside of the States of the United
States, the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and
the Virgin Islands; and
"(B) any international banking facility deposit, including
an international banking facility time deposit, as such term
is from time to time defined by the Board of Governors of the
Federal Reserve System in regulation D or any successor
regulation issued by the Board of Governors of the Federal
R ^ r v e System.".
BRANCHES OF INSURED BANKS IN THE TRUST TERRITORY OF THE PACIFIC
ISLANDS

SEC. 103. (a) Section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813) is amended—
(1) in subsection (a), by inserting "the Trust Territory of the
Pacific Islands," after "American Samoa," each place it appears
therein;
(2) in subsection (mXD, by inserting "of the Trust Territory of
the Pacific Islands," after "American Samoa,"; and

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note.

95 STAT. 1514

PUBLIC LAW 97-110—DEC. 26, 1981

(3) in subsection (o), by inserting "the Trust Territory of the
Pacific Islands," after "American Samoa," each place it appears
therein.
(b) Section 7 of such Act (12 U.S.C. 1817) is amended—
(1) in subsection (aX4), by inserting "the Trust Territory of the
Pacific Islands," after "American Samoa,"; and
(2) in subsection (bXSKB), by inserting "the Trust Territory of
the Pacific Islands," after "American Samoa,".
(c) Section ll(a)(2XA)(iv) of such Act (12 U.S.C. 1821(a)(2)(AXiv)) is
amended—
(1) by inserting "of the Trust Territory of the Pacific Islands,"
after "of American Samoa,"; and
(2) by inserting "the Trust Territory of the Pacific Islands,"
after "Virgin Islands, American Samoa,".
Mortgage
Purchase
Amendments of
1981.

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"°^^-

TITLE II-MORTGAGE PURCHASE AMENDMENTS OF 1981
SHORT TITLE

SEC. 201. This title may be cited as the "Mortgage Purchase
Amendments of 1981".
PURCHASES OF MORTGAGES MORE THAN ONE YEAR OLD

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"°^-

SEC. 202. (a) The third sentence of section 305(aX2) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(aX2)) is
amended to read as follows: "The Corporation may purchase a
conventional mortgage which was originated more than one year
prior to the purchase date only if the seller is the Federal Deposit
Insurance Corporation, the Federal Savings and Loan Insurance
Corporation, the National Credit Union Administration, or any other
seller currently engaged in mortgage lending or investing activities.".
(bXl) Section 305(aX2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(aX2)) is amended by inserting after the
third sentence thereof the following: "With respect to any transaction in which a seller contemporaneously sells mortgages originated
more than one year old prior to the date of sale to the Corporation
and receives in payment for such mortgages securities representing
undivided interests only in those mortgages, the Corporation shall
not impose any fee or charge upon an eligible seller which is not a
member of a Federal Home Loan Bank which differs from that
imposed upon an eligible seller which is such a member.".
(2) The amendment made by paragraph (1) shall take effect on
January 1, 1982, and shall apply to commitments entered into on or
after such date.
(c) The fourth sentence of section 302(bK2) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1717(bX2)) is amended to
read as follows: "The Corporation may purchase a conventional
mortgage which was originated more than one year prior to the
purchase date only if the seller is the Federal Deposit Insurance
Corporation, the Federal Savings and Loan Insurance Corporation,
the National Credit Union Administration, or any other seller
currently engaged in mortgage lending or investing activities.".

PUBLIC LAW 97-110—DEC. 26, 1981

95 STAT. 1515

MORTGAGE LOAN PURCHASES FROM THE FEDERAL DEPOSIT INSURANCE
CORPORATION AND THE NATIONAL CREDIT UNION ADMINISTRATION

SEC. 203. Subsections (aXD and (b) of section 305 of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1454) are amended
by inserting "the Federal Deposit Insurance Corporation, the
National Credit Union Administration," after "Federal Savings and
Loan Insurance Corporation," each place it appears.
TITLE III—MISCELLANEOUS
SEC. 301. Section 625(a) of the Depository Institutions Deregulation
and Monetary Control Act of 1980 is amended to read as follows:
"SEC. 625. (a) Except as provided in section 608(b), the amendments
made by this title shall take effect upon the expiration of two years
and six months after the date of enactment of this title.".
SEC. 302. Section 206 of the Depository Institution Management
Interlocks Act is amended to read as follows:
"SEC. 206. (a) A person whose service in a position as a management
official began prior to the date of enactment of this title and who was
not immediately prior to the date of enactment of this title in
violation of section 8 of the Clayton Act is not prohibited by section
203 or section 204 of this title from continuing to serve in that
ptosition for a period of ten years after the date of enactment of this
title. The appropriate Federal banking agency (as set forth in section
209) may provide a reasonable period of time for compliance with this
title, not exceedingfifteenmonths, aiter any change in circumstances
which makes service described in the preceding sentence prohibited
by this title, except that a merger, acquisition, increase in total
assets, establishment of one or more offices, or change in management responsibilities shall not constitute changes in circumstances
which would make such service prohibited by section 203 or section
204 of this title.
"0)) Effective on the date of enactment of this title, a person who
serves aa a management official of a company which is not a
depository institution or a depository holding company and as a
management official of a depositonr institution or a depository
holding company is not prohibited m>m continuing to serve as a
management official of that depository institution or depository
holding company as a result of that company which is not a depository institution or depository holding company becoming a diversified savings and loan holding company as that term is defined in
section 408(a) of the National Housing Act. This subsection shall
expire ten years after the date of enactment of this title.".
SEC. 303. Section 313 of the Depository Institutions Deregulation
and Monetary Control Act of 1980 is amended to read as follows:

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note.
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15 USC 19.
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^2"^12 use 3207.

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Expiration.
94 Stat. I5i.

"ALASKA USA FEDERAL CREDIT UNION

"SEC. 313. The provisions of section 5 of the charter of the Alaska
USA Federal Credit Union which would terminate the eligibility for
membership in the Credit Union of the enroUees and employees of
certain corporations shall not be effective.".
SEC. 304. The fourth sentence of section 235(hXl) of the National
Housing Act is amended—
Ante, p. 407.
(1) by inserting "(i)" after "except";
(2) by striking out "or" after "March 31, 1982," the second
place it appears and inserting in lieu thereof "(ii)"; and

95 STAT. 1516

42 use 5301.

PUBLIC LAW 97-110—DEC. 26, 1981
(3) by inserting before the period after "1974" the following:
", or (lii) pursuant to other commitments issued on or before
September 30, 1981, where housing under this section is to be
developed on land which was municipally owned on September 30,1981, and where a local government contributes at least
$1,000 per unit of funds obtained under title I of the Housing and
Community Development Act of 1974 and at least $2,000 per unit
of additional funds to assist housing under this section".
Approved December 26, 1981.

LEGISLATIVE HISTORY—H.R. 4879:
CONGRESSIONAL RECORD, Vol. 127 (1981):
Nov. 17, considered and passed House.
Dec. 15, considered and passed Senate, amended.
Dec. 16, House concurred in Senate amendments.