PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 269 asset was acquired after April 12, 1989, except to the extent per- mitted under section 5(t) of the Home Owners'Loan Act." SEC. 222. ACTIVITIES OF SAVINGS ASSOCIATIONS. The Federal Deposit Insurance Act is amended by adding at the end the following new section: " SEC. 28. ACTIVITIES OF SAVINGS ASSOCIATIONS. 12 USC 1831e. "(a) IN GENERAL.—On and after January 1, 1990, a savings /^ association chartered under State law may not engage as principal in any type of activity, or in any activity in an amount, that is not permissible for a Federal savings association unless— "(1) the Corporation has determined that the activity would pose no significant risk to the affected deposit insurance fund; and "(2) the savings association is and continues to be in compli- ance with the fully phased-in capital standards prescribed under section 5(t) of the Home Owners'Loan Act. "0>) DIFFERENCES OF MAGNITUDE BETWEEN STATE AND FEDERAL POWERS. —Notwithstanding subsection (a)(D, if an activity (other than an activity described in section 5(c)(2)(B) of the Home Owners' Loan Act) is permissible for a Federal savings association, a savings association chartered under State law may engage as principal in that activity in an amount greater than the amount permissible for a Federal savings association if— "(1) the Corporation has not determined that engaging in that amount of the activity poses any significant risk to the affected deposit insurance fund; and (2) the savings association chartered under State law is and continues to be in compliance with the fully phased-in capital standards prescribed under section 5(t) of the Home Owners' Loan Act. "(c) EQUITY INVESTMENTS BY STATE SAVINGS ASSOCIATIONS. — "(1) IN GENERAL.— Notwithstanding subsections (a) and (b), a savings association chartered under State law may not directly acquire or retain any equity investment of a type or in an amount that is not permissible for a Federal savings association. " (2) EXCEPTION FOR SERVICE CORPORATIONS.— Paragraph (1) does not prohibit a savings association from acquiring or retain- ing shares of one or more service corporations if— "(A) the Corporation has determined that no significant risk to the affected deposit insurance fund is posed by— "(i) the amount that the association proposes to acquire or retain, or "(ii) the activities in which the service corporation engages; and "(B) the savings association is and continues to be in compliance with the fully phased-in capital standards pre- scribed under section 5(t) of the Home Owners' Loan Act. " (3) TRANSITION RULE. — "(A) IN GENERAL.—The Corporation shall require any savings association to divest any equity investment the retention of which is not permissible under paragraph (1) or (2) as quickly as can be prudently done, and in any event not later than July 1, 1994.
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