PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 313 the determination of the amount of the penalty) shall be subject to the provisions of such subsection. "(8) HEARING.— Any savings association against which any penalty is assessed under this subsection shall be afforded a hearing if such savings association submits a request for such _. hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this subsection. '"SEC. 6. LIQUID ASSET REQUIREMENTS. 12 USC 1465. r "(a) IN GENERAL.— The purpose of this section is to provide a means for creating effective and flexible liquidity in savings associa- tions which can be increased when mortgage money is plentiful, maintained in easily liquidated instruments, and reduced to add to the flow of funds to the mortgage market in periods of credit stringency. More flexible liquidity will help support sound mortgage credit and a more stable supply of such credit. "(b) MAINTENANCE OF ACCOUNT. — "(1) IN GENERAL.— Every savings association shall maintain the aggregate amount of its assets of the following types at not less than such amount as, in the opinion of the Director, is appropriate: "(A) cash; "(B) balances maintained in a Federal reserve bank or passed through a Federal home loan bank or another depository institution to a Federal reserve bank pursuant to the Federal Reserve Act; and "(C) to such extent as the Director may approve for the Securities, purposes of this section— "(i) time and savings deposits in Federal home loan banks, institutions which are, or are eligible to become, members thereof, and commercial banks; "(ii) such obligations, including such special obligations, ' of the United States, a State, any territory or possession of the United States, or a political subdivision, agency, or instrumentality of any one or more of the foregoing, and bankers' acceptances, as the Director may approve; "(iii) shares or certificates of any open-end management investment company which is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and the portfolio of which is restricted by such investment company's investment policy, changeable only if authorized by shareholder vote, solely to any of the obligations or other investments enumerated in subpara- graph (A) and in clauses (i), (ii), (iv), (v), (vi), and (vii) of this subparagraph; "(iv) liquid, highly rated corporate debt obligations with 3 years or less remaining until maturity; "(v) highly rated commercial paper with 270 days or less remaining until maturity; "(vi) mortgage related securities (as that term is defined ^ in section 3(a)(41) of the Securities Exchange Act of 1934)— ^^ "(I) that have one year or less remaining until matu- rity; or , "(II) that are subject to an agreement (including a repurchase agreement, put option, right of redemption, or takeout commitment) that requires another person
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