105 STAT. 2354 PUBLIC LAW 102-242—DEC. 19, 1991 SEC. 304. RESTRICTIONS ON REAL ESTATE LENDING. (a) IN GENERAL.— Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following new subsection: "(o) REAL ESTATE LENDING.— "(1) UNIFORM REGULATIONS. —Not more than 9 months after the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, each appropriate Federal banking agency shall adopt uniform regulations prescribing standards for extensions of credit that are— "(A) secured by liens on interests in real estate; or "(B) made for the purpose of financing the construction of a building or other improvements to real estate. " (2) STANDARDS. — " (A) CRITERIA.—In prescribing standards under paragraph (1), the agencies shall consider— "(i) the risk posed to the deposit insurance funds by such extensions of credit; "(ii) the need for safe and sound operation of insured depository institutions; and "(iii) the availability of credit. "(B) VARIATIONS PERMITTED. —In prescribing standards under paragraph (1), the appropriate Federal banking agencies may differentiate among types of loans— "(i) as may be required by Federal statute; "(ii) as may be warranted, based on the risk to the deposit insurance fund; or "(iii) as may be warranted, based on the safety and soundness of the institutions. "(3) LOAN EVALUATION STANDARD.— No appropriate Federal banking agency shall adversely evaluate an investment or a loan made by an insured depository institution, or consider such a loan to be nonperforming, solely because the loan is made to or the investment is in commercial, residential, or industrial property, unless such investment or loan may affect the institution's safety and soundness. "(4) EFFECTIVE DATE.— The regulations adopted under paragraph (1) shall become effective not later than 15 months after the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991. Such regulations shall continue in effect except as uniformly amended by the appropriate Federal banking agencies, acting in concert.". (b) CONFORMING AMENDMENT.— Section 24(a) of the Federal Reserve Act (12 U.S.C. 371(a)) is amended by striking "such terms," and all that follows through the period and inserting "section 18(o) of the Federal Deposit Insurance Act and such restrictions and requirements as the Comptroller of the Currency may prescribe by regulation or order.". SEC. 305. IMPROVING CAPITAL STANDARDS. (a) PERIODIC REVIEW OF CAPITAL STANDARDS GENERALLY. — Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following new subsection: "(o) PERIODIC REVIEW OF CAPITAL STANDARDS. —Each appropriate Federal banking agency shall, in consultation with the other Federal banking agencies, biennially review its capital standards for insured depository institutions to determine whether those stand-
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