|
[Main Tabs]
[Table of Contents - 8000]
[Index]
[Previous Page]
[Next Page]
[Search]
8000 - Miscellaneous Statutes and Regulations
{{4-30-86 p.8537}}
DEPOSITORY INSTITUTIONS DEREGULATION AND MONETARY
CONTROL ACT OF
1980
An Act
To facilitate the implementation of monetary policy, to
provide for the gradual elimination of all limitations on the rates of
interest which are payable on deposits and accounts, and to authorize
interest-bearing transaction accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SHORT TITLE
SECTION 1. This Act may be cited as the "Depository Institutions
Deregulation and Monetary Control Act of 1980".
[Codified to 12 U.S.C. 226 note]
[Source: Section 1 of the Act of March 31, 1980 (Pub. L. No.
96-221; 94 Stat. 132), effective March 31, 1980]
TITLE I—MONETARY CONTROL ACT OF 1980
SHORT TITLE
SEC. 101. This title may be cited as the "Monetary Control Act
of 1980".
[Codified to 12 U.S.C. 226 note]
[Source: Section 101 of title I of the Act of March 31, 1980 (Pub.
L. No. 96-221; 94 Stat. 132), effective October 1, 1980]
EDITOR'S NOTE
Sections 102, 103 and 104 of this act amend sections
11(a) and 19(b) and (c) of the Federal Reserve Act (12 U.S.C. 248 and
461). Section 107 adds section 11A to the Federal Reserve Act (12
U.S.C. 248(a)).
EFFECTIVE DATES
SEC. 108. This title shall take effect on the first day of the
sixth month which begins after the date of the enactment of this title,
except that the amendments regarding sections 19(b)(7) and 19(b)(8)(D)
of the Federal Reserve Act shall take effect on the date of enactment
of this title.
[Codified to 12 U.S.C. 248 note]
[Source: Section 108 of title I of the Act of March 31, 1980 (Pub.
L. No. 96-221; 94 Stat. 141), effective March 31, 1980]
TITLE II—DEPOSITORY INSTITUTIONS DEREGULATION
[Expired March 31, 1986]
TITLE III—CONSUMER CHECKING ACCOUNT EQUITY ACT OF 1980
SHORT TITLE
SEC. 301. This title may be cited as the "Consumer Checking
Account Equity Act of 1980".
[Codified to 12 U.S.C. 226 note]
{{4-30-86 p.8538}}
[Source: Section 301 of title III of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 145), effective March 31, 1980 through
March 31, 1986]
EDITOR'S NOTE
Section 302(b) of this act amends section 18(g) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(g)).
Section 303 of this act amends section 2(a) of Public
Law 93-100 (12 U.S.C. 1832(a)) (NOW Accounts).
* * * * *
EFFECTIVE DATES
SEC. 306. The amendments made by sections 302, 304, and 305 of this
title shall take effect at the close of March 31, 1980, and the
amendments made by section 303 of this title shall take effect on
December 31, 1980.
[Codified to 12 U.S.C. 371a note]
[Source: Section 306 of title III of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 147), effective March 31, 1980]
REPEAL OF EXISTING LAW
SEC. 307. At the close of March 31, 1980, the amendments made by
sections 101 through 103 of Public Law 96-161 are hereby repealed.
[Codified to 12 U.S.C. 371a]
[Source: Section 307 of title III of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 147), effective March 31, 1980]
EDITOR'S NOTE
Section 308(a)(1) and (d) of this act amends sections
3(m), 7(d), 7(i), and 11(a)(1) and (i) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(m), 1817(d) and (i), 1821(a) and (i),
respectively).
* * * * *
TITLE IV—POWERS OF THRIFT INSTITUTIONS AND MISCELLANEOUS
PROVISIONS
* * * * *
STUDY OF MORTGAGE PORTFOLIOS
SEC. 406. (a)(1) The President shall convene an interagency task
force consisting of the Secretary of the Treasury, the Secretary of
Housing and Urban Development, the Federal Home Loan Bank Board, the
Board of Governors of the Federal Reserve System, the Board of
Directors of the Federal Deposit Insurance Corporation, the Comptroller
of the Currency, and the National Credit Union Administration Board.
The task force shall conduct a study and make recommendations
regarding--
(A) the options available to provide balance to the
asset-liability management problems inherent in the thrift portfolio
structure;
(B) the options available to increase the ability of thrift
institutions to pay market rates of interest in periods of rapid
inflation and high interest rates; and
(C) the options available through the Federal Home Loan Bank
system and other Federal agencies to assist thrifts in times of
economic difficulties.
(2) In carrying out such study, the task force shall solicit the
views of, and invite participation by, consumer and public interest
groups, business, labor, and State regulators of depository
institutions.
{{4-30-86 p.8539}}
(b) Not later than three months after the date of enactment of this
Act, the task force shall transmit to the President and the Congress
its findings and recommendations for such action as it deems
appropriate.
[Codified to 12 U.S.C. 1425a note]
[Source: Section 406 of title IV of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 159), effective March 31, 1980]
* * * * *
TITLE V—STATE USURY LAWS
PART A—MORTGAGE USURY LAWS
MORTGAGES
SEC. 501. (a)(1) The provisions of the constitution or the laws of
any State expressly limiting the rate or amount of interest, discount
points, finance charges, or other charges which may be charged, taken,
received, or reserved shall not apply to any loan, mortgage, credit
sale, or advance which is--
(A) secured by a first lien on residential real property, by a
first lien on all stock allocated to a dwelling unit in a residential
cooperative housing corporation or by a first lien on a residential
manufactured home;
(B) made after March 31, 1980; and
(C) described in section 527(b) of the National Housing Act (12
U.S.C. 1735f-5(b)), except that for the purpose of this section--
(i) the limitation described in section 527(b)(1) of such Act
that the property must be designed principally for the occupancy of
from one to four families shall not apply;
(ii) the requirement contained in section 527(b)(1) of such Act
that the loan be secured by residential real property shall not apply
to a loan secured by stock in a residential cooperative housing
corporation or to a loan or credit sale secured by a first lien on a
residential manufactured home;
(iii) the term "federally related mortgage loan" in section
527(b) of such Act shall include a credit sale which is secured by a
first lien on a residential manufactured home and which otherwise meets
the definitional requirements of section 527(b) of such Act, as those
requirements are modified by this section;
(iv) the term "residential loans" in section 527(b)(2)(D)
of such Act shall also include loans or credit sales secured by a first
lien on a residential manufactured home, and any individual who
finances the sale or exchange of residential real property or a
residential manufactured home which such individual owns and which such
individual occupies or has occupied as his principal residence;
[The page following this is 8543.]
{{11-1-83 p.8543}}
(v) the requirement contained in section 527(b)(2)(D) of
such Act that a creditor make or invest in loans aggregating more than
$1,000,000 per year shall not apply to a creditor selling residential
manufactured homes financed by loans or credit sales secured by first
liens on residential manufactured homes if the creditor has an
arrangement to sell such loans or credit sales in whole or in part, or
if such loans or credit sales are sold in whole or in part to a lender,
institution, or creditor described in section 527(b) of such Act or in
this section or a creditor, as defined in section 103(f) of the Truth
in Lending Act, as such section was in effect on the day preceding the
date of enactment of this title, if such creditor makes or invests in
residential real estate loans or loans or credit sales secured by first
liens on residential manufactured homes aggregating more than
$1,000,000 per year; and
(vi) the term "lender" in section 527(b)(2)(A) of such Act
shall also be deemed to include any lender approved by the Secretary of
Housing and Urban Development for participation in any mortgage
insurance program under the National Housing Act.
(2)(A) The provisions of the constitution or law of any State
expressly limiting the rate or amount of interest which may be charged,
taken, received, or reserved shall not apply to any deposit or account
held by, or other obligation of a depository institution. For purposes
of this paragraph, the term "depository institution" means--
(i) any insured bank as defined in section 3 of the Federal
Deposit Insurance Act (12 U.S.C.
1813);
(ii) any mutual savings bank as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813);
(iii) any savings bank as defined in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813);
(iv) any insured credit union as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752);
(v) any member as defined in section 2 of the Federal Home Loan
Bank Act (12 U.S.C. 1422); and
(vi) any insured institution as defined in section 408 of the
National Housing Act (12 U.S.C. 1730a).
(B) This paragraph shall not apply to any such deposit, account,
or obligation which is payable only at an office of an insured bank, as
defined in section 3 of the Federal Deposit Insurance Act, located in
the Commonwealth of Puerto Rico.
(b)(1) Except as provided in paragaphs (2) and (3), the provisions
of subsection (a)(1) shall apply to any loan, mortgage, credit sale, or
advance made in any State on or after April 1, 1980.
(2) Except as provided in paragraph (3), the provisions of
subsection (a)(1) shall not apply to any loan, mortgage, credit sale,
or advance made in any State after the date (on or after April 1, 1980,
and before April 1, 1983) on which such State adopts a law or certifies
that the voters of such State have voted in favor of any provision,
constitutional or otherwise, which states explicitly and by its terms
that such State does not want the provisions of subsection (a)(1) to
apply with respect to loans, mortgages, credit sales, and advances made
in such State.
(3) In any case in which a State takes an action described in
paragraph (2), the provisions of subsection (a)(1) shall continue to
apply to--
(A) any loan, mortgage, credit sale, or advance which is made
after the date such action was taken pursuant to a commitment therefor
which was entered during the period beginning on April 1, 1980, and
ending on the date on which such State takes such action; and
(B) any loan, mortgage, or advance which is a rollover of a loan,
mortgage, or advance, as described in regulations of the Federal Home
Loan Bank Board, which was made or committed to be made during the
period beginning on April 1, 1980, and ending on the date on which such
State takes any action described in paragaph (2).
(4) At any time after the date of enactment of this Act, any
State may adopt a provision of law placing limitations on discount
points or such other charges on any loan, mortgage, credit sale, or
advance described in subsection (a)(1).
{{11-1-83 p.8544}}
(c) The provisions of subsection (a)(1) shall not apply to a loan,
mortgage, credit sale, or advance which is secured by a first lien on a
residential manufactured home unless the terms and conditions relating
to such loan, mortgage, credit sale, or advance comply with consumer
protection provisions specified in regulations prescribed by the
Federal Home Loan Bank Board. Such regulations shall--
(1) include consumer protection provisions with respect to
balloon payments, prepayment penalties, late charges, and deferral
fees;
(2) require a 30-day notice prior to instituting any action
leading to repossession or foreclosure (except in the case of
abandonment or other extreme circumstances);
(3) require that upon prepayment in full, the debtor shall be
entitled to a refund of the unearned portion of the precomputed finance
charge in an amount not less than the amount which would be calculated
by the actuarial method, except that the debtor shall not be entitled
to a refund which is less than $1; and
(4) include such other provisions as the Federal Home Loan Bank
Board may prescribe after a finding that additional protections are
required.
(d) The provisions of subsection (c) shall not apply to a loan,
mortgage, credit sale, or advance secured by a first lien on a
residential manufactured home until regulations required to be issued
pursuant to paragraphs (1), (2), and (3) of subsection (c) take effect,
except that the provisions of subsection (c) shall apply in the case of
such a loan, mortgage, credit sale, or advance made prior to the date
on which such regulations take effect if the loan, mortgage, credit
sale, or advance includes a precomputed finance charge and does not
provide that, upon repayment in full, the refund of the unearned
portion of the precomputed finance charge is in an amount not less than
the amount which would be calculated by the actuarial method, except
that the debtor shall not be entitled to a refund which is less than
$1. The Federal Home Loan Bank Board shall issue regulations pursuant
to the provisions of paragraphs (1), (2), and (3) of subsection (c)
that shall take effect prospectively not less than 30 days after
publication in the Federal Register and not later than 120 days from
the date of enactment of this Act.
(e) For the purpose of this section--
(1) a "prepayment" occurs upon--
(A) the refinancing or consolidation of the indebtedness;
(B) the actual prepayment of the indebtedness by the consumer
whether voluntarily or following acceleration of the payment obligation
by the creditor; or
(C) the entry of a judgment for the indebtedness in favor of the
creditor;
(2) the term "actuarial method" means the method of
allocating payments made on a debt between the outstanding balance of
the obligation and the precomputed finance charge pursuant to which a
payment is applied first to the accrued precomputed finance charge and
any remainder is subtracted from, or any deficiency is added to, the
outstanding balance of the obligation;
(3) the term "precomputed finance charge" means interest or
a time price differential within the meaning of sections 106(a)(1) and
(2) of the Truth in Lending Act (15 U.S.C.
1605(a)(1) and (2)) as computed by an add-on or discount
method; and
(4) the term "residential manufactured home" means a
manufactured home as defined in section 603(6) of the National Mobile
Home Construction and Safety Standards Act of 1974 which is used as a
residence.
(f) The Federal Home Loan Bank Board is authorized to issue rules
and regulations and to publish interpretations governing the
implementation of this section.
(g) This section takes effect on April 1, 1980.
[Codified to 12 U.S.C. 1735f-7 note]
[Source: Section 501 of title V of the Act of March 31,
1980 (Pub. L. No. 96-221; 94 Stat. 161-163), effective April 1, 1980,
as amended by sections 308 and 324 of title III of the Act of
October 8, 1980 (Pub. L. No. 96-399; 94 Stat. 1641 and 1648), effective
October 8, 1980; section 384 of title III of the Act of August 13, 1981
(Pub. L. No. 97-35; 95 Stat. 432), effective August 13,
1981]
{{11-1-83 p.8545}}
* * * * *
PART B—BUSINESS AND AGRICULTURAL LOANS
BUSINESS AND AGRICULTURAL LOANS
SEC. 511. (a) If the applicable rate prescribed in this section
exceeds the rate a person would be permitted to charge in the absence
of this section, such person may in the case of a business or
agricultural loan in the amount of $1,000 or more, notwithstanding any
State constitution or statute which is hereby preempted for the
purposes of this section, take, receive, reserve, and charge on any
such loan, interest at a rate of not more than 5 per centum in excess
of the discount rate, including any surcharge thereon, on ninety-day
commercial paper in effect at the Federal Reserve bank in the Federal
Reserve district where the person is located.
(b) For the purpose of this part--
(1) the term "loan" includes all secured and unsecured
loans, credit sales, forbearances, advances, renewals or other
extensions of credit made by or to any person or organization for
business or agricultural purposes;
(2) the term "interest" includes any compensation, however
denominated, for a loan;
(3) the term "organization" means a corporation, government
or governmental subdivision or agency, trust, estate, partnership,
cooperative, association, or other entity; and
(4) the term "person" means a natural person or
organization.
(c) If the rate prescribed in subsection (a) exceeds the rate such
person would be permitted to charge in the absence of this section, and
such State imposed rate is thereby preempted by the rate described in
subsection (a), the taking, receiving, reserving, or charging a greater
rate than is allowed by subsection (a), when knowingly done, shall be
deemed a forfeiture of the entire interest which the loan carries with
it, or which has been agreed to be paid thereon. If such greater rate
of interest has been paid, the person who paid it may recover, in a
civil action commenced in a court of appropriate jurisdiction not later
than two years after the date of such payment, an amount equal to twice
the amount of interest paid from the person taking, receiving,
reserving, or charging such interest.
[Codified to 12 U.S.C. 86a]
[Source: Section 511 of title V of the Act of March 31, 1980 (Pub.
L. No. 96-221; 94 Stat. 164), effective as detailed in section 512
below; as amended by section 324 of title III of the Act of October 8,
1980 (Pub. L. No. 96-399; 94 Stat. 1648), effective October 8, 1980]
EFFECTIVE DATE OF PART B
SEC. 512. (a) The provisions of this part shall apply only with
respect to business or agricultural loans in amounts of $1,000 or more
made in any State during the period beginning on April 1, 1980, and
ending on the earlier of--
(1) April 1, 1983; or
(2) the date, on or after April 1, 1980, on which such State
adopts a law or certifies that the voters of such State have voted in
favor of any provision, constitutional or otherwise, which states
explicitly and by its terms that such State does not want the
provisions of this part to apply with respect to loans made in such
State,
except that such provisions shall apply to any loan made on or after
such earlier date pursuant to a commitment to make such loan which was
entered into on or after April 1, 1980, and prior to such earlier date.
(b) A loan shall be deemed to be made during the period described
in subsection (a) if such loan--
(1)(A) is funded or made in whole or in part during such period,
regardless of whether pursuant to a commitment or other agreement
therefor made prior to April 1, 1980;
(B) was made prior to or on April 1, 1980, and bears or provides
for interest during such period on the outstanding amount thereof at a
variable or fluctuating rate; or
{{11-1-83 p.8546}}
(C) is a renewal, extension, or other modification during such
period of any loan, if such renewal, extension, or other modification
is made with the written consent of any person obligated to repay such
loan; and
(2)(A) is an original principal amount of $25,000 or more ($1,000
or more on or after the date of enactment of the Housing and Community
Development Act of 1980); or
(B) is part of a series of advances if the aggregate of all sums
advanced or agreed or contemplated to be advanced pursuant to a
commitment or other agreement therefor is $25,000 or more ($1,000 or
more on or after the date of enactment of the Housing and Community
Development Act of 1980).
[Codified to 12 U.S.C. 86a note]
[Source: Section 512 of title V of the Act of March 31, 1980 (Pub.
L. No. 96-221; 94 Stat. 164), effective March 31, 1980; as amended by
section 324 of title III of the Act of October 8, 1980 (Pub. L. No.
96-399; 94 Stat. 1649), effective April 1, 1980]
EDITOR'S NOTE
Section 521 of this act adds section 27 to the Federal Deposit
Insurance Act (12 U.S.C. 1831d).
* * * * *
EFFECTIVE DATE
SEC. 525. The amendments made by sections 521 through 523 of this
title shall apply only with respect to loans made in any State during
the period beginning on April 1, 1980, and ending on the date, on or
after April 1, 1980, on which such State adopts a law or certifies that
the voters of such State have voted in favor of any provision,
constitutional or otherwise, which states explicitly and by its terms
that such State does not want the amendments made by such sections to
apply with respect to loans made in such State, except that such
amendments shall apply to a loan made on or after the date such law is
adopted or such certification is made if such loan is made pursuant to
a commitment to make such loan which was entered into on or after April
1, 1980, and prior to the date on which such law is adopted or such
certification is made.
[Codified to 12 U.S.C. 1730g note]
[Source: Section 525 of title V of the Act of March 31, 1980 (Pub.
L. No. 96-221; 94 Stat. 167), effective March 31, 1980]
TITLE VI—TRUTH IN LENDING SIMPLIFICATION
SHORT TITLE
SEC. 601. This title may be cited as the "Truth in Lending
Simplification and Reform Act".
[Codified to 15 U.S.C. 1601 note]
[Source: Section 601 of title VI of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 168-186), effective March 31, 1980]
EDITOR'S NOTE
Sections 602 through 624 of this act amend the Truth in
Lending Act (15 U.S.C. 1602 et sec.).
* * * * *
{{8-29-86 p.8546.01}}
EFFECTIVE DATE
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.
(b) All regulations, forms, and clauses required to be prescribed
under the amendments made by this title shall be promulgated at least
one year prior to such effective date.
(c) Notwithstanding subsections (a) and (b), any creditor may
comply with the amendments made by this title, in accordance with the
regulations, forms, and clauses prescribed by the Board, prior to such
effective date. Any creditor who elects to comply with such amendments
and any assignee of such a creditor shall be subject to the provisions
of sections 130 and 131 of the Truth in Lending Act, as amended by
sections 615 and 616, respectively, of this title.
[Codified to 15 U.S.C. 1602 note]
[Source: Section 625 of title VI of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 185-186), effective March 31, 1980,
as amended by section 301 of title III of the Act of July 27,
1981 (Pub. L. No. 97-25; 95 Stat. 145), effective July 27, 1981; and
section 301 of title III of the Act of December 26, 1981 (Pub. L. No.
97-110; 95 Stat. 1515), effective December 26, 1981]
TITLE VII—AMENDMENTS TO THE NATIONAL BANKING LAWS
PART A—NATIONAL BANKING LAWS
* * * * *
EDITOR'S NOTE
Sections 712(b)-(c) and 713 amend section 3(c) and (d) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1842(c) and (d)).
* * * * *
TITLE VIII—REGULATORY SIMPLIFICATION
[Expired March 31, 1985]
TITLE IX—FOREIGN CONTROL OF UNITED STATES FINANCIAL
INSTITUTIONS
DEFINITIONS
SEC. 901. For purposes of this title--
(1) the term "domestic financial institution" means any
bank, mutual savings bank, or savings and loan association organized
under the laws of any State or of the United States;
(2) the term "foreign person" means any foreign
organization or any individual resident in a foreign country or any
organization or individual owned or controlled by such an organization
or individual; and
(3) the term "takeover" means any acquisition of the stock
or assets of any domestic financial institution if, after such
acquisition, the amount of stock or assets held is 5 per centum or more
of the institution's stock or assets.
[Codified to 12 U.S.C. 3101 note]
[Source: Section 901 of title IX of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 192), effective March 31, 1980]
MORATORIUM
SEC. 902. The Board of Governors of the Federal Reserve System, the
Comptroller of the Currency, the Board of Directors of the Federal
Deposit Insurance Corporation, and the
{{8-29-86 p.8546.02}}Federal Home Loan Bank Board may not
approve any application relating to the takeover of any domestic
financial institution by a foreign person until July 1, 1980, unless--
(1) such takeover is necessary to prevent the bankruptcy or
insolvency of the domestic financial institution involved;
(2) the application was initially submitted for filing on or
before March 5, 1980;
(3) the domestic financial institution has deposits of less than
$100,000,000;
(4) the application relates to a takeover of shares or assets
pursuant to a foreign person's intrafirm reorganization of its
interests in a domestic financial institution, including specifically
any application to establish a bank holding company pursuant to such
reorganization;
(5) the application relates to a takeover of the assets or shares
of a domestic financial institution if such assets or shares are owned
or controlled by a foreign person; or
(6) the application relates to the takeover of a domestic
financial institution which is a subsidiary of a bank holding company
under an order to divest by December 31, 1980.
[Codified to 12 U.S.C. 3101 note]
[Source: Section 902 of title IX of the Act of March 31, 1980
(Pub. L. No. 96-221; 94 Stat. 193), effective March 31, 1980]
[The page following this is 8547.]
[Main Tabs]
[Table of Contents - 8000]
[Index]
[Previous Page]
[Next Page]
[Search]
|
