View all text of Chapter 12 [§ 1461 - § 1470]
§ 1468. Transactions with affiliates; extensions of credit to executive officers, directors, and principal shareholders
(a) Affiliate transactions
(1) In general
Sections 23A and 23B of the Federal Reserve Act [12 U.S.C. 371c and 371c–1] shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act [12 U.S.C. 221 et seq.]), except that—
(A) no loan or other extension of credit may be made to any affiliate unless that affiliate is engaged only in activities described in section 1467a(c)(2)(F)(i) of this title; and
(B) no savings association may enter into any transaction described in section 23A(b)(7)(B) of the Federal Reserve Act with any affiliate other than with respect to shares of a subsidiary.
(2) Sister bank exemption made available to savings associations
(A) Savings associations controlled by bank holding companies
(B) Savings associations generally
(3) Affiliates described
(4) Additional restrictions authorized
(b) Extensions of credit to executive officers, directors, and principal shareholders
(1) In general
(2) Additional restrictions authorized
(c) Administrative enforcement
(d) Exemptions
(1) Federal savings associations
The Comptroller of the Currency may, by order, exempt a transaction of a Federal savings association from the requirements of this section if—
(A) the Board and the Office of the Comptroller of the Currency jointly find the exemption to be in the public interest and consistent with the purposes of this section and notify the Federal Deposit Insurance Corporation of such finding; and
(B) before the end of the 60-day period beginning on the date on which the Federal Deposit Insurance Corporation receives notice of the finding under subparagraph (A), the Federal Deposit Insurance Corporation does not object, in writing, to the finding, based on a determination that the exemption presents an unacceptable risk to the Deposit Insurance Fund.
(2) State savings association
The Federal Deposit Insurance Corporation may, by order, exempt a transaction of a State savings association from the requirements of this section if the Board and the Federal Deposit Insurance Corporation jointly find that—
(A) the exemption is in the public interest and consistent with the purposes of this section; and
(B) the exemption does not present an unacceptable risk to the Deposit Insurance Fund.
(June 13, 1933, ch. 64, § 11, formerly § 9, 48 Stat. 135; Apr. 27, 1934, ch. 168, § 15, 48 Stat. 647; renumbered § 11, Pub. L. 100–86, title IV, § 402(a), Aug. 10, 1987, 101 Stat. 605; Pub. L. 101–73, title III, § 301, Aug. 9, 1989, 103 Stat. 342; Pub. L. 102–242, title III, § 306(i), Dec. 19, 1991, 105 Stat. 2359; Pub. L. 103–325, title III, § 316, Sept. 23, 1994, 108 Stat. 2223; Pub. L. 111–203, title III, § 369(9), title VI, § 608(c), July 21, 2010, 124 Stat. 1565, 1610.)