Activities of savings associations

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— Notwithstanding subsection (a)(1), if an activity (other than an activity described in section 1464(c)(2)(B) of this title) 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— 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. Paragraph (1) does not prohibit a savings association from acquiring or retaining shares of one or more service corporations if— the Corporation has determined that no significant risk to the Deposit Insurance Fund is posed by— 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. With respect to any equity investment held by any savings association on May 1, 1989, the savings association shall be deemed not to be in violation of the prohibition in paragraph (1) or (2) on retaining such investment so long as the savings association complies with any applicable requirement established by the Corporation pursuant to subparagraph (A) for divesting such investments. No savings association may, directly or through a subsidiary, acquire or retain any corporate debt security that does not meet standards of credit-worthiness as established by the Corporation. Paragraph (1) shall not apply with respect to any corporate debt security which is acquired and retained by any qualified affiliate of a savings association. For purposes of this section— The term “qualified affiliate” means— The term “corporate debt security that does not meet standards of credit-worthiness as established by the Corporation” does not include any obligation issued or guaranteed by a corporation that may be held by a Federal savings association without limitation as to percentage of assets under subparagraph (D), (E), or (F) of section 1464(c)(1) of this title. Notwithstanding subsections (a), (b), and (c) of section 1464 11 So in original. Probably should be section “1468”. of this title and any other provision of Federal or State law governing extensions of credit by savings associations, any insured savings association, and any subsidiary of any insured savings association, that, on August 9, 1989, holds any corporate debt security that does not meet standards of credit-worthiness as established by the Corporation may acquire a qualified note in exchange for the transfer of such security to— The conditions of this paragraph are met if— the insured savings association was in compliance with applicable capital requirements on December 31, 1988, and the insured savings association after such date— the transfer of the corporate debt security that does not meet standards of credit-worthiness established by the Corporation is completed— the Comptroller of the Currency or the Corporation, as appropriate has— The term “qualified note” means any note that— contains provisions acceptable to the Comptroller of the Currency or the Corporation, as appropriate, that would— The exemption provided by this subsection from subsections (a), (b), and (c) of section 1468 of this title and any other applicable provision of Federal or State law shall terminate immediately if the insured savings association or any affiliate of such association fails to comply with the terms of the qualified note or this subsection. The Corporation shall make determinations under this section by regulation or order. For purposes of subsections (a) and (b)— The term “activity” includes acquiring or retaining any investment. Notwithstanding paragraph (1), subsections (a) and (b) shall not be construed to require a savings association to divest itself of any assets acquired before August 9, 1989. This section may not be construed as limiting—