Title 12 — Banks and BankingRelease 119-73
§1468 Transactions with affiliates; extensions of credit to executive officers, directors, and principal shareholders
Title 12 › Chapter CHAPTER 12— - SAVINGS ASSOCIATIONS › § 1468
Summary
Savings associations must follow the rules in Sections 23A and 23B of the Federal Reserve Act about deals with affiliates and limits on credit, mostly the same as member banks. Loans or credit to an affiliate are allowed only if that affiliate does only the limited kinds of business listed in 12 U.S.C. 1467a(c)(2)(F)(i). A savings association may not make the special kind of transaction named in 23A(b)(7)(B) with an affiliate except when it involves shares of a subsidiary. If more than 80% of a savings association’s voting stock is owned by a company named in 12 U.S.C. 1467a(c)(8), and all related banks and associations meet capital rules without using goodwill, the savings association is treated as a bank under 23A(d)(1) and 23B. Starting January 1, 1995, every savings association is treated as a bank for those parts. Any company that would count as an affiliate if the savings association were a member bank is treated as an affiliate. The federal agency that supervises the savings association can add extra limits to protect safety and soundness. Subsections (g) and (h) of section 22 of the Federal Reserve Act also apply to savings associations. The supervising agency can add limits on loans to officers or people who own more than 10% of voting stock. The agency can take enforcement action under sections 8 or 18(j) of the Federal Deposit Insurance Act. The Comptroller of the Currency can exempt a Federal savings association transaction if the Board and Comptroller agree and the FDIC does not object in writing within 60 days. The FDIC can exempt a State savings association transaction if the Board and FDIC agree it is in the public interest and it does not pose an unacceptable risk to the Deposit Insurance Fund.
Full Legal Text
Title 12, §1468
Banks and Banking — Source: USLM XML via OLRC
(a)(1)section 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)(A)Every savings association more than 80 percent of the voting stock of which is owned by a company described in section 1467a(c)(8) of this title shall be treated as a bank for purposes of section 23A(d)(1) and section 23B of the Federal Reserve Act, if every savings association and bank controlled by such company complies with all applicable capital requirements on a fully phased-in basis and without reliance on goodwill.
(B)Effective on and after January 1, 1995, every savings association shall be treated as a bank for purposes of section 23A(d)(1) and section 23B of the Federal Reserve Act.
(3)Any company that would be an affiliate (as defined in section 23A and 23B of the Federal Reserve Act) of any savings association if such savings association were a member bank (as such term is defined in such Act) shall be deemed to be an affiliate of such savings association for purposes of paragraph (1).
(4)The appropriate Federal banking agency may impose such additional restrictions on any transaction between any savings association and any affiliate of such savings association as the appropriate Federal banking agency determines to be necessary to protect the safety and soundness of the savings association.
(b)(1)Subsections (g) and (h) of section 22 of the Federal Reserve Act [12 U.S.C. 375a, 375b] 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).
(2)The appropriate Federal banking agency may impose such additional restrictions on loans or extensions of credit to any appropriate Federal banking agency or executive officer of any savings association, or any person who directly or indirectly owns, controls, or has the power to vote more than 10 percent of any class of voting securities of a savings association, as the appropriate Federal banking agency determines to be necessary to protect the safety and soundness of the savings association.
(d)(1)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)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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Federal Reserve Act, referred to in subsecs. (a)(1), (3) and (b)(1), is act Dec. 23, 1913, ch. 6, 38 Stat. 251, which is classified principally to chapter 3 (§ 221 et seq.) of this title. For complete classification of this Act to the Code, see
References in Text
note set out under section 226 of this title and Tables.
Amendments
2010—Pub. L. 111–203, § 369(9), substituted “appropriate Federal banking agency” for “Director” wherever appearing. Subsec. (d). Pub. L. 111–203, § 608(c), added subsec. (d). 1994—Subsec. (a)(2)(C). Pub. L. 103–325, § 316(b), struck out heading and text of subpar. (C) which read as follows: “(C) Transition rule for well capitalized savings associations.— “(i) In general.—A savings association that is well capitalized (as defined in section 1831o of this title), as determined without including goodwill in calculating core capital, shall be treated as a bank for purposes of section 371c(d)(1) of this title and section 371c–1 of this title. “(ii) Liability of commonly controlled depository institutions.—Any savings association that engages under clause (i) in a transaction that would not otherwise be permissible under this subsection, and any affiliated insured bank that is commonly controlled (as defined in section 1815(e)(9) of this title), shall be subject to subsection (e) of section 1815 of this title as if paragraph (6) of that subsection did not apply.” Pub. L. 103–325, § 316(a), added subpar. (C). 1991—Subsec. (b)(1). Pub. L. 102–242 substituted “Subsections (g) and (h) of section 22” for “section 22(h)”. 1989—Pub. L. 101–73 amended section generally, substituting subsecs. (a) to (c) relating to affiliate transactions, extensions of credit, and administrative
Enforcement
, for former undesignated paragraph relating to separability of provisions. 1934—Act Apr. 27, 1934, reenacted section without change.
Statutory Notes and Related Subsidiaries
Effective Date
of 2010 AmendmentAmendment by section 369(9) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by section 608(c) of Pub. L. 111–203 effective 1 year after the transfer date, see section 608(d) of Pub. L. 111–203, set out as a note under section 371c of this title.
Effective Date
of 1994 Amendment Pub. L. 103–325, title III, § 316(b), Sept. 23, 1994, 108 Stat. 2223, provided that amendment made by that section is effective Jan. 1, 1995.
Effective Date
of 1991 AmendmentAmendment by Pub. L. 102–242 effective upon the earlier of the date on which final
Regulations
under section 306(m)(1) of Pub. L. 102–242 become effective or 150 days after Dec. 19, 1991, see section 306(l) of Pub. L. 102–242, set out as a note under section 375b of this title. Transitional Rule for Certain Transactions With Affiliates Pub. L. 101–73, title III, § 304, Aug. 9, 1989, 103 Stat. 351, provided that: “(a) Consistency of Certain
Regulations
With section 23A of the Federal Reserve Act [12 U.S.C. 371c].—Not later than 6 months after the date of enactment of this Act [Aug. 9, 1989], the Director of the Office of Thrift Supervision shall revise the Director’s conflicts
Regulations
so as not to prohibit a thrift institution from purchasing mortgages from a mortgage-banking affiliate to the same extent as a member bank may do so under section 250.250 of title 12, Code of Federal
Regulations
. “(b) Transitional Period.—Notwithstanding section 11(a) of the Home Owners’ Loan Act [12 U.S.C. 1468(a)] (as added by section 301 of this Act), a thrift institution that, before May 1, 1989, had received approval from the Federal Savings and Loan Insurance Corporation pursuant to section 408(d)(6) of the National Housing Act [former 12 U.S.C. 1730a(d)(6)] as then in effect to purchase mortgages from a mortgage-banking affiliate may, during the 6-month period following the date on which final
Regulations
are prescribed pursuant to subsection (a), continue to engage in transactions for which it had received such approval. Any savings association that engages in such transactions pursuant to this subsection shall comply with the standards that were applicable under section 408(d)(6) as in effect on
May 1, 1989. “(c) Authority To Extend Regulatory Approvals That Would Otherwise Lapse During the Transitional Period.—The Director of the Office of Thrift Supervision may extend until the expiration of the 6-month period described in subsection (b) any approval granted by the Federal Savings and Loan Insurance Corporation that expires or would expire before the expiration of that 6-month period. In determining whether to grant such exemptions, the Director shall apply the standards that were applicable under section 408(d)(6) of the National Housing Act [former 12 U.S.C. 1730a(d)(6)] as in effect on
May 1, 1989.”
Reference
Citations & Metadata
Citation
12 U.S.C. § 1468
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73