§402 CONTINUATION AND COORDINATION OF CERTAIN REGULATIONS.

Summary

Keeps the old FSLIC and Federal Home Loan Bank Board rules that existed on August 9, 1989 for how account insurance worked and how the FSLIC insurance fund was run, until the FDIC writes new, uniform rules. Until the FDIC’s new rules take effect, the amount of insurance for any account that became insured because of a change in the law must be figured the same way those old FSLIC rules said, and it cannot be more than what those old rules would have allowed. The FDIC must review both its rules and the old FSLIC rules and, within 270 days after August 9, 1989, create one set of rules for all insured deposits (unless another law says treatment can differ). The FDIC must consider safety, depositor confidence, and stability. New rules must tell depositors about any changes and must start no later than 90 days after they become final. Amounts in custodial accounts held to pay a mortgage borrower’s principal, interest, taxes, and insurance are insured for $100,000 per borrower until the FDIC’s new rules take over. For adjustable-rate mortgage papers already in effect on August 9, 1989, old references to FSLIC or the Home Loan Bank Board must be read as referring to the new agencies now handling those duties. If an index used to set an adjustable rate stops being produced because of the law change, the Comptroller, the FDIC Chair, or the FHFA Chair must keep the old indexes available or allow a very similar index to replace it after notice and comment. Definitions: insured account — a type of insured housing-related account named in earlier housing law; insured depository institution — a bank or savings institution that is treated as insured under the federal deposit insurance law.