§1464a Election to Operate as a Covered Savings Association

Summary

A covered savings association is a Federal savings association that makes and gets approval for a specific election to be treated differently. A Federal savings association that reported total consolidated assets of $20,000,000,000 or less to the Comptroller on December 31, 2017 may notify the Comptroller to elect to operate as a covered savings association. The election is treated as approved 60 days after the Comptroller gets the notice unless the Comptroller says the bank is not eligible. Once approved, the bank gets the same powers and must follow the same rules as a national bank with its main office where the savings association’s home office is. For rules about governance, mergers, conversions, receivership, and similar matters, the bank is still treated as a Federal savings association. The bank may keep any branches it had when the election was approved. The Comptroller must issue clear rules for making the election, identifying and handling any assets or subsidiaries that don’t meet national bank rules, allowing time to fix or ask to keep them, and allowing the bank to end and later renew the election. If a covered savings association grows above $20,000,000,000 after the election, it may continue as a covered savings association under the Comptroller’s rules.