§402 Continuation and Coordination of Certain Regulations.

Summary

Rules that were in effect on Aug. 9, 1989 from the Federal Savings and Loan Insurance Corporation (and the Home Loan Bank Board acting for it) that deal with account insurance or how that insurance fund was run continue to apply for now. If a bank became an insured depository because of a change in law, how much of a deposit is insured must be determined using the old FSLIC rules that were in place the day before Aug. 9, 1989. Those insured amounts cannot be higher than what the old FSLIC rules would have paid. The Federal Deposit Insurance Corporation (FDIC) must compare its rules with the old FSLIC rules and, within 270 days after Aug. 9, 1989, make one uniform set of rules for all insured deposits (unless another law says to treat certain funds differently). FDIC must think about safety, depositor confidence, and stability when making the rules. FDIC must tell depositors about any coverage changes and the new rules must take effect no later than 90 days after they are final. Until the FDIC rules take effect, custodial accounts for mortgage payments are insured up to $100,000 per mortgage borrower. For adjustable‑rate mortgages in effect on Aug. 9, 1989, references to the old agencies are treated as references to the new agencies as appropriate. If an index used to set a mortgage rate stops being published because of the law change, the agencies must keep the index available or allow a substantially similar index after public notice and a finding that the data and resulting rates are substantially similar. Definitions used: "insured account" — the meaning from the old National Housing Act section 401(c); "insured depository institution" — the meaning from FDIC Act section 3(c)(2).