34 1 2 3 4 extension of credit, information relative to a contract of insurance which is required by the credit transaction, for the purpose of replacing such insurance; "(4)(A) accept, with regard to any insurance 5 issued or sold by it or an affiliate thereof, in connection CO 6 7 བ 8 9 10 11 12 13 14 15 16 with an extension of credit made by such bank, the cancellation by a borrower of any such insurance if notified by the borrower within 30 days of the effective date of the insurance; and "(B) refund the unearned portion of the premium to the creditor within twenty days after receipt of a notice of cancellation if no liability for a loss under the insurance has been incurred."; and (3) by adding at the end of subsection (b)(2) the following: "(I) Any action for injunctive relief that may be com17 menced by any person pursuant to subsection (g) may be 18 commenced on behalf of such person by any trade association 19 of which such person is a member. Any such action com20 menced by a trade association shall be subject to the same 21 requirements, limitations, and conditions as would be applica22 ble had such action been commenced by any such person pur23 suant to subsection (g).". S 2181 IS 1 2 35 AMENDMENTS TO THE NATIONAL HOUSING ACT SEC. 108. (a) Section 408(a)(1) of the National Housing 3 Act (12 U.S.C. 1730a(a)(1)) is amended lows: (1) by amending subparagraph (A) to read as fol "(A) 'insured institution' means a Federal savings and loan association, a Federal savings bank, a building and loan, savings and loan or homestead association, or a cooperative bank, the accounts of which are insured by the Federal Savings and Loan Insurance Corporation, and shall include a Federal savings bank or a stock savings bank, the deposits of which are insured by the Federal Deposit Insurance Corporation;"; lows: (2) by amending subparagraph (B) to read as fol "(B) ‘uninsured institution' means any association or bank referred to in subparagraph (A), the accounts of which are not insured by the Federal Savings and Loan Insurance Corporation, except for a Federal savings bank or stock savings bank, the deposits of which are insured by the Federal Deposit Insurance Corporation; and"; and (3) by adding at the end thereof the following: means any corporation that (i) is engaged in the United S 2181 IS 36 States in one or more of the activities authorized for depository institution securities affiliates pursuant to section 4(c)(15) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)(15)) and subject to the limitations specified therein, and (ii) is a broker or dealer within the meaning of paragraph (4) or (5) of section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)), or an investment adviser within the meaning of section 202(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(11)). For purposes of this title, a corporation engaged in any such activities shall be deemed to be a depository institution securities affiliate only so long as it is owned or controlled by a savings and loan holding company. For purposes of ap plying section 4(c)(15) of the Bank Holding Company Act to this title "(i) the term 'depository institution holding company' means savings and loan holding company; and "(ii) the term 'depository institution' means 'insured institution'. "(L) 'bank holding company' and 'bank' shall have the meanings ascribed to them in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841).". S 2181 IS 37 1 (b) Section 408(c) of the National Housing Act (12 2 U.S.C. 1730a(c)) is amended to read as follows: 3 "(c)(1) Except as otherwise provided in this subsection, 4 no savings and loan holding company (except a unitary sav5 ings and loan holding company that acquires an insured insti6 tution pursuant to subsection (m) of this section) or subsidiary 7 thereof which is not an insured institution shall 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 “(A) for or on behalf of such subsidiary insured institution, engage in any activity or render any service for the purposes or with the effect of evading law or regulation applicable to such insured institution; or "(B) commence or continue, after two years from the date as of which it becomes a savings and loan holding company, any business activity other than those specified in paragraph (2) of this subsection except that such two-year period shall not apply to any company that acquires an insured institution between July 1, 1983, and the effective date of the Financial Services Competitive Equity Act: Provided, That any company that becomes subject, as a result of the Financial Services Competitive Equity Act, to the prohibitions of this subparagraph and that controlled an insured institution prior to July 1, 1983, may engage in any activity in which it was lawfully engaged, directly or through a subsidiary, on July 1, 1983, and in which S 2181 IS 38 1 it has been engaged continuously since July 1, 1983: 2 3 Provided, That any activities authorized for savings and loan holding companies may not be expanded and 4 any additional activities may not be commenced except in accordance with the requirements, conditions, and limitations applicable to savings and loan holding com 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 panies. The authority conferred by the preceding proviso, (A) shall terminate at such time as any covered savings and loan holding company (i) acquires a bank, or its subsidiary insured institution fails to qualify as a domestic building and loan association under section 7701(a)(19) of the Internal Revenue Code of 1954, or (ii) commences, directly or through a subsidiary, after July 1, 1983, any additional activities, other than those authorized pursuant to this Act to be permissible for savings and loan holding companies (except for the acquisition of a bank), in which it was not engaged on July 1, 1983, or (B) may be terminated by the Corporation, after opportunity for hearing, if it determines, having due regard for the purposes of this chapter, that such action is necessary to prevent conflicts of inter ests, unsound practices, or in the public interest. "(2) The prohibitions of subparagraph (1)(B) of this sub 24 section shall not apply to the following business activities S 2181 IS 30-927 0-84--4 |