Related Organizations

Savings Associations [12 USC 1823(k)]

Section 13 of the Federal Deposit Insurance Act, as amended by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, authorizes a bank to acquire a savings association upon determination that severe financial conditions exist and that such an acquisition would lessen the risk to the insurance fund.

A thrift subject to this provision may be held by a national bank as a subsidiary. The OCC considers such a subsidiary to be a statutory subsidiary.

While prior approval is not required, written notice must be provided to the appropriate OCC office within 10 days after a national bank makes such an investment. (See 12 CFR 5.36 and the "Investment in Subsidiaries and Equities" booklet of the Comptroller’s Licensing Manual .)

National banks may also hold thrifts as financial subsidiaries, under separate authority, with no financial emergency requirement.

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