A joint resolution to make technical corrections in certain banking and related statutes.
PL 97-457 (S.J.Res.271), enacted 01/12/1983

PUBLIC LAW 97-457—JAN. 12,1983 
96 STAT. 2507 
Public Law 97-467 
97th Congress 
Joint Resolution 
To make technical corrections in certain banking and related statutes. 
Resolved by the Senate and House of Representatives of the United 
States of 
America in Congress assembled. 
SECTION 1. (a) Section 13(cX5XA) of the Federal Deposit Insurance 
Act (12 U.S.C. 1823(cX5XA)), as added by section 111 of Public Law 
97-320, is amended by inserting "or dividends" after "interest". 
(b) The amendment made by subsection (a) shall be deemed to 
have taken effect upon the enactment of Public Law 97-320. 
SEC. 2. Section 5(oXl) of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464(oXl)), as added by section 112 of PubUc Law 97-320, is 
amended by inserting "examination," after "operation,". 
SEC. 3. The last sentence of section 26(a) of the Federal Deposit 
Insurance Act (12 U.S.C. 1831c(a)), as added by section 113(p) of 
Public Law 97-320, is amended by striking out "Depository Institu-
tions Amendments" and inserting in lieu thereof "Gam-St (jermain 
Depository Institutions Act". 
SEC. 4. Section 13(fKl) of the Federal Deposit Insurance Act (12 
U.S.C. 1823(fKl)), as added by section 116 of Public Law 97-320, is 
amended by striking out "paragraphs" both places it appears and 
inserting in lieu thereof "paragraph". 
SEC. 5. Section 406(cX3) of the National Housing Act (12 U.S.C. 
1729(cX3)), as amended by section 122(f) of Public Law 97-320, is 
amended by striking out 'paragraphs (1) or (2)" and inserting in lieu 
thereof "paragraph (1) or (2)". 
SEC. 6. Section 408(1) of the National Housing Act (12 U.S.C. 
1730a(l)) is amended by striking out "mergers or acquisitions 
approved under subsection (eX2)" and inserting in lieu thereof "any 
transaction approved under subsection (eX2) or (m)". 
SEC. 7. (a) Section 408(mXlXAXi) of the National Housing Act (12 
U.S.C. 1730a(mXlXAXi)), as added by section 123 of Public Law 
97-320, is amended by striking out "subsections (e) (2) and (1)" and 
inserting in lieu thereof "subsections (e) (2) and (1)". 
(b) Section 408(mXlXB)(iii) of such Act is amended by striking out 
"Board of Directors" each place it appears and inserting in lieu 
thereof "Federal Home Loan Bank Board". 
SEC. 8. The second sentence of section 17(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1437(a)), as amended by section 127 of 
Public Law 97-320, is amended— 
(1) by striking out "the Administrative Procedure Act" and 
inserting in lieu thereof "section 553 of title 5, United States 
Code"; and 
(2) by striking out "such Act" and inserting in lieu thereof 
"section 554 of such title". 
SEC. 9. (a) Section 406(fK5)(CXii) of the National Housing Act (12 
U.S.C. 1729(f)(5)(CXii)), as added by section 202 of Public Law 97-320, 
is amended by striking out "if' the second place it appears. 
Jan. 12,1983 
[S.J. Res. 271] " 
Certain banking 
and related 
statutes, 
technical 
corrections. 
Ante, p. 1469. 
Effective date. 
12 u s e 1823 
note. 
Ante, p. 1471. 
Ante, p. 1474. 
Ante, p. 1476. 
Ante, p. 1482. 
Ante, p. 1483. 
Ante, p. 1486. 
Ante, p. 1489. 
96 STAT. 2508 
PUBLIC LAW 97-457—JAN. 12, 1983 
Ante, p. 1489. 
Effective date. 
12 u s e 1729 
note. 
Ante, p. 1492. 
Effective date. 
12 u s e 1823 
note. 
Ante, p. 1496. 
12 u s e 1729, 
1823, 
1729 note. 
Ante, p. 1489. 
Ante, p. 1492. 
Ante, p. 1496. 
Ante, p. 1501. 
12 u s e 461. 
Mih-i .0 ,iilni\ 
Effective date. 
12 u s e 1464 
note. 
Ante, p. 1504. 
(b)(1) Section 406(f)(5)(I) of such Act (12 U.S.C. 1729(fX5)a)), as 
added by section 202 of Public Law 97-320, is amended by inserting 
"or dividends" after "interest". 
(2) The amendment made by paragraph (1) shall be deemed to 
have taken effect upon the enactment of Public Law 97-320. 
SEC. 10. (a) Section 13(i)(9) of the Federal Deposit Insurance Act 
(12 U.S.C. 1823(i)(9)), as added by section 203 of Public Law 97-320, is 
amended by inserting "or dividends" after "interest". 
(b) The amendment made by subsection (a) shall be deemed to 
have taken effect upon the enactment of Public Law 97-320. 
SEC. 11. Section 206 of Public Law 97-320 is amended to read as 
follows: 
"SUNSET PROVISION 
"SEC. 206. (a) Upon the expiration of three years after the date of 
enactment of this Act, section 406(f)(5) of the National Housing Act 
and section 13(i) of the Federal Deposit Insurance Act are repealed. 
"(b) The repeal by subsection (a) shall have no effect on any action 
taken or authorized pursuant to the amendments made by this title 
by or for a qualified institution while such amendments were in 
effect and while net worth certificates issued pursuant to these 
amendments are outstanding.". 
SEC. 12. The first sentence of section 5(b)(lXB) of the Home 
Owners' Loan Act of 1933 (12 U.S.C. 1464(bXl)(B)), as amended by 
section 312 of Public Law 97-320, is amended by inserting "may 
accept a demand account from itself and" after "An association". 
SEC. 13. Section 204 of the Depository Institutions Deregulation 
Act of 1980 (12 U.S.C. 3503), as amended by section 327 of Public 
Law 97-320, is amended by adding at the end thereof the following: 
"(4) The transitional adjustment provisions in section 19(b)(8) of 
the Federal Reserve Act, providing for the phase-in of reserve 
requirements, shall not apply to an account or accounts established 
pursuant to this subsection.". 
SEC. 14. (a)(1) Section 5(c)(3) of the Home Owners' Loan Act of 1933 
(12 U.S.C. 1464(c)(3)) is amended by adding at the end thereof the 
following: 
"(D) CONSTRUCTION LOANS WITHOUT SECURITY.—Investments 
not exceeding the greater of (i) the sum of its surplus, undivided 
it 
profits, and reserves, or (ii) 5 per centum of the assets of the 
li 
association, in loans the principal purpose of which is to provide 
financing with respect to what is or is expected to become 
@ primarily residential real estate where (I) the association relies 
li 
substantially for repayment on the borrower's general credit 
standing and forecast of income without other security, or (II) 
the association relies on other assurances for repayment, includ-
ing but not limited to a guaranty or similar obligation of a third 
party. Investments under this subsection shall not be included 
in any percentage of assets or other percentage referred to in 
this subsection.". 
(2) The amendment made by paragraph (1) shall be deemed to 
have taken effect upon the enactment of Public Law 97-320. 
(b) Section 5(r)(2XB) of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464(rX2XB)), as added by section 334 of Public Law 97-320, is 
amended by striking out "Depository Institutions Amendments" 
and inserting in lieu thereof "Garn-St Germain Depository Institu-
tions Act". 
PUBLIC LAW 97-457—JAN. 12, 1983 
96 STAT. 2509 
SEC. 15. Section 352 of Public Law 97-320, is amended by inserting 
"Home" after "Federal" the first place it appears. 
SEC. 16. Section 6(m) of the Federal Home Loan Bank Act (12 
U.S.C. 1426(m)), as added by section 355(b) of Public Law 97-320, is 
amended by striking out "Banks" and inserting in lieu thereof 
"banks or in connection with obtaining a charter from the Federal 
Home Loan Bank Board". 
SEC. 17. (a) Section 5200(b)(1) of the Revised Statutes (12 U.S.C. 84), 
as amended by section 401 of Public Law 97-320, is amended by 
inserting a comma before "to the extent specified by the Comptrol-
ler of the Currency". 
(b) Section ll(m) of the Federal Reserve Act (12 U.S.C. 248(m)) is 
amended by striking out in the first sentence "under paragraph (8) 
of section 5200 of the Revised Statutes, as amended (U.S.C., Supp. 
VII, title 12, sec. 84)" and inserting in lieu thereof "under section 
5200(cX4) of the Revised Statutes". 
SEC. 18. The last proviso of section 5136 Seventh of the Revised 
Statutes (12 U.S.C. 24 Seventh), as amended by section 404(b) of 
Public Law 97-320, is amended by striking out "10 per centum of 
its" and inserting in lieu thereof "10 per centum of the 
3.ssoci3.tion s 
SEC. 19. (a) Section 2(b) of the Act of May 1, 1886 (12 U.S.C. 30(b)), 
as amended by section 405(a) of Public Law 97-320, is amended by 
inserting "for a relocation outside such limits" after "stock of such 
association". 
(b) The first sentence of section 5154 of the Revised Statutes (12 
U.S.C. 35) is amended by striking out "with any name approved by 
the Comptroller of the Currency" and inserting in lieu thereof "with 
a name that contains the word 'national' ". 
SEC. 20. (a) Section 406 of Public Law 97-320 is amended to read as 
follows: 
"VENUE PROVISIONS 
"SEC. 406. The last sentence of section 5198 of the Revised Statutes 
(12 U.S.C. 94) is amended to read as follows: 'Any action or proceed-
ing against a national banking association for which the Federal 
Deposit Insurance Corporation has been appointed receiver, or 
against the Federal Deposit Insurance Corporation as receiver of 
such association, shall be brought in the district or territorial court 
of the United States held within the district in which that associ-
ation's principal place of business is located, or, in the event any 
State, county, or municipal court has jurisdiction over such an 
action or proceeding, in such court in the county or city in which 
that association's principal place of business is located.' ". 
(b) The amendment made by subsection (a) shall be deemed to 
have taken effect upon the enactment of Public Law 97-320. 
SEC. 21. Section 4(b)(1) of the Act of March 9, 1933 (12 U.S.C. 
95(bXl)), as amended by section 407 of Public Law 97-320, is 
amended by inserting "a State or" before "a State official". 
SEC. 22. Section 23A(d) of the Federal Reserve Act (12 U.S.C. 
371c(d)), as amended by section 410(b) of Public Law 97-320, is 
amended— 
(1) by striking out "except for the purchase of a low-quality 
asset which is prohibited" in paragraph (1) and inserting in lieu 
thereof "subject to the prohibition contained in subsection 
(a)(3)"; and 
Ante, p. 1507. 
Ante, p. 1508. 
Ante, p. 1508. 
Ante, p. 1511. 
Ante, p. 1512. 
.S£5i .;:; ,«yj% 
Ante, p. 1512. 
Effective date. 
12 u s e 94 note. 
Ante, p. 1513. 
Ante, p. 1515. 
•liti'-i. -
C
f ''ii%i't 
96 STAT. 2510 
PUBLIC LAW 97-457—JAN. 12, 1983 
' 
- *^^^ 
5
?
^
^ 
(2) by striking out "purchasing loans on a nonrecourse basis 
from affiliated banks" in paragraph (6) and inserting in lieu 
. tjd' 
v^k 
thereof ", subject to the prohibition contained in subsection 
(a)(3), purchasing loans on a nonrecourse basis from affiliated 
banks'. 
Ante, p. 1521. 
SEC. 23. (a) Section 412 of Public Law 97-320 is amended to read as 
follows: 
"VISITORIAL POWERS 
"SEC. 412. The fifth paragraph of section 5240 of the Revised 
Statutes (12 U.S.C. 484) is amended to read as follows: 
" '(A) No national bank shall be subject to any visitorial powers 
except as authorized by Federal law, vested in the courts of justice 
or such as shall be, or have been exercised or directed by Congress or 
by either House thereof or by any committee of Congress or of either 
House duly authorized. 
" '(B) Notwithstanding subpargigraph (A), lawfully authorized 
^ 
State auditors and examiners may, at reasonable times and upon 
reasonable notice to a bank, review its records solely to ensure 
compliance with applicable State unclaimed property or escheat 
laws upon reasonable cause to believe that the bank has feiiled to 
comply with such laws.' ". 
Effective date. 
(b) The amendment made by subsection (a) shall be deemed to 
12 use 484 note, have taken effect upon the enactment of Public Law 97-320. 
Ante. p. 1522. 
SEC. 24. Section 424(g) of Public Law 97-320 is amended by 
striking out "688" and inserting in lieu thereof "668". 
Ante, p. 1529. 
gEC. 25. Section 107(5XA)(i) of the Federal Credit Union Act (12 
U.S.C. 1757(5XAXi)), as amended bv section 507 of Public Law 
97-320, is amended by striking out Association" and inserting in 
lieu thereof "Administration". 
Ante, p. 1530. 
SEC. 26. Section 107(7) of the Federal Credit Union Act (12 U.S.C. 
1757(7)), as amended by section 514 of Public Law 97-320, is 
amended— 
(1) by striking out "and" before "(J)"; 
(2) by striking out "(L)" and inserting in lieu thereof "(K)"; 
and 
(3) by striking out "; and" at the end thereof and inserting in 
lieu thereof a period. 
Ante. p. 1530. 
SEC. 27. The next to the last sentence of section 124 of the Federal 
Credit Union Act (12 U.S.C. 1770), as amended by section 515 of 
Public 
Law 
97-320, 
is 
amended 
by 
inserting 
"of 
after 
"installation". 
Ante, p. 1532. 
SEC. 28. Section 113 of the Federal Credit Union Act (12 U.S.C. 
1761b), as amended by section 522 of Public Law 97-320, is 
amended— 
(1) by striking out "directions" and inserting in lieu thereof 
"direction"; 
(2) by striking out "unions" in paragraph (2) and inserting in 
lieu thereof "union"; 
'^ 
(3) by inserting "by" after "interest paid" in paragraph (9); 
ai 
and 
(4) by striking out "meetings" in paragraph (15) and inserting 
in lieu thereof "meeting". 
Ante, p. 1535. 
SEC. 29. Section 202(c) of the Federal Credit Union Act (12 U.S.C. 
1782(c)), as amended by section 529 of Public Law 97-320, is 
PUBLIC LAW 97-457—JAN. 12, 1983 
96 STAT. 2511 
amended by striking out "paragraphs (2) and (3)" in paragraph (1) 
and inserting in lieu thereof "para^aph (2)". 
SEC. 30. The first sentence of section 4(c)(8) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(cX8)), as amended by section 
Ante, p. 1536. 
601 of Public Law 97-320, is amended— 
(1) by inserting ": Provided, however, That such a bank hold-
ing company and its subsidiaries may not engage in the sale of 
life insurance or annuities except as provided in subparagraph 
(A), (B), or (C)" before "; or (G)"; and 
(2) by striking out the proviso at the end thereof. 
SEC. 31. Section 701(c) of Public Law 97-320 is amended— 
Ante, p. 1538. 
(1) by striking out "both"; and 
(2) by inserting ", on," after "prior to". 
SEC. 32, (a) Section l(bX4) of the Bank Service Corporation Act (12 Ante, p. 1540. 
U.S.C. 1861(bX4)), as amended by section 709 of Public Law 97-320, is 
amended— 
(1) by striking out "or another" after "insured bank," and 
inserting in lieu thereof "a"; and 
(2) by inserting before the final semicolon the following: ", or 
a financial institution the accounts or deposits of which are 
insured or guaranteed under State law and are eligible to be 
insured by the Federal Deposit Insurance Corporation, the Fed-
eral Savings and Loan Insurance Corporation, or the National 
Credit Union Administration Board". 
(b) The Bank Service Corporation Act, as amended by section 709 Ante, p. 1540. 
of Public Law 97-320, is amended— 
(1) by striking out "the Financial Institutions Supervisory Act 
of 1966 (12 U.S.C. 1818(b) et seq.)" in section 7(b) and inserting in 
lieu thereof the following: "section 8 of the Federal Deposit 
Insurance Act (12 U.S.C. 1818)"; and 
(2) by striking out "under this Act" in subsections (d) and (e) 
of section 4 and inserting in lieu thereof "under the law of the 
United States". 
SEC. 33. Section 414(a) of the National Housing Act (12 U.S.C. 12 use I730g. 
1730c) is amended by inserting "(which, for the purpose of this 
section, shall include a Federal association the deposits of which are 
insured by the Federal Deposit Insurance Corporation)" after 
"insured institution" the first place it appears. 
Approved January 12, 1983. 
LEGISLATIVE HISTORY—S. J. Res. 271: 
CONGRESSIONAL RECORD, Vol. 128 (1982): 
Dec. 16, considered and passed Senate. 
Dec. 21, considered and passed House, amended; Senate agreed to House 
amendments.