An act to clarify the treatment of international banking facility deposits for purposes of deposit insurance assessments and to remove certain limitations on the mortgage loan purchase authority of the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association.
PL 97-110 (H.R.4879), enacted 12/26/1981

PUBLIC LAW 97-110—DEC. 26, 1981 
95 STAT. 1513 
Public Law 97-110 
97th Congress 
An Act 
To clarify the treatment of international banking facility deposits for purposes of 
deposit insurance assessments and to remove certain limitations on the mortgage 
loan purchase authority of the Federal Home Loan Mortgage Corporation and the 
Federal National Mortgage Association. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
TITLE I—INTERNATIONAL BANKING FACILITY DEPOSIT 
INSURANCE ACT 
Dec. 26, 1981 
[H.R. 4879] 
International 
Banking Facility 
Deposit 
Insurance Act. 
SHORT TITLE 
SEC. 101. This title may be cited as the 
Facility Deposit Insurance Act", 
'International Banking 
INTERNATIONAL BANKING FACIUTY DEPOSITS 
SEC. 102. Section 3(1X5) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(1X5)) is amended to read as follows: 
"(5) such other obligations of a bank as the Board of Directors, 
after consultation with the Comptroller of the Currency and the 
Board of Governors of the Federal Reserve System, shall find and 
prescribe by regulation to be deposit liabilities by general usage, 
except that the following shall not be a deposit for any of the 
purposes of this Act or be included as part of the total deposits or 
of an insured deposit: 
"(A) any obligation of a bank which is payable only at an 
office of such bank located outside of the States of the United 
States, the District of Columbia, Puerto Rico, Guam, Ameri-
can Samoa, the Trust Territory of the Pacific Islands, and 
the Virgin Islands; and 
"(B) any international banking facility deposit, including 
an international banking facility time deposit, as such term 
is from time to time defined by the Board of Governors of the 
Federal Reserve System in regulation D or any successor 
regulation issued by the Board of Governors of the Federal 
R^rve System.". 
BRANCHES OF INSURED BANKS IN THE TRUST TERRITORY OF THE PACIFIC 
ISLANDS 
SEC. 103. (a) Section 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813) is amended— 
(1) in subsection (a), by inserting "the Trust Territory of the 
Pacific Islands," after "American Samoa," each place it appears 
therein; 
(2) in subsection (mXD, by inserting "of the Trust Territory of 
the Pacific Islands," after "American Samoa,"; and 
12 u s e 1811 
note. 
95 STAT. 1514 
PUBLIC LAW 97-110—DEC. 26, 1981 
(3) in subsection (o), by inserting "the Trust Territory of the 
Pacific Islands," after "American Samoa," each place it appears 
therein. 
(b) Section 7 of 
such Act (12 U.S.C. 1817) is amended— 
(1) in subsection (aX4), by inserting "the Trust Territory of the 
Pacific Islands," after "American Samoa,"; and 
(2) in subsection (bXSKB), by inserting "the Trust Territory of 
the Pacific Islands," after "American Samoa,". 
(c) Section ll(a)(2XA)(iv) of such Act (12 U.S.C. 1821(a)(2)(AXiv)) is 
amended— 
(1) by inserting "of the Trust Territory of the Pacific Islands," 
after "of American Samoa,"; and 
(2) by inserting "the Trust Territory of the Pacific Islands," 
after "Virgin Islands, American Samoa,". 
Mortgage 
TITLE II-MORTGAGE PURCHASE AMENDMENTS OF 1981 
Purchase 
Amendments of 
1981. 
SHORT TITLE 
1
2 use 1451 
SEC. 201. This title may be cited as the "Mortgage Purchase 
"°^^- 
Amendments of 1981". 
PURCHASES OF MORTGAGES MORE THAN ONE YEAR OLD 
SEC. 202. (a) The third sentence of section 305(aX2) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(aX2)) is 
amended to read as follows: "The Corporation may purchase a 
conventional mortgage which was originated more than one year 
prior to the purchase date only if the seller is the Federal Deposit 
Insurance Corporation, the Federal Savings and Loan Insurance 
Corporation, the National Credit Union Administration, or any other 
seller currently engaged in mortgage lending or investing activities.". 
(bXl) Section 305(aX2) of the Federal Home Loan Mortgage Corpo-
ration Act (12 U.S.C. 1454(aX2)) is amended by inserting after the 
third sentence thereof the following: "With respect to any transac-
tion in which a seller contemporaneously sells mortgages originated 
more than one year old prior to the date of sale to the Corporation 
and receives in payment for such mortgages securities representing 
undivided interests only in those mortgages, the Corporation shall 
not impose any fee or charge upon an eligible seller which is not a 
member of a Federal Home Loan Bank which differs from that 
imposed upon an eligible seller which is such a member.". 
1
2 use 1
4
5
4 
(2) The amendment made by paragraph (1) shall take effect on 
"°^- 
January 1, 1982, and shall apply to commitments entered into on or 
after such date. 
(c) The fourth sentence of section 302(bK2) of the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1717(bX2)) is amended to 
read as follows: "The Corporation may purchase a conventional 
mortgage which was originated more than one year prior to the 
purchase date only if the seller is the Federal Deposit Insurance 
Corporation, the Federal Savings and Loan Insurance Corporation, 
the National Credit Union Administration, or any other seller 
currently engaged in mortgage lending or investing activities.". 
PUBLIC LAW 97-110—DEC. 26, 1981 
95 STAT. 1515 
MORTGAGE LOAN PURCHASES FROM THE FEDERAL DEPOSIT INSURANCE 
CORPORATION AND THE NATIONAL CREDIT UNION ADMINISTRATION 
SEC. 203. Subsections (aXD and (b) of section 305 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454) are amended 
by inserting "the Federal Deposit Insurance Corporation, the 
National Credit Union Administration," after "Federal Savings and 
Loan Insurance Corporation," each place it appears. 
TITLE III—MISCELLANEOUS 
SEC. 301. Section 625(a) of the Depository Institutions Deregulation 
and Monetary Control Act of 1980 is amended to read as follows: 15 use 1602 
"SEC. 625. (a) Except as provided in section 608(b), the amendments 15 ygc 1607 
made by this title shall take effect upon the expiration of two years note. 
and six months after the date of enactment of this title.". 
SEC. 302. Section 206 of the Depository Institution Management 
Interlocks Act is amended to read as follows: 
1
2 use 3205. 
"SEC. 206. (a) A person whose service in a position as a management 
official began prior to the date of enactment of this title and who was 
not immediately prior to the date of enactment of this title in 
violation of section 8 of the Clayton Act is not prohibited by section 15 U
S
C 19. 
203 or section 204 of this title from continuing to serve in that J2 use 3202, 
ptosition for a period of ten years after the date of enactment of this ^2"^-
title. The appropriate Federal banking agency (as set forth in section 
209) may provide a reasonable period of time for compliance with this 1
2 use 3207. 
title, not exceeding 
fifteen 
months, aiter any change in circumstances 
which makes service described in the preceding sentence prohibited 
by this title, except that a merger, acquisition, increase in total 
assets, establishment of one or more offices, or change in manage-
ment responsibilities shall not constitute changes in circumstances 
which would make such service prohibited by section 203 or section 
204 of this title. 
"0)) Effective on the date of enactment of this title, a person who 
serves aa a management official of a company which is not a 
depository institution or a depository holding company and as a 
management official of a depositonr institution or a depository 
holding company is not prohibited m>m continuing to serve as a 
management official of that depository institution or depository 
holding company as a result of that company which is not a deposi-
tory institution or depository holding company becoming a diversi-
fied savings and loan holding company as that term is defined in 
section 408(a) of the National Housing Act. This subsection shall 1
2 use I730a. 
expire ten years after the date of 
enactment of this title.". 
Expiration. 
SEC. 303. Section 313 of the Depository Institutions Deregulation 
and Monetary Control Act of 1980 is amended to read as follows: 
94 Stat. I5i. 
"ALASKA USA FEDERAL CREDIT UNION 
"SEC. 313. The provisions of section 5 of the charter of the Alaska 
USA Federal Credit Union which would terminate the eligibility for 
membership in the Credit Union of the enroUees and employees of 
certain corporations shall not be effective.". 
SEC. 304. The fourth sentence of section 235(hXl) of the National 
Housing Act is amended— 
Ante, p. 407. 
(1) by inserting "(i)" after "except"; 
(2) by striking out "or" after "March 31, 1982," the second 
place it appears and inserting in lieu thereof "(ii)"; and 
95 STAT. 1516 
PUBLIC LAW 97-110—DEC. 26, 1981 
(3) by inserting before the period after "1974" the following: 
", or (lii) pursuant to other commitments issued on or before 
September 30, 1981, where housing under this section is to be 
developed on land which was municipally owned on Septem-
ber 30,1981, and where a local government contributes at least 
$1,000 per unit of funds obtained under title I of the Housing and 
42 use 5301. 
Community Development Act of 1974 and at least $2,000 per unit 
of 
additional funds to assist housing under this section". 
Approved December 26, 1981. 
LEGISLATIVE HISTORY—H.R. 4879: 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
Nov. 17, considered and passed House. 
Dec. 15, considered and passed Senate, amended. 
Dec. 16, House concurred in Senate amendments.