An Act to extend certain laws relating to the payment of interest on time and savings deposits, to prohibit depository institutions from permitting negotiable orders of withdrawal to be made with respect to any deposit or account on which any interest or dividend is paid, to authorize Federal savings and loan associations and national banks to own stock in and invest in loans to certain State housing corporations, and for other purposes.
PL 93-100 (H.R.6370), enacted 08/16/1973

342 
PUBLIC LAW 93-100-AUG. 16, 1973 
[87 STAT. 
Public Law 93-100 
August 16, 1973 
'[H. R. 6370] 
Financial insti-
tutions. 
Regulation. 
Ante, p. 147. 
AN ACT 
To extend certain laws relating to the payment of interest on time and savings 
deposits, to prohibit depository institutions from permitting negotiable orders 
of withdrawal to be made with respect to any deposit or account on which 
any interest or dividend is paid, to authorize Federal savings and loan asso-
ciations and national banks to own stock in and invest in loans to certain 
State housing corporations, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of Americain Congress asserrihled, 
EXTENSION OF AUTHORITY FOR T H E FLEXIBLE REGULATION OF INTEREST 
RATES ON DEPOSITS AND SHARE ACCOUNTS I N FINANCIAL INSTITUTIONS 
SECTION 1. Section 7 of the Act of September 21,1966 (Public Law 
89-597), is amended by striking out "August 1, 1973" and inserting 
in lieu thereof "December 31,1974". 
'•Depository 
institution." 
64 Stat. 873; 
80 Stat. 1046. 
12 u s e 1813. 
48 Stat. 1255; 
83 Stat. 3 75. 
12 u s e 1724. 
" S t a t e " . 
Penalty. 
PROHIBITION ON CERTAIN ACTIVITIES BY DEPOSITORY INSTITUTIONS 
SEC. 2. (a) No depository institution shall allow the owner of a 
deposit or account on which interest or dividends are paid to make 
withdrawals by negotiable or transferable instruments for the purpose 
of making transfers to third parties, except that such withdraw^als 
may be made in the States of Massachusetts and New Hampshire. 
(b) For purposes of this section, the term "depository institution" 
means— 
(1) any insured bank as defined in section 3 of the Federal 
Deposit Insurance Act; 
(2) any State bank as defined in section 3 of the Federal Deposit 
Insurance Act; 
(3) any mutual savings bank as defined in section 3 of the 
Federal Deposit Insurance Act; 
(4) any savings bank as defined in section 3 of the Federal 
Deposit Insurance Act; 
(5) any insured institution as defined in section 401 of the 
National Housing Act; and 
(6) any building and loan association or savings and loan 
association organized and operated according to the laws of the 
State in which it is chartered or organized; and, for purposes of 
this paragraph, the term "State" means any State of the United 
States, the District of Columbia, any territory of the United 
States, Puerto Rico, Guam, American Samoa, or the Virgin 
Islands. 
(c) Any depository institution which violates this section shall be 
fined $1,000 for each violation. 
64 Stat. 893; 
83 Stat. 3 72, 3 74. 
EXTENSION OF AUTHORITY OF FEDERAL DEPOSIT INSURANCE 
CORPORATION 
OVER I N T E R E S T RATES PAID ON DEPOSITS BY NONINSURED BANKS 
SEC. 3. Section 18(g) of the Federal Deposit Insurance Act (12 
U.S.C. 1828 (g)) is amended by— 
(1) inserting in the second sentence thereof "or dividends" 
immediately after "the payment and advertisement of interest"; 
and 
(2) striking out in the tenth sentence thereof "(1)", and by 
further striking out in such sentence ", and (2) there does not 
exist under the laws of such State a bank supervisory agency 
with authority comparable to that conferred by this subsection, 
87 STAT. ] 
PUBLIC LAW 93-100-AUG. 16, 1973 
343 
including specifically the authority to regulate the rates of interest 
and dividends paid by such noninsured banks on time and savings 
deposits, or if such agency exists it has not issued regulations in 
the exercise of that authority". 
CONVERSION o r MUTUAL SAVINGS AND LOAN ASSOCIATIONS 
INTO STOCK ORGANIZATIONS 
SEC. 4. Section 402 of the National Housing Act (12 U.S.C. 1725) 7^^l^ll^'2oo^^' 
is amended by adding at the end thereof the following new subsection: 
"(j) (1) Except as provided in paragraph (2), until June 30, 1974, 
the Corporation shall not approve, under regulations adopted pursuant 
to this title or section 5 of the Home Owners' Loan Act of 1933, by infra. 
order or otherwise, a conversion from the mutual to the stock form of 
organization involving or to involve an insured institution, including 
approval of any application for such conversion pending on the date 
of enactment of this subsection, except that this sentence shall not 
be deemed to limit now or hereafter the authority of the Corporation 
to approve conversions in supervisory cases. The Corporation may by 
rule, regulation, or otherwise and under such civil penalties (which 
shall be cumulative to any other-remedies) as it may prescribe take 
whatever action it deems necessary or appropriate to implement or 
enforce this subsection. 
"(2) After December 31, 1973, the Corporation may approve any 
study application filed prior to May 22, 1973, pursuant to regulations 
in effect and adopted pursuant to this title or section 5 of the Home 
Owners' Loan Act of 1933." 
AUTHORITY FOR FEDERAL SAVINGS AND LOAN INSTITUTIONS AND NATIONAL 
BANKS TO INVEST I N STATE HOUSING CORPORATIONS 
SEC. 5. (a) The Congress finds that Federal savings and loan a^ssocia-
tions and national banks should have the authority to assist in financ-
ing the organization and operation of any State housing corporation 
established under the laws of the State in which the corporation will 
carry on its operations. It is the purpose of this section to provide a 
means whereby private financial institutions can assist in providing 
housing, particularly for families of low- or moderate-income, by 
purchasing stock of and investing in loans to any such State housing 
corporation situated in the particular State in which the Federal 
savings and loan association or national bank involved is located. 
(b) Section 5(c) of the Home Owners' Loan Act of 1933 (12 U.S.C. 
1464(c)) is amended by adding at the end thereof the following new 
48 stat. i32; 
paragraph: 
^^ ^*°*" ^^°' 
"Subject to regulation by the Board but without regard to any 
other provisions of this subsection, any such association whose general 
reserves, surplus, and undivided profits aggregate a sum in excess of 
5 per centum of its withdrawable accounts is authorized to invest in, 
to lend to, or to commit itself to lend to any State housing corporation 
incorporated in the State in which the home office of such association 
is situated, in the same manner and to the same extent as the statutes 
of such State authorize a savings and loan association organized under 
the laws of such State to invest in, to lend to, or commit itself to lend 
to such State housing corporation, but loans and loan commitments 
under this sentence shall be subject to appropriate limitations pre-
scribed by the Board, and no association may make any investment, 
other than loans and loan commitments, under this sentence if its 
344 
PUBLIC LAW 93-100-AUG. 16, 1973 
[87 STAT. 
Federal super-
vision. 
Information, 
availability. 
Definitions. 
48 Stat. 1255. 
12 u s e 1724. 
64 Stat. 873. 
12 u s e 1811 
note. 
aggregate outstanding direct investment under this sentence, deter-
mined as prescribed by the Board, would thereupon exceed one-fourth 
of 1 per centum of its assets." 
(c) Paragraph seventh of section 5136 of the Revised Statutes (12 
U.S.C. 24) is amended by adding at the end thereof the following: 
"Notwithstanding any other provision of this paragraph, the associa-
tion may purchase for its own account shares of stock issued by any 
State housing corporation incorporated in the State in which the 
association is located and may make investments in loans and com-
mitments for loans to any such corporation: Provided^ That in no 
event shall the total amount of such stock held for its own account and 
such investments in loans and commitments made by the association 
exceed at any time 5 per centum of its capital stock actually paid in 
and unimpared plus 5 per centum of its unimpaired surplus fund." 
(d) (1) The Federal Savings and Loan Insurance Corporation with 
respect to insured institutions, the Board of Governors of the Federal 
Eeserve System with respect to State member insured banks, and the 
Federal Deposit Insurance Corporation with respect to State non-
member insured banks shall by appropriate rule, regulation, order, 
or otherwise regulate investment in State housing corporations. 
(2) A State housing corporation in which financial institutions 
invest under the authority of this section shall make available to the 
appropriate Federal supervisory agency referred to in paragraph 
(1) such information as may be necessary to insure that investments 
are properly made in accordance with this section. 
(e) For the purposes of this section and any Act amended by this 
section— 
(1) The term "insured institution" has the same meaning as 
in secton 401(a) of the National Housing Act. 
(2) The terms "State member insured banks" and "State non-
member insured banks" have the same meaning as when used 
in the Federal Deposit Insurance Act. 
(3) The term "State housing corporation" means a corporation 
established by a State for the limited purpose of providing housing 
and incidental services, particularly for families of low or 
moderate income. 
(4) The term "State" means any State, the District of Columbia, 
Guam, the Commonwealth of Puerto Rico, and the Virgin Islands. 
75 Stat. 483; 
79 Stat. 508. 
Primary re-
serves, establish-
ment. 
Rules and 
regulations. 
P R E M I U M PAYMENTS BY INSURED SAVINGS AND LOAN ASSOCIATIONS TO T H E 
FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION 
SEC. 6. The text of section 404 of the National Housing Act (12 
U.S.C. 1727) is amended to read as follows: 
"SEC. 404. (a) (1) The Corporation shall establish a primary 
reserve which shall be the general reserve of the Corporation and a 
secondary reserve to which shall be credited the amounts of the pre-
payments made by insured institutions pursuant to former provisions 
of subsection (d) and the credits made pursuant to the first sentence 
of subsection (e). 
"(2) The Corporation may accomplish the purposes and provisions 
of this section by rules, regulations, orders, or otherwise as it may 
consider necessary or appropriate. 
"(b)(1) 
Each institution whose application for insurance is 
approved by the Corporation shall pay to the Corporation, in such 
manner as it shall prescribe, a premium for such insurance equal to 
one-twelfth of 1 per centum of the total amount of all accounts of the 
insured members of such institution. Such premium shall be paid at 
87 STAT.] 
PUBLIC LAW 93-100-AUG. 16, 1973 
345 
the time the certificate is issued by the Corporation under section 403, 
and thereafter annually, except that under regulations prescribed by 
the Corporation such premium may be paid semiannually. 
"(2) If, at the close of any December 31, the primary reserve equals 
or exceeds 2 per centum of the total amount of all accounts of insured 
members of all insured institutions as of such close, no premium under 
paragraph (1) of this subsection shall be payable by any insured insti-
tution with respect to its premium year beginning during the year 
commencing on May 1 next succeeding such December 31, except that 
the foregoing provisions of this sentence shall not be applicable to any 
insured institution with respect to any of the twenty premium years 
beginning with the premium year commencing with the date on which 
such certificate is issued. 
"(c) The Corporation is further authorized to assess against each 
insured institution additional premiums for insurance until the 
amount of such premiums equals the amount of all losses and expenses 
of the Corporation; except that the total amount so assessed in any 
one year against any such institution shall not exceed one-eighth of 1 
per centum of the total amount of the accounts of its insured members. 
"(d) (1) The Corporation shall not, on or after the date of enact-
ment of this sentence, accept or receive further payments in the nature 
of prepayments of future premiums as was formerly required by this 
subsection (including any such payments which have accrued or are 
payable under such former provisions). When no insured institution 
has any pro rata share of the secondary reserve, other than any such 
share immediately payable to it, the Corporation may take such steps 
as it may deem appropriate to close out and discontinue the secondary 
reserve. 
"(2) The Corporation may provide for the adjustment of payments 
made under former provisions of this subsection or made or to be 
made under subsections (b) and (c) of this section in cases of merger 
or consolidation, transfer of bulk assets or assumption of liabilities, 
and similar transactions, as defined by the Corporation for the pur-
poses of this paragraph. 
"(e) The Corporation shall credit to the secondary reserve, as of 
the close of each calendar year a return on the outstanding balances of 
the secondary reserve, during such calendar year, as determined by 
the Corporation, at a rate equal to the average annual rate of return 
to the Corporation during the year ending at the close of November 30 
of such calendar year, as determined by the Corporation, on the invest-
ments held by the Corporation in obligations of, or guaranteed as to 
principal and interest by, the United States. Except as provided in 
subsections (f) and (g), the secondary reserve shall be available to 
the Corporation only for losses of the Corporation and shall be so 
available only to such extent as other accounts of the Corporation 
which are available therefor are insufficient for such losses. No right, 
title, or interest of any institution in or with respect to its pro rata 
share of the secondary reserve shall be assignable or transferable 
whether by operation of law or otherwise, except to such extent as the 
Corporation may provide for transfer of such pro rata share in cases 
of merger or consolidation, transfer of bulk assets or assumption of 
liabilities, and similar transactions, as defined by the Corporation for 
purposes of this sentence. 
"(f) If (i) the status of an insured institution as an insured insti-
tution is terminated pursuant to any provision of section 407 or the 
insurance of accounts of an insured institution is otherwise terminated, 
(ii) a conservator, receiver, or other legal custodian is appointed for 
Assessments. 
Prepayments, 
prohibition. 
Payment adjust-
ments. 
346 
PUBLIC LAW 93-100-AUG. 16, 1973 
[87 STAT. 
an insured institution under the circumstances and for the purpose 
set forth in subsection (d) of section 401, or (iii) the Corporation 
makes a determination that for the j)urposes of this subsection an 
insured institution has gone into liquidation, the Corporation shall 
pay in cash to such institution its pro rata share of the secondary 
reserve, in accordance with such terms and conditions as the Corpora-
tion may prescribe, or, at the option of the Corporation, the Corpora-
tion may apply the whole or any part of the amount which would 
otherwise be paid in cash toward the payment of any indebtedness or 
obligation, whether matured or not, of such institution to the Corpora-
tion, then existing or arising before such payment in cash: Provided^ 
That such payrnent or such application need not be made to the extent 
that the provisions of the exception in the last sentence of subsection 
(e^ are applicable. 
"(g) If, at the close of December 31 in any year after 1971, the 
aggregate of the primary reserve and the secondary reserve equals 
or exceeds li/4 per centum of the total amount of all accounts of 
insured members of all insured institutions but the primary reserve 
does not equal or exceed 2 per centum of such base, each insured insti-
tution's pro rata share of the secondary reserve shall, during the year 
beginning with May 1 next succeeding such close, be used, to the extent 
available, to discharge such institution's obligation for its premium 
under subsection (b) for the premium year beginning in such year, 
but only to the extent of such percentage, to be the same for all insured 
institutions and to be not less than 30 nor more than 70 per centum 
of such premium, as the Corporation may determine; and the use of 
such pro rata shares as provided in this sentence shall continue unless 
and until the next sentence or the last sentence of this subsection shall 
become operative. If, at the close of any December 31 occurring before 
the last sentence of this subsection shall become operative, the aggre-
gate of the primary reserve and the secondary reserve is not at least 
equal to iy± per centum of the total amount of all accounts of insured 
members of all insured institutions, the use of any insured institution's 
pro rata share of the secondary reserve under the first sentence of this 
subsection shall terminate with respect to its premium under sub-
section (b) for the premium year beginning during the calendar year 
commencing on May 1 next succeeding such December 31, and such 
termination shall continue unless and until the first sentence of this 
subsection shall become operative. If, at the close of any December 31, 
the primary reserve equals or exceeds such 2 per centum, the Corpora-
tion shall, at such time (which shall be the same for all insured institu-
tions and shall not be later than May 1 next succeeding such close) and 
in such manner as the Corporation shall determine, pay in cash to 
each insured institution its pro rata share of the secondary reserve. 
Deposit calls. 
u^j^^ (]^^ Each Insured institution shall make such deposits in the 
Corporation as may from time to time be required by call of the 
Federal Home Loan Bank Board. Any such call shall "be calculated 
by applying a specified percentage, which shall be the same for all 
insured institutions, to the total amount of all withdrawable or repur-
chasable shares, investment certificates, and deposits in each insured 
institution. No such call shall be made unless such Board determines 
that the total amount of such call, plus the outstanding deposits pre-
viously made pursuant to such calls, does not exceed 1 per centum 
of the total amount of all withdrawable or repurchasable shares, 
investment certificates, and deposits in all insured institutions. For 
the purposes of this subsection, the total amounts hereinabove referred 
to snail be determined or estimated by such Board or in such manner 
as it may prescribe. 
87 STAT. ] 
PUBLIC LAW 93-100-AUG. 16, 1973 
347 
"(2) The Corporation shall credit as of the close of each calendar 
year, to each deposit outstanding at such close, a return on the out-
standing balance, as determined by the Corporation, of such deposit 
during such calendar year, at a rate equal to the average annual rate 
of return, as determined by the Corporation, to the Corporation dur-
ing the year ending at the close of November 30 of such calendar year, 
on the investments held by the Corporation in obligations of, or guar-
anteed as to principal and interest by, the United States. 
"(3) The Corporation in its discretion may at any time repay all 
such deposits, or repay pro rata a portion of each of such deposits, in 
such manner and under such procedure as the Corporation may pre-
scribe. Any procedure for sucn pro rata repayment may provide for 
total repayment of any deposit, if total repayment of any and all 
deposits of equal or smaller amount is likewise provided for. 
"(4) The provisions of subsection (f) of this section and of the last 
sentence of subsection (e) of this section shall be applicable to deposits 
under this subsection, and for the purposes of this subsection the refer-
ences in such subsection (f) and such last sentence to the prepay-
ments and the pro rata shares therein mentioned shall be deemed 
instead to be references respectively to the deposits under this subsec-
tion and the pro rata shares of the holders thereof, and the I'eference 
in such subsection (f) to that subsection shall be deemed instead to be 
a reference to this subsection." 
Deposit 
credits. 
Repayment. 
STATE TAXATION OF FEDERALLY INSURED FINANCIAL 
INSTITUTIONS 
SEC. 7. (a) This section may be cited as the "State Taxation of 
citation o
f title. 
Depositories Act". 
(b) The Congress finds that the national goals of fostering an effi-
cient banking system and the free flow of commerce among the States 
will be furthered by clarifying the principles governing State taxa-
tion of interstate transactions of banks and other depositories. Appli-
cation of taxes measured by income or receipts, or other "doing 
business" taxes, in States other than the States in which depositories 
have their principal offices should be deferred until such time as 
uniform and equitable methods are developed for determining juris-
diction to tax and for dividing the tax base among States. 
(c) With respect to any taxable year or other taxable period begin-
ning on or after the date of enactment of this section and before Jan-
uary 1,1976, no State or political subdivision thereof may impose any 
tax measured by income or receipts or any other "doing business" tax 
on any insured depository not having its principal office w^ithin such 
State. 
(d) For the purpose of this section— 
Definitions. 
(1) The term "insured depository" means any bank the deposits 
of which are. insured under the Federal Deposit Insurance Act, 
any institution the accounts of which are insured by the Federal 
Savings and Loan Insurance Corporation, or any thrift and home 
financing institution which is a member of a Federal home loan 
bank. 
(2) The term "State" means any of the several States of the 
United States, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, and American Samoa. 
(e) (1) The Advisory Commission on Intergovernmental Relations 
shall make a study of all pertinent matters relating to the application 
of State "doing business" taxes on out-of-State commercial banks, 
mutual savings banks, and savings and loan associations. Such study 
shall include recommendations for legislation which will provide 
equitable State taxation of out-of-State commercial banks, mutual 
348 
PUBLIC LAW 93-101-AUG. 16, 1973 
[87 STAT. 
Report to 
Congress. 
Appropriation. 
Effective date. 
savings banks, and savings and loan associations. Such recommenda-
tions shall include, but shall not be limited to, the matter of the proper 
allocation, apportionment, or other division of tax bases and such other 
matters relating to the question of multistate taxation of commercial 
banks, mutual savings banks, and savings and loan associations as the 
Commission shall determine to be pertinent. In conducting the study, 
the Commission shall consult with the Secretary of the Treasury, the 
Federal Reserve Board, the Federal Deposit Insurance Corporation, 
the Federal Home Loan Bank Board, appropriate State banking and 
taxing authorities, and others as needed. 
(2) The Commission shall make a report to the Congress of the 
results of its study and recommendations not later than December 31, 
1974. 
(3) There are authorized to be appropriated to the Commission 
such sums as may be necessary to carry out the provisions of this 
subsection. 
SEC. 8. The provisions of this Act shall take effect on the thirtieth 
day after the date of its enactment, except that the amendments made 
by sections 1 and 5 shall take effect on the date of enactment of 
this Act. 
Approved August 16, 1973. 
August 16, 1973 
[H. R. 3630] 
Public Law 93-101 
AN ACT 
To extend until Septeml>er 3(), 1975, the suspension of duty on certain dyeinj? 
sind tanning pnxinctts and to include logwood among such products. 
Dyeing and 
tanning products. 
Duty suspen-
sion, extension. 
77A Stat. 443; 
84 Stat. 830. 
Effective date. 
84 Stat. 284. 
19 u s e 1514. 
He it eiuwted hy the Senate and House of RepresentativeH of the 
Vnlted l^taten of America hi Congress assembled., That item 907.80 
of the Appendix to the Tariff' Schedules of the United States (19 
I ".S.(l 1202) is amended— 
(1) by striking out "I'anaigre," and inserting in lieu thereof 
•'I^ogwood, canaigre,"; 
(2) by inserting "470.15," immediately before "470.23,-'; and 
(3) by striking out "9/30/72" and inserting in lieu thereof 
"9/30/75". 
SEC. 2. (a) The amendments nmde by the first section of this Act 
shall apply with respec>t to articles enter-ed, or withdrawn fr^om war-e-
house, for consumption on or- after the date of the enactment of 
this Act. 
(b) ITpon request thervfor tiled with the customs officer concerned 
on or befor-e the sixtieth day after the date of the enactment of this 
Act, the entry or withdrawal of any article— 
(1) which was made after September- 30, 1972, and befor*e the 
date, of the enactment of this Act, and 
(2) Avnth i-espect to which there would have been no duty if 
the amendments made by the first se(tion of this Act applied to 
such entry or withdrawal, 
shall, notwithstanding the provisions of section 514 of the Tariff' Act 
of 1930 or any other provision of law, be liquidated or reliquidated 
as though such entry or withdriaAval had been made on ih^ date of 
the. enactment of this Act. 
Approved August 16, 1973.