Qualified Thrift Lender Reform Act of 1991

Qualifed Thrift Lender Reform Act of 1991 - Amends the Home Owners' Loan Act (as in effect on July 1, 1991) with regard to the qualified thrift lender test to: (1) increase required liquidity requirements; (2) include among qualifying assets stock issued by Federal home loan banks, the Federal Home Loan Mortgage Corporation, or the Federal National Mortgage Association; (3) increase qualifying consumer assets; and (4) determine the required 70 percent thrift investment-portfolio investment ratio on a monthly (rather than daily or weekly) basis.

 
S 987 IS
102d CONGRESS
1st Session
S. 987
To amend the Home Owners' Loan Act to improve the qualified thrift lender
test, and for other purposes.
IN THE SENATE OF THE UNITED STATES
May 7 (legislative day, APRIL 25), 1991
Mrs. KASSEBAUM introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To amend the Home Owners' Loan Act to improve the qualified thrift lender
test, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Qualified Thrift Lender Reform Act of 1991'.
SEC. 2. ADJUSTMENT OF COMPLIANCE PERIODS FOR PURPOSES OF QUALIFIED THRIFT
LENDER TEST.
  Section 10(m)(1)(B) of the Home Owners' Loan Act (12 U.S.C. 1467a(m)(1)(B))
  (as in effect on July 1, 1991) is amended to read as follows:
  `(B) the savings association's qualified thrift investments continue to
  equal or exceed 70 percent of the savings association's portfolio assets
  on a monthly average basis in 9 out of every 12 months.'.
SEC. 3. INCREASE IN AMOUNT OF LIQUID ASSETS EXCLUDABLE FROM PORTFOLIO ASSETS.
  Section 10(m)(4)(B)(iii) of the Home Owners' Loan Act (12
  U.S.C. 1467a(m)(4)(B)(iii)) (as in effect on July 1, 1991) is amended by
  striking `10 percent' and inserting `20 percent'.
SEC. 4. ADDITIONAL INVESTMENTS INCLUDED IN DEFINITION OF QUALIFIED THRIFT
ASSETS.
  Section 10(m)(4)(C) of the Home Owners' Loan Act (12 U.S.C. 1467a(m)(4)(C))
  (as in effect on July 1, 1991) is amended--
  (1) by adding at the end of clause (ii) the following new subclause:
  `(VI) Shares of stock issued by any Federal home loan bank.'; and
  (2) by adding at the end of clause (iii) the following new clause:
  `(VII) Shares of stock issued by the Federal Home Loan Mortgage Corporation
  or the Federal National Mortgage Association.'.
 SEC. 5. PRUDENT DIVERSIFICATION OF ASSETS.
  (a) IN GENERAL- Section 10(m)(4)(C)(iii)(VI) of the Home Owners' Loan
  Act (12 U.S.C. 1467a(m)(4)(C)(iii)(VI)) (as in effect on July 1, 1991)
  is amended by striking `5 percent' and inserting `10 percent'.
  (b) TECHNICAL AND CONFORMING AMENDMENT- Section 10(m)(4)(C)(iv) of the Home
  Owners' Loan Act (12 U.S.C. 1467a(m)(4)(C)(iv)) (as in effect on July 1,
  1991) is amended by striking `15 percent' and inserting `20 percent'.