Financial Institutions Act

Financial Institutions Act - Title I: Payment of Interest on Deposit Accounts - States that the Federal Reserve Board may from time to time, after consulting with the Board of Directors of the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board, and the Secretary of the Treasury, prescribe rules governing the payment and advertisement of interest on deposits, including limitations on the rates of interest which may be paid by member banks on time and savings deposits.

States that eighteen months after the enactment of this Act, the Board shall prescribe interest rate limitations on deposits in all member banks which will begin to eliminate all differential rates among all depository institutions.

States that the authority to limit the rates of interest or dividends shall only be exercised by the Board for five years and six months after the enactment of this Act. Directs the Board of Directors of the Federal Deposit Insurance Corporation to prohibit the payment of interest or dividends on demand deposits in insured nonmember banks.

Requires each depository institution which pays interest on deposits to disclose annually and at the time any earnings report is made either in person or by mailing to the depositor's last known address, the amount of earnings paid.

Title II: Expanded Deposit Liability Powers and Reserves - States that every member bank shall maintain reserves against its deposits in such rations as shall be determined by the affirmative vote of not less than four members of the Board. Directs the Federal Home Loan Bank Board to make and promulgate regulations governing the transfer of funds and charges therefor among the Federal Home Loan Banks and members thereof and to exercise the functions of a clearinghouse for such banks or designate any such bank to exercise such function.

Title III: Lending and Investment Powers - Authorizes Savings and Loan Associations, without limitation except as provided by the Federal Home Loan Bank Board, to invest in, sell, or service the following loans, including obligations and advances of credit, and investments and interests therein: (1) consumer loans; (2) loans secured by or make for the alteration, repair, or improvement of real property; (3) loans made to finance construction; (4) loans made for community welfare and development; and (5) commercial paper and corporate debt securities.

Title IV: Charters for Thrift Institutions - Provides that in order to provide thrift institutions in which people may invest their funds and in order to provide for the financing of homes and other goods and services which people may require, the Federal Home Loan Bank Board is authorized to provide for the organization, incorporation, conversion, examination, operation, and regulation, under such rules, regulations, or orders as it may prescribe, of associations which may be known as Federal Savings and Loan Associations or Federal Savings Banks. States that in issuing charters therefor, the Board shall give primary consideration to the best practices of thrift institutions and the needs of the communities to be served. Redesignates the Federal Savings and Loan Insurance Corporation as the Federal Savings Insurance Corporation. Directs the Corporation to insure the accounts of institutions eligible for insurance. Provides that the Corporation shall be under the direction of the Federal Home Loan Bank Board and is authorized to issue such rules, regulations, and orders as it may deem necessary or appropriate to enable it to administer and carry out the purposes of this title and to require compliance therewith and prevent evasions thereof.

Authorizes any State mutual institution and any credit union to convert to a Federal mutual association, and any State stock institution to convert to a Federal stock association, upon a vote of at least a majority of the votes cast at a meeting of its members or shareholders properly called to consider such action.

States that in issuing rules, regulations, and orders to implement this paragraph, the Board shall take action to assure that accurate and adequate disclosure of the terms and effects of plans of conversion is provided to account holder members and other purchases of capital stock in converted associations.

Provides that any party aggrieved by final action of the Board under this subsection may obtain review thereof by filing in the court of appeals of the United States for the circuit in which the home office of the association seeking to convert is located, or in the United States Court of Appeals for the District of Columbia Circuit, within thirty days after the date of service upon the said association of the document reflecting such action, a written petition praying that the action of the Board be modified, terminated, or set aside.

Title V: Credit Unions - States that the Congress finds that the stability of credit unions will encourage savings and will be promoted by establishing a National Credit Union Administration Discount Fund to provide funds to meet emergency and temporary liquidity problems of its members.

Establishes the National Credit Union Adminstration Discount fund. Provides that the management of the Discount Fund shall be vested in the Administrator. States that the Board of the National Credit Union Administration shall also be the Board for the Discount Fund.

Stipulates that in order to facilitate the formation of the Discount Fund the Secretary of the Treasury is authorized to advance an amount not in excess of $25,000 to be utilized for the initial organizational and operating expenses of the Discount Fund.

Provides that each credit union which is chartered after the enactment of this title and which is accepted for membership in the Discount Fund within one year from the date it is chartered shall pay $25 in cash to be credited to its purchase of stock in the Discount Fund. States that at the expiration of one year from the date of its charter, a newly-organized credit union which is accepted for membership in the Discount Fund shall subscribe for stock in the Discount Fund in an amount equal to one-half of 1 percent of the paid-in and unimpaired capital and surplus, but in no event shall this amount be less than $50.

Authorizes the Administrator to make advances to members of the Discount Fund upon such security as he may prescribe.

Requires the Administrator to maintain an integral set of accounts of the Discount Fund which shall be audited annually by the General Accounting Office.

States that, not later than ninety days after the close of each calendar year, the Administrator shall prepare and submit to the President and to the Congress a full report of the activities of the Discount Fund for each previous fiscal year.

States that the Discount Fund, its property, its franchise, capital, reserves, surplus, security holdings, and other funds, and its income shall be exempt from all taxation now and hereafter imposed by the United States or by any State or local taxing authority; except that any real property and tangible personal property of the Discount Fund shall be subject to Federal, State, and local taxation to the same extent according to its value as other such property is taxed.

Title VI: Government Insured and Guaranteed Mortgage Loans - States that interest rates for mortgages and loans insured under the National Housing Act shall be as agreed to by the mortgagee and mortgagor, or lendor and borrower, unless the Secretary determines that such rate is excessive in view of the current interest rates in the mortgage or loan market areas involved.