Financial Institutions Act

Financial Institutions Act - Title I: Payment of Interest on Deposit Accounts - Sets forth definitions of terms used in the Banking Act of 1933.

Provides, under the Federal Reserve Act and other specified Acts, that interest rate limitations shall be prescribed on deposits in all member banks and institutions which will begin to eliminate all differential rates among all depository institutions.

Makes conforming amendments to specified Acts with respect to the definition of the terms "depository institution" and "negotiable order of withdrawal account."

Provides that depository institutions which pay interest on deposits shall make available to any individual or corporation, at a time such funds are placed in a deposit on which interest is paid and at the time funds are initially placed in an interest-bearing deposit, specified information with respect to all types of interest-bearing deposit accounts, including: (1) the annual percentage rate; (2) the number of times each year earnings are compounded; (3) any charges made against deposits; and (4) any terms or conditions which increase or reduce the rate of earnings payable.

Requires that in any advertisement, which includes annual percentage yield, the annual percentage rate shall also be disclosed. Sets forth additional regulations governing advertisements, announcements or solicitations.

Imposes liabilities for failure by any depository institution to disclose to any despositor any information required under this title.

Title II: Expanded Deposit Liability Powers and Reserves - Enumerates limitations within which every member bank, under the Federal Reserve Act, shall maintain reserves against its deposits. Empowers banks to offer savings accounts and negotiable order of withdrawal accounts to all customers.

Requires all federally chartered institutions and all state chartered institutions which are members of the Federal Reserve System or the Federal Home Loan Bank System to maintain reserves against deposits in demand and negotiable order of withdrawal accounts in a form and amount prescribed by the Federal Reserve Board after consultation with the Federal Home Loan Bank Board.

Title III: Lending and Investment Powers - Authorizes associations, under the Home Owners' Loan Act, to invest in, sell, or service the following loans: (1) consumer loans; (2) loans secured by or made for the alteration, repair, or improvement of, real property such as may be made by a national banking association; (3) loans made to finance construction; (4) equity or debt securities for, or real estate for, or loans made for, community welfare where the project is of a civic nature and not exclusively private; and (5) commercial paper and corporate debt securities.

Grants additional authority to the Federal Reserve Board to define assets eligible for discount, and to the Federal Home Loan Bank Board to define the types of assets eligible as collateral for Federal Home Loan Bank advances to thrift institutions.

Title IV: Charters for Thrift Institutions - Authorizes stock thrift institutions at the Federal level. Empowers the Federal Home Loan Bank Board to charter stock thrift institutions to be called either Federal Savings and Loan Associations or Federal Savings Banks.

Provides that federally chartered and state chartered mutual institutions may convert to Federal stock institutions and federally chartered mutual institutions may convert to State stock institutions, subject to approval of the Federal Home Loan Bank Board.

Title V: Credit Unions - Makes technical and conforming amendments to specified Acts. Permits, with the approval of the Administrator of the National Credit Union Administration, loan rates to be more than the present statutory 1 percent per month.

Establishes a Central Discount Fund for federally- or State-insured credit unions to provide funds to meet emergency and temporary liquidity problems and to be administered by the Administrator of the National Credit Union Administration. Prescribes operations governing the Fund, including: (1) operation of the Board for the Fund; (2) initial expenses; (3) capitalization of the Fund; (4) newly organized credit unions; and (5) powers in administering the Fund.

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

Title VII: To Provide for the Uniform Application of the Tax Laws to all Financial Institutions and a Credit for Interest from Qualifying Real Property Loans - Uniform Tax Treatment of Financial Institutions Title - Sets forth provisions relating to the definition of a bank and reserves for losses on loans of banks. Prescribes additional rules of general application to banking institutions, including: (1) foreclosure on property securing loans; (2) distributions to shareholders; (3) a deduction for repayment of specified loans; (4) an alternative tax for mutual savings banks conducting life insurance business; (5) definitions of domestic building and loan association and cooperative bank; and (6) credit for interest and interest from qualifying residential mortgage loans.