A bill to strengthen and refine the provisions of the Federal Home Loan Bank Act and the National Housing Act, to protect the rights of State-chartered savings and loan associations to engage in activities and make investments authorized under State law, and to provide for additional funding of the primary reserve of the Federal Savings and Loan Insurance Corporation.

Amends the National Housing Act to authorize State-chartered savings and loan associations to engage in any activity authorized by the State granting such charter, provided that at the end of each fiscal year not more than 40 percent of any association's assets consists of assets that would be impermissible for Federal associations. Directs the Federal Savings and Loan Insurance Corporation to issue regulations to establish standards and procedures for examination of such associations by the appropriate State. Provides that if any State fails to comply with such regulations, then the chartered associations in such State may not engage in activities (other than those already commenced) that are not permitted for Federal associations under the Home Owners' Loan Act of 1933.

Authorizes the Federal Home Loan Bank Board to direct each Federal Home Loan Bank to transfer up to 50 percent of its capital and surplus to the primary reserve of the Corporation.

Authorizes the Corporation to assess additional insurance premiums against those associations: (1) whose investments exceed the limitations imposed on Federal associations; (2) whose net worth does not satisfy the net worth standard established by the Board; and (3) whose ratio of nonperforming assets to total assets exceeds the standards established by the Board. Terminates the authority of the Corporation to assess additional insurance premiums on July 1, 1986. Requires the Corporation to report to Congress by December 31, 1986, on such assessments.