Loans by savings associations to their executive officers, directors and principal shareholders.
Pursuant to 12 U.S.C. 1463(a) and 1468, a savings association, its subsidiaries and its insiders (as defined) shall be subject to the restrictions contained in the Federal Reserve Board's Regulation O ( 12 CFR part 215 ), in the same manner and to the same extent as if the association were a bank and a member bank of the Federal Reserve System, except that:
(a) Such provisions shall be administered and enforced by the OTS;
(b) References to the term “bank holding company” shall be deemed to refer to “savings and loan holding company”;
(c) References to “report of condition filed under 12 U.S.C. 1817(a)(3) ” shall be deemed to refer to “Thrift Financial Report”;
(d) The term subsidiary includes a savings association that is controlled by a company (including for this purpose an insured depository institution) that is a savings and loan holding company. A company has control over a saving association if it: directly or indirectly, or acting through one or more other persons owns, controls, or has the power to vote 25 percent or more of any class of voting securities; or would be deemed to control the company under § 574.4(a) of this chapter or presumed to control the company under § 574.4(b) of this chapter, and in the latter case, control has not been rebutted. Notwithstanding any other provision of this section, no company shall be deemed to own or control another by virtue of its ownership or control of shares in a fiduciary capacity. When used to refer to a subsidiary of a savings association, the term subsidiary means a “subsidiary” that is controlled by the savings association within the meaning of 12 CFR part 574 of this chapter.
(e) References to the Reserve Bank or the Comptroller shall be deemed to include the Director of OTS; and
(f) References to the term “unimpaired capital and unimpaired surplus” shall be deemed to refer to “unimpaired capital and unimpaired surplus” as defined at § 560.93(b)(11) of this part.