12 CFR 563.80 - Borrowing limitations.
(a) General. Except as the Office otherwise may permit by advice in writing, a savings association may borrow only in accordance with the provisions of this section.
(b) Amount of borrowing. A savings association may borrow up to the amount authorized by the laws under which the savings association operates.
(c) Security. An association may give security for borrowings subject to any requirements imposed by the Office or the FDIC regarding notice of default on borrowings and any FDIC right of first refusal to purchase collateral.
(d) Required statement for all securities evidencing outside borrowings. Each security shall bear on its face, in a prominent place, the following legend:
This security is not a savings account or a deposit and it is not insured by the United States or any agency or fund of the United States.
(1) Unless the savings association meets its capital requirement under part 567 of this chapter, it shall, at least ten business days prior to issuance, file with the Regional Director or his or her designee a notice of intent to issue securities evidencing such borrowings. Such notice shall contain a summary of the items of the security, including:
(2) The OTS shall have 10 business days after receipt of such filing to object to the issuance of such securities. The OTS shall object if the terms or covenants of the proposed issue place unreasonable burdens on, or control over, the operations of the association. If no objection is taken, the savings association shall have 120 calendar days within which to issue such securities.
[54 FR 49552, Nov. 30, 1989, as amended at 55 FR 7300, Mar. 1, 1990; 55 FR 13515, Apr. 11, 1990; 57 FR 14345, Apr. 20, 1992; 57 FR 33438, July 29, 1992]
Title 12 published on 2013-01-01
no entries appear in the Federal Register after this date.