Pub. L. 91-151, tit. I, sec. 4

Sec. 4. (a) Section 19(a) of the Federal Reserve Act (12 U.S.C. 461) is amended by inserting after the word “interest,” the following: “to determine what types of obligations, whether issued directly by a member bank or indirectly by an affiliate of a member bank or by other means, shall be deemed a deposit,”. (b)(1) The fourth sentence of section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended to read as follows: “The Board of Directors is authorized for the purposes of this subsection to define the terms ‘time deposits’ and ‘savings deposits’, to determine what shall be deemed a payment of interest, and to prescribe such regulations as it may deem necessary to effectuate the purposes of this subsection and to prevent evasions thereof.” (2) Section 18(g) of such Act is further amended by inserting after the fifth sentence the following: “The provisions of this subsection and of regulations issued thereunder shall also apply, in the discretion of the Board of Directors, to obligations other than deposits that are undertaken by insured nonmember banks or their affiliates for the purpose of obtaining funds to be used in the banking business. As used in this subsection the term ‘affiliate’ has the same meaning as when used in section 2 (b) of the Banking Act of 1933, as amended (12 U.S.C. 221a(b)), except that the term ‘member bank’, as used in such section 2 (b), shall he deemed to refer to an insured nonmember bank.” 83 Stat. 375 (c) The first sentence of section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended by inserting “or dividends” after “interest”.