federal savings and loan insurance corporation secondary reserve adjustment

federal savings and loan insurance corporation secondary reserve adjustment Sec. 115. Paragraph (1) of subsection (d) of section 404 of the National Housing Act, as amended (12 U.S.C. 1727), is amended by inserting “(A)” immediately after “(d)(1)” and by adding at the end thereof the following: “(B)(i) As used in this subparagraph (B), ‘minimum net reduction year’ means a year in which, at the close of December 31, the aggregate of the primary reserve and secondary reserve equals or exceeds 1¼ per centum of the total amount of all accounts of insured members of all insured institutions, and ‘beginning balance’ means, with respect to each insured institution, the amount of such institution’s pro rata share, if any, of the secondary reserve as of the close of December 31, 1973, plus any amount or amounts which, after such close, shall have been transferred to such institution under the last sentence of subsection (e) of this section. “(ii) In May of each year succeeding each of the first ten minimum net reduction years occurring after December 31, 1973, the Corporation shall reduce the amount of each insured institution’s pro rata share, if any, of the secondary reserve as of the preceding December 31 by making to the extent available, a cash refund to each such institution of the difference, if any, between such pro rata share and the applicable percentage of its beginning balance prescribed in the following table: “Minimum net reduction year: Percent of beginning balance 1 98.1818182 2 94.5454546 3 89.0909091 4 81.8181818 5 72.7272727 6 61.8181818 7 49.0909091 8 34.5454546 9 18.1818182 10 0.0000000”.