EXEMPTION FROM AFFILIATE TRANSACTION RESTRICTIONS.

SEC. 110. EXEMPTION FROM AFFILIATE TRANSACTION RESTRICTIONS. Section 408 of the National Housing Act (12 U.S.C. 1730a) is amended by inserting after subsection (s) (as added by section 107(a) of this title) the following new subsection: “(t) Exemption.— “(1) In general.— Subject to paragraph (2), but notwithstanding any other provision of law, an insured institution that is a subsidiary of an insured institution or insured institutions the 101 STAT. 580voting stock of which is 80 percent owned by the same company shall not be subject— “(A) to the provisions of subsection (d) of this section as to transactions with such parent insured institution or affiliate insured institutions (and their subsidiaries), or “(B) to the provisions of subsections (f) and (g). “(2) Low quality assets.— An insured institution (or its subsidiary) may not purchase a low quality asset, as such term is defined in section 23A of the Federal Reserve Act, from another insured institution (or its subsidiary) in a transaction exempted by this subsection and any transaction with another insured institution (or its subsidiary) under this subsection shall be on terms and conditions that are consistent with safe and sound financial practices. “(3) Definition.— For purposes of this subsection, an ‘insured institution’ includes an institution that was chartered prior to October 15, 1982, as a savings bank or cooperative bank under State law and that is or becomes a savings and loan holding company or is or becomes a subsidiary of a savings and loan holding company.”.