12 USC 1468 - Transactions with affiliates; extensions of credit to executive officers, directors, and principal shareholders

(a) Affiliate transactions 

(1) In general 
Sections 23A and 23B of the Federal Reserve Act [12 U.S.C. 371c and 371c–1] shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act [12 U.S.C. 221 et seq.]), except that
(A) no loan or other extension of credit may be made to any affiliate unless that affiliate is engaged only in activities described in section 1467a (c)(2)(F)(i) of this title; and
(B) no savings association may enter into any transaction described in section 23A(b)(7)(B) of the Federal Reserve Act with any affiliate other than with respect to shares of a subsidiary.

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(2) Sister bank exemption made available to savings associations 

(A) Savings associations controlled by bank holding companies 
Every savings association more than 80 percent of the voting stock of which is owned by a company described in section 1467a (c)(8) of this title shall be treated as a bank for purposes of section 23A (d)(1) and section 23B of the Federal Reserve Act, if every savings association and bank controlled by such company complies with all applicable capital requirements on a fully phased-in basis and without reliance on goodwill.
(B) Savings associations generally 
Effective on and after January 1, 1995, every savings association shall be treated as a bank for purposes of section 23A (d)(1) and section 23B of the Federal Reserve Act.
(3) Affiliates described 
Any company that would be an affiliate (as defined in sections 23A and 23B of the Federal Reserve Act) of any savings association if such savings association were a member bank (as such term is defined in such Act) shall be deemed to be an affiliate of such savings association for purposes of paragraph (1).
(4) Additional restrictions authorized 
The Director may impose such additional restrictions on any transaction between any savings association and any affiliate of such savings association as the Director determines to be necessary to protect the safety and soundness of the savings association.
(b) Extensions of credit to executive officers, directors, and principal shareholders 

(1) In general 
Subsections (g) and (h) of section 22 of the Federal Reserve Act [12 U.S.C. 375a, 375b] shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act).
(2) Additional restrictions authorized 
The Director may impose such additional restrictions on loans or extensions of credit to any director or executive officer of any savings association, or any person who directly or indirectly owns, controls, or has the power to vote more than 10 percent of any class of voting securities of a savings association, as the Director determines to be necessary to protect the safety and soundness of the savings association.
(c) Administrative enforcement 
The Director may take enforcement action with respect to violations of this section pursuant to section 8 or 18(j) of the Federal Deposit Insurance Act [12 U.S.C. 1818 or 1828 (j)], as appropriate.